Document:

Registration Rights Agreement

 EXHIBIT 4.1 
  

EXECUTION VERSION 
  
 BANC OF AMERICA SECURITIES LLC 
  
 10,000,000 SHARES 
  
 GEOMET, INC. 
  
 COMMON STOCK 
  
 Resale Registration Rights Agreement 
  
 dated
January 30, 2006 

 RESALE REGISTRATION RIGHTS AGREEMENT, dated as of January 30, 2006, between GeoMet, Inc., a Delaware
corporation (together with any successor entity, herein referred to as the “Company”), and Banc of America Securities LLC, as the initial purchaser (the “Initial Purchaser”) under the Purchase Agreement (as defined
below). 
  
 Pursuant to the Purchase Agreement, dated as of
January 24, 2006, among the Company, the Selling Stockholders and Banc of America Securities LLC, as the Initial Purchaser (the “Purchase Agreement”), relating to the initial placement (the “Initial Placement”)
of the Common Stock (as defined below), the Initial Purchaser has agreed to purchase from the Company and the Selling Stockholders an aggregate of 10,000,000 shares (11,500,000 shares if the Initial Purchaser exercises its option to purchase
additional shares in full) (the “Shares”) of common stock, par value $0.001 per share, of the Company (the “Common Stock”). To induce the Initial Purchaser to purchase the Common Stock, the Company has agreed to
provide the registration rights set forth in this Agreement pursuant to Section 5(j) of the Purchase Agreement. 
  
 The parties hereby agree as follows: 
  
 1. Definitions. Capitalized terms used in this Agreement without definition shall have their respective meanings set forth in the Purchase
Agreement. As used in this Agreement, the following capitalized terms shall have the following meanings: 
  
 “Affiliate” of any specified person means any other person which, directly or indirectly, is in control of, is controlled by, or is under
common control with, such specified person. For purposes of this definition, control of a person means the power, direct or indirect, to direct or cause the direction of the management and policies of such person whether by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Agreement”: This Resale Registration Rights Agreement. 
  
 “Amended Effectiveness Deadline Date”: As defined in Section 2(f) hereof. 
  
 “Blue Sky Application”: As defined in Section 7(a)(i)
hereof. 
  
 “Business Day”: A day, other than a
Saturday or Sunday, that in the City of New York, is not a day on which banking institutions are authorized or required by law, regulation or executive order to close. 
  
 “Closing Date”: The date of the first issuance of the Common Stock. 
  
 “Commission”: Securities and Exchange Commission.

  
 “Common Stock”: As defined in the preamble
hereto. 

 “Company”: As defined in the preamble hereto. 
  
 “Effectiveness Period”: As defined in Section 2(a)(iii)
hereof. 
  
 “Effectiveness Target Date”: As
defined in Section 2(a)(ii) hereof. 
  
 “Exchange
Act”: Securities Exchange Act of 1934, as amended. 
  
 “Holder”: A Person who owns, beneficially or otherwise, Transfer Restricted Securities. 
  
 “Indemnified Holder”: As defined in Section 7(a) hereof. 
  
 “Initial Placement”: As defined in the preamble hereto. 
  
 “Initial Purchaser”: As defined in the preamble hereto.

  
 “Liquidated Damages”: As defined in
Section 4(a) hereof. 
  
 “Liquidated Damages Payment
Date”: The date on which a Registration Default occurs and then each March 31, June 30, September 30 and December 31 until all Registration Defaults have been cured. 
  
 “Losses”: As defined in Section 7(e) hereof. 
  
 “Majority of Holders”: Holders holding over 50% of the
Transfer Restricted Securities outstanding. 
  
 “Managing
Underwriter”: The investment banker or investment bankers and manager or managers that administer an underwritten offering, if any, conducted pursuant to Section 9 hereof. 
  
 “NASD”: National Association of Securities Dealers, Inc. 
  
 “Notice and Questionnaire” means a written notice executed
by the respective Holder and delivered to the Company containing the information called for by the Selling Securityholder Notice and Questionnaire attached as Annex I to the Offering Memorandum of the Company relating to the Common Stock.

  
 “Notice Holder”: On any date, any Holder of
Transfer Restricted Securities that has delivered a Notice and Questionnaire to the Company on or prior to such date. 
  
 “Person”: An individual, partnership, corporation, company, unincorporated organization, trust, joint venture or a government or agency
or political subdivision thereof. 
  
 “Piggyback
Registration Statement”: As defined in Section 3(a) hereof. 
  

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 “Purchase Agreement”: As defined in the preamble hereto. 
  
 “Prospectus”: The prospectus included in a Shelf
Registration Statement, as amended or supplemented by any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material incorporated by reference into such prospectus. 
  
 “Record Holder”: With respect to any Liquidated Damages
Payment Date, each Person who is a Holder on the 15th day preceding the relevant Liquidated Damages Payment Date.

  
 “Registration Default”: As defined in
Section 4(a) hereof. 
  
 “Securities Act”:
Securities Act of 1933, as amended. 
  
 “Shares”:
As defined in the preamble hereto. 
  
 “Shelf Filing
Deadline”: As defined in Section 2(a)(i) hereof. 
  
 “Shelf Registration Statement”: As defined in Section 2(a)(i) hereof. 
  
 “Subsequent Shelf Registration Statement”: As defined in Section 2(c) hereof. 
  
 “Suspension Notice”: As defined in Section 5(c) hereof.

  
 “Suspension Period”: As defined in
Section 5(b)(i) hereof. 
  
 “Transfer
Agent”: American Stock Transfer & Trust Company. 
  
 “Transfer Restricted Securities”: The Shares, upon original issuance thereof (or sale thereof by the Selling Stockholders), and at all times subsequent thereto, including upon the transfer thereof by the Initial Purchaser
or any subsequent holder and any shares of Common Stock or other securities issued in respect of such shares by reason of or in connection with any stock dividend, stock distribution, stock split, purchase in any rights offering or in connection
with any exchange for or replacement of such shares or any combination of shares, recapitalization, merger or consolidation, or any other equity securities issued pursuant to any other pro rata distribution with respect to the Common Stock until the
earliest of 
  
 (a) the date on which such Share
has been effectively registered under the Securities Act and disposed of in accordance with the Shelf Registration Statement; 
  
 (b) the date on which such Share is transferred in compliance with Rule 144 under the Securities Act or may be sold or transferred by a
person who is not an affiliate of the Company pursuant to Rule 144 under the Securities Act (or any other similar provision then in force) without any volume or manner of sale restrictions thereunder; or 
  

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 (c) the date on which such Share ceases to be outstanding (whether as a result of
repurchase and cancellation or otherwise). 
  
 “underwriter”: Any underwriter of Common Stock in connection with an offering thereof under the Shelf Registration Statement. 
  
 “Underwritten Registration”: A registration in which Common Stock of the Company is sold to an underwriter or underwriters for reoffering
to the public. 
  
 Unless the context otherwise requires, the
singular includes the plural, and words in the plural include the singular. 
  
 2. Shelf Registration. 
  
 (a) The Company shall: 
  
 (i) as promptly as practicable (but in no event more than 90 days after the Closing Date) (the “Shelf Filing Deadline”), cause to be filed a registration statement pursuant to Rule 415 under the Securities Act or any
similar rule that may be adopted by the Commission (the “Shelf Registration Statement”), which Shelf Registration Statement shall provide for the registration and resales, on a continuous or delayed basis, of all Transfer Restricted
Securities, held by Holders that have provided the information required pursuant to the terms of Section 2(b) hereof; 
  
 (ii) use its commercially reasonable efforts to cause the Shelf Registration Statement to be declared effective under the Securities Act
by the Commission not later than 210 days after the Closing Date (the “Effectiveness Target Date”); and 
  
 (iii) use its commercially reasonable efforts to keep the Shelf Registration Statement continuously effective, supplemented and amended as
required by the Securities Act and by the provisions of Section 5(b) hereof to the extent necessary to ensure that (A) it is available for resales of Transfer Restricted Securities by the Holders thereof entitled, subject to
Section 2(b), to the benefit of this Agreement and (B) conforms with the requirements of this Agreement and the Securities Act and the rules and regulations of the Commission promulgated thereunder as announced from time to time, for a
period (the “Effectiveness Period”) from the date the Shelf Registration Statement is declared effective by the Commission until the earliest of: 
  
 (1) the sale of all of the Transfer Restricted Securities pursuant to the registration statement or Rule
144 under the Securities Act or any similar provision then in effect; 
  

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 (2) such time as all of the Transfer Restricted Securities covered by the Shelf
Registration Statement and not held by Affiliates of the Company are, in the opinion of counsel for the Company, eligible for sale pursuant to Rule 144(k) (or any successor or analogous rule) under the Securities Act; or 
  
 (3) the second anniversary of the issuance of the Shares
pursuant to the Purchase Agreement with the Initial Purchaser. 
  
 The Company shall be deemed not to have used its commercially reasonable efforts to keep the Shelf Registration Statement effective during the Effectiveness Period if it voluntarily takes any action that would result in Holders of Transfer
Restricted Securities not being able to offer and sell such Transfer Restricted Securities at any time during the Effectiveness Period, unless such action is (x) required by applicable law or otherwise undertaken by the Company in good faith
and for valid business reasons (not including avoidance of the Company’s obligations hereunder), including, without limitation, the acquisition or divestiture of assets, and (y) permitted by Section 5(b)(ii) hereof. 
  
 (b) At the time the Shelf Registration Statement is declared
effective, each Holder that became a Notice Holder on or prior to the date ten (10) Business Days prior to such time of effectiveness shall be named as a selling securityholder in the Shelf Registration Statement and the related Prospectus in
such a manner as to permit such Holder to deliver such Prospectus to purchasers of Transfer Restricted Securities in accordance with applicable law. None of the Company’s securityholders (other than the Holders of Transfer Restricted
Securities) shall have the right to include any of the Company’s securities in the Shelf Registration Statement. 
  
 (c) If the Shelf Registration Statement or any Subsequent Shelf Registration Statement ceases to be effective for any reason at any time
during the Effectiveness Period (other than because all Transfer Restricted Securities registered thereunder shall have been resold pursuant thereto or shall have otherwise ceased to be Transfer Restricted Securities), the Company shall use its
commercially reasonable efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof or file an additional Shelf Registration Statement covering all of the securities that as of the date of such filing are Transfer
Restricted Securities (a “Subsequent Shelf Registration Statement”). If a 
  

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 Subsequent Shelf Registration Statement is filed, the Company shall use its commercially reasonable
efforts to cause the Subsequent Shelf Registration Statement to become effective as promptly as is practicable after such filing and to keep such Registration Statement (or subsequent Shelf Registration Statement) continuously effective until the
end of the Effectiveness Period. 
  
 (d) The
Company shall supplement and amend the Shelf Registration Statement if required by the rules, regulations or instructions applicable to the registration form used by the Company for such Shelf Registration Statement, if required by the Securities
Act or as reasonably requested by the Initial Purchaser or by the Holders of the Transfer Restricted Securities covered by such Shelf Registration Statement. 
  

(e) The Company shall cause the Shelf Registration Statement and the related Prospectus and any amendment or supplement thereto, as of
the effective date of the Shelf Registration Statement or such amendment or supplement, (i) to comply in all material respects with the applicable requirements of the Securities Act, and (ii) not to contain any 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 case of the Prospectus, in light of the circumstances under which they were made) not misleading. 

 
 (f) Each Holder agrees that if such Holder wishes to sell
Transfer Restricted Securities pursuant to a Shelf Registration Statement and related Prospectus, it will do so only in accordance with this Section 2(f) and Section 5(b). Each Holder wishing to sell Transfer Restricted Securities pursuant
to a Shelf Registration Statement and related Prospectus agrees to deliver a Notice and Questionnaire to the Company at least ten (10) Business Days prior to any intended distribution of Transfer Restricted Securities under the Shelf
Registration Statement. From and after the date the Shelf Registration Statement is declared effective the Company shall, as promptly as practicable after the date a Notice and Questionnaire is delivered to it, and in any event upon the later of
(x) ten (10) Business Days after such date (but no earlier than ten (10) Business Days after effectiveness) or (y) ten (10) Business Days after the expiration of any Suspension Period in effect when the Notice and
Questionnaire is delivered or put into effect within ten (10) Business Days of such delivery date: 
  
 (i) if required by applicable law, file with the SEC a post-effective amendment to the Shelf Registration Statement or prepare and, if
required by applicable law, file a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or file any other required document so that the Holder delivering such Notice and Questionnaire is

  

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 named as a selling securityholder in the Shelf Registration Statement and the related Prospectus in such
a manner as to permit such Holder to deliver such Prospectus to purchasers of the Transfer Restricted Securities in accordance with applicable law and, if the Company shall file a post-effective amendment to the Shelf Registration Statement, use its
best effort to cause such post-effective amendment to be declared effective under the Securities Act as promptly as is practicable, but in any event by the date (the “Amendment Effectiveness Deadline Date”) that is 45 days after the
date such post effective amendment is required by this clause to be filed; 
  
 (ii) provide such Holder copies of the any documents filed pursuant to Section 2(f)(i); and 
  
 (iii) notify such Holder as promptly as practicable after the effectiveness under the Securities Act of any post-effective amendment filed
pursuant to Section 2(f)(i); 
  
 provided that if such Notice and
Questionnaire is delivered during a Suspension Period, the Company shall so inform the Holder delivering such Notice and Questionnaire and shall take the actions set forth in clauses (i), (ii) and (iii) above upon expiration of the
Suspension Period in accordance with Section 5(b). Notwithstanding anything contained herein to the contrary, (i) the Company shall be under no obligation to name any Holder that is not a Notice Holder as a selling securityholder in any
Shelf Registration Statement or related Prospectus and (ii) the Amendment Effectiveness Deadline Date shall be extended by up to ten (10) Business Days from the Expiration of a Suspension Period (and the Company shall incur no obligation
to pay Liquidated Damages during such extension) if such Suspension Period shall be in effect on the Amendment Effectiveness Deadline Date. 
  
 3. Piggyback Registration. 
  
 (a) If, after the date hereof, the Company proposes to file a registration statement under the Securities Act providing for an initial
public offering of the Company’s equity securities, other than the Shelf Registration Statement, or a registration statement on Form S-8 or Form S-4 or any similar form hereafter adopted by the Commission as a replacement therefor (including
the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto and all material incorporated by reference or deemed to be incorporated by reference, if any,
in such registration statement, the “Piggyback Registration Statement”), the Company will notify each Holder of the proposed filing if clause (i) or (ii) of the following sentence applies, or only those affected Holders if
clause (iii) of the following sentence applies. If (i) the Piggyback Registration Statement relates to an Underwritten Registration, 
  

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 (ii) the Shelf Registration Statement is not then effective or (iii) Transfer Restricted Securities
eligible for inclusion on the Shelf Registration Statement when initially declared effective were not included in the Shelf Registration Statement (unless such securities can and will be added to the Shelf Registration Statement at such time), then
each Holder in the case of clause (i) and (ii), and each such affected Holder in the case of clause (iii), shall be given an opportunity to include in such Piggyback Registration Statement all or any part of such Holder’s Transfer
Restricted Securities. Each such Holder desiring to include in any such Piggyback Registration Statement all or part of such Holder’s Transfer Restricted Securities shall, within ten (10) days after delivery of the above-described notice
by the Company, so notify the Company in writing, and in such notice shall inform the Company of the number of Transfer Restricted Securities such Holder wishes to include in such Piggyback Registration Statement and provide, as a condition to such
inclusion, such information regarding itself, its Transfer Restricted Securities and the intended method of disposition of such securities as is required pursuant to Regulation S-K promulgated under the Securities Act to effect the registration of
the Transfer Restricted Securities. Any election by any Holder to include any Transfer Restricted Securities in such Piggyback Registration Statement will not affect the inclusion of such Transfer Restricted Securities in the Shelf Registration
Statement until such Transfer Restricted Securities have been sold under the Piggyback Registration Statement; provided, however, that at such time, the Company may remove from the Shelf Registration Statement the Transfer Restricted
Securities sold pursuant to the Piggyback Registration Statement. 
  
 (b) At any time, the Company may terminate or withdraw any Piggyback Registration Statement referred to in this Section 3, and without any obligation to any such Holder whether or not any Holder has elected to
include Transfer Restricted Securities in such registration. The Company may suspend the effectiveness and use of any Piggyback Registration Statement at any time for an unlimited amount of time whether or not any Holder has elected to include
Transfer Restricted Securities in such registration. 
  
 (c) The Company shall advise the Holders of the managing underwriters for any Underwritten Registration proposed under the Piggyback Registration Statement. The right of any such Holder’s Transfer Restricted Securities to be included
in any such Piggyback Registration Statement pursuant to this Section 3 shall be conditioned upon such Holder’s participation in such Underwritten Registration and the inclusion of such Holder’s Transfer Restricted Securities in the
Underwritten Registration to the extent provided herein. All Holders proposing to distribute their Transfer Restricted Securities through such Underwritten Registration shall enter into an underwriting agreement in 
  

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 customary form with the managing underwriters selected for such underwriting and complete and execute any
questionnaires, powers of attorney, indemnities, securities escrow agreements and other documents reasonably required under the terms of such underwriting, and furnish to the Company such information in writing as the Company may reasonably request
for inclusion in the Piggyback Registration Statement; provided, however, that no Holder shall be required to make any representations or warranties to or agreements with the Company or the underwriters other than representations,
warranties or agreements as are customary and reasonably requested by the underwriters. Notwithstanding any other provision of this Agreement, if the managing underwriters determine in good faith that marketing factors require a limitation on the
number of securities to be included, then the managing underwriters may exclude securities (including Transfer Restricted Securities) from the Piggyback Registration Statement and the Underwritten Registration, and any securities included in the
Piggyback Registration Statement and the Underwritten Registration shall be allocated, first, to the Company, and second, to each of the Holders requesting inclusion of their Transfer Restricted Securities in such Piggyback
Registration Statement on a pro rata basis based on the total number of such securities requested to be included. If any Holder disapproves of the terms of any Underwritten Registration, such Holder may elect to withdraw therefrom by written
notice to the Company and the underwriter, delivered at least ten (10) Business Days prior to the effective date of the Piggyback Registration Statement. Any Transfer Restricted Securities excluded or withdrawn from such Underwritten
Registration shall be excluded and withdrawn from the Piggyback Registration Statement. 
  
