Document:

exv4w6

 

Exhibit
4.6

“Form of Warrant to Purchase Series A Convertible Preferred Stock

THIS WARRANT AND THE UNDERLYING SECURITIES 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 STATES
THAT THIS WARRANT OR THE UNDERLYING SECURITIES MAY BE TRANSFERRED WITHOUT SUCH REGISTRATION.
THE EXERCISE CONSIDERATION AND THE EXERCISE VALUE (EACH AS DEFINED HEREIN) SET FORTH IN THIS
WARRANT MAY BE ADJUSTED PURSUANT TO SECTION 4 OF THIS WARRANT.

RIATA ENERGY, INC.

WARRANT TO PURCHASE

SERIES A CONVERTIBLE PREFERRED STOCK

			
	 	 	 
	No. W-[                     ]
	 	[Date]

Void After May 15, 2013

     This Certifies That, for value received,                                         , with its principal office
at                                         , or its assigns (the “Holder”), is entitled to subscribe for and
purchase from Riata Energy, Inc., a corporation organized under the laws of the State of Texas and
d/b/a SandRidge Energy, Inc. (together with its successors, the “Company”), a number of shares of
Series A Convertible Preferred Stock of the Company, par value $0.001 per share (the “Preferred
Stock”), determined by dividing (x) the product of (i) the number of shares of common stock of the
Company, par value $0.001 per share (the “Common Stock”), tendered as Exercise Consideration (as
defined in Section 1) multiplied by (ii) 19.00 (subject to adjustment pursuant to Section 4, the
“Exercise Value”) by (y) the Accreted Value (as defined in the Certificate of Designations) per
share of Preferred Stock in effect on the date this Warrant is surrendered for exercise, subject to
the terms and conditions set forth herein. This Warrant is one of a series of Warrants being
issued as a unit consisting of shares of Common Stock and a Warrant issued and sold pursuant to the
terms of that certain Securities Purchase Agreement, dated as of November 21, 2006, by and among
the Company, the original Holder of this Warrant and the other parties named therein (the “Purchase
Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective
meanings ascribed to such terms in the Purchase Agreement.

1. Definitions. As used herein, the following terms shall have the following respective meanings:

     (a) “Certificate of Designations” shall mean the Certificate of Designations of the Series A
Convertible Preferred Stock of the Company filed with the Secretary of State of the State of Texas.

     (b) “Exercise Period” shall mean the period commencing on the date hereof and ending at 5:00
p.m., New York time, on the earlier of (i) May 15, 2013 and (ii) the first day in

 

 

which all outstanding shares of Preferred Stock have been fully redeemed, retired or converted
(voluntarily or involuntarily) pursuant to the Certificate of Designations.

     (c) “Exercise Consideration” shall mean [                    ] shares of issued and outstanding Common
Stock, subject to adjustment pursuant to Section 4.

     (d) “Exercise Shares” shall mean the shares of the Preferred Stock issued upon any exercise of
this Warrant.

2. Exercise of Warrant.

     2.1 Method of Exercise. The rights represented by this Warrant may be exercised, in whole or
in part, at any time by the Holder during the Exercise Period, by delivery of the following to the
Company at its address set forth on the signature page hereto (or at such other address as the
Company may designate by notice in writing to the Holder):

     (a) an executed Notice of Exercise in the form attached hereto;

     (b) payment of the Exercise Consideration to the Company, by delivery of a stock certificate
issued in the name of the Holder of this Warrant duly endorsed in blank, or other means of valid
electronic transfer, representing the shares of Common Stock being surrendered as Exercise
Consideration; and

     (c) this Warrant.

     Upon any exercise of the rights represented by this Warrant, Exercise Shares shall be issued
to and registered in the name of the Holder or Persons affiliated with the Holder, if the Holder so
designates, within three (3) Business Days after the rights represented by this Warrant shall have
been so exercised and shall be issued in certificate form and delivered to the Holder, if so
requested.

     The Person in whose name any Exercise Shares are to be issued upon exercise of this Warrant
shall be deemed to have become the holder of record of such shares on the date on which this
Warrant was surrendered and the Exercise Consideration was tendered, irrespective of the date of
issuance of Exercise Shares, except that, if the date of such surrender and payment is a date when
the stock transfer books of the Company are closed, such Person shall be deemed to have become the
holder of such shares at the close of business on the next succeeding date on which the stock
transfer books are open. The stock transfer books of the Company shall be open on any day that is
a Business Day, unless required by law.

     2.2 Partial Exercise. If this Warrant is exercised in part through the surrender of a number
of shares of Common Stock constituting less than all of the Exercise Consideration, the Company
shall also execute and deliver to the exercising Holder, within three (3) Business Days of the date
of such exercise, (i) a new Warrant evidencing the rights of the Holder exercisable for the balance
of the unexercised Exercise Consideration, and (ii) a new stock certificate evidencing the balance
of any shares of Common Stock remaining upon tender of a stock certificate evidencing more than the
number of shares tendered as Exercise Consideration for such exercise.

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3. Covenants of the Company.

     3.1 Covenants as to Exercise Shares and Conversion Shares. The Company covenants and agrees
that all Exercise Shares that may be issued upon the exercise of the rights represented by this
Warrant will, upon issuance, be validly issued and outstanding, fully paid and non-assessable and
free from all taxes, liens and charges with respect to the issuance thereof. The Company further
covenants and agrees that the Company will at all times during the Exercise Period, have authorized
and reserved, free from preemptive or similar rights, a sufficient number of shares of its
Preferred Stock to provide for the exercise of the rights represented by this Warrant and Common
Stock to provide for the conversion of such shares of Preferred Stock in accordance with the
Certificate of Designations. If at any time during the Exercise Period the number of authorized
but unissued shares of Preferred Stock or Common Stock shall not be sufficient to permit exercise
of this Warrant or conversion of the Exercise Shares, respectively, the Company will take such
corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but
unissued shares of Preferred Stock and/or Common Stock to such number of shares as shall be
sufficient for such purposes.

     3.2 Notices of Certain Events. The Company shall give written notice to the Holder at least
10 days prior to the date on which the Company closes its books or sets a record date for
determining rights to vote with respect to any manner set forth in Section 4 or Section 10 of the
Certificate of Designations. The Company shall also deliver to the Holder (i) written notice of
any determination or election by the Company to not declare and pay any accrued dividend pursuant
to Section 3(b) of the Certificate of Designations at least 5 days prior to the applicable Dividend
Record Date (as defined in the Certificate of Designations) provided that if such determination or
election is not made by the Company until a later date, as promptly as practicable after making
such determination or election, (ii) copies of any notice or statement delivered to holders of
Preferred Stock pursuant to the Certificate of Designations, applicable law or otherwise sent
within such time as such notice is required to be sent to holders of Preferred Stock, (iii) written
notice of the occurrence of an “Event of Default” or a “Liquidation Event” under the Certificate
of Designations sent within 3 days from the date the Company becomes aware of such an occurrence
and (iv) written notice if the total amount of Preferred Stock outstanding at any time shall fall
below twenty percent (20%) of the total number of shares of Preferred Stock initially issued
pursuant to the Purchase Agreement sent within 3 days from the date the Company becomes aware of
such an occurrence. In the case of any such action of which the Company gives any notice to the
Holder of this Warrant or is required to give such notice to the Holder, the Holder shall be
entitled to give a Notice of Exercise that is contingent on the completion of such action.

4. Adjustments.

     4.1 Subdivision or Combination of Common Stock. If the Company at any time subdivides (by any
stock split, stock dividend, recapitalization or otherwise) its outstanding shares of Common Stock
into a greater number of shares or at any time combines (by reverse stock split or otherwise) its
outstanding shares of Common Stock into a smaller number of shares, the number of shares of Common
Stock that constitute Exercise Consideration and the Exercise Value immediately prior to such
subdivision or combination shall be adjusted to give the Holder of this Warrant, on exercise for
the same aggregate Exercise Consideration, the total

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number of Exercise Shares as the Holder would have owned had this Warrant been exercised prior
to such event and had the Holder continued to hold such shares until after the event requiring
adjustment. The form of this Warrant need not be changed because of any adjustment in the Common
Stock.

     4.2 Reorganization, Mergers, Consolidations, or Sales of Assets. If at any time or from time
to time there shall be a capital reorganization of the Common Stock or the Preferred Stock (other
than a subdivision, combination, reclassification or exchange of shares, provided for elsewhere in
this Section 4), or a merger or consolidation of the Company with or into another entity then, as a
part of such reorganization, merger or consolidation, provision shall be made so that the Holder of
this Warrant shall, after such reorganization, merger, or consolidation, be entitled to (i) tender
a proportionate number of the shares of stock of the Company, or of the successor entity resulting
from such merger or consolidation, other securities and/or property to which the holders of the
Common Stock are entitled to receive upon such reorganization, merger or consolidation if such
shares were Exercise Consideration and/or (ii) receive upon exercise of this Warrant shares of
stock of the Company, or of the successor entity resulting from such merger or consolidation, other
securities and/or property to which a holder of the Exercise Shares would have been entitled to
receive upon such reorganization, merger or consolidation if such shares were then outstanding. If
the holders of Preferred Stock have the right to elect the kind and amount of consideration
receivable upon consummation of such transaction, then the Holder of this Warrant, in connection
with such transaction and at the same time holders of Preferred Stock are allowed to make such
election, shall be given the right to make a similar election with respect to the consideration
into which this Warrant shall thereafter be exercisable.

5. Fractional Shares. Notwithstanding anything to the contrary herein, no fractional Exercise
Shares shall be issued upon any exercise of this Warrant. All Exercise Shares (including fractions
thereof) that would otherwise be issuable upon any exercise of this Warrant shall be aggregated for
purposes of determining whether an exercise would result in the issuance of any fractional share.
If, after such aggregation, an exercise would result in the issuance of a fractional share of
Preferred Stock, the Company shall, in lieu of issuance of any fractional share, pay the Holder
otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying
the Accreted Value (as determined in the Certificate of Designations) of one share of Preferred
Stock on the date of delivery of this Warrant with a Notice of Exercise by such fraction.

6. No Stockholder Rights. Except as set forth herein, this Warrant in and of itself shall not
entitle the Holder to any voting rights or other rights as a stockholder of the Company.

7. Transfer of Warrant. This Warrant is issued as part of a common unit consisting of a number of
shares of Common Stock issued pursuant to the Purchase Agreement, which initially constitutes the
Exercise Consideration. Subject to the foregoing, any applicable laws and compliance with the
Purchase Agreement, this Warrant and all rights hereunder shall be transferable, in whole or in
part, separately from the shares of Common Stock with which it was issued, by the Holder in person
or by duly authorized attorney, upon delivery of this Warrant, a certificate or certificates
evidencing the Exercise Consideration and the form of assignment attached hereto to any transferee
designated by Holder. If this Warrant is transferred in part, the Company shall, upon surrender of
this Warrant and a stock certificate or certificates for the

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number of shares representing Exercise Consideration also being transferred, execute and deliver,
within three (3) Business Days of the date of transfer, (i) a new Warrant evidencing the rights of
such transferee to purchase Exercise Shares hereunder for the amount of Exercise Consideration
subject to such transfer, (ii) a new stock certificate in the name of such transferee evidencing
the Exercise Consideration subject to such transfer; (iii) a new Warrant evidencing the rights of
the Holder to purchase Exercise Shares hereunder for the balance of the Exercise Consideration not
so transferred and (iv) a new stock certificate in the name of the Holder evidencing the Exercise
Consideration not so transferred. Notwithstanding the foregoing or any other provision of this
Warrant, this Warrant may be pledged to a “qualified institutional buyer” (as such tem is defined
in Rule 144A promulgated under the Securities Act of 1933, as amended) in connection with a bona
fide margin account or other loan or financing arrangement secured by this Warrant.

8. Lost, Stolen, Mutilated or Destroyed Warrant or Certificates. If this Warrant or any stock
certificates representing Exercise Consideration are lost, stolen, mutilated or destroyed, the
Company shall issue a new Warrant or stock certificate, as applicable, of like denomination and
tenor as the Warrant or stock certificate, as applicable, so lost, stolen, mutilated or destroyed.
If required by the Company, the Holder shall surrender any mutilated Warrant or certificate and
furnish an indemnity bond sufficient in the reasonable judgment of the Company to protect the
Company from any loss which it may suffer if a Warrant or certificate is replaced. Any such
replacement Warrant shall constitute an original contractual obligation of the Company, whether or
not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by
anyone.

9. Modifications and Waiver. This Warrant and any provision hereof may be modified, amended or
waived only by an instrument in writing signed by the Company and (i) Holders representing at least
a majority of the number of the aggregate of outstanding number of Exercise Consideration under all
Warrants issued pursuant to the Purchase Agreement and upon any transfer of such Warrants,
provided, however, that such modification, amendment or waiver is made with respect to all
outstanding Warrants issued pursuant to the Purchase Agreement and upon any transfer of such
Warrants and does not adversely affect the Holder without adversely affecting all holders of
Warrants in a similar manner; or (ii) the Holder.

