Document:

exv10w16

 

Exhibit
10.16

PURCHASE AND SALE AGREEMENT

     This PURCHASE AND SALE AGREEMENT (this “Agreement”) is entered into this
29th day of August, 2006, but is effective as of July 1, 2006, by and
among ALSATE MANAGEMENT AND INVESTMENT COMPANY, a Texas corporation, with its
principal place of business in Oklahoma City, Oklahoma (the “Seller”), and
LONGFELLOW RANCH PARTNERS, LP, a Nevada limited partnership, with its principal
place of business in Ft. Stockton, Texas (“Purchaser”). Seller and Purchaser are
collectively referred to in this Agreement as the “Parties” and individually as a
“Party”.

RECITALS

	 	A.	 	The Seller owns ninety-nine percent (99%) of the entire limited
partnership interest (the “Partnership Interest”) in Stockton Plaza, LP, a
Texas limited partnership (the “Limited Partnership”),
	 
	 	B.	 	The Seller owns all of the membership interest (the “Membership
Interest”) in Stockton Plaza Management, LLC, a Texas limited liability
company (the “Company”), which is the general partner of the Limited
Partnership. The Limited Partnership and the Company are collectively
referred to as the “Entities.”
	 
	 	C.	 	Purchaser desires to acquire from Seller, and Seller desires to sell
to Purchaser, the Partnership Interest, pursuant to the terms and
conditions of this Agreement.
	 
	 	D.	 	Purchaser desires to acquire from Seller, and Seller desires to sell
to Purchaser, the Membership Interest, pursuant to the terms and
conditions of this Agreement.

AGREEMENT

     In consideration of the mutual representations, warranties, covenants and
agreements contained in this Agreement, the Parties agree as follows:

ARTICLE 1

PURCHASE AND SALE OF ASSETS; CLOSING

     1.1 The Closing. Subject to the terms and conditions of this
Agreement, the consummation of the transactions contemplated by this Agreement
(the “Closing”) shall take place on August 30, 2006 (the “Closing Date”).

     1.2 The Purchase; The Purchase Price. At the Closing, Seller shall,
with an effective date of July 1, 2006, sell, convey, transfer, assign and
deliver to Purchaser, on the terms and

			
	 August 29, 2006
	 	Purchase and Sale Agreement
	 
	 	(Stockton Plaza Acquisition from
	 
	 	Alsate)
	 	 	 

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subject to the conditions set forth in this Agreement, the Partnership
Interest and the Membership Interest. The purchase price for the Partnership
Interest and the Membership Interest is $3,744,085.76 (the “Purchase Price”),
payable from Purchaser to Seller in cash at the Closing.

     1.3 Procedure at the Closing. At the Closing, the following will occur:

          (a) Seller will have satisfied each of the conditions set forth in 5;

          (b) Seller will execute and deliver to Purchaser an assignment conveying the
Partnership Interest and the Membership Interest to Purchaser;

          (c) Purchaser will have satisfied each of the conditions set forth in Article
6; and

          (d) Purchaser will deliver the Purchase Price described in Section 1.2 to
Seller in certified funds.

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF PURCHASER

     As a material inducement to Seller to enter into this Agreement and to
consummate the transactions contemplated by this Agreement, Purchaser makes the
following representations and warranties to Seller:

     2.1 Power and Authority.

          (a) Purchaser is a limited partnership duly organized, validly existing and
in good standing under the laws of the State of Nevada, and is duly qualified to
carry on its business in the State of Texas.

          (b) Purchaser has all requisite power and authority to carry on its business
as presently conducted and to enter into this Agreement. The execution and
delivery of this Agreement and the fulfillment of and compliance with the terms
and conditions hereof will not violate, nor be in conflict with, any material
provision of Purchaser’s limited partnership agreement or any material provision
of any agreement or instrument to which Purchaser is a party or by which it is
bound, or, to its knowledge, any judgment, decree, order, statute, rule or
regulation applicable to it.

          (c) The execution, delivery and performance of this Agreement and the
transactions contemplated hereby have been duly and validly authorized by all
requisite action on Purchaser’s part.

     2.2 Enforceability. This Agreement has been duly executed and
delivered by Purchaser and constitutes the legal, valid and binding obligation of
Purchaser enforceable in accordance with its terms, except as the same may be
limited by applicable bankruptcy,

			
	 	 	 
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insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and general equitable principles
regardless of whether such enforceability is considered in a proceeding at law or
in equity.

     2.3 No Commissions. No broker, finder or investment banker is entitled
to any fee or commission in connection with the transactions contemplated by this
Agreement based upon arrangements made by or on behalf of Purchaser.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF SELLER

     As a material inducement to Purchaser to enter into this Agreement and to
consummate the transactions contemplated by this Agreement, Seller makes the
following representations and warranties to Purchaser:

     3.1 Power and Authority.

          (a) Seller is a corporation duly organized, validly existing and in good
standing under the laws of the State of Texas, and is duly qualified to carry on
its business in the State of Texas.

