Document:

exv4w3

 

Exhibit 4.3

REGISTRATION RIGHTS AGREEMENT

by and among

RIATA ENERGY, INC.

d/b/a SANDRIDGE ENERGY, INC.

and

THE PURCHASERS SET FORTH ON

SCHEDULE I HERETO

 

     REGISTRATION RIGHTS AGREEMENT, dated as of November 21, 2006, among Riata Energy, Inc.,
a Texas corporation (together with any successor entity, herein referred to as the “Company”), and
the several purchasers (the “Purchasers”) under the Purchase Agreement (as defined below).

     Pursuant to the Securities Purchase Agreement, dated as of November 16, 2006, among the
Company and the Purchasers (the “Purchase Agreement”), relating to the purchase of the Preferred
Stock and Common Units (each, as defined below), the Purchasers have agreed to purchase from the
Company (a) an aggregate of 2,136,669 shares of Series A Convertible Preferred Stock, par value
$0.001 per share, of the Company (the “Preferred Stock”) and (b) units (“Common Units”) consisting
of shares of Common Stock and a Preferred Stock Purchase Warrant to purchase shares of Preferred
Stock (“Warrant”) (collectively, the Preferred Stock and Common Units to be purchased pursuant to
the Purchase Agreement are herein referred to as the “Purchased Securities”). To induce the
Purchasers to purchase the Purchased Securities, the Company has agreed to provide the registration
rights set forth in this Agreement pursuant to Section 2.03(e) 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 Registration Rights Agreement, as amended from time to time.

     “Amendment Effectiveness Deadline Date”: has the meaning set forth in Section 2(f)(i) hereof.

     “Applicable Period”: As defined in Section 5(b).

     “BD Holder”: As defined in Section 5(b)(vi) 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 Purchased Securities.

     “Commission”: Securities and Exchange Commission.

 

     “Common Stock”: The common stock, par value $0.001, of the Company, (i) issuable upon
conversion of Preferred Stock that constitutes Purchased Securities, (ii) issuable as a result of
conversion of Preferred Stock that may be issued upon exercise of a Warrant issued as part of the
Common Units that constitute Purchased Securities or (b) issued as part of the Common Units that
constitute Purchased Securities.

     “Common Units”: 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.

     “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 (on an as-exercised and as-converted basis).

     “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”: A written notice executed by the respective Holder and delivered
to the Company containing substantially the information called for by the Selling Securityholder
Notice and Questionnaire attached as Annex A hereto.

     “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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     “Plan of Distribution”: As defined in Section 5(b).

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

     “Prior Holder”: A Person who owns, beneficially or otherwise, Transfer Restricted Securities
(as such term is defined in the Prior Registration Rights Agreement).

     “Prior Registration Rights Agreement”: The Resale Registration Rights Agreement, dated
December 21, 2005, between the Company and Banc of America Securities LLC.

     “Prospectus”: The prospectus included in a Shelf Registration Statement or Subsequent 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.

     “Purchase Agreement”: As defined in the preamble hereto.

     “Purchased Securities”: As defined in the preamble hereto.

     “Purchasers”: As defined in the preamble hereto.

     “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.

     “Shareholders Agreement” shall mean that certain Shareholders Agreement dated November 21,
2006 by and among the Company and certain shareholders of the Company named therein as in effect on
the date hereof.

     “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” has the meaning set forth in Section 2(c) hereof.

     “Suspension Notice”: As defined in Section 5(c) hereof.

     “Suspension Period”: As defined in Section 5(b)(ii) hereof.

     “Transfer Agent”: American Stock Transfer & Trust Company.

     “Transfer Restricted Securities”: Each share of Common Stock until the earlier of:

     (a) the date on which such share of Common Stock has been resold pursuant to the Shelf
Registration Statement or Subsequent Shelf Registration Statement;

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     (b) other than for the purposes of Sections 3 and 9 (and to the extent applicable
thereto, Sections 5 and 7), the date on which such share of Common Stock 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

     (c) the date on which such share of Common Stock 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.

     “Warrant”: As defined in the preamble hereto.

     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 later than August 31, 2007 (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 (except to the extent registration of the Common Stock issuable
pursuant to the conversion of Preferred Stock issuable upon the exercise of a Warrant
is prohibited by the rules and regulations of the Commission), plus any additional
            shares of Common Stock issued in respect thereof whether by stock dividend, stock
split or otherwise, held by Holders that have provided the information required
pursuant to the terms of Section 2(b) hereof);

     (ii) use its reasonable best efforts to cause the Shelf Registration Statement to
be declared effective under the Securities Act by the Commission not later than the
earlier of (x) the date which is 181 days from the date that the first registration
statement that is a Shelf Registration Statement or, in the case of an initial public
offering of the Company, a Piggyback Registration Statement under the Prior
Registration Rights Agreement, is declared effective by the Commission and (y)
December 31, 2007 (such earlier date being referred to as the “Effectiveness Target
Date”); and

     (iii) use its reasonable best efforts to keep the Shelf Registration Statement or
any Subsequent Shelf Registration Statement continuously effective,

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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 by the Holders of Transfer Restricted Securities 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 date on which no Transfer Restricted
Securities remain outstanding.

     (b) At the time the Shelf Registration Statement or any Subsequent Shelf Registration
Statement is declared effective, each Holder that became a Notice Holder on or prior to the
date five (5) 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 or any
Subsequent 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 reasonable best 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 Subsequent Shelf
Registration Statement is filed, the Company shall use its reasonable best efforts to cause
the Subsequent Shelf Registration Statement to become effective as promptly as is
practicable, subject to any prohibitions in the Prior Registration Rights Agreement, 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 or
Subsequent 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 or Subsequent Shelf Registration Statement, if required by the
Securities Act or as reasonably requested by any Holder of Transfer Restricted Securities
covered by such Shelf Registration Statement.

     (e) The Company shall cause the Shelf Registration Statement and each Subsequent Shelf
Registration Statement and the related Prospectus and any amendment or supplement thereto,
as of the effective date of the Shelf Registration Statement and each Subsequent Shelf
Registration Statement and any 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

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material fact required to be stated therein or necessary in order to make the
statements therein not misleading.

     (f) Each Holder agrees that if such Holder wishes to sell Transfer Restricted
Securities pursuant to a Shelf Registration Statement or a Subsequent 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 or a Subsequent 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 or a Subsequent Shelf Registration Statement. From and after
the date the Shelf Registration Statement or a Subsequent 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 tenth 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 five 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 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 and, if the Company shall file
a post-effective amendment to the Shelf Registration Statement, use its reasonable
best efforts 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 forty-five (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

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Effectiveness Deadline Date shall be extended by up to five 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, (x) the Company proposes to file a registration
statement under the Securities Act providing for a public offering of the Company’s
securities, other than the Shelf Registration Statement, any shelf registration statement
under the Prior Registration Rights Agreement or the Shareholders Agreement, 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”) and (y) in the case of an initial public offering of the Company, the Prior
Registration Rights Agreement does not prohibit the inclusion of Transfer Restricted
Securities from being included in such offering, 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, (ii) the Shelf Registration
Statement is not then effective or (iii) Transfer Restricted Securities not included in an
effective Shelf Registration Statement or Subsequent Shelf Registration Statement, 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 or Subsequent Shelf Registration
Statement until such Transfer Restricted Securities have been sold under the Piggyback
Registration Statement or Subsequent Shelf Registration Statement; provided, however, that
at such time, the Company may remove from the Shelf Registration Statement or Subsequent
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

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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 participating in
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 or an underwritten offering pursuant to Section 9 shall enter
into an underwriting agreement in 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 regarding, or agreements with, the Company or the Underwriters other than
representations, warranties or agreements that are customary and reasonably requested by the
Underwriters, provided, that such representations and warranties shall not relate to Company
or its business or operations. 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 (if the registration statement is filed on behalf of the Company for
an offering of newly issued shares by the Company) or to AREP O&G Holdings LLC or its
permitted assigns (collectively, “AREP”) (if such Piggyback Registration Statement is being
filed pursuant to a demand by AREP pursuant to Section 2 of the Shareholders Agreement); and
second, to each of the Prior Holders requesting inclusion of their securities in such
registration statement, but only to the extent such Prior Holders are entitled to priority
over Holders of Transferred Restricted Securities under the Prior Registration Rights
Agreement; and third, each of the Holders requesting inclusion of their Transfer Restricted
Securities in such Piggyback Registration Statement together with all holders requesting
inclusion of their securities in such registration statement in accordance with the
Shareholder Agreement, on a pro rata basis based on the total number of such securities
requested to be included, provided that if the Piggyback Registration Statement is filed
pursuant to a demand registration right effected by AREP pursuant to the Shareholders
Agreement, the inclusion of securities of AREP in such registration statement shall take
priority over any Transfer Restricted Securities of any Holders or other shareholders who
are party to the Shareholders Agreement. If any Holder disapproves of the terms of any
Underwritten Registration,

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such Holder may elect to withdraw therefrom by written notice to the Company and the
Managing Underwriters, delivered at least five (5) 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 underwritten public offering of the Company’s equity securities
consummated pursuant to a Piggyback Registration Statement, Holders that hold Transfer
Restricted Securities representing 5% or more of the outstanding shares of Common Stock of
the Company, whether or not they sell in the initial public offering, will not be able to
sell any remaining Transfer Restricted Securities not included in such Piggyback
Registration Statement for a period reasonably requested by the Underwriters not to exceed
one hundred eighty (180) days following the effective date of such 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 and AREP and each holder of more than
5% of the outstanding shares of Common Stock of the Company are subject to the same
restriction for the entire time.

     (f) Upon any underwritten offering consummated pursuant to an Underwritten
Registration, Holders that sell Transfer Restricted Securities pursuant to such Underwritten
Registration will not be able to sell any remaining Transfer Restricted Securities not
included in such Underwritten Registration for a period reasonably requested by the
Underwriters not to exceed ninety (90) days (one hundred eighty (180) days in the case of an
initial public offering) following the effective date of such Underwritten Registration,
provided that if (i) 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, and (ii) each of AREP and any holder
of more than 5% of the outstanding shares of Common Stock of the Company that are selling in
the offering are subject to a shorter or no restrictive period or exceptions from such
restrictive period, the Holders of Transfer Restricted Securities shall be subject to such
shorter or no restrictive period and be entitled to any such exception for the entire time.

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     (g) 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 or a post-effective amendment
required to be filed by Section 2(f) is not tendered effective by the applicable
Amendment Effectiveness Deadline Date; or

     (iii) after the Shelf Registration Statement has been declared effective,
Transfer Restricted Securities may not be disposed of by a Holder as a result of the
delivery of a Suspension Notice or the Shelf Registration Statement shall cease for
any reason (except as provided in Section 5(b)(ii) hereof) to remain continuously
effective, supplemented and amended as required by the Securities Act and by the
provisions hereof to the extent necessary to ensure that (A) it is available for
resales by the Holders of Transfer Restricted Securities 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; or

     (iv) the Company fails to comply with Section 5(b)(xvii) at any time during the
Effectiveness Period;

(each such event referred to in foregoing clauses (i) through (iv), a (“Registration
Default”)), the Company hereby agrees to pay damages (“Liquidated Damages”) with respect to
the Transfer Restricted Securities for a Registration Default:

     (i) at a per month rate of 0.25% of the purchase price of the Purchased
Securities under the Purchase Agreement to which such Transfer Restricted Securities
relates, which shall accrue daily from the date of such Registration Default with
respect to the first month or ratable portion of a month following the incurrence of a
Registration Default, and such rate will increase by an additional 0.25% per month
with respect to each subsequent month to a maximum rate of 0.75% per month with
respect to all Registration Defaults until the earlier of (A) all Registration
Defaults have been cured, and (B) the date on which 6.0% of the purchase price of the
Purchased Securities under the Purchase Agreement to which the Transfer Restricted
Securities relates has been paid with respect to the Registration Defaults, at which
time the Liquidated Damages shall be calculated pursuant to clause (ii) below; and

     (ii) at a per annum rate of 2.0% of the purchase price of the Purchased
Securities under the Purchase Agreement to which such Transfer Restricted

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Securities relates, which shall accrue daily until all Registration Defaults have
been cured.

     (b) All accrued Liquidated Damages shall be paid in cash 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.

     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 or Subsequent Shelf
Registration Statement or any registration statement pursuant to Section 3 or 9, the Company
shall comply with all the provisions of Section 5(b) hereof and shall use its reasonable
best efforts to effect such registration in accordance with the terms hereof to permit the
sale of the Transfer Restricted Securities.

     (b) In connection with the Shelf Registration Statement or Subsequent Shelf
Registration Statement or any registration statement pursuant to Section 3 or 9 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 reasonable best efforts to keep the registration statement continuously effective
during the Effectiveness Period (in the case of a Shelf Registration Statement of
Subsequent Shelf Registration Statement) or until all securities to be sold thereunder
have been sold pursuant to such registration statement (in the case of a registration
statement pursuant to Section 3 or 9) (as applicable, the “Applicable Period”); upon
the occurrence of any event that would cause the 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
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 reasonable best efforts to cause such amendment to
be declared effective and the registration statement and the related Prospectus to
become usable for their intended purposes as soon as practicable thereafter.

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     (ii) Notwithstanding Section 5(b)(i) hereof, the Company may suspend the
effectiveness of the Shelf Registration Statement or any Subsequent Shelf Registration
(each such period, a “Suspension Period”). Upon such suspension, the Company shall
give notice to the Holders that the availability of the registration statement is
suspended and, upon actual receipt of any such notice, each Holder agrees not to sell
any Transfer Restricted Securities pursuant to the registration statement until such
Holder’s receipt of copies of the supplemented or amended Prospectus provided for in
Section 5(b) hereof. The Suspension Period shall not exceed an aggregate of 90 days in
any 360-day 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, the Subsequent Shelf Registration
Statement and any registration statement pursuant to Section 3 or Section 3 or 9 as
may be necessary to keep the registration statement effective during the Applicable
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 registration statement during
the Applicable Period in accordance with the intended method or methods of
distribution by the selling Holders thereof set forth in the registration statement or
supplement to the Prospectus.

     (iv) Advise any selling Holder that has provided in writing to the Company a
telephone or facsimile number and address for notice, promptly and, if requested by
such selling Holder, 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 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 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 registration 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,

12

 

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 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 registration
statement or the Prospectus in order to make the statements therein not
misleading.

     (v) If at any time the Commission shall issue any stop order suspending the
effectiveness of the 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 best 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 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 registration statement and
any Holder that is a registered broker dealer under the Exchange Act (a “BD Holder”),
and any attorney or accountant retained by such selling Holders, 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, promptly incorporate in the
registration statement or Prospectus, pursuant to a supplement or post-effective
amendment if necessary, such information as such selling 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)(iv)(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.

13

 

     (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
registration statement; provided, however, that the Company shall not be required (A)
to register or qualify as a foreign corporation 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
any offering pursuant to the 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 reasonable best efforts to cause the Transfer Restricted Securities
covered by the registration statement to be registered with or approved by such other
U.S. governmental agencies or authorities as may be necessary to enable the selling
Holders 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
reasonable best efforts to prepare a supplement or post-effective amendment to the
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 not misleading.

     (xiii) Provide CUSIP numbers for all Transfer Restricted Securities not later
than the effective date of the 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.

14

 

     (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 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 registration statement.

     (xvii) Use its reasonable best 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, The
Nasdaq Global Market or the Nasdaq Global Select Market (as soon as practicable)
including 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
3 or 9 hereof, make such representations and warranties to the selling Holders and the
Underwriters, in form, substance and scope as are customarily made by issuers to
selling Holders and Underwriters in primary underwritten offerings.

     (xx) In connection with any underwritten offering conducted pursuant to Section 3
or 9 hereof and in connection with the effectiveness of any Shelf Registration
Statement or Subsequent Shelf Registration Statement, obtain opinions and negative
assurances of counsel to the Company and updates thereof (which counsel and opinions
and negative assurances (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 and
negative assurances 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
3 or 9 hereof and in connection with the effectiveness of any Shelf Registration
Statement or any Subsequent Shelf Registration Statement, 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 or
predecessor of the Company or of any

15

 

business acquired by the Company for which financial statements and financial
data are, or are required to be, included in the Shelf Registration Statement or
Subsequent 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.

(xxii) In connection with any underwritten offering conducted pursuant to Section
3 or 9 hereof, deliver such documents and certificates as may be reasonably requested
by a Majority of Holders and the Managing Underwriters or any BD Holder, including
those to evidence compliance with Section 5(b)(iii) and 5(b)(xii) hereof and with any
customary conditions contained in the Purchase Agreement or other agreement entered
into by the Company.

(xxiii) In connection with underwritten offering conducted pursuant to Section 3
or 9 hereof, the Company shall, if requested, promptly include or incorporate in a
Prospectus supplement or post-effective amendment to the 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) 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.

     (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)(ii) or (iv) 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)(xii) 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.

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

16

 

Prospectus covering such Transfer Restricted Securities that was current at the time of receipt of
such Suspension Notice.

     (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 Subsequent 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(e) 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. Any sale of any Transfer Restricted Securities by any Holder shall constitute a
representation and warranty by such Holder that the information relating to such Holder and
its Plan of Distribution is as set forth in the Prospectus delivered by such Holder in
connection with such disposition, that such Prospectus does not as of the time of such sale
contain any untrue statement of a material fact relating to or provided by such Holder or
its Plan of Distribution and that such Prospectus does not as of the time of such sale omit
to state any material fact relating to or provided by such Holder or its Plan of
Distribution necessary to make the statements in such Prospectus, in the light of the
circumstances under which they were made not misleading. The Company may exclude from such
Shelf Registration Statement or Subsequent Shelf Registration Statement the Common Stock of
any Holder that unreasonably fails to furnish such information within a reasonable time
after receiving such request. The Company shall not include in any registration statement
any information regarding, relating to, or referring to any Holder or its Plan of
Distribution without the approval of such Holder in writing (not to be unreasonably
withheld).

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 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;

17

 

     (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;

     (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, 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, any Subsequent Shelf Registration Statement
or any registration statement pursuant to Section 3 or 9 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 not misleading,

18

 

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 relating to a Holder by or on behalf
of such Holder (or its related Indemnified Holder) specifically for use therein.