10. Notices. All communications shall be sent to the Company at the address set forth on the
signature page and to the Holders at the addresses on the Company records, or at such other address
as the Company or Holder may designate in writing to the Company. 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.

11. Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement
to all of the terms and conditions contained herein.

12. Governing Law. This Warrant and all rights, obligations and liabilities hereunder shall be
governed by the laws of the State of Texas without regard to the principles of conflict of laws.

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13. Descriptive Headings. The descriptive headings of the several paragraphs of this Warrant are
inserted for convenience only and do not constitute a part of this Warrant. The language in this
Warrant shall be construed as to its fair meaning without regard to which party drafted this
Warrant.

14. Severability. The invalidity or unenforceability of any provision of this Warrant in any
jurisdiction shall not affect the validity or enforceability of such provision in any other
jurisdiction, or affect any other provision of this Warrant, which shall remain in full force and
effect.

15. Entire Agreement. This Warrant, the Purchase Agreement and the Registration Rights Agreement
(as defined in the Purchase Agreement) constitute the entire agreement between the parties
pertaining to the subject matter contained herein and therein and supersedes all prior and
contemporaneous agreements, representations, and undertakings of the parties, whether oral or
written, with respect to such subject matter.

[Signature Page Follows]

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     In Witness Whereof, the Company has caused this Warrant to be executed by its duly authorized
officer as of                                         ,                                   
      .

	 	 	 	 	 	 	 
	 	 	RIATA ENERGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 

	 	Name:	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address:	 	 
	 	 	1601 NW Expressway, Suite 1600	 	 
	 	 	Oklahoma City, OK 73118	 	 
	 	 	Attention: General Counsel	 	 
	 	 	Facsimile: (405) 753-5975	 	 

 

 

NOTICE OF EXERCISE

TO: RIATA ENERGY, INC.

     (1) The undersigned hereby elects to tender:

                                                         shares of the Common Stock of Riata Energy, Inc. as Exercise Consideration
pursuant to the terms of the attached Warrant, for the number of Exercise Shares that are issuable
under the terms of the attached Warrant, together with all applicable transfer taxes, if any (if
the foregoing number of shares is not indicated, the undersigned Holder is tendering the fullest
number of shares that may constitute Exercise Consideration under this Warrant that accompany such
Notice of Exercise).

     (2) Please issue a certificate or certificates representing said Exercise Shares in the name
of the undersigned or in such other name as is specified below:

 

(Printed Name)

 

 

(Address)

 

U.S. Tax I.D. Number

			
	 	 	 
	 
	 	 
	(Date)
	 	(Signature)

 

(Print name and Title)          
                    
             

     (3) The undersigned represents that (i) the aforesaid shares of Preferred Stock are being
acquired for the account of the undersigned for investment and not with a view to, or for resale in
connection with, the distribution thereof and that the undersigned has no present intention of
distributing or reselling such shares; (ii) the undersigned is aware of the Company’s business
affairs and financial condition and has acquired sufficient information about the Company to reach
an informed and knowledgeable decision regarding its investment in the

 

 

Company; (iii) the undersigned is experienced in making investments of this type and has such
knowledge and background in financial and business matters that the undersigned is capable of
evaluating the merits and risks of this investment and protecting the undersigned’s own interests;
(iv) the undersigned understands that the shares of Preferred Stock issuable upon exercise of this
Warrant (and the shares of any Common Stock issuable upon the conversion of any such Preferred
Stock) have not been registered under the Securities Act of 1933, as amended (the “Securities
Act”), by reason of a specific exemption from the registration provisions of the Securities Act,
which exemption depends upon, among other things, the bona fide nature of the investment intent as
expressed herein, and, because such securities have not been registered under the Securities Act,
they must be held indefinitely unless subsequently registered under the Securities Act or an
exemption from such registration is available; (v) the undersigned is aware that the aforesaid
shares of Preferred Stock (and the shares of any Common Stock issuable upon the conversion of any
such Preferred Stock) may not be sold pursuant to Rule 144 adopted under the Securities Act unless
certain conditions are met and until the undersigned has held the shares for the number of years
prescribed by Rule 144, that among the conditions for use of the Rule is the availability of
current information to the public about the Company and the Company has not made such information
available and has no present plans to do so; and (vi) the undersigned agrees not to make any
disposition of all or any part of the aforesaid shares of Preferred Stock (and the shares of any
Common Stock issuable upon the conversion of any such Preferred Stock) unless and until there is
then in effect a registration statement under the Securities Act covering such proposed disposition
and such disposition is made in accordance with said registration statement, or the undersigned has
provided the Company with an opinion of counsel satisfactory to the Company, stating that such
registration is not required.

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ASSIGNMENT FORM

(To assign the foregoing Warrant, subject to compliance with

the Warrant, execute this form and supply required information. Do

not use this form to exercise the Warrant.)

For Value Received, the foregoing Warrant and all rights evidenced thereby are hereby assigned to:

	 	 	 
	Assignee’s Name:
	 	 
	 

	 	 
	 

	 	(Please Print)
	Assignee’s Address:
	 	 
	 

	 	 
	 

	 	(Please Print)

Assignee’s U.S. Tax I.D. Number, if applicable:         
                     
                     
                              

Dated:                     , 20___

Holder’s Printed Name:                                                                   
                                                     

	 	 	 
	Holder’s Authorized Signature and Title:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	Holder’s Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

NOTE: The name of assigning Holder on this Assignment Form must correspond with the name as it
appears on the face of the Warrant.exv4w7

 

Exhibit 4.7

 

 

 

AMENDED AND RESTATED

SHAREHOLDERS AGREEMENT

among

SandRidge Energy, Inc.

and

Certain Shareholders of SandRidge Energy, Inc.

Dated as of April 4, 2007

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	RECITALS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	SECTION 1.1. Certain Defined Terms
	 	 	1	 
	SECTION 1.2. Other Definitional Provisions
	 	 	7	 
	 
	 	 	 	 
	ARTICLE II TRANSFERS
	 	 	8	 
	SECTION 2.1. Transfer Restrictions
	 	 	8	 
	SECTION 2.2. Tag-Along Rights
	 	 	9	 
	SECTION 2.3. Rights and Obligations of Transferees.
	 	 	10	 
	SECTION 2.4. Number of Securities
	 	 	11	 
	SECTION 2.5. Void Transfers
	 	 	11	 
	 
	 	 	 	 
	ARTICLE III LIMITED PREEMPTIVE RIGHTS
	 	 	11	 
	SECTION 3.1. Limited Preemptive Rights
	 	 	11	 
	 
	 	 	 	 
	ARTICLE IV REGISTRATION RIGHTS
	 	 	12	 
	SECTION 4.1. [INTENTIONALLY OMITTED]
	 	 	12	 
	SECTION 4.2. Registration on Request
	 	 	12	 
	SECTION 4.3. Incidental Registrations
	 	 	15	 
	SECTION 4.4. Registration Procedures
	 	 	16	 
	SECTION 4.5. Indemnification
	 	 	20	 
	SECTION 4.6. Rules 144 and 144A
	 	 	22	 
	SECTION 4.7. Selection of Counsel
	 	 	23	 
	SECTION 4.8. Holdback Agreement
	 	 	23	 
	SECTION 4.9. Existing Agreements
	 	 	23	 
	 
	 	 	 	 
	ARTICLE V MISCELLANEOUS
	 	 	24	 
	SECTION 5.1. Amendments and Waivers
	 	 	24	 
	SECTION 5.2. Successors, Assigns and Transferees
	 	 	24	 
	SECTION 5.3. Legend
	 	 	24	 
	SECTION 5.4. Notices
	 	 	25	 
	SECTION 5.5. Further Assurances
	 	 	25	 
	SECTION 5.6. Entire Agreement
	 	 	25	 
	SECTION 5.7. Conflicting Agreements
	 	 	26	 
	SECTION 5.8. Delays or Omissions
	 	 	26	 
	SECTION 5.9. Governing Law; Consent to Jurisdiction; Venue
	 	 	26	 
	SECTION 5.10. Severability
	 	 	26	 
	SECTION 5.11. Enforcement
	 	 	26	 
	SECTION 5.12. Agents for Shareholders
	 	 	27	 
	SECTION 5.13. Titles and Subtitles
	 	 	27	 
	SECTION 5.14. Counterparts; Facsimile Signatures
	 	 	27	 
	SECTION 5.15. Capitalization
	 	 	27	 
	SECTION 5.16. Waiver; Other Agreements
	 	 	28	 

-i-

 

     THIS AMENDED AND RESTATED SHAREHOLDERS AGREEMENT (this “Agreement”) is entered into as
of April 4, 2007, among SandRidge Energy, Inc., a Delaware corporation (the “Company”), and
the other parties listed on the signature pages hereto.

RECITALS

     WHEREAS, pursuant to the Purchase and Sale Agreement, dated as of November 21, 2006 (the
“Purchase Agreement”), by and among the Company, SandRidge Holdings, Inc., American Real
Estate Partners, L.P., American Real Estate Holdings Limited Partnership (“AREHLP”), AREP
Oil & Gas Holdings LLC, AREP O & G Holdings LLC (“AREH” and together with AREHLP,
“AREP”), and NEG Oil & Gas, LLC, AREH received 12,842,000 shares of Common Stock (as
defined herein);

     WHEREAS, in connection with the Purchase Agreement, the Company, AREH and the other original
parties hereto entered into the Shareholders Agreement dated as of November 21, 2006 (the
“Original Shareholders Agreement”);

     WHEREAS, on the date hereof, AREP agreed to sell and transfer all of its rights under the
12,842,000 shares of Common Stock (the “Transaction”) acquired pursuant to the Purchase
Agreement to the investors identified on the signature pages hereto as “New Investors” pursuant to
the Purchase Agreement, dated as of the date hereof (the “New Purchase Agreement”), by and
among AREH and the other parties on the signature pages thereto;

     WHEREAS, the number of shares of Common Stock and any other SandRidge Equity Securities (as
defined herein) owned by Tom Ward, Malone Mitchell and their respective Permitted Transferees on
the date hereof is identified on Schedule A hereto; and

     WHEREAS, each of the parties hereto desires to continue to promote the interests of the
Company and the mutual interests of the parties hereto by reaffirming herein certain terms and
conditions upon which the shares of Common Stock and any other SandRidge Equity Securities will be
held.

     NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual promises
hereinafter set forth, the parties hereto hereby agree to amend and restate the Original
Shareholders Agreement as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1.   Certain Defined Terms. As used herein, the following terms shall have
the following meanings:

     “2006 Securities Purchase Agreement” has the meaning assigned to such term in
Section 5.15.

     “Additional Ares Shares” means, as of any date, with respect to Ares, the shares of
Common Stock acquired by Ares pursuant to the Stock Purchase Agreement, dated February

 

 

12, 2007, by and among the Company, Ares and the other parties listed on the signature pages
thereto, and held by Ares as of such date.

     “Affiliate” means, with respect to any Person, any Person directly or indirectly
controlling, controlled by or under common control with such Person.

     “Agreement” has the meaning assigned to such term in the Preamble.

     “Applicable Portion” means for the purposes of Section 2.2, at any time with
respect to any proposed Transfer of Shares, on the applicable Transfer date, for each Tagging
Shareholder the number of shares of Common Stock equal to the product of (i) the total number of
Taggable Shares to be Transferred to the proposed Transferee and (ii) the fraction determined by
dividing (A) the sum of (1) the total number of Shares beneficially owned at such time by the
Tagging Shareholder and its Permitted Transferees which AREP agreed to sell to the New Investors
pursuant to the New Purchase Agreement and (2) the total number of Additional Ares Shares
beneficially owned at such time by the Tagging Shareholder by (B) the sum of (1) the total number
of Shares beneficially owned at such time by the New Investors, (2) the total number of Additional
Ares Shares beneficially owned at such time by Ares, and (3) the total number of Shares
beneficially owned at such time by Tom Ward and his Permitted Transferees.

     “AREP” has the meaning assigned to such term in the Recitals.

     “Ares” means any or all of Ares Corporate Opportunities Fund II, L.P., Ares SandRidge,
L.P., Ares SandRidge 892 Investors, L.P. and Ares SandRidge Co-Invest LLC, as the context may
require, and each of their respective Permitted Transferees.

     “Ares Reg Rights Agreement” has the meaning assigned to such term in Section
5.16(b).

     “beneficial owner” or “beneficially own” has the meaning given such term in
Rule 13d-3 under the Exchange Act and a Person’s beneficial ownership of Shares or Additional Ares
Shares, as the case may be, shall be calculated in accordance with the provisions of such Rule;
provided, however, that for purposes of determining beneficial ownership, no Person
shall be deemed to beneficially own any security solely as a result of such Person’s execution of
this Agreement.

     “Block Trade” means a “block trade” as such term is commonly understood in the
securities industry.

