Document:

Exhibit 10.6

 

GUARANTY

 

GUARANTY, dated as of [•], 2005 (as
amended, modified or supplemented from time to time, this “Guaranty”),
made by Overseas Shipholding Group, Inc., a Delaware corporation (the “Guarantor”),
in favor of Double Hull Tankers, Inc. (“DHT”) and its vessel owning
subsidiaries listed on Schedule I hereto (each, an “Owner”).

 

RECITALS

 

WHEREAS, each Owner and subsidiaries of the Guarantor
listed on Schedule I hereto (the “Charterers”) are entering into
Time Charter Parties on the date hereof (as amended from time to time, each a “Charter”)
pursuant to which each of the Charterers will agree to time charter the vessel
owned by one of the Owners, as specified on Schedule I (the “Vessels”);

 

WHEREAS, DHT, the Charterers and OSG International, Inc.
(“OIN”) are entering into that certain Charter Framework Agreement (the “CFA”)
dated the date hereof;

 

WHEREAS, the Charterers and OIN are wholly owned
subsidiaries of Guarantor; and

 

WHEREAS, in order to induce each Owner to enter into
its Charter with the applicable Charterer and to induce DHT to enter into the
Charter Framework Agreement, Guarantor desires to execute this Agreement to
guarantee the Charterers’ payment obligations under the Charters and OIN’s
payment obligations under the CFA.

 

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

 

Guaranty.  The Guarantor, as primary obligor and not
merely as surety, hereby irrevocably, unconditionally and absolutely severally
guarantees to each Owner the due and punctual payment of the charterhire
payments due to such Owner under its Charter with the applicable Charterer.  In addition, the Guarantor, as primary
obligor and not merely as surety, hereby irrevocably, unconditionally and
absolutely severally guarantees to DHT the due and punctual payment of the
charterhire payments due to DHT under the CFA. 
All such payment obligations and liabilities referred to in the previous
two sentences are herein collectively called the “Guaranteed Obligations”.  In case of failure of a Charterer or OIN
punctually to pay any of the amounts necessary to satisfy the Guaranteed
Obligations, the Guarantor shall cause such amounts to be paid punctually when
and as the same shall become due and payable as if such payment were made by
such Charterer or OIN.  The Guarantor
also shall pay any and all expenses (including, without limitation, reasonable
attorneys’ fees and expenses) incurred by the 

 

 

applicable Owner or DHT
in enforcing its rights under this Guaranty provided that such Owner or DHT is
successful in enforcing its rights hereunder.

 

Unconditional Obligations.  The obligation of the Guarantor to guarantee
the Guaranteed Obligations set forth in Section 1 above shall be absolute
and unconditional irrespective of (i) any lack of enforceability against
the Charterers or OIN of the Guaranteed Obligations, (ii) any change of
the time, manner or place of payment, or any other term, of the Guaranteed
Obligations, (iii) the failure, omission, delay or lack on the part of an
Owner or DHT to assert any claim or demand or to enforce any right or remedy
against the Guarantor, any Charterer or OIN, (iv) any reduction,
limitation, impairment or termination of the Guaranteed Obligations for any
reason, including any claim of waiver, release, surrender, alteration or
compromise, (v) any invalidity, illegality or unenforceability in whole or
in part of any Charter or the CFA and (vi) any law, regulation or order of
any jurisdiction affecting any term of the Guaranteed Obligations or an Owner’s
or DHT’s rights with respect thereto. 
The Guarantor hereby waives promptness, diligence, protest, demand of
payment and notices with respect to the Guaranteed Obligations and any
requirement that an Owner or DHT exhaust any right or take any action against a
Charterer or OIN.  Notwithstanding
anything in this Guaranty to the contrary, the Guarantor shall be entitled to
the benefit of any right to or claim of any defense, setoff, counterclaim,
recoupment or termination to which a Charterer or OIN is entitled other than
those referred to in clause (v) of this Section 2.

 

Nature of Guaranteed Obligations.  (a)The Guarantor hereby agrees that this
Guaranty is a guaranty of payment and performance and not of collection only.

