Document:

Exhibit
10.(iii)(x)

 

Overseas
Shipholding Group, Inc.

666 Third Avenue

New York, New York 10017

 

 

 

 

Dear Mats Berglund:

 

Reference is hereby made to
the Overseas Shipholding Group, Inc. Severance Protection Plan, effective January 1,
2006 (the “Plan”).  Any capitalized term
used but not defined herein shall have the meaning ascribed to such term in the
Plan.

 

The purpose of this Notice
of Eligibility is to inform you that as of January 1, 2006, subject to the
terms of the Plan, you are hereby eligible to participate in the Plan as a Tier
A Executive.

 

Sincerely,

 

OVERSEAS SHIPHOLDING GROUP,
INC.

 

	
  By:

  	
  /s/Morten Arntzen

  
	
  Name:

  	
  Morten Arntzen

  
	
  Title:

  	
  President

  

 

 

ACKNOWLEDGEMENT
AND AGREEMENT:

 

In
consideration of participation in the Plan as an Eligible Executive, the
undersigned hereby acknowledges and agrees to be bound by the restrictive
covenants and agreements set forth in Section 7 of the Plan, including,
without limitation, the injunctive provisions of Section 7(b).

 

	
  /s/Mats Berglund

  
	
  Mats
  Berglund

  

 

Effective Date: 
January 1, 2006Exhibit 10.(iii)(y)

 

CHANGE OF CONTROL

 

PROTECTION AGREEMENT

 

Agreement
(this “Agreement”) made as of January 1, 2006, by and between Overseas
Shipholding Group, Inc., a corporation incorporated under the laws of
Delaware with its principal office at 666 Third Avenue, New York, New York
10017 (the “Company”) and Mats Berglund (the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS,
the Company believes that the establishment and maintenance of a sound and
vital management of the Company and its affiliates is essential to the
protection and enhancement of the interests of the Company and its
stockholders;

 

WHEREAS,
the Company also recognizes that the possibility of a Change of Control (as
defined in Section 1(iii) hereof), with the attendant uncertainties
and risks, might result in the departure or distraction of key employees of the
Company to the detriment of the Company; and

 

WHEREAS,
the Company has determined that it is appropriate to take steps to induce key
employees to remain with the Company, and to reinforce and encourage their
continued attention and dedication, when faced with the possibility of a Change
of Control.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants herein
contained, the parties hereto hereby agree as follows:

 

1.                                       Definitions.  The foregoing terms shall have the following
meaning:

 

(i)                                     “Anticipatory
Termination” means a Termination without Cause or for Good Reason that occurs
after a tender offer is announced for the Company or after material discussions
have occurred with a possible acquirer with regard to a Transaction, provided,
that such offer or discussions have not terminated.

 

(ii)                                  “Cause” shall
mean: (A) the Executive’s willful misconduct involving the Company or its
assets, business or employees or in the performance of his duties which is
materially injurious to the Company (in a manner which would effect the Company
economically or as to its reputation); (B) the Executive’s indictment for,
or conviction of , or pleading guilty or nolo contendre to, a felony (provided
that for this purpose, a felony shall cover any action or inaction that is a
felony or crime under federal, state or local law in the United States
(collectively, “U.S. law”) and any action or inaction which takes place outside
of the United States, if it would be a felony under U.S. law); (C) the
Executive’s continued and substantial failure to attempt in good faith to
perform his duties with the Company (other than failure resulting from his
incapacity due to physical or mental illness or injury), which failure has
continued for a period of at least ten (10) days after written notice
thereof from the Company; (D) the Executive’s breach of any material
provisions of any agreement with the Company, which breach, if curable, is not
cured within ten (10) days after written notice thereof from the Company;
or (E) the Executive’s failure to attempt in good faith to promptly follow
a written 

 

 

direction
of the Board of Directors of the Company (the “Board”) or a more senior
officer, provided that the failure shall not be considered “Cause” if the
Executive, in good faith, believes that such direction, or implementation
thereof, is illegal and he promptly so notifies the Chairman of the Board in
writing.  No act or failure to act by the Executive shall be deemed to be “willful”
if he believed in good faith that such action or non-action was in or not
opposed to, the best interests of the Company.

 

