Document:

exhibit10-1.htm

Exhibit 10.1

 

 

OVERSEAS SHIPHOLDING GROUP, INC.

 

2004 Stock Incentive Plan

 

_______________________________

 

Restricted Stock Award

______________________________

 

 

You are hereby awarded common stock of Overseas Shipholding Group, Inc. (the “Company”) on a restricted basis (“Restricted Stock”) subject to the terms and conditions set forth in this Restricted Stock Award (“Award”) and in the Overseas Shipholding Group, Inc. 2004 Stock Incentive Plan, as amended and restated as of June 2, 2010 and as subsequently amended from time to time (the “Plan”), which is attached hereto as Exhibit A.  This Award is subject to the Plan’s terms and conditions.  All determinations, interpretations, or other actions respecting the Plan and this Award will be made by the Committee under the Plan, and shall be final, conclusive and binding on all parties, including you and your successors in interest.  Capitalized terms are defined in the Plan or in this Award.

 

Specific Terms.  Your Restricted Stock Award has the following terms:

 

 

 

 

	
Name of Participant:

	  
	
Address of Participant:

	  
	
Number of Shares Subject to Award:

	  
	
Grant Date:

	  
	
Vesting:

	
Over 4 years – 25% of the Restricted Stock under this Award shall vest and become nonforfeitable upon each of the first four anniversaries of the Grant Date provided you are an employee of the Company or an Affiliate on each such date. 

All unvested Restricted Stock shall be forfeited if your employment with the Company and its Affiliates terminates for any reason or for no reason; provided, that notwithstanding the foregoing, 100% of the Restricted Stock under this Award shall vest and become nonforfeitable upon (i) a termination of your employment by the Company due to your having a Disability, (ii) your death, (iii) your voluntary termination of employment on or after attainment of age 65 or (iv) a Change in Control.

 

1. Certificates.  Restricted Stock will be evidenced by a book-entry in the Company’s records.  Upon vesting, you may request a physical certificate for your vested shares.

 

2. Share Issuance.  You are responsible for providing to the Company the amount of any legally required tax withholding as of the time of vesting of your Restricted Stock.  Unless you make alternative arrangements with the Committee to satisfy applicable tax-withholding obligations, at the time your Restricted Stock vests, the Company may, to the extent permitted by law, deduct from payments otherwise due to you, the minimum statutory withholding for federal, state or local taxes of any kind required by law to be withheld with respect to the Restricted Stock which becomes vested.

 

3. Investment Purposes.  The Restricted Stock granted to you pursuant to this Award is being granted by the Company with the understanding that you may not sell or distribute the Restricted Stock unless it is registered for sale or the sale is in accordance with an available exemption from registration.

 

4. Rights with Regard to Restricted Stock.  You will have the right to vote the Restricted Stock, to receive and retain all regular cash dividends payable to holders of record of the Company’s common stock on and after the Grant Date (although such dividends shall be treated, to the extent required by applicable law, as additional compensation for tax purposes if paid on Restricted Stock), and to exercise all other rights, powers and privileges of a holder of common stock of the Company, with the exceptions that until the Restricted Stock becomes vested: (i) you will not be entitled to delivery of stock certificates; and (ii) you may not sell, transfer, pledge, hypothecate, assign or otherwise dispose of your Restricted Stock, except as permitted under the Plan or this Award.

 

5. Attempted Transfer.  Any attempted sale, transfer, pledge, hypothecation, assignment, exchange or other disposition of Restricted Stock in violation of the Plan and this Award will be considered void and of no effect and the Company will have the right to disregard the same on its books and records and to issue “stop transfer” instructions to its transfer agent.

 

6. Section 83(b) Election.  You may, but are not required to, elect (in accordance with Section 83(b) of the Internal Revenue Code of 1986, as amended) within 30 days of the Grant Date, to include in gross income for federal tax purposes in the year of issuance, the fair market value of your Restricted Stock as of the Grant Date.  If you properly make such election, then you will be responsible for providing to the Company the amount of any legally required tax withholding as of the time of the election.  Unless you make alternative arrangements with the Committee to satisfy applicable tax-withholding obligations, at the time your Restricted Stock vests, the Company may, to the extent permitted by law, deduct from payments otherwise due to you, the minimum statutory withholding for federal, state or local taxes of any kind required by law to be withheld with respect to the election.  It is your sole responsibility, and not the Company’s, to file timely and properly the election under Section 83(b) of the Code and any corresponding provisions of state tax laws if you elect to utilize such election.  See that attached “Information Concerning the Tax Treatment on Restricted Stock Grants” for more information.  You should consult with your tax advisor concerning such an election.

 

7. Not a Contract of Employment.  Nothing in this Award or the Plan confers on you any right to continued employment with the Company or an Affiliate, or restricts the Company’s or an Affiliate’s right to terminate your employment at any time for any or no reason.

 

8. Severability.  The provisions of this Award and the Plan are intended to be severable, and any illegal or invalid term shall not affect the validity or legality of the remaining terms.

 

9. Notices.  Any notice or communication required or permitted to be given by any provision of this Award or the Plan shall be in writing and shall be delivered personally or sent by certified mail, return receipt requested, addressed as follows: (i) if to the Company or the Committee, at the address set forth below, to the attention of the Director of Human Resources; and (ii) if to you, at the address the Company has on file for you.  Any such notice shall be deemed to be given as of the date it is personally delivered or properly mailed.

 

10. Deemed Acceptance of Terms.  If you do not notify the Committee of your disagreement with any of the terms sets forth in this Award within 30 days following the Grant Date, you will be deemed to have accepted this Award.

 

Miscellaneous.  This Award will inure to the benefit of and be binding upon the parties hereto and their respective heirs, personal legal representatives, successors, trustees, administrators, distributees, devisees and legatees.  This Award will be construed, interpreted and governed and the legal relationships of the parties determined in accordance with the internal laws of the State of Delaware without reference to rules relating to conflicts of law.  The headings of the sections of this Award have been inserted for convenience of reference only and shall in no way restrict or modify any of the terms or provisions hereof.

 

11. Provisions of Plan Control.  The Plan is incorporated herein by reference.  If and to the extent that this Award conflicts or is inconsistent with the terms, conditions and provisions of the Plan, the Plan shall control, and this Award shall be deemed to be modified accordingly.

 

OVERSEAS SHIPHOLDING GROUP, INC.

 

Morten Arntzen

President, and Chief Executive Officer

  

  

  

Information Concerning the Tax Treatment

on Restricted Stock Grants

 

Recipients of Restricted Stock Grants or Success Share Awards have the option of electing to pay taxes under IRC Section 83(b) within 30 days of the grant date which is ________________, 20___ based on the fair market value of the stock as of such date.  The price is $_________ per share.  The advantage of making this election is that by paying the tax under Section 83(b), you become eligible for capital gains treatment on any gains or losses you may recognize on the sale of your vested shares based on the difference in the stock price as of the grant date and the price on the sale date.  As a result, the dividend income you receive from the restricted shares will be taxed at a rate of 15%.  However, if you pre-pay your taxes under Section 83(b) and then forfeit the stock before it vests, you also forfeit the amount you prepaid.

 

 

If this election is not made, upon vesting, you will recognize ordinary income and such amounts will be subject to both wage withholding and employment taxes and reflected in W2 earnings.  Any dividends received on non-vested shares will also be treated as compensation and reflected as W2 earnings.

 

 

This election does not apply to stock option grants.

 

 

Please refer to the attached Prospectus on pages 20 and 21 for more detailed information concerning the tax consequences on your restricted shares or your options.  We also suggest that you speak with your financial advisor as we cannot provide tax advice.

 

If you are interested in electing to pay tax within under Section 83(b), please contact Human Resources.exhibit10-2.htm

Exhibit 10.2

OVERSEAS SHIPHOLDING GROUP, INC.

NONQUALIFIED STOCK OPTION AGREEMENT

(Pursuant to the Overseas Shipholding Group, Inc. 2004 Stock Incentive Plan)

 

 

THIS NONQUALIFIED STOCK OPTION AGREEMENT (this “Agreement”), is made as of the ___ day of ____________, 20____ by and between Overseas Shipholding Group, Inc. (the “Company”) and _________________ (the “Optionee”).

 

WHEREAS, the Company has adopted the Overseas Shipholding Group, Inc. 2004 Stock Incentive Plan, as amended and restated as of June 2, 2010 and as subsequently amended from time to time  (the “Plan”) in order to enhance the profitability and value of the Company for the benefit of its stockholders by enabling the Company to offer eligible employees stock-based incentives, thereby creating a means to raise the level of equity ownership by such individuals in order to attract, retain and reward such individuals and strengthen the mutuality of interests between such individuals and the Company’s stockholders; and

 

WHEREAS, the Committee has determined to grant an option to the Optionee under the Plan as provided herein.

 

NOW, THEREFORE, the parties hereto agree as follows:

 

Grant of Option.

 

The Company hereby grants to the Optionee on the date hereof the right and option (the “Option”) to purchase up to an aggregate of ____________ shares of Common Stock, subject to, and in accordance with, the terms and conditions set forth in this Agreement and the Plan.

 

The Option is not intended to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code.

 

This Agreement shall be construed in accordance and consistent with, and subject to, the provisions of the Plan (the provisions of which are incorporated herein by reference) and, except as otherwise expressly set forth herein, the capitalized terms used in this Agreement shall have the same definitions as set forth in the Plan.

 

Grant Price.  The price at which the Optionee shall be entitled to purchase shares of Common Stock upon the exercise of the Option shall be $_______ per share of Common Stock (the “Exercise Price”).

 

Exercisability and Vesting of Option. The Option shall vest in one-third increments on each of the first three anniversaries of the grant date hereof, provided that the Optionee has been in the continuous employ of the Company or its Affiliates through each such date.  Notwithstanding the foregoing, the Option shall become fully vested upon a Change in Control, in accordance with, and subject to, the provisions of Article XI of the Plan, provided that the Optionee has been in the continuous employ of the Company or its Affiliates through the date of the Change in Control.

 

Term. The Option shall be exercisable to the extent and in the manner provided herein and shall be exercisable for a term of ten (10) years from the date hereof, provided, however, that the Option shall terminate earlier as provided in Section 6 of the Plan or as otherwise provided in the Plan.

 

Manner of Exercise and Payment.  To the extent vested, the Option may be exercised in whole or in part at any time during the Option term, by giving written notice of exercise to the Company specifying the number of shares of Common Stock to be purchased.  Such notice shall be accompanied by payment in full of the purchase price (or arrangements satisfactory to the Committee made for such payment) as follows: (i) in cash or by check, bank draft or money order payable to the order of the Company; (ii) solely to the extent permitted by applicable law, if the Common Stock is traded on a national securities exchange or quoted on a national quotation system sponsored by the National Association of Securities Dealers, and the Committee authorizes, through a procedure whereby the Optionee delivers irrevocable instructions to a broker reasonably acceptable to the Committee to deliver promptly to the Company an amount equal to the purchase price; or (iii) on such other terms and conditions as may be acceptable to the Committee (including, without limitation, the relinquishment of stock options or by payment in full or in part in the form of Common Stock (including by attestation) owned by the Optionee (and for which the Optionee has good title, free and clear of any liens and encumbrances) based on the Fair Market Value of the Common Stock on the payment date as determined by the Committee).  No shares of Common Stock shall be issued until payment therefore, as provided herein, has been made or provided for.

 

Rights as a Stockholder.  The Optionee shall have no rights as a stockholder with respect to the shares of Common Stock subject to the this option until payment of the Exercise Price and delivery to the Optionee of such shares of Common Stock as provided herein.

 

Investment Purposes.  Upon the exercise of the Option, the Optionee shall be deemed to acknowledge and agree that any Common Stock issued by the Company to the Optionee pursuant to this Agreement will be issued by the Company with the understanding that the Optionee may not sell or distribute the Common Stock unless it is registered for sale or the sale is in accordance with an available exemption from registration.

 

Non-Transferability:  The Option shall not be transferable other than by will or by the laws of descent and distribution.

 

No Right to Continued Employment:  Nothing in this Agreement or the Plan shall be interpreted or construed to confer upon the Optionee any right with respect to continuance of employment by the Company or its Affiliates, nor shall this Agreement or the Plan interfere in any way with the right of the Company to terminate the Optionee’s employment at any time.

 

Withholding of Taxes.  Upon exercise of the Option, the Optionee will pay to the Company (or make arrangements satisfactory to the Company that are in compliance with applicable laws), any U.S. federal, state or local taxes of any kind required by law to be withheld with respect of the exercise of the Option.  The Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Optionee any U.S. federal, state or local taxes of any kind required by law to be withheld with respect to the exercise of the Option.  If permitted by the Committee, the Optionee may elect to have withheld a portion of the shares of Common Stock issuable upon exercise of the Option having an aggregate Fair Market Value, on the date preceding the date of such issuance, equal to the minimum statutorily required withholding obligation.

 

Optionee Bound by the Plan:  The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions thereof.  If and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly.

 

Application of Section 16 of the Exchange Act:  The Optionee has been advised that the Optionee may be subject to the reporting requirements of Section 16(a) of the Exchange Act and the holder may be subject to insider trading restrictions and reporting requirements on the purchase and sale of securities of the Company imposed under the Exchange Act.

 

Modification of Agreement:  This Agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived, but only by a written instrument executed by the parties hereto.

 

Severability:  Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their terms.

 

Governing Law:  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Delaware without giving effect to the conflicts of laws principles thereof.

 

Successors in Interest:  This Agreement shall inure to the benefit of and be binding upon any successor to the Company.  This Agreement shall inure to the benefit of the Optionee’s legal representatives.  All obligations imposed upon the Optionee and all rights granted to the Company under this Agreement shall be final, binding and conclusive upon the Optionee’s heirs, executors, administrators and successors.

 

Resolution of Disputes:  Any dispute or disagreement which may arise under, or as a result of, or in any way relate to, the interpretation, construction or application of this Agreement shall be determined by the Committee.  Any determination made hereunder shall be final, binding and conclusive on the Optionee and Company for all purposes.

 

  

  

  

IN WITNESS WHEREOF, the parties have signed this Agreement as of the date first provided above.

 

 

OVERSEAS SHIPHOLDING GROUP, INC.

 

Attest:                                                      By:    _____________________________________                                                            

Morten Arntzen

President and Chief Executive Officer

                                                                          ______________________________________

Signature of “Optionee”

 

 

                                                                          ______________________________________

Name of “Optionee”

 

 

 

Please retain this copy for your records.

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