Document:

Commitment Letter between North Shore Energy, LLC and GeoMet, Inc.

 EXHIBIT 10.22 
 March 10, 2010 
 GeoMet, Inc. 
 909 Fannin 
 Suite 1850 
 Houston, TX 77002 
 Attention: J. Darby Sere 
 CONFIDENTIAL 
 Subject:
$20,000,000 Backstop Commitment to Purchase Convertible Preferred Stock (“Series A Preferred Stock”) 
 Gentlemen: 
 We are pleased to inform you that North Shore Energy, LLC (“NSE”) has approved a backstop commitment (the “Backstop
Commitment”) to purchase up to $20,000,000 of Preferred Stock of GeoMet, Inc., a Delaware corporation (“GeoMet” or the “Issuer”) in the event that GeoMet’s proposed rights offering of Preferred Stock to its current
stockholders (the “Rights Offering”) is not fully subscribed by such stockholders. The Backstop Commitment is more specifically described in the Summary of Terms and Conditions dated as of March 10, 2010 attached hereto and
incorporated herein by this reference (the “Term Sheet”). The Backstop Commitment is subject to the terms and conditions specified in this letter, the Term Sheet and the Confidential Payment Letter referred to below, and is subject to the
execution of the final documentation. 
 Prior to NSE becoming obligated to purchase any shares of Preferred Stock pursuant to
the Backstop Commitment in the event the Rights Offering is not fully subscribed by GeoMet’s existing stockholders, the Issuer shall execute, or cause to be executed, and shall deliver to NSE, a backstop agreement (the “Backstop
Agreement”) and all agreements and other documents and instruments deemed appropriate by NSE to evidence the Backstop Commitment and all terms and conditions described in this commitment letter. All such agreements, instruments, and other
documents shall be in form and substance satisfactory to NSE. 
 In addition to the conditions to the Backstop Commitment or
closing set forth in the Term Sheet, the Confidential Payment Letter between the Issuer and NSE dated March 10, 2010 (the “Confidential Payment Letter”) and final documentation, the Backstop Commitment is subject to (i) the
satisfactory completion of NSE’s due diligence with respect to the oil and gas assets owned, leased and/or to be acquired by GeoMet (collectively, the “Assets”), including but not limited to a satisfactory review of title
documentation pertaining to the Assets and the underlying data supporting those reports and documents, as well as a satisfactory business and legal review of the other assets and liabilities, businesses and operations, proposed organization and
legal structure, and tax, labor, environmental, financial, ERISA, litigation, significant contracts, including, but not limited to, marketing contracts, contract operating agreements, oil and gas leases, transportation arrangements and other matters
relating thereto, (ii) no change, occurrence or development shall have occurred or become known to us since the date hereof that could reasonably be expected to have a material adverse effect on the business, condition (financial or otherwise),
operations, performance, assets or prospects of the Issuer or the Assets; (iii) the absence of any material adverse conditions in the financial, banking, loan syndication or capital markets, (iv) execution and delivery of an extension of
the Issuer’s senior debt facility on terms that are acceptable to NSE; and (v) the payment in full of all payments, expenses and other amounts payable to us under this commitment letter and the Confidential Payment Letter. 
 Whether or not the transactions contemplated hereby are consummated, the Issuer hereby agrees to indemnify and hold harmless NSE and its
affiliates and their respective directors, officers, employees, agents and attorneys (each, an “indemnified person”) from and against any and all losses, claims, damages, liabilities (or actions or other proceedings commenced or threatened
in respect thereof) and expenses, including, without limitation, any loss, claim, damage or liability alleged by the Issuer or any of its owners or affiliates, that arise

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

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

 Please indicate your acceptance of the provisions hereof by signing the enclosed copy of
this commitment letter and the Confidential Payment Letter and returning them to Steve Swanson, North Shore Energy, LLC, 1600 Glenarm Pl., Suite 3002, Denver, CO 80202 (telecopier: (303-446-2643) at or before 5:00 p.m. CDT on March 31, 2010,
the time at which the Backstop Commitment (if not so accepted prior thereto) will expire. If you elect to deliver this commitment letter by telecopier, please arrange for the executed original to follow by next-day courier. 
  

			
	Sincerely,
	
	NORTH SHORE ENERGY, LLC
		
	By:	 	/s/ Steve Swanson
	Name: 	 	Steve Swanson
	Title:	 	President

  

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

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

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

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

  

	 Investors: 
	North Shore Energy, LLC (“NSE”), and other institutional and/or private Investors (together with NSE, the “Investors” and individually an “Investor”).

  

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

  

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

  

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

  

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

  

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

  

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

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

  

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

  

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

  

	 Redemption: 
	If not converted, the Preferred Shares (including any PIK Preferred Shares) will be redeemable upon a Liquidation Event. In the absence of a Liquidation Event, if not converted, the Preferred
Shares (including any PIK Preferred Shares) will be redeemable, at the option of the Investors, in whole or in part, on or after eight (8) years from the Closing Date, upon 30 days prior written notice to the Company by any holder of the
Preferred Shares electing to redeem. 

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

  

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

  

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

  

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

  

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

  

	 Special Voting Rights Upon Default: 
	 If NSE has declared an event of default under the Backstop Agreement or any other material default under the terms of the governing documents for the Preferred Shares occurs, the
Issuer’s Board of Directors will be expanded such that NSE and any other party to the Backstop Agreement would be entitled to appoint such number of additional directors as necessary to constitute a majority of the Board of Directors. This
result may also be accomplished by the Issuer securing the resignations of a sufficient number of existing directors. Once the default(s) are cured or waived (in the case of

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

  

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

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

	 	•	 	 incurrence of material debt; 

  

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

  

	 	•	 	 redemption or repurchases of equity securities, 

  

	 	•	 	 material acquisitions, or other fundamental change transactions, 

  

	 	•	 	 entering into any material transaction with a related party, 

  

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

  

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

  

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

  

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

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

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

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

  

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

  

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

  

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

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

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

			
	Sincerely,
	
	NORTH SHORE ENERGY, LLC
		
	By:	 	/s/ Steve Swanson
	 Name:
	 	        Steve Swanson
	 Title:
	 	        President

  

			
	Accepted and agreed this 29th day
	 of March 2010

	
	 ISSUER:

	 GeoMet, Inc.

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

	 Title:
	 	 Chief Executive OfficerThird Amendment to Third Amended and Restated Credit Agreement

 EXHIBIT 10.23 
 THIRD AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT 
 This Third Amendment to Third Amended and Restated Credit Agreement (this “Third Amendment”) is entered into as of the 30th day of March, 2010 (the “Effective Date”), by and among
GEOMET, INC., a Delaware corporation (“Borrower”), BANK OF AMERICA, N.A., as Administrative Agent (“Administrative Agent”), and the Banks party hereto. 
 W I T N E S S E T H: 
 WHEREAS, Borrower, Administrative Agent, the
financial institutions party thereto as Banks, and the other agents party thereto are parties to that certain Third Amended and Restated Credit Agreement dated as of June 9, 2006 (as amended, the “Credit Agreement”) (unless otherwise
defined herein, all terms used herein with their initial letter capitalized shall have the meaning given such terms in the Credit Agreement); and 
 WHEREAS, pursuant to the Credit Agreement, Banks have made a revolving credit loan to Borrower and provided certain other credit accommodations to Borrower; and 
 WHEREAS, Borrower has requested (a) a four month extension of the maturity date under the Credit Agreement, (b) that the Borrowing
Base be reduced to $123,000,000, and (c) that the minimum current ratio covenant test for the Fiscal Quarter ended March 31, 2010 be amended; and 
 WHEREAS, the Administrative Agent and the Banks are willing to amend the Credit Agreement as set forth herein on the terms and conditions set forth herein. 
 NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged and confessed, Borrower, Administrative Agent and 
 Banks hereby
agree as follows: 
 Section 1. Amendments. In reliance on the representations, warranties, covenants and agreements
contained in this Third Amendment, the Credit Agreement shall be amended effective as of the Effective Date in the manner provided in this Section 1. 
 1.1 Additional Definitions. Section 1.1 of the Credit Agreement is hereby amended to add thereto in alphabetical order the following definitions which shall read in full as follows: 
 “Third Amendment” means that certain Third Amendment to Third Amended and Restated Credit Agreement dated as of March 30, 2010
among Borrower, Administrative Agent and the Banks party thereto. 
 1.2 Amendments to Definitions. The definitions of
“Applicable Margin”, “Letter of Credit Fee”, “Loan Papers”, “Scheduled Determination Date” and “Termination Date” contained in Section 1.1 of the Credit Agreement are hereby amended to read in
full as follows: 
 “Applicable Margin” means, on any date, 2.625% with respect to each Adjusted Base Rate Tranche, and
3.50% with respect to each Eurodollar Tranche. 
 “Letter of Credit Fee” means, with respect to any Letter of Credit
issued hereunder, a fee in an amount equal to 3.50% of the average daily aggregate amount of Letter of Credit Exposure of all Banks during the Fiscal Quarter (or portion thereof) ending on the date such payment is due (calculated on a per annum
basis based on such average daily aggregate Letter of Credit Exposure). Such fee shall be payable in accordance with the terms of Section 2.13. 