(iii)                               A “Change of
Control” shall mean the occurrence of any of the following events:  (i) any person (as defined in Section 3(a)(9) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and as
used in Sections 13(d) and 14(d) thereof), excluding the Company, any
“Subsidiary,” any employee benefit plan sponsored or maintained by the Company,
or any Subsidiary (including any trustee of any such plan acting in his
capacity as trustee), becomes the beneficial owner (as defined in Rule 13(d)-3
under the Exchange Act) of shares of the Company having at least thirty percent
(30%) of the total number of votes that may be cast for the election of
directors of the Company; provided, that no Change of Control will be deemed to
have occurred as a result of an increase in ownership percentage in excess of
thirty percent (30%) resulting solely from an acquisition of securities by the
Company unless and until such person acquires additional shares of the Company;
(ii) there is a merger or other business combination of the Company, sale
of all or substantially all of the Company’s assets or combination of the foregoing
transactions or a liquidation of the Company, (a “Transaction”), other than a
Transaction involving only the Company and one or more of its Subsidiaries, or
a Transaction immediately following which the shareholders of the Company
immediately prior to the Transaction continue to have a majority of the voting
power in the resulting entity in approximately the same proportion as they had
in the Company immediately prior to the Transaction; or (iii) during any
period of two (2) consecutive years beginning on or after the date hereof,
the persons who were directors of the Company immediately before the beginning
of such period (the “Incumbent Directors”) shall cease (for any reason other
than death) to constitute at least a majority of the Board or the board of
directors of any successor to the Company, provided that, any director who was
not a director as of the date hereof shall be deemed to be an Incumbent
Director if such director was elected to the Board by, or on the recommendation
of or with the approval of, at least two-thirds (2/3) of the directors who then
qualified as Incumbent Directors either actually or by prior operation of the
foregoing unless such election, recommendation or approval occurs as a result
of an actual or threatened election contest (as such terms are used in Rule 14a-11
of Regulation 14A promulgated under the Exchange Act or any successor
provision) or other actual or threatened solicitation of proxies or contests by
or on behalf of a person other than a member of the Board.  Only one (1) Change of Control may occur
under this Agreement.

 

(iv)                              “Disability”
shall mean the Executive’s failure to have performed his material duties and
responsibilities as a result of physical or mental illness or injury for more
than one hundred eighty (180) days during a three hundred sixty-five (365) day
period.

 

(v)                                 “Good Reason”
shall mean a termination by the Executive effected by a written notice given
within ninety (90) days after the occurrence of the Good Reason event.  For purposes of this Agreement, “Good Reason”
shall mean the occurrence of any of the following events without the Executive’s
express written consent which event is not cured within ten (10) days
after written notice thereof from the Executive to the Company: (A) any
material 

 

2

 

diminution
in the Executive’s position, duties, responsibilities, title or authority, or
the assignment to the Executive of duties and responsibilities materially
inconsistent with his position, except in connection with the Executive’s
termination for Cause or as a result of death, or temporarily as a result of
the Executive’s incapacity or other absence for an extended period; (B) a
reduction in the Executive’s annual base salary; (C) a relocation of the
Executive’s principal business location to an area outside of a fifty (50) mile
radius of both the Executive’s current principal business location and the
Executive’s principal residence; or (D) any breach of Section 13 of
this Agreement.

 

(vi)                              A termination “without
Cause” shall mean a termination of the Executive’s employment by the Company
other than for a termination for Cause or due to Disability.

 

2.                                       Term.  This Agreement shall commence on the date
hereof and shall expire on the earliest of (i) three (3) years from
the date hereof, subject to the right of the Board and the Executive to extend
it, provided that, if a Change of Control takes place prior to three (3) years
from the date hereof, the duration of this Agreement under this subpart (i) shall
be until two (2) years after the Change of Control whether such two (2) year
period ends before or after the end of such three (3) year period; (ii) the
date of the death of the Executive or retirement or other termination of the
Executive’s employment (voluntarily or involuntarily) with the Company prior to
a Change of Control other than as a result of a termination by the Company
without Cause or by the Executive for Good Reason that is an Anticipatory
Termination; or (iii) ninety (90) days after an Anticipatory Termination
by the Company without Cause or by the Executive with Good Reason if a Change
of Control does not occur on or prior to such date.  Notwithstanding anything in this Agreement to
the contrary, if the Company becomes obligated to make any payment to the
Executive pursuant to the terms hereof at or prior to the expiration of this
Agreement, then this Agreement shall remain in effect for such and related
purposes (including but not limited to under Section 5 hereof) until all
of the Company’s obligations hereunder are fulfilled.  Further, provided that a Change of Control
has taken place prior to the termination of this Agreement, the provisions of
Sections 10 and 12 hereof shall survive and remain in effect notwithstanding
the termination of this Agreement, the termination of the Executive’s
employment or any breach or repudiation or alleged breach or repudiation by the
Company or the Executive of this Agreement or any one or more of its terms.

 

3.                                       Termination
Following Change of Control.  If, and only if, (i) a Change of Control
occurs and the Executive’s employment with the Company is terminated by the
Company without Cause or by the Executive for Good Reason at any time within
two (2) years after the Change of Control or (ii) there was an
Anticipatory Termination and the Change of Control has taken place within ninety
(90) days thereafter, the Executive shall be entitled to the amounts provided
in Section 4 upon such termination. 
In the event of an Anticipatory Termination, if any equity grants which
were granted prior to a Change of Control would vest on a Change of Control
after an Anticipatory Termination, any such equity grants that otherwise would
be forfeited (after application of any other accelerated vesting provision)
shall not be forfeited pending a determination of whether or not a Change of
Control occurs within ninety (90) days thereafter (the “Determination Period”),
but during the Determination Period no unvested option shall vest or be
exercisable, no other unvested equity grant shall vest and no dividends shall
be payable unless and until the Change of Control takes place during the 

 

3

 

Determination Period.  If a Change of Control occurs during the
Determination Period, and the option exercise period would otherwise have
expired, then the exercise period for any equity grants which otherwise would
have expired during the Determination Period shall automatically be deemed to
have been extended to the date which is thirty (30) days following the first
date after such Change of Control in which shares of the Company could be
traded by the Executive on the applicable market under the Company’s trading
window policies but, with regard to any outstanding options on the date hereof,
not beyond the last day of extension permitted under Section 409A (“Code Section 409A”)
of the Internal Revenue Code of 1986, as amended (the “Code”), without such
option being deemed subject to Code Section 409A as of the date granted.