     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, any Subsequent Shelf Registration Statement
or any registration statement pursuant to Section 3 or 9, 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 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, Affiliates and agents 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 a registration statement. In no event
shall any Holder, its directors, officers and employees, Affiliates and agents or any person
who controls such Holder be liable or responsible for any amount in excess of net proceeds
received by such Holder with respect to its sale of Transfer Restricted Securities pursuant
to a Shelf Registration Statement, Subsequent Shelf Registration Statement or registration
statement pursuant to Section 3 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 and employees, Affiliates and agents 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) of this Section 7 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

19

 

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 7 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 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):

20

 

     (i) in such proportion as is appropriate to reflect 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, 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 faults
referred to in Section 7(d)(i) but also 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), 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
net proceeds from the offering of the Purchased Securities 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 written information furnished to the Company by or on behalf of the Holders
specifically for use in a registration statement 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).

     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

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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. From and after the time a registration statement
covering the Common Stock of Company is declared effective until such time as there are no longer
any Transfer Related Securities, the Company shall cause its Common Stock to be registered under
Section 12 of the Exchange Act.

     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)
Holders of at least 15.0% in aggregate amount of the Transfer Restricted Securities (on an
as-exercised and as-converted basis) shall request such an offering and (ii) at least such
aggregate amount of such Transfer Restricted Securities or Transfer Related Securities with
an aggregate value of at least $50 million shall be included in such offering; and provided
further that the Company shall not be obligated to participate in more than two underwritten
offerings 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
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 Holders of a majority of Transfer Restricted Securities requesting such
underwritten offering. The Company shall make all such filings with the Commission,
including filing all necessary post effective amendments and supplements, as necessary to
effect the offer and sale of Transfer Restricted Securities sought to be sold in such
underwritten effort.

     (b) No person may participate in any underwritten offering 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. No securities other than Transfer Restricted Securities shall be
offered in such underwriting.

     (c) The Holders participating in any underwritten offering shall be responsible for any
underwriting discounts and commissions subject to Section 6 and Section 7 and fees and
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

22

 

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 shall be entitled to suspend the effectiveness of
the Shelf Registration statement pursuant to Section 5(b)(ii).

     (d) The Company shall take all such other actions as the Holders or the Managing
Underwriters participating in an underwritten offering pursuant to this Section 9 may
reasonably request in order to expedite or facilitate such offering of senior management of
the Company to provide customary due diligence assistance in connection with any offering
and to participate in customary “road show” presentations in connection with any
underwritten offerings in substantially the same manner as they would in an underwritten
primary registered public offering by the Company of its Common Stock. Each Holder may, at
its option, require that any or all of the representations and warranties by, and the other
agreements on the part of, the Company to and for the benefit of such Underwriters also be
made to and for such Holder’s benefit and that any or all of the conditions precedent to the
obligations of such Underwriters under such underwriting agreement also be conditions
precedent to its obligations. 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 that are customary and reasonably requested by the Underwriters,
provided, that such representations and warranties shall not relate to Company or its
business or operations. If any Holder disapproves of the terms of an underwriting, such
Holder may elect to withdraw therefrom by notice to the Company and the Managing
Underwriters.

     10. Miscellaneous.

     (a) Remedies. The Company acknowledges and agrees that any failure by the Company to
comply with its obligations hereunder may result in material irreparable injury to 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 or in the Purchase
Agreement or granted by law, including recovery of liquidated or other damages, any Holder
may obtain such relief as may be required to specifically enforce the Company’s obligations
hereunder. The Company further agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

     (b) Actions Affecting Transfer Restricted Securities. The Company shall not, directly
or indirectly, take any action 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

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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 after the date hereof grant to any of its securityholders (other than the
Holders of Transfer Restricted Securities in such capacity) the right to include any of its
securities in the Shelf Registration Statement, Subsequent Shelf Registration Statement or
the Piggyback Registration Statement or other registration statement, if any, provided for
in this Agreement other than the Transfer Restricted Securities, unless pursuant to such
grant, such holder may include such securities on the Holders’ Shelf Registration Statement,
Subsequent Shelf Registration Statement or any Piggyback Registration Statement or other
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.

     (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 a Holder or Holders in a manner different that a manner in which it
affects the rights of other holders, the Company shall obtain the written consent of such
adversely affected Holders. 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:

24

 

     (i) if to a Holder, at the address set forth on the records of the transfer agent
of the Common Stock:

With a copy (which shall not constitute notice) to:

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

Facsimile: 212-751-4864

Attention: Joshua Tinkelman; and

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

With a copy (which shall not constitute notice) to:

Vinson & Elkins LLP

First City Tower

1001 Fannin Street, Suite 2300

Houston, Texas 77002

Facsimile: 713-615-5531

Attention: T. Mark Kelly

     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, the directors, officers, employees, Affiliates and agents of
any Holder, or by any person who controls any Holder, 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

25

 

waives any objection which it may now or hereafter have to the laying of 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, the directors, officers, employees,
Affiliates and agents of any Holder, or by any person who controls any Holder, 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 remain Transfer Restricted Securities. 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, the directors, officers, employees, Affiliates and agents of any
Holder, or by any Person who controls any Holder, 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.

     (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.

26

 

     (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.

27

 

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

	 	 	 	 	 
	 	COMPANY:

RIATA ENERGY, INC.

 	 
	 	By:  	/s/  Tom
L. Ward	 
	 	 	Name:  	Tom L. Ward 	 
	 	 	Title:  	Chairman and Chief Executive
Officer 	 
	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	THE PURCHASERS:

BLUE RIDGE INVESTMENTS, L.L.C.

 	 
	 	By:  	/s/  Ray
Cubero	 
	 	 	Name:  	Ray Cubero 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	CENTAURUS CAPITAL, LLC

 	 
	 	By:  	/s/  John
D. Arnold	 
	 	 	Name:  	John D. Arnold 	 
	 	 	Title: Managing Member	 	 
	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE SECURITIES (USA), LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	CREDIT SUISSE SECURITIES (USA), LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Todd Sandoz	 	
	 

	 	 	 	 

Name: Todd Sandoz
	 	 
	 

	 	 	 	Title: Managing Director	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	DALEA PARTNERS

 	 
	 	By:  	/s/ N. Malone Mitchell	 
	 	 	Name:  	N. Malone Mitchell 	 
	 	 	Title:  	Partner 	 
	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	FARALLON CAPITAL PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	FARALLON PARTNERS, L.L.C.,	 	 
	 

	 	 	 	their General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Monica R. Landry	 	 
	 

	 	 	 	 

Name: Monica R. Landry
	 	 
	 

	 	 	 	Title: Managing Member	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	 	FARALLON CAPITAL INSTITUTIONAL PARTNERS, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	FARALLON PARTNERS, L.L.C.,
	 

	 	 	 	their General Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Monica R. Landry
	 

	 	 	 	 
	 

	 	 	 	Name:  Monica R. Landry
	 

	 	 	 	Title: Managing Member

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	FARALLON CAPITAL INSTITUTIONAL PARTNERS II, L.P.	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	FARALLON PARTNERS, L.L.C.,	 	 
	 
	 	 	 	their General Partner	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Monica R. Landry	 	 
	 
	 	 	 	 

Name: Monica R. Landry
	 	 
	 

	 	 	 	Title: Managing Member	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	FARALLON CAPITAL INSTITUTIONAL PARTNERS III, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	FARALLON PARTNERS, L.L.C.,	 	 
	 

	 	 	 	their General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Monica R. Landry	 	 
	 

	 	 	 	 

Name: Monica R. Landry
	 	 
	 

	 	 	 	Title: Managing Member	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TINICUM PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	FARALLON PARTNERS, L.L.C.,	 	 
	 

	 	 	 	their General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Monica R. Landry	 	 
	 

	 	 	 	 

Name: Monica R. Landry
	 	 
	 

	 	 	 	Title: Managing Member	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	GOLDMAN, SACHS & CO.,	 	 
	 	 	on behalf of its Principal Strategies Group	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Ken Eberts	 	 
	 

	 	 	 	 

Name: Ken Eberts
	 	 
	 

	 	 	 	Title: Managing Director	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	HBK FUND L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	HBK INVESTMENTS L.P.,	 	 
	 

	 	 	 	Investment Advisor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ J. Baker Gentry, Jr.	 	 
	 

	 	 	 	 

Name: J. Baker Gentry, Jr.
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	HIGHBRIDGE INTERNATIONAL LLC
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	HIGHBRIDGE CAPITAL MANAGEMENT, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	/s/  Adam J. Chill	 	 
	 

	 	 	 	 

Name: Adam J. Chill
	 	 
	 

	 	 	 	Title: Managing Director	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	INVESTMENT PARTNERS (C) LTD.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	QUELLOS CAPITAL MANAGEMENT, L.P., its Investment Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Marie M. Bender	 	 
	 

	 	 	 	 

Name: Marie M. Bender
	 	 
	 

	 	 	 	Title: General Counsel	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Paul Bonde	 	 
	 

	 	 	 	 

Name: Paul Bonde
	 	 
	 

	 	 	 	Title: Principal, Investment
Operations	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	KINGS ROAD INVESTMENTS LTD.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	POLYGON INVESTMENT PARTNERS
L.P., its Investment Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Brandon L. Jones	 	 
	 

	 	 	 	 

Name: Brandon L. Jones
	 	 
	 

	 	 	 	Title: Co-Head, Private Investments	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	LB I GROUP INC.

 	 
	 	By:  	/s/ Paul H. Tice	 
	 	 	Name: Paul H. Tice
	 	 	Title: Managing Director
	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	LEONARDO, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	LEONARDO CAPITAL
MANAGEMENT, INC., 

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	ANGELO, GORDON & CO., L.P.,
its Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph R. Wekselblatt	 	 
	 

	 	 	 	 

Name: Joseph R. Wekselblatt

	 

	 	 	 	Title: Chief Financial Officer

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	MAGNETAR CAPITAL FUND, LP
	 
	 	 	 	 	 	 
	 

	 	By:
	 	MAGNETAR FINANCIAL LLC,	 	 
	 

	 	 	 	its General Partner	 	 
	 

	 	By:	 	/s/ Paul Smith	 	 
	 

	 	 	 	 

Name: Paul Smith
	 	 
	 

	 	 	 	Title: General Counsel	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	MAGNETAR CAPITAL FUND, LTD
	 
	 	 	 	 	 	 
	 

	 	By:
	 	MAGNETAR FINANCIAL LLC,	 	 
	 

	 	 	 	its Investment Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Paul Smith	 	 
	 

	 	 	 	 

Name: Paul Smith
	 	 
	 

	 	 	 	Title: General Counsel	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	MOORE MACRO FUND, LP
	 
	 	 	 	 	 	 
	 

	 	By:
	 	MOORE CAPITAL MANAGEMENT, LLC	 	 
	 

	 	 	 	Trading Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Anthony Gallagher	 	 
	 

	 	 	 	 

Name: Anthony Gallagher
	 	 
	 

	 	 	 	Title: Director of Operations	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	OSPRAIE SANDRIDGE HOLDINGS LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	THE OSPRAIE FUND, LP,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	OSPRAIE GROUP, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard Puma	 	 
	 

	 	 	 	 

Name: Richard Puma
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	OSPRAIE SPECIAL OPPORTUNITIES MASTER ALTERNATIVE
HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	OSPRAIE ASSOCIATES, LLC,	 	 
	 

	 	 	 	its Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	OSPRAIE ASSOCIATES HOLDINGS, LLC,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	OSPRAIE GROUP, LLC,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard Puma	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Richard Puma	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	PORTSIDE GROWTH AND OPPORTUNITY FUND	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey Solomon	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jeffrey Solomon	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	QRA SR, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	QUELLOS PRIVATE CAPITAL MARKETS, L.P.,
its Investment Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	QUELLOS CAPITAL MANAGEMENT, L.P.,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Marie M. Bender	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Marie M. Bender	 	 
	 

	 	 	 	Title: General Counsel	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Paul Bonde	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Paul Bonde	 	 
	 

	 	 	 	Title: Principal, Investment
Operations	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	RCG BALDWIN, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RAMIUS CAPITAL GROUP, L.L.C.,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	C4S & CO., L.L.C.,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Jeffrey Solomon	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jeffrey Solomon	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	RCG CARPATHIA MASTER FUND, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Jeffrey Solomon	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jeffrey Solomon	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	RCG ENERGY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RAMIUS CAPITAL GROUP, L.L.C.,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	C4S & CO., L.L.C.,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Jeffrey Solomon	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jeffrey Solomon	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	SILVER OAK CAPITAL, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Joseph R. Wekselblatt	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Joseph R. Wekselblatt	 	 
	 

	 	 	 	Title: Manager	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	STANFIELD OFFSHORE LEVERAGED ASSETS, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	STANFIELD CAPITAL PARTNERS, LLC	 	 
	 

	 	 	 	its Investment Advisor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Chris Pucillo	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Chris Pucillo	 	 
	 

	 	 	 	Title: Portfolio Manager	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TCW ASSET MANAGEMENT COMPANY,	 	 
	 	 	a California corporation, as Investment Manager under the
Amended and Restated Investment Management and Custody
Agreement dated as of December 3, 2003 among Ensign Peak
Advisors, Inc., TCW Asset Management Company and Trust
Company of the West, a California trust company, as
Sub-Custodian	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Talbot	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kurt Talbot
	 

	 	 	 	Title: Managing Director
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Patrick Hickey	 	
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Patrick Hickey
	 

	 	 	 	Title: Senior Vice President

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TCW ASSET MANAGEMENT COMPANY,	 	 
	 	 	a California corporation, as Investment Manager under the
Amended and Restated Investment Management and Custody
Agreement dated as of March 18, 2004 among ING Life Insurance
and Annuity Company, TCW Asset Management Company and Trust
Company of the West, a California trust company, as
Sub-Custodian	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Talbot	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kurt Talbot
	 

	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Patrick Hickey	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Patrick Hickey
	 

	 	 	 	Title: Senior Vice President	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TCW ENERGY FUND XB — NL, L.P.,	 	 
	 	 	a California limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	TCW (ENERGY X) LLC,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	TCW ASSET MANAGEMENT	 	 
	 

	 	 	 	COMPANY, its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Talbot	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	Kurt Talbot	 
	 	 	Title:	Managing Director	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Patrick Hickey	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	Patrick Hickey	 
	 	 	Title:	Senior Vice President	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TCW ENERGY FUND XD — NL, L.P.,	 	 
	 	 	a California limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	TCW (ENERGY X) LLC,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	TCW ASSET MANAGEMENT	 	 
	 

	 	 	 	COMPANY, its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Talbot	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	Kurt Talbot	 
	 	 	Title:	Managing Director	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Patrick Hickey	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	Patrick Hickey	 
	 	 	Title:	Senior Vice President	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TEMPO MASTER FUND LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	JD CAPITAL MANAGEMENT LLC	 	 
	 

	 	 	 	(its Investment Advisor)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Donald McCarthy	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Donald McCarthy	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TLW PROPERTIES, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tom L. Ward	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Tom L. Ward	 	 
	 

	 	 	 	Title: Manager	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	UBS O’CONNOR LLC fbo O’CONNOR GLOBAL CONVERTIBLE ARBITRAGE
MASTER LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Locasto	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: George Locasto	 	 
	 

	 	 	 	Title: Managing Director	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	UBS O’CONNOR LLC fbo O’CONNOR GLOBAL CONVERTIBLE ARBITRAGE II
MASTER LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Locasto	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: George Locasto	 	 
	 

	 	 	 	Title: Managing Director	 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	UBS O’CONNOR LLC fbo O’CONNOR PIPES CORPORATE STRATEGIES
MASTER LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Locasto	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: George Locasto	 	 
	 

	 	 	 	Title: Managing Director	 	 

[Signature Page to Registration Rights Agreement]

 

 

Annex A

RIATA ENERGY, INC.

FORM OF SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

     The undersigned beneficial holder of securities of Riata Energy, Inc. (the “Company”)
understands that the Company has filed or intends to file with the Securities and Exchange
Commission (the “Commission”) a registration statement (the “Shelf Registration Statement”) for the
registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Transfer Restricted Securities, in accordance with the terms of the registration
rights agreement, to be dated as of November 21, 2006 (the “Registration Rights Agreement”),
between the Company and the Purchasers named therein. A copy of the Registration Rights Agreement
is available from the Company upon request at the address set forth below. All capitalized terms
not otherwise defined herein shall have the meaning ascribed thereto in the Registration Rights
Agreement.

     Each beneficial holder of Transfer Restricted Securities (each a “beneficial owner”), is
entitled to the benefits of the Registration Rights Agreement. In order to sell or otherwise
dispose of any Transfer Restricted Securities pursuant to the Shelf Registration Statement or any
Subsequent Shelf Registration Statement, a beneficial owner of Transfer Restricted Securities
generally will be required to be named as a selling securityholder in the related prospectus,
deliver a prospectus to purchasers of Transfer Restricted Securities and be bound by those
provisions of the Registration Rights Agreement applicable to such beneficial owner (including
certain indemnification provisions as described below). Beneficial owners that do not complete this
Notice and Questionnaire and deliver it to the Company as provided below will not be named as
selling securityholders in the prospectus and therefore will not be permitted to sell any Transfer
Restricted Securities pursuant to the Shelf Registration Statement or any Subsequent Shelf
Registration Statement. Beneficial owners are encouraged to complete and deliver this Notice and
Questionnaire prior to the effectiveness of the Shelf Registration Statement or any Subsequent
Shelf Registration Statement so that such beneficial owners may be named as selling securityholders
in the related prospectus at the time of effectiveness. Upon receipt of a completed Notice and
Questionnaire from a beneficial owner following the effectiveness of the Shelf Registration
Statement or any Subsequent Shelf Registration Statement, the Company will, within ten (10)
business days after such receipt, file such amendments to the Shelf Registration Statement or any
Subsequent Shelf Registration Statement or supplements to the related prospectus as are necessary
to permit such holder to deliver such prospectus to purchasers of Transfer Restricted Securities.
The Company has agreed to pay liquidated damages pursuant to the Registration Rights Agreement
under certain circumstances set forth therein.

     Certain legal consequences arise from being named as a selling securityholder in the Shelf
Registration Statement or any Subsequent Shelf Registration Statement and the related prospectus.
Accordingly, holders and beneficial owners of Transfer Restricted Securities are advised to consult
their own securities law counsel regarding the consequences of being named or not being named as a
selling securityholder in the Shelf Registration Statement or any Subsequent Shelf Registration
Statement and the related prospectus.