     “Board” means the board of directors of the Company.

     “Business Day” means any day that is not a Saturday, a Sunday or other day on which
banks are required or authorized by law to be closed in the City of New York.

     “Certificate of Designation” means the Certificate of Designation of Series A
Convertible Preferred Stock of the Company, in the form filed with the Secretary of State of the
State of Delaware on December 11, 2006.

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     “Chosen Courts” has the meaning assigned to such term in Section 5.9.

     “Common Stock” means the common stock of the Company.

     “Company” has the meaning assigned to such term in the Preamble.

     “control” (including the terms “controlled by” and “under common control
with”), with respect to the relationship between or among two or more Persons, means the
possession, directly or indirectly, of the power to direct or cause the direction of the affairs or
management of a Person, whether through the ownership of voting securities, as trustee or executor,
by contract or otherwise.

     “Demand Party” means (i) Tom Ward, (ii) Malone Mitchell or (iii) all of the New
Investors regardless of which New Investor (including any Transferee of the New Investors’ rights
pursuant to Section 2.3(b)) or group of New Investors acting together (subject to
Section 2.3(c)) initiates a demand registration request pursuant to Section 4.2(a).

     “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 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
Equity Interest at the time of issuance or upon the passage of time or occurrence of some future
event.

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

     “Existing Agreements” means (i) the Resale Registration Rights Agreement dated
December 21, 2005 between the Company and Banc of America Securities LLC, (ii) the Registration
Rights Agreement, dated as of November 21, 2006, among the Company and the holders of preferred
stock and common units parties thereto, (iii) the Registration Rights Agreement, dated as of March
20, 2007, between the Company and the purchasers of common stock parties thereto, (iv) the
Shareholders Agreement among SandRidge Energy, Inc. and certain common shareholders of SandRidge
Energy, Inc., dated as of March 20, 2007, and (v) the Securities Purchase Agreement among Riata
Energy, Inc. (d/b/a SandRidge Energy, Inc.) and the purchasers set forth on schedule I thereto,
dated as of November 21, 2006.

     “Fair Market Value” means, as of any date, (i) with respect to shares of Common Stock
from and after the consummation of an initial public offering of Common Stock, the average closing
sale price of shares on the stock exchange (including any securities exchange administered by The
Nasdaq Stock Market) on which the shares are principally trading for the

3

 

twenty trading days immediately prior to such date, or (ii) with respect to shares of Common
Stock or any other securities prior to the consummation of an initial public offering of Common
Stock or any other securities, the average price of the PORTAL trades for such Common Stock or
other securities, as the case may be, during the twenty Business Days immediately prior to such
date; provided, that in the case of clause (i) or (ii), if the Company consummates a
financing on such date involving third party purchasers of Common Stock or such other securities,
(x) Fair Market Value as of such date shall be the purchase price paid by such third parties if the
Company has received a fairness opinion or valuation or appraisal report from an independent
nationally recognized investment bank or valuation or appraisal firm which provides that such
purchase price is fair from a financial point of view or within a range of fair market value or (y)
Fair Market Value as of such date shall be the initial public offering price if such financing is
an initial public offering or the Qualified Public Offering.

     “Holdback Period” has the meaning assigned to such term in Section 4.8(b).

     “Holder” means each of the Shareholders and any other holder of Registrable Securities
(including any direct or indirect transferee of a Shareholder who has acquired Registrable
Securities from a Shareholder not in violation of this Agreement and agrees in writing to be bound
by the provisions of this Agreement); provided, that any registration rights of the New
Investors in this Agreement may only be transferred in accordance with Section 2.3.

     “Indemnified Parties” has the meaning assigned such term in Section 4.5(a).

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

     “MM Agent” has the meaning assigned to such term in Section 5.12(b).

     “NASD” has the meaning assigned to such term in the definition of Registration
Expenses in this Section 1.1.

     “New Investor” means any New Investor and its Permitted Transferees and “New
Investors” means, collectively, each of the New Investors and their respective Permitted
Transferees.

     “New Purchase Agreement” has the meaning assigned to such term in the Recitals.

     “Original Shareholders Agreement” has the meaning assigned to such term in the
Recitals.

     “Permitted Transferee” shall mean (i) with respect to Tom Ward (and his Permitted
Transferees), 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, his
wife, children and grandchildren (and such entities, trusts or Affiliates of which Tom Ward, his
wife, children and grandchildren are the sole direct or indirect beneficiaries or beneficial
owners), (ii) with respect to Malone Mitchell (and his Permitted Transferees), his wife, children
and grandchildren and any entities, trusts and other Affiliates, whether or not controlled, the
sole beneficiaries or beneficial owners of which is Malone Mitchell, his wife, children and

4

 

grandchildren (and such entities, trusts or Affiliates of which Malone Mitchell, his wife,
children and grandchildren are the sole direct or indirect beneficiaries or beneficial owners), or
(iii) with respect to any Shareholder (other than the SandRidge Principals), an Affiliate or
Related Fund of such Shareholder; provided, however, that in each case such
Transferee shall agree in a writing in the form attached as Exhibit A hereto to be bound by and to
comply with all applicable provisions of this Agreement; provided, further,
however, that in no event shall a “Permitted Transferee” be the Company or any of its
Subsidiaries.

     “Person” means any individual, corporation, limited liability company, limited or
general partnership, joint venture, association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivisions thereof.

     “Piggyback Ares Shares” has the meaning assigned to such term in Section
4.2(e).

     “Preemptive Notice” has the meaning assigned to such term in Section 3.1(b).

     “Preemptive Right Proportionate Number” has the meaning assigned to such term in
Section 3.1(a).

     “Prescribed Time Period” has the meaning assigned to such term in Section
2.2(a).

     “Purchase Agreement” has the meaning assigned to such term in the Recitals.

     “Qualified Public Offering” or “QPO” means an underwritten, broad based public
offering in excess of $100 million of Common Stock (which results in gross proceeds to the sellers
of at least $100 million) and results in not less than 20 million shares of Common Stock (including
Common Stock covered by any Existing Agreement and any other registration rights agreement and any
shares sold pursuant to any previous public offerings) being listed for trading on a national
securities exchange (including any securities exchange administered by The Nasdaq Stock Market).

     “Registrable Securities” means any Common Stock held as of the date hereof by the
Holders (excluding any Common Stock which any Holder is entitled to register under any of the
Existing Agreements other than (a) any Additional Ares Shares (except with respect to Section
4.2 if the New Investors are the Demand Party) and (b) for all other purposes of Article
IV other than Section 4.2, any Additional Ares Shares excluded from the definition of
Registrable Securities by virtue of clause (a)). Any particular Registrable Securities that are
issued shall cease to be Registrable Securities hereunder when (i) a registration statement with
respect to the sale by the Holder of such securities shall have become effective under the
Securities Act and such securities shall have been disposed of in accordance with such registration
statement, (ii) such securities shall have been distributed to the public pursuant to Rule 144 (or
any successor provision) under the Securities Act or (iii) such securities shall have ceased to be
outstanding.

     “Registration Expenses” means any and all expenses incident to performance of or
compliance with Article IV of this Agreement, including, without limitation, (i) all SEC
and stock exchange or National Association of Securities Dealers, Inc. (the “NASD”)
registration and

5

 

filing fees (including, if applicable, the fees and expenses of any “qualified independent
underwriter,” as such term is defined in NASD conduct rule 2720, and of its counsel), (ii) all fees
and expenses of complying with securities or blue sky laws (including fees and disbursements of
counsel for the underwriters in connection with blue sky qualifications of the Registrable
Securities), (iii) all printing, messenger and delivery expenses, (iv) all fees and expenses
incurred in connection with the listing of the Registrable Securities on any national securities
exchange and all rating agency fees, (v) the fees and disbursements of counsel for the Company and
of its independent public accountants and independent engineers, including the expenses of any
special audits, reserve reports and/or “cold comfort” letters required by or incident to such
performance and compliance, (vi) the reasonable fees and disbursements of counsel selected pursuant
to Section 4.7 hereof by the Holders of the Registrable Securities being registered to
represent such Holders in connection with each such registration, and (vii) any fees and
disbursements of underwriters customarily paid by the issuers or sellers of securities, including
liability insurance if the Company so desires or if the underwriters so require, and the reasonable
fees and expenses of any special experts retained in connection with the requested registration,
but, in the cases of clauses (i) through (vii), excluding underwriting discounts and commissions
and transfer taxes, if any.

     “Related Fund” means, with respect to any New Investor that is an investment fund, any
other investment fund that is managed or advised by the same investment advisor as such New
Investor or by an Affiliate of such investment advisor.

     “Release Event” has the meaning assigned to such term in Section 4.8(a).

     “SandRidge Equity Securities” means (i) Common Stock and (ii) other Equity Interests
and Equity Interest Equivalents of the Company; provided, that with respect to any
provisions of this Agreement which requires the calculation of the number or percentage of
SandRidge Equity Securities, SandRidge Equity Securities shall be calculated on a fully diluted
basis.

     “SandRidge Principals” means Tom Ward, Malone Mitchell and their Permitted
Transferees.

     “Sale” (and “Sell” and “Sold” shall have correlative meaning) means
the sale, transfer, assignment or similar disposition (excluding pledge, encumbrance or
hypothecation) of SandRidge Equity Securities in which cash, securities or other property is
received as consideration.

     “Sale Notice” has the meaning assigned to such term in Section 2.2(a).

     “SEC” means the Securities and Exchange Commission or any other federal agency at the
time administering the Securities Act or the Exchange Act.

     “Second Piggyback Ares Shares” has the meaning assigned to such term in Section
4.2(e).

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

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     “Selling Shareholder” has the meaning assigned to such term in Section 2.2(a).

     “Shares” means, as of any date, (i) with respect to the SandRidge Principals, the
shares of Common Stock and any other SandRidge Equity Securities held by such Persons as of such
date, and (ii) with respect to any New Investor, the shares of Common Stock which AREP agreed to
sell to the New Investors pursuant to the New Purchase Agreement and held by such New Investor and
its Permitted Transferees as of such date; provided, that with respect to any provisions of
this Agreement which requires the calculation of the number or percentage of Shares, any SandRidge
Equity Securities shall be calculated on a fully-diluted basis.

     “Shareholder” means any holder of Common Stock which is a party to this Agreement.

     “Subsidiary” means (i) any corporation of which a majority of the securities entitled
to vote generally in the election of directors thereof, at the time as of which any determination
is being made, are owned by another entity, either directly or indirectly, and (ii) any joint
venture, general or limited partnership, limited liability company or other legal entity in which
an entity is the record or beneficial owner, directly or indirectly, of a majority of the voting
interests or the general partner.

     “Substantial Block” means, with respect to any Transfer, Shares in excess of 3% of the
outstanding Common Stock on a fully diluted basis.

     “Taggable Shares” has the meaning assigned to such term in Section 2.2(a).

     “Tagging Shareholder” has the meaning assigned to such term in Section 2.2(a).

     “Third Party Holder” has the meaning assigned to such term in Section 4.3(a).

     “Transaction” has the meaning assigned to such term in the Recitals.

     “Transfer” (and “Transferor”, “Transferee” and “Transferring”
shall have correlative meanings) 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 SandRidge Equity
Securities beneficially owned by a Person or any interest in any SandRidge Equity Securities
beneficially owned by a Person.

     “TW Agent” has the meaning assigned to such term in Section 5.12(a).

     SECTION 1.2.   Other Definitional Provisions. (a)  The words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement, and Article and Section
references are to this Agreement unless otherwise specified.

     (b)   The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

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     (c)   All references in this Agreement to “Common Stock”, “SandRidge Equity Securities” and
“Shares” shall include any securities of the Company issued in respect thereof, or in substitution
therefor, in connection with any stock split, dividend or combination, or any reclassification,
recapitalization, merger, consolidation, exchange or other similar reorganization.

     (d)   For the avoidance of doubt, with respect to any provision of this Agreement which
requires the calculation of the number or percentage of Common Stock, SandRidge Equity Securities
or Shares on a fully diluted basis, such calculation shall assume the conversion or exercise of any
convertible securities, options, warrants or similar securities.

ARTICLE II

TRANSFERS

     SECTION 2.1.   Transfer Restrictions. (a)  No Shareholder may Transfer its Shares
except (i) Transfers to its Permitted Transferees, (ii) Transfers in compliance with Section
2.2, (iii) Transfers made with the prior written consent of the Company, and (iv) Transfers
permitted by Section 2.1(b), 2.1(c) or 2.1(d).

     (b)   After the earlier of (i) the 180th day after the consummation of the QPO (or earlier
upon the occurrence of a Release Event under Section 4.8) and (ii) March 1, 2008, each
Shareholder may Transfer its Shares.

     (c)   Each New Investor may make Sales of its Shares pursuant to PORTAL or Rule 144A under the
Securities Act or pursuant to an exemption from registration under the Securities Act.