 

Any and all payments by the Guarantor under the
Guaranteed Obligations shall be made free and clear of, and without deduction
or withholding for or on account of, any and all taxes, monetary transfer fees
or other amounts except to the extent such deduction or withholding of any tax
is required by applicable law.  If the
Guarantor shall be required by applicable law to deduct or withhold any tax or
other amount from or in respect of any sum payable hereunder to or for the
benefit of an Owner or DHT, to the extent the amount to be received from the
Guarantor after such withholding is less than the amount that would have been
received from the applicable Owner or DHT, the Guarantor shall pay to the
Charterer such additional amount as shall be necessary to enable the Charterer
to receive, after such withholding (including any withholding with respect to
such additional amount), the amount it would have received if such withholding
had not been required.

 

Insolvency.  This Guaranty shall continue to be effective,
or be reinstated, as the case may be, if at any time payment, in whole or in
part of any of the Guaranteed Obligations is rescinded or must otherwise be
restored or returned by a Charterer upon the bankruptcy, insolvency,
reorganization, arrangements, adjustment, composition, dissolution,
liquidation, or the like, of any Charterer, OIN or the Guarantor, or as a
result of the appointment of a custodian, receiver, trustee, or other officer
with similar powers with respect to any Charterer, OIN or the Guarantor or any
substantial part of either person’s respective property, or otherwise, all as
though such payment had not been made notwithstanding any termination of this
Guaranty, the applicable Charter or the CFA.

 

2

 

Representations and Warranties of the Guarantor.  The Guarantor hereby represents and warrants
to the Owners and DHT that this Guaranty has been duly executed and delivered
by the Guarantor and constitutes a valid and binding obligation of the
Guarantor, enforceable against the Guarantor in accordance with its terms.

 

Waivers and Amendments; Non-Contractual Remedies;
Preservation of Remedies. 
This Guaranty may be amended, superseded, canceled, renewed or extended,
and the terms hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance.  No delay on the part of any party on
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any party of any right, power or
privilege, nor any single or partial exercise of any such right, power or
privilege, preclude any further exercise thereof or the exercise of any other
such right, power or privilege.  The
rights and remedies herein provided are cumulative and are not exclusive of any
rights or remedies that any party may otherwise have at law or in equity.

 

Governing Law.  This Guaranty shall be construed, performed
and enforced in accordance with the same laws and in the same manner as is set
forth in the applicable Charter or the CFA, as the case may be.

 

Notices.  All notices, requests, demands and other
communications under this Guaranty must be delivered in the same manner as set
forth in the applicable Charter or the CFA, as the case may be.

 

Counterparts.  This Guaranty may be executed by the parties
hereto in counterparts, each of which, when so executed and delivered, shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

 

Assignment; Binding Effect.  This Guaranty shall be binding upon the
Guarantor and its successors, permitted assigns and legal representatives and
shall inure to the benefit of each Owner and DHT and their successors,
permitted assigns and legal representatives. 
This Guaranty and any rights of either party hereunder, may not be
assigned, directly or indirectly, without the prior written consent of the
other party (which consent may be withheld at the sole discretion of such other
party), provided that each Charterer may assign its rights hereunder as
security to its lenders.  Any assignment
in violation of this Section 11 shall be void and shall have no force and
effect, it being understood for the avoidance of doubt that in the event that a
party shall merge or consolidate with or into another entity or enter into a
business combination or other similar transaction with another entity, such
transaction shall constitute an assignment.

 

No Third-Party Beneficiaries.  Nothing in this Guaranty will confer any
rights or benefits upon any person or entity other than the Owners and DHT and
a successor or permitted assignee of any Owner or DHT.

 

Negotiated Agreement.  This Guaranty has been negotiated by the
parties and the fact that the initial and final draft will have been prepared
by either party or an 

 

3

 

intermediary will not
give rise to any presumption for or against any party to this Guaranty or be
used in any respect or forum in the construction or interpretation of this
Guaranty or any of its provisions.

