Document:

Exhibit 10.1

 

TRANSITION SERVICES AGREEMENT

 

This TRANSITION SERVICES
AGREEMENT (this “Agreement”) is entered into this November 30, 2016 by and between Overseas Shipholding Group,
Inc., a Delaware corporation (“OSG”), and International Seaways, Inc. (f/k/a OSG International, Inc.), a Republic
of the Marshall Islands corporation (“INSW,” and, together with OSG, each a “Party” and collectively,
the “Parties”).

 

RECITALS

 

WHEREAS, upon the terms
and subject to the conditions of a Separation and Distribution Agreement by and among OSG and INSW, dated as of November 30, 2016
(the “Separation Agreement”), at the Effective Time (as defined below), OSG will distribute all of the outstanding
shares of common stock of INSW, each without par value (the “Common Stock”), held by OSG on a pro rata basis
to holders of OSG’s common stock and warrants (the “Spin-Off”);

 

WHEREAS, the Spin-Off
will separate OSG and INSW into two distinct businesses;

 

WHEREAS, in connection
therewith OSG desires that INSW provide, through the INSW Service Providers (as defined below), to the INSW Service Recipients
(as defined below) certain transition services (the “INSW Services”) with respect to the operation of the INSW
Service Recipients following the Closing Date (as defined below), as such are more fully described in Schedule A hereto
(as such Schedule A may be amended in accordance with the terms hereof), and INSW desires to provide such INSW Services;
and

 

WHEREAS, in connection
therewith INSW desires that OSG provide, through the OSG Service Providers (as defined below), to the OSG Service Recipients (as
defined below) certain transition services (the “OSG Services”) with respect to the operation of the OSG Service
Recipients following the Closing Date, as such are more fully described in Schedule A hereto (as such Schedule A
may be amended in accordance with the terms hereof), and OSG desires to provide such OSG Services.

 

NOW, THEREFORE, in
consideration of the promises and covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereto hereby agree as follows:

 

Article
I

DEFINITIONS

 

1.1         Capitalized
terms used but not otherwise defined herein shall have the meanings assigned to such terms, either directly or indirectly, by cross-reference
to the Separation Agreement, as it may be amended from time to time in accordance with the terms thereof. The following capitalized
terms shall have the meanings set forth below:

 

“Affiliate” of a specified
person means a person who, directly or indirectly, through one or more intermediaries controls, is controlled by, or is under common
control with, such

 

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specified person.
It is expressly agreed that, prior to, at and after the Effective Time, for purposes of this Agreement, (a) no member of the OSG
Group (as defined in the Separation Agreement) shall be deemed to be an Affiliate of any member of the INSW Group (as defined
in the Separation Agreement) and (b) no member of the INSW Group shall be deemed to be an Affiliate of any member of the OSG Group.

 

“Agreement” shall have
the meaning assigned thereto in the preamble.

 

“Closing Date” shall
mean the date on which the Spin-Off contemplated by the Separation Agreement is consummated.

 

“Control” (including
the terms “controlled by” and “under common control with”) means the possession, directly
or indirectly, or as trustee or executor, of the power to direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, as trustee or executor, by contract or credit arrangement or otherwise.

 

“Customer Information”
shall have the meaning assigned thereto in Section ‎4.1(b).

 

“Dedicated Employee”
shall have the meaning assigned thereto in Section ‎7.14.

 

“Dispute Escalation Notice”
shall have the meaning assigned thereto in Section ‎2.9(f).

 

“Effective Time” shall
mean the time that the Spin-Off is consummated.

 

“End Date” shall have
the meaning set forth in Section ‎2.8.

 

“Final Coordinator” shall
have the meaning assigned thereto in Section ‎2.9(a).

 

“Force Majeure Event”
means any act of God, fire, flood, storm or explosion; any strike, lockout or other material labor disturbance; any material shortage
of facilities, labor, materials or equipment; any delay in transportation, breakdown or accident; any Law; any riot, war, act of
terror, rebellion or insurrection; any embargo or fuel or energy shortage; any material interruption in telecommunications, Internet
or utilities services; or any other event, in each case beyond the control of a Party and that actually prevents, hinders or delays
such Party from performing its obligations under this Agreement.

 

“Governmental Authority”
means any supra national, national, federal, state or local governmental, regulatory, judicial or administrative authority, agency
or commission, or securities or broker-dealer industry self-regulatory organization.

 

“INSW” shall have the
meaning assigned thereto in the preamble.

 

“INSW Data” means all
data that comprises part of the INSW Assets (as defined in the Separation Agreement).

 

“INSW Migration Services”
shall have the meaning assigned thereto in Section ‎6.7.

 

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“INSW Services” shall
have the meaning assigned thereto in the recitals.

 

“INSW Service Provider”
means each entity providing INSW Services.

 

“INSW Service Recipient”
means OSG and certain of its Affiliates.

 

“INSW Transition” shall
have the meaning assigned thereto in Section ‎6.7.

 

“Interest Rate” means
a rate equal to the rate of interest publicly announced by Citibank N.A. in the City of New York from time to time during such
period, as such bank’s prime lending rate.

 

“Law” means any statute,
law, rule, regulation, requirement, ordinance, decree, directive, order, writ, judgment, interpretation, stipulation, determination,
award, injunction, temporary restraining order, cease and desist order or other order promulgated by any Governmental Authority,
or any capital plan, supervisory agreement or memorandum of understanding with any Governmental Authority.

 

“Liabilities” means,
with respect to any Person, any and all liabilities, and obligations of such Person, whether absolute, accrued, contingent, reflected
on a balance sheet (or in the notice thereto) or otherwise, including those arising under or in connection with any Law, action,
order, and those arising under any contract, commitment or undertaking and including tax liabilities.

 

“Licensed Space” shall
have the meaning set forth in Section ‎2.10.

 

“Loss” shall mean any
and all losses, Liabilities, claims, damages, obligations, payments, costs and expenses (including any and all Liabilities, costs
and expenses associated with any actions and reasonable attorneys’ fees and expenses in connection therewith); provided,
that the foregoing does not include any Loss arising out of or relating to any claim for indirect, incidental, special, consequential
or punitive damages, or, without limitation, property damage or lost profits.

 

“Materials” shall have
the meaning assigned thereto in Section ‎6.6.

 

“Migration Services”
shall have the meaning assigned thereto in Section ‎6.7.

 

“Omitted Service” shall
have the meaning assigned thereto in Section ‎2.3.

 

“OSG” shall have the
meaning assigned thereto in the preamble.

 

“OSG Data” means all
data that comprises part of the OSG Assets (as defined in the Separation Agreement).

 

“OSG Migration Services”
shall have the meaning assigned thereto in Section ‎6.7.

 

“OSG Services” shall
have the meaning assigned thereto in the recitals.

 

“OSG Service Provider”
means each entity providing OSG Services.

 

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“OSG Service Recipient”
means INSW and certain of its Affiliates.

 

“OSG Transition” shall
have the meaning assigned thereto in Section ‎6.7.

 

“Party” or “Parties”
shall have the meaning assigned thereto in the preamble.

 

“Person” shall mean any
individual, corporation, limited liability company, partnership, firm, joint venture, association, joint-stock company, trust,
unincorporated organization or any other entity or organization, including, without limitation, any Governmental Authority.

 

“Representative” shall
have the meaning assigned thereto in Section ‎4.1(a).

 

“Separation Agreement”
shall have the meaning assigned thereto in the recitals.

 

“Service Coordinators”
shall have the meaning assigned thereto in Section ‎2.9(a).

 

“Service Extension Request”
shall have the meaning assigned thereto in Section ‎6.3(b).

 

“Shortfall Notice” shall
have the meaning assigned thereto in Section ‎2.5(b).

 

“Significant Services Shortfall”
shall have the meaning assigned thereto in Section ‎2.5(b).

 

“Term” shall have the
meaning assigned thereto in Section ‎6.1.

 

“Transition” shall have
the meaning assigned thereto in Section ‎6.7.

 

1.2         Interpretation;
Certain Definitions. When a reference is made in this Agreement to an Article, Section, Schedule or Exhibit, such reference
shall be to an Article or Section of, or a Schedule or an Exhibit to, this Agreement, unless otherwise indicated. The table of
contents and headings for this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement. Whenever the words “include”, “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement. All terms defined in this Agreement shall have the defined meanings when used
in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained
in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the
feminine and neuter genders of such term. Any statute defined or referred to herein or in any agreement or instrument that is referred
to herein means such statute as from time to time amended, modified or supplemented, including (in the case of statutes) by succession
of comparable successor statutes. References to a person are also to its permitted successors and assigns. In the event an ambiguity
or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.

 

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Article
II

TRANSITION SERVICES

 

2.1         INSW
Services. During the term of this Agreement, INSW shall provide, or shall cause one or more INSW Service Providers to provide,
to the INSW Service Recipients as set forth in Schedule A hereto the INSW Services, as such INSW Services are more particularly
described in Schedule A attached hereto, upon the terms and subject to the conditions of this Agreement and such Schedule
A.

 

2.2         OSG
Services. During the term of this Agreement, OSG shall provide, or shall cause one or more OSG Service Providers to provide,
to the OSG Service Recipients as set forth in Schedule A hereto the OSG Services, as such OSG Services are more particularly
described in Schedule A attached hereto, upon the terms and subject to the conditions of this Agreement and such Schedule
A.

 

2.3         Omitted
Services. Upon discovery by OSG or INSW, as the case may be, that a service that (a) was provided by INSW or OSG, as the case
may be prior to the Effective Time, (b) is reasonably necessary to conduct the business of OSG or INSW, as the case may be, (c)
would be commercially reasonable and not a violation of applicable Law for such service to be provided by OSG or INSW or an entity
unaffiliated with OSG or INSW, as the case may be, and (d) has been inadvertently omitted from Schedule A (an “Omitted
Service”), OSG or INSW shall so notify the Service Coordinators (as defined in Section ‎2.9(a))
and, (i) if the Service Coordinators agree in good faith that the service constitutes an Omitted Service, the Parties will promptly
amend Schedule A to add the Omitted Service and the relevant OSG Service Provider or INSW Service Provider shall begin rendering
the Omitted Service as soon as reasonably practicable and (ii) if such Omitted Service is not reflected in the payment amounts
set forth on the Schedules, the agreed upon amount (based on past practice, but taking into account any change in the volume of
such Omitted Service provided) shall be added to the amended Schedule. If the Service Coordinators cannot reach an agreement within
five Business Days following receipt of a notification pursuant to this Section ‎2.3,
the matter shall be escalated in accordance with the escalation provisions set forth in Section ‎2.9.

 

2.4         Additional
Services. From time to time, one or more INSW Service Recipients or OSG Service Recipients may request additional services
by providing OSG or INSW, as the case may be, with reasonable prior written notice. Upon mutual agreement between OSG and INSW,
Schedule A shall be amended to include such additional services.

 

2.5         Standard
of Performance for INSW Services and OSG Services.

 

(a)          INSW
shall provide, or shall cause to be provided, the INSW Services in a manner and at a level that is consistent, in all material
respects, with the manner and level at which such INSW Services were provided to the INSW Service Recipients prior to the Effective
Time. OSG shall provide, or shall cause to be provided, the OSG Services in a manner and at a level that is consistent, in all
material respects, with the manner and level at which such OSG Services were provided to the OSG Service Recipients prior to the
Effective Time.

 

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(b)         The
Parties acknowledge that any material failure by an INSW Service Provider or an OSG Service Provider to perform the INSW Services
or OSG Services or any material interruption or material deterioration in the standard of performance required hereby, may result
in significant harm to OSG and the INSW Service Recipients or INSW and the OSG Service Recipients, as the case may be. If either
Party provides the other Party’s Service Coordinator with written notice (a “Shortfall Notice”) of the
occurrence of any Significant Services Shortfall (as defined below), the applicable INSW Service Provider or OSG Service Provider,
as the case may be, shall take the actions required by Section ‎5.3 of this Agreement
within five Business Days from the date of such notice. If the applicable INSW Service Provider or OSG Service Provider, as the
case may be, fails to remedy such Significant Services Shortfall as required by this Section ‎2.5(b),
the Party delivering the Shortfall Notice may escalate the matter for resolution through the escalation procedures set forth in
Section ‎2.9 and the Parties and the applicable INSW Service Provider or OSG Service
Provider shall promptly implement any remedy determined in accordance with such Section ‎2.9.
For purposes of this Section ‎2.5(b), a “Significant Services Shortfall”
shall be deemed to have occurred if the quality or performance of INSW Services or INSW Services, as the case may be, provided
hereunder falls materially below the standard required by Section 2.5(a) hereof.

 

2.6         Interruption
of Services. If, due to a Force Majeure Event, INSW, OSG, an INSW Service Provider or an OSG Service Provider is unable, wholly
or partially, to perform its obligations hereunder, then INSW or OSG, as the case may be, shall be relieved of liability and shall
suffer no prejudice for failing to perform or comply during the continuance and to the extent of such whole or partial inability
to perform its obligations hereunder so caused by such Force Majeure Event. INSW or OSG shall or shall cause the applicable INSW
Service Provider(s) or OSG Service Provider(s) to use commercially reasonable efforts to remedy as soon as practicable the situation
caused by such Force Majeure Event and remove, so far as possible and as soon as practicable, the cause of its inability to perform
or comply.

 

2.7         Access.
The INSW Service Recipients and OSG Service Recipients shall, and shall cause any applicable Affiliates to, make available on a
timely basis to INSW and to each INSW Service Provider or to OSG and to each OSG Service Provider, as the case may be, such information
reasonably requested by such INSW Service Provider or OSG Service Provider as is necessary to enable INSW and such INSW Service
Provider or OSG and such OSG Service Provider to provide the INSW Services or OSG Services. The INSW Service Recipients and OSG
Service Recipients shall, and shall cause any applicable Affiliates to, provide to INSW and to the INSW Service Providers or to
OSG and to the OSG Service Providers, as the case may be, reasonable access to their premises and the systems, software and networks
located therein, to the extent necessary for the purpose of providing the INSW Services or OSG Services.

 

2.8         Records
Relating to the INSW Services and OSG Services. INSW and OSG shall maintain, and shall cause the INSW Service Providers or
the OSG Service Providers, as the case may be, to maintain, records of all receipts, invoices, reports and other documents relating
to the INSW Services or the OSG Services in accordance with applicable Law and their standard practices and procedures, consistently
applied. Each of OSG and INSW shall have the right to inspect and, at its expense, copy such records during the regular office
hours of INSW or the INSW Service Providers or OSG or the OSG Service Providers, as the case may be. OSG or

 

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INSW, as the case may
be, shall give reasonable prior notice of any such inspection or copying request. Each Party and the INSW Service Providers or
OSG Service Providers, as the case may be, shall retain such accounting records and make them available to any auditors retained
by the other Party for the later of (a) 12 months after the term of this Agreement and (b) the period required by Law (the “End
Date”). If the other Party shall request in writing prior to the End Date that any of the foregoing records and other
documents be delivered to such requesting Party, the records and other documents shall be delivered as was requested, at the expense
of the requesting Party.