Annex A - 1

 

 

NOTICE

     The undersigned beneficial owner (the “Selling Securityholder”) of Transfer Restricted
Securities hereby gives notice to the Company of its intention to sell or otherwise dispose of
Transfer Restricted Securities beneficially owned by it and listed below in Item 3 (unless
otherwise specified under such Item 3) pursuant to the Shelf Registration Statement or any
Subsequent Shelf Registration Statement. The undersigned, by signing and returning this Notice and
Questionnaire, understands that it will be bound by the terms and conditions of this Notice and
Questionnaire and the Registration Rights Agreement.

     Pursuant to the Registration Rights Agreement, the undersigned has agreed to indemnify and
hold harmless the Company’s directors and officers and each person, if any, who controls the
Company within the meaning of either Section 15 of the Securities Act or Section 20 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), from and against certain losses
arising in connection with statements concerning the undersigned made, with the approval of the
undersigned, not to be unreasonably withheld, in the Company’s Shelf Registration Statement or any
Subsequent Shelf Registration Statement or the related prospectus in reliance upon the information
provided in this Notice and Questionnaire.

     If the Selling Securityholder transfers all or any portion of the Transfer Restricted
Securities listed in Item 3 below after the date on which such information is provided to the
Company, the Selling Securityholder agrees to notify the transferee(s) at the time of the transfer
of its rights and obligations under this Notice and Questionnaire and the Registration Rights
Agreement.

Annex A
- 2

 

 

QUESTIONNAIRE

     Please respond to every item, even if your response is “none.” If you need more space for
any response, please attach additional sheets of paper. Please be sure to indicate your name and
the number of the item being responded to on each such additional sheet of paper, and to sign each
such additional sheet of paper before attaching it to this Questionnaire. Please note that you may
be asked to answer additional questions depending on your responses to the following questions.

     If you have any questions about the contents of this Questionnaire or as to who should
complete this Questionnaire, please contact the General Counsel of the Company at telephone number:

(405) 753-5600

     The undersigned hereby provides the following information to the Company and represents and
warrants that such information is accurate and complete:

	1.	 	Your Identity and Background as the Beneficial Owner of the Transfer Restricted Securities.

(a) Your full legal name:

 

(b) Your business address (including street address) (or residence if no business address),
telephone number and facsimile number:

Address:

 

 

Telephone No.:

 

Fax No.:

 

(c) Are you a broker-dealer registered pursuant to Section 15 of the Exchange Act?

Yes.

No.

(d) If your response to Item 1(c) above is no, are you an “affiliate” of a broker-dealer
registered pursuant to Section 15 of the Exchange Act?

Yes.

No.

Annex A
- 3

 

 

For the purposes of this Item 1(d), an “affiliate” of a registered broker-dealer includes any
person that directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such broker-dealer, and does not include any
individuals employed by such broker-dealer or its affiliates.

(e) Full legal name of person through which you hold the Transfer Restricted Securities — (i.e.,
name of your broker or the DTC participant, if applicable, through which your Transfer
Restricted Securities are held):

Name of Broker:

 

DTC No.:

 

Contact person:

 

Telephone No.:

 

	2.	 	Your Relationship with the Company.

(a) Have you or any of your affiliates, officers, directors or principal equity holders (owners
of 5% or more of the equity securities of the undersigned) held any position or office or have
you had any other material relationship with the Company (or its predecessors or affiliates)
within the past three years?

Yes.

No.

(b) If your response to Item 2(a) above is yes, please state the nature and duration of your
relationship with the Company:

 

 

	3.	 	Your Interest in the Transfer Restricted Securities.

(a) State the type and amount of Transfer Restricted Securities beneficially owned by you:

 

State the CUSIP No(s). of such Transfer Restricted Securities beneficially owned by you:

 

Annex A - 4

 

 

(b) Other than as set forth in your response to Item 3(a) above, do you beneficially own any
other securities of the Company?

Yes.

No.

(c) If your answer to Item 3(b) above is yes, state the type, the aggregate amount and CUSIP No.
of such other securities of the Company beneficially owned by you:

Type:

 

Aggregate amount:

 

CUSIP No.:

 

(d) Did you acquire the securities listed in Item 3(a) above in the ordinary course of business

Yes.

No.

(e) At the time of your purchase of the securities listed in Item 3(a) above, did you have any
agreements or understandings, direct or indirect, with any person to distribute the securities

Yes.

No.

(f) If your response to Item 3(e) above is yes, please describe such agreements or
understandings:

 

 

	4.	 	Nature of your Beneficial Ownership.

(a) Check if the beneficial owner set forth in your response to Item 1(a) is any of the below:

(i) A reporting company under the Exchange Act.

(ii) A majority owned subsidiary of a reporting company under the Exchange Act.

(iii) A registered investment fund under the 1940 Act.

Annex A - 5

 

 

(b) If the beneficial owner of the Transfer Restricted Securities set forth in your response to
Item 1(a) above is a limited partnership, state the names of the general partners of such
limited partnership:

 

 

     (i) With respect to each general partner listed in Item 4(b) above who is not a natural
person and is not publicly-held, name each shareholder (or holder of partnership interests, if
applicable) of such general partner. If any of these named shareholders are not natural persons
or publicly-held entities, please provide the same information. This process should be repeated
until you reach natural persons or a publicly-held entity.

 

 

(c) Name your controlling shareholder(s) (the “Controlling Entity”). If the Controlling Entity
is not a natural person and is not a publicly-held entity, name each shareholder of such
Controlling Entity. If any of these named shareholders are not natural persons or publicly-held
entities, please provide the same information. This process should be repeated until you reach
natural persons or a publicly-held entity.

     (i) (A) Full legal name of Controlling Entity(ies) or natural person(s) who have sole or
shared voting or dispositive power over the Transfer Restricted Securities:

 

 

     (B) Business address (including street address) (or residence if no business address),
telephone number and facsimile number of such person(s):

Address:

 

Telephone No.:

 

Fax No.:

 

(C) Name of shareholders:

 

 

(ii) (A) Full legal name of Controlling Entity(ies):

Annex A - 6

 

 

 

     (B) Business address (including street address) (or residence if no business address),
telephone number and facsimile number of such person(s):

Address:

 

 

Telephone No.:

 

 

Fax No.:

 

 

(iii) Name of shareholders:

 

 

5. Plan of Distribution.

Except as set forth below, the undersigned (including its donees or pledgees) intends to
distribute the Transfer Restricted Securities listed above in Item 3 pursuant to the Shelf
Registration Statement or Subsequent Shelf Registration Statement only as follows (if at all):
Such Transfer Restricted Securities may be sold from time to time directly by the undersigned
or, alternatively, through Underwriters, broker-dealers or agents. If the Transfer Restricted
Securities are sold through Underwriters, broker-dealers or agents, the Selling Securityholder
will be responsible for underwriting discounts or commissions or agents’ commissions in
accordance with the Registration Rights Agreement. Such Transfer Restricted Securities may be
sold in one or more transactions at fixed prices, at prevailing market prices at the time of
sale, at varying prices determined at the time of sale or at negotiated prices. Such sales may
be effected in transactions (which may involve block transactions) (i) on any national
securities exchange or quotation service on which the Transfer Restricted Securities may be
listed or quoted at the time of sale, (ii) in the over-the-counter market, (iii) in transactions
otherwise than on such exchanges or services or in the over-the-counter market. The Selling
Securityholder may pledge or grant a security interest in some or all of the Transfer Restricted
Securities owned by it and, if it defaults in the performance of its securited obligations, the
pledgees or secured parties may offer and sell the Transfer Restricted Securities from time to
time pursuant to the prospectus. The Selling Securityholder also may transfer and donate the
Transfer Restricted Securities in other

Annex A - 7

 

 

circumstances in which case the transferees, donees, pledgees or other successors in interest
will be the selling securityholder for purposes of this prospectus.

State any exceptions here:

 

 

Note: In no event will such method(s) of distribution take the form of an underwritten offering
of the Transfer Restricted Securities without the prior written agreement of the Company.

          The undersigned acknowledges its obligation to comply with the provisions of the Exchange Act
and the rules thereunder relating to stock manipulation, particularly Regulation M thereunder (or
any successor rules or regulations), in connection with any offering of Transfer Restricted
Securities pursuant to the Registration Rights Agreement. The undersigned agrees that neither it
nor any person acting on its behalf will engage in any transaction in violation of such provisions.

          The undersigned beneficial owner and selling securityholder hereby acknowledges its
obligations under the Registration Rights Agreement to indemnify and hold harmless certain persons
as set forth therein. Pursuant to the Registration Rights Agreement, the Company has agreed under
certain circumstances to indemnify the undersigned beneficial owner and selling securityholder
against certain liabilities.

          In accordance with the undersigned’s obligation under the Registration Rights Agreement to
provide such information as may be required by law for inclusion in the Shelf Registration
Statement or Subsequent Shelf Registration Statement, the undersigned agrees to promptly notify the
Company of any inaccuracies or changes in the information provided herein that may occur subsequent
to the date hereof at any time while the Shelf Registration Statement or Subsequent Shelf
Registration Statement remains effective.

          All notices to the beneficial owner hereunder and pursuant to the Registration Rights
Agreement shall be made in writing to the undersigned at the address set forth in Item 1(b) of this
Notice and Questionnaire.

          By signing below, the undersigned acknowledges that it is the beneficial owner of the Transfer
Restricted Securities set forth herein, consents to the disclosure of the information contained in
this Notice and Questionnaire and the inclusion of such information in the Shelf Registration
Statement and the related prospectus. The undersigned understands that such information will be
relied upon by the Company in connection with the preparation or amendment of the Shelf
Registration Statement and the related prospectus.

          Once this Notice and Questionnaire is executed by the undersigned beneficial owner and
received by the Company, the terms of this Notice and Questionnaire, and the representations and
warranties contained herein, shall be binding on, shall inure to the benefit of and shall be
enforceable by the respective successors, heirs, personal representatives and assigns of the
Company and the undersigned beneficial owner. This Notice and Questionnaire shall be

Annex A - 8

 

 

governed in all respects by the laws of the State of New York, without giving effect to rules
governing the conflict of laws.

Annex A - 9

 

 

     IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly authorized agent.

	 	 	 	 	 	 	 	 	 
	 	 	NAME OF BENEFICIAL OWNER:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	(Please Print)
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signature:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 	 	 
	 	 	 	 	 

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND

QUESTIONNAIRE TO RIATA ENERGY, INC. AS FOLLOWS:

Riata Energy, Inc.

1601 NW Expressway, Suite 350

Oklahoma City, OK 73118

Attention: Matthew McCann

Fax: (405) 753-5975

Annex A-10exv4w4

 

Exhibit 4.4

SECURITIES PURCHASE AGREEMENT

by and among

RIATA ENERGY, INC.

d/b/a SANDRIDGE ENERGY, INC.

and

THE PURCHASERS SET FORTH ON

SCHEDULE I HERETO

 

 

Table of Contents

	 	 	 	 	 
	 
	 	ARTICLE I	 	 
	 
	 	DEFINITIONS	 	 
	 
	 	 	 	 
	Section 1.01
	 	Definitions	 	1
	 
	 	 	 	 
	 
	 	ARTICLE II	 	 
	 
	 	SALE AND PURCHASE	 	 
	 
	 	 	 	 
	Section 2.01
	 	Sale and Purchase	 	7
	Section 2.02
	 	Closing	 	7
	Section 2.03
	 	The Company’s Deliveries	 	7
	Section 2.04
	 	Purchasers’ Deliveries	 	8
	Section 2.05
	 	Independent Nature of Purchasers’ Obligations and Rights	 	8
	 
	 	 	 	 
	 
	 	ARTICLE III	 	 
	 
	 	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	 	 
	 
	 	 	 	 
	Section 3.01
	 	No Registration	 	9
	Section 3.02
	 	No Integration	 	9
	Section 3.03
	 	Disclosure	 	9
	Section 3.04
	 	Authorization of the Purchase Agreement	 	9
	Section 3.05
	 	Authorization of the Purchased Securities	 	9
	Section 3.06
	 	Authorization and Enforceability of Operative Documents	 	10
	Section 3.07
	 	No Material Adverse Change	 	10
	Section 3.08
	 	Independent Accountants	 	10
	Section 3.09
	 	Financial Statements	 	10
	Section 3.10
	 	Incorporation and Good Standing of the Company and its Subsidiaries	 	11
	Section 3.11
	 	Capitalization and Other Capital Stock Matters	 	11
	Section 3.12
	 	Non-Contravention of Existing Instruments; No Further Authorizations or	 	 
	 
	 	Approvals Required.	 	12
	Section 3.13
	 	No Material Actions or Proceedings	 	13
	Section 3.14
	 	All Necessary Permits, etc	 	13
	Section 3.15
	 	Title to Properties	 	13
	Section 3.16
	 	Condition of Properties	 	14
	Section 3.17
	 	Company Not an “Investment Company”	 	14
	Section 3.18
	 	Insurance	 	14
	Section 3.19
	 	No Restriction on Distributions	 	15
	Section 3.20
	 	Related Party Transactions	 	15
	Section 3.21
	 	No General Solicitation	 	15
	Section 3.22
	 	Compliance with Environmental Laws	 	15
	Section 3.23
	 	Brokers	 	16
	Section 3.24
	 	Subsidiaries	 	16
	Section 3.25
	 	Acquisition Agreement, Credit Agreement and Bridge Credit Agreement.	 	16
	Section 3.26
	 	Taxes	 	17
	Section 3.27
	 	ERISA Matters	 	17

 

 

	 	 	 	 	 
	 
	 	ARTICLE IV	 	 
	 
	 	REPRESENTATIONS AND WARRANTIES OF EACH PURCHASER	 	 
	 
	 	 	 	 
	Section 4.01
	 	Authorization	 	17
	Section 4.02
	 	Unregistered Offering and Sale of Securities	 	18
	Section 4.03
	 	No Other Representations or Warranties	 	20
	 
	 	 	 	 
	 
	 	ARTICLE V	 	 
	 
	 	ADDITIONAL AGREEMENTS	 	 
	Section 5.01
	 	Limited Preemptive Right	 	20
	Section 5.02
	 	Tag-Along Rights	 	21
	Section 5.03
	 	Information Rights	 	22
	 
	 	ARTICLE VI	 	 
	 
	 	MISCELLANEOUS	 	 
	 
	 	 	 	 
	Section 6.01
	 	Use of Proceeds	 	23
	Section 6.02
	 	Interpretation; Severability	 	23
	Section 6.03
	 	Survival of Representations and Warranties	 	23
	Section 6.04
	 	Waivers; Remedies; Amendments	 	23
	Section 6.05
	 	Binding Effect; Assignment	 	24
	Section 6.06
	 	Non-Disclosure	 	24
	Section 6.07
	 	Communications	 	24
	Section 6.08
	 	Entire Agreement	 	25
	Section 6.09
	 	Governing Law	 	25
	Section 6.10
	 	Execution in Counterparts	 	25
	Section 6.11
	 	Finder’s Fee	 	25
	Section 6.12
	 	Fees and Expenses	 	25
	Section 6.13
	 	Exculpation Among Purchasers	 	26
	Section 6.14
	 	Waiver of Conflicts	 	26

Schedules and Exhibits

	 	 	 
	Schedule 2.01

	 	Purchasers
	 
	 	 
	Schedule 2.04

	 	Wiring Instructions
	 
	 	 
	Schedule 3.24

	 	Subsidiaries of the Company
	 
	 	 
	Exhibit A

	 	Form of Registration Rights Agreement
	 
	 	 
	Exhibit B

	 	Form of Warrant
	 
	 	 
	Exhibit C

	 	Opinion of Vinson & Elkins L.L.P.
	 
	 	 
	Exhibit D

	 	Opinion of In-House Counsel

ii

 

 

SECURITIES PURCHASE AGREEMENT

     This SECURITIES PURCHASE AGREEMENT, dated as of November 21, 2006 (this “Agreement”), is by
and among RIATA ENERGY, INC., a Texas corporation d/b/a SANDRIDGE ENERGY, INC. (the “Company”) and
each of the investors signatory hereto and listed for convenience on Schedule I hereto
(each a “Purchaser” and collectively, the “Purchasers”).

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions. As used in this Agreement, and unless the context requires
a different meaning, the following terms have the meanings specified in this Section 1.01.

     “Acquisition Agreement” means the Purchase and Sale Agreement, dated as of November 21, 2006,
by and among American Real Estate Partners, L.P., American Real Estate Holdings Limited
Partnership, AREP Oil & Gas Holdings LLC, AREP O & G Holdings LLC, NEG Oil & Gas, LLC, and the
Company providing for the acquisition by the Company of 100% of the membership or other equity
interests of NEG Oil & Gas, LLC.

     “Affiliate” means, with respect to a specified Person, any other Person, directly or
indirectly controlling, controlled by or under direct or indirect common control with such
specified Person. For purposes of this definition, “control” (including, with correlative
meanings, “controlling,” “controlled by,” and “under common control with”) means the power to
direct or cause the direction of the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise.

     “Available Remaining Taggable Shares Number” means at any time, (a) the Remaining Taggable
Shares Number, less (b)(i) a percentage determined by dividing (x) the number of Shares
beneficially owned by the applicable Company Principal and its Related Parties (but such number
shall not be greater than the number of Shares beneficially owned by the applicable Company
Principal and its Related Parties on the date hereof), by (y) such number of Shares beneficially
owned by the applicable Company Principal and its Related Parties) and his Permitted Transferees
(as defined in the Shareholders Agreement) plus the number of Shares beneficially owned by the
Purchasers, multiplied by (ii) the Remaining Taggable Shares Number.

     “Bridge Credit Agreement” means the Credit Agreement, dated as of November 21, 2006, among the
Company, each Lender from time to time party hereto and Bank of America, N.A.

     “Business Day” means any day other than a Saturday, Sunday, or a legal holiday for commercial
banks in New York, New York.

 

 

     “Closing” has the meaning specified in Section 2.02.

     “Closing Date” has the meaning specified in Section 2.02.

     “Code” means the Internal Revenue Code of 1986.

     “Commission” means the United States Securities and Exchange Commission.

     “Common Stock” means the common stock, par value $0.001 per share, of the Company.

     “Common Unit” means a purchase unit consisting of a number of shares of Common Stock purchased
as Purchased Securities and a Warrant that can be exercised by the surrender of a corresponding
number of shares of Common Stock.

     “Company” has the meaning specified in the introductory paragraph of this Agreement.

     “Company Equity Securities” means (i) Common Stock and (ii) Equity Interest Equivalents of the
Company.