 

Severability.  If any provision of this Guaranty is held to
be void or unenforceable, in whole or in part, (i) such holding shall not
affect the validity and enforceability of the remainder of this Guaranty,
including any other provision, paragraph or subparagraph and (ii) the
parties agree to attempt in good faith to reform such void or unenforceable
provision to the extent necessary to render such provision enforceable and to
carry out its original intent.

 

IN WITNESS WHEREOF, the Guarantor has caused this
Guaranty to be executed on its behalf by its officer thereunto duly authorized
on the date first above written.

 

	
   

  	
  OVERSEAS
  SHIPHOLDING 

  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  [•]

  	
   

  
	
   

  	
   

  	
  Name:

  	
  [•]

  
	
   

  	
   

  	
  Title:

  	
  [•]

  
					

 

Accepted and Agreed to this

 

[    ] day of [•], 2005

 

[OWNERS + DHT]

 

 

	
  By:

  	
  /s/ [•]

  	
   

  
	
   

  	
   Name:

  	
  [•]

  
	
   

  	
   Title:

  	
  [•]

  
				

 

4

 

SCHEDULE I

 

	
   

  	
   

  	
  Owners:

  	
   

  	
  Charterer:

  	
   

  	
  Vessel

  
	
  1.

  	
   

  	
  Ann Tanker Corporation

  	
   

  	
  DHT Ann VLCC Corp.

  	
   

  	
  Overseas Ann

  
	
  2.

  	
   

  	
  Chris Tanker Corporation

  	
   

  	
  DHT Chris VLCC Corp.

  	
   

  	
  Overseas Chris

  
	
  3.

  	
   

  	
  Regal Unity Tanker Corporation

  	
   

  	
  DHT Regal Unity VLCC Corp.

  	
   

  	
  Regal Unity

  
	
  4.

  	
   

  	
  Cathy Tanker Corporation

  	
   

  	
  DHT Cathy Aframax Corp.

  	
   

  	
  Overseas Cathy

  
	
  5.

  	
   

  	
  Sophie Tanker Corporation

  	
   

  	
  DHT Sophie Aframax Corp.

  	
   

  	
  Overseas Sophie

  
	
  6.

  	
   

  	
  Rebecca Tanker Corporation

  	
   

  	
  DHT Rebecca Aframax Corp.

  	
   

  	
  Rebecca

  
	
  7.

  	
   

  	
  Ania Aframax Corporation

  	
   

  	
  DHT Ania Aframax Corp.

  	
   

  	
  Ania

  

 

5Exhibit 10.7

 

GUARANTY

 

GUARANTY,
dated as of [•],
2005 (as amended, modified or supplemented from time to time, this “Guaranty”),
made by Double Hull Tankers, Inc., a company incorporated in the Marshall
Islands (the “Guarantor”), in favor of Tanker Management Ltd, a company formed
in England (the “Manager”).

 

RECITALS

 

WHEREAS, the
Manager and the vessel owning subsidiaries of the Guarantor (the “Owners”)
named on Schedule I, are entering into Ship Management Agreements on the
date hereof (as amended from time to time, the “Ship Management Agreements”)
pursuant to which the Manager will agree to provide certain services with
respect to the vessels owned by the Owners named on Schedule I (the “Vessels”);

 

WHEREAS, the Owners
are wholly owned subsidiaries of Guarantor; and

 

WHEREAS, in
order to induce the Manager to enter into the Ship Management Agreements with
the Owners, Guarantor desires to execute this Agreement to guarantee the Owners’
payment and performance obligations under the Ship Management Agreements.

 

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

 

Section 1.  Guaranty.  The Guarantor, as primary obligor and not
merely as surety, hereby irrevocably, unconditionally and absolutely guarantees
to the Manager the due and punctual payment of all obligations and liabilities
owing by the Owners under the Ship Management Agreements and the due
performance and compliance by the Owners with all terms, conditions and
agreements contained therein (all such obligations and liabilities being herein
collectively called the “Guaranteed Obligations”).  In case of failure of the Owners punctually to
pay any of the amounts necessary to satisfy the Guaranteed Obligations, the
Guarantor shall cause such amounts to be paid punctually when and as the same
shall become due and payable as if such payment were made by the Owners.  The Guarantor also shall pay any and all
expenses (including, without limitation, reasonable attorneys’ fees and
expenses) incurred by the Manager in enforcing its rights under this Guaranty
provided that the Manager is successful in enforcing its rights hereunder.

