Document:

Corrected Amendment dated effective as of December 18, 2009 to Employment

 Exhibit 10.1.2 
 CORRECTED December 18, 2009 
 AMENDMENT TO
EMPLOYMENT AGREEMENT 
 This Amendment to Employment Agreement (this “Amendment”) amends the Consulting
and Executive Employment Agreement between Cowlitz Bancorporation, Cowlitz Bank, and Richard J. Fitzpatrick dated February 10, 2003 (together, the “Agreement”). This Amendment is effective December 17, 2008. 
  

	1.	Section 5(b) of the Agreement is hereby amended in its entirety to read as follows: 

  

	 	“(b)	Good Reason. For the purposes of this Agreement, ‘Good Reason’ for Executive’s resignation will exist if 

  

	 	(i)	Without the written consent of Executive, any one or more of the following occurs: (A) a material diminution of Executive’s base compensation; (B) a
change of 20 or more miles in, or a change to a location in the State of Oregon as, the principal geographic location at which Executive must perform services for Cowlitz, which Executive and Cowlitz agree is a material breach of this Agreement;
(C) a material diminution in the Executive’s authority, duties or responsibilities; (D) a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is required to report, including a
requirement that Executive report to a corporate officer or employee instead of reporting directly to the Board of Directors; (E) a material diminution in the budget over which the Executive retains authority; or (F) any other action or
inaction by Cowlitz that constitutes a material breach of this Agreement; 

  

	 	(ii)	Executive provides notice to Cowlitz of the existence of the condition within 90 days of the initial existence of the condition; 

  

	 	(iii)	Cowlitz has 30 days following receipt of such notice to remedy the condition and fails to do so; and 

  

	 	(iv)	Executive resigns within twelve months of such event occurring.” 

  

	2.	Section 5(c) of the Agreement is hereby amended in its entirety to read as follows: 

  

	 	“(c)	Disability. For the purposes of this Agreement, ‘Disability’ means (i) Executive is unable to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (ii) Executive is, by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident
and health plan covering Cowlitz employees. For so long as Executive receives short-term disability benefits, Cowlitz shall be relieved of its obligation to pay any cash compensation provided in Section 3(a) and (c) of this Agreement for
so long as such disability benefits are being paid to Executive.” 

  

	3.	Section 5(d) of the Agreement is hereby amended in its entirety to read as follows: 

  

	 	“(d)	 Change in Control. For purposes of this Agreement, a ‘Change in Control’ shall be deemed to have occurred on the date that a
“change in the ownership,” “a change in the

  

 1 

	 	 
effective control,” or “a change in the ownership of a substantial portion of the assets” (as those terms are defined in Section 1.409A-3(i)(5) of the Treasury Regulations
promulgated under the Internal Revenue Code of 1986, as amended) of Cowlitz occurs and includes: 

  

	 	(i)	the date on which any one person, or more than one person acting as a group (as set forth in Section 1.409A-3(i)(5) of the Treasury Regulations), acquires
ownership of stock of Cowlitz that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of Cowlitz; 

  

	 	(ii)	the date on which Cowlitz merges or consolidates with another entity and as a result less than 50% of the total fair market value or total voting power of the stock of
the resulting entity immediately after the merger or consolidation is held by any one person, or more than one person acting as a group, who were the holders of Cowlitz’s voting securities immediately before the merger or consolidation;

  

	 	(iii)	the date on which any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) ownership of stock of Cowlitz possessing 30% or more of the total voting power of the stock of Cowlitz; 

  

	 	(iv)	the date on which a majority of members of Cowlitz’ Board of Directors is replaced during any 12-month period by directors whose appointment or election is not
endorsed by a majority of the members of Cowlitz’s board of directors before the date of the appointment or election; or 

  

	 	(v)	the date on which any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) assets from Cowlitz that have a total gross fair market value (the value of the assets of Cowlitz, or the value of the assets being disposed of, determined without regard to any liabilities associated with such
assets) equal to or more than 40% of the total gross fair market value of all of the assets of Cowlitz immediately before such acquisition or acquisitions.” 

  

	4.	Section 7(a) of the Agreement is hereby amended in its entirety to read as follows: 

 “(a) Notwithstanding anything to the contrary in Section 6, if Executive terminates employment due to a Change in
Control within thirty days of the Change in Control, or if there is a Termination Without Cause or Termination For Good Reason within twenty-four months following a Change in Control, the Executive shall be entitled to receive, in a lump sum on the
date of Termination: (W) three times the Executive’s highest annual Base Salary; plus (X) three times the Executive’s highest annual performance bonus under Section 3(c); plus (Y) three times
the value of the contributions that Cowlitz would have made to or for the credit of Executive’s account if the amounts referred to in (W) and (X) had been received by Executive on a basis that made them eligible for a Cowlitz
contribution to a Cowlitz-sponsored retirement plan (for purposes of making this calculation all such contributions shall be considered to have been fully-vested when made); plus (Z) three times the value of the annual Cowlitz
contributions being made to any employee welfare benefit plans, whether qualified or non-qualified, in which the

  

 2 

 
Executive participated at the time of the Change in Control (including without limitation, plans for hospitalization, medical care, major medical, dental, disability, survivor benefits, and life
insurance). An example of the calculation of Executive’s benefits is set forth as Addendum A to this Agreement.” 
  