          (b) Seller has all requisite corporate power and authority to carry on its
business as presently conducted and to enter into this Agreement. The execution and
delivery of this Agreement and the fulfillment of and compliance with the terms and
conditions hereof will not violate, nor be in conflict with, any material provision
of Seller’s articles of incorporation, bylaws or any material provision of any
agreement or instrument to which Seller is a party or by which it is bound, or, to
its knowledge, any judgment, decree, order, statute, rule or regulation applicable
to it.; and

          (c) The execution, delivery and performance of this Agreement and the
transactions contemplated hereby have been duly and validly authorized by all
requisite corporate action on Seller’s part.

     3.2 Enforceability. This Agreement constitutes Seller’s legal, valid
and binding obligation, enforceable in accordance with its terms, subject, however,
to the effects of bankruptcy, insolvency, reorganization, moratorium and other laws
for the protection of creditors, as well as to general principles of equity,
regardless whether such enforceability is considered in a proceeding in equity or
at law.

     3.3 Encumbrances. The Partnership Interest and the Membership
Interest are free and clear of all liens or other encumbrances.

     3.4 No Commissions. No broker, finder or investment banker is
entitled to any fee or commission in connection with the transactions contemplated
hereby based upon arrangements made by or on behalf of Seller.

			
	 	 	 
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	 	(Stockton Plaza Acquisition from
	 
	 	Alsate)
	 	 	 

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     3.5 No Litigation. Seller represents and warrants that there are no existing
judgments against Seller. Seller represents and warrants that to Seller’s best knowledge there is
no litigation or proceeding pending against or relating to the Entities; nor does Seller know or
have reasonable grounds to know of any basis of any such action or government investigation
relative to the Entities.

     3.6 Organization and Good Standing. The Limited Partnership is a limited partnership
duly organized, validly existing and in good standing under the laws of the State of Texas, and
the transfer of the Partnership Interest does not violate any terms of the governing documents for
the Limited Partnership. The Company is a limited liability company duly organized, validly
existing and in good standing under the laws of the Texas, and the transfer of the Membership
Interest does not violate any terms of the governing documents for the Company.

     3.7 Financial Statements.

          (a) Seller has delivered to Buyer the unaudited interim balance sheets (the “Interim Balance
Sheets”) of the Limited Partnership and the Company as of July 31, 2006 (the “Balance Sheet
Date”). To Seller’s knowledge, the Interim Balance Sheets are true and correct and have been
prepared in accordance with the past practices of the Limited Partnership and the Company,
consistently applied. The Interim Balance Sheets fairly present the financial condition and
results of operations of the Limited Partnership and the Company as of the dates thereof and
disclose all liabilities of the Limited Partnership and the Company, whether absolute, contingent,
accrued or otherwise, existing as of the dates thereof which would be required to be disclosed
thereon if the Interim Balance Sheets were prepared in accordance with generally accepted
accounting principles, consistently applied. The Interim Balance Sheets are consistent with the
books and records of the Limited Partnership and the Company.

          (b) Neither the Limited Partnership nor the Company has any liability or obligation (whether
accrued, absolute, contingent or otherwise) which is of a nature that would be required to be
reflected on the Interim Balance Sheets, except for liabilities incurred or accrued in the
ordinary course of business since the Balance Sheet Date.

     3.8 Tax Liabilities.

          (a) All taxes, penalties, interest, and any other statutory additions of the Limited
Partnership and the Company which have become due and any assessments received by the Limited
Partnership and the Company have been paid;

          (b) There are no tax liens on any of the assets of the Limited Partnership or the Company;
and

          (c) There are no pending questions nor are there issues known to Seller, relating to, or
claims or assessments for, taxes payable by the Limited Partnership or the Company.

			
	 
	 August 29, 2006
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ARTICLE 4

ADDITIONAL AGREEMENTS

     4.1 Additional Agreements. Subject to the terms and conditions
provided herein and to fiduciary obligations under applicable law as advised by
counsel, each of the Parties hereto agrees to use all reasonable efforts to take,
or cause to be taken, all actions and to do, or cause to be done, all things
necessary, proper or advisable to consummate and make effective as promptly as
practicable the transaction contemplated by this Agreement and to cooperate with
each other in connection with the foregoing, including using best efforts to obtain
all necessary consents, approvals and authorizations as are required to be obtained
under any federal, state or foreign law or regulations, to defend all lawsuits or
other legal proceedings challenging this Agreement or the consummation of the
transactions contemplated hereby, to cause to be lifted or rescinded any injunction
or restraining order or other order adversely affecting the ability of the Parties
to consummate the transaction contemplated hereby, and to effect all necessary
registrations and filings.