 

2.9         Service
Coordinators.

 

(a)          INSW
and OSG shall each nominate (i) a representative to act as the primary contact persons with respect to the performance of the INSW
Services and OSG Services (the “Service Coordinators”) and (ii) a representative to act as final decision-makers
in the event that the Service Coordinators cannot resolve a dispute or problem in the course of the delivery of the INSW Services
and/or OSG Services (“Final Coordinators”). The initial Service Coordinators shall be the Controller of INSW
and the Controller of OSG; and initial Final Coordinators shall be Lois K. Zabrocky for INSW and Samuel H. Norton for OSG.

 

(b)         Except
as specifically set forth in this Agreement, each Service Coordinator will have the authority and responsibility to:

 

(i)           oversee
matters relating to the respective appointing Party that are set out in this Agreement;

 

(ii)          represent
the appointing Party in relation to this Agreement and make appropriate decisions on day-to-day issues;

 

(iii)         coordinate
the technical aspects of the INSW Services or the OSG Services, as the case may be, and consult on the operation and management
of the INSW Services or the OSG Services, as the case may be; and

 

(iv)        monitor
the appointing Party’s compliance with its obligations under this Agreement and review the performance of the INSW Services
and the OSG Services.

 

(c)          The
Parties shall cause the Service Coordinators to meet with such frequency as is necessary to discuss the performance of the INSW
Services and the OSG Services and concerns of the Parties or a Party regarding the provision of and payment for same, potential
changes to systems or personnel used to perform the INSW Services or the OSG Services, as the case may be, expenses other than
those specifically included in the fees and expenses provided for on Schedule A, as the case may be, and the status of the
Parties’ transition efforts to eliminate their need to receive the INSW Services or the OSG Services, as the case may be,
among other issues. The Final Coordinators will meet as required pursuant to this Agreement.

 

(d)         Unless
INSW and OSG otherwise agree, all communications relating to this Agreement, the INSW Services and the OSG Services will be directed
to the Service

 

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 Coordinators. Each Party may treat an act of a Service Coordinator or Final Coordinator of another Party as being
authorized by such Party without inquiring behind such act or ascertaining whether such Service Coordinator or Final Coordinator
had authority to so act.

 

(e)          Each
Party shall have the right at any time and from time to time to replace its Service Coordinator or Final Coordinator by giving
notice in writing signed by an officer of such Party to the other Party setting forth the name of (i) the person to be replaced
and (ii) the replacement, and stating that the replacement is authorized to act for the Party giving notice in all matters relating
to the Agreement.

 

(f)          Should
a dispute arise under this Agreement between the Parties, either Party shall have the right to refer the dispute for resolution
to the Service Coordinators by delivering to the other Party’s Service Coordinator a written notice of such referral (a “Dispute
Escalation Notice”). Following receipt of a Dispute Escalation Notice, the Service Coordinators shall negotiate in good
faith to resolve such dispute as soon as practicable. If the Service Coordinators cannot resolve such dispute within five Business
Days, after the Dispute Escalation Notice, they shall refer the matter to the Final Coordinators, who shall negotiate in good faith
to resolve such dispute as soon as practicable. If the Final Coordinators are unable to resolve such dispute within 15 Business
Days after the date of the Dispute Escalation Notice, either Party shall have the right to commence litigation in accordance with
Section ‎7.9 hereof. The Parties agree that all discussions, negotiations and other
information exchanged between the Parties during the foregoing escalation proceedings shall be without prejudice to the legal position
of a Party in any subsequent litigation.

 

2.10       Space-sharing;
Training.

 

(a)          Certain
services, as more particularly described in Schedule A attached hereto, are provided in spaces the occupancy of which will
be temporarily shared by OSG and INSW. Accordingly, INSW hereby grants to OSG a non-transferable
license to use and occupy the spaces described in Schedule B (the “Licensed Space”) for a period between
one month and approximately nine months following the Closing Date.  INSW shall provide OSG with essential services such as
basic utility services, access to common areas, conference rooms, as well as computers and equipment, in the same manner as provided
to the tenants in the Licensed Space on the date immediately prior to the Closing Date. A license fee, as set forth in Schedule
A, shall be payable for the Licensed Space. Subject to the terms of the Agreement of Lease
between Third Avenue Tower Owner LLC, as landlord, and OSG, as tenant, dated February 4, 2016, the Licensed Space shared by OSG
and INSW should  (i) have unmistakably identifiable clear signage and (ii) be physically separated (in spaces where it is
reasonably practicable, they shall be physically separated into separate suites).

 

(b)         Subject
to Section ‎4.1(a) and in furtherance of the physical separation described in Section
2.10(a), each Party, on behalf of itself and each of its Affiliates, agrees that it shall train those directors, officers or
employees occupying such Licensed Space to (i) hold, in strict confidence, competitively sensitive materials (including pricing
information, reduction information and confidential capacity expansion), and (ii) not disclose such information to those directors,
officers or employees of the other Party.

 

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Article
III

FEES AND EXPENSES

 

3.1         Fees
and Expenses. The fees and expenses for each of the INSW Services to be provided hereunder are set forth in Schedule A
hereto and the fees and expenses for each of the OSG Services to be provided hereunder are set forth in Schedule A hereto,
in each case as such Schedule A may be amended or deemed amended, from time to time, in accordance with the terms and conditions
hereof. The Service Coordinators shall meet to review, among other things, the level of fees and expenses set forth on Schedule
A hereto, and to compare such fee and expense levels to the actual costs of providing the INSW Services and the OSG Services,
commencing two months after the Closing Date. The fees and expenses on Schedule A shall be adjusted as agreed by the Service
Coordinators as a result of such review for INSW Services and OSG Services involved after the date of such determination. Disputes
in connection with such review shall be resolved in accordance with Section ‎2.9.
Schedule A shall be amended, or deemed amended, promptly following any such determination made pursuant to this Section
‎3.1 (including any determination reached following any dispute resolution proceeding
pursuant to Section ‎2.9).

 

3.2         Billing
and Payment; No Set-off; Advance Payment for Disbursements.

 

(a)         Amounts
payable in respect of INSW Services or OSG Services under this Agreement shall be invoiced to OSG or INSW, as the case may be,
monthly in arrears and paid to INSW or OSG, as the case may be, as directed, which amounts shall be due within 10 days after the
date of invoice. All amounts due and payable hereunder shall be invoiced and, except as set forth in Schedule A hereto,
paid in U.S. dollars without offset, set-off, deduction or counterclaim, however arising. Any such invoice shall set forth information
in reasonable detail regarding such amounts due and payable.

 

(b)         An
INSW Service Provider or OSG Service Provider, as applicable, shall not be responsible for making any disbursement or other payment
on behalf of the INSW Service Recipient or OSG Service Recipient, as applicable (e.g., to a third party supplier), unless the INSW
Service Recipient or OSG Service Recipient, as applicable, has advanced to the INSW Service Provider or OSG Service Provider, as
applicable, the amount to be disbursed or paid.

 

3.3         Additional
Costs.

 

(a)          OSG
shall reimburse INSW for the costs designated in Schedule A as reimbursable by OSG. INSW shall reimburse OSG for the costs
designated in Schedule A as reimbursable by INSW.

 

(b)         The
Parties acknowledge and agree that, except as otherwise set forth on a Schedule hereto, the INSW Services and the OSG Services
and the amounts set forth as payable in respect of such INSW Services or such OSG Services do not include the cost of (i) recruiting,
hiring or retaining additional employees in the event employees providing the INSW Services or 

 

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 OSG Services on the
date hereof are determined by the Service Coordinators to be inadequate to provide the level of INSW Services or OSG
Services, as the case may be, required pursuant to this Agreement (and for the avoidance of doubt, such amounts do include
the cost of hiring replacement employees for employees who cease to be employed by the applicable INSW Service Provider or
OSG Service Provider during the term of this Agreement) or (ii) training employees of the INSW Service Recipient or OSG
Service Recipient, as the case may be, or otherwise facilitating the migration (including the Migration Services (as defined
below)) or transition of assets or capabilities for the INSW Service Recipient or OSG Service Recipient to be able to operate
its business without the need for the INSW Services or the OSG Services, as the case may be. In the event any such
recruiting, hiring, training or facilitation of the migration (including the Migration Services (as defined below)) or
transition of assets or capabilities is required by any Party, such request shall be referred to the Service Coordinators who
shall determine whether such request shall be fulfilled and the terms and conditions thereof.

 

3.4         Late
Payments. Late payments shall bear interest at a rate per annum equal to the Interest Rate as of the date of each such invoice
plus 2%.

 

3.5         Taxes.
The fees for the INSW Services set forth on Schedule A and the OSG Services set forth on Schedule A are exclusive
of taxes. Upon notice from the INSW Service Provider or OSG Service Provider of the amount of any tax required to be withheld,
the INSW Service Recipient or OSG Service Recipient, as the case may be, shall withhold such amount from payments made pursuant
to this Agreement, and the INSW Service Recipient or OSG Service Recipient, as the case may be, shall pay such taxes to the applicable
taxing authorities. The INSW Service Recipient or OSG Service Recipient shall promptly furnish to the INSW Service Provider or
OSG Service Provider such evidence as may be required by the applicable taxing authorities to establish that any such tax has been
paid by the INSW Service Recipient or OSG Service Recipient to assist in obtaining any tax credits for the amounts withheld from
payments pursuant to this Agreement. The INSW Service Recipient or OSG Service Recipient shall pay to the applicable INSW Service
Provider or OSG Service Provider the amount of any applicable sales tax, use or service tax, value-added tax, goods and services
tax or any other similar taxes that such INSW Service Provider or OSG Service Provider may be required to collect from such INSW
Service Recipient or OSG Service Recipient in connection with such INSW Service Provider’s or OSG Service Provider’s
performance pursuant to this Agreement, except for any franchise tax, withholding tax (as described above) or any tax imposed on
such INSW Service Provider’s or OSG Service Provider’s net income. Such INSW Service Provider or OSG Service Provider
shall identify any such tax as a separate line item on each invoice, unless taxes are required under the law of the relevant jurisdiction
to be included in the price.

 

 

Article
IV

CONFIDENTIALITY

 

4.1         Confidentiality
Obligations.

 

(a)          Each
Party acknowledges in connection with the provision of INSW Services or OSG Services hereunder (i) that such Party may have in
its possession and/or may receive information of the other Party that is not available to the general public, and (ii) that such

 

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information may constitute, contain or
include material non-public information of the other Party. Subject to Section ‎4.1(b),
INSW, on behalf of itself and each of its Affiliates, and OSG, on behalf of itself and each of its Affiliates, agrees to hold,
and to cause its respective directors, officers, employees, agents, third party contractors, vendors, INSW Service Providers,
OSG Service Providers, accountants, counsel and other advisors and representatives (collectively, “Representatives”)
to hold, in strict confidence, with at least the same degree of care that such Party applies to its own confidential and proprietary
information pursuant to its applicable policies and procedures in effect as of the Closing Date, but not less than reasonable
care, all information concerning the other Party (or its business) and such other Party’s Affiliates (or their respective
businesses) that is either in its possession (including information in its possession prior to the Closing Date) or furnished
by the other Party or the other Party’s Affiliates or their respective Representatives at any time pursuant to this Agreement,
and will not use such information other than for such purposes as may be permitted hereunder, except, in each case, to the extent
that such information: (1) is or becomes available to the general public, other than as a result of a disclosure by such Party
or its Affiliates or any of their respective Representatives in breach of this Agreement; (2) was available to such Party or its
Affiliates or becomes available to such Party or its Affiliates on a non-confidential basis from a source other than the other
Party hereto; provided, that the source of such information was not known by such Party to be bound by a confidentiality obligation
with respect to such information, or otherwise prohibited from transmitting the information to such Party or its Affiliates by
a contractual, legal or fiduciary obligation; or (3) is independently known or generated by such Party without use of or reference
to any proprietary or confidential information of the other Party. The foregoing exceptions do not apply to the disclosure of
Customer Information (as defined below), which may not be disclosed except in accordance with applicable Law.

 

(b)         “Customer
Information” is defined as all information owned or possessed by a Party about customers of such Party or any of its
Affiliates, including, but not limited to, name, address, telephone number, email address, account or policy information, and any
list or grouping of customers and any other type of information deemed “nonpublic” and protected by applicable privacy
Law.

 

(c)          Each
Party shall comply with any applicable Law and/or regulations with respect to privacy and data security relative to Customer Information
and shall implement and maintain an effective information security program to protect the other Party’s Customer Information
in compliance with all applicable privacy Law, which program shall include administrative, technical, and physical safeguards,
as they may be reasonably required:

 

(i)           to
ensure the security and confidentiality of Customer Information;

 

(ii)          to
protect against any anticipated threats or hazards to the security or integrity of such Customer Information; and

 

(iii)         to
protect against unauthorized access to or use of Customer Information which could result in substantial harm or inconvenience to
the owner of such Customer Information or its Affiliates, or to customers of any of them.

 

    	 	11	 

     

    

 

(d)         Notwithstanding
anything herein to the contrary, in the event that either Party or any of its Representatives either determines on the advice of
its counsel that it is required to disclose any information pursuant to applicable Law or the rules or regulations of a Governmental
Authority or receives any demand under lawful process or from any Governmental Authority to disclose or provide information of
the other Party that is subject to an obligation of confidentiality, such Party shall, if possible, notify the other Party prior
to disclosing or providing such information and, if the other Party so requests, cooperate at the expense of the requesting Party
in seeking any reasonable protective arrangements reasonably requested by such other Party. In the event that a protective arrangement
is not obtained, the Person that received such request (i) may thereafter disclose or provide such information to the extent required
by such Law (as so advised by counsel) or by lawful process or such Governmental Authority, without liability therefor and (ii)
shall exercise commercially reasonable efforts to have confidential treatment accorded to any such information so provided or furnished.

 

Article
V

NO WARRANTY; LIMITATION OF

LIABILITY; INDEMNIFICATION; ESCALATION

 

5.1         Disclaimer
of Warranty by INSW and OSG. EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT, THE INSW SERVICES AND OSG SERVICES TO BE PURCHASED
UNDER THIS AGREEMENT ARE PROVIDED AS IS, WHERE IS, WITH ALL FAULTS, AND WITHOUT WARRANTY OR CONDITION OF ANY KIND, EXPRESS OR IMPLIED,
INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR ANY OTHER WARRANTY WHATSOEVER.