	5.	Section 17 of the Agreement is hereby amended in its entirety to read as follows: 

 “17. Attorneys’ Fees; Indemnification; Damages. Cowlitz shall indemnify, hold harmless
and defend Executive against (i) any tax penalties or increased tax liability of Executive due to Cowlitz’s failure to comply with the terms of this Agreement or breach of this Agreement, and (ii) costs, including legal fees and
expenses, incurred by Executive in connection with or arising out of any action, suit or proceeding (including any tax controversy) in which Executive may be involved, as a result of Executive’s efforts, in good faith, to defend or enforce the
terms of this Agreement. For purposes of this Agreement, any settlement agreement that provides for payment of any amounts in settlement of Cowlitz’s obligations hereunder shall be conclusive evidence of Executive’s entitlement to
indemnification hereunder, and any such indemnification payments shall be in addition to amounts payable pursuant to such settlement agreement, unless such settlement agreement expressly provides otherwise. Cowlitz’s obligation to make the
payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which Cowlitz may have against Executive or others. In
no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not
Executive obtains other employment. Unless it is determined that Executive has acted in bad faith, Cowlitz shall pay as incurred, to the full extent permitted by law, all legal fees and expenses that Executive may reasonably incur as a result of or
in connection with his consultation with legal counsel or arising out of any action, suit, proceeding, tax controversy or contest (regardless of the outcome thereof) by Cowlitz, Executive or others regarding the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by Executive about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed
payment (except a six-month delay required under Section 22 of this Agreement, which shall bear interest as set forth therein), all payments due and outstanding shall bear interest at the rate of 1 1/2% per month until such payment is made. 
  

	6.	Section 20 of the Agreement is hereby amended in its entirety to read as follows: 

 “20. Regulatory Matters. Notwithstanding any other provision in this Agreement, Executive shall not be entitled
to any benefit provided for herein to the extent that the payment of such benefit would be prohibited or restricted by (i) the applicable provisions of the Emergency Economic Stabilization Act of 2008, if any, and its implementing regulations
and guidelines, (ii) the provisions of Part 359 of the regulations of the Federal Deposit Insurance Corporation, as they may be amended from time to time, or (iii) any other applicable statute or regulation. If any such payment is so
prohibited or restricted, Cowlitz and its successors and assigns shall use its best efforts to secure the consent of the appropriate regulatory agencies to make such payment in the highest amount permissible, up to the amount provided for in this
Agreement. Upon removal of any prohibition or restriction on payment of benefits, Cowlitz or its successor or assign shall immediately pay all amounts due to Executive pursuant to this Agreement together with interest on the amounts owed accrued at
the rate of Prime plus 2% per annum.” 
  

 3 

	7.	The following is added to the Agreement as Section 22: 

 “22. 409A. 
 22.1 For purposes of this Agreement, the
term termination or resignation means a termination of employment that meets the definition of “separation of service” as defined in Section 409A of the Internal Revenue Code and regulations promulgated thereunder. 
 22.2 Notwithstanding any provision of this Agreement to the contrary, if, at the time of Executive’s “separation of
service” with Cowlitz, he or she is a “specified employee” and one or more of the payments or benefits received or to be received by Executive pursuant to this Agreement would constitute an item of “deferred compensation”
subject to Section 409A of the Internal Revenue Code and regulations promulgated thereunder, no such payment or benefit will be provided under this Agreement until the earlier of: (a) the date that is six (6) months following
Executive’s termination of employment with Cowlitz or (b) the Executive’s death, unless the payment or distribution is exempt from the application of Section 409A. The terms “separation of service,” “specified
employee,” and “deferred compensation” have the meanings set forth in Section 409A of the Internal Revenue Code and regulations promulgated thereunder. In the event any of Executive’s benefits that are paid in installments
under this Agreement are subject to the six-month delay set forth in this Section 22, the first installment payment shall be made on the first business day of the seventh month following termination of employment and shall equal the aggregate
installment payments Executive would have received during the first six months plus the payment Executive is otherwise entitled to receive for the seventh month plus interest for the period of any such delay calculated using the six
month Treasury bill rate in effect on the date on which the payment is delayed pursuant to this Section and compounded daily. If the conditions of the severance exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) (or any successor
Regulation thereto) are satisfied, payment of benefits shall not be delayed for six (6) months following termination of employment to the extent permitted under the severance exception.” 
  

	8.	Except as specifically set forth herein, the Agreement as previously executed shall continue in full force and effect as written. The parties acknowledge that the
intent of this Amendment is to amend the Agreement to comply, to the extent required, with certain provisions of Internal Revenue Code Section 409A and regulations promulgated thereunder and to add the provisions set forth herein; provided,
however, the parties do not intend to amend the calculation of the benefits provided in the Agreement. 

  

	9.	Addendum A to this Amendment is hereby added as Addendum A to the Agreement. 

 [SIGNATURES ON THE FOLLOWING PAGE] 
  

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 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the
effective date stated above. 
  