 (d) By electing to include Transfer Restricted Securities in the Piggyback Registration Statement, if any, the Holder shall be deemed to
have agreed not to effect any sale or distribution of securities of the Company of the same or similar class or classes of the securities included in the Piggyback Registration Statement or any securities convertible into or exchangeable or
exercisable for such securities, including a sale pursuant to Rule 144 under the Securities Act, during such periods as reasonably requested (but in no event for a period longer than sixty (60) days following the effective date of the Piggyback
Registration Statement, provided each of the executive officers and directors of the Company that hold shares of Common Stock of the Company or securities convertible into or exchangeable or exercisable for shares of Common Stock of the Company are
subject to the same restriction for the entire time period required of the Holders hereunder) by the representatives of the underwriters, if an Underwritten Registration. 
  
 (e) Upon an initial public offering of the Company’s equity securities, Holders that are beneficiaries
of this Agreement, whether or not 
  

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 they sell in the initial public offering, will not be able to sell any remaining Transfer Restricted
Securities not included in the Piggyback Registration Statement for a period of 60 days following the effective date of such Piggyback Registration Statement. 
  

(f) The Company’s obligation to file the Shelf Registration Statement shall not be affected by the filing or effectiveness of the
Piggyback Registration Statement. 
  
 4. Liquidated
Damages. 
  
 (a) If: 
  
 (i) the Shelf Registration Statement is not filed with the
Commission prior to or on the Shelf Filing Deadline; or 
  
 (ii) the Shelf Registration Statement has not been declared effective by the Commission prior to or on the Effectiveness Target Date; 
  
 (each such event referred to in foregoing clauses (i) and (ii), a (“Registration Default”)), the Company hereby agrees
to pay damages (“Liquidated Damages”) with respect to the Transfer Restricted Securities at the close of business on the date of such Registration Default in an amount per share of Common Stock equal to 0.5% of the offering price
per share set forth on the cover page of the Offering Memorandum. In addition, additional liquidated damages will accrue daily commencing on the date of such Registration Default at an annual rate per share equal to 0.5% of such offering price of
the Common Stock with respect to the first 90-day period following the occurrence of such Registration Default and will increase by an additional 0.5% per annum with respect to each subsequent 90-day period until all Registration Defaults have
been cured up to a maximum rate of 2.0% per annum with respect to all Registration Defaults. 
  
 (b) All accrued Liquidated Damages shall be paid in arrears to Record Holders by the Company on each Liquidated Damages Payment Date. Upon
the cure of all Registration Defaults relating to any particular share of Common Stock, the accrual of Liquidated Damages with respect to such share of Common Stock will cease. 
  
 All obligations of the Company set forth in this Section 4 that are outstanding with respect to any Transfer Restricted
Security at the time such security ceases to be a Transfer Restricted Security shall survive until such time as all such obligations with respect to such Transfer Restricted Security shall have been satisfied in full. 
  

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 The Liquidated Damages set forth above shall be the exclusive monetary remedy available to the Holders of
Transfer Restricted Securities for each Registration Default. 
  
 5. Registration Procedures. 
  
 (a) In connection with the Shelf Registration Statement, the Company shall comply with all the provisions of Section 5(b) hereof and shall use its commercially reasonable efforts to effect such registration to permit the sale of the
Transfer Restricted Securities, and pursuant thereto, shall as expeditiously as possible prepare and file with the Commission a Shelf Registration Statement relating to the registration on any appropriate form under the Securities Act. 

 
 (b) In connection with the Shelf Registration Statement
and any Prospectus required by this Agreement to permit the sale or resale of Transfer Restricted Securities, the Company shall: 
  
 (i) Subject to any notice by the Company in accordance with this Section 5(b) of the existence of any fact or event of the kind
described in Section 5(b)(iv)(D), use its commercially reasonable efforts to keep the Shelf Registration Statement continuously effective during the Effectiveness Period; upon the occurrence of any event that would cause the Shelf Registration
Statement or the Prospectus contained therein (A) to contain a material misstatement or omission or (B) not to be effective and usable for resale of Transfer Restricted Securities during the Effectiveness Period, the Company shall file
promptly an appropriate amendment to the Shelf Registration Statement, a supplement to the Prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, in the case of clause (A), correcting
any such misstatement or omission, and, in the case of either clause (A) or (B), use its commercially reasonable efforts to cause such amendment to be declared effective and the Shelf Registration Statement and the related Prospectus to become
usable for their intended purposes as soon as practicable thereafter. 
  
 (ii) Notwithstanding Section 5(b)(i) hereof, the Company may suspend the effectiveness of the Shelf Registration Statement (each such period, a “Suspension Period”): 
  
 (x) if the representative of the underwriters of an
underwritten offering of primary shares by the Company has advised the Company that the sale of shares of Common Stock under the Shelf Registration Statement would have a material adverse effect on the Company’s initial public offering;

  

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 (y) if a majority of the Company’s board of directors, in good faith, determines
that (1) the offer or sale of any shares of Common Stock would materially impede, delay or interfere with any proposed financing, offer or sale of securities, acquisition, merger, tender offer, business combination, corporate reorganization,
consolidation or other significant transaction involving the Company; (2) after the advice of counsel, the sale of the shares of Common Stock covered by the Shelf Registration Statement would require disclosure of non-public material
information not otherwise required to be disclosed under applicable law; or (3) either (A) the Company has a bona fide business purpose for preserving the confidentiality of the proposed transaction, (B) disclosure would have a
material adverse effect on the Company or the Company’s ability to consummate the proposed transaction, or (C) the proposed transaction renders the Company unable to comply with requirements of the Commission; or 
  
 (z) if a majority of the Company’s board of directors,
in good faith, determines that the Company is required by law, rule or regulation to supplement the Shelf Registration Statement or file a post-effective amendment to the Shelf Registration Statement in order to incorporate information into the
Shelf Registration Statement for the purpose of (1) including in the Shelf Registration Statement any Prospectus required under Section 10(a)(3) of the Securities Act; (2) reflecting in the Prospectus included in the Shelf
Registration Statement any facts or events arising after the Effective Date of the Shelf Registration Statement (or the most recent post-effective amendment) that, individually or in the aggregate, represents a fundamental change in the information
set forth in the Prospectus; or (3) including in the Prospectus included in the Shelf Registration Statement any material information with respect to the plan of distribution not disclosed in the Shelf Registration Statement or any material
change to such information. 
  
 Upon the occurrence of any event
described in clauses (x), (y) and (z) of this Section 5(b)(ii), the Company shall give notice to the Holders that the availability of the Shelf Registration is suspended and, upon actual receipt of any such notice, each Holder agrees
not to sell any Transfer Restricted Securities pursuant to the Shelf Registration until such Holder’s receipt of copies of the supplemented or amended Prospectus provided for in Section 5(b) hereof. The period during which the availability
of the Shelf Registration and any Prospectus is suspended (the “Suspension Period”) shall not exceed 60 days in any 90-day period (except as 
  

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 a result of a review of any post-effective amendment by the Commission prior to declaring any
post-effective amendment to the Shelf Registration Statement effective provided the Company has used all commercially reasonable efforts to cause such post-effective amendment to be declared effective); provided, that Suspension Periods shall
not exceed an aggregate of 90 days in any 12-month period. The Company shall not be required to specify in the written notice to the Holders the nature of the event giving rise to the Suspension Period. 
  
 (iii) Prepare and file with the Commission such amendments
and post-effective amendments to the Shelf Registration Statement as may be necessary to keep the Shelf Registration Statement effective during the Effectiveness Period; cause the Prospectus to be supplemented by any required Prospectus supplement,
and as so supplemented to be filed pursuant to Rule 424 under the Securities Act, and to comply fully with the applicable provisions of Rules 424 under the Securities Act in a timely manner; and comply with the provisions of the Securities Act with
respect to the disposition of all Common Stock covered by the Shelf Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the sellers thereof set forth in the Shelf Registration
Statement or supplement to the Prospectus. 
  
 (iv) Advise the selling Holders and the Initial Purchaser that has provided in writing to the Company a telephone or facsimile number and address for notices, promptly and, if requested by such selling Holders, to confirm such advice in
writing (which notice pursuant to clauses (B) through (D) below shall be accompanied by an instruction to suspend the use of the Prospectus until the Company shall have remedied the basis for such suspension): 
  
 (A) when the Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to the Shelf Registration Statement or any post-effective amendment thereto, when the same has become effective, 
  
 (B) of any request by the Commission for amendments to the Shelf Registration Statement or amendments or
supplements to the Prospectus or for additional information relating thereto, 
  
 (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Shelf Registration 
  

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 Statement under the Securities Act or of the suspension by any state securities commission of the
qualification of the Transfer Restricted Securities for offering or sale in any jurisdiction, or the threatening or initiation of any proceeding for any of the preceding purposes, or 
  
 (D) of the existence of any fact or the happening of any event, during the Effectiveness Period, that makes
any statement of a material fact made in the Shelf Registration Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated by reference therein untrue, or that requires the making of any additions to or changes in
the Shelf Registration Statement or the Prospectus in order to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading. 
  
 (v) If at any time the Commission shall issue any stop order
suspending the effectiveness of the Shelf Registration Statement, or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted
Securities under state securities or Blue Sky laws, the Company shall use its commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest possible time and will provide to each Holder who is named in the Shelf
Registration Statement prompt notice of the withdrawal of any such order. 
  
 (vi) Make available at reasonable times for inspection by one or more representatives of the selling Holders, designated in writing by a Majority of Holders whose Transfer Restricted Securities are included in the
Shelf Registration Statement, and any attorney or accountant retained by such selling Holders and the Initial Purchaser participating in any disposition pursuant to the Shelf Registration Statement, all financial and other records, pertinent
corporate documents and properties of the Company as shall be reasonably necessary to enable them to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act, and cause the Company’s officers, directors,
managers and employees to supply all information reasonably requested by any such representative or representatives of the selling Holders, attorney or accountant in connection therewith. 
  
 (vii) If requested by any selling Holders or the Initial
Purchaser, promptly incorporate in the Shelf Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling 
  

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 Holders may reasonably request to have included therein, including, without limitation, information
relating to the “Plan of Distribution” of the Transfer Restricted Securities. 
  
 (viii) Deliver to each selling Holder, without charge, as many copies of the Prospectus (including each preliminary Prospectus) and any
amendment or supplement thereto as such Persons reasonably may request; subject to any notice by the Company in accordance with this Section 5(b) of the existence of any fact or event of the kind described in Section 5(b)(iii)(D), the
Company hereby consents to the use of the Prospectus and any amendment or supplement thereto by each of the selling Holders in connection with the offering and the sale of the Transfer Restricted Securities covered by the Prospectus or any amendment
or supplement thereto. 
  
 (ix) Before any public
offering of Transfer Restricted Securities, cooperate with the selling Holders and their counsel in connection with the registration and qualification of the Transfer Restricted Securities under the securities or Blue Sky laws of such jurisdictions
in the United States as the selling Holders may reasonably request and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Transfer Restricted Securities covered by the Shelf Registration
Statement; provided, however, that the Company shall not be required (A) to register or qualify as a foreign corporation or a dealer of securities where it is not now so qualified or to take any action that would subject it to the
service of process in any jurisdiction where it is not now so subject, other than service of process for suits arising out of the Initial Placement or any offering pursuant to the Shelf Registration Statement, or (B) to subject itself to
general or unlimited service of process or to taxation in any such jurisdiction if they are not now so subject. 
  
 (x) Unless any Transfer Restricted Securities shall be in book-entry form only, cooperate with the selling Holders to facilitate the
timely preparation and delivery of certificates representing Transfer Restricted Securities to be sold and not bearing any restrictive legends (unless required by applicable securities laws); and enable such Transfer Restricted Securities to be in
such denominations and registered in such names as the Holders may request at least two Business Days before any sale of Transfer Restricted Securities. 
  
 (xi) Use its commercially reasonable efforts to cause the Transfer Restricted Securities covered by the Shelf Registration Statement to be
registered with or approved by such other U.S. 
  

 15 

 governmental agencies or authorities as may be necessary to enable the seller or sellers thereof to
consummate the disposition of such Transfer Restricted Securities. 
  
 (xii) Subject to Section 5(b)(ii) hereof, if any fact or event contemplated by Section 5(b)(iv)(B) through (D) hereof shall exist or have occurred, use its commercially reasonable efforts to prepare a
supplement or post-effective amendment to the Shelf Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of Transfer
Restricted Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they
are made, not misleading. 
  
 (xiii) Provide
CUSIP numbers for all Transfer Restricted Securities not later than the effective date of the Shelf Registration Statement and provide the Transfer Agent with certificates for Common Stock that are in a form eligible for deposit with The Depository
Trust Company. 
  
 (xiv) Cooperate and assist in
any filings required to be made with the NASD and in the performance of any due diligence investigation by any underwriter that is required to be undertaken in accordance with the rules and regulations of the NASD. 
  
 (xv) Otherwise use its commercially reasonable efforts to
comply with all applicable rules and regulations of the Commission and all reporting requirements under the rules and regulations of the Exchange Act. 
  
 (xvi) Make generally available to its security holders an earnings statement satisfying the provisions of Section 11(a) of the
Securities Act as soon as practicable after the effective date of the Shelf Registration Statement and in any event no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning with the first month
of the Company’s first fiscal quarter commencing after the effective date of the Shelf Registration Statement. 
  
 (xvii) Use its commercially reasonable efforts to satisfy the criteria for listing and list or include (if the Company meets the criteria
for listing on such exchange or market) the Common Stock on the New York Stock Exchange, American Stock Exchange or The Nasdaq National Market (as soon as practicable, including 
  

 16 

 seeking to cure in its listing or inclusion application any deficiencies cited by the exchange or
market), and thereafter maintain the listing on such exchange. 
  
 (xviii) Provide to each Holder upon written request each document filed with the Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange Act after the effective date of the Shelf
Registration Statement, unless such document is available through the Commission’s EDGAR system. 
  
 (xix) In connection with any underwritten offering conducted pursuant to Section 9 hereof, make such representations and warranties
to the Holders of Securities registered thereunder and the underwriters, in form, substance and scope as are customarily made by issuers to underwriters in primary underwritten offerings and covering matters including, but not limited to, those set
forth in the Purchase Agreement; 
  
 (xx) In
connection with any underwritten offering conducted pursuant to Section 9 hereof, obtain opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the
Managing Underwriters) addressed to each selling Holder and the underwriters, if any, covering such matters as are customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such
Holders and underwriters; 
  
 (xxi) In connection
with any underwritten offering conducted pursuant to Section 9, hereof, obtain “comfort” letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified
public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Shelf Registration Statement), addressed to each selling
Holder of Securities registered thereunder and the underwriters, in customary form and covering matters of the type customarily covered in “comfort” letters in connection with primary underwritten offerings; and 
  
 (xxii) In connection with any underwritten offering
conducted pursuant to Section 9 hereof, deliver such documents and certificates as may be reasonably requested by a Majority of Holders and the Managing Underwriters, including those to evidence compliance with Section 5(b)(ii) and
5(b)(xii) hereof and with any customary conditions contained in the Purchase Agreement or other agreement entered into by the Company. 
  

 17 

 (xxiii) In connection with underwritten offering conducted pursuant to Section 9
hereof, the Company shall, if requested, promptly include or incorporate in a Prospectus supplement or post-effective amendment to the Shelf Registration Statement such information as the Managing Underwriters reasonably agree should be included
therein and to which the Company does not reasonably object and shall make all required filings of such Prospectus supplement or post-effective amendment as soon as practicable after it is notified of the matters to be included or incorporated in
such Prospectus supplement or post-effective amendment. 
  
 (xxiv) Use its commercially reasonable efforts to take all other steps necessary to effect the registration of the Common Stock covered by the Shelf Registration Statement. 
  
 (xxv) Enter into customary agreements (including, if
requested, an underwriting agreement in customary form) and take all other appropriate actions in order to expedite or facilitate the registration or the disposition of the Common Stock, and in connection therewith, if an underwriting agreement is
entered into, cause the same to contain indemnification provisions and procedures no less favorable than those set forth in Section 7 hereof. 
  
 The actions set forth in clauses (xx), (xxi), (xxii) and (xxiii) of this Section 5(b) shall be performed at (A) the effectiveness of
the Shelf Registration Statement and each post-effective amendment thereto; and (b) each closing under any underwriting or similar agreement as and to the extent required thereunder. 
  
 (c) Each Holder agrees by acquisition of a Transfer
Restricted Security that, upon receipt of any notice (a “Suspension Notice”) from the Company of the existence of any fact of the kind described in Section 5(b)(iii)(D) hereof, such Holder will forthwith discontinue disposition
of Transfer Restricted Securities pursuant to the Shelf Registration Statement until: 
  
 (i) such Holder has received copies of the supplemented or amended Prospectus contemplated by Section 5(b)(xi) hereof; or 

 
 (ii) such Holder is advised in writing by the Company
that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus. 
  

 18 

 If so directed by the Company, each Holder will deliver to the Company (at the Company’s expense) all copies, other
than permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Securities that was current at the time of receipt of such notice of suspension. 
  
 (d) Each Holder agrees by acquisition of a Transfer
Restricted Security, that no Holder shall be entitled to sell any of such Transfer Restricted Securities pursuant to a Shelf Registration Statement, or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with a
Notice and Questionnaire as required pursuant to Section 2(f) hereof (including the information required to be included in such Notice and Questionnaire) and the information set forth in the next sentence. The Company may require each Notice
Holder of Common Stock to be sold pursuant to the Shelf Registration Statement to furnish to the Company such information regarding the Holder and the distribution of such Common Stock as the Company may from time to time reasonably require for
inclusion in such Shelf Registration Statement. Each Notice Holder agrees promptly to furnish to the Company all information required to be disclosed in order to make the information previously furnished to the Company by such Notice Holder not
misleading and any other information regarding such Notice Holder and the distribution of such Transfer Restricted Securities as the Company may from time to time reasonably request in writing. The Company may exclude from such Shelf Registration
Statement the Common Stock of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such request. 
  
 6. Registration Expenses. 
  
 All expenses incident to the Company’s performance of or compliance with this Agreement shall be borne by the Company regardless of
whether a Shelf Registration Statement becomes effective, including, without limitation: 
  
 (a) all registration and filing fees and expenses (including filings made with the NASD); 
  
 (b) all fees and expenses of compliance with federal
securities and state Blue Sky or securities laws; 
  
 (c) all expenses of printing (including printing of Prospectuses and, if applicable, certificates for the Common Stock) and the Company’s expenses for messenger and delivery services and telephone; 
  
 (d) all fees and disbursements of counsel to the Company;

  

 19 

 (e) all application and filing fees in connection with listing (or authorizing for
quotation) the Common Stock on a national securities exchange or automated quotation system pursuant to the requirements hereof; and 
  
 (f) all fees and disbursements of independent certified public accountants of the Company. 
  
 The Company shall bear its internal expenses (including, without limitation,
all salaries and expenses of their officers and employees performing legal, accounting or other duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the Company. The Company shall
pay all expenses customarily borne by issuers in an underwritten offering as set forth in Section 9(c) hereof. 
  
 7. Indemnification And Contribution. 
  
 (a) The Company agrees to indemnify and hold harmless each Holder of Transfer Restricted Securities (including the Initial Purchaser), its
directors, officers, and employees, Affiliates and agents and each person, if any, who controls any such Holder within the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Holder”), against any loss, claim,
damage, liability or expense, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to resales of the Transfer Restricted Securities), to which such Indemnified
Holder may become subject, insofar as any such loss, claim, damage, liability or action arises out of, or is based upon: 
  
 (i) any untrue statement or alleged untrue statement of a material fact contained in (A) the Shelf Registration Statement as
originally filed or in any amendment thereof, in any Prospectus, or in any amendment or supplement thereto, or (B) any blue sky application or other document or any amendment or supplement thereto prepared or executed by the Company (or based
upon written information furnished by or on behalf of the Company expressly for use in such blue sky application or other document or amendment or supplement) filed in any jurisdiction specifically for the purpose of qualifying any or all of the
Transfer Restricted Securities under the securities law of any state or other jurisdiction (such application or document being hereinafter called a “Blue Sky Application”); or 
  
 (ii) the omission or alleged omission to state therein any
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, 
  

 20 

 and agrees to reimburse each Indemnified Holder promptly upon demand for any legal or other expenses reasonably incurred
by such Indemnified Holder in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however, that the Company shall not be liable in any such case to
the extent that any such loss, claim, damage, liability or expense arises out of, or is based upon, any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information
furnished to the Company by or on behalf of such Holder (or its related Indemnified Holder) specifically for use therein. The foregoing indemnity agreement is in addition to any liability which the Company may otherwise have. 
  
 The Company also agrees to indemnify as provided in this Section 7(a) or
contribute as provided in Section 7(e) hereof to Losses (as defined below) of each underwriter, if any, of Common Stock registered under a Shelf Registration Statement, their directors, officers, employees, Affiliates or agents and each person
who controls such underwriter on substantially the same basis as that of the indemnification of the Initial Purchaser and the selling Holders provided in this Section 7(a) and shall, if requested by any Holder, enter into an underwriting
agreement reflecting such agreement, as provided in Section 5(b)(xxiv) hereof. 
  
 (b) Each Holder, severally and not jointly, agrees to indemnify and hold harmless the Company, its directors, officers and employees and
each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act to the same extent as the foregoing indemnity from the Company to each such Holder, but only with reference to written information relating to
such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion in the documents referred to in the foregoing indemnity. This indemnity agreement set forth in this Section shall be in addition to any liabilities which
any such Holder may otherwise have. In no event shall any Holder, its directors, officers or any person who controls such Holder be liable or responsible for any amount in excess of the amount by which the total amount received by such Holder with
respect to its sale of Transfer Restricted Securities pursuant to a Shelf Registration Statement exceeds (i) the amount paid by such Holder for such Transfer Restricted Securities and (ii) the amount of any damages that such Holder, its
directors, officers or any person who controls such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. 
  
 (c) Promptly after receipt by an indemnified party under this Section 7 of notice of any claim or the
commencement of any action, the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under this Section 7, notify the indemnifying party in writing of the claim or the commencement of that action;
provided, however, that the failure to notify the indemnifying party (i) shall not relieve it from any liability which it may have under paragraphs (a) or (b)
  

 21 

 of this Section unless and to the extent it did not otherwise learn of such action and such failure
results in the forfeiture by the indemnifying party of substantial rights and defenses, and (ii) shall not, in any event, relieve it from any liability which it may have to an indemnified party otherwise than under paragraphs (a) or
(b) of this Section 7. If any such claim or action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that
it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume
the defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this Section 7 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof
other than reasonable costs of investigation; provided, however, that the Holders shall have the right to employ a single counsel to represent jointly the Holders and their officers, employees and controlling persons who may be subject to
liability arising out of any claim in respect of which indemnity may be sought by the Holders against the Company under this Section 7 if the Holders seeking indemnification shall have been advised by legal counsel that there may be one or more
legal defenses available to such Holders and their respective officers, employees and controlling persons that are different from or additional to those available to the Company, and in that event, the fees and expenses of such separate counsel
shall be paid by the Company. 
  
 (d) The
indemnifying party under this Section shall not be liable for any settlement of any proceeding effected without its written consent, which shall not be withheld unreasonably, but if settled with such consent or if there is a final judgment for the
plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 7(c) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding
effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified
party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending
or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such 
  

 22 

 settlement, compromise or consent (x) includes an unconditional release of such indemnified party
from all liability on claims that are the subject matter of such action, suit or proceeding and (y) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

  
 (e) If the indemnification provided for in
this Section 7 shall for any reason be unavailable or insufficient to hold harmless an indemnified party under Section 7(a) or 7(b) in respect of any loss, claim, damage or liability (or action in respect thereof) referred to therein, each
indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the aggregate amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability (including legal or other expenses reasonably
incurred in connection with investigating or defending any loss, claim, liability, damage or action) (collectively “Losses”) (or action in respect thereof): 
  
 (i) in such proportion as is appropriate to reflect the relative benefits received by the Company from the
offering and sale of the Transfer Restricted Securities on the one hand and a Holder with respect to the sale by such Holder of the Transfer Restricted Securities on the other, or 
  
 (ii) if the allocation provided by Section 7(d)(i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in Section 7(d)(i) but also the relative fault of the Company on the one hand and the Holders on the other in connection with the statements or omissions or
alleged statements or alleged omissions that resulted in such loss, claim, damage or liability (or action in respect thereof), as well as any other relevant equitable considerations. 
  
 The relative benefits received by the Company on the one hand and a Holder on the other with respect to such offering and such sale shall be
deemed to be in the same proportion as the total net proceeds from the offering of the Common Stock purchased under the Purchase Agreement (before deducting expenses) received by the Company, on the one hand, bear to the total proceeds received by
such Holder with respect to its sale of Transfer Restricted Securities on the other. The relative fault of the parties shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company on the one hand or the Holders on the other, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and each Holder agree that it would not be just and equitable if the amount of contribution pursuant to this Section 7(e) were determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the first sentence of this paragraph (e). 
  

 23 

 The amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability,
or action in respect thereof, referred to above in this Section 7 shall be deemed to include, for purposes of this Section 7, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or
defending or preparing to defend any such action or claim. 
  
 No
Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations
to contribute as provided in this Section 7(d) are several and not joint. 
  
 (f) The provisions of this Section 7 shall remain in full force and effect, regardless of any investigation made by or on behalf of
any Holder or the Company or any of the officers, directors or controlling persons referred to in Section 7 hereof, and will survive the sale by a Holder of Transfer Restricted Securities. 
  
 8. Rule 144A and Rule 144. The Company agrees with each Holder, for so
long as any Transfer Restricted Securities remain outstanding and during any period in which the Company (i) is not subject to Section 13 or 15(d) of the Exchange Act, to make available, upon request of any Holder, to such Holder or
beneficial owner of Transfer Restricted Securities in connection with any sale thereof and any prospective purchaser of such Transfer Restricted Securities designated by such Holder or beneficial owner, the information required by Rule 144A(d)(4)
under the Securities Act in order to permit resales of such Transfer Restricted Securities pursuant to Rule 144A, and (ii) is subject to Section 13 or 15 (d) of the Exchange Act, to make all filings required thereby in a timely manner
in order to permit resales of such Transfer Restricted Securities pursuant to Rule 144. 
  
 9. Underwritten Registrations.  
  
 (a) Any Holder of Transfer Restricted Securities who desires to do so may sell Transfer Restricted Securities (in whole or in part) in an underwritten offering; provided that (i) the Electing Holders of at
least 33 1/3% in aggregate amount of the Transfer Restricted Securities then covered by the Shelf Registration
Statement shall request such an offering and (ii) at least such aggregate amount of such Transfer Restricted Securities shall be included in such offering; and provided further that the Company shall not be obligated to participate in
more than one underwritten offering during the Effectiveness Period. Upon receipt of such a request, the Company shall provide all Holders of Transfer Restricted Securities written notice of the request, which notice shall inform such Holders that
they have the opportunity to participate in the 
  

 24 

 offering. If any of the Transfer Restricted Securities covered by the Shelf Registration Statement are to
be sold in an underwritten offering, the Managing Underwriters shall be selected by a Majority of Holders. 
  
 (b) No person may participate in any underwritten offering pursuant to the Shelf Registration Statement unless such person (i) agrees
to sell such person’s Common Stock on the basis reasonably provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements; (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements; and (iii) if such Holder is not then a Notice Holder, such Holder returns a completed and signed Notice
and Questionnaire to the Company in accordance with Section 2(f) hereof within a reasonable amount of time before such underwritten offering. 
  
 (c) The Holders participating in any underwritten offering shall be responsible for any underwriting discounts and commissions and fees
and, subject to Section 6 hereof, expenses of their own counsel. The Company shall pay all expenses customarily borne by issuers in an underwritten offering, including but not limited to filing fees, the fees and disbursements of its counsel
and independent public accountants and any printing expenses incurred in connection with such underwritten offering. Notwithstanding the foregoing or the provisions of Section 5(b)(xxii) hereof, upon receipt of a request from the Managing
Underwriter or a representative of holders of a majority of the Transfer Restricted Securities to be included in an underwritten offering to prepare and file an amendment or supplement to the Shelf Registration Statement and Prospectus in connection
with an underwritten offering, the Company may delay the filing of any such amendment or supplement for up to 90 days if the Board of Directors of the Company shall have determined in good faith that the Company has a bona fide business reason for
such delay. 
  
 10. Miscellaneous. 
  
 (a) Remedies. The Company acknowledges and agrees
that any failure by the Company to comply with its obligations under Section 2 hereof may result in material irreparable injury to the Initial Purchaser or the Holders for which there is no adequate remedy at law, that it will not be possible
to measure damages for such injuries precisely, and that, in the event of any such failure, in addition to being entitled to exercise all rights provided to it herein, in the Indenture or in the Purchase Agreement or granted by law, including
recovery of liquidated or other damages, the Initial Purchaser or any Holder may obtain such relief as may be required to specifically enforce the Company’s obligations under Section 2 hereof. The Company further agrees to waive the
defense in any action for specific performance that a remedy at law would be adequate. 
  

 25 

 (b) Actions Affecting Transfer Restricted Securities. The Company shall not,
directly or indirectly, take any action with respect to the Transfer Restricted Securities as a class that would adversely affect the ability of the Holders of Transfer Restricted Securities to include such Transfer Restricted Securities in a
registration undertaken pursuant to this Agreement. 
  
 (c) No Inconsistent Agreements. The Company has not, as of the date hereof, entered into, nor shall it, on or after the date hereof, enter into, any agreement with respect to its securities that is inconsistent with the rights
granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. In addition, the Company shall not grant to any of its securityholders (other than the Holders of Transfer Restricted Securities in such capacity)
(i) the right to include any of its securities in the Shelf Registration Statement or the Piggyback Registration Statement, if any, provided for in this Agreement other than the Transfer Restricted Securities, unless pursuant to such grant,
such securityholder may include such securities on the Shelf Registration Statement or such Piggyback Registration Statement only to the extent that the inclusion of such securities will not reduce the amount of Transfer Restricted Securities of the
Holders that is included on the Shelf Registration Statement or such Piggyback Registration Statement or (ii) the right to have its Common Stock registered on a registration statement that could be declared effective within one hundred eighty
(180) days of the effective date of any Shelf Registration Statement or Piggyback Registration Statement filed pursuant to this Agreement. 
  
 (d) Amendments and Waivers. This Agreement may not be amended, modified or supplemented, and waivers or consents to or departures
from the provisions hereof may not be given, unless the Company has obtained the written consent of a Majority of Holders; provided, however, that with respect to any matter that directly or indirectly adversely affects the rights of
the Initial Purchaser hereunder, the Company shall obtain the written consent of the Initial Purchaser against which such amendment, qualification, supplement, waiver or consent is to be effective. Notwithstanding the foregoing (except the foregoing
proviso), a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose securities are being sold pursuant to a Shelf Registration Statement and does not directly or
indirectly adversely affect the rights of other Holders, may be given by a Majority of Holders, determined on the basis of Common Stock being sold rather than registered under such Shelf Registration Statement. 
  
 (e) Notices. All notices and other communications
provided for or permitted hereunder shall be made in writing by hand delivery, first class mail (registered or certified, return receipt requested), facsimile transmission, or air courier guaranteeing overnight delivery: 
  
 (i) if to a Holder, at the address set forth on the records
of the transfer agent of the Common Stock; and 
  

 26 

 (ii) if to the Company, initially at its address set forth in the Purchase Agreement,

  
 With a copy to: 
  
 Thompson & Knight LLP 
 333 Clay Street, Suite 3300 
 Houston, Texas 77002 
 Facsimile: 832-397-8110 
 Attention: Dallas Parker 
  
 All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days
after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by facsimile; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery. 
  
 Any party hereto may change the address for receipt of communications by
giving written notice to the others. 
  
 (f)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including without limitation and without the need for an express assignment, subsequent Holders of
Transfer Restricted Securities. The Company hereby agrees to extend the benefit of this Agreement to any Holder and any such Holder may specifically enforce the provisions of this Agreement as if an original party hereto. 
  
 (g) Counterparts. This Agreement may be executed in
any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 (h) Jurisdiction. The Company agrees that any suit,
action or proceeding against the Company brought by any Holder or the Initial Purchaser, the directors, officers, employees, Affiliates and agents of any Holder or the Initial Purchaser, or by any person who controls any Holder or the Initial
Purchaser, arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in any State or U.S. federal court in The City of New York and County of New York, and waives any objection which it may now or
hereafter have to the laying of 
  

 27 

 venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in
any suit, action or proceeding. The Company hereby appoints CT Corporation as its authorized agent (the “Authorized Agent”) upon whom process may be served in any suit, action or proceeding arising out of or based upon this
Agreement or the transactions contemplated herein which may be instituted in any State or U.S. federal court in The City of New York and County of New York, by any Holder or the Initial Purchaser, the directors, officers, employees, Affiliates and
agents of any Holder or the Initial Purchaser, or by any person who controls any Holder or the Initial Purchaser, and expressly accepts the non-exclusive jurisdiction of any such court in respect of any such suit, action or proceeding. The Company
hereby represents and warrants that the Authorized Agent has accepted such appointment and has agreed to act as said agent for service of process, and the Company agrees to take any and all action, including the filing of any and all documents that
may be necessary to continue such appointment in full force and effect as aforesaid. Service of process upon the Authorized Agent shall be deemed, in every respect, effective service of process upon the Company. The Company further agrees to take
any and all action, including the execution and filing of any and all such documents and instruments, as may be necessary to continue such designation and appointment in full force and effect so long as any of the Securities shall be outstanding. To
the extent that the Company may acquire any immunity from jurisdiction of any court or from any legal process (whether through service of notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to
itself or its property, it hereby irrevocably waives such immunity in respect of this Agreement, to the fullest extent permitted by law. Notwithstanding the foregoing, any action arising out of or based upon this Agreement may be instituted by any
Holder or the Initial Purchaser, the directors, officers, employees, Affiliates and agents of any Holder or the Initial Purchaser, or by any person who controls any Holder or the Initial Purchaser, in any court of competent jurisdiction. 

 
 (i) Common Stock Held by the Company or Their
Affiliates. Whenever the consent or approval of Holders of a specified percentage of Transfer Restricted Securities is required hereunder, Transfer Restricted Securities held by the Company or its Affiliates (other than subsequent Holders if
such subsequent Holders are deemed to be Affiliates solely by reason of their holding of such Common Stock) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 
  
 (j) Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  

 28 

 (k) Governing Law. This Agreement shall be governed by and construed in accordance
with the law of the State of New York. 
  