     4.2
Notification of Certain Matters. Each Party shall give prompt
notice to the other of (i) the occurrence or failure to occur of any event, which
occurrence or failure such Party believes would be reasonably likely to cause any
representation or warranty on the part of such Party contained in this Agreement
to be untrue or inaccurate in any material respect as of the day of Closing, and
(ii) any material failure of such Party to comply with or satisfy any covenant,
condition or agreement to be complied with or satisfied by such Party hereunder.

ARTICLE 5

CONDITIONS TO THE OBLIGATIONS OF PURCHASER

          The obligations of Purchaser as set forth in this Agreement will be subject
to the fulfillment at or prior to the Closing Date of the following conditions,
any or all of which may be waived in writing in whole or in part by Purchaser:

     5.1 Accuracy of Representations and Warranties and Compliance with
Obligations. The representations and warranties of Seller in this Agreement
will be true and correct at and as of the Closing Date with the same force and
effect as though made at and as of that time (except for changes permitted or
contemplated by the terms of this Agreement or for those representations and
warranties which address matters only as of a particular date, which shall remain
true and correct as of such date). Seller will have performed or complied in all
material respects with all of its obligations required by this Agreement to be
performed or complied with at or prior to the Closing Date.

     5.2 Closing Deliveries. Seller has delivered to Purchaser all of the
documents and instruments required of Seller under Section 1.3.

			
	 	 	 
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	 	Purchase and Sale Agreement
	 
	 	(Stockton Plaza Acquisition from
	 
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ARTICLE 6

CONDITIONS TO THE OBLIGATIONS OF SELLER

          The obligations of Seller as set forth in this Agreement will be subject to the fulfillment
at or prior to the Closing Date of the following conditions, any or all of which may be waived in
writing in whole or in part by Seller:

     6.1 Accuracy of Representations and Warranties and Compliance with Obligations. The
representations and warranties of Purchaser in this Agreement shall be true and correct at and as
of the Closing Date with the same force and effect as though made at and as of that time (except
for changes permitted or contemplated by the terms of this Agreement or for those representations
and warranties which address matters only as of a particular date, which shall remain true and
correct as of such date). Purchaser shall have performed or complied in all material respects with
all of his respective obligations required by this Agreement to be performed or complied with at
or prior to the Closing Date.

     6.2 No Order. On the Closing Date, there shall be no injunction, ruling or order in
effect issued by any Governmental Authority of competent jurisdiction directing that the
transactions contemplated herein not be consummated.

     6.3 Closing Deliveries. Purchaser has delivered to Seller the Purchase Price and all
of the documents and instruments required of Purchaser under Section 1.3.

ARTICLE 7

INDEMNIFICATION

     7.1 Indemnification.

          (a) By Seller. Seller agrees to indemnify Purchaser (and its successors and assigns)
against any and all actual out-of-pocket losses, damages, costs and reasonable expenses, including
reasonable attorney and paralegal fees and expenses (collectively, the “Purchaser Losses”), that
it may incur as a result of:

	 	(i)	 	any material breach of any representation or
warranty contained in Article 3; and
	 
	 	(ii)	 	any material breach by Seller of a covenant or
agreement made in Article 4.

          (b) By Purchaser. Purchaser agrees to indemnify Seller (and its successors and
assigns) against any and all actual out-of-pocket losses, damages, costs and reasonable expenses,
including reasonable attorney and paralegal fees and expenses (collectively, the “Seller Losses”),
that it may incur as a result of:

	 	(i)	 	any material breach of any representation or warranty contained in
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	 	(ii)	 	any material breach of a covenant or
agreement made in Article 4; and
	 
	 	(iii)	 	the operation, ownership or conduct
of business of the Entities following the Closing Date.

     7.2 Survival. Except as to claims by Seller for indemnification under
Section 7.1(b)(iii) of this Agreement, the right of the Parties to make a claim
for Purchaser Losses or Seller Losses, as the case may be, shall survive for a
period of one (1) year after the Closing Date; provided, however, that claims
first asserted within this period shall not thereafter be barred. All covenants
and agreements to be performed after Closing will, to the extent applicable,
survive Closing.

     7.3 Exclusive Remedy. From and after the Closing, the sole and
exclusive remedy of Purchaser and Seller with respect to any and all claims
relating to the subject matter of this Agreement shall be pursuant to the
indemnification provisions set forth in this Article 7, except claims arising out
of a Party’s failure to fulfill its obligations in this Article 7, including but
not limited to claims by Seller under Section 7.1(b)(iii) of this Agreement.

     7.4 Other Indemnity Matters.

          (a) Each Indemnified Party shall be obligated in connection with any claim
for indemnification under this Article 7 to use all reasonable efforts to mitigate
the amount for which it seeks indemnification upon and after becoming aware of any
event that could reasonably be expected to give rise to the indemnification
hereunder.