 

5.2         Third
Parties and Services. INSW and OSG shall cooperate to obtain all consents sufficient to enable the INSW Service Providers and
the OSG Service Providers to perform the INSW Services and the OSG Services, as the case may be, in accordance with this Agreement
for any third party software or other intellectual property related to the provision of the INSW Services, and the OSG Services,
as the case may be. OSG and INSW shall cooperate in obtaining all such required consents related to the provision of the INSW Services
and OSG Services. OSG and INSW shall bear the respective costs of obtaining such consents to the extent such consents are identified
prior to the date hereof. Any such costs identified after the date hereof shall be borne by the parties in such proportion as they
may agree. In the event that any such consent is not obtained, then, unless and until such consent is obtained, during the term
of the applicable INSW Service or OSG Service, the Parties shall cooperate with each other in achieving a reasonable alternative
arrangement for the provision of such INSW Service or OSG Service. Failure to obtain any such consents, and any resulting failure
to provide INSW Services or OSG Services hereunder, shall not be deemed a breach hereof.

 

5.3         Obligation
to Re-perform INSW Services and OSG Services. In the event of any breach of this Agreement by INSW or OSG or any INSW Service
Provider or OSG Service Provider with respect to any failure by INSW or a INSW Service Provider, or OSG or a OSG Service Provider,
as applicable, to provide any INSW Service or OSG Service, as the case may be, in accordance with the terms of this Agreement,
INSW or OSG, as the case may be, shall use

 

    	 	12	 

     

    

 

commercially reasonable
efforts, or shall cause the applicable INSW Service Provider or OSG Service Provider to use commercially reasonable efforts to,
correct in all material respects such error or defect or re-perform in all material respects such INSW Service or OSG Service
at the request of OSG and at the expense of INSW (with respect to an INSW Service) or at the request of INSW and at the expense
of OSG (with respect to an OSG Service). To be effective, any such request by OSG or INSW must (a) specify in reasonable detail
the particular error or defect and (b) be made no more than 60 days from the date such error or defect was discovered by such
Party or should have been discovered by such Party after reasonable inquiry.

 

5.4         Indemnity.

 

(a)          INSW
shall indemnify, defend and hold harmless OSG and its Affiliates, against all claims, liabilities, damages, losses or expenses,
whether actual or alleged by a third party to the extent arising out of the gross negligence, recklessness, willful misconduct,
willful breach of contract or violations of Law by INSW, its Affiliates, any INSW Service Provider, or any of their employees,
agents, subcontractors or assigns in the performance of this Agreement or while on, entering or leaving the property of OSG or
its Affiliates.

 

(b)         INSW
shall indemnify, defend and hold harmless OSG and its Affiliates, against all claims, liabilities, damages, losses or expenses,
in connection with the provision of the OSG Services, whether actual or alleged by a third party, to the extent such claims, liabilities,
damages, losses or expenses do not arise out of the gross negligence, recklessness, willful misconduct, willful breach of contract
or violations of Law by OSG, its Affiliates, any INSW Service Provider or any of their employees, agents, subcontractors or assigns
in the performance of this Agreement or while on, entering or leaving the property of INSW or its Affiliates.

 

(c)          OSG
shall indemnify, defend and hold harmless INSW and its Affiliates, against all claims, liabilities, damages, losses or expenses,
whether actual or alleged by a third party to the extent arising out of the gross negligence, recklessness, willful misconduct,
willful breach of contract or violations of Law by OSG, its Affiliates, any OSG Service Provider, or any of their employees, agents,
subcontractors or assigns in the performance of this Agreement or while on, entering or leaving the property of INSW or its Affiliates.

 

(d)         OSG
shall indemnify, defend and hold harmless INSW and its Affiliates, against all claims, liabilities, damages, losses or expenses,
in connection with the provision of the INSW Services, whether actual or alleged by a third party, to the extent such claims, liabilities,
damages, losses or expenses do not arise out of the gross negligence, recklessness, willful misconduct, willful breach of contract
or violations of Law by INSW, its Affiliates, any INSW Service Provider or any of their employees, agents, subcontractors or assigns
in the performance of this Agreement or while on, entering or leaving the property of OSG or its Affiliates.

 

5.5         LIMITATION
OF LIABILITY. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY:

 

(a)          THE
MAXIMUM LIABILITY OF EITHER PARTY TO THE OTHER PARTY AND ITS AFFILIATES (AND THEIR RESPECTIVE DIRECTORS, OFFICERS,

 

    	 	13	 

     

    

 

AGENTS, VENDORS AND
EMPLOYEES) WITH RESPECT TO ANY AND ALL CLAIMS ARISING IN CONNECTION WITH THE PROVISION OF THE INSW SERVICES BY INSW OR ANY INSW
SERVICE PROVIDER OR THE PROVISION OF THE OSG SERVICES BY OSG OR ANY OSG SERVICE PROVIDER, REGARDLESS OF THE THEORY UPON WHICH
THE LIABILITY IS PREMISED, SHALL NOT EXCEED THE AGGREGATE FEES PAID AND PAYABLE TO SUCH PARTY UNDER THIS AGREEMENT, BUT FOR THE
AVOIDANCE OF DOUBT, NO PARTY SHALL PROVIDE INDEMNIFICATION FOR FEES PAYABLE UNDER THIS AGREEMENT IF SUCH FEES ARE ALSO FORGIVEN
OR DEEMED NOT TO BE PAYABLE;

 

(b)         IN
NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ITS AFFILIATES (OR THEIR RESPECTIVE DIRECTORS, OFFICERS, AGENTS, INSW
SERVICE PROVIDERS, OSG SERVICE PROVIDERS OR EMPLOYEES) FOR INCIDENTAL, INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, IN
CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND EACH
PARTY HEREBY WAIVES ON BEHALF OF ITSELF, ITS AFFILIATES AND THEIR RESPECTIVE DIRECTORS, OFFICERS, AGENTS, INSW SERVICE PROVIDERS,
OSG SERVICE PROVIDERS OR EMPLOYEES ANY CLAIM FOR SUCH DAMAGES INCLUDING ANY CLAIM FOR LOST PROFITS, WHETHER ARISING IN CONTRACT,
TORT OR OTHERWISE;

 

(c)          IN
NO EVENT SHALL INSW OR OSG BE LIABLE FOR THE ACTS OR OMISSIONS OF THIRD PARTY SERVICE PROVIDERS, EXCEPT INSOFAR AS SUCH ACTS OR
OMISSIONS AROSE FROM GROSS NEGLIGENCE, RECKLESSNESS, WILLFUL MISCONDUCT, WILLFUL BREACH OF CONTRACT OR VIOLATIONS OF LAW BY INSW
OR OSG, OR SUCH DISRUPTIONS WERE EXTENDED BY THE FAILURE OF INSW OR OSG, AS APPLICABLE, TO USE COMMERCIALLY REASONABLE EFFORTS
TO RECRUIT AND TRAIN APPROPRIATE REPLACEMENT STAFF; AND

 

(d)         IT
IS ACKNOWLEDGED AND AGREED THAT NEITHER PARTY NOR ANY INSW SERVICE PROVIDER NOR OSG SERVICE PROVIDER IS PROVIDING ANY INVESTMENT,
LEGAL OR TAX ADVICE TO ANY PERSON UNDER THIS AGREEMENT AND IN NO EVENT SHALL THE PROVISION OF INSW SERVICES OR OSG SERVICES BE
CONSTRUED AS THE PROVISION OF ANY INVESTMENT, LEGAL OR TAX ADVICE TO ANY PERSON.

 

Article
VI

TERM; TERMINATION

 

6.1         Term.
This Agreement shall commence on the Closing Date and unless terminated earlier in accordance with this ‎Article
VI, will terminate on the date that is 30 days following the date on which the terms of all the INSW Services and OSG Services
have expired or been terminated (the “Term”).

 

    	 	14	 

     

    

 

6.2         Early
Termination of INSW Services or OSG Services.

 

(a)          A
INSW Service Recipient or OSG Service Recipient may, for any reason or no reason, discontinue receiving any of the INSW Services
or OSG Services, as the case may be, by giving the applicable INSW Service Provider or OSG Service Provider at least 20 days’
prior written notice of such termination, which termination shall be effective on the last day of the month in which the day that
is 20 days following the date such notice is delivered occurs. Schedule A shall be deemed amended to delete such INSW Services
or OSG Services as of such date, and this Agreement shall be of no further force and effect for such INSW Services or OSG Services.

 

(b)         In
the event that pursuant to Section ‎2.6 an INSW Service Provider or OSG Service
Provider reduces or suspends the provision of any INSW Service or OSG Service due to a Force Majeure Event and such reduction or
suspension continues for at least 15 consecutive days, the other Party may immediately terminate the applicable INSW Service or
OSG Service, upon written notice.

 

6.3         Expiration
of Services.

 

(a)         The
obligation of an INSW Service Provider or OSG Service Provider to provide an INSW Service or OSG Service, as the case may be, shall
expire and terminate on the concluding date of the period set forth under the column “Duration” in Schedule A
hereto with respect to such INSW Service or OSG Service, as the case may be (each such concluding date, an “Expiration
Date”).

 

(b)         Notwithstanding
Section 6.3(a), an INSW Service Recipient or OSG Service Recipient may, at least 30 days prior to such Expiration Date,
request that the INSW Service Provider or OSG Service Provider, as the case may be, continue to provide such INSW Service or OSG
Service, as the case may be, on a month-to-month basis following such Expiration Date (such request, a “Service Extension
Request”).

 

(c)         Within
15 days following receipt of a Service Extension Request, the INSW Service Provider or OSG Service Provider, as applicable, shall
notify the INSW Service Recipient or OSG Service Recipient:

 

(i)           whether
the INSW Service Provider or OSG Service Provider, as applicable, is willing to continue providing such INSW Service or OSG Service,
as the case may be, following the Expiration Date and whether the INSW Service Provider or OSG Service Provider will be providing
such INSW Services or OSG Services to itself or any of its Affiliates following the Expiration Date; or

 

(ii)          that
the INSW Service Provider or OSG Service Provider, as applicable, is not willing to continue providing such INSW Service or OSG
Service, as the case may be, following the Expiration Date.

 

(d)         In
the event that an INSW Service Provider or OSG Service Provider delivers a notice pursuant to Section ‎6.3(c)(i)
and (i) it will be providing services equivalent to

 

    	 	15	 

     

    

 

such INSW Services or
OSG Services to itself or any of its Affiliates following the Expiration Date, the INSW Service Provider or OSG Service Provider
shall continue to provide such INSW Service or OSG Service, as the case may be, on a month-to-month basis and otherwise on the
terms and conditions set forth in this Agreement, or (ii) it will not be providing services equivalent to such INSW Service or
OSG Service to itself or any of its Affiliates following the Expiration Date, the INSW Service Provider or the OSG Service Provider
shall continue to provide such INSW Service or OSG Service, as the case may be, on a month-to-month basis and the INSW Service
Recipient or OSG Service Recipient shall pay a fee with respect to the Expense Category that includes such INSW Service or OSG
Service equal to the corresponding amount set forth under the column of the Legend in Schedule A hereto captioned “Total
Cost” or as otherwise agreed by the Service Coordinators.

 

(e)          In
the event that an INSW Service Provider or OSG Service Provider delivers a notice pursuant to Section ‎6.3(c)(ii)
or fails to deliver any notice in response to a Service Extension Request, the applicable INSW Service or OSG Service shall terminate
on the Expiration Date set forth in Schedule A hereto. Schedule A shall be deemed amended to delete such INSW Service
or OSG Service as of such date, and this Agreement shall be of no further force and effect for such INSW Service or OSG Service.

 

(f)          Any
INSW Services or OSG Services that are provided on a month-to-month basis pursuant to this Section ‎6.3
may be terminated by either party upon at least 20 days’ prior written notice of such termination, which termination shall
be effective on the last day of the month in which the day that is 20 days following the date such notice is delivered occurs.
Schedule A shall be deemed amended to delete such INSW Service or OSG Service as of such date, and this Agreement shall
be of no further force and effect for such INSW Service or OSG Service.

 

6.4         Breach
of Agreement. Subject to ‎Article V, if either Party shall cause or
suffer to exist any material breach of any of its obligations under this Agreement, including any failure to make payments when
due, and that Party does not cure such default in all material respects within 30 days after receiving written notice thereof from
the non-breaching Party, the non-breaching Party may terminate each affected INSW Service on Schedule A or OSG Service on
Schedule A, including the provision of INSW Services or OSG Services pursuant thereto, immediately by providing written
notice of termination; provided, that, for the avoidance of doubt, failure to pay fees or reimburse costs in respect of any INSW
Services or OSG Services shall be deemed to affect all INSW Services or OSG Services, as the case may be.

 

6.5         Sums
Due. In the event of a termination (including any termination pursuant to Section ‎6.2)
or expiration of this Agreement (or INSW Services or OSG Services), each Party shall be entitled to the payment or reimbursement
of, and the other Party shall pay and reimburse such Party, within 30 days of receiving an invoice, all amounts due and payable
to such Party under this Agreement.

 

6.6         Return
of Materials. Upon the termination or expiration of any INSW Service or OSG Service (including in connection with the expiration
of this Agreement) with respect to which a Party or an Affiliate thereof (including a INSW Service Provider or OSG Service

 

    	 	16	 

     

    

 

Provider, as the case
may be) holds books, records, files, databases, confidential information or computer software or hardware (including, without
limitation, current and archived copies of computer files) owned or leased by the other Party or an Affiliate thereof and used
in connection with the provision of an INSW Service or OSG Service (the “Materials”), such Party will return,
or caused to be returned, or, at the option of the other Party, destroy and certify the destruction of, all such Materials promptly
upon the termination or expiration of such INSW Service or OSG Service, but not later than 30 days after such termination or expiration.
In the case of computer files or data, such Materials shall be delivered to such other Party or its Affiliate in a format usable
by such other Party or its Affiliate, as the case may be.

 

6.7         Migration
Services. The INSW Service Providers shall provide to OSG and its Affiliates the migration services identified as such in Schedule
A (the “INSW Migration Services”) in connection with the transition from the INSW Service Providers’
performance of the INSW Services to OSG’s performance of such services (the “INSW Transition”). The OSG
Service Providers shall provide to INSW and its affiliates the migration services identified as such in Schedule A (the
“OSG Migration Services” and collectively with the INSW Migration Services, the “Migration Services”)
in connection with the transition from OSG Service Providers’ performance of the OSG Services to INSW’s performance
of such services (the “OSG Transition” and collectively with the INSW Transition, the “Transition”).
In the absence of Migration Services on Schedule A, the Parties shall negotiate in good faith the Migration Services to
be provided. The Parties shall cooperate with and assist each other in connection with the Transition to the extent commercially
reasonable, taking into account the need to minimize both the cost of such Transition and the disruption to the ongoing business
activities of the Parties. The Parties acknowledge that the foregoing may include, among other things, negotiating, entering into
and performing, the provision of assistance reasonably requested by OSG or INSW in connection with the Transition, including separation
of data, migration of historical data, migration-specific enhancements and cooperation with and assistance to third party consultants
engaged by OSG or its Affiliates or INSW or its Affiliates in connection with the foregoing. OSG shall pay INSW’s and each
INSW Service Provider’s, and INSW shall pay OSG’s and each OSG Service Provider’s, third party consultants cost
and reasonable out-of-pocket costs incurred in providing such requested assistance.