							
	EMPLOYEE	 		 	COWLITZ BANCORPORATION
				
	 /s/ Richard J. Fitzpatrick
	 		 	By:	 	 /s/ Linda Tubbs

	Richard J. Fitzpatrick	 		 		 	Linda Tubbs, Director
		 		 		 	Chair of Compensation Committee
			
		 		 	 COWLITZ BANK

				
		 		 	 By:
	 	 /s/ Linda Tubbs

		 		 		 	Linda Tubbs, Director
		 		 		 	Chair of Compensation Committee

  

 5 

 ADDENDUM A 
 Example of Change in Control Payment 
 If a change in control had been
announced or occurred prior to December 31, 2007 and termination occurred as of December 31, 2007 Executive would have received the following, subject to 280G cutback, if any, in the form of a lump sum payment: 
 3 * $272,318 (highest annual base salary (2007)) = $816,954 
 3 * $155,610 (highest annual performance bonus (2006)) = $466,830 
 3 * $57,893 (deemed value of certain contributions to retirement plan) = $173,679 
 3 * $26,608.33 (value of annual welfare benefit plan contributions) = $79,825 
 Total = $1,537,288 
  

 6Commitment Letter between NGP Capital Resources Company and GeoMet, Inc.

 EXHIBIT 10.21 
 March 10, 2010 
 GeoMet, Inc. 
 909 Fannin 
 Suite 1850 
 Houston, TX 77002 
 Attention: J. Darby Sere 
 CONFIDENTIAL 
 Subject:
$20,000,000 Backstop Commitment to Purchase Convertible Preferred Stock (“Series A Preferred Stock”) 
 Gentlemen: 
 We are pleased to inform you that NGP Capital Resources Company (“NGPC”) has approved a backstop commitment (the “Backstop
Commitment”) to purchase up to $20,000,000 of Preferred Stock of GeoMet, Inc., a Delaware corporation (“GeoMet” or the “Issuer”) in the event that GeoMet’s proposed rights offering of Preferred Stock to its current
stockholders (the “Rights Offering”) is not fully subscribed by such stockholders. The Backstop Commitment is more specifically described in the Summary of Terms and Conditions dated as of March 10, 2010 attached hereto and
incorporated herein by this reference (the “Term Sheet”). The Backstop Commitment is subject to the terms and conditions specified in this letter, the Term Sheet and the Confidential Payment Letter referred to below, and is subject to the
execution of the final documentation. 
 Prior to NGPC becoming obligated to purchase any shares of Preferred Stock pursuant to
the Backstop Commitment in the event the Rights Offering is not fully subscribed by GeoMet’s existing stockholders, the Issuer shall execute, or cause to be executed, and shall deliver to NGPC, a backstop agreement (the “Backstop
Agreement”) and all agreements and other documents and instruments deemed appropriate by NGPC to evidence the Backstop Commitment and all terms and conditions described in this commitment letter. All such agreements, instruments, and other
documents shall be in form and substance satisfactory to NGPC. 
 In addition to the conditions to the Backstop Commitment or
closing set forth in the Term Sheet, the Confidential Payment Letter between the Issuer and NGPC dated March 10, 2010 (the “Confidential Payment Letter”) and final documentation, the Backstop Commitment is subject to (i) the
satisfactory completion of NGPC’s due diligence with respect to the oil and gas assets owned, leased and/or to be acquired by GeoMet (collectively, the “Assets”), including but not limited to a satisfactory review of title
documentation pertaining to the Assets and the underlying data supporting those reports and documents, as well as a satisfactory business and legal review of the other assets and liabilities, businesses and operations, proposed organization and
legal structure, and tax, labor, environmental, financial, ERISA, litigation, significant contracts, including, but not limited to, marketing contracts, contract operating agreements, oil and gas leases, transportation arrangements and other matters
relating thereto, (ii) no change, occurrence or development shall have occurred or become known to us since the date hereof that could reasonably be expected to have a material adverse effect on the business, condition (financial or otherwise),
operations, performance, assets or prospects of the Issuer or the Assets; (iii) the absence of any material adverse conditions in the financial, banking, loan syndication or capital markets, (iv) execution and delivery of an extension of
the Issuer’s senior debt facility on terms that are acceptable to NGPC; and (v) the payment in full of all payments, expenses and other amounts payable to us under this commitment letter and the Confidential Payment Letter. 
 Whether or not the transactions contemplated hereby are consummated, the Issuer hereby agrees to indemnify and hold harmless NGPC and its
affiliates and their respective directors, officers, employees, agents and attorneys (each, an “indemnified person”) from and against any and all losses, claims, damages, liabilities (or actions or other proceedings commenced or threatened
in respect thereof) and expenses, including, without limitation, any loss, claim, damage or liability alleged by the Issuer or any of its owners or affiliates, that arise