          (b) No Party shall be liable, and no claim for indemnification, or any other
claim under this Agreement, may in any event be asserted under this Article 7 or
otherwise, for any loss of profits or any special, indirect, consequential,
punitive or similar damages.

ARTICLE 8

CONDUCT OF BUSINESS AFTER CLOSING

     8.1 Employee Accounting. The Seller currently provides various
accounting services to, and maintains employee payroll and benefit records for,
both the Limited Partnership and the Company. In order that Purchaser may have
adequate time to implement its own accounting services and employee payroll and
benefit programs, the Parties agree that Seller will continue to provide these
services for the Limited Partnership and the Company from the Closing Date until
September 30, 2006, or, if necessary, until some other mutually agreed upon date.
Seller shall have the right to pre-bill Purchaser for all accounting and benefit
costs.

			
	 	 	 
	August 29, 2006
	 	Purchase and Sale Agreement
	 
	 	(Stockton Plaza Acquisition from
	 
	 	Alsate)
	 	 	 

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ARTICLE 9

GENERAL PROVISIONS

     9.1 Notices. All notices, requests, demands, claims, and other
communications under this Agreement shall be in writing and shall be deemed given
if delivered by personal delivery; certified or registered mail (first class
postage prepaid); facsimile; or guaranteed overnight delivery, to the following
addresses or fax numbers (or to such other address that a Party shall designate in
writing to the other Party):

	 	 	 	 	 
	 

	 	Seller:
	 	Alsate Management and Investment Company
	 

	 	 	 	Attention: Matthew McCann 1601
	 

	 	 	 	NW Expressway, Suite 350
	 

	 	 	 	Oklahoma City, OK 73118 
	 

	 	 	 	Fax Number: (405)753-5975
	 
	 	 	 	 
	 

	 	Purchaser:
	 	N. Malone Mitchell, 3rd and Amy Mitchell
	 

	 	 	 	3921 Ebers 
	 

	 	 	 	Ft. Stockton, Texas 79735

     9.2 Entire Agreement. This Agreement and other documents delivered at
the Closing pursuant to this Agreement contain the entire understanding of the
Parties in respect of its subject matter and supersede all prior agreements and
understandings (oral or written) between the Parties with respect to such subject
matter.

     9.3 Expenses. Except as otherwise specifically provided, all fees,
costs and expenses incurred by Seller or Purchaser in negotiating this Agreement
or in consummating the transactions contemplated by this Agreement shall be paid
by the Party incurring same, including, without limitation, legal and accounting
fees, costs and expenses.

     9.4 Amendment; Waiver. This Agreement may not be modified, amended,
supplemented, canceled, or discharged, except by written instrument executed by
the Parties. No failure to exercise, and no delay in exercising, any right, power
or privilege under this Agreement shall operate as a waiver, nor shall any single
or partial exercise of any right, power, or privilege under this Agreement
preclude the exercise of any other right, power or privilege. No waiver of any
breach of any provision shall be deemed to be a waiver of any preceding or
succeeding breach of the same or any other provision, nor shall any waiver be
implied from any course of dealing between the Parties. No extension of time for
performance of any obligations or other acts under this Agreement or under any
other agreement shall be deemed to be an extension of the time for performance of
any other obligations or any other acts.

     9.5 Binding Effect: Assignment. The rights and obligations of this
Agreement shall bind and inure to the benefit of the Parties and their respective
successors and assigns. Nothing expressed or implied in this Agreement shall be
construed to give any other person any legal or equitable rights under this
Agreement. The rights and obligations of this Agreement may not be assigned or
delegated without the consent of the other Party.

			
	 	 	 
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	 	Purchase and Sale Agreement
	 
	 	(Stockton Plaza Acquisition from
	 
	 	Alsate)
	 	 	 

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     9.6 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original but all of which together shall constitute one
and the same instrument.

     9.7 Interpretation. When a reference is made in this Agreement to an Article,
Section, paragraph, clause, or exhibit, such reference shall be deemed to be to this Agreement
unless otherwise indicated. The headings contained in this Agreement and on the exhibits are for
reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement or the exhibits. Whenever the words “include,” “includes” or “including” are used in
this Agreement, they shall be deemed to be followed by the words “without limitation.” Time shall
be of the essence in this Agreement.

     9.8 Construction. The Parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any
of the provisions of this Agreement.

     9.9 Definitions. As used in this Agreement,

          (a) all terms defined in this Agreement shall have the defined meanings when used
in any certificates, reports or other documents made or delivered pursuant to this
Agreement, unless the context otherwise requires;

          (b) terms defined in the singular shall have a comparable meaning when used in the
plural, and vice versa; and

          (c) the neuter gender shall also denote the masculine and feminine, and the
masculine gender shall also denote the neuter and feminine, where the context so
permits.

     9.10 Governing Law. This Agreement shall be construed in accordance with and governed
for all purposes by the laws of the State of Texas applicable to contracts executed and to be
wholly performed within such State.