 

6.8         Effect
of Termination. Articles ‎I, ‎IV
and ‎VII and Sections ‎5.1,
‎5.3, ‎5.4, ‎5.5,
‎6.5, ‎6.6, ‎6.7
and this ‎6.8 shall survive any termination of this Agreement.

 

Article
VII

MISCELLANEOUS

 

7.1         Notices.
All notices, requests, claims, demands and other communications hereunder (except for routine communications contemplated by certain
INSW Services or OSG Services, as the case may be) shall be in writing and shall be given (and shall be deemed to have been duly
given upon receipt) by delivery in person, by overnight courier or by facsimile (with confirmation copies delivered personally
or by courier within three Business Days) to the respective Parties at the following addresses or facsimile numbers (or at such
other address for a Party as shall be specified by like notice):

 

    	 	17	 

     

    

 

If to INSW, to:

 

International Seaways, Inc. (f/k/a OSG International,
Inc.)

c/o International Seaways Ship Management LLC

600 Third Avenue, 39th Floor

New York, New York 10016

Attention: President

Fax: 212-578-1832

 

with a copy to:

 

International Seaways, Inc. (f/k/a OSG International,
Inc.)

c/o International Seaways Ship Management LLC

600 Third Avenue, 39th Floor

New York, New York 10016

Attention: General Counsel

Fax: 212-251-1180

with an additional copy to:

 

Cleary Gottlieb Steen & Hamilton LLP

One Liberty Plaza

New York, New York 10006

Attention: Jeffrey D. Karpf

Fax: (212) 225-3999

 

If to OSG, to:

 

Overseas Shipholding Group, Inc.

Two Harbour Place

302 Knights Run Avenue, Suite 1200

Tampa, Florida 33602

Attention: President

Fax: 813-221-2769

 

with additional copies to:

 

Overseas Shipholding Group, Inc.

Two Harbour Place

302 Knights Run Avenue, Suite 1200

Tampa, Florida 33602

Attention: General Counsel

Fax: 813-221-3189

 

    	 	18	 

     

    

 

and

 

Cleary Gottlieb Steen & Hamilton LLP

One Liberty Plaza

New York, New York 10006

Attention: Jeffrey D. Karpf

Fax: (212) 225-3999

 

All such notices, requests
and other communications will (a) if delivered personally to the address as provided in this section, be deemed given upon delivery,
(b) if delivered by facsimile transmission to the facsimile number as provided in this section, be deemed given upon receipt and
(c) if delivered by mail in the manner described above to the address as provided in this section, be deemed given upon receipt
(in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy
of such notice, request or other communication is to be delivered pursuant to this section). Any Party from time to time may change
its address, facsimile number or other information for the purpose of notices to that Party by giving notice specifying such change
to the other Party.

 

7.2         Entire
Agreement. This Agreement, the Separation Agreement and the Ancillary Agreements (as defined in the Separation Agreement),
together with all exhibits and schedules hereto and thereto constitute the entire agreement among the Parties with respect to the
subject matter hereof and supersedes all prior agreements and undertakings, both written and oral, among the Parties, or any of
them, with respect to the subject matter hereof.

 

7.3         Waiver.
Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no
such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such
term or condition. No waiver by any Party of any term or condition of this Agreement, in any one or more instances, shall be deemed
or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. All remedies, either
under this Agreement or by Law or otherwise afforded, will be cumulative and not alternative.

 

7.4         Amendment.
This Agreement may be amended, supplemented, modified or superseded only by a written instrument signed by duly authorized signatories
of the Parties.

 

7.5         Independent
Contractors. In performing the INSW Services or OSG Services hereunder, each INSW Service Provider or OSG Service Provider,
as the case may be, shall operate as and have the status of an independent contractor. No INSW Service Provider’s or OSG
Service Provider’s employees shall be considered employees or agents of the other Party, nor shall the employees of any Party
be eligible or entitled to any benefits, perquisites or privileges given or extended to any of the other Party’s employees
in connection with the provision of INSW Services or OSG Services. Nothing contained in this Agreement shall be deemed or construed
to create a joint venture or partnership between the Parties. No Party shall have any power to control the activities and/or operations
of the other Party. No Party shall have any power or authority to bind or commit any other Party.

 

    	 	19	 

     

    

 

7.6         Third
Party Beneficiary. The Persons listed in Sections ‎5.4(a) and ‎5.4(c)
of this Agreement are third party beneficiaries under this Agreement. Except as provided in the preceding sentence, (a) the terms
and provisions of this Agreement are intended solely for the benefit of each Party hereto and its respective successors or permitted
assigns, and (b) it is not the intention of the Parties to confer third party beneficiary rights upon any other Person.

 

7.7         No
Assignment; Binding Effect. Neither this Agreement nor any right, interest or obligation hereunder may be assigned by any Party
hereto without the prior written consent of the other Party hereto and any attempt to do so will be void, except that each Party
hereto may assign any or all of its rights, interests and obligations hereunder to an Affiliate, provided, that, any such Affiliate
agrees in writing to be bound by all of the terms, conditions and provisions contained herein, and no such assignment shall relieve
the assigning Party of its obligations hereunder. Subject to the preceding sentence, this Agreement is binding upon, inures to
the benefit of and is enforceable by the Parties hereto and their respective successors and assigns.

 

7.8         Headings.
The descriptive headings contained in this Agreement are included for convenience of reference only and shall not affect in any
way the meaning or interpretation of this Agreement.

 

7.9         Submission
to Jurisdiction; Waivers.

 

(a)          Each
of the Parties agrees that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed
in accordance with their specific terms or were otherwise breached. Subject to the prior exhaustion of the escalation provisions
in Section ‎2.9, it is accordingly agreed that in addition to any other remedy
available at Law or in equity, the Parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement
and to enforce specifically the terms and provisions of this Agreement exclusively in a state or federal court located in the Borough
of Manhattan, City of New York. In addition, each of the Parties hereby irrevocably submits to the exclusive jurisdiction of the
Federal courts and the courts of the State of New York, in each case located in the Borough of Manhattan, City of New York, for
the purpose of any action or proceeding arising out of or relating to this Agreement, and each of the Parties hereby irrevocably
agrees that all claims in respect to such action or proceeding may be heard and determined exclusively in any New York state or
federal court located in the Borough of Manhattan, City of New York. Each of the Parties agrees that a final judgment in any action
or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by Law.

 

(b)         Each
of the Parties irrevocably consents to the service of the summons and complaint and any other process in any other action or proceeding
relating to the transactions contemplated by this Agreement, on behalf of itself or its property, by personal delivery of copies
of such process to such Party. Nothing in this Section ‎7.9(b) shall affect the
right of any Party to serve legal process in any other manner permitted by Law.

 

(c)          EACH
OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM

 

    	 	20	 

     

    

 

 (WHETHER BASED ON
CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF PURCHASER OR THE COMPANY IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF.

 

7.10       Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law or public
policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party.
Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an
acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

 

7.11       Governing
Law. This Agreement and any dispute arising out of, relating to or in connection with this Agreement shall be governed by,
and construed in accordance with the laws of the State of New York.

 

7.12       Counterparts.
This Agreement may be executed and delivered (including by facsimile transmission) in two (2) or more counterparts, and by the
different Parties in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all
of which taken together shall constitute one and the same agreement.

 

7.13       Intellectual
Property and Data.

 

(a)          Each
Party shall retain ownership of their and their Affiliates’ intellectual property and data existing as of the date hereof.
Unless agreed otherwise in Schedule A, each Party hereto agrees that any intellectual property or data of the other Party
or its Affiliates or licensors made available to such Party or its Affiliates in connection with the INSW Services or OSG Services,
and any derivative works, additions, modifications, translations or enhancements thereof created by a Party or its Affiliates pursuant
to this Agreement, are and shall remain the sole property of the original owner of such intellectual property or data, provided,
that OSG shall exclusively own any and all data generated with respect to the INSW Services received under this Agreement and INSW
shall exclusively own any and all data generated with respect to the OSG Services received under this Agreement. Each of the Parties
agrees to execute and to cause its Affiliates (including any INSW Service Providers or OSG Service Providers) to execute all such
further instruments and documents and to take all such further action as the other Party may reasonably require in order to effectuate
the terms and purposes of this Agreement.

 

(b)         OSG
hereby grants to INSW a non-exclusive, royalty free, fully paid-up, non-transferable, worldwide license to use OSG Data during
the Term solely (i) to provide the INSW Services and (ii) to comply with INSW’s obligations under applicable Law with respect
to such OSG Data. INSW hereby grants to OSG a non-exclusive, royalty free, fully paid-up, non-transferable, worldwide license to
use INSW Data during the Term solely (1) to provide the OSG 

 

    	 	21	 

     

    

 

Services and (2) to comply with OSG’s obligations under applicable
Law with respect to such INSW Data.

 

7.14       Non-solicitation.
In furtherance and not in limitation of Section 8.2(a) of the Separation Agreement, the Parties agree that each will not solicit,
directly or indirectly (including by encouraging, proposing or seeking to cause any such solicitation by any other person), on
behalf of itself, its Affiliates or any other person, firm, corporation, associate or other entity, the employment of any individual
who is employed by the other immediately after the Closing Date and who provides INSW Services or OSG Services to an INSW Service
Recipient or OSG Service Recipient, as the case may be (a “Dedicated Employee”), provided that either
Party may solicit the employment of a Dedicated Employee of the other Party if such employment is to begin on or after the date
on which such Dedicated Employee ceases to provide INSW Services or OSG Services. The foregoing limitation shall expire with respect
to a Dedicated Employee upon the earlier of one year following (a) the date on which such Dedicated Employee ceases to provide
INSW Services or OSG Services and (b) the termination of this Agreement. Notwithstanding the foregoing, general solicitations of
employment published in any form of the media including the Internet or any other publication of general circulation and not specifically
directed towards any such employees shall not be deemed to constitute solicitation for purposes of this section.

 

[Signature pages follow.]

 

    	 	22	 

     

    

 

IN WITNESS WHEREOF, the Parties have executed
this Transition Services Agreement as of the date first written above.

 

	 	OVERSEAS SHIPHOLDING GROUP, INC.
	 	 	 
	 	By:	/s/ Ian T. Blackley
	 	Name:	Ian T. Blackley
	 	Title:	President and Chief Executive Officer

 

[Signature Page to the Transition Services
Agreement]

 

     

     

    

 

	 	INTERNATIONAL SEAWAYS, INC.
	 	 	 
	 	By:	/s/ Lois K. Zabrocky
	 	Name:	Lois K. Zabrocky
	 	Title:	President

 

[Signature Page to the Transition Services
Agreement]

 

     

     

    

 

SCHEDULE A

 

Transition Services; Fees and Expenses

 

     

     

    

 

OSG
Separation

 

TSA Schedule A

 

     

     

    

 

TSA Schedule A 

 

Table of Content

 

	Finance	1
	Human Resources	11
	Legal	26
	TSA Cost Estimate	27

 

    	Confidential	Page 1

     

    

 

TSA Schedule A

 

	Schedule:
    Finance	Service
    Area: Form 8-K for Spinoff, November 2016 GL Close and Bank Reporting, 2016 Form 10-K Filing

 

General Description of Services: INSW will support November
2016 GL close and November bank reporting. INSW will support the issuance of the OSG Form 10-K for the year-ended December 31,
2016. INSW will provide a completed 8-K filing for the “spinoff”. OSG will provide access to shared folders and OSG
consolidated Oracle instance to INSW, and INSW will provide access to INSW Oracle instance to enable sweep. OSG will provide Hedge
Trackers deliverable for derivative valuation to INSW.

 

Service Summary:

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    /

    Owner	 	Duration

    (Months)
	FIN-01-01	 	Support
    to close INSW GL	 	§   INSW
                                Controller and designees will provide the following services to close the INSW general ledger
                                for the month-ended November 30, 2016 and will save all supporting data to network server hosted
                                in Tampa using VPN:

        −   Review
        Results: Review of V-Ships results including budget versus actual; review of LNG and FSO JV results 

        −   Houston
        Lightering Close: Perform reconciliations, fixed asset and vessel accounting, close and reconcile payables and receivables,
        and make period end adjustments

        −   Accounting
        for Administrative Companies: Accounting for administrative companies 0021, 0022, 0023 0285, 0340, 0640, 0641, including
        payables

        −   Perform
        Vessel Accounting: Dry dock amortization; post bunker and insurance invoices

        −   Close
        and Reconcile Payables and Receivables: Post, close, and reconcile Oracle AP invoices; release ChOps disbursements;
        apply cash; bank account reconciliation; intercompany loan schedules

        −   Perform
        Accounting for Pool / Commercial Management Revenue: Revenue recognition; reconcile sales sub-ledger; run reports
        for budget v. actual, reconciliations, and pool allocations

        −   Perform
        Fixed Asset Accounting: Fixed asset subledger reconciliation; value and track assets; asset disposal; reconcile asset
        sub-ledger; vessel asset and other fixed asset rollforward; drydock rollforward; report fixed assets

        −   Derivative
        Analyses: Interest rate swap valuation and effectiveness testing for LNG and FSO JVs and INSW interest rate caps

        −   Perform
        Cost Sharing Allocation: Cost sharing allocation calculation and entry

        −   Perform
        Period End Adjustments: Prepare manual journal entries; prepare accruals; approve and post adjustments

        −   Perform
        Close Operations: Sub-ledger close; Account clearing; FX revaluations; confirm INSW results; create GL extracts, certify
        entity results, and prepare supplemental information
	 	INSW
    completes close and provides all data to OSG within 24 calendar days after Day 1	 	INSW
    Controller	 	OSG
    Controller	 	1
    month

 

    	Confidential	Page 2

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    /

    Owner	 	Duration

    (Months)
	 	 	 	 	§   INSW
                           Controller or designees will provide input (e.g., prepare documentation and support schedules, answer
                           questions, provide technical direction) as a consultant as needed by phone or email to OSG Controller
                           or designees to issue Attachment 1 to OSG’s November 2016 Bank Reporting deliverable.