     (d)   (1) Each of the New Investors and the SandRidge Principals may make bona fide pledges,
hypothecations or encumbrances of their Shares to lenders or other financing sources or other
entities generally engaged in the business of making loans or acquiring or investing in debt (which
shall include, without limitation, any trustee or other agent acting for the benefit thereof)
pursuant to bona fide borrowing arrangements (provided that, if, at the time such pledge or
hypothecation is made or encumbrance is incurred, the pledged Shares (including previously pledged
Shares) represent more than 25% of the Shares held by any New Investor or any SandRidge Principal,
as the case may be, with respect to the Shares in excess of such 25%, such financial institution or
such other entity shall agree to be bound by the restrictions set forth in this Agreement upon
foreclosing on such Shares unless such financial institution would be so bound by operation of law.

          (2) In addition, each New Investor may directly or indirectly make pledges, hypothecations or
encumbrances of the Equity Interests of any Subsidiary which holds the Shares (or that owns,
directly or indirectly, through one or more Subsidiaries, Equity Interests of a Subsidiary that
holds the Shares) to lenders or other financing sources or other entities generally engaged in the
business of making loans or acquiring or investing in debt (which shall include, without
limitation, any trustee or other agent acting for the benefit thereof) pursuant to

8

 

financing arrangements so long as such Subsidiary which holds the Shares continues to be bound
by this Agreement; provided, that in connection with making such pledge, hypothecation or
encumbrance, such New Investor shall provide to the Company a certificate in the form attached
hereto as Exhibit B.

     (e)   Each Shareholder shall as promptly as practicable provide the Company with written
notice of any direct Transfer of Shares.

     (f)   For the avoidance of doubt, a merger or consolidation of the Company with any other
Person shall not be deemed a violation of this Section 2.1.

     SECTION 2.2.   Tag-Along Rights.

     (a)   In the event of a proposed Sale (including Sales permitted under Section 2.1(a)(iii)
and 2.1(b)) of SandRidge Equity Securities by Tom Ward and/or his Permitted Transferees
(collectively, the “Selling Shareholder”), each New Investor (each a “Tagging
Shareholder” and collectively, the “Tagging Shareholders”) shall have the right to
participate in such Sale in the manner set forth in this Section 2.2. Prior to any such
Sale, the Selling Shareholder shall deliver to each Tagging Shareholder written notice (the
“Sale Notice”), which notice shall state (i) the name of the proposed Transferee, (ii) the
number of shares of SandRidge Equity Securities proposed to be sold (the “Taggable
Shares”), (iii) the proposed purchase price therefor, including a description of any non-cash
consideration (along with any report and other material document (and summary of any other material
oral information) relevant to the valuation of such non-cash consideration which the Selling
Shareholder has, so long as such Tagging Shareholder 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 Sale Notice). The Selling Shareholder shall not consummate the Sale unless
each Tagging Shareholder has been provided the right from the proposed Transferee to sell to the
proposed Transferee identified in the Sale Notice the Applicable Portion of the Taggable Shares on
the terms and conditions set forth in the Sale Notice by giving written notice to the Selling
Shareholder within the fifteen (15) Business Day period (the “Prescribed Time Period”)
after the delivery of the Sale Notice, which notice shall state that such Tagging Shareholder
elects to exercise its tag-along rights under this Section 2.2 and shall state the maximum
number of Shares and Additional Ares Shares sought to be sold. The Tagging Shareholder shall be
deemed to have waived its tag-along rights under this Section 2.2 if it fails to give
notice within the Prescribed Time Period.

     (b)   The Tagging Shareholder, if it has elected to exercise its tag-along rights provided
under this Section 2.2, shall participate in the Sale by delivering to the Selling
Shareholder at the closing of the Sale of the Selling Shareholder’s SandRidge Equity Securities to
the Transferee the Shares and Additional Ares Shares to be sold by the Tagging Shareholder, duly
endorsed for transfer, against payment of the aggregate purchase price therefor.

     (c)   The following Transfers by Tom Ward and his Permitted Transferees shall not be subject
to the tag-along rights provided under this Section 2.2: (i) Transfers at any time to
Permitted Transferees of such Shareholder in compliance with the terms of this Agreement, and

9

 

(ii) following a QPO, (A) any Transfer by Tom Ward and his Permitted Transferees of less than
a Substantial Block (in one transaction or a series of related transactions) and (B) Transfers
pursuant to (x) Rule 144 under the Securities Act or (y) pursuant to an effective registration
statement under the Securities Act (other than a Block Trade (in one transaction or a series of
related transactions) of a Substantial Block), in each case in compliance with Article IV
hereof; provided, that each New Investor has the right to register its Registrable
Securities under such registration statement (subject to Article IV hereof).

     (d)   Notwithstanding the other provisions of this Section 2.2, with respect to any
Block Trade of a Substantial Block under a registration statement pursuant to Article IV,
(i) the fifteen (15) Business Day period referred to in Section 2.2(a) shall be reduced to
a three (3) Business Day period and (ii) the 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)   This Section 2.2 and the tag-along rights provided herein shall expire upon the
earlier of (i) two (2) years after a Qualified Public Offering and (ii) such time when the New
Investors and their Affiliates, taken together, beneficially own in the aggregate less than 20% of
the outstanding Shares that AREP agreed to sell to the New Investors pursuant to the New Purchase
Agreement.

     SECTION 2.3.   Rights and Obligations of Transferees. (a)   No Transferee of any
Shareholder (except a Permitted Transferee) shall be entitled to any rights under this Agreement
except as provided in Section 2.3(b). A Permitted Transferee shall be permitted to
exercise all rights of the Transferring Shareholder under this Agreement, and shall be required to
assume all of the obligations of the Transferring Shareholder under this Agreement, with respect to
the Shares and Additional Ares Shares Transferred.

     (b)   Any New Investor may assign its registration rights provided in Article IV in
connection with one or more Sales of at least 1,000,000 Registrable Securities (appropriately
adjusted for stock splits, dividends, combinations, recapitalizations and other similar events) or,
if any New Investor holds less than 1,000,000 Registrable Securities, all outstanding Registrable
Securities of such New Investor; provided, that (i) the Transferees of such registration
rights do not exceed two Persons per New Investor (excluding for this purpose Permitted Transferees
and for this purpose counting any Transferee and its Affiliates and Related Funds as one Person)
and (ii) the aggregate rights of the New Investor and such Transferees under Article IV
after such Transfer do not exceed the rights of the New Investor under Article IV prior to
such Transfer; provided, further, that any simultaneous transfer of Registrable
Securities by such New Investor and its Permitted Transferees shall be aggregated for purposes of
the Registrable Securities threshold.

     (c)   The New Investors and any Transferees of the New Investors (excluding TLW Properties,
L.L.C., Tom Ward and their Permitted Transferees) shall exercise their registration rights under
this Agreement, unless otherwise stated herein, acting collectively by a vote of the majority of
the Shares (excluding any Shares held by TLW Properties, L.L.C., Tom Ward or their Permitted
Transferees) held by them; provided, that if any New Investor or New Investors initiate a
demand registration request pursuant to Section 4.2(a), such action may be taken by (i) the
affirmative vote of at least thirty percent (30%) of the Shares (excluding any

10

 

Shares held by TLW Properties, L.L.C., Tom Ward or their Permitted Transferees) then held by
the New Investors (excluding TLW Properties, L.L.C., Tom Ward and their Permitted Transferees) or
(ii) the written consent of Ares Corporate Opportunities Fund II, L.P. as long as Ares beneficially
owns at least 900,000 Shares.

     SECTION 2.4.   Number of Securities. Each SandRidge Principal hereby represents and
warrants as of the date hereof that: (i) set forth on Schedule A is the number of Shares
and any other SandRidge Equity Securities beneficially owned by such SandRidge Principal and his
Permitted Transferees as of the date of this Agreement; and (ii) he, she or it has no registration
rights with respect to SandRidge Equity Securities other than as set forth herein and in the
Existing Agreements. If any provision of this Agreement which requires the calculation of the
number of Shares and any other SandRidge Equity Securities beneficially owned by any Shareholder
and its Permitted Transferees becomes applicable after the date hereof, such Shareholder shall
provide to the other Shareholders the number of Shares and any other SandRidge Equity Securities
beneficially owned by such Shareholder and its Permitted Transferees.

     SECTION 2.5.   Void Transfers. Any Transfer or attempted Transfer of Shares in
violation of any provision of this Agreement shall be void.

ARTICLE III

 LIMITED PREEMPTIVE RIGHTS

     SECTION 3.1.   Limited Preemptive Rights. (a)   If at any time prior to the
completion of an IPO, the Company proposes to Sell, issue or otherwise Transfer any SandRidge
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 New Investor shall have the right to purchase the Preemptive Right
Proportionate Number of SandRidge 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
3.1 shall not be applicable to sales or issuances of Excluded Stock (as defined in the
Certificate of Designation). The “Preemptive Right Proportionate Number” shall be, at any
given time, with respect to each New Investor, a number equal to (i) the number of Shares
beneficially owned by such New Investor at such time multiplied by (ii) a fraction, the numerator
of which is the total number of SandRidge Equity Securities proposed to be issued, Sold or
otherwise Transferred by the Company at such time and the denominator of which is the total number
of Shares outstanding immediately prior to the date of the Preemptive Notice. For the avoidance of
doubt, this Section 3.1 shall not be applicable to the conversion or exercise of any
convertible securities, warrants, options or similar securities so long as the Sale, issuance or
Transfer of such securities was made in accordance with this Section 3.1.

     (b) In the event the Company proposes to undertake a Sale, issuance or other Transfer of
SandRidge Equity Securities to which this Section 3.1 applies, it shall provide each New
Investor 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

11

 

tangible assets only), the identity of the purchaser and the material terms upon which the
Company proposes to Sell, issue or otherwise Transfer the same. Each New Investor shall have ten
(10) Business Days from the delivery date of any Preemptive Notice to agree to purchase (if the
form of consideration is tangible assets, at such New Investor’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
SandRidge 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 SandRidge Equity
Securities to be purchased. If a definitive agreement for the purchase of such SandRidge Equity
Securities is not provided along with the Preemptive Notice, such New Investor’s election to
purchase SandRidge Equity Securities pursuant to such Preemptive Notice shall not be binding until
a definitive agreement is executed (but, subject to Section 3.1(c), an election to not
purchase shall be binding).

     (c) In the event the New Investors do not purchase all of the Preemptive Right Proportionate
Number of SandRidge Equity Securities pursuant to this Section 3.1, the Company shall have
180 days after the date of the Preemptive Notice to consummate the Sale, issuance or Transfer of
the SandRidge Equity Securities with respect to which the New Investors’ preemptive rights were not
exercised, 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 SandRidge 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, issuance or other Transfer.

ARTICLE IV

REGISTRATION RIGHTS

     SECTION 4.1.   [INTENTIONALLY OMITTED].

     SECTION 4.2.   Registration on Request. (a)  Request by the Demand Party.
Upon the written request of any Demand Party requesting that the Company effect the registration
under the Securities Act of all or part of such Demand Party’s Registrable Securities and
specifying the amount and intended method of disposition thereof, the Company will promptly give
written notice of such requested registration to all other Holders, and thereupon will, as
expeditiously as possible, use its reasonable best efforts to effect the registration under the
Securities Act of:

     (i) such Registrable Securities which the Company has been so requested to register by
the Demand Party; and

     (ii) all other Registrable Securities which the Company has been requested to register
by any other Holder thereof by written request given to the Company within fifteen (15)
Business Days after the giving of such written notice by the Company (which request shall
specify the amount and intended method of disposition of such Registrable Securities),

12

 

all to the extent necessary to permit the disposition (in accordance with the intended method
thereof as aforesaid) of the Registrable Securities so to be registered (including by means of a
shelf registration under Rule 415 under the Securities Act if so requested by the Demand Party and
if the Company is then eligible to use such a registration); provided, that the Company
shall not be obligated to file a registration statement relating to any registration request under
this Section 4.2(a) within a period of 120 days after the effective date of any other
registration statement relating to any registration request under this Section 4.2(a) or
relating to any registration effected under Section 4.3.

     (b)   Expenses. The Company will pay all Registration Expenses in connection with
registrations of Registrable Securities pursuant to this Section 4.2.

     (c)   Effective Registration Statement. A registration requested pursuant to this
Section 4.2 will not be deemed to have been effected unless it has become effective and
remains effective for the period provided in Section 4.4(ii); provided, that if,
within 180 days after it has become effective, the offering of Registrable Securities pursuant to
such registration is interfered with by any stop order, injunction or other order or requirement of
the SEC or other governmental agency or court, such registration will be deemed not to have been
effected.

     (d)   Selection of Underwriters. If a requested registration pursuant to this
Section 4.2 involves an underwritten offering, the Company shall have the right to select
the investment banker or bankers and managers to administer the offering; provided,
however, that such investment banker or bankers and managers shall be reasonably
satisfactory to the Demand Party.

