Exhibit 10.7.5
AMENDMENT NO. 5
and
SCHEDULED DETERMINATION
OF THE BORROWING BASE
dated as of September 18, 2008
to the CREDIT AGREEMENT
dated as of November 21, 2006
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
BANC OF AMERICA SECURITIES LLC,
Sole Lead Arranger and Sole Book Manager

 

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AMENDMENT NO. 5 AND
SCHEDULED DETERMINATION OF THE BORROWING BASE
     AMENDMENT AND SCHEDULED DETERMINATION (this “Amendment”) dated as of
September 18, 2008 under the Credit Agreement dated as of November 21, 2006 (as
amended, restated, supplemented, or otherwise modified from time to time, the
“Credit Agreement”) among SANDRIDGE ENERGY, INC., a Delaware corporation (f/k/a
Riata Energy, Inc.) (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) Section 1.01 of the Credit Agreement is amended by adding, in
appropriate alphabetical order, the following defined term:
     “East Texas and North Louisiana Assets” means Oil and Gas Properties of the
Borrower and/or its Subsidiaries located in (a) Bossier Parish in the State of
Louisiana and (b) Rusk, Gregg, and Harrison Counties in the State of Texas.”
     (b) Section 7.03(b) of the Credit Agreement is amended by deleting clause
“(b)” in its entirety and by substituting in lieu thereof the new clause “(b)”
to read in its entirety as follows:
     “(b) [INTENTIONALLY OMITTED]”

 

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     (c) Section 7.03(n) of the Credit Agreement is amended by deleting clause
“(n)” in its entirety and by substituting in lieu thereof the new clause “(n)”
to read in its entirety as follows:
     “(n) other unsecured Indebtedness not permitted by the previous clauses;
provided that (A) at the time of incurring such Indebtedness (x) no Default has
occurred and is then continuing and (y) no Default would result from the
incurrence of such Indebtedness after giving effect to the incurrence of such
Indebtedness (and any concurrent repayment of Indebtedness with the proceeds of
such incurrence), (B) such Indebtedness does not mature and requires no
scheduled amortization prior to the 6th anniversary of the Closing Date, (C) the
terms of such Indebtedness are not materially more onerous, taken as a whole,
than the terms of this Agreement and the other Loan Documents and (D) such
Indebtedness and any guarantees thereof are otherwise on market terms and
conditions for similarly situated companies; and provided further that during
any period that any Indebtedness is issued and outstanding on reliance on this
subsection (n), the Borrowing Base shall automatically be reduced by 30% of the
principal amount of such Indebtedness.”
     (d) Section 7.04 of the Credit Agreement is amended by deleting clauses
“(a)” and “(b)” in their entirety and by substituting in lieu thereof the new
clauses “(a)” and “(b)” to read in their entirety as follows:
     “(a) any Subsidiary may merge with (i) the Borrower, provided that the
Borrower shall be the continuing or surviving Person, or (ii) any one or more
other Subsidiaries, provided that when any wholly-owned Subsidiary is merging
with another Subsidiary, the continuing or surviving Person shall be a
wholly-owned Subsidiary and provided further that when any Guarantor is merging
with another Subsidiary, the continuing or surviving Person shall be a
Guarantor;
     (b) any Subsidiary may Dispose of all or substantially all of its assets
(upon voluntary liquidation or otherwise) to the Borrower or to another
Subsidiary (and thereafter dissolve, liquidate or wind-up its affairs); provided
that if the transferor in such a transaction is a wholly-owned Subsidiary, then
the transferee must either be the Borrower or a wholly-owned Subsidiary; and
provided further that if the transferor in such a transaction is a Guarantor,
then the transferee must either be the Borrower or a Guarantor;”
     (e) Section 7.05(g) of the Credit Agreement is amended by (i) inserting
before the word “Dispositions” contained in the first line thereof the number
“(1)” and (ii) by inserting the following proviso at the end of clause (iii) of
the proviso contained therein:

2

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     “; provided that this clause (iii) shall not apply to Dispositions of East
Texas and North Louisiana Assets”
     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 $1,095,000,000.
     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
in whole or in part pursuant to Section 8 hereof, (i) the representations and
warranties set forth in Article V of the Credit Agreement will be true and
correct and (ii) no 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.
     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 Required Lenders and the Borrower.
[Signature Pages Follow]

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date first above written.
Proposed, Consented to and Accepted by:
ADMINISTRATIVE AGENT
BANK OF AMERICA, N.A.,
     as Administrative Agent,
     L/C Issuer and Swing Line Lender