     “Company Principals” means Tom Ward, N. Malone Mitchell 3rd or their respective
Affiliates; provided however, that in no event shall a “Company Principals” include the Company or
any of its Subsidiaries.

     “Confidentiality Agreements” means the confidentiality agreements executed by the Company and
any of the Purchasers or their affiliates in connection with or in contemplation of the offering of
the Purchased Securities.

     “Credit Agreement” means the Credit Agreement, dated as of November 21, 2006, among the
Company, each Lender from time to time party hereto and Bank of America, N.A., as Administrative
Agent and L/C Issuer.

     “Environmental Claims” has the meaning specified in Section 3.22.

     “Environmental Laws” has the meaning specified in Section 3.22.

     “Equity Interest” means (i) the equity ownership rights in a business entity, whether a
corporation, company, joint stock company, limited liability company, general or limited
partnership, joint venture, bank, association, trust, trust company, land trust, business trust,
sole proprietorship or other business entity or organization, and whether in the form of capital
stock, ownership unit, limited liability company interest, membership interest, limited or general
partnership interest or any other form of ownership, and (ii) also includes all Equity Interest
Equivalents.

     “Equity Interest Equivalents” means all rights, warrants, options, convertible securities
(including the Preferred Stock) or indebtedness, exchangeable securities or other instruments, or
other rights that are outstanding and exercisable for or convertible or exchangeable into, directly
or indirectly, any Shares of Common Stock; provided that the Common Units and related

2

 

Warrants shall be treated as Equity Interest Equivalents only to the extent of Common Stock
issued on the date of this Agreement as part of a Common Unit.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under common
control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections
414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by
the Company or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a
plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a
cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a
complete or partial withdrawal by the Company or any ERISA Affiliate from a Multiemployer Plan or
notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent
to terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer
Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums
due but not delinquent under Section 4007 of ERISA, upon the Company or any ERISA Affiliate;
provided, however, that an item described in any of items (a) through (f) shall not constitute an
ERISA Event unless it could reasonably be expected to result in a Material Adverse Effect or it
relates to an event which could reasonably be related to result in a Material Adverse Effect.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and
the rules and regulations of the Commission promulgated thereunder.

     “Existing Instrument” has the meaning set forth in Section 3.12(a).

     “GAAP” means generally accepted accounting principles in the United States in effect from time
to time.

     “Governmental Authority” means, with respect to a particular Person, the country, state,
county, city and political subdivisions in which such Person or such Person’s Property is located
or that exercises valid jurisdiction over any such Person or such Person’s Property, and any court,
agency, department, commission, board, bureau or instrumentality of any of them that exercises
valid jurisdiction over any such Person or such Person’s Property.

     “Investment Company Act” means the Investment Company Act of 1940, as amended from time to
time, and the rules and regulations of the Commission promulgated thereunder.

     “IPO” shall have the meaning set forth in the Certificate of Designation for the Preferred
Stock.

     “Law” means any federal, state, local or foreign order, writ, injunction, judgment,
settlement, award, decree, statute, law, rule or regulation or common law.

3

 

     “Lien” means any lien, encumbrance, security interest, equity, charge or other interest in
Property securing an obligation owed to, or a claim by, a Person other than the owner of the
Property, whether such interest is based in Law or contract or other instrument, and whether such
obligation or claim is fixed or contingent, and including but not limited to the lien or security
interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or
trust receipt or a lease, consignment or bailment for security purposes. For the purpose of this
Agreement, a Person shall be deemed to be the owner of any Property that it has acquired or holds
subject to a conditional sale agreement, or leases under a financing lease or other arrangement
pursuant to which title to the Property has been retained by or vested in some other Person in
connection with a financing.

     “Material Adverse Change” has the meaning specified in Section 3.07.

     “Material Adverse Effect” has the meaning specified in Section 3.10.

     “Materials of Environmental Concern” has the meaning specified in Section 3.22.

     “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which the Company or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     “Operative Documents” means this Agreement, the Registration Rights Agreement, the Warrant,
the Acquisition Agreement, the Credit Agreement and the Bridge Credit Agreement.

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section
3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is
sponsored or maintained by the Company or any ERISA Affiliate or to which the Company or any ERISA
Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any time during the
immediately preceding five plan years.

     “Permits” means, with respect to the Company or any of the Subsidiaries, any licenses,
permits, variances, consents, authorizations, waivers, grants, franchises, concessions, exemptions,
orders, registrations and approvals of Governmental Authorities or other Persons necessary for the
ownership, leasing, operation, occupancy and use of its Properties and the conduct of its
businesses as currently conducted.

     “Person” means any individual, corporation, company, voluntary association, partnership, joint
venture, trust, limited liability company, unincorporated organization or government or any agency,
instrumentality or political subdivision thereof, or any other form of entity.

     “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA)
established by the Company or, with respect to any such plan that is subject to Section 412 of the
Code or Title IV of ERISA, any ERISA Affiliate.

4

 

     “Preferred Stock” means the shares of Series A Convertible Preferred Stock issued by the
Company pursuant to this Agreement and the shares of Series A Convertible Preferred Stock of the
Company issued by the Company upon the exercise of the warrants issued by the Company pursuant to
this Agreement.

     “Private Placement Memorandum” means the private placement memorandum dated November 20, 2006
provided to each Purchaser.

     “Property” means any interest in any kind of property or asset, whether real, personal or
mixed, or tangible or intangible.

     “Purchase Price” means, with respect to a particular Purchaser, the amount set forth opposite
such Purchaser’s name under the column entitled “Total Purchase Price” on Schedule 2.01 hereto.

     “Purchased Securities” means, with respect to a particular Purchaser, the number of shares of
Class A Convertible Preferred Stock or number of Common Units, as applicable, set forth opposite
such Purchaser’s name under the column entitled “Securities Purchased” on Schedule 2.01 hereto.

     “Purchaser” and “Purchasers” have the respective meanings specified in the introductory
paragraph.

     “Purchaser Common Stock” means the shares of Common Stock issued by the Company pursuant to
this Agreement and the shares of Common Stock issued upon conversion of shares of Preferred Stock,
provided that a share of Common Stock shall cease to constitute Purchaser Common Stock when such
share is resold pursuant to a registration statement effective under the Securities Act or in
compliance with Rule 144 under the Securities Act.

     “Purchaser Material Adverse Effect” means, with respect to a particular Purchaser, any
material and adverse effect on the ability of such Purchaser to meet its obligations and to
consummate the transactions under this Agreement.

     “Registration Rights Agreement” means the Resale Registration Rights Agreement by and between
the Company and the Purchasers in the form attached hereto as Exhibit A.

     “Regulation D” has the meaning specified in Section 3.21.

     “Related Parties” shall mean (i) with respect to any of Tom Ward and N. Malone Mitchell 3rd,
his wife, children and grandchildren and any entities, trusts and other Affiliates, whether or not
controlled, the sole beneficiaries or beneficial owners of which are Tom Ward or Malone, as
applicable, his children and/or grandchildren (and/or such entities, trusts or Affiliates of which
Tom Ward or N. Malone Mitchell 3rd, as applicable, his children and/or grandchildren their wives,
children and grandchildren are the sole direct or indirect beneficiaries or beneficial owners);
provided, however, that in no event shall the Company or any of its Subsidiaries be deemed to be a
“Related Party”.

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     “Remaining Taggable Shares Number” means, in connection with any proposed Sale by a Company
Party or its Related Parties, (a) the number of the Taggable Shares in such Sale, less (b) the
number of Shares, if any, sought to be sold by the Tagging Shareholder (as defined in the
Shareholders Agreement) pursuant to its exercise of its tag-along rights under Section 2.2 of the
Shareholders Agreement in connection with such Sale.

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than
events for which the 30 day notice period has been waived.

     “Representatives” of any Person means the officers, directors, employees, agents, counsel,
accountants, investment bankers and other representatives of such Person.

     “Sale” (and “Sell” shall have a correlative meaning) means, with respect to any shares, the
sale, transfer, assignment or similar disposition (excluding pledge, encumbrance or hypothecation)
of such shares in which cash, securities or other property is received as consideration.

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules
and regulations of the Commission promulgated thereunder.

     “Shareholders Agreement” means the Shareholder Agreement, dated November 21, 2006, among the
Company, the Company Principals and the other parties thereto as in effect on such date.

     “Shares” means, as of any date, (i) with respect to the Company Principals and their Related
Parties, the shares of Common Stock held by such Persons as of such date, and (ii) with respect to
the Purchasers, the shares of Purchaser Common Stock held by such Purchasers and the Shares of
Purchaser Common Stock issuable upon the conversion of the shares of Preferred Stock; provided,
that with respect to any provisions of this Agreement which requires the calculation of the number
or percentage of Shares, any shares of Preferred Stock shall be deemed to be fully converted into
Common Stock.

     “Subsidiaries” means those entities listed on Schedule 3.24.

     “Taggable Percentage” means, with respect to each Purchaser, the percentage derived by
dividing the maximum number of Shares sought to be sold by such Purchaser in connection with a
proposed Sale as reflected in the Purchaser Tag-along Notice delivered to the Selling Shareholder
during the Response Period, by the aggregate of the maximum numbers of Shares sought to be sold by
all Purchaser in connection with such proposed Sale as reflected in all Purchaser Tag-along Notices
delivered to the Selling Shareholder during the Response Period.

     “Transfer” (and “Transferee” shall have a correlative meaning) means, directly or indirectly,
to Sell, transfer, assign, pledge, encumber, hypothecate or similarly dispose of, either
voluntarily or involuntarily, or to enter into any contract, option or other arrangement or
understanding with respect to the Sale, transfer, assignment, pledge, encumbrance, hypothecation or
similar disposition of, any Shares beneficially owned by a Person or any interest in any Shares
beneficially owned by a Person

6

 

     “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities under
Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in
accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the
Code for the applicable plan year.

     “Warrant” means a Preferred Stock Purchase Warrant entitling the holder to surrender the
number of shares of Common Stock purchased as Purchased Securities in exchange for shares of
Preferred Stock, on the terms and conditions set forth therein, in the form attached hereto as
Exhibit B.

ARTICLE II

SALE AND PURCHASE

     Section 2.01 Sale and Purchase. Upon the terms hereof, the Company hereby issues and
sells to each Purchaser, and each Purchaser, severally and not jointly hereby purchases from the
Company, the Purchased Securities for the Purchase Price set forth opposite such Purchaser’s name
under the column entitled “Purchase Price” on Schedule 2.01 hereto.

     Section 2.02 Closing. Upon the terms hereof, the consummation of the sale and
purchase of the Purchased Securities hereunder (the “Closing”) shall take place on the date of this
Agreement (the “Closing Date”), at the offices of Vinson & Elkins L.L.P., 1001 Fannin, Suite 2500,
Houston, Texas 77002.

     Section 2.03 The Company’s Deliveries. At the Closing, the Company will deliver, or
cause to be delivered, to each Purchaser, as applicable:

     (a) A certificate or certificates or other instruments representing the Purchased
Securities of such Purchaser;

     (b) A cross-receipt executed by the Company certifying that it has received a wire
transfer as of the Closing Date in an amount equal to the Purchase Price of such Purchaser;

     (c) An Opinion of Vinson & Elkins L.L.P., as counsel to the Company, addressed to each
Purchaser in the form attached hereto as Exhibit C;

     (d) An Opinion of Matthew McCann, as in-house counsel to the Company, addressed to each
Purchaser in the form attached hereto as Exhibit D;

     (e) A copy of the Registration Rights Agreement, dated as of the Closing Date and
executed by the Company;

     (f) A certificate of Secretary of the Company, dated the Closing Date, in form and
substance reasonably satisfactory to the Purchasers, certifying as to (i) the amended and
restated articles of incorporation of the Company, including the Certificate of Designation
relating to the Preferred Stock; (ii) the by-laws of the Company; (iii) the resolutions of
the board of directors of the Company authorizing the execution and performance of this
Agreement, the Registration Rights Agreement and the Warrant and

7

 

the Certificate of Designation relating to the Preferred Stock; and (iv) incumbency and
signatures of the officers of the Company executing this Agreement, the Registration Rights
Agreement and the Warrant and the Certificate of Designation relating to the Preferred Stock
and this certificate.

     (g) A certificate of the Chief Executive Officer and Chief Financial Officer, dated as
of the Closing Date, in form and substance reasonably satisfactory to the Purchasers,
certifying to such matters as reasonably requested by the Purchasers.

     Section 2.04 Purchasers’ Deliveries. At the Closing, each Purchaser will deliver, or
cause to be delivered, to the Company:

     (a) Payment to the Company of the Purchase Price of such Purchaser by wire transfer of
immediately available funds to the account designated by the Company on Schedule 2.04;

     (b) A cross-receipt executed by such Purchaser and delivered to the Company certifying
that it has received the Purchased Securities of such Purchaser as of the Closing Date, as
evidenced by the certificate and/or instruments referenced in Section 2.03(a); and

     (c) A copy of the Registration Rights Agreement, dated as of the Closing Date and
executed by such Purchaser.

     Section 2.05 Independent Nature of Purchasers’ Obligations and Rights. The
obligations of each Purchaser under this Agreement are several and not joint with the obligations
of the other Purchasers, and no Purchaser shall be responsible in any way for the performance of
the obligations of any other Purchaser under this Agreement. The representations and warranties of
each Purchaser under this Agreement are several and not joint with the representations and
warranties of the other Purchasers, and no Purchaser shall be deemed to have made any
representations and warranties with respect to any other Purchasers under this Agreement. Nothing
contained herein, and no action taken by any Purchaser pursuant hereto, shall be deemed to
constitute the Purchasers as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Purchasers are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by this Agreement. Each
Purchaser shall be entitled to independently protect and enforce its rights, including without
limitation, the rights arising out of this Agreement, and it shall not be necessary for the other
Purchasers to be joined as additional parties in any proceeding for such purpose. Notwithstanding
the foregoing, each Purchaser’s obligation to purchase its Purchased Securities is conditioned on
the contemporaneous closing of the purchase of Purchased Securities by the other Purchasers and,
if, for any reason, any Purchaser shall refuse to enter into this Agreement or shall fail to
consummate its obligations hereunder, all obligations of the other Purchasers hereunder shall be
null and void.

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ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to the Purchasers:

     Section 3.01 No Registration. Assuming the accuracy of the representations and
warranties of the Purchasers contained in Section 4.02, it is not necessary, in connection with the
issuance and sale of the Purchased Securities to the Purchasers in the manner contemplated by this
Agreement or in connection with the issuance of Preferred Stock upon exercise of any Warrant or the
issuance of Common Stock upon conversion of the Preferred Stock pursuant to its terms, to register
the Purchased Securities (or any such Common Stock) under the Securities Act or any other
securities Laws.

     Section 3.02 No Integration. None of the Company or any of its Subsidiaries has,
directly or through any agent, sold, offered for sale, solicited offers to buy or otherwise
negotiated in respect of, any “security” (as defined in the Securities Act) that is or will be
integrated with the sale of the Purchased Securities in a manner that would require registration
under the Securities Act of the Purchased Securities.

     Section 3.03 Disclosure. The Private Placement Memorandum and other information
provided by the Company to the Purchasers for the purpose of deciding whether to acquire the
Purchased Securities (other than the Company’s financial and other projections describing its
proposed business), as of the date of such information and the date hereof, when read together did
not contain any untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading. The financial and other projections prepared by management were prepared in good
faith; however, the Company does not warrant that it will achieve such projections nor has it
assumed any obligation to update such projections.

     Section 3.04 Authorization of the Purchase Agreement. Each Operative Document has
been duly authorized, executed and delivered by the Company and constitutes the valid and binding
agreement of the Company, enforceable against the Company in accordance with its terms except as
the enforcement thereof may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws relating to or affecting the rights and remedies
of creditors or by general equitable principles and except as to rights to indemnification
thereunder may be limited by applicable Law.

     Section 3.05 Authorization of the Purchased Securities. The Purchased Securities have
been duly authorized for issuance and sale by the Company and pursuant to this Agreement and, when
issued and delivered by the Company to the Purchasers pursuant to this Agreement on the Closing
Date, the Preferred Stock and the Common Stock constituting Purchased Securities will be validly
issued, fully paid and non-assessable, and the issuance of the Purchased Securities will not be
subject to any preemptive or similar rights. The shares of Common Stock or Preferred Stock issuable
upon conversion or exchange of Purchased Securities have been duly authorized for issuance by the
Company and, when issued and delivered by the Company, will be validly issued, fully paid and
non-assessable, and such shares will not be subject to any preemptive or similar rights.

9

 

     Section 3.06 Authorization and Enforceability of Operative Documents. Each of the
Operative Documents has been duly authorized by the Company and, when executed and delivered by the
Company, will be a valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms except as the enforcement thereof may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable principles and except as to
rights to indemnification thereunder may be limited by applicable Law. The Company is in
compliance with the terms of the Credit Agreement and Bridge Credit Agreement, and each
representation and warranty contained in the Credit Agreement or the Bridge Credit Agreement is
true and correct.

     Section 3.07 No Material Adverse Change. Except as otherwise disclosed in the Private
Placement Memorandum, subsequent to the respective dates as of which information is given in the
Private Placement Memorandum: (i) there has been no material adverse change, effect or event or
development that could reasonably be expected to result in a material adverse change, in the
condition, financial or otherwise, or in the earnings, business, properties, assets or results of
operations (other than as a result of developments affecting the oil and gas industry generally
that do not have a disproportionate effect on the Company and its Subsidiaries), whether or not
arising from transactions in the ordinary course of business, of the Company and its Subsidiaries,
taken as a whole (a “Material Adverse Change”); (ii) the Company and its Subsidiaries, considered
as one entity, have not incurred any material liability or obligation, indirect, direct or
contingent, nor entered into any material transaction or agreement; and (iii) there has been no
cash dividend or distribution of any kind declared, paid or made by the Company or, except for
dividends paid to the Company or any wholly-owned Subsidiary of the Company, any of its
Subsidiaries on any class of capital stock or other security or repurchase or redemption by the
Company or any of its Subsidiaries of any class of capital stock or other security.

     Section 3.08 Independent Accountants. PricewaterhouseCoopers LLP and Grant Thornton
LLP, who have expressed their opinion with respect to the financial statements (which term as used
in this Agreement includes the related notes thereto) and supporting schedules included in the
Private Placement Memorandum, are independent registered public accountants with respect to the
Company as required by the Securities Act and the Exchange Act and the applicable published rules
and regulations thereunder.