 
out of, result from or in any way relate to this commitment letter, the Confidential Payment Letter, or the provision of the Backstop Agreement, and to reimburse each indemnified person, upon its
demand for all reasonable legal or other expenses (including but not limited to the reasonable fees and expenses of outside counsel) incurred in connection with investigating, defending or participating in any such loss, claim, damage, liability or
action or other proceeding (whether or not such indemnified person is a party to any action or proceeding out of which any such expenses arise), in all cases, whether or not caused or arising, in whole or in part, out of the comparative,
contributory or sole negligence of any indemnified person, other than any of the foregoing claimed by any indemnified person to the extent incurred by reason of the gross negligence or willful misconduct of such person. NGPC shall not be responsible
or liable to the Issuer or any other person for any consequential, indirect, special or punitive damages which may be alleged. The obligations contained in this paragraph will survive the closing of the Backstop Agreement or the expiration of this
commitment letter. 
 Whether or not any of the Backstop Agreement or any similar agreement with the Issuer is executed, the
Issuer shall pay and reimburse NGPC, immediately upon demand, for all reasonable costs and out-of-pocket expenses (including but not limited to the reasonable fees and expenses of outside counsel) expended or incurred by NGPC in connection with the
negotiation, preparation, administration (including waivers and amendments), and enforcement of this commitment letter, the Confidential Payment Letter, the Backstop Agreement and the purchase documents contemplated hereby. At NGPC’s option,
the Issuer shall pay such fees directly to the attorneys or other professionals as directed by NGPC, and shall report such payment(s) to the payees as required by section 6045 of the Internal Revenue Code of 1986, as amended. 
 Your acknowledgment and acceptance of this commitment letter and the Confidential Payment Letter will constitute acceptance of the terms and
conditions set forth herein and therein. The terms of the Confidential Payment Letter are an integral part of our Backstop Commitment hereunder, and constitute part of this commitment letter for all purposes. Each of the amounts described in the
Confidential Payment Letter shall be non-refundable when paid, shall be due and payable in U.S. dollars in Houston, Texas and, in the case of the amounts payable at Closing, at our discretion, shall be deducted from the purchase price payable by
NGPC for shares of Preferred Stock. Unless you accept this commitment letter or it is otherwise terminated by NGPC prior to NGPC’s receipt of your acceptance, this commitment letter will expire on March 31, 2010, at 5:00 p.m. CDT. If you
accept this commitment letter, it will remain effective until the closing of the transactions contemplated hereby, whereupon it will expire, but in no event will this commitment letter be effective later than May 12, 2010; unless NGPC agrees
otherwise, NGPC shall have no further obligation under this commitment letter after that date. 
 You represent and warrant that
(i) all information that has been or will hereafter be made available to us by you or any of your representatives in connection with the transactions contemplated hereby is and will be complete and correct in all material respects and does not
and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not misleading in light of the circumstances under which such statements were or are made, and
(ii) all financial projections, if any, that have been or will be prepared by you and made available to us have been or will be prepared in good faith based upon reasonable assumptions. You agree to supplement such information and projections
from time to time so that the representations and warranties contained in this paragraph remain correct. 
 In issuing this
commitment letter, we are relying on the accuracy of the information furnished to us by you or your affiliates or otherwise on your or their behalf, without independent verification thereof. 
 The Backstop Commitment is personal to the Issuer, and may not be transferred or assigned without the prior written consent of NGPC. No
third party beneficiaries are intended in connection with this commitment letter. You may not disclose or exhibit any portion of this commitment letter to any person or entity (other than the Issuer’s counsel, employees, agents, and
representatives) without prior written consent of NGPC; no such consent shall create any third-party beneficiary as to the Backstop Commitment. 

 The Backstop Commitment may be satisfied by the execution and delivery of the Backstop
Agreement by NGPC or, in the alternative, by one of its affiliates, as NGPC may determine in its discretion. If such other affiliate or subsidiary elects to assume the obligations of NGPC hereunder, it shall, upon execution and delivery of such
final loan documentation, be deemed to replace NGPC for purposes of this commitment letter (and NGPC shall be released thereby) and shall be entitled to all rights and privileges accorded NGPC herein and therein. 
 This commitment letter is not meant to be, nor shall it be, construed as an attempt to define all of the terms and conditions of the
Backstop Agreement described herein. Rather, it is intended only to outline certain basic points of understanding around which the legal documentation is to be structured. Further negotiations will not be precluded by the issuance of this commitment
letter and its acceptance by the Issuer. 
 You hereby irrevocably (i) submit to the nonexclusive jurisdiction of any Texas
state or federal court sitting in Harris County, Texas, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this commitment letter, (ii) agree that all claims in respect of such action or
proceeding may be heard and determined in such Texas state court or in such federal court, (iii) waive, to the fullest extent you may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding,
(iv) irrevocably consent to the service of any and all process in any such action or proceeding by the mailing of copies of such process to you at your address specified above or in any other manner permitted by law and (v) agree that a
final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
 This commitment letter may not be amended or modified except in writing signed by both parties hereto. You may not assign or delegate any of
your rights or obligations hereunder without our written consent. 
 This commitment letter shall be governed by, and construed
in accordance with, the laws of the State of New York. Except as otherwise specifically set forth herein, this commitment letter sets forth the entire agreement between the parties with respect to the matters addressed herein and supercedes all
prior communications, written or oral between you and us. This commitment letter may be executed in any number of counterparts, each of which, when so executed, shall be deemed to be an original and all of which, when taken together, shall
constitute one and the same commitment letter. Delivery of an executed counterpart of a signature page to this commitment letter by telecopier shall be as effective as delivery of a manually executed counterpart of this commitment letter. Your
obligations under the paragraphs relating to payments, indemnification, costs and expenses, confidentiality and jurisdiction shall survive the expiration or termination of this commitment letter. 
 You and we irrevocably waive all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to this commitment letter or the transactions contemplated hereby or the actions of any of us in the negotiation, administration, performance or enforcement hereof. 
 THIS WRITTEN AGREEMENT (WHICH INCLUDES THE TERM SHEET) AND THE CONFIDENTIAL PAYMENT LETTER REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 