 

4.                                       Compensation on
Change of Control Termination.  (a)  If, pursuant to Section 3, the
Executive is entitled to amounts and benefits under this Section 4, the
Executive shall receive the following payments and benefits from the Company:

 

(A) 
(i) subject to submission of appropriate documentation, any incurred but
unreimbursed business expenses for the period prior to the Executive’s
termination payable in accordance with the Company’s policies and practices; (ii) any
base salary, bonus, vacation pay or other compensation accrued or earned under
law or in accordance with the Company’s policies applicable to the Executive
but not yet paid; and (iii) any other amounts or vested benefits due under
the then applicable employee benefit (including, without limitation, any
non-qualified pension plan or arrangement), equity or incentive plans of the
Company then in effect, applicable to the Executive as shall be determined and
paid in accordance with such plans;

 

(B) 
subject to Section 4(b) and Section 8 hereof, in a lump sum
(without regard to any interest which may have accrued thereon) within ten (10) days
after the satisfaction of the requirements of Section 8 hereof (or, if
such termination occurred prior to a Change of Control, within ten (10) days
after the latter of the aforesaid date or the Change of Control), (i) two (2) times
the sum of (x) the Executive’s annual base salary rate in effect
immediately prior to his termination (or if such termination is by the
Executive pursuant to Section 1(v)(B), Executive’s annual base salary rate
in effect immediately prior to such reduction of the rate of his annual base
salary), plus (y) the Executive’s highest target annual incentive
compensation in effect within one hundred eighty (180) days prior to, or at any
time after, the Change of Control; provided, that if no target annual
incentive compensation is in effect during such period, then for the purpose of
this Section 4(a)(B)(i)(y), the Executive’s target incentive compensation
shall be deemed to be 50% of the Executive’s annual base salary rate in effect
immediately prior to his termination (or if such termination is by the
Executive pursuant to Section 1(v)(B), Executive’s annual base salary rate
in effect immediately prior to such reduction of the rate of his annual base
salary); (ii) a lump sum amount equal to twenty-four (24) months of
additional employer contributions under any qualified or nonqualified defined
contribution pension plan or arrangement of the Company applicable to the
Executive, measured from the date of termination of employment and not
contributed to the extent that the Executive would otherwise be entitled to
such contributions during such period if he had contributed at the maximum
permitted salary reduction level during such period; (iii) a pro rata
target bonus for the year in which Executive is terminated based on the portion
of the year the Executive was employed, provided that, if no target annual
incentive compensation is in effect during such period, then for the purpose of
this Section 4(a)(B)(iii), the Executive’s target incentive compensation
shall be deemed to be 50% of the Executive’s annual base salary rate in effect
immediately prior to his termination (or if such

 

4

 

termination is by the
Executive pursuant to Section 1(v)(B), Executive’s annual base salary rate
in effect immediately prior to such reduction of the rate of his annual base
salary); and (iv) to the extent not paid pursuant to Section 4(a)(A) above,
any earned but unpaid bonus for a previously completed fiscal year of the
Company; provided that such bonus shall be paid to the Executive in the year
following the completed fiscal year of the Company when other executive’s of
the Company receive their bonuses; and

 

(C) 
subject to Section 4(b) and Section 8 hereof, (i) continued
coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”) under the Company health plans in which the Executive participated
immediately prior to the date of termination of the Executive’s employment, or
materially equivalent plans thereto (the “Health Plans”), for the Executive and
the Executive’s dependents until the earliest of (a) the Executive or the
Executive’s eligible dependents, as the case may be, ceasing to be eligible
under COBRA, (b) twenty-four (24) months following the date of termination
of the Executive’s employment, and (c) the Executive’s commencement of
other substantially full-time employment; provided that the Executive timely
elects such COBRA coverage and pays the same premium amount for such coverage
as the Executive would pay if an active employee; and further provided that
such coverage shall cease to the extent that the providing of such coverage
would violate applicable law or result in the Executive or other participants
being taxed on the benefits under such Health Plan or alternative materially
equivalent coverage or a payment therefor (on a tax grossed up basis, to the
extent the amount taxable to the Executive is greater than the amount taxable
to him if he was an employee and participated in the Health Plans); and (ii) all
of the Executive’s then unvested equity awards which were granted prior to a
Change of Control shall automatically vest and all restrictions thereon shall
lapse.

 

(b) 
If the Company determines in good faith that any payment under Section 4(a) would
cause a violation of Code Section 409A if paid within the first six (6) months
after termination of the Executive’s employment, such amount(s) shall not
be paid during such six (6) month period but shall instead be paid in a
lump sum (without interest) immediately after the end of such six (6) month
period.  Thereafter, payments shall be
made in accordance with the Company’s normal payroll practices.

 

5.                                       Excise Tax. In the event
that the Executive shall become entitled to payments and/or benefits provided
by this Agreement or any other amounts in the “nature of compensation” (whether
pursuant to the terms of this Agreement or any other plan, arrangement or
agreement with the Company, any person whose actions result in a change of
ownership or effective control covered by Section 280G(b)(2) of the
Code or any person affiliated with the Company or such person) as a result of a
Change of Control (collectively the “Company Payments”), and if such Company
Payments will be subject to the tax (the “Excise Tax”) imposed by Section 4999
of the Code (and any similar tax that may hereafter be imposed by any taxing
authority) the amounts of any Company Payments shall be automatically reduced
to an amount one dollar less than an amount that would subject the Executive to
the Excise Tax; provided, however, that the reduction shall occur only if the
reduced Company Payments received by the Executive (after taking into account
further reductions for applicable federal, state and local income, social
security and other taxes) would be greater than the unreduced Company Payments
to be received by the Executive minus (i) the Excise Tax payable with
respect to such Company Payments and (ii) all applicable federal, state and
local income, social 

 

5

 

security
and other taxes on such Company Payments. 
The Executive may elect which payments and benefits shall be reduced to
accomplish the foregoing, but, if the Executive does not make such an election,
cash payments shall be reduced first.

 

(a)                                  For purposes of
determining whether any of the Company Payments will be subject to the Excise
Tax and the amount of such Excise Tax, (x) the Company Payments shall be
treated as “parachute payments” within the meaning of Section 280G(b)(2) of
the Code, and all “parachute payments” in excess of the “base amount” (as
defined under Code Section 280G(b)(3) of the Code) shall be treated
as subject to the Excise Tax, unless and except to the extent that, in the
opinion of the Company’s independent certified public accountants appointed
prior to any change in ownership (as defined under Code Section 280G(b)(2))
or tax counsel selected by such accountants (the “Accountants”) such Company
Payments (in whole or in part) either do not constitute “parachute payments,”
including giving effect to the recalculation of stock options in accordance
with Treasury Regulation Section 1.280G-1 Q/A33, represent reasonable
compensation for services actually rendered within the meaning of Section 280G(b)(4) of
the Code in excess of the “base amount” or are otherwise not subject to the
Excise Tax, and (y) the value of any non-cash benefits or any deferred
payment or benefit shall be determined by the Accountants in accordance with
the principles of Section 280G of the Code.  To the extent permitted under Revenue
Procedure 2003-68, the value determination shall be recalculated to the extent
it would be beneficial to the Executive, at the request of the Executive.

 

(b)                                 For purposes of
making the calculation hereunder, the Executive shall be deemed to pay U.S.
federal income taxes at the highest marginal rate of U.S. federal income
taxation in the calendar year in which the Company Payments are to be made and
state and local income taxes at the highest marginal rate of taxation in the
state and locality of the Executive’s residence for the calendar year in which
the Company Payments are to be made, net of the maximum reduction in U.S.
federal income taxes which could be obtained from deduction of such state and
local taxes if paid in such year.

 

(c)                                  In the event of
any controversy with the Internal Revenue Service (or other taxing authority)
with regard to the Excise Tax, the Executive shall permit the Company to
control issues related to the Excise Tax (at its expense), provided that such
issues do not potentially materially adversely affect the Executive, but the
Executive shall control any other issues. 
In the event the issues are interrelated, the Executive and the Company
shall in good faith cooperate so as not to jeopardize resolution of either
issue, but if the parties cannot agree the Executive shall make the final
determination with regard to the issues. 
In the event of any conference with any taxing authority as to the
Excise Tax or associated income taxes, the Executive shall permit the
representative of the Company to accompany the Executive, and the Executive and
the Executive’s representative shall cooperate with the Company and its
representative.

 

(d)                                 The Company
shall be responsible for all charges of the Accountants.

 

(e)                                  The Company and
the Executive shall promptly deliver to each other copies of any written
communications, and summaries of any verbal communications, with any taxing
authority regarding the Excise Tax.

 

6

 

6.                                       Notice of
Termination.  After a
Change of Control, any purported termination of the Executive’s employment
(other than by reason of death) shall be communicated by written Notice of
Termination from one party hereto to the other party hereto in accordance with Section 16.  For purposes of this Agreement, a “Notice of
Termination” shall mean a notice which shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the
Executive’s employment.  Further, a
Notice of Termination for Cause after a Change of Control is required to
include a copy of a resolution duly adopted by the affirmative vote of not less
than two-thirds (2/3) of the entire membership of the Board at a meeting of the
Board which was called and held for the purpose of considering such termination
and which the Executive had the right to attend and speak finding that, in the
good faith opinion of the Board, the Executive has engaged in conduct set forth
in the definition of Cause herein, and specifying the particulars thereof in
detail.

 

7.                                       Date of
Termination.  “Date of
termination,” with respect to any purported termination of the Executive’s
employment after a Change of Control, shall mean the date specified in the
Notice of Termination and, in the case of a termination by the Executive for
Good Reason, shall not be less than five (5) days nor more than sixty (60)
days, from the date such Notice of Termination is given.  In the event a Notice of Termination is given
by the Company, the Executive may treat such notice as having a date of
termination at any date between the date of receipt of such notice and the date
of termination indicated in the Notice of Termination by the Company; provided,
that the Executive must give the Company written notice of the date of
termination if he deems it to have occurred prior to the date of termination
indicated in the Notice of Termination.

 

8.                                       Acceptance and
Release. Any and all amounts payable and benefits or additional rights
provided pursuant to Sections 4(a)(B) and (C) above shall only be
payable if the Executive executes and delivers to the Company an Acceptance Form and
Release in the form attached hereto as Exhibit A discharging all claims of
the Executive which may have occurred up to the date of termination (with such
changes therein as may be necessary to make it valid and encompassing under
applicable law) within the appropriate time described in the Acceptance Form and
Release presented by the Company to the Executive.  Notwithstanding anything herein to the
contrary, if the Executive materially breaches any of the provisions of Section 10
of this Agreement, the Company may cease all payments and benefits due to the
Executive thereafter under Sections 4(a)(B) and (C) above (other than
as required by law).

 

9.                                       No Duty to
Mitigate/Set-off.  Other than
as set forth in Section 4(a)(C), the Company agrees that if the Executive’s
employment with the Company is terminated pursuant to this Agreement during the
term of this Agreement, the Executive shall not be required to seek other
employment or to attempt in any way to reduce any amounts payable to the
Executive by the Company pursuant to this Agreement.  Further, the amount of any payment or benefit
provided for in this Agreement shall not be reduced by any compensation earned
by the Executive or benefit provided to the Executive as the result of
employment by another employer or otherwise. 
Except as otherwise provided herein and apart from any disagreement
between the Executive and the Company concerning interpretation of this
Agreement or any term or provision hereof, the Company’s obligations to make
the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any circumstances, including
without limitation, any set-off, counterclaim, recoupment, defense or 

 

7

 

other right which the
Company may have against the Executive. 
The amounts due under Section 4 are inclusive, and in lieu of, any
amounts payable under any other salary continuation or cash severance
arrangement of the Company and to the extent paid or provided under any other
such arrangement shall be offset against the amount due hereunder.

 

10.                                 Confidentiality,
Non-Competition, Non-Solicitation and Cooperation.

 

(a)                                  During the
Executive’s employment with the Company and thereafter, the Executive agrees
not to, directly or indirectly, for any reason whatsoever, communicate or disclose
to any unauthorized person, firm or corporation, or use for the Executive’s own
account, without the prior written consent of the Board or the Chief Executive
Officer of the Company (the “CEO”), any proprietary processes, trade secrets or
other confidential data or information of the Company and its related and
affiliated companies concerning their businesses or affairs, accounts,
products, services or customers, it being understood, however, that the
obligations of this Section 10(a) shall not apply to the extent that
the aforesaid matters (i) are disclosed in circumstances in which the
Executive is legally required to do so, provided that the Executive gives the
Company prompt written notice of receipt of notice of any legal proceedings so
as the Company has the opportunity to obtain a protective order, or (ii) become
known to and available for use by the public other than by the Executive’s
wrongful act or omission.

 

(b)                                 During the
Executive’s employment with the Company and thereafter, the Executive agrees to
fully cooperate with the Company or its counsel in connection with any matter,
investigation, proceeding or litigation regarding any matter in which the
Executive was involved during the Executive’s employment with the Company or to
which the Executive has knowledge based on the Executive’s employment with the
Company.

 

(c)                                  During the
Executive’s employment with the Company and, if the Executive is receiving the
amounts and benefits provided under Section 4, for the one (1) year
period following the termination of the Executive’s employment with the Company,
the Executive agrees not to participate, directly or indirectly, as an
individual proprietor, partner, stockholder, officer, employee, director, joint
venturer, investor, lender, consultant or in any capacity whatsoever (within
the United States of America, or in any country where the Company or its
affiliates do business) in a business in competition with any Material Business
(as defined below) conducted by the Company as of the date of the termination
of the Executive’s employment (“Competitor”), provided, however, that such
participation will not include (i) the mere ownership of not more than one
percent (1%) of the total outstanding stock of a publicly held company, (ii) engaging
in any activity with, or for, a non-competitive division, subsidiary or
affiliate of any Competitor, or (iii) any activity engaged in with the
prior written approval of the Board or the CEO. 
A business shall be deemed to be a “Material Business” of the Company if
it generated more than 5% of the Company’s revenues in the fiscal year ending
immediately prior to termination of the Executive’s employment or is projected
to generate more than 5% of the Company’s revenues in the fiscal year of
termination of the Executive’s employment.

 

(d)                                 During the
Executive’s employment with the Company and, if the Executive is receiving the
amounts and benefits provided under Section 4, for the one (1) year
period following the termination of the Executive’s employment with the Company,
the 

 

8

 

Executive agrees that he
will not, directly or indirectly, individually or on behalf of any other
person, firm, corporation or other entity, solicit, induce, hire or retain any
employee of the Company (or any person who had been such an employee in the
prior six (6) months) to leave the employ of the Company or to accept
employment or retention as an independent contractor with, or render services
to or with any other person, firm, corporation or other entity unaffiliated
with the Company or take any action to assist or aid any other person, firm,
corporation or other entity in identifying, soliciting, hiring or retaining any
such employee; provided, the Executive may serve as a reference after the
Executive is no longer employed by the Company, but not with regard to any
entity with which the Executive is affiliated or from which the Executive is
receiving compensation and this provision shall not be violated by general
advertising not specifically targeted at employees of the Company.

 

(e)                                  During the
Executive’s employment with the Company and, if the Executive is receiving the
amounts and benefits provided under Section 4, for the one (1) year
period following the termination of the Executive’s employment with the
Company, the Executive will not solicit or induce any customer of the Company
to purchase goods or services offered by the Company from another person, firm,
corporation or other entity or assist or aid any other persons or entity in identifying
or soliciting any such customer.

 

(f)                                    Because the
Company’s remedies at law for a breach or threatened breach of any of the
provisions of this Section would be inadequate, the Executive acknowledges
and agrees that, in the event of such a breach or threatened breach, in
addition to any remedies at law, the Company shall be entitled to obtain
equitable relief in the form of specific performance, a temporary restraining
order, a temporary or permanent injunction or any other equitable remedy which
may then be available.

 

(g)                                 If it is
determined by a court of competent jurisdiction that any restriction in this Section 10
is excessive in duration or scope or is unreasonable or unenforceable, it is
the intention of the parties that such restriction may be modified or amended
by the court to render it enforceable to the maximum extent permitted.

 

(h)                                 The obligations
contained in this Section 10 shall survive the termination, separation, or
expiration of the Executive’s employment with the Company and shall be fully
enforceable thereafter.

 

11.                                 Service with
Subsidiaries.  For
purposes of this Agreement, employment by a subsidiary or a parent of the
Company shall be deemed to be employment by the Company and references to the
Company shall include all such entities, except that the payment obligation
hereunder shall be solely that of the Company. 
A Change of Control, however, as used in this Agreement, shall refer
only to a Change of Control of the Company.

 

12.                                 No Resignation.

 

(a)                                  In
consideration of this Agreement, the Executive agrees that he will not resign
from the Company without Good Reason for at least one hundred eighty (180) days
from the date hereof, except the foregoing shall not apply after a Change of
Control.

 

9

 

(b)                                 The Company
shall continue to cover the Executive, or cause the Executive to be covered,
under any director and officer insurance maintained after the Change of Control
for directors and officers of the Company (whether by the Company or another
entity) at the highest level so maintained for any other past or active
director or officer with regard to any action or omission of the Executive
while an officer or director of the Company. 
Such coverage shall continue for any period during which the Executive
may have any liability for the aforesaid actions or omissions.

 

(c)                                  Following a
Change of Control, the Company shall, with regard to matters related to
Executive’s period of employment with the Company, indemnify the Executive to
the fullest extent permitted or authorized by the Company’s bylaws against any
claims, suits, judgments, expenses (including reasonable attorney fees), with
advancement of legal fees and disbursements to the fullest extent permitted by
law, arising from, out of, or in connection with the Executive’s services as an
officer or director of the Company, as an officer or director of any affiliate
for which the Executive was required to serve as such by the Company or as a
fiduciary of any benefit plan of the Company or any affiliate.

 

13.                                 Successors;
Binding Agreement.  In addition
to any obligations imposed by law upon any successor to the Company, the
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to expressly assume and agree in writing to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken
place.  This Agreement shall inure to the
benefit of and be enforceable by the Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.  If the Executive
shall die while any amount would still be payable to the Executive hereunder if
the Executive had continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement
to the executors, personal representatives or administrators of the Executive’s
estate.  This Agreement is personal to
the Executive and neither this Agreement or any rights hereunder may be
assigned by the Executive.

 

14.                                 Miscellaneous.  No provisions of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and such officer as may be
specifically designated by the Board.  No
waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision shall be deemed a
waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.  This Agreement
constitutes the entire Agreement between the parties hereto pertaining to the
subject matter hereof.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.  All
references to any law shall be deemed also to refer to any successor provisions
to such laws.

 

15.                                 Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

10

 

16.                                 Notices.  Any notice or other communication required or
permitted hereunder shall be in writing and shall be delivered personally, or
sent by registered mail, postage prepaid. 
Any such notice shall be deemed given when so delivered personally, or,
if mailed, five days after the date of deposit in the United States mails, or
as follows:

 

	
  (i)

  	
  If to the Company, to:

  
	
   

  	
  Overseas Shipholding Group, Inc.

  
	
   

  	
  666
  Third Avenue

  
	
   

  	
  New
  York, New York 10017

  
	
   

  	
  Attention:
  Chairman

  
	
   

  	
   

  
	
  (ii)

  	
  If
  to the Executive, to his shown address on

  
	
   

  	
  the
  books of the Company.

  

 

Any
party may by notice given in accordance with this Section to the other
parties, designate another address or person for receipt of notices hereunder.

 

17.                                 Separability.  If any provisions of this Agreement shall be
declared to be invalid or unenforceable, in whole or in part, such invalidity
or unenforceability shall not affect the remaining provisions hereof which
shall remain in full force and effect.

 

18.                                 Legal Fees.  In the event the Company does not make the
payments due hereunder on a timely basis (as determined by an arbitrator) and
the matter is arbitrated pursuant to Section 19 below, if the Executive prevails
in such arbitration, the Company shall pay all costs of such arbitration,
including reasonable legal fees and other reasonable fees and expenses which
the Executive may incur (on a tax grossed up basis, to the extent such amounts
are taxable to the Executive).  The
Company shall pay to the Executive interest at the prime lending rate (as
announced from time to time by Citibank, N.A.) on all or any part of any amount
to be paid to Executive hereunder that is not paid when due.  The prime rate for each calendar quarter
shall be the prime rate in effect on the first day of the calendar quarter.

 

19.                                 Arbitration.  Any dispute or controversy arising under or
in connection with this Agreement shall be settled exclusively by arbitration
conducted in the City of New York in the State of New York under the Commercial
Arbitration Rules then prevailing of the American Arbitration Association
and such submission shall request the American Arbitration Association to:  (i) appoint an arbitrator experienced
and knowledgeable concerning the matter then in dispute; (ii) require the
testimony to be transcribed; (iii) require the award to be accompanied by
findings of fact and the statement for reasons for the decision; and (iv) request
the matter to be handled by and in accordance with the expedited procedures
provided for in the Commercial Arbitration Rules.  The determination of the arbitrators, which
shall be based upon a de novo interpretation of this Agreement, shall be final
and binding and judgment may be entered on the arbitrators’ award in any court
having jurisdiction.  The Company shall
pay all costs of the American Arbitration Association and the arbitrator.

 

20.                                 Withholding.  Any payments made or benefits provided to the
Executive under this Agreement shall be reduced by any applicable withholding
taxes or other amounts required to be withheld by law or contract.

 

11

 

21.                                 Code Section 409A.  If any provision of this Agreement would
cause the Executive to incur any additional tax or interest under Code Section 409A
or any regulations or Treasury guidance promulgated thereunder, the Company
shall, after consulting with the Executive, reform such provision; provided
that the Company agrees to maintain, to the maximum extent practicable, the
original intent and economic benefit to the Executive of the applicable
provision without violating the provisions of Code Section 409A.  The
Company shall indemnify and hold the Executive harmless, on an after-tax basis,
for any additional tax (including interest and penalties with respect thereto)
imposed on the Executive as a result of Code Section 409A with regard to
the payments and benefits hereunder.

 

22.                                 Non-Exclusivity
of Rights.  Nothing in
this Agreement shall prevent or limit the Executive’s continuing or future
participation in any benefit, bonus, incentive, equity or other plan or program
provided by the Company and for which the Executive may qualify, nor shall
anything herein (except Section 9) limit or otherwise prejudice such
rights as the Executive may have under any other currently existing plan,
agreement as to employment or severance from employment with the Company or
statutory entitlements, provided, that (i) to the extent such amounts are
paid under Section 4 hereof or otherwise, they shall not be due under any
such program, plan, agreement, or statute, and (ii) to the extent such
amounts are paid under any such program, plan, agreement, statute, or
otherwise, they shall not be due under Section 4 hereof.  Amounts that are vested benefits or which the
Executive is otherwise entitled to receive under any plan or program of the
Company, at or subsequent to the date of termination shall be payable in
accordance with such plan or program, except as otherwise specifically provided
herein.

 

23.                                 Not an Agreement
of Employment.  This is not
an agreement assuring employment and, subject to any other agreement between
the Executive and the Company, the Company reserves the right to terminate the
Executive’s employment at any time with or without cause, subject to the
payment provisions hereof, if any, that are applicable.  The Executive acknowledges that he is aware
that he shall have no claim against the Company hereunder or for deprivation of
the right to receive the amounts hereunder as a result of any termination that
does not specifically satisfy the requirements hereof or as a result of any
other action taken by the Company.

 

24.                                 Independent
Representation.  The
Executive acknowledges that he has been advised by the Company to have the
Agreement reviewed by independent counsel and has been given the opportunity to
do so.

 

25.                                 Governing Law.  This Agreement shall be construed,
interpreted, and governed in accordance with the laws of the State of Delaware
without reference to rules relating to conflicts of law.

 

12

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be duly executed and
the Executive has hereunto set his hand as of the date first set forth above.

 

	
   

  	
  OVERSEAS
  SHIPHOLDING GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/Morten Arntzen

  
	
   

  	
  Name:

  	
  Morten
  Arntzen

  
	
   

  	
  Title:

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   /s/Mats Berglund

  
	
   

  	
  Mats
  Berglund

  

 

 

EXHIBIT A

 

ACCEPTANCE FORM AND
RELEASE

 

Release

 

1.                                       I agree and
acknowledge that the payments and other benefits provided pursuant to the
Change of Control Protection Agreement (“Agreement”), dated January 1,
2006: (i) are in full discharge of any and all liabilities and obligations
of the Company to me, monetarily or with respect to employee benefits or
otherwise, including but not limited to any and all obligations arising under
any alleged written or oral employment agreement, policy, plan or procedure of
the Company and/or any alleged understanding or arrangement between me and the
Company; and (ii) exceed any payment, benefit, or other thing of value to
which I might otherwise be entitled under any policy, plan or procedure of the
Company and/or any agreement between me and the Company.