        §   INSW
        Controller will ensure all activity is posted to the INSW Oracle instance where it can be consolidated into the OSG Oracle
        instance by the OSG Controller or designees

        §   The
        data feed between the INSW Oracle instance and OSG Oracle instance will be used to transmit GL data; the OSG consolidated
        Oracle instance will sweep and consolidate transactions with pre-separation effective dates from the INSW Oracle instance

        §   Service
        will be provided on a one-time basis

        §   The
        following vendors and subscriptions will be used in the delivery of the service:

        −   VShips

        −   Hedge
        Trackers

        −   Intertrust
        for Spirit and Reliance administration

        −   Cidel
        for Shirley administration

        −   Punter
        Southall for pension actuary

        −   PWC
        Inform and Deloitte Technical Library for accounting guidance

        §   The
        following technology products will be used in the delivery of the service:

        −   Oracle,
        including Discoverer and Claims Database

        −   CHoPS

        −   GLWand
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	FIN-01-02	 	Review and Input for
    Form 10-K filing	 	§   INSW
        Controller or designees will provide review and input (e.g., prepare documentation and support schedules, answer questions,
        provide technical direction) as needed by phone or email to OSG Controller or designees of areas including, but not limited
        to:

        −   Pensions

        −   APIC
        schedules

        −   Restricted
        shares, stock options, stock compensation, and capital stock

        −   Vessel
        impairment and drydock

        −   Core
        statements including staging / mapping file, statement of cash flows, and deliverables for external auditor

        −   Earnings
        per common share

        −   Taxes

        −   Accounting
        and reporting memos

        −   MD&A,
        including deliverable for external auditor

        −   Accounting
        and disclosures for discontinued operations

        §   INSW
        Controller will provide review of the following drafts of Form 10-K:

        −   First
        draft for outside counsel, external auditor, and Disclosure 
	 	INSW
    provides response or estimated response time within 1 business day of OSG question submission	 	INSW Controller	 	OSG Controller	 	4 months

 

    	Confidential	Page 3

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    /

    Owner	 	Duration

    (Months)
	 	 	 	 	Committee

        −   Second
        draft for outside counsel, external auditor, Audit Committee, Disclosure Committee, and Vintage

        §   Service
        will be provided as needed based on requests from OSG

        §   Data
        may be shared via email or posted to a network server hosted in Tampa using VPN

        §   The
        following vendors and subscriptions will be used in the delivery of the service:

        −   PWC
        Inform and Deloitte Technical Library for accounting guidance

        −   Vintage
        / Certent

        −   Third-party
        Financial Reporting Consultant

        §   The
        following technology products will be used in the delivery of the service:

        −   Oracle,
        including Discoverer and Claims

        −   CHoPS

        −   Crossfire
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	FIN-01-03	 	Preparation of OSG Form
    8-K filing	 	§   INSW
        Controller and designees will provide a completed Form 8-K, including supporting data and analysis, to meet OSG’s
        filing obligation for the trigger event “Spin off”

        §   Data
        will be provided via email or by posting to a network server hosted in Tampa using VPN within two business days after
        Day 1

        §   The
        following vendors and subscriptions may be used in the delivery of the service:

        −   Vintage
        / Certent

        −   Deloitte
        Tax

        −   PwC

        §   The
        following technology products will be used in the delivery of the service:

        −   Oracle,
        including Discoverer and Claims

        −   CHoPS

        −   Crossfire
	 	INSW
    provides completed Form 8-K within 2 business days after Day 1	 	INSW Controller	 	OSG Controller	 	2 weeks
	 	 	 	 	 	 	 	 	 	 	 	 	 
	FIN-01-04	 	Access to INSW Oracle
    instance for sweep	 	§   INSW
        CIO or designees will provide access so that the OSG consolidated Oracle instance may sweep and consolidate transactions
        from the INSW Oracle instance outside of planned downtime. Downtime will be jointly coordinated and agreed to in writing
        by INSW CIO, INSW Controller, OSG CIO, and OSG Controller

        §   Sweep
        access will discontinue at the end of the TSA

        §   INSW
        CIO or designees will provide support for data access issues. If OSG Controller or designees experience access issues,
        the INSW CIO will be informed via phone or email by OSG Controller. INSW CIO will attempt to resolve the access issue
        within 1 business day. If the issue cannot be resolved within 1 business day, INSW CIO will provide a plan to OSG Controller
        within 1 business day to resolve the access issue
	 	INSW
        provides access to INSW Oracle instance for sweep outside of planned downtime

         

        INSW
        restores access or provides plan to restore access within 1 business day of OSG issue submission
	 	INSW CIO	 	OSG Controller	 	1 months

 

    	Confidential	Page 4

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    /

    Owner	 	Duration

    (Months)
	 	 	 	 	§   Costs
        for third party support to resolve data access issues will be documented by INSW CIO. INSW CIO will invoice OSG for all
        support costs plus a 5% markup at TSA exit

        §   Service
        will be provided on a one-time basis

        §   The
        following technology products will be used in the delivery of the service: Oracle
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	FIN-01-05	 	Access to consolidated
    OSG Oracle instance and shared files	 	§   OSG
        CIO or designees will provide access to the consolidated OSG Oracle instance and select shared folders hosted in Tampa

        §   OSG
        CIO or designees will provide access outside of planned downtime. Downtime will be jointly coordinated and agreed to in
        writing by INSW CIO, INSW Controller, OSG CIO, and OSG Controller

        §   Access
        to shared folders and consolidated OSG Oracle instance will be provided through VPN. If VPN performance level is not acceptable
        and workable, INSW Controller will inform OSG CIO in writing, and OSG CIO will work to make performance level acceptable
        and workable. INSW CIO will provide support to OSG CIO as needed to make performance level acceptable and workable

        §   Access
        rights for personnel will be granted by written agreement between OSG CIO, OSG Controller, INSW CIO, and INSW Controller.
        Agreement will include personnel and associated access scope

        §   Access
        rights will be revoked at the end of the TSA. Access rights may also be revoked by OSG CIO or OSG Controller prior to
        the end of the TSA. OSG CIO or designee will provide email notice of access revocation to INSW Controller and INSW CIO
        1 business day prior to removal

        §   OSG
        CIO or designees will provide support for access issues. If INSW Controller or designees experience access issues, the
        OSG CIO will be informed via phone or email by INSW Controller. OSG CIO will attempt to resolve the access issue within
        1 business day. If the issue cannot be resolved within 1 business day, OSG CIO will provide a plan to INSW Controller
        within 1 business day to resolve the access issue

        §   Service
        will be provided on a one-time basis

        §   The
        following technology products will be used in the delivery of the service: Oracle
	 	OSG
        provides access to OSG consolidated Oracle instance

        outside
        of planned downtime

         

        OSG
        provides access to shared files outside of planned downtime

         

        OSG
        provides remote access through VPN outside of planned downtime

         

        OSG
        restores access or provides plan to restore access within 1 business day of INSW issue submission
	 	OSG CIO	 	INSW Controller	 	4 months
	 	 	 	 	 	 	 	 	 	 	 	 	 
	FIN-01-06	 	JV interest rate swap
    valuation from Hedge Trackers	 	§   OSG
        Controller will forward the monthly deliverable from Hedge Trackers for derivative accounting and valuation via email
        to the INSW Controller within 1 business day of receipt

        §   If
        Hedge Trackers copies INSW Controller on deliverable submission, OSG Controller does not need to forward the deliverable
        to INSW Controller

        §   If
        Hedge Trackers does not submit report by the seventh day of the month, OSG Controller will immediately inform INSW controller
        and follow up with Hedge Trackers. OSG Controller will keep INSW Controller informed with updated deliverable status as
        requested by INSW Controller

        §   INSW
controller is responsible for reviewing deliverable and communicating
	 	OSG
        Controller provides Hedge Trackers deliverable to INSW Controller within 1 business day of receipt

         

        OSG
        Controller informs INSW Controller 
	 	OSG Controller	 	INSW Controller	 	3.5 months

 

    	Confidential	Page 5

     

    

 

TSA
Schedule A

 

	Service 

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    /

    Owner	 	Duration

    (Months)
	 	 	 	 	any
        issues directly to Hedge Trackers. OSG Controller will be copied on all email correspondence between INSW Controller and
        Hedge Trackers

        §   Service
        will be provided on a monthly basis for November 2016, December 2016, January 2017, and February 2017 deliverables from
        Hedge Trackers

        §   No
        special technology products are required in the delivery of this service
	 	immediately if Hedge Trackers has not submitted deliverable by seventh day of the month	 	 	 	 	 	 

 

    	Confidential	Page 6

     

    

 

TSA Schedule A

 

	Schedule:
    Finance	Service
    Area: Payroll Funding

 

General Description of Services: OSG will fund INSW
NYC payroll and other compensation (e.g., HSA, Wageworks, medical insurance, stock comp vesting, etc.) by making funds available
to ADP for disbursement to INSW employees assigned to the NYC office. OSG Accounting Manager or designee will provide INSW controller
or designee with data from ADP to make journal entries for payroll and other compensation for employees assigned to the NYC office

 

Service Summary:

 

	Service 

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    /

    Owner	 	Duration

    (Months)
	FIN-02-01	 	Funding
    for bi-weekly INSW New York payroll and other compensation	 	§   Standard
        Bi-Weekly Payroll: OSG will fund the INSW payroll for employees assigned to the NYC office by making funds available
        to ADP for disbursement. OSG and INSW will follow the following procedure:

        −   Imprest
        Funding: One business day following separation, INSW Controller or designee will transfer $500,000 (“Imprest
        Level”) to Fifth Third account ending in 4290 (“Revenue Account”)

        −   Payroll
        Funding: Two days prior to pay date (per ADP requirement), OSG Accounting Manager or designee will transfer funds
        sufficient to cover the INSW NYC payroll as indicated by ADP. Funds will be transferred to JP Morgan Chase account ending
        in 2788 (“Shoreside Payroll Account”). ADP will withdraw funds for disbursement to INSW NYC employees from
        Shoreside Payroll Account

        −   Imprest
        Level Top-Up: OSG Accounting Manager or designee will send invoice to INSW Controller or designee for the actual INSW
        shoreside payroll disbursement amount (“Disbursement”). INSW Controller or designee will transfer funds sufficient
        to restore Imprest Level in Revenue Account at least five business days prior to the next pay date

        §   Exceptions:
        If for a given payroll, Imprest Level will be insufficient to cover Disbursement, OSG and INSW will follow the following
        procedure:

        −   Notification:
        OSG HR Director or designee will notify INSW Controller or designee of expected Disbursement at least two business
        days prior to funds being required

        −   Additional
        Funding: INSW Controller or designee will transfer sufficient funds to Revenue Account to cover Disbursement by the
        date indicated by OSG HR Director

        −   Imprest
        Level Top-up: OSG Accounting Manager or designee will send invoice to INSW Controller or designee for the Disbursement.
        INSW Controller or designee will transfer funds sufficient to restore Imprest Level in Revenue Account at least five business
        days prior to the next pay date

        §   The
“Standard Bi-Weekly Payroll” and “Exceptions” procedures may be used to fund other compensation which
includes, but is not limited to, AIP payments, HSA / FSA / 401(k) contributions, medical insurance and payroll taxes on stock
vesting. OSG HR Director will notify INSW Controller through email two business days prior to funds being required and will use
	 	Payroll
        Funding: OSG Accounting Manager will transfer funds sufficient to cover INSW NYC payroll to Shoreside Payroll Account
        two days prior to pay date

         

        Imprest
        Level

        Top-Up:

        INSW
        Controller or designee will transfer funds sufficient to restore Imprest Level in Revenue Account at least five business
        days prior to the pay date

         

        Exception
        Notification:

        OSG
        HR Director or designee will notify INSW Controller of expected Disbursement at least three business days prior to funds
        being required

         

        Exception
        Additional Funding:

        INSW
        Controller or designee will transfer sufficient funds to

         
	 	OSG
    Controller	 	INSW
    Controller	 	1
    months

  

    	Confidential	Page 7

     

    

 

TSA
Schedule A

 

	Service 

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    /

    Owner	 	Duration

    (Months)
	 	 	 	 	the
                                “Exceptions” procedure if the Disbursement will be greater than the Imprest Level 

                                 §   The
                                Imprest Level can be adjusted by agreement between OSG and INSW controllers in writing

        §    OSG
        Accounting Manager or designee will send to INSW Controller or designee data file from ADP containing information for
        payroll journal entries for INSW personnel assigned to the NYC office within 1 business day of receipt. File will be shared
        via email

        §    Sharing
        of journal entry data for Houston, Newcastle, and Manila payrolls is covered in HR TSAs

        §    Funding
        of payroll and other compensation for employees based in Houston, Newcastle, and Manila is excluded from this TSA

        §    Service
        will be provided every other week on a recurring basis for bi-weekly payroll and as needed for other compensation

        §    The
        following vendors and subscriptions will be used in the delivery of the service:

        −   ADP

        −   Fifth
        Third Bank

        −   JP
        Morgan Chase Bank

        §    The
        following technology products will be used in the delivery of the service:

        −   Oracle

        −   ADP
        local and network server software
	 	Revenue
    Account to cover Disbursement by the date indicated by OSG HR Director 	 	 	 	 	 	 

  

    	Confidential	Page 8

     

    

 

TSA Schedule A

 

	Schedule:
    Finance	Service
    Area: Knowledge Transfer

 

General Description of Services: INSW Controller and
designees and OSG Controller and designees will provide reasonably requested knowledge transfer to each other regarding services
related to the following sub-functions: FP&A, Treasury, Accounts Payable, General Accounting, External Reporting, Investor
Relations, Tax, and Internal Audit. Knowledge transfer will consist of consulting time to answer questions about matters prior
to the separation and general guidance on document and deliverable preparation for each sub-function. Information will be provided
by phone, email, or by posting to a network server hosted in Tampa or NYC using VPN. Service will be provided as needed based
on requests from the receiving party. PWC Inform, Deloitte Technical Library, Oracle, including Discoverer and Claims, CHoPS,
and GL Wand will be used to deliver these services.