     Section 3.09 Financial Statements. The financial statements of the Company included
in Private Placement Memorandum present fairly the consolidated financial position of the Company
and its consolidated Subsidiaries as of and at the dates indicated and present fairly the results
of operations and cash flow of the Company and its consolidated subsidiaries of and at the dates
indicated. The financial statements of NEG Oil & Gas, LLC included in the Private Placement
Memorandum present fairly the consolidated financial position of NEG Oil & Gas, LLC and its
consolidated subsidiaries as of and at the dates indicated and present fairly the results of
operations and cash flow of NEG Oil & Gas, LLC and its consolidated subsidiaries of and at the
dates indicated. Such financial statements of the Company and NEG Oil & Gas, LLC comply as to form
with the applicable accounting requirements of Regulation S-X and have been prepared in conformity
with GAAP applied on a consistent basis throughout the periods involved, except as may be expressly
stated in the related notes thereto. The financial data set

10

 

forth in the Private Placement Memorandum under the captions “Summary—Summary SandRidge
Consolidated Historical Financial Data”, “Summary— Summary NEG Oil & Gas Consolidated Historical
Financial Data”, “Capitalization”, “SandRidge Energy Selected Historical Financial Data” and “NEG
Selected Historical Financial Data” fairly present the information set forth therein on a basis
consistent with that of the audited financial statements contained in the Private Placement
Memorandum. The pro forma condensed consolidated financial statements of the Company and its
subsidiaries and the related notes thereto and the other pro forma financial data included in the
Private Placement Memorandum have been prepared in accordance with the Commission’s rules and
guidelines with respect to pro forma financial statements and have been properly presented on the
basis described therein, and the assumptions used in the preparation thereof are reasonable and the
adjustments used therein are appropriate to give effect to the transactions and circumstances
referred to therein.

     Section 3.10 Incorporation and Good Standing of the Company and its Subsidiaries.
Each of the Company and its Subsidiaries has been duly incorporated or otherwise formed and is
validly existing and in good standing under the laws of the jurisdiction of its incorporation or
formation, as the case may be, and has power and authority (corporate or otherwise) to own or
lease, as the case may be, and operate its properties and to conduct its business as presently
conducted and, in the case of the Company, to enter into and perform its obligations under each
Operative Document. Each of the Company and each Subsidiary is duly qualified to transact business
and is in good standing in each jurisdiction in which such qualification is required, whether by
reason of the ownership or leasing of property or the conduct of business, except for such
jurisdictions where the failure to so qualify or to be in good standing would not, individually or
in the aggregate, result or reasonably be expected to result in a material adverse effect on the
condition, financial or otherwise, or on the earnings, business, properties, assets or results of
operations, whether or not arising from transactions in the ordinary course of business, of the
Company and its Subsidiaries, taken as a whole (a “Material Adverse Effect”). All of the issued
and outstanding shares of capital stock, or similar equity interest, of each Subsidiary have been
duly authorized and validly issued, are fully paid and nonassessable and are owned by the Company,
directly or through Subsidiaries, free and clear of any Lien, except that the Company’s revolving
credit facility is secured by a negative pledge on any of the Company’s non-mortgage properties.

     Section 3.11 Capitalization and Other Capital Stock Matters. The authorized capital
of the Company consists of: (i) 50,000,000 shares of preferred stock, par value of $0.001 per
share, of which 2,625,000 shares are designated as Preferred Stock, 2,136,669 of which will be
issued as of the date hereof pursuant to this Agreement, and (ii) 400,000,000 shares of Common
Stock, 91,703,134 of which will be issued and outstanding as of the date hereof after giving effect
to the issuance of Common Units pursuant to this Agreement and the issuance of 12,842,000 shares
of Common Stock pursuant to the Acquisition Agreement. Except for an aggregate of 7,074,252 shares
of Common Stock issuable upon exercise of outstanding stock options or warrants, shares of
Preferred Stock issuable upon the exchange of the Common Units issued hereunder and the shares of
Common Stock issuable upon conversion of the Company such shares of Preferred Stock and the shares
of Preferred Stock issued hereunder, the Company has not issued any other options, warrants, script
rights to subscribe to, calls or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exercisable or exchangeable for, or entered
into any agreement giving any Person any right to subscribe for or acquire, any shares

11

 

of its capital stock or other security. Except for pursuant to the terms of the Purchased
Securities and other customary adjustments as a result of stock dividends, stock splits,
combinations of shares, reorganizations, recapitalizations, reclassifications or other similar
events, there are no anti-dilution or price adjustment provisions contained in any security issued
by the Company (or in any agreement providing rights to security holders), and the issuance and
sale of the shares of Preferred Stock and Common Units hereunder and the conversion and exchange
thereof will not obligate the Company to issue shares of Common Stock or other securities to any
Person or result in a right of any holder of securities to adjust the exercise, conversion,
exchange or reset price under such securities. All of the issued and outstanding shares of Common
Stock have been duly authorized and validly issued, are fully paid and nonassessable and have been
issued in compliance with federal and state securities laws. None of the outstanding shares of
Common Stock were issued in violation of any preemptive rights, rights of first refusal or other
similar rights to subscribe for or purchase securities of the Company. There are no authorized or
outstanding options, warrants, preemptive rights, rights of first refusal or other rights to
purchase, or equity or debt securities convertible into or exchangeable or exercisable for, any
capital stock of the Company or any of its Subsidiaries other than those described in the Private
Placement Memorandum. The description of the Company’s stock option, stock bonus and other stock
plans or arrangements, and the options or other rights granted thereunder, set forth in the Private
Placement Memorandum accurately presents and summarizes such plans, arrangements, options and
rights.

          Section 3.12 Non-Contravention of Existing Instruments; No Further Authorizations or
Approvals Required.

          (a) Neither the execution nor the delivery of any Operative Document by the Company or any of
its Subsidiaries, nor the performance of its obligations thereunder, (i) will result in a violation
or breach of its charter or bylaws (or other applicable organizational document), (ii) with or
without the giving of notice or the passage of time, or both, violate, or be in conflict with,
breach of, or constitute a default under, or cause or permit the termination or the acceleration of
the maturity of, any material indenture, mortgage, loan or credit agreement, note, contract,
franchise, lease or other instrument to which the Company or any of its Subsidiaries is a party or
by which it or any of them may be bound, or to which any of the property or assets of the Company
or any of its Subsidiaries is subject (each, an “Existing Instrument”), (iii) require notice to or
the consent of any party to any agreement or commitment, including, without limitation, any lease
or license to which the Company is a party, or by which it or its properties is bound or subject
other than those notices or consents that have been given or received; (iv) result in the creation
or imposition of any security interest, lien, or other encumbrance upon any property or assets of
the Company under any agreement or commitment to which it is a party, or by which it or its
properties is bound or subject; or (v) violate or breach any material statute or Law or any
judgment, decree, order, regulation or rule of any court or Governmental Authority to which the
Company, its Subsidiaries or their properties is bound or subject.

          (b) The Company’s execution, delivery and performance of the Operative Documents and
consummation of the transactions contemplated thereby and by the Private Placement Memorandum (i)
have been duly authorized by all necessary corporate action and will not result in any violation of
the charter or bylaws (or other applicable organizational document) of the Company or any
Subsidiary, (ii) will not conflict with or constitute a breach of, or default

12

 

under, or result in the termination (or a right of termination) under, the acceleration of any
obligations under or the creation or imposition of any Lien upon any property or assets of the
Company or any of its Subsidiaries pursuant to, or require the consent of any other party to, any
Existing Instrument or contract or other agreement or instrument to which the Company or any of its
Subsidiaries is a party and (iii) will not result in any violation of any material Law, regulation,
judgment, order or decree applicable to the Company or any of its Subsidiaries of any Governmental
Authority having jurisdiction over the Company or any of its Subsidiaries or any of its or their
properties.

          (c) No consent, approval, authorization or other order of, or registration or filing with, any
court or other Governmental Authority or agency is required for the Company’s execution, delivery
and performance of the Operative Documents and consummation of the transactions contemplated
thereby and by the Private Placement Memorandum and by this Agreement, except (i) with respect to
the transactions contemplated by the Registration Rights Agreement, as may be required under the
Securities Act and the rules and regulations promulgated thereunder and (ii) such as have been
obtained or made by the Company and are in full force and effect under the Securities Act,
applicable state securities or blue sky laws.

     Section 3.13 No Material Actions or Proceedings. Except as otherwise disclosed in the
Private Placement Memorandum, there are no legal or governmental actions, suits, hearings or
investigations or proceedings pending or, to the Company’s knowledge, threatened (i) against or
affecting the Company or any of its Subsidiaries, (ii) which has as the subject thereof any officer
or director of, or property owned or leased by, the Company or any of its Subsidiaries or (iii)
relating to environmental or discrimination matters, where in any such case (A) it is reasonable
likely that such action, suit or proceeding would be determined adversely to the Company or such
subsidiary and (B) any such action, suit or proceeding, if so determined adversely, would
reasonably be expected to have a Material Adverse Effect or adversely affect the consummation of
the transactions contemplated by this Agreement.

     Section 3.14 All Necessary Permits, etc. The Company and each Subsidiary possess such
valid and current licenses, certificates, authorizations or permits issued by the appropriate
local, state, federal or foreign regulatory agencies or Governmental Authority necessary to conduct
their respective businesses except where the failure to do so would not reasonably be expected to
have a Material Adverse Effect, and neither the Company nor any Subsidiary has received any notice
of revocation or modification of, non-compliance with or proceedings relating to the revocation or
modification of, or non-compliance with, any such certificate, authorization or permit which,
singly or in the aggregate, and in the case of a notice or proceedings, if the subject of an
unfavorable decision, ruling or finding, would reasonably be expected to have a Material Adverse
Effect.

     Section 3.15 Title to Properties. Each of the Company and its Subsidiaries has (i)
generally satisfactory title to its oil and gas properties, title investigations having been
carried out by the Company or its Subsidiaries in accordance with the practice in the oil and gas
industry in the areas in which the Company and its Subsidiaries operate, (ii) good and marketable
title to all other real property owned by it (including pipeline and other easement rights) to the
extent necessary to carry on its business, and (iii) good and marketable title to all personal
property owned by it, in each case free and clear of all Liens and defects except such as are
described in

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the Private Placement Memorandum or such as do not materially affect the value of the such
properties of the Company and its Subsidiaries, taken as a whole, and do not interfere with the use
made and proposed to be made of such properties, by the Company and its Subsidiaries, taken as a
whole; and all of the easements, leases and subleases material to the business of the Company and
its Subsidiaries, considered as one enterprise, and under which the Company or any of its
Subsidiaries holds or uses properties described in the Private Placement Memorandum, are in full
force and effect, and neither the Company nor any of its Subsidiaries has any notice of any claim
that has been asserted by anyone adverse to the rights of the Company or its Subsidiaries under any
of the easements, leases or subleases mentioned above, or affecting or questioning the rights of
the Company or any Subsidiary thereof to the continued possession or use of the easement or leased
or subleased premises that would reasonably be expected to have a Material Adverse Effect.

     Section 3.16 Condition of Properties. Except as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect on the Company, the plants,
buildings, structures and equipment owned by the Company and its Subsidiaries are in good operating
condition and repair and have been reasonably maintained consistent with standards generally
followed in the industry in which the Company and its Subsidiaries operates (giving due account to
the age and length of use of same, ordinary wear and tear excepted), are adequate and suitable for
their present uses and, in the case of plants, buildings and other structures, are structurally
sound.

     Section 3.17 Company Not an “Investment Company”. The Company is not, and, after
receipt of payment for the Purchased Securities and application of the proceeds as described under
“Use of Proceeds” in the Private Placement Memorandum will not be, required to register as an
“investment company” within the meaning of the Investment Company Act and will conduct its business
in a manner so that it will not become subject to the Investment Company Act.

     Section 3.18 Insurance. Each of the Company and its Subsidiaries are insured by
recognized and, to the knowledge of the Company, financially sound and reputable institutions with
policies in such amounts and with such deductibles and covering such risks as are generally deemed
adequate and customary for their businesses including, but not limited to, policies covering real
and personal property owned or leased by the Company and its Subsidiaries against theft, damage,
destruction, acts of terrorism or vandalism and earthquakes. All policies of insurance and
fidelity or surety bonds insuring the Company or any of its Subsidiaries or their respective
businesses, assets, employees, officers and directors are in full force and effect; the Company and
its Subsidiaries are in compliance, in all material respects, with the terms of such policies and
instruments; and there are no material claims by the Company or any of its Subsidiaries under any
such policy or instrument as to which any insurance company is denying liability or defending under
a reservation of rights clause; and neither the Company nor any such Subsidiary has, in the past
three years, been refused any insurance coverage sought or applied for. The Company has no reason
to believe that it or any Subsidiary will not be able (i) to renew its existing insurance coverage
as and when such policies expire or (ii) to obtain comparable coverage from similar institutions as
may be necessary or appropriate to conduct its business as now conducted and at a cost that would
not have a Material Adverse Effect.

14

 

     Section 3.19 No Restriction on Distributions. No Subsidiary of the Company is
currently prohibited, directly or indirectly, from paying any dividends to the Company, from making
any other distribution on such Subsidiary’s capital stock, from repaying to the Company any loans
or advances to such subsidiary from the Company or from transferring any of such Subsidiary’s
property or assets to the Company or any other subsidiary of the Company, except as described in or
contemplated by the Private Placement Memorandum.

     Section 3.20 Related Party Transactions. There are no business relationships or
related-party transactions involving the Company or any Subsidiary or any other person, which would
be required to be disclosed pursuant to Item 404 of Regulation S-K under the Securities Act and are
not disclosed and described in Private Placement Memorandum.

     Section 3.21 No General Solicitation. None of the Company or any of its affiliates
(as defined in Rule 501(b) of Regulation D under the Securities Act (“Regulation D”)), has,
directly or through an agent, engaged in any form of general solicitation or general advertising in
connection with the offering of the Purchased Securities (as those terms are used in Regulation D)
under the Securities Act or in any manner involving a public offering within the meaning of Section
4(2) of the Securities Act; the Company has not entered into any contractual arrangement with
respect to the distribution of the Purchased Securities except for this Agreement, and the Company
will not enter into any such arrangement except for the Registration Rights Agreement and as may be
contemplated thereby.

     Section 3.22 Compliance with Environmental Laws. Except as otherwise disclosed in the
Private Placement Memorandum (i) neither the Company nor any of its Subsidiaries is in violation
of Law, order, permit or other requirement relating to pollution or protection of human health or
the environment (including, without limitation, ambient air, surface water, groundwater, land
surface or subsurface strata) or wildlife, including without limitation, laws and regulations
relating to emissions, discharges, releases or threatened releases of chemicals, pollutants,
contaminants, wastes, toxic substances, hazardous substances, petroleum and petroleum products
(collectively, “Materials of Environmental Concern”), or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of Materials of
Environmental Concern (collectively, “Environmental Laws”), which violation includes, but is not
limited to, noncompliance with any permits or other governmental authorizations required for the
operation of the business of the Company or its Subsidiaries under applicable Environmental Laws,
or noncompliance with the terms and conditions thereof, nor has the Company or any of its
Subsidiaries received any written communication, whether from a governmental authority, citizens
group, employee or otherwise, that alleges that the Company or any of its Subsidiaries is in
violation of any Environmental Law, except, in each case, as would not, individually or in the
aggregate, have a Material Adverse Effect; (ii) there is no claim, action or cause of action filed
with a court or Governmental Authority, no investigation with respect to which the Company has
received written notice, and no written notice by any person or entity alleging potential liability
for investigatory costs, cleanup costs, governmental responses costs, natural resources damages,
property damages, personal injuries, attorneys’ fees or penalties arising out of, based on or
resulting from the presence, or release into the environment, of any Material of Environmental
Concern at any location owned, leased or operated by the Company or any of its Subsidiaries, now or
in the past (collectively, “Environmental Claims”), pending or, to the Company’s

15

 

knowledge, threatened against the Company or any of its Subsidiaries or any person or entity
whose liability for any Environmental Claim the Company or any of its subsidiaries has retained or
assumed either contractually or by operation of law, except as would not, individually or in the
aggregate, have a Material Adverse Effect; (iii) to the Company’s knowledge, there are no past,
present or anticipated future actions, activities, circumstances, conditions, events or incidents,
including, without limitation, the release, emission, discharge, presence or disposal of any
Material of Environmental Concern, that reasonably could result in a violation of any Environmental
Law, require expenditures to be incurred pursuant to Environmental Law, except as would not,
individually or in the aggregate, have a Material Adverse Effect; and (iv) neither the Company nor
any of its Subsidiaries is subject to any pending or, to the Company’s knowledge, threatened
proceeding under Environmental Law to which a governmental authority is a party and which is
reasonably likely to result in monetary sanctions of $100,000 or more.

     Section 3.23 Brokers. Except as otherwise disclosed in the Private Placement
Memorandum, there is no broker, finder or other party that is entitled to receive from the Company
any brokerage or finder’s fee or other fee or commission as a result of any transactions
contemplated by this Agreement.

     Section 3.24 Subsidiaries. The Subsidiaries listed on Schedule 3.24 attached hereto
are the only “significant subsidiaries” of the Company as defined by Rule 405 under the Securities
Act.

     Section 3.25 Acquisition Agreement, Credit Agreement and Bridge Credit Agreement.

          (a) The Company has provided to the Purchasers a true and complete copy of the Acquisition
Agreement and all agreements and documents ancillary thereto. The Acquisition Agreement and each
of the agreements and documents ancillary thereto is valid and binding and in full force and
effect. There have been no amendments to the terms of the Acquisition Agreement or any of the
agreements and documents ancillary thereto other than those provided to the Purchasers prior to the
date of this Agreement. Simultaneously with the Closing the Company is consummating the
transactions contemplated by the Acquisition Agreement, and acquiring 100% of the membership or
other equity interests of NEG Oil & Gas, LLC, pursuant to the terms and conditions of the
Acquisition Agreement and the agreements and documents ancillary thereto, with the waiver by the
Company of any of the terms or conditions thereof (other than waivers that, in the aggregate are
immaterial).

          (b) The Company has provided to the Purchasers true and complete copies of the Credit
Agreement and the Bridge Credit Agreement and all agreements and documents ancillary thereto. Each
of the Credit Agreement and the Bridge Credit Agreement and each of the agreements and documents
ancillary thereto is valid and binding and in full force and effect. There have been no amendments
to the terms of the Credit Agreement and the Bridge Credit Agreement or any of the agreements and
documents ancillary thereto other than those provided to the Purchasers prior to the date of this
Agreement. Simultaneously with the Closing, the Company is borrowing not more than $150 million
under the Credit Agreement and not more than $850 under the Bridge Credit Agreement.

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     Section 3.26 Taxes. The Company and its Subsidiaries have filed all Federal, state
and other material tax returns and reports required to be filed, and have paid all Federal, state
and other material taxes, assessments, fees and other governmental charges levied or imposed upon
them or their properties, income or assets otherwise due and payable, except those which are being
contested in good faith by appropriate proceedings diligently conducted and for which adequate
reserves have been provided in accordance with GAAP. There is no proposed tax assessment against
the Company or any Subsidiary that would, if made, have a Material Adverse Effect.

     Section 3.27 ERISA Matters.

          (a) Each Plan is in compliance with the applicable provisions of ERISA, the Code and other
Federal or state Laws except for such events of noncompliance which could not, in the aggregate,
reasonably be expected to result in a Material Adverse Effect.

          (b) There are no pending or, to the best knowledge of the Borrower, threatened claims, actions
or lawsuits, or action by any Governmental Authority, with respect to any Plan that could
reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction
or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect.

          (c) With respect to each Plan, (i) no ERISA Event has occurred or is reasonably expected to
occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither the Company nor any
ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA
with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of
ERISA); (iv) neither the Company nor any ERISA Affiliate has incurred, or reasonably expects to
incur, any liability (and no event has occurred which, with the giving of notice under Section 4219
of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with respect to a
Multiemployer Plan; and (v) neither the Company nor any ERISA Affiliate has engaged in a
transaction that could be subject to Section 4069 or 4212(c) of ERISA; in each case, which could
not reasonably be expected to result in a Material Adverse Effect.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF EACH PURCHASER

     Each Purchaser, severally and not jointly, represents and warrants to the Company, as to
itself only, that:

     Section 4.01 Authorization. Each Purchaser has full power and authority to enter into
this Agreement. This Agreement, when executed and delivered by such Purchaser, will constitute
valid and legally binding obligation of such Purchaser, enforceable in accordance with their
respective terms, except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement
of creditors’ rights generally, and as limited by laws relating to the availability of a specific
performance, injunctive relief, or other equitable remedies.

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     Section 4.02 Unregistered Offering and Sale of Securities.

          (a) Investment. The Purchased Securities are being acquired for such Purchaser’s own
account and with no intention of distributing the Purchased Securities or any part thereof other
than in accordance with the Securities Act and other applicable securities and blue sky laws, and
such Purchaser has no present intention of selling or granting any participation in or otherwise
distributing the same in any transaction in violation of the Securities Act or the securities or
blue sky laws of any other jurisdiction. If such Purchaser should in the future decide to dispose
of any of the Purchased Securities, such Purchaser understands and hereby agrees that it may do so
only in compliance with the Securities Act and applicable securities and blue sky laws of any other
jurisdiction, as then in effect, which may include a sale contemplated by any registration
statement pursuant to which the Purchased Securities are then being offered.

          (b) Such Purchaser understands that (i) the Purchased Securities (A) have not been registered
under the Securities Act or any state securities Laws, (B) will be issued in reliance upon an
exemption from the registration and prospectus delivery requirements of the Securities Act pursuant
to Regulation D thereof and (C) will be issued in reliance upon exemptions from the registration
and prospectus delivery requirements of state securities laws which relate to private offerings,
and (ii) the Purchaser must therefore bear the economic risk of such investment indefinitely unless
a subsequent disposition thereof is registered or exempted under the Securities Act and applicable
state securities laws or is exempt therefrom.

          (c) Nature of Purchasers. Such Purchaser represents and warrants to the Company that
it is one of the following as indicated on such Purchaser’s signature page hereto:

               (i) (A) an “accredited investor” as defined in Rule 501(a) promulgated under the
Securities Act and a “qualified institutional buyer” as defined in Rule 144A promulgated by
the Commission pursuant to the Securities Act and (B) by reason of its business and
financial experience it has such knowledge, sophistication and experience in making similar
investments and in business and financial matters generally so as to be capable of
evaluating the merits and risks of the prospective investment in the Purchased Securities,
is able to bear the economic risk of such investment and, at the present time, would be able
to afford a complete loss of such investment;

               (ii) (A) not a U.S. Person (as defined in Regulation S under the Securities Act, which
definition includes, but is not limited to, an individual resident in the United States, an
estate or trust of which any executor or administrator or trustee, respectively, is a U.S.
Person and any partnership or corporation organized or incorporated under the laws of the
United States) and is not purchasing the Purchased Securities on behalf of, or for the
account or benefit of, a person in the United States or a U.S. Person; (B) the Purchased
Securities have not been offered to such Purchaser in the United States, and the individuals
making the order to purchase the Purchased Securities and executing and delivering this
Agreement on behalf of such Purchaser were not in the United States when the order was
placed and this Agreement was executed and delivered; (C) it undertakes and agrees that it
will not offer, sell or otherwise transfer the Purchased Securities except: (1) to the
Company, (2) outside the United States in accordance with

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Rule 903 or 904 of Regulation S under the Securities Act, and in compliance with
applicable local laws and regulations, (3) inside or outside the United States after one
year pursuant to the exemption from registration under the Securities Act provided by Rule
144 thereunder, (4) to a person it reasonably believes is a “qualified institutional buyer”
(as defined in Rule 144A under the Securities Act) purchasing for its own account or for the
account of a qualified institutional buyer in a transaction meeting the requirements of Rule
144A, (5) inside the United States, in any other transaction exempt from registration under
the Securities Act and, in any event, in compliance with any applicable state securities
laws of the United States, provided that prior to any transfer pursuant to this clause (5),
the Company may require a legal opinion reasonably satisfactory to the Company that such
transfer is exempt from registration under the Securities Act and any applicable state
securities laws or (6) pursuant to a registration statement effective under the Securities
Act and covering such offer, sale or transfer; and (D) it agrees not to engage in hedging
transactions involving the Purchased Securities unless in compliance with the Securities
Act.

               (iii) (A) an institutional “accredited investor” as defined in Rule 501(a)(1), (2), (3)
or (7) promulgated under the Securities Act and (B) by reason of its business and financial
experience it has such knowledge, sophistication and experience in making similar
investments and in business and financial matters generally so as to be capable of
evaluating the merits and risks of the prospective investment in the Purchased Securities,
is able to bear the economic risk of such investment and, at the present time, would be able
to afford a complete loss of such investment.

          (d) Receipt of Information; Authorization. Such Purchaser acknowledges that it has
(a) had access to the Private Placement Memorandum and (b) been provided a reasonable opportunity
to ask questions of and receive answers from Representatives of the Company, and to be furnished
requested information, regarding such matters sufficient to enable such Purchaser to evaluate the
risks and merits of purchasing the Purchased Securities and consummating the transactions
contemplated by this Agreement.

          (e) Legend. It is understood that any certificates evidencing the Purchased
Securities will bear the following legend:

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON
TRANSFER UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND STATE SECURITIES
LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED, TRANSFERRED, PLEDGED
OR OTHERWISE DISPOSED OF UNLESS (I) REGISTERED UNDER THE APPLICABLE
SECURITIES LAWS, (II) SUCH TRANSACTION IS PURSUANT TO RULE 144, RULE 144A OR
REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (III) AN
OPINION OF COUNSEL, WHICH OPINION IS REASONABLY SATISFACTORY TO THE COMPANY,
HAS BEEN DELIVERED TO THE COMPANY AND SUCH OPINION

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          STATES THAT THE SHARES MAY BE TRANSFERRED WITHOUT SUCH REGISTRATION.”

     Certificates evidencing the Purchased Securities and the certificates representing the
securities issued upon conversion or exchange of the Purchased Securities (or any securities issued
upon conversion or exchange of the Purchased Securities) shall not be required to contain such
legend or any other legend after (A) such securities are registered for resale under the Securities
Act, (B) following any sale of such securities pursuant to and in accordance with Rule 144, (C) if
such securities are eligible for sale under Rule 144(k), or (D) if such legend is not required
under applicable requirements of the Securities Act (including controlling judicial interpretations
and pronouncements issued by the Staff of the SEC).

     Section 4.03 No Other Representations or Warranties. Such Purchaser acknowledges and
agrees that the Company is not making and has not made any representations or warranties with
respect to the transactions contemplated hereby other than those specifically set forth in this
Agreement.

ARTICLE V

ADDITIONAL AGREEMENTS

     Section 5.01 Limited Preemptive Right.

          (a) If at any time prior to the earlier of completion of an IPO, the Company proposes to Sell,
issue or otherwise Transfer any Company Equity Security (but, in the event such sale, issuance or
transfer is pursuant to a public offering or occurs concurrently with a public offering, less the
underwriters’ discount or commissions for such public offering), then each Purchaser shall have
the right to purchase the Preemptive Right Proportionate Number of Company Equity Securities being
offered at the same price and terms as those offered by the Company provided, that the preemptive
right provided under this Section 5.01 shall not be applicable to sales or issuances of Excluded
Stock (as defined in the Series A Convertible Preferred Stock Certificate of Designation). The
“Preemptive Right Proportionate Number” shall be, at any given time, a number equal to (i) the
number of Shares beneficially owned by such Purchaser at such time multiplied by (ii) a fraction,
the numerator of which is the total number of shares of Common Stock or other Company Equity
Securities proposed to be issued or sold by the Company at such time and the denominator of which
is the total number of Shares beneficially owned by the Company Principals and their Related
Parties and the Purchasers; provided, such fraction shall not exceed 3/10. For the avoidance of
doubt, this Section 5.01 shall not be applicable to (i) the conversion or exercise of any
convertible securities, warrants, options or similar securities so long as the sale or issuance of
such securities was made in accordance with this Section 5.01 or (ii) the financing of the
transactions contemplated by the Acquisition Agreement.

          (b) In the event the Company proposes to undertake a sale or issuance of Company Equity
Securities to which this Section 5.01 applies, it shall provide each Purchaser written notice (the
“Preemptive Notice”) of its intention to do so (attaching copies of the most current drafts of any
term sheets, agreements or other documents relating thereto), specifying the proposed price (it
being understood that the form of consideration shall be cash or tangible assets

20

 

only), the identity of the purchaser and the material terms upon which the Company proposes to
Sell, issue or otherwise Transfer the same. The Purchaser shall have five (5) Business Days from
the delivery date of any Preemptive Notice to agree to purchase (if the form of consideration is
tangible assets, at such Purchaser’s option, for cash and/or the same type of tangible assets of
equal value), on the same closing date as the Company an amount of Company Equity Securities up to
the Preemptive Right Proportionate Number (in each case calculated prior to the issuance) for the
price and upon the terms specified in the Preemptive Notice by giving written notice to the Company
and stating therein the amount of Company Equity Securities to be purchased. If a definitive
agreement for the purchase of such Company Equity Securities is not provided along with the
Preemptive Notice, Purchaser’s election to purchase Company Equity Securities pursuant to such
Preemptive Notice shall not be binding until a definitive agreement is executed (but, subject to
Section 5.01(c), an election to not purchase shall be binding).

          (c) In the event Purchasers do not purchase all of the Preemptive Right Proportionate Number
of Company Equity Securities pursuant to this Section 5.01, the Company shall have 180 days after
the date of the Preemptive Notice to consummate the sale or issuance of the Company Equity
Securities with respect to which Purchasers’ preemptive rights were not exercised to any Person at
or above the price and upon terms not more favorable in any material respect (it being understood
and agreed that any increase in the number of Company Equity Securities or any decrease in the
price thereof shall be deemed material for this purpose) than the terms specified in the initial
Preemptive Notice given in connection with such sale or issuance.

     Section 5.02 Tag-Along Rights.

          (a) In the event that, in connection with a proposed Sale of Shares by a Company Principal or
any of his Related Parties prior to an IPO, (i) the Tagging Shareholder (as defined in the
Shareholders Agreement) does not elect, or no longer has the right to elect, to exercise its
tag-along rights provided under Section 2.2 of the Shareholders Agreement (or waives or is deemed
to have waived such rights) or (ii) the Tagging Shareholder elects to exercise its tag-along rights
provided under Section 2.2 of the Shareholders Agreement, but the number of Shares sought to be
sold by the Tagging Shareholder is less than the number of the Taggable Shares (as defined in the
Shareholders Agreement) (any such proposed Sale by a Company Principal or any of his Related
Parties, an "Investor Tag-along Sale”), than the Company Principal shall deliver to each of the
Purchasers a written notice (an “Purchaser Sale Notice”), which notice shall state (i) the name of
the proposed Transferee, (ii) the number of Taggable Shares and the Remaining Taggable Shares
Number, (iii) the proposed purchase price therefor, including a description of any non-cash
consideration (along with any reports and other material documents (and summaries of any other
material oral information) relevant to the valuation of such non-cash consideration which the
Company Principal or its Related Parties has, so long as the Purchaser agrees to keep such reports,
documents and information confidential), and (iv) the other material terms and conditions of the
proposed Sale, including the proposed closing date (which date may not be less than fifteen (15)
Business Days after delivery of the Purchaser Sale Notice). Each Purchaser desiring to participate
in any such Sale shall deliver to the Company Principal, within fifteen (15) Business Days after
the delivery to all Purchasers of the Purchaser Sale Notice (the “Response Period”), a written
notice (an “Purchaser Tag-along Notice”), which notice shall state that such Purchaser elects to
exercise its tag-along rights under this Section 5.02 and shall state the maximum number of Shares
sought to be sold by such

21

 

Purchaser. No Company Principal shall, or shall permits any of his Related Party to,
consummate any Purchaser Tag-along Sale unless each Purchaser has been provided the right from the
proposed Transferee to sell to the proposed Transferee identified in the Purchaser Sale Notice, on
the terms and conditions set forth in the Purchaser Sale Notice, that number of Shares that is
equal to (a) if the aggregate number of Shares that the Purchasers seek to sell as reflected in the
Purchaser Tag-along Notices delivered within the Response Period exceeds the Available Remaining
Taggable Shares Number, such Purchaser’s Taggable Percentage of the Available Remaining Taggable
Shares Number (rounded down to the nearest whole number) or (b) if the aggregate number of Shares
that the Purchasers seek to sell as reflected in the Purchaser Tag-along Notices delivered during
the Response Period is equal to or less than the Available Remaining Taggable Shares Number, the
maximum number of Shares sought to be sold by such Purchaser in connection with a proposed Sale as
reflected in the Purchaser Tag-along Notice.

          (b) Each Purchaser, if it has elected to exercise its tag-along rights provided under this
Section 5.02, shall participate in the Sale by delivering to the applicable Company Principal at
the closing of the Sale of the Shares of the Company Principal or his Related Party’ to the
Transferee the Shares to be sold by the Tagging Shareholder, duly endorsed for transfer, against
payment of the aggregate purchase price therefor.

          (c) Transfers by a Company Principal to his Related Parties or by one of his Related Parties
to him or another of his Related Parties shall not be subject to the tag-along rights provided
under this Section 5.02.

          (d) Notwithstanding the other provisions of this Section 5.02, with respect to any Block Trade
of a Substantial Block (both as defined in the Shareholders Agreement) under a registration
statement pursuant to Article IV of the Shareholders Agreement, (i) the fifteen (15) Business Day
period referred to in Section 5.02(a) shall be reduced to a three (3) Business Day period and (ii)
the Purchaser Sale Notice may omit the name of the proposed Transferee and may specify the proposed
minimum purchase price (in lieu of the purchase price).

          (e) Each of the Purchasers and any subsequent holders of Preferred Stock and Purchased Common
Stock shall be an express third-party beneficiary of the provisions of Section 5.01 and this
Section 5.02 applicable to the Purchasers and Section 5.01 and this Section 5.02 shall not be
amended in a manner adverse to the Purchasers or eliminated, including by means of a termination of
this Agreement, without the prior written consent of holders of a majority of the Shares held by
the Purchasers and such subsequent holders.

     Section 5.03 Information Rights. The Company shall provide each Purchaser access to
the materials provided to the lenders pursuant to Section 6.01 of the Credit Agreement, provided,
each Purchaser shall enter into an agreement substantially similar to the Confidentiality Agreement
with respect to non-public information contained in materials prior to the granting of such access.

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ARTICLE VI

MISCELLANEOUS

     Section 6.01 Use of Proceeds. The Company shall use the net proceeds it receives from
the sale of the Purchased Securities as described under “Use of Proceeds” in the Private Placement
Memorandum.

     Section 6.02 Interpretation; Severability. Article, Section, Schedule, and Exhibit
references are to this Agreement, unless otherwise specified. All references to instruments,
documents, contracts, and agreements are references to such instruments, documents, contracts, and
agreements as the same may be amended, supplemented, and otherwise modified from time to time,
unless otherwise specified. The word “including” shall mean “including but not limited to.”
Whenever any party has an obligation under this Agreement, the expense of complying with that
obligation shall be an expense of such party unless otherwise specified. If any provision of this
Agreement is held to be illegal, invalid, not binding, or unenforceable, such provision shall be
fully severable and this Agreement shall be construed and enforced as if such illegal, invalid, not
binding, or unenforceable provision had never comprised a part of this Agreement, and the remaining
provisions shall remain in full force and effect.

     Section 6.03 Survival of Representations and Warranties. The representations and
warranties set forth in Section 3.05 hereunder shall survive the execution and delivery of this
Agreement indefinitely. The remainder of the representations or warranties set forth in this
Agreement shall survive the execution and delivery of this Agreement until the earlier of (i) ten
(10) Business Days following the delivery of audited financial statements of the Company for the
year ended December 31, 2007 and (ii) an IPO (as defined in the Certificate of Designations). The
covenants made in this Agreement shall survive the Closing and remain operative and in full force
and effect regardless of acceptance of any of the Purchased Securities by the Purchasers and
payment therefor and repayment, conversion, exercise or repurchase thereof. The Company shall
indemnify, defend, protect and hold harmless each Purchaser and the officers, directors, partners,
members, agents, employees and Affiliates of each of them from and against any and all losses,
claims, damages, liabilities, settlement costs and expenses, including, without limitation, costs
of preparation and reasonable attorneys’ fees of one counsel to the Purchasers, promptly as
incurred, arising out of or relating to (i) any misrepresentation or breach of any representation
or warranty made by the Company in this Agreement or the Credit Agreement or any certificate,
instrument or document contemplated hereby or thereby to the extent such losses, claims, damages,
liabilities, settlement costs and expenses exceed $100 million in the aggregate, or (ii) any breach
of any covenant, agreement or obligation of the Company contained in this Agreement or any
certificate, instrument or document contemplated hereby.