     (e)   Priority in Requested Registrations. If a requested registration pursuant to
this Section 4.2 involves an underwritten offering and the managing underwriter advises the
Company in writing that, in its opinion, the number of securities requested to be included in such
registration (including securities of the Company which are not Registrable Securities) exceeds the
number which can be sold in such offering, the Company will include in such registration only (i)
the Registrable Securities of the Demand Party and other Holders requested to be included in such
registration, (ii) if the New Investors are the Demand Party pursuant to a demand exercised under
Section 2.3(c)(i), the Additional Ares Shares requested to be included in such registration
pursuant to Section 4.3(a) (the “Piggyback Ares Shares”) and (iii) if the New
Investors are the Demand Party pursuant to a demand exercised solely under Section
2.3(c)(ii), the Additional Ares Shares requested to be included in such registration pursuant
to Section 4.3(a) (the “Second Piggyback Ares Shares”). In the event that the
number of Registrable Securities of the Holders requested to be included in such registration
exceeds the number which, in the opinion of such managing underwriter, can be sold, the number of
such Registrable Securities to be included in such registration shall be allocated (i) first, 100%
of the Registrable Securities of the Demand Party (which shall include all of the New Investors if
the Demand Party is the New Investors) who requested the registration (and such Demand Party’s
Permitted Transferees) propose to sell, (ii) second, pro rata among all such other requesting
Holders on the basis of the relative number of shares of Registrable Securities and Piggyback Ares
Shares then held by each such Holder (provided that any shares thereby allocated to any such Holder
that exceed such Holder’s request shall be reallocated among the remaining requesting Holders in
like manner) and (iii) third, the Second Piggyback Ares Shares. For the avoidance of doubt, the

13

 

Additional Ares Shares shall not, in any case, be included in clause (i) of the preceding
sentence. In the event that the number of Registrable Securities, Piggyback Ares Shares and Second
Piggyback Ares Shares requested to be included in such registration is less than the number which,
in the opinion of the managing underwriter, can be sold, the Company may include in such
registration the securities the Company proposes to sell up to the number of securities that, in
the opinion of the underwriter, can be sold.

     (f)   Limitation on Registration on Request. Notwithstanding anything in this
Section 4.2 to the contrary, the Company shall not be obligated to and shall not take any
action to effect any registration pursuant to this Section 4.2,

     (i) (A) in the event the New Investors are the Demanding Party, at any time prior to
July 31, 2008 and (B) in the event any SandRidge Principal is the Demanding Party, at any
time prior to the date which is 201 days after the consummation of the Qualified Public
Offering; or

     (ii) if the Company has previously effected a number of registrations pursuant to this
Section 4.2 equaling or exceeding, in accordance with Section 4.2(c) above,
(A) in the event Tom Ward is the Demand Party, three (3) previous registrations in the
aggregate, in which Tom Ward was the Demand Party, (B) in the event Malone Mitchell is the
Demand Party, three (3) previous registrations in the aggregate, in which Malone Mitchell
was the Demand Party and (C) in the event any New Investor (or any Transferee of the New
Investors’ rights under Section 2.3(b)) is the Demand Party, three (3) previous
registrations in the aggregate, in which any of the New Investors (or any Transferee of the
New Investors’ rights under Section 2.3(b)) was the Demand Party.

     (g)   Postponements in Requested Registrations. (i) If the Company shall at any time
furnish to the Holders a certificate signed by its chairman of the Board, chief executive officer,
president or any other of its authorized officers stating that the filing of a registration
statement would, in the good faith judgment of the Company, materially impede, delay or interfere
with, or require premature disclosure of, any material financing, acquisition, corporate
reorganization or other significant transaction involving the Company or require the disclosure of
material information the disclosure of which would have a material adverse effect on the business,
operations or prospects of the Company, the Company may postpone the filing (but not the
preparation) of a registration statement required by this Section 4.2 for up to 60 days in
any 90 day period and up to 90 days in any 360 day period and (ii) if the Company determines in its
good faith judgment, that the registration and offering otherwise required by this Section
4.2 would have an adverse effect on a then contemplated public offering of the Company’s
securities, the Company may postpone the filing (but not the preparation) of a registration
statement required by this Section 4.2, during the period starting with the 30th day
immediately preceding the date of the anticipated filing of, and ending on a date 90 days (or such
shorter period as the managing underwriter may permit) following the effective date of, the
registration statement relating to such other public offering; provided, that the Company
shall at all times in good faith use its reasonable best efforts to cause any registration
statement required by this Section 4.2 to be filed as soon as possible. The Company shall
promptly give the Holders requesting registration thereof pursuant to this Section 4.2
written notice of any postponement made in accordance with the preceding sentence. If the Company
gives the Holders such a

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notice, the Holders shall have the right, within 15 Business Days after receipt thereof, to
withdraw their request in which case, such request will not be counted for purposes of Section
4.2(f) (provided that, notwithstanding such withdrawal, the Company shall pay the Registration
Expenses in connection therewith)

     SECTION 4.3.   Incidental Registrations. (a)  Right to Include Registrable
Securities. If the Company at any time proposes to register its Common Stock under the
Securities Act (other than a registration statement on Form S-4 or S-8, or any successor or other
forms promulgated for similar purposes), whether or not for sale for its own account (including in
a registration pursuant to registration rights held by any Person (each a “Third Party
Holder”) but excluding any registration under Section 4.2, other than with respect to
any Additional Ares Shares that are not considered to be Registrable Securities for purposes of a
registration under Section 4.2 by virtue of clause (a) of the definition of Registrable
Securities), in a manner which would permit registration of Registrable Securities for sale to the
public under the Securities Act, it will, at each such time, give prompt written notice to all
Holders of Registrable Securities of its intention to do so and of such Holders’ rights under this
Section 4.3. Upon the written request of any such Holder made within 15 Business Days
after the receipt of any such notice (which request shall specify the Registrable Securities
intended to be disposed of by such Holder), the Company will use its reasonable best efforts to
effect the registration under the Securities Act of all Registrable Securities which the Company
has been so requested to register by the Holders thereof, to the extent requisite to permit the
disposition of the Registrable Securities so to be registered; provided, that (i) if, at
any time after giving written notice of its intention to register any securities and prior to the
effective date of the registration statement filed in connection with such registration, the
Company shall determine for any reason not to proceed with the proposed registration of the
securities to be sold by it, the Company may, at its election, give written notice of such
determination to each Holder of Registrable Securities and, thereupon, shall be relieved of its
obligation to register any Registrable Securities in connection with such registration (but not
from its obligation to pay the Registration Expenses in connection therewith) and (ii) if such
registration involves an underwritten offering, all Holders of Registrable Securities requesting to
be included in the Company’s registration must sell their Registrable Securities to the
underwriters selected by the Company on the same terms and conditions as apply to the Company (with
such differences, including any with respect to indemnification and liability insurance, as may be
customary or appropriate in combined primary and secondary offerings) or to the Third Party Holder.
If a registration requested pursuant to this Section 4.3(a) involves an underwritten
public offering, any Holder of Registrable Securities requesting to be included in such
registration may elect, in writing prior to the effective date of the registration statement filed
in connection with such registration, not to register such securities in connection with such
registration.

     (b)   Expenses. The Company will pay all Registration Expenses in connection with
each registration of Registrable Securities pursuant to this Section 4.3.

     (c)   Priority in Incidental Registrations. If a registration pursuant to this
Section 4.3 involves an underwritten offering and the managing underwriter advises the
Company in writing that, in its opinion, the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering, so as to be likely to have an
adverse effect on the price, timing or distribution of the securities offered in such offering as

15

 

contemplated by the Company (other than the Registrable Securities), then the Company will
include in such registration (except as otherwise provided in Section 4.2(e)) (i) first,
100% of the securities the Company (or the Third Party Holder) proposes to sell and (ii) second, to
the extent of the number of Registrable Securities requested to be included in such registration
pursuant to this Section 4.3 which, in the opinion of such managing underwriter, can be
sold without having the adverse effect referred to above, the number of Registrable Securities
which the Holders have requested to be included in such registration, such amount to be allocated
pro rata among all requesting Holders on the basis of the relative number of shares of Registrable
Securities then held by each such Holder; provided, that any shares thereby allocated to
any such Holder that exceed such Holder’s request will be reallocated among the remaining
requesting Holders in like manner.

     (d)   Registration Rights of Third Parties. After the date hereof and prior to the
time at which the tag-along rights under Section 2.2 expires, the Company shall not grant
any Third Party Holder any piggyback or incidental registration rights which are senior in priority
with the registration rights provided in this Section 4.3 or which are pari passu or senior
in priority with the registration rights provided under Section 4.2.

     SECTION 4.4.   Registration Procedures. If and whenever the Company is required to
use its reasonable best efforts to effect or cause the registration of any Registrable Securities
under the Securities Act as provided in this Agreement, the Company will:

     (i) prepare and, in any event within 90 days after the end of the period within which a
request for registration may be given by the Demand Party pursuant to Section 4.2,
file with the SEC a registration statement with respect to such Registrable Securities and
use its reasonable best efforts to cause such registration statement to become effective;
provided, however, that the Company may discontinue any registration of its
securities which is being effected pursuant to Section 4.3 at any time prior to the
effective date of the registration statement relating thereto;

     (ii) prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period not in excess of 180 days and to comply with
the provisions of the Securities Act, the Exchange Act and the rules and regulations of the
SEC thereunder with respect to the disposition of all securities covered by such
registration statement during such period in accordance with the intended methods of
disposition by the seller or sellers thereof set forth in such registration statement;

     (iii) furnish to each seller of such Registrable Securities such number of copies of
such registration statement and of each amendment and supplement thereto (in each case
including all exhibits filed therewith, including any documents incorporated by reference),
such number of copies of the prospectus included in such registration statement (including
each preliminary prospectus and summary prospectus), in conformity with the requirements of
the Securities Act, and such other documents as such seller may reasonably request in order
to facilitate the disposition of the Registrable Securities by such seller;

16

 

     (iv) use its reasonable best efforts to register or qualify such Registrable Securities
covered by such registration under such other securities or blue sky laws in such
jurisdictions as each seller shall reasonably request, and do any and all other acts and
things which may be reasonably necessary or advisable to enable such seller to consummate
the disposition in such jurisdictions of the Registrable Securities owned by such Seller,
except that the Company shall not for any such purpose be required to qualify generally to
do business as a foreign corporation in any jurisdiction where, but for the requirements of
this clause (iv), it would not be obligated to be so qualified, to subject itself to
taxation in any such jurisdiction or to consent to general service of process in any such
jurisdiction;

     (v) notify each seller of any such Registrable Securities covered by such registration
statement, at any time when a prospectus relating thereto is required to be delivered under
the Securities Act within the appropriate period mentioned in clause (ii) of this
Section 4.4, of the Company’s becoming aware that the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a material fact
or omits to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances under which they were
made, and at the request of any such seller, prepare and furnish to such seller a reasonable
number of copies of an amended or supplemental prospectus as may be necessary so that, as
thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall
not include an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading in the light
of the circumstances under which they were made;

     (vi) use its reasonable best efforts to comply with all applicable rules and
regulations of the SEC, and make available to its shareholders, as soon as reasonably
practicable (but not more than eighteen months) after the effective date of the registration
statement, an earnings statement which shall satisfy the provisions of Section 11(a) of the
Securities Act and the rules and regulations promulgated thereunder;

     (vii) (A) use its reasonable best efforts to list such Registrable Securities on any
national securities exchange on which the Common Stock is then listed if such Registrable
Securities are not already so listed and if such listing is then permitted under the rules
of such exchange; and (B) use its reasonable best efforts to provide a transfer agent and
registrar for such Registrable Securities covered by such registration statement not later
than the effective date of such registration statement;

     (viii) enter into such customary agreements (including an underwriting agreement in
customary form), which may include indemnification provisions in favor of underwriters and
other persons in addition to, or in substitution for the provisions of Section 4.5
hereof, as the underwriters, if any, reasonably request in order to expedite or facilitate
the disposition of such Registrable Securities (provided that the Holders on whose behalf
the Registrable Securities are to be distributed by such underwriters shall be parties to
any such underwriting agreement and the representations and warranties by, and the other
agreements on the part of, the Company to and for the benefit of such underwriters, shall
also be made to and for the benefit of such Holders);

17

 

     (ix) make available for reasonable inspection by any seller of such Registrable
Securities covered by such registration statement, by any underwriter participating in any
disposition to be effected pursuant to such registration statement and by any attorney,
accountant or other agent retained by any such seller or any such underwriter, in each case
upon reasonable notice, pertinent financial and other records, pertinent corporate documents
and properties of the Company, and cause the Company’s officers, directors and employees to
supply all pertinent information reasonably requested by any such seller, underwriter,
attorney, accountant or agent in connection with such registration statement, and use
reasonable best efforts to provide reasonable opportunities to discuss the business of the
Company with the independent public accountants who have certified or reviewed the Company’s
financial statements;