 

Service Summary:

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    /

    Owner	 	Duration

    (Months)
	FIN-03-01	 	FP&A Knowledge Transfer	 	§   Knowledge
    transfer for FP&A will include, but is not limited to, the following areas: BOD fees, G&A analysis, and consolidated
    operations analysis	 	Response provided
    within 1 business day of question submission	 	INSW
    Controller	 	OSG
    Controller	 	4
    months
	FIN-03-02	 	Treasury Knowledge Transfer	 	§   Knowledge
    transfer for Treasury will include, but is not limited to, the following areas: debt payments, interest rate hedging, and
    loan documents	 	Response provided
    within 1 business day of question submission	 	OSG Treasurer	 	INSW CFO, INSW Controller	 	2 months
	FIN-03-03	 	Accounts Payable Knowledge Transfer	 	§   Knowledge
    transfer for Accounts Payable will include, but is not limited to past invoices	 	Response provided
    within 1 business day of question submission	 	INSW Controller	 	OSG Controller	 	4 months
	FIN-03-04	 	General Accounting Knowledge Transfer	 	§   Knowledge
    transfer for General Accounting will include, but is not limited to, the following areas: external spend for 3rd parties,
    share compensation, pension accounting, deferred financing costs for bonds, allocation process, and fixed asset accounting	 	Response provided
    within 1 business day of question submission	 	INSW Controller	 	OSG Controller	 	4 months
	FIN-03-05	 	External Reporting Knowledge Transfer	 	§   Knowledge
    transfer for External Reporting will include, but is not limited to, the following areas: SEC filings and audit support, board
    of directors reports, bank reporting	 	Response provided
    within 1 business day of question submission	 	INSW Controller	 	OSG Controller	 	4 months
	FIN-03-06	 	General Knowledge Transfer	 	§   General
    knowledge transfer for Accounting will include, but is not limited to, the following areas: 10-K footnotes and XBRL tagging	 	Response provided
    within 1 business day of question submission	 	OSG Controller	 	INSW

        Controller
	 	4 months

 

    	Confidential	Page 9

     

    

 

TSA Schedule A

 

	Schedule: Finance	Service Area: Investor
    Relations

 

General Description of Services: OSG Investor Relations
will provide reasonably requested support to INSW Investor Relations for post-spin IR activities including investment community
outreach, and support for the corporate and IR website transition.

  

Service Summary: 

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    /

    Owner	 	Duration

    (Months)
	FIN-04-01	 	Support for INSW Investor
    Relations from OSG	 	§   OSG
                                will support INSW as needed by phone, email, or in person for the following IR activities:

        −   Investment
        Community Outreach: OSG Investor Relations will support the INSW Principal Financial Officer for investment community
        outreach as needed. The extent of outreach will be determined by the INSW Principal Financial Officer and support may
        include the following:

        ·      Development
        of an outreach plan for the remainder of 2016 and 2017

        ·      Coordination
        of and preparation for post-spin roadshows and investor conferences

        ·      Manage
        existing investor relationships and target prospective shareholders (i.e., buy-side outreach)

        ·      Manage
        research coverage plan for the sell-side community

        −   Corporate
        and IR Website Transition: OSG IR will provide support to INSW Human Resources in the transition of the Corporate
        and IR Websites

        §   The
        following vendors and subscriptions will be used in the delivery of the service:

        −   Ipreo
        / Factset

        −   BusinessWire

        §   The
        following technology products will be used in the delivery of the service:

        −   SNL
	 	OSG
    provides response or estimated response time within 1 business day of INSW question submission	 	OSG
    Investor Relations	 	INSW
                                Principal Financial Officer for Investment Community Outreach

         

         

         

        INSW
        Human Resources for Corporate and IR Website Transition

         
	 	4
    months

 

    	Confidential	Page 10

     

    

 

TSA Schedule A

 

	Schedule: Human Resources	Service Area: Human Resources

 

General Description of Services: Human Resources support
services provided to INSW from OSG and vice versa

 

Service Summary:

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	HR-001-A	 	US
    Payroll Processing 

    (Non Houston)	 	§   Provide
                                accurate and uninterrupted payroll services to US INSW (New York – Non Houston ) employees:

        −   Process
        normal payroll bi-weekly run, specifically assessing payroll processing gross to net, as well as other off-cycle Payroll
        / Compensation disbursements. Processing should occur no later than three (3) business days prior to pay date

        −   Review
        payroll files from outsourced vendor provider for first 3 payrolls in 2017

        −   Review
        payroll files from ADP for New York employees and provide approval to ADP

        −   Process
        bi-weekly EFT/checks and off-cycle EFT/checks, no later than three (3) business days prior to pay date

        −   Coordinate
        with OSG finance / treasury to ensure payroll funding and journal entries are available, in accordance with the terms
        and timeframes described in the Finance Payroll Funding TSA Fin-03-01

        −   Process
        periodic payroll system reconciliation for each payroll

        −   Process
        periodic reporting and compliance procedures / analysis in compliance with any local, state or federal regulations

        −   Process
        timesheets, earnings, deductions (e.g., W4s, direct deposits, 401k), disbursements and garnishments, upon receipt of information
        from INSW. In order to be included in the current payroll cycle, INSW must provide this information at least seven (7)
        business days prior to pay date

        −   Process
        hiring, termination (voluntary and involuntary) and leaves of absence in payroll. In order to be included in the current
        payroll cycle, INSW must provide this information at least seven (7) business days prior to pay date. Note: payment recovery
        for any unforeseen circumstances (e.g. employee terminations) will not be guaranteed

        −   Manage
        Service Recipient employee data in payroll system,

        −   Process
        employee's year end income tax statements (i.e., W2s), in compliance with local, state and federal regulations

        −   Resolve
        issues related with INSW employees payroll inquiries:

        ·   SLA
        for answering INSW’s issues: 

        o    All
        clients’ inquiries will be acknowledged within one (1) business day

        o    Normal
        inquiries will be resolved within three (3) business days. In case resolution is not feasible within this timeframe, an
        estimated resolution deadline will be informed within two (2) business days
	 	Available
                                between 8:00 AM to 4:30PM EST, Monday to Friday – excluding company holidays

         

        Additional
        detail provided in service description
	 	Deanna
                                Marshall, OSG

         

         

         

        Susan
        Lucas, OSG

         
	 	Steve
    Stulbaum, INSW	 	6
    months

 

    	Confidential	Page 11

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	o   SLA
                                for urgent enquires will be agreed on a case by case basis, following direct phone contact

        ·   Escalation
        path: issues raised by INSW employees should be directed to OSG’s payroll email account uspayroll@osg.com. OSG’s
        Payroll manager and INSW HR lead to be copied in the email chain

        −   Support
        year-end accounting process by providing ad hoc reports to INSW, following SLA for issue resolution described above, if
        applicable

        −   Support
        internal / external audits, if applicable. Response timeframes will be agreed upon based on complexity of request, data
        availability and vendor constraints

        −   Liaise
        with OSG IT to address any software issues that may arise during payroll processing

         

        §   Continue
        deductions and remittances, in compliance with local, state, federal regulations and contractual arrangements, to: 

        −   Tax
        Agencies

        −   Benefits
        Vendors

        −   Retirement
        vendors

        −   Garnishment
        Recipients

         

        Exclusion(s): N/A

         

        Technology / Third
        Party Vendors used to support service provider:

        −   Oracle

        −   ADP
        National Accounts

        −   Deloitte
        Tax

        −   ADP
Tax Management Services
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	HR-001-B	 	US
    Payroll Processing

    (Houston)	 	§   Provide
                                accurate and uninterrupted payroll services to US INSW (Houston) employees:

        −   Process
        normal payroll bi-weekly run, specifically assessing payroll processing gross to net, as well as other off-cycle Payroll
        / Compensation disbursements. Processing should occur no later than three (3) business days prior to pay date

        −   Review
        payroll files from outsourced vendor provider for first 3 payrolls in 2017

        −   Review
        payroll files from ADP for Houston employees and provide approval to ADP

        −   Process
        bi-weekly EFT/checks and off-cycle EFT/checks, no later than three (3) business days prior to pay date

        −   Coordinate
with INSW finance / treasury to ensure payroll funding
	 	Available
                                between 8:00 AM to 4:30PM EST, Monday to Friday – excluding company holidays

         

        Additional
        detail provided in service description
	 	Deanna
                                Marshall, OSG 

         

         

         

        Susan
        Lucas, OSG

         
	 	Steve
    Stulbaum, INSW	 	6
    months

 

    	Confidential	Page 12

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	available.
                                Note: Journal entries will not be managed by OSG HR

                                −   Process
                                periodic payroll system reconciliation for each payroll

        −   Process
        periodic reporting and compliance procedures / analysis in compliance with any local, state or federal regulations

        −   Process
        timesheets, earnings, deductions (e.g., W4s, direct deposits, 401k), disbursements and garnishments, upon receipt of information
        from INSW. In order to be included in the current payroll cycle, INSW must provide this information at least seven (7)
        business days prior to pay date

        −   Process
        hiring, termination (voluntary and involuntary) and leaves of absence in payroll. In order to be included in the current
        payroll cycle, INSW must provide this information at least seven (7) business days prior to pay date. Note: payment recovery
        for any unforeseen circumstances (e.g. employee terminations) will not be guaranteed

        −   Manage
        Service Recipient employee data in payroll system

        −   Process
        employee's year end income tax statements (i.e., W2s), in compliance with local, state and federal regulations

        −   Resolve
        issues related with INSW employees payroll inquiries:

        ·   SLA
        for answering INSW’s issues: 

        o   All
        clients’ inquiries will be acknowledged within 1 business day

        o   Normal
        inquiries will be resolved within 3 business days. In case resolution is not feasible within this timeframe, an estimated
        resolution deadline will be informed within 2 business days

        o   SLA
        for urgent enquires will be agreed on a case by case basis, following direct phone contact

        ·      Escalation
        path: issues raised by INSW employees should be directed to OSG’s payroll email account uspayroll@osg.com. OSG’s
        Payroll manager and INSW HR lead to be copied in the email chain

        −   Support
        year-end accounting process by providing ad hoc reports to INSW, following SLA for issue resolution described above, if
        applicable

        −   Support
        internal / external audits, if applicable. Response timeframes will be agreed upon based on complexity of request, data
        availability and vendor constraints

        −   Liaise
        with OSG IT to address any software issues that may arise during payroll processing

         

        §  Continue
        deductions and remittances, in compliance with local, state, federal regulations and contractual arrangements, to:

        −   Tax
        Agencies

        −   Benefits
        Vendors

        −   Retirement
        Vendors

        −   Garnishment
        Recipients 
	 	 	 	 	 	 	 	 

 

    	Confidential	Page 13

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	Exclusion(s): N/A

         

        Technology / Third
        Party Vendors used to support service provider:

         

        −   Oracle

        −   ADP
        National Accounts

        −   ADP
        Tax Management Services
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	HR-001-C	 	UK and Philippines
    (PH) Payroll Processing	 	§   Provide
        accurate and uninterrupted payroll services to INSW’s UK and Manila employees: 

        −   Process
        normal payroll monthly (UK) semi-monthly (PH) run, specifically assessing payroll processing gross to net, as well as
        other off-cycle Payroll / Compensation disbursements. Processing should occur no later than ten (10) business days prior
        to pay date

        −   Review
        payroll files from ADP for UK and PH employees and provide approval to ADP

        −   Process
        EFT/checks and off-cycle EFT/checks, no later than ten (10) business days prior to pay date

        −   Coordinate
        with INSW finance / treasury to ensure payroll funding available. Note: Journal entries will not be managed by
        OSG HR

        −   Process
        periodic payroll system reconciliation for each payroll.

        −   Process
        periodic reporting and compliance procedures / analysis in compliance with any local country regulations

        −   Process
        timesheets, earnings, deductions, disbursements and garnishments, upon receipt of information from INSW. In order to be
        included in the current payroll cycle, INSW must provide this information at fifteen (15) business days prior to pay date

        −   Process
        hiring, termination (voluntary and involuntary) and leaves of absence in payroll. In order to be included in the current
        payroll cycle, INSW must provide this information at least fifteen (15) business days prior to pay date. Note: payment
        recovery for any unforeseen circumstances (e.g. employee terminations) will not be guaranteed

        −   Manage
        Service Recipient employee data in payroll system

        −   Process
        employee's year end income tax statements (e.g. P11Ds, BR2316), in compliance with local country regulations

        −   Resolve
        issues related with INSW employees payroll inquiries:

        ·   SLA
        for answering INSW’s issues: 

        o    All
        clients’ inquiries will be acknowledged within 1 business day

        o    Normal
inquiries will be resolved within 3 business days. In case resolution is not feasible within this timeframe, an estimated resolution
deadline will be informed within 2 

         
	 	Available
        between 8:00 AM to 4:30PM EST, Monday to Friday – excluding company holidays

         

        Additional
        detail provided in service description
	 	Deanna
        Marshall, OSG

         

        Susan
        Lucas, OSG
	 	Steve
    Stulbaum, INSW	 	6
    months

 

    	Confidential	Page 14

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	business
        days

         o   SLA
        for urgent enquires will be agreed on a case by case basis, following direct phone contact

        ·      Escalation
        path: issues raised by INSW employees should be directed to OSG’s payroll email account uspayroll@osg.com. OSG’s
        Payroll manager and INSW HR lead to be copied in the email chain

        −   Support
        year-end accounting process by providing ad hoc reports to INSW, following SLA for issue resolution described above,
        if applicable.

        −   Support
        internal / external audits, if applicable. Response timeframes will be agreed upon based on complexity of request, data
        availability and vendor constraints

        −   Liaise
        with OSG IT to address any software issues that may arise during payroll processing

         

        §   Continue
        deductions and remittances to government agencies, in compliance with local country regulations

         

        Exclusion(s):

        §   OSG
        will not be responsible for managing any non-payroll related dealings with UK’s Tax Authorities (e.g. UK Pension,
        Form 42s).

         

        Technology / Third
        Party Vendors used to support service provider:

        −   PSPI,
        Manila Payroll Processer

        −   ADP
        Streamline

        −   Payroll
        Service Providers, Inc.(ADP Affliate)

        −   ADP
        UK (Florida Team)

        −   Navarro
Amper & Co. | Member of Deloitte Touche Tohmatsu Limited
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	HR-002	 	Human Resources Information
    Systems (HRIS)	 	§   Provide
        employee data system of record day-to-day support and maintenance:

        −   Maintenance
        of system integrity and infrastructure (in partnership with OSG IT).

        −   Support
        implementation of vendor software updates (if applicable)

         

        §   HRIS
        Record Creation, Termination and Changes upon receipt of information from INSW. In order to keep data aligned with Payroll,
        INSW must provide information at least seven (7) business days for US employees and fifteen (15) business days for Non-US
        employees prior to pay date: 

        −   Creation
        of employee records in Oracle

        −   Process
/ manage employee personal data changes 
	 	Available
        between 8:00 AM to 4:30PM EST, Monday to Friday – excluding company holidays

         

        Additional
        detail provided in service description
	 	Deanna
        Marshall, OSG

         

        Susan
        Lucas, OSG
	 	Steve Stulbaum, INSW	 	6 months

  

    	Confidential	Page 15

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	−   Manage
        employee compensation changes

        −   Update
        employee termination record

         

        §   HR
        Reporting and Analytics:

        −   Partner
        with OSG IT to run HR analytics reports and provide information to INSW (as needed) – SLA for reports:

        ·    All
        clients’ inquiries will be acknowledged within 1 business day

        ·    Normal
        inquiries will be resolved within 3 business days. In case resolution is not feasible within this timeframe, an estimated
        resolution deadline will be informed within 2 business days

        −   Urgent
        inquires will be agreed on a case by case basis, following direct phone contact.