 (l)
Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be affected or impaired thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 
  
 (m) Entire Agreement. This Agreement is intended by
the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted by the Company with respect to the Transfer Restricted Securities. This Agreement supersedes all prior agreements
and understandings between the parties with respect to such subject matter. 
  

 29 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

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

	Name:	 	William C. Rankin
	Title:	 	Executive Vice President

  

			
	BANC OF AMERICA SECURITIES LLC
		
	By:	 	 /s/ Thomas Mollison

	Name:	 	Thomas Mollison
	Title:	 	Managing Director

  
  
 [Signature Page to Resale Registration Rights Agreement]Agreement and Plan of Merger

 EXHIBIT 10.1 

  
  
  
  
  
  
 AGREEMENT AND PLAN OF MERGER 
  
  
 BETWEEN 
  
  
  
 GEOMET RESOURCES, INC. 
  
 and 
  
 GEOMET, INC. 
  
  
  
  
  
  
  
 March 31, 2005 
  
  
  
  
  
  
  
  
  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	ARTICLE I THE MERGER	  	1
				
	 	  	1.1	  	The Merger	  	1
	 	  	1.2	  	Closing Date	  	1
	 	  	1.3	  	Consummation of the Merger	  	2
	 	  	1.4	  	Effects of the Merger	  	2
	 	  	1.5	  	Certificate of Incorporation; Bylaws	  	2
	 	  	1.6	  	Directors and Officers	  	3
	 	  	1.7	  	Conversion of Securities	  	3
	 	  	1.8	  	Exchange of Certificates; Fractional Shares	  	3
	 	  	1.9	  	Taking of Necessary Action; Further Action	  	4
	 	  	1.10	  	GeoMet Stock Options	  	4
	 	  	1.11	  	Option to Purchase Additional Shares of Parent Common Stock.	  	4
	 	  	1.12	  	Dissenter’s Rights	  	5
		
	ARTICLE II REPRESENTATIONS AND WARRANTIES	  	5
				
	 	  	2.1	  	Representations and Warranties of GeoMet	  	5
	 	  	2.2	  	Representations and Warranties of Parent	  	15
		
	ARTICLE III COVENANTS OF GEOMET AND PARENT PRIOR TO THE EFFECTIVE TIME	  	21
				
	 	  	3.1	  	Conduct of Business by GeoMet Pending the Merger	  	21
	 	  	3.2	  	Conduct of Business by Parent Pending the Merger	  	23
	 	  	3.3	  	Joint Proxy Statement	  	25
	 	  	3.4	  	Meeting of Stockholders of GeoMet and Parent	  	25
		
	ARTICLE IV CONDITIONS	  	25
				
	 	  	4.1	  	Conditions to Obligation of Each Party to Effect the Merger	  	25
	 	  	4.2	  	Additional Conditions to Obligations of Parent	  	26
	 	  	4.3	  	Additional Conditions to Obligations of GeoMet	  	27
		
	ARTICLE V MISCELLANEOUS	  	27
				
	 	  	5.1	  	Termination	  	27
	 	  	5.2	  	Waiver and Amendment	  	28
	 	  	5.3	  	Nonsurvival of Representations, Warranties and Agreements	  	28
	 	  	5.4	  	Assignment	  	28
	 	  	5.5	  	Notices	  	28
	 	  	5.6	  	Governing Law	  	29
	 	  	5.7	  	Severability	  	29
	 	  	5.8	  	Counterparts	  	29
	 	  	5.9	  	Headings	  	29

  

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	 	  	 5.10
	  	Entire Agreement	  	29
	 	  	 5.11
	  	Third Party Beneficiaries	  	29
		
	 ARTICLE VI DEFINITIONS
	  	30
				
	 	  	 6.1
	  	Certain Defined Terms	  	30
	 	  	 6.2
	  	Certain Additional Defined Terms	  	33

  

 ii 

 EXHIBIT 10.1 
  
 AGREEMENT AND PLAN OF MERGER 
  

This Agreement and Plan of Merger, dated as of the 31st day of March, 2005 (the “Agreement“), is between GeoMet Resources, Inc., a Delaware corporation (“Parent“), and GeoMet, Inc., an Alabama corporation (“GeoMet“).

  
 WHEREAS, the respective Boards of Directors of Parent and
GeoMet and the Special Committee of the Board of Directors (the “Special Committee“) of GeoMet have determined that the merger of GeoMet with and into Parent is desirable and in the best interests of the stockholders of the respective
companies; 
  
 WHEREAS, the respective Boards of Directors of
Parent and GeoMet and the Special Committee of GeoMet, have approved the merger of GeoMet with and into Parent (the “Merger“), whereby each issued and outstanding share of Series B voting common stock, par value $.01 per share, of
GeoMet (“GeoMet Common Stock“) (other than Dissenting Shares, as defined herein) not owned directly or indirectly by GeoMet or Parent will be converted into the right to receive shares of common stock, par value $.001 per share, of Parent
(“Parent Common Stock“), upon the terms and subject to the conditions set forth herein; 
  
 WHEREAS, for federal income tax purposes, the parties intend that the Merger shall qualify as a reorganization within the meaning of Section 368(a)
of the Internal Revenue Code of 1986, as amended (the “Code“); 
  
 WHEREAS, the parties intend that this Agreement, as it relates to the Merger, shall constitute a “plan of reorganization” within the meaning of Treasury Regulation Section 1.368-3; and 
  
 WHEREAS, the parties hereto desire to set forth certain representations,
warranties and covenants made by each to the other as an inducement to the consummation of the Merger; 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, and intending to be legally bound hereby,
Parent and GeoMet hereby agree as follows: 
  
 ARTICLE I

  
 THE MERGER 
  
 1.1    The Merger. Subject to and in accordance
with the terms and conditions of this Agreement and in accordance with the General Corporation Law of the State of Delaware (the “DGCL“) and the Alabama Business Corporation Act (the “ABCA“), at the Effective Time (as defined in
Section 1.3) GeoMet shall be merged with and into Parent. As a result of the Merger, the separate corporate existence of GeoMet shall cease and Parent shall continue as the surviving corporation (sometimes referred to herein as the
“Surviving Corporation“). 
  
 1.2    Closing Date. The closing of the transactions contemplated by this Agreement (the “Closing“) shall take place at the offices of Thompson & Knight L.L.P., 1700 Pacific Avenue, Suite 3300,
Dallas, Texas 75201, as soon as practicable after the satisfaction or waiver of the conditions set forth in Article IV or at such other time and place and on such other date as 

 
Parent and GeoMet shall agree; provided, that the closing conditions set forth in Article IV shall have been satisfied or waived at or prior to such time.
The date on which the Closing occurs is herein referred to as the “Closing Date“. 
  
 1.3    Consummation of the Merger. As soon as practicable on the Closing Date, the parties hereto will cause the Merger to be consummated by filing with the Secretary of State of Delaware a
certificate of merger and with the Secretary of State of Alabama articles of merger in such forms as required by, and executed in accordance with, the relevant provisions of the DGCL and the ABCA. The “Effective Time“ of the Merger as that
term is used in this Agreement shall mean such time as the certificate of merger and articles of merger are duly filed with the Secretaries of State of Delaware and Alabama or at such later time (not to exceed 90 days from the date the certificate
is filed) as is specified in the certificate of merger and articles of merger pursuant to the mutual agreement of Parent and GeoMet. 
  
 1.4    Effects of the Merger. The Merger shall have the effects set forth in the applicable provisions of the DGCL and the
ABCA. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time all the properties, rights, privileges, powers and franchises of Parent and GeoMet shall vest in the Surviving Corporation, without any transfer or
assignment having occurred, and all debts, liabilities and duties of Parent and GeoMet shall attach to the Surviving Corporation, all in accordance with the DGCL and the ABCA. 
  
 1.5    Certificate of Incorporation; Bylaws 
  
 (a)    The Certificate of Incorporation
of Parent (the “Parent Certificate“), as in effect immediately prior to the Effective Time, shall be the Certificate of Incorporation of the Surviving Corporation, and thereafter shall continue to be its Certificate of Incorporation until
amended as provided therein and under the DGCL, except that such Certificate of Incorporation shall be amended as follows: 
  
 (i)    Article I shall be amended to read in its entirety as follows: 
  
 “The name of the corporation is GeoMet, Inc. (the
“Corporation”).” 
  
 (ii)    Article IV shall be amended to read in its entirety as follows: 
  
 “The aggregate number of shares of all classes of stock that the Corporation shall have the authority to issue is 10,000,000 shares
of common stock, par value of $0.001 per share.” 
  
 (iii)    Article VIII shall be amended to read in its entirety as follows: 
  
 “Intentionally omitted.” 
  
 (b)    The bylaws of Parent, as in effect immediately prior to the Effective Time, shall be the bylaws of the
Surviving Corporation and thereafter shall continue to be its bylaws until amended as provided therein and under the DGCL. 
  

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 1.6    Directors and Officers. At and after the Effective Time the directors
of the Surviving Corporation shall be W. Howard Keenan, Jr., Tomás R. LaCosta, J. Darby Seré, William C. Rankin, Philip G. Malone, Brett S. Camp and Jeffrey Smith, each to hold office in accordance with the Certificate of Incorporation
and bylaws of the Surviving Corporation, and the officers of GeoMet immediately prior to the Effective Time shall be the officers of the Surviving Corporation at and after the Effective Time, in each case until their respective successors are duly
elected or appointed and qualified. 
  
 1.7    Conversion of Securities Subject to the terms and conditions of this Agreement, at the Effective Time, by virtue of the Merger and without any action on the part of Parent or GeoMet or their stockholders:

  
 (a)    Each share of
GeoMet Common Stock issued and outstanding immediately prior to the Effective Time, other than any shares of GeoMet Common Stock to be canceled pursuant to Section 1.7(b), shall be converted into the right to receive 4,660.1243 (the
“Exchange Ratio“) shares of Parent Common Stock. 
  
 (b)    Each share of GeoMet Common Stock held in the treasury of GeoMet and each share of GeoMet Common Stock owned by Parent immediately prior to the Effective Time shall be canceled and
extinguished without any conversion thereof and no payment shall be made with respect thereto. 
  
 (c)    Each share of Parent Common Stock issued and outstanding immediately prior to the Effective Time shall remain
issued and outstanding at the Effective Time. 
  
 1.8    Exchange of Certificates; Fractional Shares 
  
 (a)    As soon as practicable after the Effective Time, each holder of a certificate that prior thereto represented
GeoMet Common Stock shall be entitled, upon surrender thereof to Parent, to receive in exchange therefor a certificate or certificates representing the number of whole shares of Parent Common Stock into which the shares of GeoMet Common Stock so
surrendered shall have been converted as aforesaid, rounded up to the nearest whole share, in such denominations and registered in such names as such holder may request. No fractional shares of Parent Common Stock shall be issued. Until so
surrendered and exchanged, each certificate that prior to the Effective Time represented GeoMet Common Stock shall represent solely the right to receive Parent Common Stock. 
  
 (b)    All shares of Parent Common Stock issued upon the surrender for exchange of
certificates that prior to the Effective Time represented shares of GeoMet Common Stock in accordance with the terms hereof shall be deemed to have been issued in full satisfaction of all rights pertaining to such shares of GeoMet Common Stock. At
and after the Effective Time, there shall be no further registration of transfers on the stock transfer books of the Surviving Corporation of GeoMet Common Stock that were outstanding immediately prior to the Effective Time. If, after the Effective
Time, certificates which prior to the Effective Time represented shares of GeoMet Common Stock are presented to the Surviving Corporation for any reason, they shall be canceled and exchanged as provided in this Article I. 
  

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 1.9    Taking of Necessary Action; Further Action. The parties hereto shall
take all such reasonable and lawful action as may be necessary or appropriate in order to effectuate the Merger as promptly as possible. If, at any time after the Effective Time, any such further action is necessary or desirable to carry out the
purposes of this Agreement and to vest the Surviving Corporation with full right, title and possession to all assets, property, rights, privileges, powers and franchises of GeoMet, such corporations shall direct their respective officers and
directors to take all such lawful and necessary action. 
  
 1.10    GeoMet Stock Options. Subject to the consummation of the Merger and effective at the Effective Time, Parent and GeoMet will take such action as is necessary to convert, effective at the Effective
Time, each option to purchase shares of GeoMet Common Stock (each, a “GeoMet Option“) that remains as of such time unexercised in whole or in part for an option to purchase Parent Common Stock (a “Parent Option“), with such
exchange to be effected as follows: 
  
 (a)    Each Parent Option shall be fully vested by virtue of the fact that vesting of the GeoMet Option being converted will be accelerated by its terms as a result of the Merger; 
  
 (b)    The number of shares of Parent
Common Stock purchasable under the Parent Option shall be equal to the number of shares of Parent Common Stock that the holder of the GeoMet Option being assumed would have received (without regard to any vesting schedule) upon consummation of the
Merger had such GeoMet Option been exercised in full immediately prior to consummation of the Merger; and 
  
 (c)    The per share exercise price of each Parent Option shall be an amount equal to the per share exercise price of
the GeoMet Option being assumed divided by the Exchange Ratio. 
  
 1.11    Option to Purchase Additional Shares of Parent Common Stock. 
  
 (a)    In connection with the Merger, Parent shall grant each of the stockholders of GeoMet other than Parent and each
of the holders of options to purchase GeoMet Common Stock an option (the “Non-dilution Option“) to purchase up to that number of shares of Parent Common Stock that when added to the number of shares of Parent Common Stock and shares of
Parent Common Stock purchasable under Parent Options to be received by such stockholder or optionholder in connection with the Merger would give such stockholder or optionholder the same ownership percentage, on a fully-diluted basis, as such
stockholder or optionholder held in GeoMet immediately prior to the Merger. The Non-dilution Option shall expire on the thirtieth (30th) day following the Closing Date. It shall be a condition to the exercise of the Non-dilution Option that
each stockholder or optionholder exercising the Non-dilution Option enter into a stockholders agreement in a form agreeable to Parent. 
  
 (b)    The exercise price for the Non-dilution Option shall be $30.57 per share. The exercise price shall be paid to
Parent in cash or by execution and delivery of a promissory note and stock pledge agreement, or a combination thereof. If any portion of the exercise price is paid by execution and delivery of a promissory note and stock pledge 

  

 4 

 
agreement, such promissory note and stock pledge agreement shall be in the forms set forth as Exhibit A and Exhibit B, respectively to this
Agreement and shall be full-recourse to the stockholder or optionholder and secured by Parent Common Stock or Parent Options equal in value to 200% of the aggregate principal amount of the note (100% in the case of optionholders). 
  
 1.12    Dissenter’s Rights. Notwithstanding
anything in this Agreement to the contrary, any shares of GeoMet Common Stock outstanding immediately prior to the Effective Time and held by a holder who has properly exercised the holder’s dissenter’s rights in accordance with
Article 13 of the ABCA or any successor provision (“Dissenting Shares“), shall not be converted into, or represent the right to receive, Parent Common Stock in accordance with Section 1.7, unless and until such holder fails to
perfect or effectively withdraws or otherwise loses his right to appraisal and payment under the ABCA. If, after the Effective Time, any such holder fails to perfect or effectively withdraws or loses his right to appraisal, such Dissenting Shares
shall thereupon be treated as if they had been converted as of the Effective Time into the right to receive Parent Common Stock in accordance with Section 1.7, without interest or dividends thereon. 
  
 ARTICLE II 
  
 REPRESENTATIONS AND WARRANTIES 
  
 2.1     Representations and Warranties of
GeoMet. GeoMet hereby represents and warrants to Parent that: 
  
 (a)     Organization and Qualification of GeoMet. GeoMet is duly organized, validly existing and in good standing under the laws of the State of Alabama and has all requisite corporate
power and authority and all necessary governmental authorizations to own, lease and operate all of its properties and assets and to carry on its business as now being conducted, except where the failure to be so organized, existing or in good
standing or to have such authority would not reasonably be expected to have a Material Adverse Effect. GeoMet is duly qualified as a foreign corporation to do business, and is in good standing, in each jurisdiction in which the property owned,
leased or operated by it or the nature of the business conducted by it makes such qualification necessary, except in such jurisdictions where the failure to be duly qualified does not and would not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No actions or proceedings to dissolve GeoMet are pending. GeoMet has heretofore delivered to Parent true and complete copies of GeoMet’s Articles of Incorporation (the “GeoMet
Articles“) and bylaws as in existence on the date hereof. 
  
 (b)     No Subsidiaries. GeoMet does not own, directly or indirectly, the capital stock or other securities of any corporation or partnership or have any direct or indirect equity or
ownership interest in any other person, other than GeoMet Operating Company Inc., an Alabama corporation and Hudson’s Hope Gas, Ltd., a Canadian national corporation, (collectively, the “GeoMet Subsidiaries“), both of which are
wholly-owned subsidiaries of GeoMet. 
  

 5 

 (c)     Capitalization. 
  
 (i)    The authorized capital stock of
GeoMet consists of 6,000 shares of GeoMet Common Stock, par value $.01 per share, all of which shares are classified as Series B Voting Common Stock. There are issued and outstanding 1,250 shares of GeoMet Common Stock. No shares of GeoMet
Common Stock are held as treasury shares. A total of 62.5 shares of GeoMet Common Stock have been reserved for issuance pursuant to the stock option plans described in Section 2.1(c)(ii). All issued shares of GeoMet Common Stock are validly
issued, fully paid and nonassessable and no holder thereof is entitled to preemptive rights. Except for the Stockholders’ Agreement dated as of December 8, 2000, GeoMet is not a party to, and is not aware of, any voting agreement, voting
trust or similar agreement or arrangement relating to any class or series of its capital stock, or any agreement or arrangement providing for registration rights with respect to any capital stock or other securities of GeoMet. 
  