 Please indicate your acceptance of the provisions hereof by signing the enclosed copy of
this commitment letter and the Confidential Payment Letter and returning them to Hans Hubbard, NGP Capital Resources Company, 1221 McKinney, Suite 2975, Houston, Texas 77010 (telecopier: (713-752-0063) at or before 5:00 p.m. CDT on March 31,
2010, the time at which the Backstop Commitment (if not so accepted prior thereto) will expire. If you elect to deliver this commitment letter by telecopier, please arrange for the executed original to follow by next-day courier. 
  

			
	Sincerely,
	
	NGP CAPITAL RESOURCES COMPANY
		
	By:	 	/s/ R. Kelly Plato
	Name: 	 	R. Kelly Plato
	Title:	 	Senior Vice President

  

			
	 Accepted and agreed this 29th day of
March 2010.
  
 ISSUER:
 GeoMet, Inc.

		
	By:	 	/s/ J. Darby Seré
	Name:	 	J. Darby Seré
	Title:	 	Chief Executive Officer

 Convertible Redeemable Preferred Stock Summary of Indicative Terms 
 THESE PROPOSED TERMS AND CONDITIONS ARE PROVIDED FOR DISCUSSION PURPOSES ONLY AND DO NOT CONSTITUTE AN OFFER, AGREEMENT, COMMITMENT TO
PURCHASE, OR COMMITMENT TO SEEK INVESTMENT APPROVAL. THE ACTUAL TERMS AND CONDITIONS UPON WHICH NGP CAPITAL RESOURCES COMPANY OR ITS AFFILIATE MIGHT OFFER FINANCING TO THE ISSUER ARE SUBJECT TO SATISFACTORY COMPLETION OF DUE DILIGENCE, MANAGEMENT
APPROVAL, SATISFACTORY REVIEW OF DOCUMENTATION AND SUCH OTHER TERMS AND CONDITIONS AS ARE DETERMINED BY NGP CAPITAL RESOURCES COMPANY. 
  

	 Issuer: 
	GeoMet, Inc., a Delaware Corporation (the “Issuer” or the “Company”). 

  

	 Investors: 
	NGP Capital Resources Company (“NGPC”), and other institutional and/or private Investors (together with NGPC, the “Investors” and individually an “Investor”).

  

	 Type of Security: 
	Shares of Convertible Redeemable Preferred Stock (“Preferred Shares”). Amount of shares issued will be based on Offering Price and subject to anti-dilution and other customary
protections. 

  

	 Amount and Purpose: 
	$40,000,000 (“Funding Amount”) to be used to repay a portion of the Company’s senior secured credit facility. 

  

	 NGPC Backstop Commitment: 
	NGPC agrees to provide a backstop commitment (“Commitment”) under which NGPC agrees to purchase up to $20,000,000 of Preferred Shares, subject to the rate of subscription of the rights
offering for which this Commitment is being executed (the “Rights Offering”). 

  

	 Offering Price: 
	The offering price will be $10 per Preferred Share (“Offering Price”). Neither the Investors nor their affiliates have engaged and the Investors agree not to engage in any short sales
of the Issuer’s common stock (“Common Stock”) on or after November 17, 2009, until such time as the Preferred Shares are converted into Common Stock or are redeemed as provided below. 

  

	 Conversion Price: 
	The Conversion Price will be $1.30 per share. The initial Conversion Price will be subject to adjustment as provided below. 

  

	 Conversion: 
	 The Preferred Shares shall be convertible at any time after the closing date of the Rights Offering (the “Closing Date”), in whole or in part, at the option of the Investors. The
Preferred Shares shall convert into Common Stock, at the Conversion Price, based upon 100% of the Accrued Value (the Funding Amount, plus PIK Preferred Shares at the Offering Price, plus accrued but unpaid Dividends). The Conversion Price and
resulting number of common shares issued upon conversion of Preferred Shares shall be adjusted to reflect stock splits and similar events and will be entitled to full anti-dilution adjustments for any dividends paid on common stock in cash or in
common stock, the issuance of additional equity securities at a price less than the Conversion Price (including rights and options but excluding any shares, rights or options issued pursuant to the Company’s 2006 Long Term Incentive Plan or any
similar long term incentive plan subsequently approved by the Company’s stockholders) on a “weighted

	 	 
average basis”, and the occurrence of material corporate transactions at a per share valuation less than the Conversion Price. 