     9.11 Arms’ Length Negotiations. Each Party expressly represents and warrants to the
other Party to that:

          (a) before executing this Agreement, the Party has fully informed himself of the terms,
contents, conditions, and effects of this Agreement;

          (b) the Party has relied solely and completely upon his own judgment in executing this
Agreement;

          (c) the Party has had the opportunity to seek and has obtained the advice of counsel before
executing this Agreement;

			
	 	 	 
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          (d) the Party has acted voluntarily and of his own free will in executing this Agreement;

          (e) the Party is not acting under duress, whether economic or physical, in executing this
Agreement; and

          (f) this Agreement is the result of arms’ length negotiations conducted by and between the
Parties and their respective counsel.

     9.12 Cumulative Remedies. None of the remedies provided for in this Agreement shall be
the exclusive remedy of any Party for a breach of this Agreement. The Parties shall have the right
to seek any other remedy at law or in equity in lieu of or in addition to any remedies provided for
in this Agreement.

     9.13 Invalidity. If any provision contained in this Agreement shall for any reason be
held to be invalid, illegal, void or unenforceable in any respect, such provision shall be deemed
modified so as to constitute a provision conforming as nearly as possible to such invalid,
illegal, void or unenforceable provision while still remaining valid and enforceable; and the
remaining terms or provisions contained in this Agreement shall not be affected thereby.

Signature page to follow.

			
	 	 	 
	August 29, 2006
	 	Purchase and Sale Agreement
	 
	 	(Stockton Plaza Acquisition from
	 
	 	Alsate)
	 	 	 

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     IN WITNESS WHEREOF, this Agreement is executed effective as of the 1st day of July, 2006.

	 	 	 	 	 	 	 	 	 
	SELLER:	 	ALSATE MANAGEMENT AND

INVESTMENT COMPANY

a Texas corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Matthew McCann	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Matthew McCann Vp, Legal	 	 
	 
	 	 	 	 	 	 	 	 
	PURCHASER:	 	LONGFELLOW RANCH PARTNERS, L.P. 

a Nevada limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Longfellow Ranches, LLC

a Nevada limited liability
company, 
its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ N.Malone Mitchell	 	 
	 

	 	 	 	 	 	 

N.Malone Mitchell 3rd, its President
	 	 

			
	 	 	 
	August 29, 2006
	 	Purchase and Sale Agreement
	 
	 	(Stockton Plaza Acquisition from
	 
	 	Alsate)
	 	 	 

11exv10w17

 

Exhibit
10.17

PURCHASE AND SALE AGREEMENT

	 	 	 
	Seller:

	 	WALLACE JORDAN, LLC and Dan Jordan, Individually
	 
	 	 
	Seller’s Address:     

	 	P.O. Box 52501
Tulsa, Oklahoma 74152
	 
	 	 
	Buyer:

	 	SANDRIDGE ENERGY, INC., a Delaware Corporation
	 
	 	 
	Buyer’s Address:

	 	1601 N. W. Expressway, Suite 1600
Oklahoma City, OK 73118
	 
	 	 
	Date Executed:

	 	June 7, 2007
	 
	 	 
	Date Effective:

	 	May 1, 2007

     Seller, named above, and Buyer, named above, enter into this Purchase and Sale Agreement
(“Agreement”), in consideration of Seller’s agreement to sell, and Buyer’s agreement to buy the
properties, pipelines and gathering/marketing systems described in this Agreement.

     In consideration of the mutual covenants, conditions and considerations provided below, the
receipt and sufficiency of which is hereby acknowledged, Buyer and Seller agree as follows:

	 	1.	 	The Property. Seller will convey to Buyer all of
Seller’s interest in and to
the following properties, pipelines and gathering/marketing systems (the
“Properties”):

(a) Seller’s interests in all of those Properties which interests and properties are described
and identified on Exhibit “A” to Assignment and Bill of Sale attached hereto as
Attachment I.

(b) All files, records and data in the actual or constructive possession of Seller
relating to the properties described including, without limitation, all title records, prospect
division order and lease files, geological, geophysical and seismic records, data and information,
production records, electric logs, core data, pressure data and decline curves and graphical
production curves and other related matters.

 

 

(c) All of Seller’s right, title and interest in and to personal property, improvements, lease
and well equipment, easements, permits, licenses, servitudes and rights-of-way (including, but not by way of limitation, all wells, casing,
tubing, tanks, boilers, separators, buildings, fixtures, machinery, injection facilities, salt
water disposal facilities, compression facilities, and other equipment, processing plants,
gathering systems, pipelines, power lines, telephone and telegraph lines, roads and other
appurtenances and easements) situated upon the lands identified in Attachment I; provided, this
conveyance is subject to the terms and conditions of each easement, license, permit and servitude,
including any limitation upon the right of assignment.