 (ii)    There are outstanding GeoMet
Options to purchase an aggregate of 49.625 shares of GeoMet Common Stock under the 2001 Stock Option Plan (the “2001 Plan“). Other than as set forth in Section 2.1(c)(i) and this Section 2.1(c)(ii), there are not now, and at the
Effective Time there will not be, any (A) shares of capital stock or other equity securities of GeoMet outstanding other than GeoMet Common Stock issued pursuant to the exercise of GeoMet Options or (B) outstanding options, warrants,
scrip, rights to subscribe for, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable for, shares of any class of capital stock of GeoMet, or contracts, understandings or arrangements
to which GeoMet is a party, or by which GeoMet is or may be bound, to issue additional shares of capital stock or equity interests or options, warrants, scrip or rights to subscribe for, or securities or rights convertible into or exchangeable for,
any additional shares of capital stock or equity interests. 
  
 (iii)    Other than shares of capital stock or partnership interests of the GeoMet Subsidiaries owned by GeoMet, there are not now, and at the Effective Time there will not be, any (A) shares
of capital stock, partnership interest or other equity securities of the GeoMet Subsidiaries outstanding or (B) outstanding options, warrants, scrip, rights to subscribe for, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into or exchangeable for, shares of any class of capital stock or partnership interest of the GeoMet Subsidiaries, or contracts, understandings or arrangements to which GeoMet or any of the GeoMet Subsidiaries is a
party, or by which GeoMet or any of the GeoMet Subsidiaries is or may be bound, to issue additional shares of capital stock, partnership interest or equity interests or options, warrants, scrip or rights to subscribe for, or securities or rights
convertible into or exchangeable for, any additional shares of capital stock, partnership interest or equity interests. 
  
 (d)     Authorization and Validity of Agreement. GeoMet has all requisite corporate power and authority to
enter into this Agreement and to perform its obligations hereunder. The execution and delivery by GeoMet of this Agreement and the 

  

 6 

 
consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate action (subject only, with respect to the
Merger, to approval of this Agreement by its stockholders as provided for in Section 3.4). On or prior to the date hereof the Board of Directors (the “GeoMet Board“) and Special Committee has determined to recommend approval of the
Merger to the stockholders of GeoMet, and such determination is in effect as of the date hereof. This Agreement has been duly executed and delivered by GeoMet and is the valid and binding obligation of GeoMet, enforceable against GeoMet in
accordance with its terms. 
  
 (e)     No Approvals or Notices Required; No Conflict with Instruments to which GeoMet is a Party. Neither the execution and delivery of this Agreement nor the performance by GeoMet of its obligations
hereunder, nor the consummation of the transactions contemplated hereby by GeoMet, will (i) conflict with the GeoMet Articles or the bylaws of GeoMet; (ii) governing documents of any of the GeoMet Subsidiaries; (iii) assuming
satisfaction of the requirements set forth in clause (iv) below, violate any provision of law applicable to GeoMet or the GeoMet Subsidiaries; (iv) except for the filing of a certificate of merger and articles of merger in accordance with
the DGCL and ABCA, require any consent or approval of, or filing with or notice to, any Governmental Entity, domestic or foreign, under any provision of law applicable to GeoMet or the GeoMet Subsidiaries; or (v) require any consent, approval
or notice under, or violate, breach, be in conflict with or constitute a default (or an event that, with notice or lapse of time or both, would constitute a default) under, or permit the termination of any provision of, or result in the creation or
imposition of any lien upon any properties, assets or business of GeoMet or the GeoMet Subsidiaries under, any note, bond, indenture, mortgage, deed of trust, lease, franchise, permit, authorization, license, contract, instrument, partnership
agreement or other agreement or commitment or any order, judgment or decree to which GeoMet or the GeoMet Subsidiaries is a party or by which GeoMet or the GeoMet Subsidiaries or any of their assets or properties is bound or encumbered, except those
that have already been given, obtained or filed or that will be given, obtained or filed prior to the Closing or as would not have a Material Adverse Effect on GeoMet. 
  
 (f)     Financial Statements. GeoMet has heretofore delivered to Parent
copies of GeoMet’s consolidated balance sheet as of December 31, 2004 and the related consolidated statements of income, change in stockholders’ equity and cash flows for the three years ended December 31, 2004 (collectively, the
“Financial Statements“). The Financial Statements (including any related notes or schedules) were prepared in accordance with generally accepted accounting principles applied on a consistent basis (except as may be noted therein or in the
notes or schedules thereto). The Financial Statements fairly present the financial position of GeoMet and the GeoMet Subsidiaries as of the dates thereof and the results of operations, cash flows and changes in stockholders’ equity for the
periods then ended. As of the date hereof, neither GeoMet nor the GeoMet Subsidiaries has any liabilities, absolute or contingent, direct or indirect, that are not reflected in the Financial Statements, except as would not have a Material Adverse
Effect on GeoMet. 
  
 (g)     Conduct of Business in the Ordinary Course; Absence of Certain Changes and Events. Since December 31, 2004, except as contemplated by this Agreement, 

  

 7 

 
GeoMet and the GeoMet Subsidiaries have conducted their business only in the ordinary and usual course, and there has not been (i) any Material Adverse
Effect pertaining to GeoMet, or any condition, event or development that reasonably may be expected to result in any such Material Adverse Effect; (ii) any material change by GeoMet or the GeoMet Subsidiaries in their accounting methods,
principles or practices; (iii) any revaluation by GeoMet or the GeoMet Subsidiaries of any of their assets, including, without limitation, writing down the value of properties or assets or writing off notes or accounts receivable other than in
the ordinary course of business; (iv) any entry by GeoMet or the GeoMet Subsidiaries into any commitment or transaction material to GeoMet or the GeoMet Subsidiaries; (v) any declaration, setting aside or payment of any dividends or
distributions in respect of the GeoMet Common Stock or any redemption, purchase or other acquisition of any of its securities; (vi) any increase in indebtedness for borrowed money other than advances under the Credit Agreement in the ordinary
course; (vii) any granting of a security interest or lien on any material property or assets of GeoMet or the GeoMet Subsidiaries, other than Permitted Encumbrances; or (viii) any increase in or establishment of any bonus, insurance,
severance, deferred compensation, pension, retirement, profit sharing, stock option (including, without limitation, the granting of stock options, stock appreciation rights, performance awards or restricted stock awards), stock purchase or other
employee benefit plan or any other increase in the compensation payable or to become payable to any officers or key employees of GeoMet or the GeoMet Subsidiaries other than any increase or establishment approved by the Compensation Committee of
GeoMet and disclosed in writing to Parent. 
  
 (h)     Litigation. Except as would not have a Material Adverse Effect on GeoMet, there are no claims, actions, suits, investigations, inquiries or proceedings pending or, to the knowledge of GeoMet,
threatened against or affecting GeoMet or the GeoMet Subsidiaries or any of their properties at law or in equity, or any of their respective employee benefit plans or fiduciaries of such plans, or before or by any Governmental Entity or before any
arbitration board or panel. 
  
 (i)     Compliance with Laws and Permits. Except as would not have a Material Adverse Effect on GeoMet, GeoMet and the GeoMet Subsidiaries (i) have complied with all Applicable Laws (including without
limitation Applicable Laws relating to securities, properties, production, sales, gathering and transportation of hydrocarbons, employment practices, terms and conditions of employment, wages and hours, safety, occupational safety, product safety,
and civil rights); (ii) have obtained and hold all material permits, licenses, variances, exemptions, orders, franchises, approvals and authorizations of all Governmental Entities necessary for the lawful conduct of their business or the lawful
ownership, use and operation of their assets; (iii) have not received any written notice, which has not been dismissed or otherwise disposed of, that it has not so complied; and (iv) have not been charged or, to the best knowledge of
GeoMet, threatened with, or, to the best knowledge of GeoMet, under investigation with respect to, any violation of any Applicable Law relating to any aspect of the business of GeoMet or the GeoMet Subsidiaries. 
  

 8 

 (j)    Employees; Employee Benefit Plans. 
  
    (i)    True and
complete copies of each of GeoMet’s or any of the GeoMet’s Subsidiaries’ Plans, Benefit Programs or Agreements, related trusts, if applicable, and all amendments thereto, have been furnished to Parent. 
  
    (ii)    Except as would
not have a Material Adverse Effect on GeoMet: 
  
        (A)    None of GeoMet, the GeoMet Subsidiaries, nor any corporation, trade, business or entity under common control with GeoMet or the GeoMet Subsidiaries within the meaning of
Section 414(b), (c), (m) or (o) of the Code or Section 4001 of ERISA (a “GeoMet ERISA Affiliate“) contributes to or has an obligation to contribute to, or has at any time contributed to or had an obligation to
contribute to, a plan subject to Title IV of ERISA, including, without limitation, a multiemployer plan within the meaning of Section 3(37) of ERISA; 
  
        (B)    Each Plan and each Benefit Program or Agreement has been
administered, maintained and operated in all material respects in accordance with the terms thereof and in compliance with its governing documents and applicable law (including, where applicable, ERISA and the Code); 
  
        (C)    There is no matter pending with respect to any of the Plans before any governmental agency, and there are no actions, suits or claims pending (other than routine claims
for benefits) or to the knowledge of GeoMet, threatened against, or with respect to, any of the Plans or Benefit Programs or Agreements or their assets; 
  
        (D)    No act, omission or transaction has occurred which would result in
imposition on GeoMet, the GeoMet Subsidiaries, or any GeoMet ERISA Affiliate of breach of fiduciary duty liability damages under Section 409 of ERISA, a civil penalty assessed pursuant to subsections (c), (i) or (l) of
Section 502 of ERISA or a tax imposed pursuant to Chapter 43 of Subtitle D of the Code; and 
  
        (E)    The execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby will not require GeoMet, the GeoMet Subsidiaries or any GeoMet ERISA Affiliate to make a larger contribution to, or pay greater benefits under, any Plan, Benefit Program or Agreement than it otherwise would or
create or give rise to any additional vested rights or service credits under any Plan or Benefit Program or Agreement. 
  
    (iii)    Termination of employment of any employee of GeoMet, the GeoMet Subsidiaries or any GeoMet
ERISA Affiliate immediately after consummation of the transactions contemplated by this Agreement would not result in payments under the Plans, Benefit Programs or Agreements which, in the 

  

 9 

 
aggregate, would result in imposition of the sanctions imposed under Sections 280G and 4999 of the Code. 
  
     (iv)    Each Plan
which is an “employee welfare benefit plan,” as such term is defined in Section 3(1) of ERISA, may be unilaterally amended or terminated in its entirety without liability except as to benefits accrued thereunder prior to such
amendment or termination. 
  
     (v)    None of the employees of GeoMet, the GeoMet Subsidiaries or any GeoMet ERISA Affiliate are subject to union or collective bargaining agreements. 
  
 (k)     Severance Payments.
Except as would not have a Material Adverse Effect on GeoMet, GeoMet and the GeoMet Subsidiaries do not and will not owe a severance payment or similar obligation to any of their respective employees, officers or directors as a result of the Merger
or the transactions contemplated by this Agreement, nor will any of such persons be entitled to an increase in severance payments or other benefits as a result of the Merger or the transactions contemplated by this Agreement in the event of the
subsequent termination of their employment. 
  
 (l)     Taxes. Except as would not have a Material Adverse Effect, all Tax Returns of or relating to any Tax that are required to be filed on or before the Closing Date by or with respect to GeoMet, the
GeoMet Subsidiaries, or any other corporation that is or was a member of an affiliated group (within the meaning of Section 1504(a) of the Code) of corporations of which GeoMet or the GeoMet Subsidiaries was a member for any period ending on or
prior to the Closing Date, have been or will be duly and timely filed, and all Taxes, including interest and penalties, due and payable pursuant to such Tax Returns have been paid or adequately provided for in reserves established by GeoMet or the
GeoMet Subsidiaries. There is no material claim against GeoMet or the GeoMet Subsidiaries with respect to any Taxes, and no material assessment, deficiency or adjustment has been asserted or proposed with respect to any Tax Return of or with respect
to GeoMet or the GeoMet Subsidiaries that has not been adequately provided for in reserves established by GeoMet or the GeoMet Subsidiaries. The total amounts set up as liabilities for current and deferred Taxes in the Financial Statements have been
prepared in accordance with generally accepted accounting principles and are sufficient to cover the payment of all material Taxes, including any penalties or interest thereon and whether or not assessed or disputed, that are, or are hereafter found
to be, or to have been, due with respect to the operations of GeoMet and the GeoMet Subsidiaries through the periods covered thereby. GeoMet and the GeoMet Subsidiaries have (and as of the Closing Date will have) made all deposits (including
estimated tax payments for taxable years for which the federal income tax return is not yet due) required with respect to Taxes. No waiver or extension of any statute of limitations as to any federal, local or foreign Tax matter has been given by or
requested from GeoMet or the GeoMet Subsidiaries. Except for statutory liens for current Taxes not yet due, no liens for Taxes exist upon the assets of GeoMet or the GeoMet Subsidiaries. 
  
 (m)     Books and Records. All books, records and files of GeoMet and the
GeoMet Subsidiaries (including those pertaining to oil and gas properties, wells and other 

  

 10 

 
assets, those pertaining to the production, gathering, transportation and sale of hydrocarbons, and corporate, accounting, financial and employee records)
(i) have been prepared, assembled and maintained in accordance with usual and customary policies and procedures and (ii) fairly and accurately reflect in all material respects the ownership, use, enjoyment and operation by GeoMet and the
GeoMet Subsidiaries of their respective assets. 
  
 (n)     Governmental Regulation. Neither GeoMet nor any of the GeoMet Subsidiaries is an “investment company,” or a company “controlled” by an “investment company,” within the
meaning of the Investment Company Act of 1940, as amended. Neither GeoMet nor any of the GeoMet Subsidiaries is a “holding company,” or a “subsidiary company” of a “holding company,” or an “affiliate” of a
“holding company” or of a “subsidiary company” of a “holding company,” within the meaning of the Public Utility Holding Company Act of 1935, as amended. Neither GeoMet nor any of the GeoMet Subsidiaries has a similar
status under any similar state laws or regulations of the type regulating public utilities. 
  
 (o)     Environmental Matters. Except as would not reasonably be expected to have a Material Adverse
Effect: 
  
 (i)    GeoMet and
the GeoMet Subsidiaries have conducted their business and operated their assets, and are conducting their business and operating their assets, in material compliance with all Applicable Laws pertaining to health, safety, the environment, Hazardous
Material (as such term is defined in CERCLA), or Solid Wastes (as such term is defined in RCRA) (such Applicable Laws as they now exist or are hereafter enacted and/or amended are collectively, for purposes of this Agreement, called
“Environmental Laws“ including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986 (as amended, for purposes of this
Section, called “CERCLA“), the Resource Conservation and Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980, the Solid Waste Disposal Act Amendments of 1980, and the Hazardous and Solid Waste Amendments of 1984 (as
amended, for purposes of this Section, called “RCRA“); 
  
 (ii)    Neither GeoMet nor any of the GeoMet Subsidiaries has been notified by any Governmental Entity that any of the operations or assets of GeoMet or any of the GeoMet Subsidiaries is the
subject of any investigation or inquiry by any Governmental Entity evaluating whether any material remedial action is needed to respond to a release of any Hazardous Material or to the improper storage or disposal (including storage or disposal at
offsite locations) of any Hazardous Material; 
  
 (iii)    Neither GeoMet, the GeoMet Subsidiaries nor, to GeoMet’s knowledge, any other person has filed any notice under any federal, state or local law indicating that (i) GeoMet or any of the GeoMet
Subsidiaries is responsible for the improper release into the environment, or the improper storage or disposal, 

  

 11 

 
of any Hazardous Material, or (ii) any Hazardous Material is improperly stored or disposed of upon any property of GeoMet or any of the GeoMet
Subsidiaries; 
  
 (iv)    Neither GeoMet nor any of the GeoMet Subsidiaries has any material contingent liability in connection with (A) the release into the environment at or on any property now or previously owned or leased by any
of such persons, or (B) storage or disposal of any Hazardous Material; 
  
 (v)    In the last six years, neither GeoMet nor any of the GeoMet Subsidiaries has received any claim, complaint, notice, inquiry or request for information which remains unresolved as of the date
hereof with respect to any alleged material violation of any Environmental Law or regarding potential material liability under any Environmental Law relating to operations or conditions or any facilities or property owned, leased or operated by any
of such persons; 
  
 (vi)    No property now or previously owned, leased or operated by GeoMet or any of the GeoMet Subsidiaries is listed on the National Priorities List pursuant to CERCLA or on any similar federal or state list as sites
requiring investigation or cleanup; 
  
 (vii)    Neither GeoMet nor any of the GeoMet Subsidiaries is directly transporting, has directly transported or is directly arranging for the transportation of any Hazardous Material to any location which is listed on
the National Priorities List pursuant to CERCLA or on any similar federal or state list or which is the subject of federal, state or local enforcement actions that may lead to material claims against such company for remedial work, damage to natural
resources or personal injury, including claims under CERCLA; 
  
 (viii)    There are no sites, locations or operations at which GeoMet or any of the GeoMet Subsidiaries is currently undertaking any remedial or response action relating to any disposal or release
of any Hazardous Material, as required by Environmental Laws; and 
  
 (ix)    All underground storage tanks and solid waste disposal facilities owned or operated by GeoMet or any of the GeoMet Subsidiaries are used and operated in material compliance with
Environmental Laws. 
  
