Exhibit 10.1

AMENDMENT NO. 1

and

SCHEDULED DETERMINATION

OF THE BORROWING BASE

dated as of October 22, 2010

to the

AMENDED AND RESTATED

CREDIT AGREEMENT

dated as of April 22, 2010

among

SANDRIDGE ENERGY, INC.

as the Borrower,

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender and L/C Issuer

and

The Other Lenders Party Thereto

--------------------------------------------------------------------------------

 

AMENDMENT NO. 1 AND

SCHEDULED DETERMINATION OF THE BORROWING BASE

AMENDMENT AND SCHEDULED DETERMINATION (this “Amendment”) dated as of October 22,
2010 under the Amended and Restated Credit Agreement dated as of April 22, 2010
(as amended, restated, supplemented, or otherwise modified from time to time,
the “Credit Agreement”) among SANDRIDGE ENERGY, INC., a Delaware corporation
(the “Borrower”), each LENDER from time to time party thereto and BANK OF
AMERICA, N.A., as Administrative Agent (the “Administrative Agent”), Swing Line
Lender and L/C Issuer.

WHEREAS, the parties hereto desire to amend the Credit Agreement as set forth
herein; and

WHEREAS, the Administrative Agent proposes to continue the current Borrowing
Base amount in accordance with the Scheduled Determination procedure set forth
in Section 2.05 of the Credit Agreement;

NOW, THEREFORE, the parties hereto agree as follows:

Section 1. Defined Terms. Unless otherwise specifically defined herein, each
term used herein that is defined in the Credit Agreement has the meaning
assigned to such term in the Credit Agreement. Each reference to “hereof”,
“hereunder”, “herein” and “hereby” and each other similar reference and each
reference to “this Agreement” and each other similar reference contained in the
Credit Agreement shall, after this Amendment becomes effective, refer to the
Credit Agreement as amended hereby.

Section 2. Amendments to the Credit Agreement. The Credit Agreement is hereby
amended as follows:

(a) The following new defined terms are added to Section 1.01 in appropriate
alphabetical position:

“Amendment No. 1 Properties” means Oil and Gas Properties owned by the Loan
Parties on the effective date of Amendment No. 1 to this Agreement in the
Wolfberry trend in the Midland Basin and the Bone Springs and Maljamar trends in
the Delaware Basin.

“Senior Secured Leverage Ratio” means, as of any date of determination, the
Consolidated Leverage Ratio as of such date, adjusted to exclude from the
numerator (i) any Indebtedness of any Person that is not a Loan Party and
(ii) any unsecured Indebtedness of any Loan Party. For avoidance of doubt,
Indebtedness of a Person other than a Loan Party which is Guaranteed by a Loan
Party is included in such numerator if, and only if, such Guarantee is secured
by a Lien on assets of a Loan Party.

--------------------------------------------------------------------------------

 

(b) The definition of Consolidated Net Income is amended (x) by substituting a
comma for the word “and” at the end of clause (iii) of the proviso thereto,
(y) adding “and” at the end of clause (iv) of said proviso and (z) adding the
following clause (v) to said proviso:

(v) the net income (or loss) of any person accounted for on the equity method,
except to the extent of cash distributions received by the Borrower or a
Consolidated Subsidiary for such period.

(c) The definition of Engineered Oil and Gas Property is restated in its
entirety to read as follows:

“Engineered Oil and Gas Property” means any Oil and Gas Property listed in the
most recent Engineering Report other than any Oil and Gas Property (i) to which
no value has been attributed by the Administrative Agent in the most recent
determination of the Borrowing Base or (ii) that has been Disposed of as part of
or in connection with any Disposition to a Person other than a Loan Party that
is permitted hereunder or under any other Loan Document.

(d) Section 2.06(b)(ii) is amended (x) by changing the figure “7.5%” to “10.0%”
and (y) by adding the following proviso thereto:

; provided that no such reduction in the Borrowing Base shall be effected in
connection with a Disposition of any of the Amendment No. 1 Properties.

(e) Section 7.02 (h) is amended by the addition of the following parenthetical
phrase at the end thereof:

(exclusive of the value of Oil and Gas Properties contributed as contemplated by
Section 7.05(l)).

(f) Section 7.05(g) is amended by adding the words “or Amendment No. 1
Properties” at the end of clause (x) of the proviso to clause (iii).

(g) Section 7.05(k) is amended by adding “, (h)” after “(g)”.