     Section 6.04 Waivers; Remedies; Amendments.

          (a) No Waiver; Remedies Cumulative. No failure or delay on the part of any party in
exercising any right, power, or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right, power, or remedy preclude any other or further
exercise thereof or the exercise of any right, power, or remedy. The remedies provided for herein
are cumulative and are not exclusive of any remedies that may be available to a party at law or in
equity or otherwise.

23

 

          (b) Amendments and Modifications. Except as otherwise provided herein, no amendment,
waiver, consent, modification, or termination of any provision of this Agreement shall be effective
unless signed by each of the parties hereto affected by such amendment, waiver, consent,
modification, or termination. Any amendment, supplement or modification of or to any provision of
this Agreement, any waiver of any provision of this Agreement, and any consent to any departure by
any party hereto from the terms of any provision of this Agreement shall be effective only in the
specific instance and for the specific purpose for which made or given. Except where notice is
specifically required by this Agreement, no notice to or demand on any party hereto in any case
shall entitle any party hereto to any other or further notice or demand in similar or other
circumstances.

     Section 6.05 Binding Effect; Assignment. This Agreement shall be binding upon the
Company, the Purchasers, and their respective successors and permitted assigns. Except as expressly
provided in this Agreement, this Agreement shall not be construed so as to confer any right or
benefit upon any Person other than the parties to this Agreement and their respective successors
and permitted assigns.

     Section 6.06 Non-Disclosure. Notwithstanding anything herein to the contrary, each
Confidentiality Agreement shall remain in full force and effect according to its terms regardless
of any termination of this Agreement.

     Section 6.07 Communications. All notices and demands provided for hereunder shall be
in writing and shall be given by registered or certified mail, return receipt requested, telecopy,
air courier guaranteeing overnight delivery or personal delivery to the following addresses:

     (a) If to a Purchaser, to the contact information set forth on such Purchaser’s
signature page hereto.

with a copy (which shall not constitute notice) to:

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

Attention: Joshua Tinkelman

Facsimile: 212-751-4864

     (b) If to the Company:

1601 NW Expressway, Suite 1600

Oklahoma City, Oklahoma 73118

Attention: Matthew McCann

Facsimile: (405) 753-5975

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with a copy (which shall not constitute notice) to:

Vinson & Elkins L.L.P.

First City Tower

1001 Fannin, Suite 2500

Houston, Texas 77002

Attention: T. Mark Kelly

Facsimile: (713) 615-5531

or to such other address as the Company or such Purchaser may designate in writing. All notices and
communications shall be deemed to have been duly given at the time delivered by hand, if personally
delivered; upon actual receipt if sent by certified mail, return receipt requested, or regular
mail, if mailed; when receipt acknowledged, if sent via facsimile; and upon actual receipt when
delivered to an air courier guaranteeing overnight delivery.

     Section 6.08 Entire Agreement. This Agreement and the other agreements and documents
referred to herein are 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 and therein. There are no restrictions,
promises, representations, warranties, covenants or undertakings, other than those set forth or
referred to herein or therein with respect to the rights granted by the Company or any of its
Affiliates or each of the Purchasers or any of their Affiliates set forth herein or therein. This
Agreement and the other agreements and documents referred to herein supersede all prior agreements
and understandings between the parties with respect to such subject matter.

     Section 6.09 Governing Law. This Agreement will be construed in accordance with and
governed by the laws of the State of New York without regard to principles of conflicts of laws.

     Section 6.10 Execution in Counterparts. This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original and all of which
counterparts, taken together, shall constitute but one and the same Agreement.

     Section 6.11 Finder’s Fee. Each party represents that it neither is nor will be
obligated for any finder’s fee or commission or other similar fee or commission in connection with
the purchase of Purchased Securities hereunder, other than placement agent fees paid by the Company
to Banc of America Securities, LLC. The Company agrees to indemnify and hold harmless each
Purchaser from any liability for any commission or compensation in the nature of a such a fee (and
the costs and expenses of defending against such liability or asserted liability) for which the
Company or any of its officers, employees or representatives is responsible.

     Section 6.12 Fees and Expenses. The Company and the Purchasers shall bear their own
expenses and legal fees incurred on their behalf with respect to this Agreement and the
transactions contemplated hereby; provided, however, that the Company shall bear up to an amount
previously agreed for the fees and expenses of Latham & Watkins LLP incurred with

25

 

respect to this Agreement and the transactions contemplated hereby upon receipt of proper
documentation therefor.

     Section 6.13 Exculpation Among Purchasers. Each Purchaser acknowledges that it is not
relying upon any person or entity, other than the Company and its representatives, in making its
investment or decision to invest in the Company. Each Purchaser agrees that no Purchaser nor the
respective controlling persons, officers, directors, partners, members, agents, or employees of any
Purchaser shall be liable to any other Purchaser for any action heretofore or hereafter taken or
omitted to be taken by any of them in connection with the purchase of the Purchased Securities.

     Section 6.14 Waiver of Conflicts. Each party to this Agreement acknowledges that
Latham & Watkins LLP, counsel for certain of the Purchasers, has in the past performed and may
continue to perform legal services for certain of the Purchasers in matters unrelated to the
transactions described in this Agreement, including the representation of such Purchasers in
capital financings and other matters. Accordingly, each party to this Agreement hereby (a)
acknowledges that Latham & Watkins LLP has represented only the Purchasers that have engaged it in
connection with the transactions contemplated herein and not any of the other Purchasers or the
Company with respect to the transactions contemplated herein; (b) acknowledges that they have had
an opportunity to ask for information relevant to such representation; and (c) gives its informed
consent to Latham & Watkins LLP’s representation of certain of such Purchasers in such unrelated
matters and to Latham & Watkins LLP’s representation of such Purchasers in connection with this
Agreement and the transactions contemplated hereby.

[SIGNATURE PAGE FOLLOWS]

26

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first set
forth.

	 	 	 	 	 	 	 
	 	 	RIATA ENERGY, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Tom L. Ward
	 	 	 	 	 
	 

	 	 	 	Name:	 	Tom L. Ward
	 

	 	 	 	Title:	 	Chairman and Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	Solely for the purposes of Section 5.02 hereof:
	 
	 	 	 	 	 	 
	 	 	TOM L. WARD
	 
	 	 	 	 	 	 
	 
	 	/s/ Tom L. Ward
	 	 	 
	 	 	Tom L. Ward
	 
	 	 	 	 	 	 
	 	 	N. MALONE MITCHELL, 3rd
	 
	 	 	 	 	 	 
	 
	 	/s/ N. Malone
Mitchell
	 	 	 
	 	 	N. Malone Mitchell, 3rd

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	THE PURCHASERS:
	 
	 	 	 	 	 	 
	 	 	BLUE RIDGE INVESTMENTS, L.L.C.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Ray Cubero	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Ray Cubero
	 

	 	 	 	Title:
	 	Authorized Signatory

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:    76,190   
	 
	 	 	 	 	 	 
	 	 	Number of Common Units: ___________
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$15,999,900.00	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	Daven Patel	 	 	 	 
	 	 	 
	 
	 	214 N. Tryon St	 	 	 	 
	 	 	 
	 
	 	Charlotte, NC 28255	 	 	 	 
	 	 	 
	 
	 	704-386-4161	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	(704) 387-3621
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	x	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	CENTAURUS CAPITAL, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ John D. Arnold
	 

	 	 	 	 
	 

	 	 	 	Name: John D. Arnold
	 

	 	 	 	Title: Managing Member

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock: 47,619
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units:  -0-  
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$9,999,990.00	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	 	 	 	 	 
	 	 	2629 Yorktown Place 
	 	 	Houston, TX 77056 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	(713) 554-1350
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	þ	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE SECURITIES (USA), LLC
	 
	 	 	 	 
	 

	 	By:
	 	CREDIT SUISSE SECURITIES (USA), LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Todd Sandoz
	 

	 	 	 	 
	 

	 	 	 	Name: Todd Sandoz
	 

	 	 	 	Title: Managing Director

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:   19,048  
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:___________
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$4,080,000	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	Credit Suisse Securities (USA) LLC 	 	 	 	 
	 	 	 
	 
	 	Attn: Jeffrey B. Andreski 	 	 	 	 
	 	 	 
	 
	 	11 Madison Avenue, 3rd Floor 	 	 	 	 
	 	 	 
	 
	 	New York NY 10010 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	(212) 325-1150
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	o	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	x	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	DALEA PARTNERS
	 
	 	 	 	 
	 

	 	By:	 	/s/ Malone Mitchell
	 

	 	 	 	 
	 

	 	 	 	Name: N. Malone Mitchell
	 

	 	 	 	Title: Partner

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:	47,619
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:___________
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$ 9,999,990.00
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	701 S. Taylor, Suite 500
	 	 	 
	 
	 	Amarillo, TX 79101
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 (806)-373-3454
	 

	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	x	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	FARALLON CAPITAL PARTNERS, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	FARALLON PARTNERS, L.L.C.,
their General Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Monica R. Landry
	 

	 	 	 	 
	 

	 	 	 	Name: Monica R. Landry
	 

	 	 	 	Title: Managing Member

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:	61,471
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:___________
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$12,900,910
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	Farallon Capital Management, LLC
	 	 	 
	 
	 	One Maritime Plaza, Suite 1325
	 	 	 
	 
	 	San Francisco, CA 94111
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 (415) 421-2133
	 

	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	x	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	FARALLON CAPITAL INSTITUTIONAL PARTNERS, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	FARALLON PARTNERS, L.L.C.,

their General Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Monica R. Landry
	 

	 	 	 	 
	 

	 	 	 	Name: Monica R. Landry
	 

	 	 	 	Title: Managing Member

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:	49,019
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:___________
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$10,293,900
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Farallon Capital Management LLC
	 	 	 
	 
	 	One Maritime Plaza, Suite 1325
	 	 	 
	 
	 	San Francisco, CA 94111
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 (415) 421-2133
	 

	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	x	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	FARALLON CAPITAL INSTITUTIONAL PARTNERS II, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	FARALLON PARTNERS, L.L.C., 

their General Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Monica R. Landry
	 

	 	 	 	 
	 

	 	 	 	Name: Monica R. Landry
	 

	 	 	 	Title: Managing Member

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:  3,890 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:___________
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$816,900
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Farallon Capital
Management LLC
	 	 	 
	 
	 	One Maritime Plaza,
Suite 1325
	 	 	 
	 
	 	San Francisco, CA 94111
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	(415)-421-2133
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	þ	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	FARALLON CAPITAL INSTITUTIONAL PARTNERS III, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	FARALLON PARTNERS, L.L.C., 

their General Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Monica R. Landry
	 

	 	 	 	 
	 

	 	 	 	Name: Monica R. Landry
	 

	 	 	 	Title: Managing Member

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:  2,333 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:___________
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$ 489,930	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Farallon Capital
Management LLC
	 	 	 
	 
	 	One Maritime Plaza,
Suite 1325
	 	 	 
	 
	 	San Francisco, CA 94111
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	(415) 421-2133
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	þ	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	TINICUM PARTNERS, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	FARALLON PARTNERS, L.L.C.,
their General Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Monica R. Landry
	 

	 	 	 	 
	 

	 	 	 	Name: Monica R. Landry
	 

	 	 	 	Title: Managing Member

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:  2,333              
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:___________
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$489,930
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Farallon Capital Management LLC
	 	 	 
	 
	 	One Maritime Plaza, Suite 1325
	 	 	 
	 
	 	San Francisco, CA 94111
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	(415) - 421-2133
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	x	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	GOLDMAN, SACHS & CO.,

on behalf of its Principal Strategies Group
	 
	 	 	 	 
	 

	 	By:	 	/s/ Ken Eberts
	 

	 	 	 	 
	 

	 	 	 	Name: Ken Eberts
	 

	 	 	 	Title: Managing Director

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock: 213,333 
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units: 0 
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$44,799,930.00	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	Sabrina Liak, Goldman Sachs 
	 	 	 
	 
	 	1 New York Plaza,
47th Floor 	 	 	 	 
	 	 	 
	 
	 	New York, NY 10004
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	(212) 256-4869
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	þ	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	HBK FUND L.P.
	 
	 	 	 	 
	 

	 	By:
	 	HBK INVESTMENTS L.P.,

Investment Advisor
	 
	 	 	 	 
	 

	 	By:	 	/s/ J. Baker Gentry 
	 

	 	 	 	 
	 

	 	 	 	Name: J. Baker Gentry, Jr.
	 

	 	 	 	Title: Authorized Signatory

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock: 119,048 
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units:________
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$25,000,080	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o HBK Investments,
L.P. 
	 	 	 
	 
	 	300 Crescent Court,
Suite 700 
	 	 	 
	 
	 	Dallas, TX 75201 
	 	 	 
	 
	 	Attn: Legal 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	(214) 758-1207
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	þ	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	HIGHBRIDGE INTERNATIONAL LLC
	 
	 	 	 	 
	 

	 	By:
	 	HIGHBRIDGE CAPITAL MANAGEMENT, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Adam J. Chill
	 

	 	 	 	 
	 

	 	 	 	Name: Adam J. Chill
	 

	 	 	 	Title: Managing Director

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:  -0- 

	 
	 	 	 	 	 	 
	 	 	Number of Common
Units:  526,316 
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$10,000,004.00
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Highbridge Capital
Management, LLC
	 	 	 
	 
	 	9 West 57th Street,
27th Floor
	 	 	 
	 
	 	New York, NY 10019
	 	 	 
	 
	 	Attn: Adam J. Chill
	 	 	 
	 	 	Facsimile:	 	(212) 751-0755
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	þ	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	INVESTMENT PARTNERS (C) LTD.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	QUELLOS CAPITAL MANAGEMENT, L.P. its Investment
Manager
	 
	 	 	 	 
	 

	 	By:	 	/s/ Marie M. Bender
	 
	 	 	 	 
	 

	 	 	 	Name: Marie M. Bender
	 

	 	 	 	Title: General Counsel
	 
	 	 	 	 
	 

	 	By:	 	/s/ Paul Bonde
	 

	 	 	 	 
	 

	 	 	 	Name: Paul Bonde
	 

	 	 	 	Title: Principal, Investment
Operations

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:  43,810 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:  568,421 
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$20,000,099
	 	 	 
	 
	 
	Address for Notice
	 	601 Union Street,
56th Floor
	 	 	 
	 
	 	Seattle, WA 98101
	 	 	 
	 
	 	Attn: Robert
Ellsworth
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	(206) 613-6714
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	o	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	þ	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	KINGS ROAD INVESTMENTS LTD.
	 
	 	 	 	 
	 

	 	By:
	 	POLYGON INVESTMENT PARTNERS LP,

its Investment Manager
	 
	 	 	 	 
	 

	 	By:	 	/s/ Brandon L. Jones
	 

	 	 	 	 
	 

	 	 	 	Name: Brandon L. Jones
	 

	 	 	 	Title: Co-Head, Private Investments

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:                    
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:  1,842,105 
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$34,999,995
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	598 Madison Avenue
	 	 	 
	 
	 	14th Floor
	 	 	 
	 
	 	New York, NY 10022
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	(212) 359-7303
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	þ	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	LB I GROUP INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Paul H. Tice
	 

	 	 	 	 
	 

	 	 	 	Name: Paul H. Tice
	 

	 	 	 	Title: Managing Director

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:  214,286       
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:  0            
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$45,000,060.00
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	Lehman Brothers
	 	 	 
	 
	 	745 Seventh Avenue, 8th Floor
	 	 	 
	 
	 	New York, NY 10019
	 	 	 
	 
	 	Attn: Paul Tice
	 	 	 
	 	 	Facsimile:	 	(212) 520-9364
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	þ	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	LEONARDO, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	LEONARDO CAPITAL MANAGEMENT, INC., its General
Partner
	 
	 	 	 	 
	 

	 	By:
	 	ANGELO, GORDON & CO., L.P.,

its Director
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Joseph R. Wekselblatt
	 

	 	 	 	 
	 

	 	 	 	Name:  Joseph R. Wekselblatt
	 

	 	 	 	Title: Chief Financial Officer

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:                    
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units:   289,474    
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$	 	5,500,006 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	245 Park Ave., 26th Floor
	 	 	 
	 
	 	New York, NY 10161	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	Attn: Gary Wolf	 
	 	 	 
	 	 	Facsimile:	 	(212)- 867-6395
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	o	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	x	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	MAGNETAR CAPITAL FUND, LTD	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	MAGNETAR FINANCIAL LLC,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Paul Smith	 	 
	 

	 	 	 	 

Name: Paul Smith
	 	 
	 

	 	 	 	Title: General Counsel	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A
Convertible Preferred Stock:   -0-   
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units:   789,474   
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$	 	15,000,006.00	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Magnetar Financial
LLC
	 	 	 
	 
	 	Attn: General Counsel
	 	 	 
	 
	 	1603 Orrington Ave.,
13th Floor
	 	 	 
	 
	 	Evanston, IL 60201
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(847) 905-5680
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	o

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	x

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)

	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	MAGNETAR CAPITAL FUND, LTD	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	MAGNETAR FINANCIAL LLC,	 	 
	 

	 	 	 	its Investment Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Paul Smith	 	 
	 

	 	 	 	 

Name: Paul Smith
	 	 
	 

	 	 	 	Title: General Counsel	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A
Convertible Preferred Stock:   95,240   
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units:   -0-   
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$	 	20,000,400.00	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Magnetar Financial LLC	 
	 	 	 
	 
	 	Attn: General Counsel	 
	 	 	 
	 	 	1603 Orrington Ave.,
13th Floor	 
	 	 	 
	 	 	Evanston, IL 60201	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	(847) 905-5680
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	o

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	x

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	MOORE MACRO FUND, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	MOORE CAPITAL MANAGEMENT, LLC	 	 
	 

	 	 	 	Trading Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Anthony Gallagher	 	 
	 

	 	 	 	 

Name: Anthony Gallagher
	 	 
	 

	 	 	 	Title: Director of Operations	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A
Convertible Preferred Stock: 238,095 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:                    
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$49,999,950.00	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	1251 Avenue of the
Americas,
52nd Floor
	 	 	 
	 
	 	New York, NY 10020 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(212) 382-9877
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	þ

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	OSPRAIE SANDRIDGE HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	THE OSPRAIE FUND, LP,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	OSPRAIE GROUP, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard Puma 	 	 
	 

	 	 	 	 

Name: Richard Puma
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A
Convertible Preferred Stock: 59,523 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:                    
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$12,499,830.00	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Ospraie Advisors,
L.P. 
	 	 	 
	 
	 	320 Park Avenue,
27th Floor 
	 	 	 
	 
	 	New York, NY 10022 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(212) 980-3796
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	þ

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	OSPRAIE SPECIAL OPPORTUNITIES	 	 
	 	 	MASTER ALTERNATIVE HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	OSPRAIE ASSOCIATES, LLC,	 	 
	 

	 	 	 	its Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	OSPRAIE ASSOCIATES HOLDINGS,	 	 
	 

	 	 	 	LLC, its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	OSPRAIE GROUP, LLC,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard Puma	 	 
	 

	 	 	 	 

Name: Richard Puma
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred Stock:  59,523         
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:                    
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$12,499,830.00
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Ospraie Advisors, L.P.
	 	 	 
	 
	 	320 Park Avenue, 27th Floor
	 	 	 
	 
	 	New York, NY 10022
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(212) 980-3796
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	þ

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	PORTSIDE GROWTH AND OPPORTUNITY FUND	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey Solomon 	 	 
	 

	 	 	 	 

Name: Jeffrey Solomon
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred Stock:                    
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units: 105,263 
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	 	 	$1,999,997.00 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Ramius Capital
Group, LLC 
	 	 	 
	 
	 	666 Third Avenue,
26th Floor 
	 	 	 
	 
	 	New York, NY 10017 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(212) 201-4802
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	þ

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	QRA SR, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	QUELLOS PRIVATE CAPITAL	 	 
	 

	 	 	 	MARKETS, L.P., its Investment Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	QUELLOS CAPITAL MANAGEMENT,	 	 
	 

	 	 	 	L.P., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Marie M. Bender
	 

	 	 	 	 

Name: Marie M. Bender

	 

	 	 	 	Title: General Counsel
	 
	 

	 	By:	 	/s/ Paul Bonde
	 

	 	 	 	 

Name: Paul Bonde
	 

	 	 	 	Title: Principal, Investment Operations

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred Stock:  23,810              
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:   0        
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$5,000,100	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	601 Union Street, 56th Floor
	 	 	 
	 
	 	Seattle, WA 98101
	 	 	 
	 
	 	Attn: Robert Ellsworth
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(206) 613-6714
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	o

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	þ

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	RCG BALDWIN, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RAMIUS CAPITAL GROUP, L.L.C.,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	C4S & CO., L.L.C.,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey Solomon	 	 
	 

	 	 	 	 

Name: Jeffrey Solomon
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred Stock:                    
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units:  52,632  
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$1,000,008.00	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Ramius Capital
Group LLC	 	 	 	 
	 	 	 
	 
	 	666 Third Avenue, 26th Floor	 	 	 	 
	 	 	 
	 
	 	New York, NY 10017	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(212) 845-7990
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	x

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	RCG CARPATHIA MASTER FUND, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey Solomon	 	 
	 

	 	 	 	 

Name: Jeffrey Solomon
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred Stock:                    
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units:  210,526
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$	 	3,999,994	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Ramius Capital
Group LLC
	 	 	 
	 
	 	666 Third Avenue, 26th
Floor
	 	 	 
	 
	 	New York, NY 10017
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(212) - 845-7990
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	x

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	RCG ENERGY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RAMIUS CAPITAL GROUP, L.L.C.,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	C4S & CO., L.L.C.,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey Solomon	 	 
	 

	 	 	 	 

Name: Jeffrey Solomon
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred Stock:                    
	 
	 	 	 	 	 	 
	 	 	Number of Common Units: 
 157,895 
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$3,000,005
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	c/o Ramius Capital Group LLC
	 	 	 
	 
	 	666 Third Avenue,
26th Floor
	 	 	 
	 
	 	New York, NY 10017
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(212) 845-7990
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	þ
	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	SILVER OAK CAPITAL, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph R. Wekselblatt	 	 
	 

	 	 	 	 

Name: Joseph R. Wekselblatt
	 	 
	 

	 	 	 	Title: Manager	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred Stock: 
 69,048 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:                    
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$14,500,080
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	245 Park Avenue, 26th Floor
	 	 	 
	 
	 	New York, NY 10161
	 	 	 
	 
	 	Attn: Gary Wolf
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(212) 867-6395
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	þ

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	STANFIELD OFFSHORE LEVERAGED ASSETS, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	STANFIELD CAPITAL PARTNERS, LLC	 	 
	 

	 	 	 	its Investment Advisor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Chris Pucillo	 	 
	 

	 	 	 	 

Name: Chris Pucillo
	 	 
	 

	 	 	 	Title: Portfolio Manager	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:  166,667  
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:                    
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$35,000,070.00	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	Stanfield Offshore
Leveraged Assets, Ltd. 	 	 	 	 
	 	 	 
	 
	 	430 Park Ave, 11th Floor 	 	 	 	 
	 	 	 
	 
	 	New York, NY 10022 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(212) - 891-9625
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	þ

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TCW ASSET MANAGEMENT COMPANY,

a California corporation, as Investment Manager under
the Amended and Restated Investment Management and
Custody Agreement dated as of December 3, 2003 among
Ensign Peak Advisors, Inc., TCW Asset Management
Company and Trust Company of the West, a California
trust company, as Sub-Custodian
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Talbot	 	 
	 

	 	 	 	 

Name:  Kurt Talbot
	 	 
	 

	 	 	 	Title:    Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Patrick Hickey	 	 
	 

	 	 	 	 

Name:  Patrick Hickey
	 	 
	 

	 	 	 	Title:    Senior
Vice President	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A
Convertible Preferred Stock: 25,602
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units:    0   
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$	 	5,376,420.00	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	TCW Energy
	 	 	 
	 
	 	865 S. Figueroa Street,
18th Floor
	 	 	 
	 
	 	Los Angeles, CA 90017
	 	 	 
	 
	 	Attn: Phil Abejar
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(213)-244-0604
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	x

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TCW ASSET MANAGEMENT COMPANY,

a California corporation, as Investment Manager under
the Amended and Restated Investment Management and
Custody Agreement dated as of March 18, 2004 among
ING Life Insurance and Annuity Company, TCW Asset
Management Company and Trust Company of the West, a
California trust company, as Sub-Custodian
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Talbot	 	 
	 

	 	 	 	 

Name: Kurt Talbot	 	 
	 

	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Patrick Hickey	 	 
	 

	 	 	 	 

Name: Patrick Hickey	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred Stock: 25,602       
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:         0          
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$	5,376,420.00
	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	TCW Energy
	 	 	 
	 
	 	865 S. Figueroa Street, 18th Floor
	 	 	 
	 
	 	Los Angeles, CA 90017
	 	 	 
	 
	 	Attn: Phil Abejar
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(213) 244-0604
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	x

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TCW ENERGY FUND XB – NL, L.P.,	 	 
	 	 	a California limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	TCW (ENERGY X) LLC,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	TCW ASSET MANAGEMENT	 	 
	 

	 	 	 	COMPANY, its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Talbot	 	 
	 

	 	 	 	 

Name: Kurt Talbot	 	 
	 

	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Patrick Hickey	 	 
	 

	 	 	 	 

Name: Patrick Hickey	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred Stock: 107,526      
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:        0       
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$	22,580,460.00
	 	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	TCW Energy
	 	 	 
	 
	 	865 S. Figueroa Street, 18th Floor
	 	 	 
	 
	 	Los Angeles, CA 90017
	 	 	 
	 
	 	Attn: Phil Abejar
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(213) 244-0604
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	x

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

 [Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TCW ENERGY FUND XD – NL, L.P.,	 	 
	 	 	a California limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	TCW (ENERGY X) LLC,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	TCW ASSET MANAGEMENT	 	 
	 

	 	 	 	COMPANY, its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Talbot 	 	 
	 

	 	 	 	 

Name: Kurt Talbot
	 	 
	 

	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Patrick Hickey 	 	 
	 

	 	 	 	 

Name: Patrick Hickey
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A
Convertible Preferred Stock: 79,365 
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units: 0 
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit
	 	$16,666,650.00
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	TCW Energy 
	 	 	 
	 
	 	865 S. Figueroa Street,
18th Floor 
	 	 	 
	 
	 	Los Angeles, CA 90017 
	 	 	 
	 
	 	Attn: Phil Abijor 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Facsimile:	 	(213) 244-0604
	 
	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	 	 	 
	þ

	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	 	 
	o

	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	 	 
	o

	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	TEMPO MASTER FUND LP
	 
	 	 	 	 
	 

	 	By:
	 	JD CAPITAL MANAGEMENT LLC
	 

	 	 	 	(its Investment Advisor)
	 
	 	 	 	 
	 

	 	By:	 	/s/ Donald McCarthy 
	 

	 	 	 	 
	 

	 	 	 	Name: Donald McCarthy
	 

	 	 	 	Title: Chief Financial Officer

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:                    
	 
	 	 	 	 	 	 
	 	 	Number of Common
Units: 789,474 
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$15,000,006	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	Two Greenwich Plaza,
2nd Floor 
	 	 	 
	 
	 	Greenwich, CT 06830 
	 	 	 
	 
	 	Attn: Don McCarthy 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	     (203)
985-8920
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	þ	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	TLW PROPERTIES, L.L.C.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Tom L. Ward
	 

	 	 	 	 
	 

	 	 	 	Name: Tom L. Ward
	 

	 	 	 	Title: Manager

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:  262,857 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:                    
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$ 55,199,970
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	P.O. Box 54525
	 	 	 
	 
	 	Oklahoma City, OK
73154-1525
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	     (405)
848-5143
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	o	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	þ	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	UBS O’CONNOR LLC fbo O’CONNOR GLOBAL CONVERTIBLE ARBITRAGE MASTER LIMITED
	 
	 	 	 	 
	 

	 	By:	 	/s/ George Locasto
	 

	 	 	 	 
	 

	 	 	 	Name: George Locasto
	 

	 	 	 	Title: Managing Director

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock:  7,144             
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:                    
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$1,500,240
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	1 North Wacker Dr.
	 	 	 
	 
	 	Chicago, IL 60606
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	     (312) 525-6271
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	o	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	þ	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	UBS O’CONNOR LLC fbo O’CONNOR GLOBAL CONVERTIBLE ARBITRAGE II MASTER LIMITED
	 
	 	 	 	 
	 

	 	By:	 	/s/ George Locasto
	 

	 	 	 	 
	 

	 	 	 	Name: George Locasto
	 

	 	 	 	Title: Managing Director

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock: 15,067 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:                    
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$3,164,070
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	1 North Wacker Dr.
	 	 	 
	 
	 	Chicago, IL 60606
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	     (312)
525-6271
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	þ	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	o	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

	 	 	 	 	 
	 	 	UBS O’CONNOR LLC fbo O’CONNOR PIPES CORPORATE STRATEGIES MASTER LIMITED
	 
	 	 	 	 
	 

	 	By:	 	/s/ George Locasto 
	 

	 	 	 	 
	 

	 	 	 	Name: George Locasto
	 

	 	 	 	Title: Managing Director

	 	 	 	 	 	 	 
	Amount of Purchased Securities	 	Shares of Series A Convertible Preferred
Stock: 1,600 
	 
	 	 	 	 	 	 
	 	 	Number of Common Units:                    
	 
	 	 	 	 	 	 
	Purchase Price ($210/Preferred Share;
$19/Common Unit

	 	$336,000	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Address for Notice
	 	1 North Wacker Dr. 
	 	 	 
	 
	 	Chicago, IL 60606 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Facsimile:	 	     (312)
525-6271
	 

	 	 	 	 	 	 

The Purchaser referenced above hereby certifies that it is (check one):

	o	 	a “Qualified Institutional Buyer” (as defined in Rule 144A under the Securities
Act) and an “accredited investor” (as defined in Rule 501(a) under the
Securities Act)
	 
	þ	 	a non-“U.S. Person” (as defined in Regulation S under the Securities Act)
	 
	o	 	an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act)

[Signature Page to Purchase Agreement]

 

 

SCHEDULE 2.01

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Series A	 	 	 	 	 	 	 
	 	 	Convertible	 	 	 	 	 	 	 
	 	 	Preferred	 	 	Common	 	 	Total Purchase	 
	Purchaser	 	Stock	 	 	Units	 	 	Price	 
	Silver Oak Capital, L.L.C
	 	 	69,048	 	 	 	 	 	 	$	14,500,080.00	 
	Leonardo, L.P.
	 	 	 	 	 	 	289,474	 	 	 	5,500,006.00	 
	Blue Ridge Investments, L.L.C
	 	 	76,190	 	 	 	 	 	 	 	15,999,900.00	 
	Centaurus Capital, LLC
	 	 	47,619	 	 	 	 	 	 	 	9,999,990.00	 
	Credit Suisse Securities (USA), LLC
	 	 	19,048	 	 	 	 	 	 	 	4,000,080.00	 
	Farallon Capital Partners, L.P.
	 	 	61,471	 	 	 	 	 	 	 	12,908,910.00	 
	Farallon Capital Institutional Partners, L.P.
	 	 	49,019	 	 	 	 	 	 	 	10,293,990.00	 
	Farallon Capital Institutional Partners II, L.P.
	 	 	3,890	 	 	 	 	 	 	 	816,900.00	 
	Farallon Capital Institutional Partners III, L.P.
	 	 	2,333	 	 	 	 	 	 	 	489,930.00	 
	Tinicum Partners, L.P.
	 	 	2,333	 	 	 	 	 	 	 	489,930.00	 
	Goldman, Sachs & Co.
	 	 	213,333	 	 	 	 	 	 	 	44,799,930.00	 
	HBK Fund L.P.
	 	 	119,048	 	 	 	 	 	 	 	25,000,080.00	 
	Highbridge International LLC
	 	 	 	 	 	 	526,316	 	 	 	10,000,004.00	 
	Tempo Master Fund
	 	 	 	 	 	 	789,474	 	 	 	15,000,006.00	 
	LB I Group Inc.
	 	 	214,286	 	 	 	 	 	 	 	45,000,060.00	 
	Magnetar Capital Fund, Ltd.
	 	 	 	 	 	 	789,474	 	 	 	15,000,006.00	 
	Magnetar Capital Fund, LP
	 	 	95,240	 	 	 	 	 	 	 	20,000,400.00	 
	Dalea Partners
	 	 	47,619	 	 	 	 	 	 	 	9,999,990.00	 
	Moore Macro Fund, LP
	 	 	238,095	 	 	 	 	 	 	 	49,999,950.00	 
	Ospraie Special Opportunities Master Alternative
Holdings LLC
	 	 	59,523	 	 	 	 	 	 	 	12,499,830.00	 
	Ospraie Sandridge Holdings LLC
	 	 	59,523	 	 	 	 	 	 	 	12,499,830.00	 
	King’s Road Investments Ltd.
	 	 	 	 	 	 	1,842,105	 	 	 	34,999,995.00	 
	QRA SR, Ltd.
	 	 	23,810	 	 	 	 	 	 	 	5,000,100.00	 
	Investment Partners (C), Ltd.
	 	 	43,810	 	 	 	568,421	 	 	 	20,000,099.00	 
	Portside Growth and Opportunity Fund
	 	 	 	 	 	 	105,263	 	 	 	1,999,997.00	 
	RCG Carpathia Master Fund, Ltd.
	 	 	 	 	 	 	157,895	 	 	 	3,000,005.00	 
	RCG Energy, LLC
	 	 	 	 	 	 	210,526	 	 	 	3,999,994.00	 
	RCG Baldwin, LP
	 	 	 	 	 	 	52,632	 	 	 	1,000,008.00	 
	Stanfield Offshore Leveraged Assets, Ltd.
	 	 	166,667	 	 	 	 	 	 	 	35,000,070.00	 
	TCW Asset Management Company – Ensign
	 	 	25,602	 	 	 	 	 	 	 	5,376,420.00	 
	TCW Asset Management Company – ING
	 	 	25,602	 	 	 	 	 	 	 	5,376,420.00	 
	TCW Energy Fund XB – NL, L.P.
	 	 	107,527	 	 	 	 	 	 	 	22,580,670.00	 
	TCW Energy Fund XD – NL, L.P.
	 	 	79,365	 	 	 	 	 	 	 	16,666,650.00	 
	TLW Properties, L.L.C
	 	 	262,857	 	 	 	 	 	 	 	55,199,970.00	 
	UBS O’Connor LLC fbo O’Connor PIPES Corporate
Strategies Master Limited
	 	 	7,144	 	 	 	 	 	 	 	1,500,240.00	 
	UBS O’Connor LLC fbo O’Connor Global Convertible
Arbitrage Master Limited
	 	 	15,067	 	 	 	 	 	 	 	3,164,070.00	 
	UBS O’Connor LLC fbo O’Connor Global Convertible
Arbitrage II Master Limited
	 	 	1,600	 	 	 	 	 	 	 	336,000.00	 
	 
	 	 	 	 	 	 	 	 	 
	Total
	 	 	2,136,669	 	 	 	5,331,580	 	 	$	550,000,510.00	 
	 
	 	 	 	 	 	 	 	 	 

Schedule 2.01

 

 

SCHEDULE 2.04

	 	 	 
	Bank Name:

	 	Bank of America
	 

	 	701 S. Taylor
	 

	 	Amarillo, Texas
	 
	 	 
	ABA #:

	 	26009593
	 
	 	 
	Acct #:

	 	000007183925
	 
	 	 
	Acct Name:

	 	Riata Energy, Inc./dba SandRidge Energy

Schedule 2.04

 

 

SCHEDULE 3.24

	 	 	 
	Lariat Services, Inc.

	 	Texas corporation
	 
	 	 
	PetroSource Energy Company, L.P.

	 	Texas limited partnership
	 
	 	 
	ROC Gas Company

	 	Texas corporation

Schedule 3.06

 

 

EXHIBIT A

FORM OF REGISTRATION RIGHTS AGREEMENT

[See attached]

 A-1

 

 

EXHIBIT B

FORM OF WARRANT

[See attached]

 B-1

 

 

EXHIBIT C

OPINION OF VINSON & ELKINS L.L.P.

[See attached]

 C-1

 

 

EXHIBIT D

OPINION OF IN-HOUSE COUNSEL

AS

[See attached]

 D-1

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