 (p)     Insurance. All material properties and material risks of GeoMet and the GeoMet Subsidiaries are covered by valid and currently effective insurance policies or binders of insurance or programs of
self-insurance in such types and amounts and with such deductible amounts as are consistent with customary practices and standards of companies engaged in businesses and operations similar to those of GeoMet and the GeoMet Subsidiaries. Neither
GeoMet nor any of the GeoMet Subsidiaries shall have any liability for retroactive price adjustments arising under such insurance coverage based on levels of actual activity during the time period of such coverage. GeoMet has provided Parent with
true and correct copies of all policies of fire, liability, casualty, life and other insurance currently in force. 
  

 12 

 (q)     Title to Oil and Gas Interests. The title of
GeoMet and the GeoMet Subsidiaries to each of GeoMet’s and the GeoMet Subsidiaries’ Oil and Gas Interests is Defensible Title. The oil and gas leases included within the Oil and Gas Interests are in full force and effect. 
  
 (r)     Oil and Gas
Operations. Except as would not have a Material Adverse Effect on GeoMet: 
  
     (i)    All wells included in the Oil and Gas Interests of GeoMet and the GeoMet Subsidiaries have been drilled and (if completed) completed, operated and produced in
accordance with generally accepted oil and gas field practices and in compliance in all material respects with Applicable Law. 
  
     (ii)    Proceeds from the sale of hydrocarbons produced from GeoMet’s and the GeoMet
Subsidiaries’ Oil and Gas Interests are being received by GeoMet or one of the GeoMet Subsidiaries, as applicable, in a timely manner and are not being held in suspense for any reason (except for amounts, individually or in the aggregate, not
in excess of $100,000 and held in suspense in the ordinary course of business). 
  
 (s)     Hydrocarbon Sales and Purchase Agreements. Except as would not have a Material Adverse Effect on
GeoMet, each of the Hydrocarbon Agreements to which GeoMet or one of the GeoMet Subsidiaries is a party is valid, binding and in full force and effect, and no party is in material breach or default of any Hydrocarbon Agreement, and no event has
occurred (including for this purpose, the execution of this Agreement or the consummation of the Merger) that with notice or lapse of time (or both) would constitute a material breach or default or permit termination, modification or acceleration
under any Hydrocarbon Agreement. 
  
 (t)     Intellectual Property. GeoMet or one of the GeoMet Subsidiaries either owns or has valid licenses or other rights to use all patents, copyrights, trademarks, software, databases, geological data,
geophysical data, engineering data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, which limitations are
customary for companies engaged in the business of the exploration and production of oil, gas, condensate and other hydrocarbons. There are no limitations contained in the agreements of the type described in the immediately preceding sentence which,
upon consummation of the Merger, will alter or impair any such rights, breach any such agreement with any third party vendor, or require payments of additional sums thereunder except as would not have a Material Adverse Effect on GeoMet. GeoMet and
the GeoMet Subsidiaries are in compliance in all material respects with such licenses and agreements and there are no pending or threatened claims, actions, suits or proceedings challenging or questioning the validity or effectiveness of any license
or agreement relating to such property or the right of GeoMet or any of the GeoMet Subsidiaries to use, copy, modify or distribute the same. 
  

 13 

 (u)     Maintenance of Machinery. All equipment and
machinery owned by GeoMet and the GeoMet Subsidiaries has had reasonable and prudent maintenance upkeep and repair since the date it was acquired thereby. 
  
 (v)     Gas Imbalances; Calls on Production; Prepayments. Except as would not have a Material Adverse
Effect, (i) Neither GeoMet nor any of the GeoMet Subsidiaries has received any deficiency payments under gas contracts for which any party has a right to take deficiency gas therefrom nor received any payments for production which are subject
to refund or recoupment out of future production; (ii) no prepayment for hydrocarbon sales has been received by GeoMet or any of the GeoMet Subsidiaries for hydrocarbons which have not been delivered as of the date hereof; and (iii) no
party has a call or preferential right to purchase production from any of GeoMet’s or any of the GeoMet Subsidiaries’ Oil and Gas Interests. 
  
 (w)     Royalties. To the knowledge of GeoMet (after due inquiry) as to wells not operated by GeoMet or
any of the GeoMet Subsidiaries, and without qualification as to knowledge as to all wells operated by GeoMet or any of the GeoMet Subsidiaries, all royalties, overriding royalties, compensatory royalties and other payments due from or in respect of
production with respect to GeoMet’s or any of the GeoMet Subsidiaries’ Oil and Gas Interests, have been or will be, prior to the Effective Time, properly and correctly paid or provided for in all material respects, except for those for
which GeoMet or any of the GeoMet Subsidiaries’ has a valid right to suspend. 
  
 (x)     Plugging and Abandonment Liabilities. Except would not have a Material Adverse Effect, neither
GeoMet nor any of the GeoMet Subsidiaries has an obligation as of the date hereof under Applicable Law to plug and abandon any well. 
  
 (y)     Contracts; No Defaults. Each agreement to which GeoMet or any GeoMet Subsidiaries is a party
involving amounts in excess of $1,000,000 (the “Contracts“) is a valid and binding agreement of GeoMet or one of the GeoMet Subsidiaries and, to the knowledge of GeoMet, the other party or parties thereto, enforceable against GeoMet or one
of the GeoMet Subsidiaries and, to the knowledge of GeoMet, such other parties in accordance with its terms. GeoMet or one of the GeoMet Subsidiaries, as applicable, has performed all of its obligations under and is not in breach of or in default
under, nor has any event occurred which (with or without the giving of notice or the passage of time or both) would constitute a default by GeoMet or one of the GeoMet Subsidiaries, as applicable, under, any of such Contracts, and neither GeoMet nor
any of the GeoMet Subsidiaries has received any notice from, or given any notice to, any other party indicating that GeoMet or one of the GeoMet Subsidiaries, as applicable, is in breach of or in default under any of such Contracts. To the knowledge
of GeoMet, no other party to any of such Contracts is in breach of or in default under such Contracts, nor has any assertion been made by GeoMet or one of the GeoMet Subsidiaries of any such breach or default. 
  
 (z)     Voting Requirements.
The affirmative vote of the holders of two-thirds of the outstanding shares of GeoMet Common Stock is the only vote of the holders of any class or series of the capital stock of GeoMet necessary to approve this Agreement and 

  

 14 

 
the Merger, notwithstanding any greater percentage that this Agreement may be conditioned on. 
  
 2.2     Representations and Warranties of Parent. Parent hereby represents and warrants to GeoMet
that: 
  
 (a)     Organization and Compliance with Law. Parent is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and
authority and all necessary governmental authorizations to own, lease and operate all of its properties and assets and to carry on its business as now being conducted, except where the failure to be so organized, existing or in good standing or to
have such authority would not reasonably be expected to have a Material Adverse Effect on Parent. 
  
 (b)     No Subsidiaries. Parent does not own, directly or indirectly, the capital stock or other
securities of any corporation or partnership or have any direct or indirect equity or ownership interest in any other person, other than its ownership in GeoMet and indirect ownership in the GeoMet Subsidiaries. 
  
 (c)     Capitalization.

  
 (i)    The authorized
capital stock of Parent consists of 6,000,000 shares of Parent Common Stock, par value $.001 per share. As of the date hereof, there are issued and outstanding 6,000,000 shares of Parent Common Stock and no shares of Parent Common Stock were held as
treasury shares. On or before the Closing Date, an aggregate of 300,000 shares of Parent Common Stock will be reserved for issuance pursuant to Parent’s 2005 Stock Option Plan, 450,603 shares of Parent Common Stock will be reserved for issuance
pursuant to the Non-dilution Options, and an additional 300,000 shares of Parent Common Stock will be reserved for issuance upon the exercise of other outstanding stock options granted. All issued shares of Parent Common Stock are validly issued,
fully paid and nonassessable and no holder thereof is entitled to preemptive rights. All shares of Parent Common Stock to be issued pursuant to the Merger, when issued in accordance with this Agreement, will be validly issued, fully paid and
nonassessable and will not violate the preemptive rights of any person. Except for the Stock Acquisition and Shareholders’ Agreement, dated December 7, 2000, as amended Parent is not a party to, and is not aware of, any voting agreement,
voting trust or similar agreement or arrangement relating to any class or series of its capital stock, or any agreement or arrangement providing for registration rights with respect to any capital stock or other securities of Parent. 
  
 (ii)    Other than as set forth in this
Section 2.2(c) and except for issuances contemplated by this Agreement in connection with the Merger, there are not now, and at the Effective Time there will not be, any (A) shares of capital stock or other equity securities of Parent
outstanding or (B) except for options referenced above, outstanding options, warrants, scrip, rights to subscribe for, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable for,
shares of any class of capital stock of 

  

 15 

 
Parent, or contracts, understandings or arrangements to which Parent is a party, or by which it is or may be bound, to issue additional shares of its capital
stock or options, warrants, scrip or rights to subscribe for, or securities or rights convertible into or exchangeable for, any additional shares of its capital stock. 
  
 (d)     Authorization and Validity of Agreement. Parent has all requisite
corporate power and authority to enter into this Agreement and to perform its obligations hereunder. The execution and delivery by Parent of this Agreement and the consummation by it of the transactions contemplated hereby have been duly authorized
by all necessary corporate action (subject only, with respect to the Merger and related amendment to the Parent Certificate, to the approval of this Agreement by the stockholders of Parent as provided for in Section 3.4). On or prior to the
date hereof, the Board of Directors of Parent has determined to recommend the adoption of the approval of the Merger to the stockholders of Parent, and such determination is in effect as of the date hereof. This Agreement has been duly executed and
delivered by Parent and is the valid and binding obligation of Parent, enforceable against Parent in accordance with its terms. 
  
 (e)     No Approvals or Notices Required; No Conflict with Instruments to which Parent is a Party. Neither
the execution and delivery of this Agreement nor the performance by Parent of its obligations hereunder, nor the consummation of the transactions contemplated hereby by Parent, will (i) conflict with the Parent Certificate or the bylaws of
Parent; (ii) assuming satisfaction of the requirements set forth in clause (iii) below, violate any provision of law applicable to Parent; (iii) except for the filing of a certificate of merger and articles of merger by GeoMet and
Parent in accordance with the DGCL and the ABCA, require any consent or approval of, or filing with or notice to, any Governmental Entity, domestic or foreign, under any provision of law applicable to Parent; or (iv) require any consent,
approval or notice under, or violate, breach, be in conflict with or constitute a default (or an event that, with notice or lapse of time or both, would constitute a default) under, or permit the termination of any provision of, or result in the
creation or imposition of any lien upon any properties, assets or business of Parent under, any note, bond, indenture, mortgage, deed of trust, lease, franchise, permit, authorization, license, contract, instrument or other agreement or commitment
or any order, judgment or decree to which Parent is a party or by which Parent or any of its assets or properties is bound or encumbered, except those that have already been given, obtained or filed or that will be given, obtained or filed prior to
the Closing or as would not have a Material Adverse Effect on Parent. 
  
 (f)     Financial Statements. Parent has heretofore delivered to GeoMet copies of Parent’s balance sheet as of December 31, 2004 and the related statements of income, change
in stockholders’ equity and cash flows for the three years ended December 31, 2004 (collectively, the “Parent Financial Statements“). The Parent Financial Statements (including any related notes or schedules) were prepared in
accordance with generally accepted accounting principles applied on a consistent basis (except as may be noted therein or in the notes or schedules thereto). The Parent Financial Statements fairly present the financial position of Parent as of the
dates thereof and the results of operations, cash flows and changes in stockholders’ equity for the periods then ended. As of the date hereof, Parent has no liabilities, absolute or contingent, direct or indirect, 

  

 16 

 
that are not reflected in the Financial Statements, except as would not have a Material Adverse Effect on Parent. 
  
 (g)     Conduct of Business in
the Ordinary Course; Absence of Certain Changes and Events. Since December 31, 2004, except as contemplated by this Agreement, Parent has conducted its business only in the ordinary and usual course, and there has not been (i) any
Material Adverse Effect pertaining to Parent, or any condition, event or development that reasonably may be expected to result in any such Material Adverse Effect; (ii) any material change by Parent in its accounting methods, principles or
practices; (iii) any revaluation by Parent of any of its assets, including, without limitation, writing down the value of properties or assets or writing off notes or accounts receivable other than in the ordinary course of business;
(iv) any entry by Parent into any commitment or transaction material to Parent; (v) any declaration, setting aside or payment of any dividends or distributions in respect of the Parent Common Stock (other than $3,000,000 that will be paid
to the Stockholders of Parent prior to the Merger) or any redemption, purchase or other acquisition of any of its securities; (vi) any increase in indebtedness for borrowed money; (vii) any granting of a security interest or lien on any
material property or assets of Parent, other than Permitted Encumbrances; or (viii) any increase in or establishment of any bonus, insurance, severance, deferred compensation, pension, retirement, profit sharing, stock option (including,
without limitation, the granting of stock options, stock appreciation rights, performance awards or restricted stock awards), stock purchase or other employee benefit plan or any other increase in the compensation payable or to become payable to any
officers or key employees of Parent other than any increase or establishment in the ordinary course and consistent with past practices or that has been disclosed in writing to GeoMet. 
  
 (h)     Litigation. Except as would not have a Material Adverse Effect on
Parent, there are no claims, actions, suits, investigations, inquiries or proceedings pending or, to the knowledge of Parent, threatened against or affecting Parent or any of its properties at law or in equity, or any of its employee benefit plans
or fiduciaries of such plans, or before or by any Governmental Entity, or before any arbitration board or panel, wherever located. 
  
 (i)     Compliance with Laws and Permits. Except as would not have a Material Adverse Effect on Parent,
Parent (i) has complied with all Applicable Laws (including without limitation Applicable Laws relating to securities, properties, production, sales, gathering and transportation of hydrocarbons, employment practices, terms and conditions of
employment, wages and hours, safety, occupational safety, product safety, and civil rights); (ii) has obtained and hold all material permits, licenses, variances, exemptions, orders, franchises, approvals and authorizations of all Governmental
Entities necessary for the lawful conduct of its business or the lawful ownership, use and operation of its assets; (iii) has not received any written notice, which has not been dismissed or otherwise disposed of, that it has not so complied;
and (iv) has not been charged or, to the best knowledge of Parent, threatened with, or, to the best knowledge of Parent, under investigation with respect to, any violation of any Applicable Law relating to any aspect of the business of Parent.

  

 17 

 (j)    Employees; Employee Benefit Plans. 
  
    (i)    True and
complete copies of each of Parent’s Plans, Benefit Programs or Agreements, related trusts, if applicable, and all amendments thereto, have been furnished to GeoMet. 
  
    (ii)    Except as would not have a Material Adverse Effect on Parent:

  
      (A)    None of Parent or any corporation, trade, business or entity under common control with Parent within the meaning of Section 414(b), (c), (m) or (o) of the Code or
Section 4001 of ERISA (a “Parent ERISA Affiliate“) contributes to or has an obligation to contribute to, or has at any time contributed to or had an obligation to contribute to, a plan subject to Title IV of ERISA, including, without
limitation, a multiemployer plan within the meaning of Section 3(37) of ERISA; 
  
      (B)    Each Plan and each Benefit Program or Agreement has been administered,
maintained and operated in all material respects in accordance with the terms thereof and in compliance with its governing documents and applicable law (including, where applicable, ERISA and the Code); 
  
      (C)    There is no matter pending with respect to any of the Plans before any governmental agency, and there are no actions, suits or claims pending (other than routine claims for benefits)
or to the knowledge of Parent, threatened against, or with respect to, any of the Plans or Benefit Programs or Agreements or their assets; 
  
      (D)    No act, omission or transaction has occurred which would result in imposition on
Parent or any Parent ERISA Affiliate of breach of fiduciary duty liability damages under Section 409 of ERISA, a civil penalty assessed pursuant to subsections (c), (i) or (l) of Section 502 of ERISA or a tax imposed pursuant to
Chapter 43 of Subtitle D of the Code; and 
  
      (E)    The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not require Parent or any Parent ERISA Affiliate to make a larger
contribution to, or pay greater benefits under, any Plan, Benefit Program or Agreement than it otherwise would or create or give rise to any additional vested rights or service credits under any Plan or Benefit Program or Agreement. 
  
    (iii)    Each Plan
which is an “employee welfare benefit plan,” as such term is defined in Section 3(1) of ERISA, may be unilaterally amended or terminated in its entirety without liability except as to benefits accrued thereunder prior to such
amendment or termination. 
  

 18 

 (iv)    None of the employees of Parent or any Parent ERISA Affiliate
are subject to union or collective bargaining agreements. 
  
 (k)    Taxes. Except as would not have a Material Adverse Effect, all Tax Returns of or relating to any Tax that are required to be filed on or before the Closing Date by or with respect to
Parent, or any other corporation that is or was a member of an affiliated group (within the meaning of Section 1504(a) of the Code) of corporations of which Parent was a member for any period ending on or prior to the Closing Date, have been or
will be duly and timely filed, and all Taxes, including interest and penalties, due and payable pursuant to such Tax Returns have been paid or adequately provided for in reserves established by Parent. There is no material claim against Parent with
respect to any Taxes, and no material assessment, deficiency or adjustment has been asserted or proposed with respect to any Tax Return of or with respect to Parent that has not been adequately provided for in reserves established by Parent. The
total amounts set up as liabilities for current and deferred Taxes in the Parent Financial Statements have been prepared in accordance with generally accepted accounting principles and are sufficient to cover the payment of all material Taxes,
including any penalties or interest thereon and whether or not assessed or disputed, that are, or are hereafter found to be, or to have been, due with respect to the operations of Parent through the periods covered thereby. Parent has (and as of the
Closing Date will have) made all deposits (including estimated tax payments for taxable years for which the federal income tax return is not yet due) required with respect to Taxes. No waiver or extension of any statute of limitations as to any
federal, local or foreign Tax matter has been given by or requested from Parent. Except for statutory liens for current Taxes not yet due, no liens for Taxes exist upon the assets of Parent. 
  
 (l)    Books and Records. All
books, records and files of Parent (including those pertaining to the corporate, accounting, financial and employee records) have been prepared, assembled and maintained in accordance with usual and customary policies and procedures. 
  
 (m)    Governmental Regulation.
Parent is not an “investment company,” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended. Parent is not a “holding company,” or a
“subsidiary company” of a “holding company,” or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company,” within the meaning of the Public Utility Holding
Company Act of 1935, as amended. Parent does not have a similar status under any similar state laws or regulations of the type regulating public utilities. 
  
 (n)    Environmental Matters. Except as would not reasonably be expected to have a Material Adverse Effect:

  
 (i)    Parent has
conducted its business and operated its assets, and is conducting its business and operating its assets, in material compliance with all Environmental Laws; 
  
 (ii)    Parent has not been notified by any Governmental Entity that any of the operations or assets of Parent is the
subject of any investigation or inquiry 

  

 19 

 
by any Governmental Entity evaluating whether any material remedial action is needed to respond to a release of any Hazardous Material or to the improper
storage or disposal (including storage or disposal at offsite locations) of any Hazardous Material; 
  
 (iii)    Neither Parent nor, to Parent’s knowledge, any other person has filed any notice under any federal,
state or local law indicating that (i) Parent is responsible for the improper release into the environment, or the improper storage or disposal, of any Hazardous Material, or (ii) any Hazardous Material is improperly stored or disposed of
upon any property of Parent; 
  
 (iv)    Parent does not have any material contingent liability in connection with (A) the release into the environment at or on any property now or previously owned or leased by any of such persons, or
(B) storage or disposal of any Hazardous Material; 
  
 (v)    In the last six years, Parent has not received any claim, complaint, notice, inquiry or request for information which remains unresolved as of the date hereof with respect to any alleged material violation of any
Environmental Law or regarding potential material liability under any Environmental Law relating to operations or conditions or any facilities or property owned, leased or operated by any of such persons; 
  
 (vi)    No property now or previously
owned, leased or operated by Parent is listed on the National Priorities List pursuant to CERCLA or on any similar federal or state list as sites requiring investigation or cleanup; 
  
 (vii)    Parent is not directly transporting, has not directly transported and is not
directly arranging for the transportation of any Hazardous Material to any location which is listed on the National Priorities List pursuant to CERCLA or on any similar federal or state list or which is the subject of federal, state or local
enforcement actions that may lead to material claims against such company for remedial work, damage to natural resources or personal injury, including claims under CERCLA; 
  
 (viii)    There are no sites, locations or operations at which Parent is currently
undertaking any remedial or response action relating to any disposal or release of any Hazardous Material, as required by Environmental Laws; and 
  
 (ix)    All underground storage tanks and solid waste disposal facilities owned or operated by Parent are used and
operated in material compliance with Environmental Laws. 
  
 (o)    Insurance. All material properties and material risks of Parent are covered by valid and currently effective insurance policies or binders of insurance or programs of self-insurance
in such types and amounts and with such deductible amounts as are consistent with customary practices and standards of companies engaged in businesses and operations similar to those of Parent. Parent shall not have any liability for 

  

 20 

 
retroactive price adjustments arising under such insurance coverage based on levels of actual activity during the time period of such coverage. Parent has
provided GeoMet with true and correct copies of all policies of fire, liability, casualty, life and other insurance currently in force. 
  
 (p)    Oil and Gas Interests and Operations. Parent has no Oil and Gas Interests and conducts no oil and gas
operations. 
  
 (q)    Contracts; No Defaults. Each agreement to which Parent is a party involving amounts in excess of $1,000,000 (the “Parent Contracts“) is a valid and binding agreement of Parent and, to the
knowledge of Parent, the other party or parties thereto, enforceable against Parent and, to the knowledge of Parent, such other parties in accordance with its terms. Parent has performed all of its obligations under and is not in breach of or in
default under, nor has any event occurred which (with or without the giving of notice or the passage of time or both) would constitute a default by Parent under, any of such Parent Contracts, and Parent has not received any notice from, or given any
notice to, any other party indicating that Parent is in breach of or in default under any of such Parent Contracts. To the knowledge of Parent, no other party to any of such Parent Contracts is in breach of or in default under such Parent Contracts,
nor has any assertion been made by Parent of any such breach or default. 
  
 (r)    Voting Requirements. The affirmative vote of the holders of a majority of the shares of Parent Common Stock present at the Parent special stockholders’ meeting convened in
accordance with Section 3.4 and entitled to vote thereon is the only vote of the holders of any class or series of the capital stock of Parent necessary to approve this Agreement. 
  
 ARTICLE III 
  
 COVENANTS OF GEOMET AND PARENT PRIOR TO THE EFFECTIVE TIME 
  

3.1     Conduct of Business by GeoMet Pending the Merger. GeoMet covenants and agrees that, from the date of this
Agreement until the Effective Time, unless Parent shall otherwise agree in writing: 
  
 (a)    the business of GeoMet and the GeoMet Subsidiaries shall be conducted only in, and GeoMet shall not and shall
not permit the GeoMet Subsidiaries to take any action except in, the ordinary course of business and consistent with past practice; 
  
 (b)    GeoMet shall not and shall not permit the GeoMet Subsidiaries to directly or indirectly do any of the
following: (i) issue, sell, pledge, dispose of or encumber, (A) any capital stock of GeoMet or the GeoMet Subsidiaries except upon the exercise of GeoMet Options or (B) other than in the ordinary course of business and consistent with
past practice and not relating to the borrowing of money, any assets of GeoMet or the GeoMet Subsidiaries; (ii) amend or propose to amend the GeoMet Articles or the bylaws of GeoMet or the governing documents of the GeoMet Subsidiaries;
(iii) split, combine or reclassify any outstanding capital stock, or declare, set aside or pay any dividend payable in cash, stock, property or otherwise with respect to GeoMet’s or any of the 

  

 21 

 
GeoMet Subsidiaries’ capital stock, partnership interest or other securities or equity equivalents, whether now or hereafter outstanding;
(iv) redeem, purchase or acquire or offer to acquire, any of its capital stock or other securities or equity equivalents; (v) except in the ordinary course of business and consistent with past practice, enter into any contract, agreement,
commitment or arrangement with respect to any of the matters set forth in this Section 3.1(b); (vi) enter into, adopt or (except as may be required by law) amend or terminate any bonus, profit sharing, compensation, severance, termination,
stock option, stock appreciation right, restricted stock, performance unit, stock equivalent, stock purchase, pension, retirement, deferred compensation, employment, severance or other employee benefit agreement, trust, plan, fund or other
arrangement for the benefit or welfare of any director, officer or employee; (vii) except for normal increases in the ordinary course of business consistent with past practice that, in the aggregate, do not result in a material increase in
benefits or compensation expense, increase in any manner the compensation or fringe benefits of any director, officer or employee; or (viii) pay to any director, officer or employee any benefit not required by any employee benefit agreement,
trust, plan, fund or other arrangement as in effect on the date hereof; 
  
 (c)    GeoMet shall use its reasonable efforts (i) to preserve intact the business organization of GeoMet and the GeoMet Subsidiaries; (ii) to maintain in effect any authorizations or
similar rights of GeoMet and the GeoMet Subsidiaries; (iii) to keep available the services of its and the GeoMet Subsidiaries’ current officers and key employees; (iv) to preserve the goodwill of those having business relationships
with it and the GeoMet Subsidiaries; (v) to maintain and keep its and the GeoMet Subsidiaries’ properties in as good a repair and condition as presently exists, except for deterioration due to ordinary wear and tear and damage due to
casualty; and (vi) to maintain in full force and effect insurance comparable in amount and scope of coverage to that currently maintained by it and the GeoMet Subsidiaries; 
  
 (d)    Neither GeoMet nor the GeoMet Subsidiaries shall make or agree to make new
capital expenditures that in the aggregate exceed $500,000 unless such capital expenditures have been included in the 2005 annual budget that has been approved by the GeoMet Board; 
  
 (e)    GeoMet and the GeoMet Subsidiaries shall perform their respective obligations
under any contracts and agreements to which they are a party or to which their assets are subject; 
  
 (f)    Neither GeoMet nor the GeoMet Subsidiaries shall acquire, sell, lease, transfer, or otherwise dispose of,
directly or indirectly, any assets outside the ordinary course of business consistent with past practice or stock, equity interests or any assets that in the aggregate are material to GeoMet or the GeoMet Subsidiaries; 
  
 (g)    Neither GeoMet nor the GeoMet
Subsidiaries shall acquire (by merger, consolidation, or acquisition of stock or assets or otherwise) any corporation, partnership, or other business organization or division thereof; 
  

 22 

 (h)    Neither GeoMet nor the GeoMet Subsidiaries shall amend any Tax
Return or make any Tax election or settle or compromise any federal, state, local, or foreign Tax liability; 
  
 (i)    Neither GeoMet nor the GeoMet Subsidiaries shall pay, discharge, or satisfy any claims, liabilities, or
obligations (whether accrued, absolute, contingent, unliquidated, or otherwise, and whether asserted or unasserted), other than the payment, discharge, or satisfaction in the ordinary course of business consistent with past practice, or in
accordance with their terms, of liabilities reflected or reserved against in the Financial Statements; 
  
 (j)    Neither GeoMet, nor the GeoMet Subsidiaries shall enter into any lease, contract, agreement, commitment,
arrangement, or transaction outside the ordinary course of business consistent with past practice; 
  
 (k)    Neither GeoMet, nor the GeoMet Subsidiaries shall amend, modify, or change in any material respect any existing
lease, contract, or agreement, other than in the ordinary course of business consistent with past practice; 
  
 (l)    Neither GeoMet, nor the GeoMet Subsidiaries shall waive, release, grant, or transfer any rights of value, other
than in the ordinary course of business consistent with past practice; 
  
 (m)    Neither GeoMet, nor the GeoMet Subsidiaries shall take any action that would, or that reasonably could be expected to, result in any of the representations and warranties set forth in this
Agreement becoming untrue or any of the conditions to the Merger set forth in Article IV not being satisfied. GeoMet promptly shall advise Parent orally and in writing of any change or event having, or which, insofar as reasonably can be foreseen,
would have, a Material Adverse Effect on GeoMet; and 
  
 (n)    Neither GeoMet, nor the GeoMet Subsidiaries shall authorize or propose, or agree in writing or otherwise to take, any of the actions described in this Section. 
  
 3.2     Conduct of Business by Parent Pending the
Merger. Parent covenants and agrees that, from the date of this Agreement until the Effective Time, unless the Special Committee shall otherwise agree in writing: 
  
 (a)    the business of Parent shall be conducted only in, and Parent shall not take any
action except in, the ordinary course of business and consistent with past practice; 
  
 (b)    Parent shall not directly or indirectly do any of the following: (i) issue, sell, pledge, dispose of or
encumber, (A) any capital stock of Parent except upon the exercise of Parent Options or (B) other than in the ordinary course of business and consistent with past practice and not relating to the borrowing of money, any assets of Parent;
(ii) amend or propose to amend the Parent Certificate or the bylaws of Parent; (iii) except for $3,000,000 that will be paid to the stockholders of Parent as a dividend prior to the Merger, split, combine or reclassify any outstanding
capital stock, or declare, set aside or pay any dividend payable in cash, stock, property or otherwise with respect to 

  

 23 

 
its capital stock or other securities or equity equivalents, whether now or hereafter outstanding; (iv) redeem, purchase or acquire or offer to acquire,
any of its capital stock or other securities or equity equivalents; (v) except in the ordinary course of business and consistent with past practice, enter into any contract, agreement, commitment or arrangement with respect to any of the
matters set forth in this Section 3.2(b); (vi) except for the adoption of the 2005 Stock Option Plan and the issuance of Parent Options and Non-dilution Options in connection with the Merger, enter into, adopt or (except as may be required
by law) amend or terminate any bonus, profit sharing, compensation, severance, termination, stock option, stock appreciation right, restricted stock, performance unit, stock equivalent, stock purchase, pension, retirement, deferred compensation,
employment, severance or other employee benefit agreement, trust, plan, fund or other arrangement for the benefit or welfare of any director, officer or employee; (vii) except for normal increases in the ordinary course of business consistent
with past practice that, in the aggregate, do not result in a material increase in benefits or compensation expense, increase in any manner the compensation or fringe benefits of any director, officer or employee; or (viii) pay to any director,
officer or employee any benefit not required by any employee benefit agreement, trust, plan, fund or other arrangement as in effect on the date hereof; 
  
 (c)    Parent shall use its reasonable efforts (i) to preserve intact the business organization of Parent;
(ii) to maintain in effect any authorizations or similar rights of Parent; (iii) to keep available the services of its current officers and key employees; (iv) to preserve the goodwill of those having business relationships with it;
(v) to maintain and keep its properties in as good a repair and condition as presently exists, except for deterioration due to ordinary wear and tear and damage due to casualty; and (vi) to maintain in full force and effect insurance
comparable in amount and scope of coverage to that currently maintained by it; 
  
 (d)    Parent shall not make or agree to make new capital expenditures that in the aggregate exceed $50,000; 
  

(e)    Parent shall perform its respective obligations under any contracts and agreements to which it is a party or
to which its assets are subject; 
  
 (f)    Parent shall not acquire, sell, lease, transfer, or otherwise dispose of, directly or indirectly, any assets outside the ordinary course of business consistent with past practice or stock, equity interests or any
assets that in the aggregate are material to Parent; 
  
 (g)    Other than the Merger, Parent shall not acquire (by merger, consolidation, or acquisition of stock or assets or otherwise) any corporation, partnership, or other business organization or division thereof;

  
 (h)    Parent shall not
amend any Tax Return or make any Tax election or settle or compromise any federal, state, local, or foreign Tax liability; 
  
 (i)    Parent shall not pay, discharge, or satisfy any claims, liabilities, or obligations (whether accrued, absolute,
contingent, unliquidated, or otherwise, and 

  

 24 

 
whether asserted or unasserted), other than the payment, discharge, or satisfaction in the ordinary course of business consistent with past practice, or in
accordance with their terms, of liabilities reflected or reserved against in the Parent Financial Statements; 
  
 (j)    Parent shall not enter into any lease, contract, agreement, commitment, arrangement, or transaction outside the
ordinary course of business consistent with past practice; 
  
 (k)    Parent shall not amend, modify, or change in any material respect any existing lease, contract, or agreement, other than in the ordinary course of business consistent with past practice;

  
 (l)    Parent shall not
waive, release, grant, or transfer any rights of value, other than in the ordinary course of business consistent with past practice; 
  
 (m)    Parent shall not take any action that would, or that reasonably could be expected to, result in any of the
representations and warranties set forth in this Agreement becoming untrue or any of the conditions to the Merger set forth in Article IV not being satisfied. Parent promptly shall advise GeoMet orally and in writing of any change or event having,
or which, insofar as reasonably can be foreseen, would have, a Material Adverse Effect on Parent; and 
  
 (n)    Parent shall not authorize or propose, or agree in writing or otherwise to take, any of the actions described
in this Section. 
  
 3.3     Joint
Proxy Statement. Promptly after the date of this Agreement, GeoMet shall cooperate with Parent in preparing a joint proxy statement (the “Proxy Statement“) with respect to the meetings or actions by written consent of stockholders of
GeoMet and Parent referred to in Section 3.4. The Proxy Statement shall contain the recommendation of the GeoMet Board and the Special Committee that the stockholders of GeoMet vote to approve and adopt this Agreement. 
  
 3.4     Meeting of Stockholders of GeoMet and
Parent. GeoMet and Parent shall promptly take all action reasonably necessary in accordance with the DGCL and the ABCA and the GeoMet Articles, the Parent Certificate and GeoMet’s and Parent’s bylaws to convene a meeting of its
stockholders to consider and vote upon the adoption and approval of this Agreement (or to submit such action to stockholders by written consent in lieu of a meeting). 
  
 ARTICLE IV 
  
 CONDITIONS 
  
 4.1     Conditions to Obligation of Each Party to Effect the Merger. The respective obligations of each party to effect
the Merger shall be subject to the fulfillment at or prior to the Closing Date of the following conditions: 
  
 (a)    This Agreement shall have been approved by the requisite vote of the stockholders of Parent and GeoMet, as may
be required by this Agreement, by Applicable Law, and by any applicable provisions of the GeoMet Articles, the Parent 

  

 25 

 
Certificate and GeoMet’s and Parent’s bylaws and in addition to any such requirements, the Merger shall have been approved by holders of two-thirds
of the GeoMet Common Stock not held by Parent; 
  
 (b)    Other than suits to enforce this Agreement, there shall not be (i) any effective injunction, writ or temporary restraining order or any other order of any nature issued by a court or Governmental Entity of
competent jurisdiction directing that any aspect of the Merger not be consummated, or (ii) any action, suit or proceeding pending or threatened in writing in which it is or may be sought to prohibit, substantially delay or rescind this
Agreement or any aspect of the Merger or to obtain an award of damages in connection with the Merger and which, in the good faith judgment of any of the parties, is material; and 
  
 (c)    All approvals of private persons or corporations, (i) the granting of which
is necessary for the consummation of the Merger or the transactions contemplated in connection therewith and (ii) the non-receipt of which would reasonably be expected to have a Material Adverse Effect on Parent or the Surviving Corporation
after the consummation of the Merger, shall have been obtained, including, without limitation, any consents required under the Credit Agreement, the Master Equipment Lease Agreement No. 36137 with Bank of America Leasing & Capital
dated October 29, 2003 and the ISDA Master Agreement with BNP Paribas dated November 21, 2003. 
  