(h) Section 7.05 is further amended by (x) deleting the word “and” at the end of
clause (j), (y) changing the period at the end of clause (k) to “; and” and
(z) adding the following new clause (l):

(l) Dispositions of Oil and Gas Properties to joint ventures pursuant to
Section 7.02(h); provided that no value was attributed to such Oil and Gas
Properties in the then most recent determination of the Borrowing Base.

 

2

--------------------------------------------------------------------------------

 

(i) Section 7.11(a) is amended to read as follows:

(a) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as of
the end of any fiscal quarter of the Borrower to be greater than 4.5:1.0.

(j) Section 7.11 is further amended by the addition of the following new
subsection (c):

(c) Senior Secured Leverage Ratio. Permit the Senior Secured Leverage Ratio as
of the end of any fiscal quarter of the Borrower to be greater than 2.0:1.0.

Section 3. Proposal to Continue the Current Borrowing Base. Based on the
Engineering Report and other information concerning the businesses and
properties of the Borrower and its Subsidiaries (including their Oil and Gas
Properties and the reserves and production relating thereto) received pursuant
to Sections 2.05(b)(i) and 6.01(d) of the Credit Agreement by the Administrative
Agent from the Borrower, the Administrative Agent, pursuant to Sections
2.05(b)(i) and 2.05(b)(iii) of the Credit Agreement, hereby proposes to the
Lenders for their approval to continue the current amount of the Borrowing Base,
which is $850,000,000.

Section 4. Approval by Lenders. In accordance with Section 2.05(b)(iii) of the
Credit Agreement, the undersigned Lenders hereby approve the continuation of the
current amount of the Borrowing Base as proposed by the Administrative Agent
under Section 3 above.

Section 5. Representations of the Borrower. The Borrower represents and warrants
that, both before and immediately after giving effect to this Amendment pursuant
to Section 8 hereof, (i) the representations and warranties set forth in Article
5 of the Credit Agreement will be true and correct in all material respects and
(ii) no Default or Event of Default will have occurred and be continuing.

Section 6. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of New York.

Section 7. Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. Delivery of an
executed counterpart of a signature page of this Amendment by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement.

 

3

--------------------------------------------------------------------------------

 

Section 8. Effectiveness. This Amendment shall become effective on and as of the
date hereof provided that the Administrative Agent shall have received
counterparts hereof signed by each of the Borrower and (i) with respect to
Section 2, the Required Lenders and (ii) with respect to Section 4, the
Super-Majority Lenders.

[Signature Pages Follow]

 

4

--------------------------------------------------------------------------------

 

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

 

SANDRIDGE ENERGY, INC. By:  

/s/ Dirk M. Van Doren

  Name:   Dirk M. Van Doren   Title:   Chief Financial Officer

 

5

--------------------------------------------------------------------------------

 

BANK OF AMERICA, N.A., as Administrative Agent

By:  

/s/ Maurice Washington

  Name:   Maurice Washington   Title:   Vice President

 

6

--------------------------------------------------------------------------------

 

BANK OF AMERICA, N.A., as a Lender, Swing Line Lender and L/C Issuer

By:  

/s/ Jeffrey H. Rathkamp

  Name:   Jeffrey H. Rathkamp   Title:   Managing Director

 

7

--------------------------------------------------------------------------------

 

BARCLAYS BANK PLC By:  

/s/ Ann E. Sutton

  Name:   Ann E. Sutton   Title:   Director

 

8

--------------------------------------------------------------------------------

 

ROYAL BANK OF CANADA By:  

/s/ Don J. McKinnerney

  Name:   Don J. McKinnerney   Title:   Authorized Signatory

 

9

--------------------------------------------------------------------------------

 

THE ROYAL BANK OF SCOTLAND PLC By:  

/s/ David Slye

  Name:   David Slye   Title:   Director

 

10

--------------------------------------------------------------------------------

 

UNION BANK N.A. By:  

/s/ Joshua Patterson

  Name:   Joshua Patterson   Title:   Vice President

 

11

--------------------------------------------------------------------------------

 

WELLS FARGO BANK, NA By:  

/s/ Catherine Stacy

  Name:   Catherine Stacy   Title:   Assistant Vice President

 

12

--------------------------------------------------------------------------------

 

THE BANK OF NOVA SCOTIA By:  

/s/ John Frazell

  Name:   John Frazell   Title:   Director

 