     (x) notify counsel (selected pursuant to Section 4.7 hereof) for the Holders of
Registrable Securities included in such registration statement and the managing underwriter
or agent, immediately, and confirm the notice in writing (A) when the registration
statement, or any post-effective amendment to the registration statement, shall have become
effective, or any supplement to the prospectus or any amendment prospectus shall have been
filed, (B) of the receipt of any comments from the SEC, (C) of any request of the SEC to
amend the registration statement or amend or supplement the prospectus or for additional
information, and (D) of the issuance by the SEC of any stop order suspending the
effectiveness of the registration statement or of any order preventing or suspending the use
of any preliminary prospectus, or of the suspension of the qualification of the registration
statement for offering or sale in any jurisdiction, or of the institution or threatening of
any proceedings for any of such purposes;

     (xi) make every reasonable effort to prevent the issuance of any stop order suspending
the effectiveness of the registration statement or of any order preventing or suspending the
use of any preliminary prospectus and, if any such order is issued, to obtain the withdrawal
of any such order at the earliest possible moment;

     (xii) if requested by the managing underwriter or agent or any Holder of Registrable
Securities covered by the registration statement, promptly incorporate in a prospectus
supplement or post-effective amendment such information as the managing underwriter or agent
or such Holder reasonably requests to be included therein, including, without limitation,
with respect to the number of Registrable Securities being sold by such Holder to such
underwriter or agent, the purchase price being paid therefor by such underwriter or agent
and with respect to any other terms of the underwritten offering of the Registrable
Securities to be sold in such offering; and make all required filings of such prospectus
supplement or post-effective amendment as soon as practicable after being notified of the
matters incorporated in such prospectus supplement or post-effective amendment;

     (xiii) cooperate with the Holders of Registrable Securities covered by the registration
statement and the managing underwriter or agent, if any, to facilitate the timely
preparation and delivery of certificates representing securities to be sold under the
registration statement, and enable such securities to be in such denominations and

18

 

registered in such names as the managing underwriter or agent, if any, or such Holders
may request;

     (xiv) cooperate with each seller of Registrable Securities and each underwriter or
agent participating in the disposition of such Registrable Securities and their respective
counsel in connection with any filings required to be made with the NASD;

     (xv) cause management of the Company to participate in investor “road shows” and other
investor efforts or meetings so long as such requested participation is reasonable and will
not unduly interfere with the Company’s business and operations; and

     (xvi) use its reasonable best efforts to furnish an opinion of counsel for the Company
addressed to the underwriters dated the date of the closing under the underwriting agreement
(if any) (or if such offering is not underwritten, dated the effective date of the
registration statement), and (ii) use its reasonable best efforts to furnish a “cold
comfort” letter addressed to the underwriters and each Holder of Registrable Securities
included in such registration statement, if permissible under applicable accounting
practices, and signed by the independent public accountants who have audited the Company’s
financial statements included in such registration statement, in each such case covering
substantially the same matters with respect to such registration statement (and the
prospectus included therein) as are customarily covered in opinions of issuer’s counsel and
in accountants’ letters delivered to underwriters in underwritten public offerings of
securities.

     The Company may require each seller of Registrable Securities as to which any registration is
being effected to furnish the Company with such information regarding such seller and pertinent to
the disclosure requirements relating to the registration and the distribution of such securities as
the Company may from time to time reasonably request in writing.

     Each Holder of Registrable Securities agrees that, upon receipt of any notice from the Company
of the happening of any event of the kind described in clause (v) of this Section 4.4, such
Holder will forthwith discontinue disposition of Registrable Securities pursuant to the
registration statement covering such Registrable Securities until such Holder’s receipt of the
copies of the supplemented or amended prospectus contemplated by clause (v) of this Section
4.4, and, if so directed by the Company, such 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 prospectus covering such Registrable Securities current at the time of receipt of such
notice. In the event the Company shall give any such notice, the period mentioned in clause (ii)
of this Section 4.4 shall be extended by the number of days during the period from and
including the date of the giving of such notice pursuant to clause (v) of this Section 4.4
and including the date when each seller of Registrable Securities covered by such registration
statement shall have received the copies of the supplemented or amended prospectus contemplated by
clause (v) of this Section 4.4.

     SECTION 4.5.   Indemnification. (a)  Indemnification by the Company. In the event of
any registration of any securities of the Company under the Securities Act pursuant to

19

 

Section 4.2 or 4.3, the Company will, and it hereby does, indemnify and hold
harmless, to the extent permitted by law, the seller of any Registrable Securities covered by such
registration statement, each affiliate of such seller and their respective directors and officers,
members or general and limited partners (including any director, officer, affiliate, employee,
agent and controlling Person of any of the foregoing), each other Person who participates as an
underwriter in the offering or sale of such securities and each other Person, if any, who controls
such seller, each Affiliate thereof, or any such underwriter within the meaning of the Securities
Act (collectively, the “Indemnified Parties”), against any and all losses, claims, damages
or liabilities, joint or several, and expenses (including reasonable attorney’s fees and reasonable
expenses of investigation) to which such Indemnified Party may become subject under the Securities
Act, common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof, whether or not such Indemnified Party is a party thereto) arise out
of or are based upon (a) any untrue statement or alleged untrue statement of any material fact
contained in any registration statement under which such securities were registered under the
Securities Act, any preliminary, final or summary prospectus contained therein, or any amendment or
supplement thereto or any document incorporated by reference therein and other documents filed
under the Exchange Act, or (b) any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein (in the case of a
prospectus, in light of the circumstances under which they were made) not misleading, and the
Company will reimburse such Indemnified Party for any legal or any other expenses reasonably
incurred by it in connection with investigating or defending against any such loss, claim,
liability, action or proceeding; provided, that the Company shall not be liable to any
Indemnified Party in any such case to the extent that any such loss, claim, damage, liability (or
action or proceeding in respect thereof) or expense arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in such registration
statement or amendment or supplement thereto or in any such preliminary, final or summary
prospectus in reliance upon and in conformity with written information furnished to the Company
through an instrument duly executed by such Indemnified Party specifically stating that it is for
use in the preparation thereof. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such seller or any Indemnified Party and shall survive
the transfer of such securities by such seller.

     (b)   Indemnification by the Seller. The Company may require, as a condition to
including any Registrable Securities in any registration statement filed in accordance with
Section 4.4 herein, that the Company shall have received an undertaking reasonably
satisfactory to it from the prospective seller of such Registrable Securities or any underwriter to
indemnify and hold harmless (in the same manner and to the same extent as set forth in Section
4.5(a)) the Company and all other prospective sellers with respect to any untrue statement or
alleged untrue statement in or omission or alleged omission from such registration statement, any
preliminary, final or summary prospectus contained therein, or any amendment or supplement, if such
untrue statement or alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company through an instrument duly
executed by such seller or underwriter specifically stating that it is for use in the preparation
of such registration statement, preliminary, final or summary prospectus or amendment or
supplement, or a document incorporated by reference into any of the foregoing. Such indemnity
shall remain in full force and effect regardless of any investigation made by or on behalf of the
Company or any of the prospective sellers, or any of their respective affiliates, directors,
officers

20

 

or controlling Persons and shall survive the transfer of such securities by such seller. In
no event shall the liability of any selling Holder of Registrable Securities hereunder be greater
in amount than the dollar amount of the net proceeds received by such Holder, or of any underwriter
be greater than the dollar amount of the discount or commission received by such underwriter, in
each case upon the sale of the Registrable Securities giving rise to such indemnification
obligation.

     (c)   Notices of Claims, Etc. Promptly after receipt by an indemnified party
hereunder of written notice of the commencement of any action or proceeding with respect to which a
claim for indemnification may be made pursuant to this Section 4.5, such indemnified party
will, if a claim in respect thereof is to be made against an indemnifying party, give written
notice to the latter of the commencement of such action; provided, that the failure of the
indemnified party to give notice as provided herein shall not relieve the indemnifying party of its
obligations under this Section 4.5, except to the extent that the indemnifying party is
actually prejudiced by such failure to give notice. In case any such action is brought against an
indemnified party, unless in such indemnified party’s reasonable judgment a conflict of interest
between such indemnified party and indemnifying parties may exist in respect of such claim, or
there are separate defenses available to such indemnified party, or the indemnifying party fails to
timely assume the defense of such claim, the indemnifying party will be entitled to participate in
and to assume the defense thereof, jointly with any other indemnifying party similarly notified to
the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and
after notice from the indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified party for any legal
or other expenses subsequently incurred by the latter in connection with the defense thereof other
than reasonable costs of investigation. No indemnifying party will consent to entry of any
judgment or enter into any settlement which does not include, as an unconditional term thereof, the
giving by the claimant or plaintiff to such indemnified party of a release from all liability in
respect to such claim or litigation.

     (d)   Contribution. If for any reason the indemnity provided for in this Section
4.5 is unavailable or is insufficient to hold harmless an indemnified party hereunder, then
each indemnifying party shall contribute to the amount paid or payable by the indemnified party in
respect of the losses, claims, damages or liabilities suffered by the indemnified party (i) as
between the Company and the holders of Registrable Securities covered by a registration statement,
on the one hand, and the underwriters, on the other, in such proportion as is appropriate to
reflect the relative benefits received by the Company and such holders, on the one hand, and the
underwriters, on the other, from the offering of the Registrable Securities, or if such allocation
is not permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits but also the relative fault of the Company and such holders, on the one hand, and
of the underwriters, on the other, in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations, and (ii) as between the Company, on the one hand, and each holder of Registrable
Securities covered by a registration statement, on the other, in such proportion as is appropriate
to reflect the relative fault of the Company and of each such holder in connection with such
statements or omissions, as well as any other relevant equitable considerations. The relative
benefits received by the Company and such holders, on the one hand, and the underwriters, on the
other, shall be deemed to be in the same proportion as the total proceeds

21

 

from the offering (net of underwriting discounts and commissions but before deducting
expenses) received by the Company and such holders bear to the total underwriting discounts and
commissions received by the underwriters. The relative fault of the Company and such holders, on
the one hand, and of the underwriters, on the other, shall be determined by reference to, among
other things, 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 and such
holders or by the underwriters. The relative fault of the Company, on the one hand, and of each
such holder, on the other, shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact relates to information supplied by the
Company or by such holder, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

     The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 4.5(d) were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to in the
immediately preceding paragraph. 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.

     (e)   Other Indemnification. Indemnification similar to that specified in the
preceding provisions of this Section 4.5 (with appropriate modifications) shall be given by
the Company and each seller of Registrable Securities with respect to any required registration or
other qualification of securities under any federal or state law or regulation or governmental
authority other than the Securities Act.

     (f)   Non-Exclusivity. The obligations of the parties under this Section 4.5
shall be in addition to any liability which any party may otherwise have to any other party.

     SECTION 4.6.   Rules 144 and 144A. The Company covenants that it will file the
reports required to be filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the SEC thereunder (or, if the Company is not required to file such reports,
it will, upon the request of any Shareholder, make publicly available such information), and it
will take such further action as any Holder of Registrable Securities (or, if the Company is not
required to file reports as provided above, any Shareholder) may reasonably request, all to the
extent required from time to time to enable such Holder to sell shares of Registrable Securities
without registration under the Securities Act within the limitation of the exemptions provided by
(i) Rules 144 or 144A under the Securities Act, as such Rules may be amended from time to time, or
(ii) any similar rules or regulations hereafter adopted by the SEC. Upon the request of any Holder
of Registrable Securities, the Company will deliver to such Holder a written statement as to
whether it has complied with such requirements. Notwithstanding anything contained in this
Section 4.6, the Company may deregister under Section 12 of the Exchange Act if it then is
permitted to do so pursuant to the Exchange Act and the rules and regulations thereunder.

     SECTION 4.7.   Selection of Counsel. In connection with any registration of
Registrable Securities pursuant to Section 4.2 or 4.3 hereof, the Holders of a
majority of the Registrable Securities covered by any such registration may select one counsel to
represent all

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Holders of Registrable Securities covered by such registration; provided,
however, that in the event that the counsel selected as provided above is also acting as
counsel to the Company in connection with such registration, the remaining Holders shall be
entitled to select one additional counsel to represent all such remaining Holders.

     SECTION 4.8.   Holdback Agreement. (a) If any registration shall be in connection
with an underwritten public offering (including the Qualified Public Offering), to the extent
requested by the managing underwriters, each Holder of Registrable Securities agrees (but only if
such offering is the Qualified Public Offering or an offering in which such Holder is selling
securities) not to effect any sale or distribution, including any sale pursuant to Rule 144 under
the Securities Act, of equity securities of the Company, or of any securities convertible into or
exchangeable or exercisable for any equity security of the Company (in each case, other than as
part of such underwritten public offering), within seven days before, or such period not to exceed
90 days (or 180 days in the case of the Qualified Public Offering) as the underwriting agreement
may require (or such lesser period as the managing underwriters may permit) after, the effective
date of such registration. If Tom Ward, Malone Mitchell or any of their Permitted Transferees are
released from the restrictions contemplated by this Section 4.8 (the “Release
Event”), the New Investors and their Permitted Transferees shall be released to the same extent
from their obligations contemplated by this Section 4.8.