 

Section 2.  Unconditional Obligations.  The obligation of the Guarantor to guarantee
the Guaranteed Obligations set forth in Section 1 above shall be absolute
and unconditional irrespective of (i) any lack of enforceability against
the Owners of the Guaranteed Obligations, (ii) any change of the time,
manner or place of payment, or any other term, of the Guaranteed Obligations, (iii) the
failure, omission, delay or lack on the part of the Manager to assert any claim
or demand or to enforce any right or remedy 

 

 

against the Guarantor or the Owners, (iv) any reduction,
limitation, impairment or termination of the Guaranteed Obligations for any
reason, including any claim of waiver, release, surrender, alteration or
compromise, (v) any invalidity, illegality or unenforceability in whole or
in part of the Ship Management Agreements and (vi) any law, regulation or
order of any jurisdiction affecting any term of the Guaranteed Obligations or
the Manager’s rights with respect thereto.  The Guarantor hereby waives promptness,
diligence, protest, demand of payment and notices with respect to the
Guaranteed Obligations and any requirement that the Manager exhaust any right
or take any action against the Owners.  Notwithstanding
anything in this Guaranty to the contrary, the Guarantor shall be entitled to
the benefit of any right to or claim of any defense, setoff, counterclaim,
recoupment or termination to which the Owners are entitled other than those
referred to in clause (v) of this Section 2.

 

Section 3.  Nature of Guaranteed Obligations.  (a)  The Guarantor hereby agrees that
this Guaranty is a guaranty of payment and performance and not of collection
only.

 

(b)  Any
and all payments by the Guarantor under the Guaranteed Obligations shall be
made free and clear of, and without deduction or withholding for or on account
of, any and all taxes, monetary transfer fees or other amounts except to the
extent such deduction or withholding of any tax is required by applicable law.  If the Guarantor shall be required by applicable
law to deduct or withhold any tax or other amount from or in respect of any sum
payable hereunder to or for the benefit of the Manager, to the extent the
amount to be received from the Guarantor after such withholding is less than
the amount that would have been received from the Owners, the Guarantor shall
pay to the Manager such additional amount as shall be necessary to enable the
Manager to receive, after such withholding (including any withholding with
respect to such additional amount), the amount it would have received if such
withholding had not been required.

 

Section 4.  Insolvency.  This Guaranty shall continue to be effective,
or be reinstated, as the case may be, if at any time payment, in whole or in
part of any of the Guaranteed Obligations is rescinded or must otherwise be
restored or returned by the Manager upon the bankruptcy, insolvency,
reorganization, arrangements, adjustment, composition, dissolution,
liquidation, or the like, of the Owners or the Guarantor, or as a result of the
appointment of a custodian, receiver, trustee, or other officer with similar
powers with respect to the Owners or the Guarantor or any substantial part of
either person’s respective property, or otherwise, all as though such payment
had not been made notwithstanding any termination of this Guaranty or the Ship
Management Agreements.

 

Section 5.  Representations and Warranties of the
Guarantor.  The Guarantor hereby
represents and warrants to the Manager that this Guaranty has been duly
executed and delivered by the Guarantor and constitutes a valid and binding
obligation of the Guarantor, enforceable against the Guarantor in accordance
with its terms.

 

2

 

Section 6.  Waivers and Amendments; Non-Contractual
Remedies; Preservation of Remedies. 
This Guaranty may be amended, superseded, canceled, renewed or extended,
and the terms hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance.  No delay on the part of any party on
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any party of any right, power or
privilege, nor any single or partial exercise of any such right, power or
privilege, preclude any further exercise thereof or the exercise of any other
such right, power or privilege.  The
rights and remedies herein provided are cumulative and are not exclusive of any
rights or remedies that any party may otherwise have at law or in equity.