 “Loan Papers” means this Agreement, the First Amendment, the Second Amendment, the
Third Amendment, the Notes, each Facility Guaranty now or hereafter executed, the Mortgages, each Borrower Pledge Agreement now or hereafter executed, each Subsidiary Pledge Agreement now or hereafter executed, the Certificate of Effectiveness, the
Letters of Credit and all other certificates, documents or instruments delivered in connection with this Agreement, as the foregoing may be amended from time to time. 
 “Scheduled Determination Date” means June 15, 2010, each June 30 (other than June 30, 2010) and December 31, commencing June 30, 2006. 
 “Termination Date” means May 6, 2011. 
 1.3 Amendment to Minimum Current Ratio Provision. Clause (a) of Article X of the Credit Agreement is hereby amended and restated in its entirety as follows: 
 (a) Borrower will not permit its ratio of Consolidated Current Assets to its Consolidated Current Liabilities as of
(i) the end of any Fiscal Quarter (other than the Fiscal Quarter ended on March 31, 2010) to be less than 1 to 1 and (ii) March 31, 2010 to be less than 0.80 to 1. 
 Section 2. Borrowing Base. In reliance on the representations, warranties, covenants and agreements contained in this Third Amendment
and pursuant to Borrower’s request, the Borrowing Base shall be decreased, effective as of the Effective Date, to $123,000,000 and shall remain at $123,000,000 until the next Determination. Borrower and Banks agree (a) not to call for a
Determination of the Borrowing Base prior to June 15, 2010, (b) that the reduction of the Borrower Base in this Section 2 (i) was at Borrower’s request, (ii) shall not be deemed to be the determination of the Borrowing
Base scheduled for June 15, 2010 (or such date promptly thereafter as reasonably possible for the Banks) pursuant to Section 4.2 of the Credit Agreement and (iii) shall not be construed or deemed to be a Special Determination for
purposes of Section 4.3 of the Credit Agreement. 
 Section 3. Conditions Precedent to Amendment. This Amendment shall
be effective as of the Effective Date when the following conditions precedent have been satisfied: 
 3.1 Amendment/Consent.
Administrative Agent shall have received counterparts of this Amendment executed on behalf of Borrower, Administrative Agent and each Bank, and of the consent attached to this Amendment executed by GeoMet Operating and each Domestic Subsidiary party
to a Facility Guaranty. 
 3.2 Fees. Borrower shall have paid to Administrative Agent, for the benefit of each Bank in
accordance with each Bank’s Commitment Percentage of the Borrowing Base, a nonrefundable amendment fee equal to 0.25% of the Borrowing Base. 
 3.3 Opinion of Counsel. The Administrative Agent shall have received executed legal opinions from Thompson & Knight L.L.P. and such other counsels to the Credit Parties as the Administrative
Agent shall reasonably request with respect to this Amendment, such legal opinion to be in form and substance reasonably satisfactory to the Administrative Agent. 
 3.4 Certificate of Borrower; Guarantors. Borrower shall have delivered to Administrative Agent such certificates of authorized officers of Borrower and the parties to the Facility Guarantees, certificates
of Governmental Authorities, certified copies of the certificates of incorporation, formation, bylaws and operating agreements, as applicable, of Borrower and such guarantors (or certified confirmation that no amendments, modifications or revisions
have been to those previously certifies and delivered to Administrative Agent, as applicable), certified copies of resolutions of the directors, managers or members, as applicable of Borrower and such guarantors and such other documents, instruments
and agreements as Administrative Agent shall require to evidence the valid corporate existence and authority to conduct business of Borrower and such guarantors and the due authorization, execution and delivery of this Third Amendment any other
documents related to this Third Amendment and any other legal matters relating to Borrower, such guarantors, or the other Loan Papers, all in a form and substance reasonable satisfactory to Administrative Agent and its counsel. 