  

	 Optional Early Conversion: 
	The Issuer shall have the right, at any time after five years from the Closing Date but no sooner than 90 days after a previous Forced Conversion Notice to convert into Common Stock at the
Conversion Price the number of Preferred Shares to be converted as specified in the Forced Conversion Notice and subject to the limitations as set forth herein; provided that in order for the Issuer to exercise such option on the Forced
Conversion Notice Date, (i) the VWAP of the Common Stock must be greater than 225% of the Conversion Price, for 20 out of the trailing 30 trading days ending on the last trading day prior to a Forced Conversion Notice (the
“Reference Period”). The maximum number of shares of Common Stock to be issued to the holders of the Preferred Shares subject to Optional Early Conversion in connection with any Forced Conversion Notice Date will be equal to, either
(i) in the case that the VWAP of the Common Stock is greater than 225% but less than 250% of the Conversion Price during the Reference Period, the greater of 1.5 million shares of Common Stock, as adjusted for any Common Stock splits,
Common Stock dividends on Common Stock or a similar event subsequent to the Closing Date, or 10 times the average daily trading volume (“ADTV”) of the Common Stock during the Reference Period, or (ii) in the case that the VWAP of the
Common Shares is greater than or equal to 250% of the Conversion Price during the Reference Period, the greater of 3.0 million shares of Common Stock, as adjusted for any Common Stock splits, Common Stock dividends on Common Stock or similar
event subsequent to the Closing Date, or 10 times the ADTV of the Common Stock during the Reference Period. 

  

	 Forced Conversion Notice Date: 
	To convert the Preferred Shares into shares of Common Stock pursuant to the Optional Early Conversion, the Issuer shall give written notice (a “Forced Conversion Notice”, and the date
of such notice, a “Forced Conversion Notice Date”) to each holder of Preferred Shares stating that the Issuer elects to force conversion of such Preferred Shares pursuant to the Optional Early Conversion and shall state therein
(i) the number of Preferred Shares to be converted, (ii) the VWAP of the Common Stock during the Reference Period, and (iii) the Issuer’s computation of the number of shares of Common Stock to be received by the holder upon the
Conversion Date. 

  

	 Dividends: 
	Dividends will be paid quarterly on the Preferred Shares (and any PIK Preferred Shares, hereinafter defined), which in the Company’s sole discretion and in any combination hereof, may be
paid either in the form of cash, in which case the applicable annual rate will be equal to 9.6%, or, until the fifth anniversary of the Closing Date, in additional Preferred Shares (“PIK Preferred Shares”) in which case the applicable
annual rate will be equal to 12.5%. All dividends will be cumulative and all unpaid dividends will compound on a quarterly basis at the 12.5% rate. 

  

	 Redemption: 
	 If not converted, the Preferred Shares (including any PIK Preferred Shares) will be redeemable upon a Liquidation Event. In the absence of a Liquidation Event, if not converted, the
Preferred Shares

	 	 
(including any PIK Preferred Shares) will be redeemable, at the option of the Investors, in whole or in part, on or after eight (8) years from the Closing Date, upon 30 days prior written
notice to the Company by any holder of the Preferred Shares electing to redeem. 

  

	 Redemption Price: 
	Upon any redemption of Preferred Shares by the Company, as of the effective date of the redemption, the Company will pay to each holder of Preferred Shares, including holders of PIK Preferred
Shares, the Offering Price per Preferred Share held plus any accrued but unpaid dividends. 

  

	 Backstop Agreement: 
	Investors will be entitled to customary investor rights including, but not limited to, piggyback rights, tag along rights among the Investors party to the backstop agreement, anti-dilution
provisions and covenants pursuant to a satisfactory backstop agreement (“Backstop Agreement”). 

  

	 Preemptive Rights: 
	NGPC will have the right to participate (“Right of Participation”) in all future public and private debt securities (excluding bank debt) or preferred equity securities issued by the
Company after the Closing Date in an amount not to exceed $15 million. 

  

	 Liquidation Preference: 
	Upon the occurrence of any of the events that customarily would entitle the holders of preferred stock to a liquidation preference (each such event, a “Liquidation Event”), then
holders of Preferred Shares will be entitled to receive, prior and in preference to any payment, or segregation for payment, of any consideration to any holder of any equity security of the Company, an amount equal to the greater of (i) the
Funding Amount, plus the PIK Preferred Shares at the Offering Price, plus any accrued but unpaid Dividends and (ii) a per share amount equal to any liquidation distribution payable with respect to shares of common stock. The Preferred Shares
will also rank senior to all other preferred stock and other equity securities with respect to liquidation preference and payment of dividends. Furthermore, the holders of the Preferred Shares will vote as a class to approve the sale or the merger
of the Company or the sale of substantially all of the Company’s assets and the approval of such transaction will require the consent of at least 66 2/3% of the holders. 