        −   OSG
        HR will provide the ‘Active Employee Detail’ report to INSW HR on a weekly basis

         

        §   Maintain
        and provide electronic and paper for Employee Records:

        −   Maintain
        and make accessible to INSW – as required – soft copies of current employee job descriptions, personnel, benefits,
        I9s, training, background checks, drug tests, EEO/Vets/Disability forms, FMLA, Worker's Comp, Hiring/Interview files

        −   Maintain
        and make accessible to INSW – as available at separation date – hard and / or soft copies of terminated or
        retired employees records

        −   Box.com
        will be used to transfer data and employee records during the TSA period

        Exclusion(s): N/A

         

        Technology / Third
        Party Vendors used to support service provider:

        −   Oracle

        −   OSG
        IT

        −   Iron
        Mountain

        −   IAS-EPE
(Greek Law Firm)
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	HR-003	 	Total Rewards	 	§   Perform
        Retirement plan administration in compliance with applicable ERISA and / or Federal regulations and timeframes:

        −   Enroll
        / process new hires into the relevant plan(s)

        −   Maintain
        eligibility

        −   Manage
        enrollment

        −   Exchange
data with benefit provider 

        −   Manage
        benefit provider payments, in accordance to contractual obligations

        −   Manage
        benefit contributions remittance payments for US, and ensure
	 	Available
        between 8:00 AM to 4:30PM EST, Monday to Friday – excluding company holidays

         

        Additional
        detail provided in 
	 	Deanna
        Marshall, OSG

         

        Susan
        Lucas, OSG
	 	Steve Stulbaum, INSW	 	6 months

 

    	Confidential	Page 16

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	process
        is completed within three (3) business days of pay date. Both parties will follow the process established below:

         

        For New York
Employees: 

        ·    OSG
        HR compiles and validates invoices / reports

        ·    OSG
        HR manager reviews and approves

        ·    OSG
        HR provides OSG Finance with the voucher requests for New York employees

        ·    OSG
        Finance enters vouchers into accounting system and processes payment for NYC employees within one (1) business day of
        pay date and inform OSG HR once completed.

         

        For Houston
Employees 

        ·    OSG
        HR compiles and validates invoices / reports

        ·    OSG
        HR manager reviews and approves

        ·    OSG
        HR provides Houston Finance with the voucher requests for Houston employees

        ·    US
        Houston Finance enters vouchers into accounting system and submits to INSW Treasury for payment processing. 

        ·    INSW
        Treasury must send payment to Benefits vendor (i.e., Vanguard) within one (1) business day of pay date and inform OSG
        HR and OSG Finance once completed.

         

        −   Process
        benefits termination

        −   Determine
        benefits eligibility

        −   Review
        loan administration and eligibility

        −   Manage
        employee data changes and support the process to submit changes to third party vendors according to applicable laws

        −   Manage
        plan document and related audits if applicable. Response timeframes will be agreed upon based on complexity of request,
        data availability and vendor constraints.

        −   Support
        preparation and submission of federal filings and assist with answering any follow-up questions if applicable. Response
        timeframes will be agreed upon based on complexity of request, data availability and vendor constraints.

        −   Support
        administration of SERP for eligible employees

        −   Assist
        with any budgeting activities related to retirement plans

        −   Resolve
        issues related with INSW employees retirement plan administration:

        ·   SLA
        for answering OSG’s funding issues: 

        o    In
        the absence of a confirmation of payment within one (1) business day of pay date, OSG HR will escalate this issue with
        INSW Finance via phone / email.

        o    INSW
        Finance must acknowledge the issue and work diligently

         
	 	service description 	 	 	 	 	 	 

 

 

    	Confidential	Page 17

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	to
        make payment by the next business day.

        o   Once
        payment is made, INSW Finance must inform OSG HR.

         

        §   Compensation
        and Benefits Benchmarking:

        −   Liaise
        with vendors to provide INSW with benefit market analysis (e.g. Benchmarking, Surveys, Provider pricing)

        −   Assist
        with implementation of INSW’s compensation and benefits governance model

         

        §   Perform
        Benefits Administration in compliance with applicable ERISA and / or Federal regulation and timeframes:

        −   Maintain
        eligibility

        −   Manage
        benefits enrollment

        −   Administer
        flexible spending accounts, commuter accounts.

        −   Administer
        disability claims

        −   Exchange
        data with benefit providers

        −   Manage
        benefit provider payments, in accordance to contractual obligations.

        −   Manage
        benefit provider premium or contributions payments for US, and ensure process is completed, in accordance to contractual
        obligations. Both parties will follow the process established below:

         

        For New York
Employees: 

        ·   OSG
        HR compiles and validates invoices / reports

        ·    OSG
        HR manager reviews and approves

        ·    OSG
        HR provides OSG Finance with the voucher requests for New York employees.

        ·    OSG
        Finance enters vouchers into accounting system and processes payment for NYC employees and inform OSG HR once completed.

         

        For Houston
Employees 

        ·    OSG
        HR compiles and validates invoices / reports

        ·    OSG
        HR manager reviews and approves

        ·    OSG
        HR provides Houston Finance with the voucher requests for Houston employees

        ·    US
        Houston Finance enters vouchers into accounting system and submits to INSW Treasury for payment processing. 

        ·    INSW
        Treasury must send payment to Benefits vendor and inform OSG HR and OSG Finance once completed.

         

        −   Process
        benefits termination

        −   Determine
benefits eligibility 
	 	 	 	 	 	 	 	 

 

 

    	Confidential	Page 18

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	§   Perform
        Health Savings Accounts (H.S.A Bank) administration in compliance with applicable Federal regulations and timeframes:

        −   Manage
        contributions remittance payments for US, and ensure process is completed within three (3) business days of pay date.
        Both parties will follow the process established below:

         

        For New York
        Employees:

        ·    OSG
        HR compiles and validates invoices / reports

        ·    OSG
        HR manager reviews and approves

        ·    OSG
        HR provides OSG Finance with the voucher requests for New York employees.

        ·    OSG
        Finance enters vouchers into accounting system and processes payment for NYC employees within one (1) business day of
        pay date and inform OSG HR once completed.

         

        For Houston
        Employees

        ·    OSG
        HR compiles and validates invoices / reports

        ·    OSG
        HR manager reviews and approves

        ·    OSG
        HR provides Houston Finance with the voucher requests for Houston employees

        ·    US
        Houston Finance enters vouchers into accounting system and submits to INSW Treasury for payment processing. 

        ·    INSW
        Treasury must send payment to Benefits vendor (i.e., Vanguard) within one (1) business day of pay date and inform OSG
        HR and OSG Finance once completed

         

        −   Process
        new hires, terminations and contribution changes

        −   Determine
        benefits eligibility

        −   Manage
        plan document and related audits if applicable. Response timeframes will be agreed upon based on complexity of request,
        data availability and vendor constraints.

        −   Support
        preparation and submission of federal filings and assist with answering any follow-up questions if applicable. Response
        timeframes will be agreed upon based on complexity of request, data availability and vendor constraints.

        −   Resolve
        issues related with INSW employees H.S.A administration:

        ·   SLA
        for answering OSG’s funding issues: 

        o   In
        the absence of a confirmation of payment within one (1) business day of pay date, OSG HR will escalate this issue with
        INSW Finance via phone / email.

        o   INSW
        Finance must acknowledge the issue and work diligently to make payment by the next business day.

        o   Once
payment is made, INSW Finance must inform OSG HR. 
	 	 	 	 	 	 	 	 

 

    	Confidential	Page 19

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	§   Leave
Administration:

        −   Medical
        (e.g. Short-Term Disability) / FMLA leave of absence

        ·    INSW
        must notify OSG HR as soon of when made aware that a leave of absence is required

        ·    OSG
        will provide FMLA forms to employee to be completed, within five (5) business days of being notified. Note: Short-Term
        Disability forms will be included if the employee is eligible

        ·   INSW
        employee will provide completed form according to FMLA guidance

        ·    OSG
        will determine eligibility and place employee on leave in the HRIS system 

        ·    OSG
        will inform Payroll vendor that INSW employee is on leave and will stop pay as of the effective leave date

        ·    OSG
        will coordinate with Short-Term Disability provider as appropriate

        ·    INSW
        employee must inform OSG HR within one (1) business day upon employee returning from leave. OSG HR will: 

        o   Add
        employee back to payroll.

        o   Coordinate
        with INSW employee to review payroll and benefits related items (e.g., missed benefits contributions, loan re-amortizations,
        and partial salary payments).

        −   Military
        Leave

        ·    INSW
        must notify OSG HR as soon of when made aware that a leave of absence is required

        ·    OSG
        will provide forms to employee to be completed, within five (5) business days of being notified

        ·    INSW
        employee will provide completed form according to federal guidance

        ·    OSG
        will determine eligibility and place employee on leave in the HRIS system 

        ·    OSG
        will inform Payroll vendor that INSW employee is on leave and will adjust pay according to OSG’s military leave
        policy

        ·    INSW
        employee must inform OSG HR within one (1) business day upon employee returning from leave. OSG HR will: 

        o   Add
        employee back to payroll.

        o    Coordinate
        with INSW employee to review payroll and benefits related items (e.g., missed benefits contributions, loan re-amortizations,
        and partial salary payments)

         

        §   AIP
        Administration and Pay Increase Administration:

        −   Provide
INSW’s incentive calculation and salary increase spreadsheet template. INSW will be responsible for completing the template
with input
	 	 	 	 	 	 	 	 

 

    	Confidential	Page 20

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	from
        PDR Process, SBU and Corporate goals.

        −   INSW
        (Jerry Miller) will provide OSG and INSW rolled-up ESO for both OSG and INSW businesses – as soon as available.

         

        Exclusions:

         

        −   OSG
        will not be responsible for making calculations adjustments aligned with feedback from INSW’s Senior Management.

        −   OSG
        will not be responsible for creating and distributing bonus statements to INSW’s employees.

        −   OSG
        will not be responsible for sending payment information to Payroll for processing and payment.

        −   OSG
        will not be responsible for supporting annual merit market, internal and external equity adjustments.

        −   OSG
        will not be responsible for supporting promotional reviews, increase cycles, compensation statement creation and distribution

         

        §   Assist
        INSW with Benefits Open Enrollment for FY2017 benefits plans (assuming that INSW stays on OSG’s Benefit plans and
        payroll as at 01/01/2017)

        −     OSG
        will provide INSW Benefits Open Enrollment support for 2017 benefit enrollment.

        −     OSG
        will provide benefits guide, enrollment forms, tracking, payroll updates and provider updates.

        −      INSW
        will provide OSG with Defined Contribution (401k plan) options available for employees

         

        Exclusion(s):

         

        

        §   OSG
        will not be responsible to set strategic direction and issues for new INSW’s Retirement plan(s), if applicable:

        −   Retirement
        plan design

        −   Selection
        of investment mix

        −   Review
        fund performance

        −   Expense
        fund fees

        −   Determine
        Eligibility criteria

         

        §   OSG
        will not be responsible for INSW’s Benefits Strategy design:

        −   Design
        benefits strategy, wellness branding/strategy, plans, programs, policies, and align benefits elements to the business

         

        §   OSG
        will not be responsible for INSW’s Compensation Strategy:

        −   Perform
        annual review and adjustment of INSW’s compensation strategy/philosophy, plans, programs, policies, and budgeting
	 	 	 	 	 	 	 	 

 

    	Confidential	Page 21

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	Technology
        / Third Party Vendors used to support service provider:

        −   The
        Vanguard Group

        −   Seyfarth
        Shaw LLP

        −   CBIZ
        MHM, LLC & Mayer Hoffman McCann P.C.

        −   ADP
        Health Compliance Division

        −   ADP

        −   Wage
        Works

        −   HSA
        Bank

        −   Mercer
        (US) Inc.

        −   Liberty
        Mutual Insurance

        −   Eye
        Med

        −   Aetna

         
	 	 	 	 	 	 	 	 
	HR-004	 	Compensation Administration
    	 	§   Executive
        Compensation:

        −   Partner
        with OSG IT to run HR analytics reports and provide information to INSW (as needed) – within two (2) to three (3)
        business days.

        −   OSG
        HR will provide the ‘Active Employee Detail’ report to INSW HR on a weekly basis.

         

        Exclusions:

         

        −   Support
        INSW’s Senior Management and the Board of Directors by compiling data on INSW’s Executive compensation.

        −   Provide
        employee data analysis to various requests made by INSW’s Compensation Committee or the Comp Committee's Consultant

         

        §   Equity
        Plan Administration and Payment for OSG issued stock:

        −   Within
        two (2) business days of vesting, OSG will liaise with Stock Plan Administration (GlobalShares), Transfer Agent (Computershare),
        and employee portal (Morgan Stanley) to initiate stock awards processing

        −   Partner
        with OSG Legal and Finance for reporting and bookkeeping of stock grants

        −   Process
        stock vesting in coordination with OSG Legal and Finance

        −   OSG
        will process payroll updates

        −   Provide
        support answering ongoing employee questions

        −   Support
        the design, development, implementation, testing and validating of beginning with a new Stock Plan Administrator (Certent).
        This will begin in December and conclude in January

         

        Exclusions:

         

        −   OSG
        will not manage stock awards for new INSW plans for FY17

        −   OSG
        will not draft stock award letters on behalf of INSW

        −   OSG
        will not draft / file SEC form(s) on behalf of INSW 
	 	Available
        between 8:00 AM to 4:30PM EST, Monday to Friday – excluding company holidays

         

        Additional
        detail provided in service description
	 	Deanna
        Marshall, OSG

         

        Susan
        Lucas, OSG
	 	Steve Stulbaum, INSW	 	6 months

 

    	Confidential	Page 22

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	Exclusion(s): (see
        above)

         

        Technology / Third
        Party Vendors used to support service provider:

        −   Global
        Shares Ireland Ltd.