     (b) The Company agrees, if so required by the managing underwriter of any offering of
Registrable Securities, not to sell, make any short sale of, loan, grant any option for the
purchase of, effect any public Sale or distribution of or otherwise dispose of any of its equity
securities during the 30 days prior to and the 90 days (or 180 days in the case of the Qualified
Public Offering) after any underwritten registration pursuant to Section 4.2 or 4.3
hereof has become effective (the “Holdback Period”), except as part of such underwritten
registration. Notwithstanding the foregoing sentence, the Company shall be entitled to (i) issue
shares of Common Stock or other securities upon the exercise of an option or warrant or the
conversion or exchange of a security outstanding prior to the Holdback Period, (ii) grant options
to purchase shares of Common Stock or issue restricted shares of Common Stock or other securities
pursuant to employee benefit plans in effect prior to the Holdback Period and (iii) sell shares of
Common Stock or other securities in a transaction in which the purchaser agrees to be bound by the
restrictions contained in Section 4.8(a). The Company shall use its reasonable best
efforts to obtain and enforce similar agreements from any other Persons if requested by the
managing underwriter of such offering. Neither the Company nor such Persons shall be subject to
the restrictions set forth in this Section 4.8(b) for longer than 120 days during any
12-month period (or 180 days in the case of the 12-month period prior to the expiration of the
Holdback Period for the Qualified Public Offering).

     SECTION 4.9.   Existing Agreements. Notwithstanding anything to the contrary in this
Agreement, all of the rights and obligations of the parties hereto under this Agreement are subject
to and qualified by the rights of the Company’s securityholders under the Existing Agreements
(including as to priority and timing of registrations), and the Company’s compliance with the
Existing Agreements shall not constitute a violation of this Agreement; provided, that the
Company shall not amend any Existing Agreement in any manner detrimental in any material respect to
the New Investors’ rights hereunder without receiving the prior written consent of the New
Investors holding a majority of the Shares then held by all of the New Investors.

23

 

ARTICLE V

MISCELLANEOUS

     SECTION 5.1.   Amendments and Waivers. Except as otherwise provided herein, no
modification, amendment or waiver of any provision of this Agreement shall be effective without the
approval of the Company, the TW Agent, the MM Agent and holders of a majority of the Shares held by
the New Investors; provided, that the Company or any Shareholder may waive (in writing) the
benefit of any provision of this Agreement with respect to itself for any purpose. The failure of
any party to enforce any of the provisions of this Agreement shall in no way be construed as a
waiver of such provisions and shall not affect the right of such party thereafter to enforce each
and every provision of this Agreement in accordance with its terms.

     SECTION 5.2.   Successors, Assigns and Transferees. This Agreement shall bind and
inure to the benefit of and be enforceable by the parties hereto and their respective successors
and permitted assigns. Shareholders may assign their respective rights and obligations hereunder
to any Transferees only to the extent expressly provided herein.

     SECTION 5.3.   Legend. (a)  All certificates (if any) representing the Shares held by
each Shareholder shall bear a legend substantially in the following form:

     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 STATES
THAT THE SHARES MAY BE TRANSFERRED WITHOUT SUCH REGISTRATION.

     (b)   Upon (i) the Sale of any Shares pursuant to an effective registration statement under
the Securities Act or pursuant to Rule 144 or Rule 144A under the Securities Act or another
exemption from registration under the Securities Act (and such Shares cease to be subject to the
provisions hereof), (ii) upon the Transfer of any Shares pursuant to Section 2.1(c) hereof
or (iii) the termination of this Agreement, the certificates representing such Shares shall be
replaced, at the expense of the Company, with certificates or instruments not bearing the legends
required by this Section 5.3; provided, that the Company may condition such
replacement of certificates upon the receipt of an opinion of securities counsel reasonably
satisfactory to the Company.

     SECTION 5.4.   Notices. All notices and other communications hereunder shall be in
writing and delivered (i) personally, (ii) by overnight courier or (iii) facsimile (with a PDF or
other copy by electronic mail), and shall be deemed duly given on the date of delivery. All notices
hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be
designated in writing by the party to receive such notice.

24

 

	 	 	 	 	 
	 

	 	If to the Company or

SandRidge Principals
	 	SandRidge Energy, Inc.

1601 Northwest Expressway, Suite 1600

Oklahoma City, OK 73118

Attention: General Counsel

Facsimile No.: (405) 753- 5975

Email: bthompson@sdrge.com
	 
	 	 	 	 
	 

	 	with a copy to:

(which shall not

constitute notice)
	 	Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention: Robert E. Spatt, Esq.

                    Edward J. Chung, Esq.

Facsimile No.: (212) 455-2502

Email: rspatt@stblaw.com

Email: echung@stblaw.com
	 
	 	 	 	 
	 

	 	If to any New Investor
	 	As set forth on Schedule 1

     SECTION 5.5.   Further Assurances. At any time or from time to time after the date
hereof, the parties agree to cooperate with each other, and at the request of any other party, to
execute and deliver any further instruments or documents and to take all such further action as the
other party may reasonably request in order to evidence or effectuate the consummation of the
transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder.

     SECTION 5.6.   Entire Agreement. Except as otherwise expressly set forth herein, this
Agreement embodies the complete agreement and understanding among the parties hereto with respect
to the subject matter hereof and supersedes and preempts any prior understandings, agreements or
representations by or among the parties, written or oral, that may have related to the subject
matter hereof in any way; provided, that this Agreement does not supersede, preempt or
otherwise affect the Existing Agreements or any other shareholder agreements in effect between the
Company and any New Investor.

     SECTION 5.7.   Conflicting Agreements. Each party hereto represents to the other
parties hereto that such party has not granted and is not a party to any proxy, voting trust or
other agreement (other than the Existing Agreements) which is inconsistent with or conflicts with
any provision of this Agreement.

     SECTION 5.8.   Delays or Omissions. It is agreed that no delay or omission to
exercise any right, power or remedy accruing to any party, upon any breach, default or
noncompliance by another party under this Agreement, shall impair any such right, power or remedy,
nor shall it be construed to be a waiver of any such breach, default or noncompliance, or any
acquiescence therein, or of or in any similar breach, default or noncompliance thereafter

25

 

occurring. It is further agreed that any waiver, permit, consent or approval of any kind or
character on the part of any party hereto of any breach, default or noncompliance under this
Agreement or any waiver on such party’s part of any provisions or conditions of this Agreement,
must be in writing and shall be effective only to the extent specifically set forth in such
writing. All remedies, either under this Agreement, by law, or otherwise afforded to any party,
shall be cumulative and not alternative.

     SECTION 5.9.   Governing Law; Consent to Jurisdiction; Venue. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York. Each party hereto
agrees that it will bring any action or proceeding in respect of any claim arising out of or
related to this Agreement or the transactions contemplated hereby, whether in tort or contract or
at law or in equity, exclusively in the federal or state courts located in New York, New York (the
“Chosen Courts”). In addition, each party hereby (a) irrevocably submits to the exclusive
jurisdiction of the Chosen Courts, (b) waives, to the fullest extent permitted by applicable Law,
any objection to laying venue in the Chosen Court and agrees that it will not attempt to deny or
defeat such personal jurisdiction by motion or other request for leave from any such court, and (c)
waives any objection or defense that the Chosen Court is an inconvenient forum or does not have
personal jurisdiction over any party hereto. Each party hereto further agrees that, to the fullest
extent permitted by applicable Law, any final judgment in any such action or proceeding shall be
conclusive and may be enforced in any other jurisdiction within or outside the United States by
suit on the judgment. Further, each party hereto hereby waives all right to trial by jury in any
claim, action, proceeding or counterclaim by any party hereto on any matters arising out of or in
any way connected with this Agreement.

     SECTION 5.10.   Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other provision or any other jurisdiction, but this Agreement shall be
reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein.

     SECTION 5.11.   Enforcement. Each party hereto acknowledges that money damages would
not be an adequate remedy in the event that any of the covenants or agreements in this Agreement
are not performed in accordance with its terms, and it is therefore agreed that in addition to and
without limiting any other remedy or right it may have, the non-breaching party will have the right
to an injunction, temporary restraining order or other equitable relief in any court of competent
jurisdiction enjoining any such breach and enforcing specifically the terms and provisions hereof.

     SECTION 5.12.   Agents for Shareholders. (a)  Tom Ward or another Person named in any
written notice to the other parties hereto after the date hereof and signed by Tom Ward and all of
his Permitted Transferees (the “TW Agent”) shall act as the sole agent for Tom Ward and
each of his Permitted Transferees and shall be authorized to exercise all rights of Tom Ward and
his Permitted Transferees hereunder. The TW Agent shall have sole power and authority to take any
action on behalf of Tom Ward and his Permitted Transferees pursuant to this Agreement, including
delivering any notice or granting any waiver or consent hereunder,

26

 

and each party hereto shall be entitled to rely on any action taken by the TW Agent as being
taken on behalf of Tom Ward or any of his Permitted Transferees. Any notice required to be
delivered hereunder to Tom Ward or any of his Permitted Transferees shall be delivered to the TW
Agent.

     (b)   Malone Mitchell or another Person named in any written notice to the other parties
hereto after the date hereof and signed by Malone Mitchell and all of his Permitted Transferees
(the “MM Agent”) shall act as the sole agent for Malone Mitchell and each of his Permitted
Transferees and shall be authorized to exercise all rights of Malone Mitchell and his Permitted
Transferees hereunder. The MM Agent shall have sole power and authority to take any action on
behalf of Malone Mitchell and his Permitted Transferees pursuant to this Agreement, including
delivering any notice or granting any waiver or consent hereunder, and each party hereto shall be
entitled to rely on any action taken by the MM Agent as being taken on behalf of Malone Mitchell or
any of his Permitted Transferees. Any notice required to be delivered hereunder to Malone Mitchell
or any of his Permitted Transferees shall be delivered to the MM Agent.

     SECTION 5.13.   Titles and Subtitles. The titles of the sections and subsections of
this Agreement are for convenience of reference only and are not to be considered in construing
this Agreement.

     SECTION 5.14.   Counterparts; Facsimile Signatures. 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 instrument. This Agreement may be executed by facsimile signature(s).

     SECTION 5.15.   Capitalization. The Company represents and warrants to the New
Investors that as of the date hereof, 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, 2,184,288 of which are issued as of the date of this Agreement, and
(ii) 400,000,000 shares of Common Stock, 109,252,493 of which are issued as of the date hereof.
Except for warrants issued as part of the Common Units issued pursuant to the November 21, 2006
Securities Purchase Agreement (the “2006 Securities Purchase Agreement”), 434,762 shares of
Preferred Stock issuable upon the exchange of the Common Units issued pursuant to the 2006
Securities Purchase Agreement (based on an Accreted Value of $210.00 per share of Preferred Stock
and assuming the surrender of 4,805,264 shares of Common Stock) and 22,275,881 shares of Common
Stock issuable upon conversion of the shares of Preferred Stock issued pursuant to the 2006
Securities Purchase Agreement (based on a Conversion Price of $20.5918 per share of Preferred
Stock), as of the date hereof, 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 of its
capital stock or other security. Capitalized terms used but not defined in this Section 5.15 shall
have the meanings assigned to them in the 2006 Securities Purchase Agreement.

27

 

     SECTION 5.16.   Waiver; Other Agreements. (a)  Each of Tom Ward and Malone Mitchell
hereby waives his rights pursuant to Section 2.1(a)(iii) of the Original Shareholders
Agreement.

     (b)   (i) Until such time as the tag-along rights provided herein expire in accordance with
Section 2.2(e), (A) Ares hereby waives its rights pursuant to Section 2.1 of the
Shareholders Agreement, dated March 20, 2007, by and among the Company, Ares and the other parties
listed on the signature pages thereto, and held by Ares as of such date, and (B) agrees that its
“tag-along” rights with respect to all of the Additional Ares Shares shall be governed solely by
this Agreement; (ii) Ares hereby waives its rights pursuant to Section 3(g) of the Registration
Rights Agreement, dated March 20, 2007, by and among the Company and the purchasers set forth
therein (the “Ares Reg Rights Agreement); and (iii) Ares hereby acknowledges and agrees
that it may only exercise its “piggyback registration rights” for Piggyback Ares Shares either
pursuant to (x) Section 3 of the Ares Reg Rights Agreement or (y) Article IV herein, but
not under both agreements.

[Remainder of page intentionally left blank]

28

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated
Shareholders Agreement as of the date set forth in the first paragraph hereof.

	 	 	 	 	 
	 	SANDRIDGE ENERGY, INC.