  

	 Board Rights: 
	NGPC shall be entitled to appoint one member to Issuer’s Board of Directors for so long as NGPC holds Preferred Shares with an aggregate Offering Price of that is greater than 30% of the
aggregate Offering Price of the Preferred Shares originally purchased, which shall be comprised of not more than nine members. For so long as NGPC is entitled to appoint such director, approval by a seventy percent (70%) supermajority of the
Board shall be required for adoption and approval of Issuer’s annual operating budget, including the annual capital expenditure and general and administrative budgets. 

  

	 Special Voting Rights Upon Default: 
	 If NGPC has declared an event of default under the Backstop Agreement or any other material default under the terms of the governing documents for the Preferred Shares occurs, the
Issuer’s Board of Directors will be expanded such that NGPC and any other party to the Backstop Agreement would be entitled to appoint such number of additional directors as necessary to constitute a majority of

	 	 
the Board of Directors. This result may also be accomplished by the Issuer securing the resignations of a sufficient number of existing directors. Once the default(s) are cured or waived (in the
case of default under the Backstop Agreement), the board representation will be reduced to pre-default levels. In the event the default continues for more than 12 months without being cured and the parties to the Backstop Agreement have not agreed,
in their sole discretion, to a waiver of such default, the parties to the Backstop Agreement will have the right, acting independently, to require the Company to purchase all their outstanding Preferred Shares at the Offering Price. Furthermore, if
for any reason, the Issuer is not able to effectuate the expansion of the board and appointment of directors contemplated, then the holders of the Preferred Shares who are parties to the Backstop Agreement shall have the right to require that the
Issuer immediately redeem such Preferred Shares at the Redemption Price specified above. 

  

	 Covenants: 
	The Backstop Agreement shall contain covenants including a debt incurrence test for the one year period subsequent to Closing Date, maximum leverage (Debt/EBITDA) to be less restrictive than
such test included in the extended senior debt facility, restricted payments test, an outstanding preferred plus debt to EBITDA test, a maximum G&A covenant and a covenant requiring the Company to reduce its outstanding indebtedness by $5
million per year while the Preferred is outstanding unless waived by the parties to the Backstop Agreement. There shall be no default if the specific action which caused the default was unanimously approved by the Company’s Board of Directors.

 The Backstop Agreement will also require the approval of the parties to the Backstop Agreement, for so long as
any one of them holds Preferred Shares with an aggregate Offering Price that is greater than 30% of the aggregate Offering Price of the Preferred Shares originally purchased, prior to the Company undertaking certain material actions, including the
following: 
  

	 	•	 	 incurrence of material debt; 

  

	 	•	 	 issuance of equity securities senior or pari passu to Preferred Shares, 

  

	 	•	 	 redemption or repurchases of equity securities, 

  

	 	•	 	 material acquisitions, or other fundamental change transactions, 

  

	 	•	 	 entering into any material transaction with a related party, 

  

	 	•	 	 incurring any exploration expenses until the earlier of 8 years following the Closing Date or the time at which the parties to the Backstop Agreement
no longer is a holder of greater than 30% of the aggregate Offering Price of the Preferred Shares originally purchased; 

  

	 	•	 	 any alteration or change in the rights, preferences or privileges of the Preferred Stock on increase or decrease in the authorized number of shares of
Preferred Stock, 

  

	 	•	 	 any amendment or waiver of any provision of the Issuer’s articles of incorporation or bylaws that adversely affects the rights of the Preferred
Stock, or 

	 	•	 	 any material change in the nature of the Issuer’s business from a company engaged in the exploration, exploitation, development and production of
oil and natural gas and related activities. 

  

	 Conditions Precedent: 
	 •
	 	 Completion of satisfactory title and environmental due diligence; 

  

	 	•	 	 Execution and delivery of an extension of the Company’s senior debt facility on terms that are acceptable to NGPC 

  

	 	•	 	 Confirmation of the absence of any material adverse change in the Company and its prospects; 

  

	 	•	 	 Completion of satisfactory documentation pursuant to the Backstop Agreement containing customary representations, warranties, conditions, covenants,
and indemnities; and 

  

	 	•	 	 Adoption of a G&A budget by the Company that has been approved by the parties to the Backstop Agreement, and the implementation of any G&A
reductions required by such G&A budget. 

  

	 Risk Management 
	Issuer shall enter into a mutually acceptable commodity price risk management program (which program may include the execution of fixed price swaps), with a counterparty acceptable to NGPC,
covering 65% of projected PDP volumes for 3 years. 

  

	 Fees and Expenses: 
	There will be an Initial Payment in the amount of $250,000 payable upon acceptance of a binding Financial Commitment Letter. In addition, the Company will pay a Backstop Fee equal to $600,000 to
NGPC on the Closing Date. The Initial Payment will be credited against the Backstop Fee due to NGPC at Closing. These fees are non-refundable. In the event that NGPC does not purchase a minimum of $15,000,000 of Preferred Shares, the Company
will pay NGPC an Additional Backstop Fee of 3% of the difference between $15,000,000 and the aggregate Offering Price of Preferred Shares actually purchased. The Company will in all events reimburse NGPC for all expenses incurred in connection with
this transaction. Further, whether or not NGPC makes an investment in the Company, the fees and expenses of NGPC’s counsel, including preparation of documentation and due diligence associated with a potential investment in the Company by NGPC,
will be paid by the Company. NGPC’s counsel will draft the Backstop Agreement and the terms of Preferred Shares in addition to performing all legal due diligence and reviewing other documentation associated with any potential investment in the
Company by NGPC. Subsequent to the Closing Date, any fees and expenses (including fees and expenses of counsel) incurred in connection with any amendments to the documentation and the enforcement or rights thereunder will be paid by the Company.