 4.2     Additional Conditions to Obligations of Parent. The obligation of Parent to effect the Merger is, at the option of
Parent, also subject to the fulfillment at or prior to the Closing Date (unless an earlier date is provided herein) of the following conditions: 
  
 (a)    The representations and warranties of GeoMet contained in this Agreement shall be accurate in all material
respects as of the date of this Agreement and (except to the extent such representations and warranties speak specifically as of an earlier date) as of the Closing Date as though such representations and warranties had been made at and as of that
time, all of the terms, covenants and conditions of this Agreement to be complied with and performed by GeoMet or the GeoMet Subsidiaries on or before the Closing Date shall have been duly complied with and performed in all material respects, and a
certificate to the foregoing effect dated the Closing Date and signed by the president of GeoMet shall have been delivered to Parent; 
  
 (b)    Since the date of this Agreement, no Material Adverse Effect pertaining to GeoMet shall have occurred, and
neither GeoMet, nor the GeoMet Subsidiaries shall have suffered any damage, destruction or loss materially and adversely affecting the properties or business of GeoMet and the GeoMet Subsidiaries as a whole, and Parent shall have received a
certificate signed by the president of GeoMet dated the Closing Date to such effect; 
  
 (c)    The persons who will be the stockholders of the Surviving Corporation immediately following the Merger shall
have entered into a stockholders’ agreement in a form agreeable to Parent; 
  

 26 

 (d)    Each of the stockholders of GeoMet shall have delivered a
certificate to the Parent pursuant to which each such stockholder represents and warrants that such stockholder is (and immediately prior to the Effective Time will be) the sole record and beneficial owner of the shares of GeoMet Common Stock owned
by such stockholder and that such shares are free and clear of all Encumbrances, other than restrictions on transfer that may be imposed by federal or state securities laws and under the Stockholders’ Agreement dated as of December 8, 2000
by and among GeoMet and its stockholders; and 
  
 (e)    The GeoMet Board or committee of the GeoMet Board with authority to administer the 2001 Stock Option Plan shall have taken action such that the GeoMet Options shall have converted into Parent Options in accordance
with Section 1.10. 
  
 4.3     Additional Conditions to Obligations of GeoMet. The obligation of GeoMet to effect the Merger is, at the option of GeoMet (as determined by the Special Committee), also subject to the fulfillment at
or prior to the Closing Date of the following condition: 
  
 (a)    The representations and warranties of Parent contained in this Agreement shall be accurate in all material respects as of the date of this Agreement and (except to the extent such
representations and warranties speak specifically as of an earlier date) as of the Closing Date as though such representations and warranties had been made at and as of that time; all the terms, covenants and conditions of this Agreement to be
complied with and performed by Parent on or before the Closing Date shall have been duly complied with and performed in all material respects, and a certificate to the foregoing effect dated the Closing Date and signed by the president of Parent
shall have been delivered to GeoMet; and 
  
 (b)    Parent shall have agreed to cancel the $40,000,000 principal amount of subordinated debt owed by GeoMet to Parent. 
  
 ARTICLE V 
  
 MISCELLANEOUS 
  
 5.1     Termination . This Agreement may be terminated and the Merger and the other transactions contemplated herein may be abandoned at any time prior to the Effective Time, whether
prior to or after approval by the stockholders of Parent or the stockholders of GeoMet: 
  
 (a)    by mutual consent of Parent and GeoMet; 
  
 (b)    by either Parent or GeoMet if the Merger has not been effected on or before
June 30, 2005; 
  
 (c)    by Parent if any of the conditions set forth in Sections 4.2 is not satisfied; 
  
 (d)    by GeoMet if any of the conditions set forth in Section 4.3 is not satisfied; or 
  

 27 

 (e)    by either Parent or GeoMet if a final, unappealable order of a
judicial or administrative authority of competent jurisdiction to restrain, enjoin or otherwise prevent a consummation of this Agreement or the transactions contemplated in connection herewith shall have been entered. 
  
 5.2     Waiver and Amendment. Any provision
of this Agreement may be waived at any time by the party that is, or whose stockholders are, entitled to the benefits thereof. This Agreement may not be amended or supplemented at any time, except by an instrument in writing signed on behalf of each
party hereto, provided that after this Agreement has been approved and adopted by the stockholders of Parent and GeoMet, this Agreement may be amended only as may be permitted by applicable provisions of the DGCL and ABCA. The waiver by any party
hereto of any condition or of a breach of another provision of this Agreement shall not operate or be construed as a waiver of any other condition or subsequent breach. The waiver by any party hereto of any of the conditions precedent to its
obligations under this Agreement shall not preclude it from seeking redress for breach of this Agreement other than with respect to the condition so waived. 
  
 5.3     Nonsurvival of Representations, Warranties and Agreements. None of the representations, warranties, covenants or
agreements in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Effective Time, except for the terms of Article I, and the representations and warranties set forth in Section 2.2(a), (c), (d), (e),
(f), (g), (h), (i), (k) and (q) which shall survive the Effective Time for a period of one year solely for the benefit of the stockholders of GeoMet other than the stockholders of Parent prior to the Merger. 
  
 5.4     Assignment. This Agreement shall
inure to the benefit of and will be binding upon the parties hereto and their respective legal representatives, successors and permitted assigns. Except as set forth in this Agreement, this Agreement shall not be assignable by the parties hereto.

  
 5.5     Notices. All notices,
requests, demands, claims and other communications which are required to be or may be given under this Agreement shall be in writing and shall be deemed to have been duly given if (i) delivered in person or by expedited courier service,
(ii) sent by telecopy or facsimile transmission, answer back requested, or (iii) mailed, certified first class mail, postage prepaid, return receipt requested, to the parties hereto at the following addresses: 
  

					
	 	 	if to GeoMet:	  	 GeoMet, Inc.
 5336 Stadium Trace Parkway, Suite 206
 Birmingham, AL 35244
 Attention: J. Neil Walden, Jr.

			
	 	 	with a copy to:	  	 Burr & Foreman
 420 North 20th Street, Suite 3100
 Birmingham, Alabama 35203
 Attention:
Edward R. Christian

  

 28 

					
	 	 	 if to Parent:
	  	 GeoMet Resources, Inc.
 909 Fannin, Suite 3208
 Houston, Texas 77010
 Attention: J. Darby Seré

			
	 	 	with a copy to:	  	 Thompson & Knight L.L.P.
 1700 Pacific Avenue, Suite 3300
 Dallas, Texas 75201
 Attention: Jeffrey A. Zlotky

  
 or to such other address as any party
shall have furnished to the other by notice given in accordance with this Section 5.5. Such notices shall be effective, (i) if delivered in person or by expedited courier service, upon actual receipt by the intended recipient, (ii) if
sent by telecopy or facsimile transmission, when the answer back is received, or (iii) if mailed, upon the earlier of five days after deposit in the mail and the date of delivery as shown by the return receipt therefor. 
  
 5.6     Governing Law. This Agreement shall
be governed by and construed in accordance with the substantive law of the State of Delaware without giving effect to the principles of conflicts of law thereof. 
  
 5.7     Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provision, covenants and restrictions of this Agreement shall continue in full force and effect and shall in no way be affected, impaired or
invalidated. 
  
 5.8     Counterparts. This Agreement may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one and the same agreement. 
  
 5.9     Headings . The Section headings
herein are for convenience only and shall not affect the construction hereof. 
  
 5.10   Entire Agreement. This Agreement constitutes the entire agreement and supersedes all other prior agreements and understandings, both oral and written, among the parties or any of them,
with respect to the subject matter hereof. 
  
 5.11   Third Party Beneficiaries. Parent acknowledges and agrees that the shareholders of GeoMet, other than the current stockholders of Parent, are relying upon the representations and warranties of Parent contained
Section 2.2(a), (c), (d), (e), (f), (g), (h), (i), (k) and (q) and that consequently such stockholders shall be deemed third party beneficiaries of such representations, entitled to enforce any breach of such representations and
warranties against Parent. 
  

 29 

 ARTICLE VI 
  

DEFINITIONS 
  
 6.1     Certain Defined Terms. As used in this Agreement, each of the following terms has the meaning given it in this
Article: 
  
 “Applicable Law” means any
statute, law, rule, or regulation or any judgment, order, writ, injunction, or decree of any Governmental Entity to which a specified person or property is subject. 
  
 “Benefit Program or Agreement” means each personnel policy, stock option plan, collective
bargaining agreement, bonus plan or arrangement, incentive award plan or arrangement, vacation policy, severance pay plan, policy or agreement, deferred compensation agreement or arrangement, executive compensation or supplemental income
arrangement, consulting agreement, employment agreement and each other employee benefit plan, agreement, arrangement, program, practice or understanding that is not a Plan. 
  
 “Defensible Title” means, as to each Oil and Gas Interest, such title that: 
  
 (i)    Is defensible by GeoMet or one of
the GeoMet Subsidiaries, as applicable, against the claims of all other persons; and 
  
 (ii)    Entitles GeoMet or one of the GeoMet Subsidiaries, as applicable, to receive not less than the net revenue
interest for such Oil and Gas Interest; and 
  
 (iii)    Obligates GeoMet or one of the GeoMet Subsidiaries, as applicable, to pay costs and expenses relating to such Oil and Gas Interest in an amount not greater than the “Working Interest” with respect to
such Oil and Gas Interest; and 
  
 (iv)    Except for Permitted Encumbrances, is free and clear of any Encumbrance. 
  
 “Encumbrances” means liens, charges, pledges, options, mortgages, deeds of trust, security interests, claims, restrictions
(whether on voting, sale, transfer, disposition, or otherwise), easements, and other encumbrances of every type and description, whether imposed by law, agreement, understanding, or otherwise. 
  
 “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended. 
  
 “Governmental Entity” means any court or tribunal in any jurisdiction (domestic or foreign) or any public, governmental, or regulatory body, agency, department, commission, board, bureau, or other authority or instrumentality
(domestic or foreign). 
  

 30 

 “Hydrocarbon Agreement” means any of the following: 
  
 (i)    “Hydrocarbon Purchase
Agreement,” which means any sales agreement, purchase contract or marketing agreement that is currently in effect and under which GeoMet or one of the GeoMet Subsidiaries is a buyer of hydrocarbons for resale (other than purchase agreements
entered into in the ordinary course of business with a term of three months or less, terminable without penalty on 30 days’ notice or less, which provide for a price not greater than the market value price that would be paid pursuant to an
arm’s-length contract for the same term with an unaffiliated third party seller, and which do not obligate the purchaser to take any specified quantity of hydrocarbons or to pay for any deficiencies in quantities of hydrocarbons not taken).

  
 (ii)    “Hydrocarbon
Sales Agreement,” which means any sales agreement, purchase contract or marketing agreement that is currently in effect and under which any of GeoMet or the GeoMet Subsidiaries is a seller of hydrocarbons (other than “spot” sales
agreements entered into in the ordinary course of business with a term of three months or less, terminable without penalty on 30 days’ notice or less, and which provide for a price not less than the market value price that would be received
pursuant to an arms’-length contract for the same term with an unaffiliated third party purchaser). 
  
 (iii)    “Hydrocarbon Support Agreement,” which means any gathering, transportation, treatment, compression,
processing or similar agreement that is currently in effect and to which GeoMet or one of the GeoMet Subsidiaries is a party (other than gathering, transportation, treatment, compression, processing and similar agreements that have been entered into
in the ordinary course of business and which contain market value prices and terms of the type found in gathering, transportation, treatment, compression, processing and similar agreements entered into between unaffiliated parties in
arm’s-length transactions). 
  
 “Material Adverse Effect” means any change, development, or effect (individually or in the aggregate) which is, or would reasonably likely be, materially adverse (i) to the business, assets, results of operations, condition
(financial or otherwise), or prospects of (A) GeoMet and the GeoMet Subsidiaries as a whole, or (B) Parent, such that GeoMet and the GeoMet Subsidiaries as a whole or Parent, as applicable has or would suffer a diminution in value of 10%
or more, or (ii) to the ability of GeoMet or Parent, as applicable, to perform on a timely basis any material obligation of GeoMet or Parent, respectively, under this Agreement or any agreement, instrument, or document entered into or delivered
in connection herewith. 
  
 “Oil and Gas
Interest(s)” means (a) direct and indirect interests in and rights with respect to oil, gas, mineral and related properties and assets of any kind and nature, direct or indirect, including working, royalty and overriding royalty interests,
production payments, operating rights, net profits interests, other non-working interests and non-operating interests; (b) interests in and rights with respect to hydrocarbons and other minerals or revenues therefrom and contracts in connection
therewith and claims and rights thereto (including oil and gas leases, operating agreements, unitization and pooling 

  

 31 

 
agreements and orders, division orders, transfer orders, mineral deeds, royalty deeds, oil and gas sales, exchange and processing contracts and agreements
and, in each case, interests thereunder), surface interests, fee interests, reversionary interests, reservations and concessions; (c) easements, rights of way, licenses, permits, leases, and other interests associated with, appurtenant to, or
necessary for the operation of any of the foregoing; and (d) interests in equipment and machinery (including well equipment and machinery), oil and gas production, gathering, transmission, compression, treating, processing and storage
facilities (including tanks, tank batteries, pipelines and gathering systems), pumps, water plants, electric plants, gasoline and gas processing plants, refineries and other tangible personal property and fixtures associated with, appurtenant to, or
necessary for the operation of any of the foregoing. 
  
 “Permitted Encumbrances” means (i) Encumbrances for inchoate mechanics’ and materialmen’s liens for construction in progress and workmen’s, repairmen’s, warehousemen’s and carriers’ liens arising
in the ordinary course of business, (ii) requirements for consent to assignment and other encumbrances of a similar nature which are part of contracts customarily used in the oil and gas industry, (iii) Encumbrances for Taxes not yet
payable, (iv) Encumbrances and imperfections of title, including servitudes, permits, surface leases and other rights in respect to surface operations, pipelines, grazing, logging, canals, ditches, reservoirs or the like; conditions, covenants
or other restrictions; easements for streets, alleys, highways, pipelines, power lines, telephone lines and railways, and other assessments and rights-of-way, and all other liens, in each case listed in this subsection (iv) that (A) do not
arise in connection with or secure indebtedness for money borrowed or owed or the extension of credit, (B) do not materially detract from the value of the Oil and Gas Interests subject thereto or affected thereby or otherwise materially impair
the Property or operations being conducted thereon or therewith, so a reasonably prudent operator engaged in the oil and gas industry with knowledge of the facts and circumstances and the legal effect thereon would accept title to such Oil and Gas
Interests subject to such detractions, interferences or impairments or (C) do not reduce the net revenue interest or increase the working interest for the affected Oil and Gas Interests, (v) all liens, mortgages and deeds of trust granted
by GeoMet in favor of Fleet National Bank, as Administrative Agent under the Amended and Restated Credit Agreement, dated November 21, 2003, as amended on November 22, 2004 (the “Credit Agreement“), and (vi) any other
Encumbrances to the extent such Encumbrances do not have a Material Adverse Effect on GeoMet. 
  
 “person” means any individual, corporation, partnership, joint venture, limited liability company association, joint-stock
company, trust, enterprise, unincorporated organization, or Governmental Entity. 
  
 “Plan” shall mean an “employee benefit plan” as such term is defined in Section 3(3) of ERISA. 
  
 “Taxes” means any income taxes or similar
assessments or any sales, excise, occupation, use, ad valorem, property, production, severance, transportation, employment, payroll, franchise, or other tax imposed by any United States federal, state, or local (or any foreign or provincial) taxing
authority, including any interest, penalties, or additions attributable thereto. 
  

 32 

 “Tax Return” means any return or report, including any related or supporting
information, with respect to Taxes. 
  
 6.2     Certain Additional Defined Terms. In addition to such terms as are defined in Section 6.1, the following terms are used in this Agreement as defined in the pages set forth opposite such terms:

  

			
	 Term

	  	Page

	 2001 Plan
	  	6
	 ABCA
	  	1
	 Agreement
	  	1
	 CERCLA
	  	11
	 Closing
	  	1
	 Closing Date
	  	2
	 Code
	  	1
	 Contracts
	  	14
	 Credit Agreement
	  	32
	 DGCL
	  	1
	 Dissenting Shares
	  	5
	 Effective Time
	  	2
	 Environmental Laws
	  	11
	 Exchange Ratio
	  	3
	 Financial Statements
	  	7
	 GeoMet
	  	1
	 GeoMet Articles
	  	5
	 GeoMet Board
	  	7
	 GeoMet Common Stock
	  	1
	 GeoMet ERISA Affiliate
	  	9
	 GeoMet Option
	  	4
	 GeoMet Subsidiaries
	  	5
	 Merger
	  	1
	 Non-dilution Option
	  	4
	 Parent
	  	1
	 Parent Certificate
	  	2
	 Parent Common Stock
	  	1
	 Parent Contracts
	  	21
	 Parent ERISA Affiliate
	  	18
	 Parent Financial Statements
	  	16
	 Parent Option
	  	4
	 Proxy Statement
	  	25
	 RCRA
	  	11
	 Special Committee
	  	1
	 Surviving Corporation
	  	1

  

 33 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its
officers thereunto duly authorized, all as of the date first above written. 
  

			
	GEOMET RESOURCES, INC.
		
	By:	 	 /s/ J. Darby Seré

	Name:	 	 J. Darby Seré

	Title:	 	 Chief Executive Officer & President

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

	Name:	 	 William C. Rankin

	Title:	 	 Executive Vice President

  

 34

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