     2. Purchase Price. Buyer will pay to Seller at closing the amount of $3,300,000.00
(the “Purchase Price”), subject to adjustment as the parties may agree to give effect to the
Effective Date. Additionally, Buyer agrees to pay to Seller any prepayments and well costs invoiced
and paid by Seller on the Longfellow SS 600 40-1 well located in Section 40, Block 600, M.A. Jones
Survey, A-8883, Pecos County, Texas. As of the date hereto, this amounts to approximately
$236,611.14, subject to post closing adjustment described in Section 4 below.

     
3. Closing. The sale and purchase of the Properties (the “Closing”) will be held on June 11,
2007, at Seller’s offices in Tulsa, Oklahoma. Buyer shall deliver to Seller the Purchase Price
provided in Section 2 above. At the Closing, Seller shall deliver or cause to be
delivered to Buyer:

	 	(a)	 	Assignment and Bill of Sale in the form set forth in Attachment I;
	 
	 	(b)	 	Consents to assignment for any oil & gas contracts/agreements requiring
consent;
	 
	 	(c)	 	Releases of all liens burdening the Properties;
	 
	 	(d)	 	UCC-3 Termination Statements;
	 
	 	(e)	 	All other items required to be delivered hereunder or as may be requested by
Buyer which are necessary or would reasonably facilitate consummation of the
transactions contemplated hereby, including, but not limited to, approval from the
SandRidge Energy, Inc. Board of Directors.

     4. Post Closing. Within sixty (60) days after the Closing Date, if applicable, Buyer shall
prepare and deliver to Seller a statement setting forth actual credits, charges, receipts and other
items before and after the Effective Date. At Seller’s written request, Buyer shall deliver to
Seller reasonable documentation supporting the calculations set forth on the statement.

 

 

     
5. Conveyance Effective Date, Proration of Production Expenses. The conveyance from
Seller will be effective as of May 1, 2007 (“Effective Date”). All revenues and
expenses attributable to production from the Properties before such date will be owned by, and the
responsibility of, the Seller. All revenues and expenses attributable to production from the
Properties after such date will be owned by, and the responsibility of, the Buyer.

     6. Taxes. Seller will be responsible for all taxes relating to the Properties
for years prior to 2007. Buyer will be responsible for all taxes (exclusive of federal, state or
local income taxes) relating to the Properties for tax year 2007 and thereafter.

     7. Indemnity. Buyer will indemnify and hold Seller harmless from and against any and all
liability, liens, demands, judgments, suits, and claims of any kind or character arising out of, in
connection with, the Properties, for all periods after the Effective Date. Seller will indemnify
and hold Buyer harmless from and against any and all liability, liens, demands, judgments, suits,
and claims of any kind or character arising out of, in connection with, the Properties, for all
periods before the Effective Date.

     8. Representations and Warranties of Seller. Seller represents and warrants to Buyer as
follows:

          8.1 Existing Burdens. To the best of Seller’s knowledge, the lease burdens and other existing
burdens on the Properties do not reduce the net revenue interest below the percentages set forth on
Exhibit A. Seller does not warrant net revenue interest, except by, through and under Seller as to
the interests specifically set forth on Exhibit A, but not otherwise.

          8.2. Authority and Conflicts. Seller has full power and authority to carry on its business as
presently conducted, to enter into this Agreement, and to perform its obligations under this
Agreement. The execution and delivery of this Agreement by Seller does not, and the consummation of
the transactions contemplated by this Agreement shall not: (a) violate, conflict with, or require
the consent of any person or entity under any provision of Seller’s governing documents; (b)
conflict with, result in a breach of, constitute a default (or an event that with the lapse of time
or notice or both would constitute a default) or require any consent, authorization, or approval
under any agreement or instrument to which Seller is a party or to which any of the Properties or Seller is bound; (c) violate any
provision of or require any consent, authorization or approval under any judgment, decree,
judicial, or administrative order, award, writ, injunction, statute, rule, or regulation applicable
to Seller; or, (d) result in the creation of any lien, charge, or encumbrance on any of the
Properties.

          8.3. Authorization. The execution and delivery of this Agreement has been, and the performance
of this Agreement and the transactions contemplated by

 

 

this Agreement shall be at the time
required to be performed, duly and validly authorized by all requisite action on the part of
Seller.

          8.4. Enforceability. This Agreement has been duly executed and delivered on behalf
of Seller and constitutes the legal and binding obligation of Seller enforceable in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy, reorganization, or
moratorium statutes, equitable principles, or other similar laws affecting the rights of creditors
generally (“Equitable Limitations”). At Closing, all documents and instruments required to be
executed and delivered by Seller shall be duly executed and delivered and shall constitute legal,
valid, enforceable and binding obligations of Seller, except as enforceability may be limited by
Equitable Limitations.

          8.5. Title. Seller makes no warranty of title, express, implied, statutory or
otherwise, as to the Properties, except as to claims arising by, through or under Seller, but not
otherwise.

          8.6. Equipment. Seller EXPRESSLY DISCLAIMS AND NEGATES (A) ANY IMPLIED OR EXPRESS
WARRANTY OF MERCHANTABILITY, (B) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR
PURPOSE, (C) ANY IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF
MATERIALS, AND (D) ANY OTHER WARRANTY OF ANY NATURE, EXPRESS OR IMPLIED.

     9. Representations by Buyer. Buyer represents to Seller that the following
statements are true and correct:

          9.1. Authority and Conflicts. Buyer has full power and authority to carry on its
business as presently conducted, to enter into this Agreement, and to perform its obligations under
this Agreement. The execution and delivery of this Agreement by Buyer does not, and the
consummation of the transactions contemplated by this Agreement shall not: (a) violate, conflict
with, or require the consent of any person or entity; (b) conflict with, result in a breach of, constitute a default (or an event that with the
lapse of time or notice or both would constitute a default) or require any consent, authorization,
or approval under any agreement or instrument to which Buyer is a party; or (c) violate any
provision of or require any consent, authorization or approval under any judgment, decree,
judicial, or administrative order, award, writ, injunction, statute, rule, or regulation applicable
to Buyer.

          9.2. Authorization. The execution and delivery of this Agreement has been, and the
performance of this Agreement and the transactions contemplated by this Agreement shall be at the
time required to be performed, duly and validly authorized by all requisite action on the part of
Buyer.

 

 

          9.3. Enforceability. This Agreement has been duly executed and delivered on behalf
of Buyer and constitutes the legal and binding obligation of Buyer enforceable in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy, reorganization, or
moratorium statutes, equitable principles, or other similar laws affecting the rights of creditors
generally (“Equitable Limitations”). At Closing, all documents and instruments required to be
executed and delivered by Buyer shall be duly executed and delivered and shall constitute legal,
valid, enforceable and binding obligations of Buyer, except as enforceability may be limited by
Equitable Limitations.

     10. Title and Other Examination and Curative. Prior to Closing, Buyer will examine
title to the Properties at its own expense. However, Seller will make available to Buyer all of
Seller’s title opinions, certificates of title, abstracts of title, title data, records and files
relating to the Properties (including without limitation all well files and well logs) and
information relating to the Properties as soon as possible after the execution of this Agreement.
All title to the Properties must be acceptable to Buyer prior to the Closing Date.

     
11. Transfer, Documentary Taxes; Commission, Brokerage Fees. Buyer will pay and
bear all documentary or transfer taxes and recording fees, resulting from this transaction. No
commission or brokerage fees will be paid by Buyer in connection with this transaction and Seller
will indemnify and hold Buyer harmless from any claims of brokers or finders acting, or claiming to
have acted, on behalf of Seller.

     12. Further Assurances, Intent. It is Seller’s intent to convey to Buyer all of
Seller’s interest, legal, beneficial or equitable in the Properties. In this regard, Seller agrees
to execute and deliver to Buyer all instruments, conveyances and other documents and to do such
other acts not inconsistent with this Agreement as may be necessary or advisable to carry out Seller’s
intent, including without limitation, Letters-in-lieu of transfer orders to the purchasers of
production.

     13. Notices. All notices and communications require or permitted under this
Agreement shall be in writing, delivered to or sent by U.S. Mail or Express Delivery, postage
prepaid, by prepaid telegram, or by facsimile transmission addressed as follows:

			
	          Seller:	 	Mr. Dan Jordan
Wallace Jordan, LLC
P.O.
Box 52501
Tulsa, Oklahoma 74152
(405)
398-6060-office
(405) 398-6061-facsmile
wjllc@tulsacoxmail.com

 

 

			
	          Buyer:	 	SandRidge Energy, Inc.

1601 N. W. Expressway, Suite 1600

Oklahoma City, OK 73118
Attention: General
Counsel
(405) 753-5500-office

     14. Parties in Interest. This Agreement will inure to the benefit of
and be binding upon Seller and Buyer and their respective heirs, successors and assigns only upon
execution and delivery hereof by both parties. Delivery of an executed copy of this Agreement by
facsimile transmission shall be conclusively deemed to be delivery of an original counterpart
hereof. No assignment by any party shall relieve any party of any duties or obligations under this
Agreement.

     15. Complete Agreement. This Agreement constitutes the complete agreement between
the parties regarding the purchase and sale of the Properties. Where applicable, all of the terms
of this Agreement shall survive the Closing. Time is of the essence with respect to the performance
or nonperformance of the obligations or conditions contained herein.

     16. Survival. The representations, covenants and indemnities contained herein shall survive
the closing of this transaction.

     EXECUTED this 7th day of June, 2007.