13

--------------------------------------------------------------------------------

 

BNP PARIBAS By:  

/s/ Richard Hawthorne

  Name:   Richard Hawthorne   Title:   Director By:  

/s/ Edward Pak

  Name:   Edward Pak   Title:   Vice President

 

14

--------------------------------------------------------------------------------

 

CAPITAL ONE BANK, N.A. By:  

/s/ Scott Joyce

  Name:   Scott Joyce   Title:   Senior Vice President

 

15

--------------------------------------------------------------------------------

 

CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK

By:  

/s/ Sharada Manne

  Name:   Sharada Manne   Title:   Director By:  

/s/ Tom Byargeon

  Name:   Tom Byargeon   Title:   Managing Director

 

16

--------------------------------------------------------------------------------

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

By:  

/s/ Marcus M. Tarkington

  Name:   Marcus M. Tarkington   Title:   Director By:  

/s/ Enrique Landaeta

  Name:   Enrique Landaeta   Title:   Vice President

 

17

--------------------------------------------------------------------------------

 

JPMORGAN CHASE BANK, N.A. By:  

/s/ Mark E. Olson

  Name:   Mark E. Olson   Title:   Authorized Officer

 

18

--------------------------------------------------------------------------------

 

BANK OF SCOTLAND PLC By:  

/s/ Julia R. Franklin

  Name:   Julia R. Franklin   Title:   Assistant Vice President

 

19

--------------------------------------------------------------------------------

 

SUN TRUST BANK By:  

/s/ Gregory C. Magnuson

  Name:   Gregory C. Magnuson   Title:   Vice President

 

20

--------------------------------------------------------------------------------

 

UBS LOAN FINANCE, LLC By:  

/s/ Mary E. Evans

  Name:   Mary E. Evans   Title:   Associate Director By:  

/s/ Irja R. Otsa

  Name:   Irja R. Otsa   Title:   Associate Director

 

21

--------------------------------------------------------------------------------

 

COMERICA BANK By:  

/s/ Dustin Hansen

  Name:   Dustin Hansen   Title:   Senior Vice President

 

22

--------------------------------------------------------------------------------

 

ALLIED IRISH BANKS P.L.C. By:  

/s/ Mark Connelly

  Name:   Mark Connelly   Title:   Senior Vice President By:  

/s/ Edward Fenk

  Name:   Edward Fenk   Title:   Vice President

 

23

--------------------------------------------------------------------------------

 

COMPASS BANK By:  

/s/ Kathleen J. Bowen

  Name:   Kathleen J. Bowen   Title:   Senior Vice President

 

24

--------------------------------------------------------------------------------

 

CREDIT SUISSE AG, Cayman Islands Branch (f/k/a/ CREDIT SUISSE, Cayman Islands
Branch)

By:  

/s/ Nupur Kumar

  Name:   Nupur Kumar   Title:   Vice President By:  

/s/ Vipul Dhadda

  Name:   Vipul Dhadda   Title:   Associate

 

25

--------------------------------------------------------------------------------

 

KEYBANK NATIONAL ASSOCIATION By:  

/s/ David M. Morris

  Name:   David M. Morris   Title:   Vice President

 

26

--------------------------------------------------------------------------------

 

BANK OF OKLAHOMA, N.A. By:  

/s/ Mike Weatherholt

  Name:   Mike Weatherholt   Title:   Assistant Vice President

 

27

--------------------------------------------------------------------------------

 

BANK OF MONTREAL By:  

/s/ Gumaro Tijerina

  Name:   Gumaro Tijerina   Title:   Director

 

28

--------------------------------------------------------------------------------

 

SUMITOMO MITSUI BANKING CORPORATION

By:  

/s/ Masakazu Hasegawa

  Name:   Masakazu Hasegawa   Title:   General Manager

 

29

--------------------------------------------------------------------------------

 

GOLDMAN SACHS BANK USA By:  

/s/ Lauren Day

  Name:   Lauren Day   Title:   Authorized Signatory

 

30

--------------------------------------------------------------------------------

 

MIDFIRST BANK By:  

/s/ Shawn D. Brewer

  Name:   Shawn D. Brewer   Title:   Vice President

 

31

--------------------------------------------------------------------------------

 

MORGAN STANLEY BANK, N.A. By:  

/s/ Scott Taylor

  Name:   Scott Taylor   Title:   Authorized Signatory

 

32