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

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	 	 
	 	  	/s/
Tom L. Ward	 
	 	 	TOM L. WARD 	 
	 	 	 	 
	 
	 	192 INVESTMENTS, LLC

 	 
	 	By:  	/s/
Bill Blaik	 
	 	 	Name:  	Bill Blaik	 
	 	 	Title:  	Manager	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	 	 
	 	  	/s/
N. Malone Mitchell, 3rd	 
	 	 	N. MALONE MITCHELL, 3RD 	 
	 	 	 	 
	 
	 	 	 
	 	  	/s/
Amy Mitchell	 
	 	 	AMY MITCHELL 	 
	 	 	 	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	 	 
	 	  	/s/ Alexandria Nicole Mitchell	 
	 	 	ALEXANDRIA NICOLE MITCHELL 	 
	 	 	 	 
	 
	 	 	 
	 	  	/s/
N. Malone Mitchell, 3rd	 
	 	 	N. MALONE MITCHELL 3RD, as custodian for 	 
	 	 	Noah Malone Mitchell 4th, under the Texas
Uniform Transfer to Minors Act 	 
	 
	 	 	 
	 	  	/s/
N. Malone Mitchell, 3rd	 
	 	 	N. MALONE MITCHELL 3RD, as custodian for 	 
	 	 	Stevenson Briggs Mitchell under the Texas Uniform
transfer to Minors Act 	 
	 
	 	 	 
	 	  	/s/
N. Malone Mitchell, 3rd	 
	 	 	N. MALONE MITCHELL 3RD  as custodian for 	 
	 	 	Elizabeth Lee Mitchell 	 
	 
	 	 	 
	 	  	/s/
Barbara Pope	 
	 	 	BARBARA POPE, as Trustee for the Malone Mitchell, 3rd GRAT #2005 for Alexandria Nicole Mitchell 	 
	 
	 	 	 
	 	  	/s/
Barbara Pope	 
	 	 	BARBARA POPE, as Trustee for the Amy E. Mitchell GRAT #2005 for Alexandria Nicole Mitchell 	 
	 
	 	 	 
	 	  	/s/
Barbara Pope	 
	 	 	BARBARA POPE, as Trustee for the Malone Mitchell, 3rd GRAT
#2005 for Noah Malone Mitchell, 4th 	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	 	 
	 	  	/s/
Barbara Pope	 
	 	 	BARBARA POPE, as Trustee for the Amy E. Mitchell GRAT #2005
for Noah Malone Mitchell, 4th 	 
	 
	 	 	 
	 	  	/s/
Barbara Pope	 
	 	 	BARBARA POPE, as Trustee for the Malone Mitchell, 3rd GRAT
#2005 for Stevenson Briggs Mitchell 	 
	 
	 	 	 
	 	  	/s/
Barbara Pope	 
	 	 	BARBARA POPE, as Trustee for the Amy E. Mitchell GRAT #2005
for Stevenson Briggs Mitchell 	 
	 
	 	 	 
	 	  	/s/
Barbara Pope	 
	 	 	BARBARA POPE, as Trustee for the Malone Mitchell, 3rd GRAT
#2005 for Elizabeth Lee Mitchell 	 
	 
	 	 	 
	 	  	/s/
Barbara Pope	 
	 	 	BARBARA POPE, as Trustee for the Amy E. Mitchell GRAT #2005
for Elizabeth Lee Mitchell 	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	New Investors

FARALLON CAPITAL PARTNERS, L.P.

 	 
	 	By:  	Farallon Partners, L.L.C.,
 	 
	 	 	its General Partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ Monica R. Landry
 	 
	 	 	Name:  	Monica R. Landry 	 
	 	 	Title:  	Managing Member 	 
	 
	 	FARALLON CAPITAL INSTITUTIONAL

PARTNERS, L.P.

 	 
	 	By:  	Farallon Partners, L.L.C.,
 	 
	 	 	its General Partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ Monica R. Landry
 	 
	 	 	Name:  	Monica R. Landry 	 
	 	 	Title:  	Managing Member 	 
	 
	 	FARALLON CAPITAL INSTITUTIONAL

PARTNERS II, L.P.

 	 
	 	By:  	Farallon Partners, L.L.C.,
 	 
	 	 	its General Partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ Monica R. Landry
 	 
	 	 	Name:  	Monica R. Landry 	 
	 	 	Title:  	Managing Member 	 
	 
	 	FARALLON CAPITAL INSTITUTIONAL

PARTNERS III, L.P.

 	 
	 	By:  	Farallon Partners, L.L.C.,
 	 
	 	 	its General Partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ Monica R. Landry
 	 
	 	 	Name:  	Monica R. Landry 	 
	 	 	Title:  	Managing Member 	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	TINICUM PARTNERS, L.P.

 	 
	 	By:  	Farallon Partners, L.L.C.,
 	 
	 	 	its General Partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ Monica R. Landry
 	 
	 	 	Name:  	Monica R. Landry 	 
	 	 	Title:  	Managing Member 	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	ARES CORPORATE OPPORTUNITIES FUND II, L.P.

 	 
	 	By:  	ACOF OPERATING MANAGER II, L.P.,
its Manager

 	 
	 	By:  	/s/ Jeffrey Serota
 	 
	 	 	Name:  	Jeffrey Serota 	 
	 	 	Title:  	Vice President 	 
	 
	 	ARES SANDRIDGE, L.P.

 	 
	 	By:  	ACOF OPERATING MANAGER II, L.P.,
its Manager

 	 
	 	By:  	/s/ Jeffrey Serota 	 
	 	 	Name:  	Jeffrey Serota 	 
	 	 	Title:  	Vice President 	 
	 
	 	ARES SANDRIDGE 892 INVESTORS, L.P.

 	 
	 	By:  	ACOF OPERATING MANAGER II, L.P.,
its Manager

 	 
	 	By:  	/s/ Jeffrey Serota 	 
	 	 	Name:  	Jeffrey Serota 	 
	 	 	Title:  	Vice President 	 
	 
	 	ARES SANDRIDGE CO-INVEST LLC

 	 
	 	By:  	ARES MANAGEMENT LLC,
its Manager

 	 
	 	By:  	/s/ Jeffrey Serota 	 
	 	 	Name:  	Jeffrey Serota 	 
	 	 	Title:  	Vice President 	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	TLW PROPERTIES, L.L.C.

 	 
	 	By:  	/s/ Tom L. Ward 	 
	 	 	Name:  	Tom L. Ward 	 
	 	 	Title:  	Manager 	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	GSO ORIGINATION FUNDING PARTNERS LP

 	 
	 	By:  	/s/ George Fan 	 
	 	 	Name:  	George Fan 	 
	 	 	Title:  	Managing Director 	 
	 
	 	GSO SPECIAL SITUATIONS FUND LP

 	 
	 	By:  	/s/ George Fan 	 
	 	 	Name:  	George Fan 	 
	 	 	Title:  	Managing Director 	 
	 
	 	GSO SPECIAL SITUATIONS OVERSEAS FUND LTD.

 	 
	 	By:  	/s/ George Fan 	 
	 	 	Name:  	George Fan 	 
	 	 	Title:  	Managing Director 	 
	 
	 	GSO CREDIT OPPORTUNITIES FUND (HELIOS), L.P.

 	 
	 	By:  	/s/ George Fan 	 
	 	 	Name:  	George Fan 	 
	 	 	Title:  	Managing Director 	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	SANKATY CREDIT OPPORTUNITIES II, L.P.

 	 
	 	By:  	/s/ Jeffrey Hawkins 	 
	 	 	Name:  	Jeffrey Hawkins 	 
	 	 	Title:  	Chief Administrative Officer
Executive Vice
President 	 
	 
	 	SANKATY CREDIT OPPORTUNITIES III, L.P.

 	 
	 	By:  	/s/ Jeffrey Hawkins 	 
	 	 	Name:  	Jeffrey Hawkins 	 
	 	 	Title:  	Chief Administrative Officer
Executive Vice
President 	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	DB INVESTMENT PARTNERS, INC.

 	 
	 	By:  	/s/ Michael
Thomas Iben 	 
	 	 	Name:  	Michael Thomas Iben 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	
/s/ Helmut Mannhardt
 	 
	 	 	Name:  	Helmut Mannhardt 	 
	 	 	Title:  	Vice President 	 
	 

[Amended and Restated Shareholders Agreement Signature Page]

 

 

	 	 	 	 	 
	 	SOLAR CAPITAL LLC

 	 
	 	By:  	/s/
Bruce Spohler	 
	 	 	Name:  	Bruce Spohler	 
	 	 	Title:  	Senior Vice President	 
	 

 

 

Exhibit A

ASSIGNMENT AND ASSUMPTION AGREEMENT

     Pursuant to the Shareholders Agreement, dated as of ___, ___and (the
“Shareholders Agreement”), among SandRidge Energy, Inc., a Delaware corporation (the
“Company”), and each of the Shareholders of the Company whose name appears on the signature
pages listed therein (each, a “Shareholder” and collectively, the “Shareholders”),
___, (the “Transferor”) hereby assigns to the undersigned the rights that may be
assigned thereunder with respect to the Shares so Transferred, and the undersigned hereby agrees
that, having acquired Shares as permitted by the terms of the Shareholders Agreement, the
undersigned shall assume the obligations of the Transferor under the Shareholders Agreement with
respect to the Shares so Transferred. Capitalized terms used but not defined herein shall have the
meanings assigned to them in the Shareholders Agreement.

     Listed below is information regarding the Shares:

	 
	Number of shares of
	Common Stock
	 

     IN WITNESS WHEREOF, the undersigned has executed this Assumption Agreement as of ___
___, 20___.

	 	 	 	 	 
	 	[NAME OF TRANSFEREE]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged by:

	 	 	 	 	 
	SANDRIDGE ENERGY, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

 

Exhibit B

CERTIFICATE

     ___hereby certify, represent, warrant and agree, pursuant to Section
2.1(d)(2) of the Shareholders Agreement dated as of November 21, 2006 (the
“Agreement”), among SandRidge Energy, Inc. and the Shareholders party thereto, as follows:

	 	(1)	 	___and/or one or more affiliates of the foregoing (collectively, the
“Borrower”) are contemplating entering into a financing transaction as
generally described on Schedule I attached hereto (the “Financing”).
	 
	 	(2)	 	In connection with the Financing, the Borrower intends to make pledges,
hypothecations or encumbrances (collectively, the “Pledges”) as contemplated in
Section 2.1(d)(2) of the Agreement.
	 
	 	(3)	 	The Financing and the Pledges are bona fide.
	 
	 	(4)	 	This certificate constitutes a legal, valid and binding obligation of ___.

[Signature block of New Investor]

 

 

Schedule 1

NOTICE INSTRUCTIONS

Farallon Capital Partners, L.P.

Farallon Capital Institutional Partners, L.P.

Farallon Capital Institutional Partners II, L.P.

Farallon Capital Institutional Partners III, L.P.

Tinicum Partners, L.P.

c/o Farallon Capital Management, L.L.C.

One Maritime Plaza, Suite 2100

San Francisco, California 94111

Attention: Kristen Biniek and Colby Clark

Telephone: (415) 421-2132

Facsimile: (415) 421-1121

Ares Corporate Opportunities Fund II, L.P.

Ares SandRidge, L.P.

Ares SandRidge 892 Investors, L.P.

Ares SandRidge Co-Invest LLC

c/o 1999 Avenue of the Stars, Suite 1900

Los Angeles, CA 90067

Attention:Jeffrey Serota

Facsimile:(310) 201-4157

			
	     w/ a copy to:	 	Sullivan & Cromwell LLP

1888 Century Park East

Los Angeles, California 90067-1725

Attention: Alison S. Ressler, Esq.

                    Patrick S. Brown, Esq.

Facsimile No.: (310) 712-8800

GSO Origination Funding Partners LP

GSO Special Situations Fund LP

GSO Special Situations Overseas Fund Ltd.

GSO Credit Opportunities Fund (Helios), L.P.

280 Park Ave, Eleventh Floor

New York, New York 10017

Attention: George Fan

Telephone: (212) 503-2100

Facsimile: (212) 503-6924

Sankaty Credit Opportunities II, L.P.

 

 

Sankaty Credit Opportunities III, L.P.

111 Huntington Avenue

Boston, MA 02110

Attention: Rob Cunjak

Telephone: (617) 516-2000

Facsimile: (617) 516-2010

DB Investment Partners, Inc.

60 Wall Street

New York, NY 10005

Attention: Tom Iben

Telephone: (212) 250-5493

E-mail: michael.t.iben@db.com

			
	     w/ a copy to:	 	DB Investment Partners, Inc.

700 Louisiana St., Suite 1500

Houston, TX 77002

Attention: Zach Jordan

Telephone: (832) 239-4660

E-mail: zach.jordan@db.com

Solar Capital LLC

500 Park Avenue, 5th Floor

New York, NY 10022

Attention: Chief Financial Officer

Telephone: (212) 993-1670

Facsimile: (212) 993-1699

E-mail: solarnotices@magnetar.com

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