         
By:
   /s/ Charles W. Patterson    
 
 
 
Name: Charles W. Patterson    
 
  Title: Managing Director    

            Approved by:

BORROWER

SANDRIDGE ENERGY, INC.
      By:   /s/ Dirk M. Van Doren         Name:   Dirk M. Van Doren       
Title:   Chief Financial Officer        LENDERS

BANK OF AMERICA, N.A., as Lender
      By:   /s/ Charles W. Patterson         Name:   Charles W. Patterson       
Title:   Managing Director        UNION BANK OF CALIFORNIA, N.A.
      By:   /s/ Whitney Randolph         Name:   Whitney Randolph       
Title:   Assistant Vice President     

 

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            ROYAL BANK OF CANADA
      By:   /s/ Don J. McKinnerney         Name:   Don J. McKinnerney       
Title:   Authorized Signatory        BARCLAYS BANK PLC
      By:   /s/ Joseph Gyurindak         Name:   Joseph Gyurindak       
Title:   Director        CREDIT SUISSE, CAYMAN ISLANDS BRANCH
      By:   /s/ Vanessa Gomez         Name:   Vanessa Gomez        Title:  
Director              By:   /s/ Nupur Kumar         Name:   Nupur Kumar       
Title:   Associate        BANK OF OKLAHOMA, N.A.
      By:   /s/ Mike Weatherholt         Name:   Mike Weatherholt       
Title:   Assistant Vice President        COMERICA BANK
      By:   /s/ Rebecca L. Wilson         Name:   Rebecca L. Wilson       
Title:   Assistant Vice President     

 

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            THE BANK OF NOVA SCOTIA
      By:   /s/ Andrew Ostrov         Name:   Andrew Ostrov        Title:  
Director        SUN TRUST BANK
      By:   /s/ Yann Pirio         Name:   Yann Pirio        Title:   Director 
      THE ROYAL BANK OF SCOTLAND PLC
      By:   /s/ Robert L. Roberts         Name:   Robert L. Roberts       
Title:   Managing Director        BMO CAPITAL MARKETS FINANCING, INC.
      By:   /s/ Gumaro Tijerina         Name:   Gumaro Tijerina        Title:  
Vice President        MIDFIRST BANK
      By:           Name:           Title:      

 

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            U.S. BANK NATIONAL ASSOCIATION
      By:   /s/ Daria Mahoney         Name:   Daria Mahoney        Title:   Vice
President        WELLS FARGO BANK, NA
      By:   /s/ Dustin S. Hansen         Name:   Dustin S. Hansen       
Title:   Vice President        BANK OF SCOTLAND
      By:           Name:           Title:           BNP PARIBAS
      By:           Name:           Title:                 By:           Name:  
        Title:           ALLIED IRISH BANKS P.L.C.
      By:   /s/ David O’Driscoll         Name:   David O’Driscoll       
Title:   Assistant Vice President              By:   /s/ Robert F. Moyle        
Name:   Robert F. Moyle        Title:   Senior Vice President   

 

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            FORTIS CAPITAL CORP.
      By:   /s/ Michele Jones         Name:   Michele Jones        Title:  
Director              By:   /s/ Darrell Holley         Name:   Darrell Holley   
    Title:   Managing Director        CALYON NEW YORK BRANCH
      By:           Name:           Title:                 By:           Name:  
        Title:           MORGAN STANLEY BANK
      By:   /s/ Daniel Twenge         Name:   Daniel Twenge        Title:  
Authorized Signatory        DEUTSCHE BANK TRUST COMPANY AMERICAS
      By:   /s/ Dusan Lazarov         Name:   Dusan Lazarov        Title:   Vice
President              By:   /s/ Erin Morrissey         Name:   Erin Morrissey 
      Title:   Vice President   

 

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            SUMITOMO MITSUI BANKING CORPORATION
      By:           Name:           Title:           COMPASS BANK
      By:   /s/ Kathleen J. Bowen         Name:   Kathleen J. Bowen       
Title:   Senior Vice President        JPMORGAN CHASE BANK, N.A.
      By:   /s/ Kimberly Coll         Name:   Kimberly Coll        Title:   Vice
President        GOLDMAN SACHS BANK USA
      By:   /s/ William Yarbenet         Name:   William Yarbenet       
Title:   Vice President        STERLING BANK
      By:   /s/ Ryan K. Michael         Name:   Ryan K. Michael        Title:  
Assistant Vice President   

 

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            LEHMAN BROTHERS COMMODITY SERVICES, INC.
      By:           Name:           Title: