Exhibit 10.25

 

TERMINATION AND RELEASE OF IRREVOCABLE CONTRACT GUARANTEE

 

THIS TERMINATION AND RELEASE OF IRREVOCABLE CONTRACT GUARANTEE (this “Release”)
is made and entered into as of December 9, 2009, by and among C/R Cobalt
Investment Partnership, L.P., C/R Energy Coinvestment II, L.P., Riverstone
Energy Coinvestment III, L.P., C/R Energy III Cobalt Partnership, L.P.,
Carlyle/Riverstone Global Energy and Power Fund III, L.P., Carlyle Energy
Coinvestment III, L.P., First Reserve Fund XI, L.P., FR XI Onshore AIV, L.P., GS
Capital Partners VI Fund, L.P., GS Capital Partners VI Offshore Fund, L.P., GS
Capital Partners V Fund, L.P., GS Capital Partners V Offshore Fund, L.P., KERN
Energy Partners I LP, KERN Energy Partners I U.S., LP, KERN Energy Partners II
LP, KERN Energy Partners II U.S., LP, Caisse de Dépôt et Placement du Québec,
and The Board of Trustees of the Leland Stanford Junior University (each a
“Guarantor” and collectively, the “Guarantors”) and ENSCO Offshore Company, a
Delaware corporation (the “Contractor”).

 

W I T N E S S E T H:

 

WHEREAS, the Guarantors entered into that certain Irrevocable Contract
Guarantee, dated as of May 5, 2008 (the “Guarantee”), in favor of the
Contractor, pursuant to which, as a condition to the Contractor’s entry into
that certain Offshore Daywork Drilling Contract, dated as of May 5, 2008 (the
“Rig Agreement”),  with Cobalt International Energy, L.P. (the “Operator”), the
Guarantors guaranteed certain payment obligations of the Operator to the
Contractor under the Rig Agreement (any and all obligations of each Guarantor
under the Guarantee, the “Obligations”);

 

WHEREAS, the Operator is proposing to effect the sale of shares of common stock
of a newly formed corporation, that will wholly own the Operator, to the public
in an initial public offering (the “IPO”);

 

WHEREAS, pursuant to Section 8 of the Guarantee, each Guarantor is required to
be released from the Guarantee and its Obligations upon receipt by the
Contractor of reasonable substitute credit support reasonably acceptable to the
Contractor in the amount of the remaining Obligations of such Guarantor;

 

WHEREAS, the Operator, the Contractor and JPMorgan Chase Bank, N.A., as escrow
agent, have entered into an escrow agreement (the “Escrow Agreement”) pursuant
to which the Operator will deposit $186,000,000 in escrow in accordance with the
terms of the Escrow Agreement (such escrow arrangement, the “Substitute Credit
Support”);

 

WHEREAS, the Contractor agrees and acknowledges that the Substitute Credit
Support is a reasonable substitute credit support for the remaining Obligations
as required pursuant to Section 8 of the Guarantee; and

 

WHEREAS, the Contractor hereby agrees to release the Guarantors from their
Obligations under the Guarantee and terminate the Guarantee, effective upon the

 

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deposit of $186,000,000 by the Operator into an escrow account in accordance
with the terms of the Escrow Agreement, on the terms set forth in this Release.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Release.  In consideration of and effective upon the deposit of
$186,000,000 by the Operator into an escrow account in accordance with the terms
of the Escrow Agreement, the Contractor (on behalf of itself and its successors
and assigns) hereby fully and forever releases, discharges and acquits each of
the Guarantors (and their respective subsidiaries, affiliates, past and present
officers, directors, partners, attorneys, employees, agents, and each of their
assigns and their respective predecessors and successors in interest) from the
Guarantee and its Obligations (including any and all obligations, liabilities,
claims, demands, actions, covenants, and debts of any kind or nature arising out
of or relating to the Guarantee).

 

2.             Termination.  The Guarantee is hereby terminated as of the
deposit of $186,000,000 by the Operator into an escrow account in accordance
with the terms of the Escrow Agreement and, upon such termination, the
Guarantors shall have no further liabilities or obligations thereunder.

 

3.             Entire Agreement.  This Release contains the complete, exclusive
and final agreement between the Contractor and the Guarantors and supersedes any
and all prior agreements, arrangements or understandings between the Contractor
and the Guarantors relating to the subject matter hereof.  No oral
understandings, statements, promises or inducements contrary to the terms of
this Release exist.  This Release may be modified only upon the written
agreement of the Contractor and the Guarantors.

 

4.             Counterparts.  This Release may be executed by facsimile or in
one or more counterparts, all of which together shall constitute one and the
same agreement.

 

5.             Governing Law.  This Release and the rights and obligations of
the parties hereto shall be governed by and construed and enforced in accordance
with the laws of the State of New York excluding any conflict-of-laws rule or
principle (whether of New York or any other jurisdiction) that might refer the
governance or the construction of this Release to the law of another
jurisdiction.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Release to be executed
as of the date set forth above.

 

 

 

ENSCO Offshore Company

 

 

 

 

 

By:

/s/ Michael Howe

 

Name:

Michael Howe

 

Title:

Treasurer

 

[Signature Page to Termination and Release of Irrevocable Contract Guarantee]

 

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C/R Cobalt Investment Partnership, L.P.

 

By: Carlyle/Riverstone Energy Partners II, L.P.,

 

its general partner

 

By: C/R Energy GP II, LLC, its general partner

 

 

 

 

 

By:

/s/ Pierre Lapeyre

 

Name:

Pierre Lapeyre

 

Title:

Managing Director

 

 

 

 

 

C/R Energy Coinvestment II, L.P.

 

By: Carlyle/Riverstone Energy Partners II, L.P.

 

By: C/R Energy GP II, LLC

 

 

 

 

 

By:

/s/ Pierre Lapeyre

 

Name:

Pierre Lapeyre

 

Title:

Managing Director

 

 

 

 

 

Riverstone Energy Coinvestment III, L.P.

 

By: Riverstone Coinvestment GP, LLC

 

By: Riverstone Holdings, LLC

 

 

 

 

 

By:

/s/ Pierre Lapeyre

 

Name:

Pierre Lapeyre

 

Title:

Managing Director

 

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C/R Energy III Cobalt Partnership, L.P.

 

By: Carlyle/Riverstone Energy Partners III, L.P.,
its general partner

 

By: C/R Energy GP III, LLC, its general partner

 

 

 

 

 

By:

/s/ Pierre Lapeyre

 

Name:

Pierre Lapeyre

 

Title:

Managing Director

 

 

 

 

 

Carlyle/Riverstone Global Energy and Power Fund III, L.P.

 

By: Carlyle/Riverstone Energy Partners III, L.P.,
its general partner

 

By: C/R Energy GP III, LLC, its general partner

 

 

 

By:

/s/ Pierre Lapeyre

 

Name:

Pierre Lapeyre

 

Title:

Managing Director

 

 

 

 

 

Carlyle Energy Coinvestment III, L.P.

 

By: Carlyle Energy Coinvestment III GP, L.L.C.

 

By: TCG Holdings, L.L.C.

 

 

 

 

 

By:

/s/ Daniel A. D’Aniello

 

Name:

Daniel A. D’Aniello

 

Title:

Managing Director

 

[Signature Page to Termination and Release of Irrevocable Contract Guarantee]

 

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GS Capital Partners VI Fund, L.P.

 

By: GSCP VI Advisors, L.L.C.

 

its general partner

 

 

 

 

 

By:

/s/ Ken Pontarelli

 

Name:

Ken Pontarelli

 

Title:

Managing Director

 

 

 

 

 

 

 

GS Capital Partners VI Offshore Fund, L.P.

 

By: GSCP VI Offshore Advisors, L.L.C.

 

its general partner

 

 

 

 

 

By:

/s/ Ken Pontarelli

 

Name:

Ken Pontarelli

 

Title:

Managing Director

 

 

 

 

 

 

 

GS Capital Partners V Fund, L.P.

 

By: GSCP V Advisors, L.L.C.

 

its general partner

 

 

 

 

 

By:

/s/ Ken Pontarelli

 

Name:

Ken Pontarelli

 

Title:

Managing Director

 

 

 

 

 

GS Capital Partners V Offshore Fund, L.P.

 

By: GSCP V Offshore Advisors, L.L.C.

 

its general partner

 

 

 

 

 

By:

/s/ Ken Pontarelli

 

Name:

Ken Pontarelli

 

Title:

Managing Director

 

[Signature Page to Termination and Release of Irrevocable Contract Guarantee]

 

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First Reserve Fund XI, L.P.

 

By: First Reserve GP XI, L.P.,

 

its general partner

 

By: First Reserve GP XI, Inc.,

 

its general partner

 

 

 

 

 

By:

/s/ J. Hardy Murchison

 

Name:

J. Hardy Murchison

 

Title:

Managing Director

 

 

 

 

 

 

 

FR XI Onshore AIV, L.P.

 

By: First Reserve GP XI, L.P.,

 

its general partner

 

By: First Reserve GP XI, Inc.,

 

its general partner

 

 

 

 

 

By:

/s/ J. Hardy Murchison

 

Name:

J. Hardy Murchison

 

Title:

Managing Director

 

[Signature Page to Termination and Release of Irrevocable Contract Guarantee]

 

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KERN Energy Partners I LP

 

By: KERN Energy Partners Management Ltd.,

 

its general partner

 

 

 

 

 

By:

/s/ Jeff van Steenbergen

 

Name:

Jeff van Steenbergen

 

Title:

Director

 

 

 

 

 

 

 

KERN Energy Partners I U.S., LP

 

By: KERN Energy Partners Management Ltd.,

 

its general partner

 

 

 

 

 

By:

/s/ Jeff van Steenbergen

 

Name:

Jeff van Steenbergen

 

Title:

Director

 

 

 

 

 

 

 

KERN Energy Partners II U.S., LP

 

By: KERN Energy Partners Management Ltd.,

 

its general partner

 

 

 

 

 

By:

/s/ Jeff van Steenbergen

 

Name:

Jeff van Steenbergen

 

Title:

Director

 

 

 

 

 

 

 

KERN Energy Partners II LP

 

By: KERN Energy Partners Management Ltd.,

 

its general partner

 

 

 

 

 

By:

/s/ Jeff van Steenbergen

 

Name:

Jeff van Steenbergen

 

Title:

Director

 

[Signature Page to Termination and Release of Irrevocable Contract Guarantee]

 

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Caisse de Dépôt et Placement du Québec

 

 

 

By:

/s/ Pierre Lambert

 

Name:

Pierre Lambert

 

Title:

Directeur Investissements

 

 

 

 

 

 

 

By:

/s/ Cyrille Vittecoq

 

Name:

Cyrille Vittecoq

 

Title:

Vice-President, Investments

 

 

 

 

 

 

 

The Board of Trustees of the Leland Stanford Junior University

 

 

 

By: Stanford Management Company, a division

 

 

 

 

 

By:

/s/ Mark H. Heyes, PhD.

 

Name:

Mark H. Heyes, PhD.

 

Title:

Director Natural Resources Investments

 

[Signature Page to Termination and Release of Irrevocable Contract Guarantee]

 

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