SELLERS:

	 	 	 	 	 
	WALLACE JORDAN, LLC 

 	 	 
	By:  	/s/ Dan Jordan
 	 	 
	 	Name:  	Dan Jordan 	 	 
	 	Title:  	Managing Partner 	 	 
	 

	 	 	 	 	 
	DAN JORDAN

 	 	 
	By:  	/s/ Dan Jordan
 	 	 
	 	Dan Jordan 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	BUYER

SANDRIDGE ENERGY, INC.

 	 	 
	By:  	/s/ Larry K. Coshow
 	 	 
	 	Name:  	Larry K. Coshow, CPL 	 	 
	 	Title:  	Executive Vice President, Land 	 	 

 

 

	 	 	 	 	 

EXHIBIT “A”

Attached to and made a part of that certain Purchase and Sale Agreement dated June
7, 2007, by and between SandRidge Energy, Inc., as Buyer and Wallace Jordan, L.L.C. and
Dan Jordan, as Seller covering various properties and interests in Pecos County, Texas.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Wallace	 	Wallace
	 	 	 	 	 	 	Jordan	 	Jordan
	LEASE	 	COUNTY	 	STATE	 	WI	 	NRI
	LONGFELLOW 600 9-1

	 	PECOS
	 	TX
	 	 	5.0000	 	 	 	4.0000	 
	LONGFELLOW 600 9-2

	 	PECOS
	 	TX
	 	 	5.0000	 	 	 	4.0000	 
	LONGFELLOW 2 28-1

	 	PECOS
	 	TX
	 	 	5.0000	 	 	 	4.0000	 
	LONGFELLOW 600 15-01

	 	PECOS
	 	TX
	 	 	10.0000	 	 	 	7.5000	 
	LONGFELLOW 600 15-02

	 	PECOS
	 	TX
	 	 	10.0000	 	 	 	7.5000	 
	LONGFELLOW 600 15-03

	 	PECOS
	 	TX
	 	 	10.0000	 	 	 	7.5000	 
	LONGFELLOW 600 15-04

	 	PECOS
	 	TX
	 	 	10.0000	 	 	 	7.5000	 
	LONGFELLOW 600 15-07

	 	PECOS
	 	TX
	 	 	10.0000	 	 	 	7.5000	 
	LONGFELLOW STATE “E” 2-1

	 	PECOS
	 	TX
	 	 	10.0000	 	 	 	7.5000	 
	LONGFELLOW STATE “E” 2-2

	 	PECOS
	 	TX
	 	 	10.0000	 	 	 	7.5000	 
	LONGFELLOW 139 36-1

	 	PECOS
	 	TX
	 	 	76.0000	 	 	 	57.0000	 
	LONGFELLOW 136 14-1

	 	PECOS
	 	TX
	 	 	84.0000	 	 	 	63.0000	 
	LONGFELLOW SS 600 40-1

	 	PECOS
	 	TX
	 	 	10.0000	 	 	 	7.5000	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Wallace	 	Wallace
	 	 	 	 	 	 	Jordan	 	Jordan
	LEASE	 	COUNTY	 	STATE	 	WI	 	NRI
	WEST PINON GATHERING SYSTEM

	 	PECOS
	 	TX
	 	 	5.0000	 	 	 	 	 
	SABINO PIPELINE

	 	PECOS
	 	TX
	 	 	10.0000	 	 	 	 	 
	INTEGRA ENERGY (1)

	 	PECOS
	 	TX
	 	 	2.0000	 	 	 	 	 
	BEREXCO ACREAGE, Sec. 16, 20, 22 & 24,
Blk. 139

	 	PECOS
	 	TX
	 	 	261 acs
	 	 	 	73.5000	 
	BEREXCO ACREAGE, Sec. 14, Blk. 139

	 	PECOS
	 	TX
	 	 	84.0000	 	 	 	64.0000	 
	BEREXCO ACREAGE, Sec. 40, Blk. 600

	 	PECOS
	 	TX
	 	 	10.0000	 	 	 	7.6500	 
	NEG ACREAGE, Sec. 2, Blk. 600; Sec. 32,
Blk. 130

	 	PECOS
	 	TX
	 	 	127.946 ac
	 	 	 	75.0000	 
	NEG ACREAGE, Sec. 15, Blk. 600; Sec.
28, 34, Blk. 130

	 	PECOS
	 	TX
	 	 	97.597 ac
	 	 	 	75.0000	 

 

			
	(1)	 	This asset is owned by Dan Jordan only. All other properties listed on this Exhibit “A”
are owned by Wallace Jordan, LLC only.

It is Wallace Jordan, LLC’s intent to convey to SandRidge all of Wallace Jordan, LLC’s right, title
and interest in Pecos County, Texas, in and to the subject lands, regardless of the omission of any
particular well(s), leases or errors in description and interest amounts.

END OF EXHIBIT “A”

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