  

	 Confidentiality: 
	This Summary of Indicative Terms (this “Summary”) is not a commitment by NGPC to provide or arrange a financing and shall not be disclosed to any person or persons other than
Management or its advisors. 

  

	 Governing Law: 
	The transaction contemplated herein will be governed by the laws of the state of New York and the parties hereto agree that proper venue would be in Harris County, Texas. Jury trial to be waived
by all parties. 

 March 10, 2010 
 GeoMet, Inc. 
 909 Fannin 
 Suite 1850 
 Houston, TX 77002 
 Attention: J. Darby Sere 
 CONFIDENTIAL 
 Subject: $20,000,000 Backstop Commitment to Purchase Convertible Preferred Stock (“Preferred Stock”) 
 Gentlemen: 
 This letter is the
Confidential Payment Letter referred to in the commitment letter from NGP Capital Resources Company (“NGPC”) to GeoMet, Inc., a Delaware corporation (“GeoMet” or the “Issuer”) dated March 10,
2010 (the “Commitment Letter”), setting forth NGPC’s commitment, subject to the terms and conditions contained therein, to provide a backstop commitment (the “Backstop Commitment”) to purchase up to $20,000,000
of Preferred Stock of GeoMet in the event that GeoMet’s proposed rights offering of Preferred Stock to its current stockholders (the “Rights Offering”) is not fully subscribed by such stockholders. If not otherwise expressly
defined herein, terms in this Confidential Payment Letter shall have the meanings defined in the Commitment Letter. 
 As an
inducement to NGPC to enter into the Commitment Letter, and as a condition precedent to the effectiveness thereof, the Issuer agrees to pay to NGPC the following: 
  

	 	1.	an amount equal to $250,000, payable upon acceptance of the commitment letter (to be credited against the amounts payable under section 2 below);

  

	 	2.	a Backstop Fee in an amount equal to $600,000, payable at the Closing; 

  

	 	3.	if NGPC does not purchase a minimum of $15,000,000 of Preferred Stock in the Rights Offering pursuant to its Backstop Commitment, an Additional Backstop Fee in an
amount equal to 3% of the difference between $15,000,000 and the aggregate purchase price of Preferred Stock actually purchase by NGPC, payable at the Closing; 

  

	 	4.	all attorneys’ fees, engineering fees, consultants’ fees, other professional fees and out of pocket costs associated with the negotiation and documentation of
the Backstop Commitment and the Backstop Agreement incurred by NGPC, payable at the Closing, to the extent then invoiced, and thereafter as invoiced. 

 The Issuer shall also pay the fees and expenses set forth in the Commitment Letter, without set-off, deduction, recoupment or counterclaim and free and clear of any and all taxes. The amount referred to
in section 1 above shall be paid to NGPC in immediately available funds to an account to be specified by NGPC to you in writing. Such amounts shall be in addition to, and shall not be credited against, any and all other fees and expenses that may be
described in any documentation relating to the Backstop Commitment or the Backstop Agreement (except that the amount payable under section 1 above shall be credited against the amount payable under section 2). Except as expressly set forth above,
the amounts paid under this Confidential Payment Letter shall not be refundable under any circumstances. 
 This Confidential
Payment Letter may not be amended or any provision hereof waived or modified except by an instrument in writing signed by NGPC and the Issuer. 
 The terms of this Confidential Payment Letter shall be governed by the internal laws of the State of New York. This Confidential Payment Letter may be signed in one or more counterparts and shall
not be deemed

 GeoMet, Inc. 
 March 10, 2010 
 Page 2 
  
 
to be superseded by any other letter or documentation, including any ultimate loan documentation for the Backstop Commitment, unless such other letter or documentation is executed by NGPC and the
Issuer, expressly makes reference to this Confidential Payment Letter and states that this Confidential Payment Letter is superseded thereby. 
 If you are in agreement with the foregoing, please sign and return the enclosed counterparts of this Confidential Payment Letter to us no later than 5:00 p.m. CDT on, March 31, 2010, whereupon this
Confidential Payment Letter shall become effective and shall constitute a binding agreement between NGPC and the Issuer. 
  

			
	Sincerely,
	
	NGP CAPITAL RESOURCES COMPANY
		
	By:	 	/s/ R. Kelly Plato
	 Name:
	 	      R. Kelly Plato
	 Title:
	 	      Senior Vice President

  

			
	Accepted and agreed this 29th day
	 of March 2010

	
	 ISSUER:

	
	 GeoMet, Inc.

		
	By:	 	/s/ J. Darby Seré
	 Name:
	 	 J. Darby Seré

	 Title:
	 	 Chief Executive Officer

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