 

2.                                       In
consideration for the payments and benefits to be provided to me pursuant to
the Agreement, I forever release and discharge the Company from any and all
claims.  This includes claims that are
not specified in this Acceptance Form and Release (this “Release”), claims
of which I am not currently aware, claims under: (i) the Age
Discrimination in Employment Act, as amended; (ii) Title VII of the Civil
Rights Act of 1964, as amended; (iii) the Americans with Disabilities Act,
as amended; (iv) the Employee Retirement Income Security Act of 1974, as
amended (excluding claims for accrued, vested benefits under any employee
benefit pension plan of the Company in accordance with the terms and conditions
of such plan and applicable law); (v) the Workers’ Adjustment and
Retraining Notification Act; (vi) the Family and Medical Leave Act; (vii) any
claim under the New York State Human Rights Law and the New York City
Administrative Code; (viii) any other claim (whether based on federal,
state, or local law, statutory or decisional) relating to or arising out of my
employment, the terms and conditions of such employment, the separation of such
employment, and/or any of the events relating directly or indirectly to or
surrounding the separation of that employment, including, but not limited to,
breach of contract (express or implied), wrongful discharge, detrimental
reliance, defamation, emotional distress or compensatory or punitive damages;
and (ix) any claim for attorneys’ fees, costs, disbursements and/or the
like.  Notwithstanding anything herein to
the contrary, the sole matters to which this Release does not apply are (i) the
rights of indemnification and directors and officers liability insurance
coverage to which I was entitled immediately prior to my termination; and (ii) my
rights under any tax-qualified pension plan or claims for accrued vested
benefits under any other employee benefit plan, policy or arrangement
maintained by the Company or under the Consolidated Omnibus Budget
Reconciliation Act of 1985.

 

3.                                       This Release
applies to me and to anyone who succeeds to my rights, such as my heirs,
executors, administrators of my estate, trustees, and assigns.  This Release is for the benefit of (i) the
Company, (ii) any related corporation or entity, (iii) any director,
officer, employee, or agent of the Company or of any such related corporation
or entity, or (iv) any person, corporation or entity who or that succeeds
to the rights of the Company or of any such person, corporation or entity.

 

4.                                       I acknowledge
that I: (a) have carefully read in their entirety the Agreement, this
Release [and the information attached as Appendix I provided pursuant to the
Older Workers Benefit Protection Act]; (b) have had an opportunity to
consider fully for at least [twenty-one 

 

2

 

(21)] [forty-five (45)] days the terms of the Agreement, this Release
[and information attached as Appendix I]; (c) have been advised by the
Company in writing to consult with an attorney of my choosing in connection
with the Agreement, this Release [and the information attached as Appendix I]; (d) fully
understand the significance of all of the terms and conditions of the
Agreement, Release [and the information attached as Appendix I], and have
discussed them with my independent legal counsel, or have had a reasonable
opportunity to do so; (e) have had answered to my satisfaction any
questions I have asked with regard to the meaning and significance of any of
the provisions of the Agreement, this Release [and the information attached as
Appendix I]; and (f) am signing this Release voluntarily and of my own
free will and assent to all the terms and conditions contained herein and
contained in the Agreement and the Release.

 

5.                                       I understand
that I will have [twenty-one (21)] [forty-five (45)] days from the date of receipt
of this Release [and information attached as Appendix I] to consider the terms
and conditions of those documents. I may accept this Release by signing and
returning it to                               .  After executing this Release and returning it
to                               ,
I shall have seven (7) days (the “Revocation Period”) to revoke this
Release by indicating my desire to do so in writing delivered by no later than
5:00 p.m. on the seventh (7th) day following the date I sign and return
this Release.  The effective date of this
Release shall be the eighth (8th) day following my signing and return of this
Release.  If the last day of the
Revocation Period falls on a Saturday, Sunday or holiday, the last day of the
Revocation Period will be deemed to be the next business day. In the event I do
not accept this Release, or in the event I revoke this Release during the
Revocation Period, my rights under the Agreement, this Release, including but
not limited to my rights to receive payments and other benefits from the
Company, shall be deemed automatically null and void.

 

 

	
  Print Name:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
  Employee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Employee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  STATE OF NEW YORK

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  ) ss:

  	
   

  	
   

  	
   

  
	
  COUNTY OF                       

  	
  )

  	
   

  	
   

  	
   

  
						

 

On
this        day of                     
              ,
before me personally came                         
to be known and known to me to be the person described and who executed the
foregoing Release, and (s)he duly acknowledged to me that (s)he executed the
same.

 

	
   

  	
   

  
	
  Notary
  Public

  	
   

  

 

3

 

ACCEPTANCE FORM AND
RELEASE

 

Acceptance
Form:

 

I have read the Change of
Control Protection Agreement, dated January 1, 2006 (“Agreement”) and the
accompanying Release [and the information attached as Appendix I] and hereby
accept the benefits provided under the Agreement, subject to the terms and
conditions set forth in the Agreement and Release.

 

	
  Print Name:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
  Employee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Employee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  STATE OF NEW YORK

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  ) ss:

  	
   

  	
   

  	
   

  
	
  COUNTY OF                       

  	
  )

  	
   

  	
   

  	
   

  
						

 

On
this        day of                     
              ,
before me personally came                         
to be known and known to me to be the person described and who executed the
foregoing Release, and (s)he duly acknowledged to me that (s)he executed the
same.

 

	
   

  	
   

  
	
  Notary Public

  	
   

  

 

4

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