 3.5 Commitments from NGP/North Shore. Administrative Agent shall have received executed
commitment letters, in form and substance reasonably acceptable to Administrative Agent, from NGP Capital Resources Company, a Maryland corporation, or one of its Affiliates reasonably acceptable to Administrative Agent (“NGP”), and North
Shore Energy, L.L.C. or one of its Affiliates reasonably acceptable to Administrative Agent (“North Shore”), pursuant to which NPG and North Shore have committed to purchase up to $40,000,000 of preferred equity interests of Borrower on
terms and conditions acceptable to Administrative Agent, which commitment letters shall be certified by Borrower as being true and correct copies in full force and effect on and as of the Effective Date. 
 Section 4. Representations and Warranties of Borrower. To induce Banks and Administrative Agent to enter into this Third Amendment,
Borrower hereby represents and warrants to Banks and Administrative Agent as follows: 
 4.1 Reaffirm Existing Representations
and Warranties. Each representation and warranty of Borrower contained in the Credit Agreement and the other Loan Papers is true and correct on the date hereof and will be true and correct after giving effect to the amendments set forth in
Section 1 hereof. 
 4.2 Due Authorization; No Conflict. The execution, delivery and performance by Borrower of this Third
Amendment are within Borrower’s corporate powers, have been duly authorized by all necessary action, require no action by or in respect of, or filing with, any governmental body, agency or official and do not violate or constitute a default
under any provision of applicable law or any Material Agreement binding upon Borrower or any other Credit Party, or result in the creation or imposition of any Lien upon any of the assets of Borrower or any other Credit Party except Permitted
Encumbrances. 
 4.3 Validity and Enforceability. This Third Amendment constitutes the valid and binding obligation of Borrower
enforceable in accordance with its terms, except as (a) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally, and (b) the availability of equitable remedies may be
limited by equitable principles of general application. 
 4.4 No Default. No Default or Event of Default shall have occurred
which is continuing. 
 Section 5. Miscellaneous. 
 5.1 Reaffirmation of Loan Papers. Any and all of the terms and provisions of the Credit Agreement and the Loan Papers shall, except as
amended and modified hereby, remain in full force and effect. The amendments contemplated hereby shall not limit or impair any Liens securing the Obligations, each of which are hereby ratified, affirmed and extended to secure the Obligations as they
may be increased pursuant hereto. 
 5.2 Parties in Interest. All of the terms and provisions of this Third Amendment shall bind
and inure to the benefit of the parties hereto and their respective successors and assigns. 
 5.3 Legal Expenses. Borrower
hereby agrees to pay on demand all reasonable fees and expenses of counsel to Administrative Agent incurred by Administrative Agent in connection with the preparation, negotiation and execution of this Third Amendment and all related documents.

 5.4 Counterparts. This Third Amendment may be executed in counterparts, and all parties need not execute the same
counterpart; however, no party shall be bound by this Third Amendment until Borrower and all Banks have executed a counterpart. Facsimiles or other electronic transmissions (e.g., pdf) shall be effective as originals. 
 5.5 Complete Agreement. THIS THIRD AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN PAPERS REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES. 

 5.6 Headings. The headings, captions and arrangements used in this Third Amendment are,
unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Third Amendment, nor affect the meaning thereof. 
 5.7 Governing Law. This Third Amendment shall be governed by, and construed in accordance with, the laws of the State of New York, other than conflict of laws rules thereof. 
 IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be duly executed by their respective authorized officers on the
date and year first above written. 
  

			
	 BORROWER:
 GEOMET,
INC.,
 a Delaware corporation

		
	By: 	 	/s/ J. Darby Seré
	Name: 	 	J. Darby Seré
	Title:	 	President & CEO

  

			
	 ADMINISTRATIVE AGENT/BANK:
 BANK OF AMERICA, N.A.,
 as Administrative Agent

		
	By: 	 	/s/ Jeffrey H. Rathkamp
		 	Jeffrey H. Rathkamp,
		 	Managing Director

  

			
	 BANK OF AMERICA, N.A.,
 as a Bank

		
	By: 	 	/s/ Jeffrey H. Rathkamp
		 	Jeffrey H. Rathkamp,
		 	Managing Director

  

			
	BANKS:
	
	BNP PARIBAS
		
	By:	 	/s/ Edward Pak
	Name: 	 	Edward Pak
	Title:	 	Vice President
		
	By:	 	/s/ Betsy Jocher
	Name: 	 	Betsy Jocher
	Title:	 	Director

			
	BANK OF SCOTLAND plc
		
	By:	 	/s/ Julia R. Franklin
	Name: 	 	Julia R. Franklin
	Title:	 	Assistant Vice-President

  

			
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	/s/ Monte E. Deckerd
	Name: 	 	Monte E. Deckerd
	Title:	 	Senior Vice President

  

			
	STERLING BANK
		
	By:	 	/s/ David Phillips
	Name: 	 	David Phillips
	Title:	 	Senior Vice President

 The undersigned
(i) consents and agrees to this Third Amendment, and (ii) agrees that the Loan Papers to which it is a party (including, without limitation, the Facility Guaranty dated as of June 9, 2006 or January 1, 2007, as applicable) shall
remain in full force and effect and shall continue to be the legal, valid and binding obligation of the undersigned, enforceable against it in accordance with its terms. 
  

			
	 CONSENTED, ACKNOWLEDGED AND AGREED TO BY:
 GEOMET GATHERING COMPANY, LLC,
 an Alabama limited liability company

		
	By:	 	/s/ J. Darby Seré
	Name: 	 	J. Darby Seré
	Title:	 	President & CEO

  

			
	 GEOMET OPERATING COMPANY, INC.,
 an Alabama corporation

		
	By:	 	/s/ J. Darby Seré
	Name: 	 	J. Darby Seré
	Title:	 	President & CEO

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