 

Section 7.  Governing Law.  This Guaranty shall be construed, performed
and enforced in accordance with the same laws and in the same manner as is set
forth in the Ship Management Agreements.

 

Section 8.  Notices.  All notices, requests, demands and other
communications under this Guaranty must be delivered in the same manner as set
forth in the Ship Management Agreements.

 

Section 9.  Counterparts.  This Guaranty may be executed by the parties hereto
in counterparts, each of which, when so executed and delivered, shall be deemed
to be an original, but all such counterparts shall together constitute but one
and the same instrument.

 

Section 10.  Assignment; Binding Effect.  This Guaranty shall be binding upon the
Guarantor and its successors, permitted assigns and legal representatives and
shall inure to the benefit of the Manager and its successors, permitted assigns
and legal representatives.  This Guaranty
and any rights of either party hereunder, may not be assigned, directly or
indirectly, without the prior written consent of the other party (which consent
may be withheld at the sole discretion of such other party), provided that
Manager may assign its rights hereunder as security to its lenders.  Any assignment in violation of this Section 11
shall be void and shall have no force and effect, it being understood for the
avoidance of doubt that in the event that a party shall merge or consolidate
with or into another entity or enter into a business combination or other
similar transaction with another entity, such transaction shall constitute an
assignment.

 

Section 11.  No Third-Party Beneficiaries.  Nothing in this Guaranty will confer any
rights or benefits upon any person or entity other than the Manager and a
successor or permitted assignee of the Manager.

 

Section 12.  Negotiated Agreement.  This Guaranty has been negotiated by the parties
and the fact that the initial and final draft will have been prepared by either
party or an intermediary will not give rise to any presumption for or against
any party to this Guaranty or be used in any respect or forum in the construction
or interpretation of this Guaranty or any of its provisions.

 

3

 

Section 13.  Severability.  If any provision of this Guaranty is held to
be void or unenforceable, in whole or in part, (i) such holding shall not
affect the validity and enforceability of the remainder of this Guaranty,
including any other provision, paragraph or subparagraph and (ii) the
parties agree to attempt in good faith to reform such void or unenforceable
provision to the extent necessary to render such provision enforceable and to
carry out its original intent.

 

IN WITNESS
WHEREOF, the Guarantor has caused this Guaranty to be executed on its behalf by
its officer thereunto duly authorized on the date first above written.

 

	
   

  	
  DOUBLE HULL TANKERS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [•]

  	
   

  
	
   

  	
   

  	
  Name:

  	
  [•]

  
	
   

  	
   

  	
  Title:

  	
  [•]

  
					

 

Accepted and Agreed to this

 

[    ] day
of [•],
2005

 

[TANKER
MANAGEMENT]

 

	
  By:

  	
  /s/ [•]

  	
   

  
	
   

  	
  Name:

  	
  [•]

  
	
   

  	
  Title:

  	
  [•]

  
				

 

4

 

SCHEDULE I

 

	
   

  	
   

  	
  Owners:

  	
   

  	
  Vessel

  
	
  1.

  	
   

  	
  Ann Tanker Corporation

  	
   

  	
  Overseas Ann

  
	
  2.

  	
   

  	
  Chris Tanker Corporation

  	
   

  	
  Overseas Chris

  
	
  3.

  	
   

  	
  Regal Unity Tanker Corporation

  	
   

  	
  Regal Unity

  
	
  4.

  	
   

  	
  Cathy Tanker Corporation

  	
   

  	
  Overseas Cathy

  
	
  5.

  	
   

  	
  Sophie Tanker Corporation

  	
   

  	
  Overseas Sophie

  
	
  6.

  	
   

  	
  Rebecca Tanker Corporation

  	
   

  	
  Rebecca

  
	
  7.

  	
   

  	
  Ania Aframax Corporation

  	
   

  	
  Ania

  

 

5

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