        −   Morgan
        Stanley/Smith Barney

        −   Computershare
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	HR-004-B	 	Compensation Administration
    	 	§   Compensation
        for terminated INSW employees:

        −   If
        required, INSW will be responsible for engaging employees that terminate employment during TSA period

        −   Where
        applicable, INSW HR and Legal will negotiate the termination packages with the employee

        −   INSW
        will inform OSG of the terms of the termination packages

        §   OSG
        will coordinate the process to ensure that termination packages (e.g. severance, benefits and outplacements services)
        are appropriately delivered to the employee
	 	Available
        between 8:00 AM to 4:30PM EST, Monday to Friday – excluding company holidays

         

        Additional
        detail provided in service description
	 	Steve Stulbaum, INSW	 	Deanna
        Marshall, OSG

         

        Susan
        Lucas, OSG
	 	6 months
	 	 	 	 	 	 	 	 	 	 	 	 	 
	HR - 005	 	HR Compliance 	 	§   Support
        Benefits Compliance activities, as needed and within standard business practice and / or legal timeframes:

        −   Ensure
        data privacy

        −   Ensure
        payroll tax compliance

        −   Support
        HR audits (SOX, Industry, Customers)

         

        Exclusions
        (due to no liability for INSW):

         

        −   Reporting
        (e.g. ACA reporting)

        −   Update
        plan documents and SPD

        −   Assist
        with FSA non-discrimination testing and other additional US ERISA/DOL benefits compliance

        −   Submit
        Affirmative Action, EEO (U.S only), VETS (US Federal Contractor Reporting), if required

         

        §   Compliance
        Training

        −   Current
        online training offerings are available to INSW staff until 12/31/2016.

        −   Exclusions:
        OSG will not be responsible for online compliance training as of 01/01/2017 
	 	Available
        between 8:00 AM to 4:30PM EST, Monday to Friday – excluding company holidays

         

        Additional
        detail provided in service description
	 	Deanna
        Marshall, OSG

         

        Susan
        Lucas, OSG
	 	Steve Stulbaum, INSW	 	6 months

 

    	Confidential	Page 23

     

    

  

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	Exclusion(s):

        §   OSG
        will not support Compliance activities:

        −   Identify
        HR policies that need to be created or updated to enable INSW to operate

        −   Collect
        all relevant data to create and /or update the policy in questions (including liaising with external vendors, as appropriate)

        −   Provide
        training and communications to employees impacted by new or revised policy

        −   Administrate
        new or updated policy

         

        §   OSG
        will not provide Emergency / Disaster Planning:

        −   Work
        with management to review and update the plan as staff or office location changes (as needed)

        −   Communicate
        plan to employees

        −   Update
        Employees' addresses and change of plans, keep updated records for employees' in case of emergency plan

         

        Technology / Third
        Party Vendors used to support service provider:

        −   DomDoc
        / Intranet

        −   NAVEX

        −   Inspired
        Elearning
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	HR-006	 	HR Vendor Management	 	§   OSG
        is responsible for maintaining a contractual relationship with its HR vendors throughout the TSA duration:

        −   OSG
        will own the relationship with HR vendors required to support the TSA between INSW and OSG

        −   OSG
        will be responsible to communicate, at least 60 days in advance and in writing, if it plans to terminate a contractual
        relationship with an HR vendor part of this TSA

        −   OSG
        will be responsible to communicate to INSW, in writing and within reasonable notice, any service disruption planned or
        unexpected caused by OSG’s HR vendors

         

        §   OSG
        will mediate the resolution of any issues linked with quality and accuracy of the service provided by OSG’s HR vendors:

        −   In
        the event of a service related problem, INSW will be responsible for informing OSG, in writing and within reasonable notice

        −   All
        issues should be addressed following the terms below:

        ·   SLA
        for answering INSW’s issues: 

        o   All
        clients’ inquiries will be acknowledged within 1 business day

        o   Normal
        inquiries will be resolved within 3 business days. In
	 	Available
        between 8:00 AM to 4:30PM EST, Monday to Friday – excluding company holidays

         

        Additional
        detail provided in service description
	 	Deanna Marshall, OSG	 	Steve Stulbaum, INSW	 	6 months

 

 

    	Confidential	Page 24

     

    

 

TSA Schedule A

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    / 

    Owner	 	Duration

    (Months)
	 	 	 	 	case
        resolution is not feasible within this timeframe, an estimated resolution deadline will be informed within 2 business
        days

        o   SLA
        for urgent enquires will be agreed on a case by case basis, following direct phone contact

        ·     Escalation
        path: issues raised by INSW employees should be directed to Deanna Marshall (dmarshall@osg.com) and Susan Lucas
        (slucas@osg.com)

        ·     INSW
        will be financially responsible for any changes made to OSG’s HR vendor infrastructure that will only benefits INSW.
        Any requests should be validated by OSG and 

         

        Exclusion(s):

         

        §   OSG
        will not be responsible for negotiating, administrate, and manage any of the INSW HR Vendors, including:

        −   Source
        and select vendors

        −   Negotiate
        and partner with Legal to execute contracts including service level agreements

        −   Sign
        applications and pay invoices

        Technology / Third
        Party Vendors used to support service provider:

        −   Mercer

        −   EPL

        −   Fiduciary
        Liability

        −   Group
        Excess Liability

        −   USL&H

        −   WC

        −   Marsh

        −   Aetna

        −   ADP
	 	 	 	 	 	 	 	 

 

    	Confidential	Page 25

     

    

 

TSA Schedule A

 

	Schedule: Legal 	Service Area: Knowledge
    Transfer

 

General Description of Services: INSW designees will
provide reasonably requested knowledge transfer to the following sub-functions: legal support, board support, contracts negotiations,
compliance support and regulatory support, assuming service recipient will have legal capabilities and point of contact in place
by Day 1. Information will be provided by phone or email. Service will be provided as needed based on requests from the receiving
party

 

Service Summary:

 

	Service

    ID#	 	Service
    Name	 	Service
    Description	 	SLA
    Definition	 	Provider
    /

    Owner	 	Recipient
    /

    Owner	 	Duration

    (Months)
	LEG-001	 	Knowledge
    transfer for Board related activities	 	§   INSW
        will provide knowledge support for the following Board activities, but is not limited to:

        −   Help
        in defining meeting cadence, review of meeting materials and agenda for meetings of the

        ·   Audit
        Committee meetings

        ·   Comp
        Committee meetings

        ·   Governance
        committee meetings

        −   Review
        of the shareholder communications strategy
	 	Response
    provided within two business days of request	 	 INSW Legal	 	OSG Legal	 	1 months
	 	 	 	 	 	 	 	 	 	 	 	 	 
	LEG-002	 	Knowledge
    transfer for compliance and regulatory related activities	 	§   INSW
        will provide knowledge support to include the following areas, but is not limited to: 

        −   Major
        contracts and charters: Knowledge support to facilitate and resolve operational issues such as experience on working
        with vendors, operating model for the contracts etc.

        −   Contracts
        negotiations: Assistance in negotiating and structuring the material of contract

        −   Coast
        guard reporting: Knowledge support for coast guard reporting

        −   Compliance
        support: Knowledge support to business on Jones Act compliance, PAC, SEC reporting requirements including Form 4 filings
        for the public company

        −   Regulatory
        support: Knowledge support to the business on regulatory issues pertaining to the Jones act and federal election laws
        for OSG parent and political action committee

        −   Document
        transfer: Transfer of electronic and paper OSG documents located in New York office
	 	Response
    provided within two business days of request	 	INSW Legal	 	OSG Legal	 	1 months
	 	 	 	 	 	 	 	 	 	 	 	 	 
	LEG-003	 	Knowledge
    transfer for contracts and litigation related activities	 	§   INSW
        will provide reasonably requested knowledge support to OSG regarding following services, but is not limited to:

        −   Contracts
        and litigation: Services related to OSG contracts and litigation including pending SEC investigation advice to INSW

        −   Commercial
        agreements: Review of commercial agreements including charter documents 

        −   Contracts
        database: Knowledge transfer for operation of contracts database and it’s uses
	 	Response
    provided within two business days of request	 	INSW Legal	 	OSG Legal	 	1 months

 

    	Confidential	Page 26

     

    

 

TSA Schedule A

 

TSAs Cost Estimate

 

The fees and expenses for each of the TSA Services to be provided
are outlined below. The fees can be amended from time to time based on mutual agreement between service coordinators. Service
fees will be invoiced by the service provider on a monthly basis as per the schedule outlined below.

 

Forward TSAs cost summary (Services provided by OSG to INSW):

 

	Service 	 	Service Name	 	Service Cost Schedule ($)	 
	ID#	 	 	 	Month 1	 	 	Month 2	 	 	Month 3	 	 	Month 4	 	 	Month 5	 	 	Month 6	 	 	Total Cost	 
	FIN-02	 	Payroll Funding	 	$	4,536	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	$	4,536	 
	FIN-03	 	Knowledge Transfer1	 	$	1,512	 	 	$	1,512	 	 	$	1,512	 	 	$	1,512	 	 	 	–	 	 	 	–	 	 	$	6,048	 
	FIN-04	 	Support for INSW Investor Relations activities1	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	HR-001	 	Payroll Processing	 	$	6,742	 	 	$	6,742	 	 	$	6,742	 	 	$	6,742	 	 	$	6,742	 	 	$	6,742	 	 	$	40,452	 
	HR-002	 	Human Resources Information Systems (HRIS)	 	$	2,735	 	 	$	2,735	 	 	$	2,735	 	 	$	2,735	 	 	$	2,735	 	 	$	2,735	 	 	$	16,412	 
	HR-003	 	Total Rewards	 	$	10,464	 	 	$	10,128	 	 	$	10,128	 	 	$	10,128	 	 	$	10,128	 	 	$	10,128	 	 	$	61,106	 
	HR-004	 	Compensation Administration	 	$	2,936	 	 	$	2,936	 	 	$	2,936	 	 	$	2,936	 	 	$	2,936	 	 	$	2,936	 	 	$	17,615	 
	HR-005	 	HR Compliance	 	$	915	 	 	$	915	 	 	$	915	 	 	$	915	 	 	$	915	 	 	$	915	 	 	$	5,487	 
	HR-006	 	HR Vendor Management	 	$	798	 	 	$	798	 	 	$	798	 	 	$	798	 	 	$	798	 	 	$	798	 	 	$	4,788	 
	All	 	All	 	$	30,638	 	 	$	25,766	 	 	$	25,766	 	 	$	25,766	 	 	$	24,254	 	 	$	24,254	 	 	$	156,443	 

 

Reverse TSA cost summary (Services provided by INSW to OSG):

 

	Service	 	Service Name	 	Service Cost Schedule ($)	 
	 ID#	 	 	 	Month 1	 	 	Month 2	 	 	Month 3	 	 	Month 4	 	 	Month 5	 	 	Month 6	 	 	Total
    Cost	 
	FIN-01	 	Support for Close	 	$	12,049	 	 	$	1,969	 	 	$	1,969	 	 	$	1,969	 	 	 	–	 	 	 	–	 	 	$	17,955	 
	FIN-03	 	Knowledge Transfer	 	$	13,729	 	 	$	13,729	 	 	$	13,729	 	 	$	13,729	 	 	 	–	 	 	 	–	 	 	$	54,915	 
	HR-004-B	 	Compensation Administration	 	$	1,103	 	 	$	1,103	 	 	$	1,103	 	 	$	1,103	 	 	$	1,103	 	 	$	1,103	 	 	$	6,615	 
	LEG-01	 	Knowledge Transfer1	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	LEG-02	 	Knowledge Transfer1	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	LEG-03	 	Knowledge Transfer1	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	All	 	All	 	$	26,880	 	 	$	16,800	 	 	$	16,800	 	 	$	16,800	 	 	$	1,103	 	 	$	1,103	 	 	$	79,485	 

 

		1.	Indicates full or partial services provided by transitioning
                                         employee(s); the cost of these services will be payable via a one-time cost between the
                                         companies

 

    	Confidential	Page 27

     

    

 

SCHEDULE B

 

Shared Space

  

Shared Space Description:

 

Transitioning employees and OSG employees
remaining in NYC will be sharing physical office space within the NYC office for a period of time post-separation. The expected
duration of the shared space arrangement is through August 2017, but can be changed as needed by the company. These employees
will be physically separated from the International Seaways employees and will be housed in offices with four walls and a door
for privacy.

 

Shared Space Fee:

 

The below schedule details the fee for
shared space, to be paid by OSG.

 

	 	 	Dec-16	 	 	Jan-17	 	 	Feb-17	 	 	Mar-17	 	 	Apr-17	 	 	May-17	 	 	Jun-17	 	 	Jul-17	 	 	Aug-17	 	 	Total	 
	Sublease (NY)	 	$	3,000	 	 	$	2,000	 	 	$	1,500	 	 	$	1,500	 	 	$	1,000	 	 	$	1,000	 	 	$	1,000	 	 	$	1,000	 	 	$	1,000	 	 	$	13,000Exhibit 10.2

 

EMPLOYEE MATTERS AGREEMENT

 

BY AND AMONG

 

OVERSEAS SHIPHOLDING GROUP, INC.

 

AND

 

INTERNATIONAL SEAWAYS, INC.

 

DATED AS OF NOVEMBER 30, 2016

 

    -i-

     

    

 

Table of Contents

 

	 	 	Page
	 
	Article I
	 
	DEFINITIONS
	 
	Section 1.01.	Definitions	2
	 	 	 
	Section 1.02.	Interpretation	7
	 	 	 
	Article II
	 
	GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES
	 	 	 
	Section 2.01.	General Principles	7
	 	 	 
	Section 2.02.	Service Credit	8
	 	 	 
	Section 2.03.	Benefit Plans	8
	 	 	 
	Section 2.04.	Individual Agreements	9
	 	 	 
	Section 2.05.	[RESERVED]	10
	 	 	 
	Section 2.06.	Non-U.S. Regulatory Compliance	10
	 	 	 
	Article III
	 
	ASSIGNMENT OF EMPLOYEES
	 	 	 
	Section 3.01.	Active Employees	10
	 	 	 
	Section 3.02.	No-Hire and Nonsolicitation	11
	 	 	 
	Article IV
	 
	Equity, Bonus, and Executive Compensation
	 	 	 
	Section 4.01.	Generally	12
	 	 	 
	Section 4.02.	Equity Awards	12
	 	 	 
	Section 4.03.	Bonus Plans	14
	 	 	 
	Section 4.04.	Director Compensation	15
	 	 	 
	Section 4.05.	Retention Awards	15
	 	 	 
	Article V
	 
	QUALIFIED RETIREMENT PLANS
	 	 	 
	Section 5.01.	OSG U.S. Retirement Plans	15
	 	 	 
	Section 5.02.	INSW Retained Retirement Plans	15
	 	 	 
	Section 5.03.	OSG Retained Retirement Plans	15

 

    -ii-

     

    

 

Table of Contents

 

	 	 	Page
	 	 	 
	Section 5.04.	INSW Savings Plan	15
	 	 	 
	Section 5.05.	INSW UK Pension Plan	16
	 	 	 
	Article VI
	 
	NONQUALIFIED DEFERRED COMPENSATION PLANS
	 	 	 
	Section 6.01.	INSW SERP	16
	 	 	 
	Section 6.02.	Participation; Distributions	17
	 	 	 
	Article VII
	 
	WELFARE BENEFIT PLANS
	 	 	 
	Section 7.01.	Welfare Plans	17
	 	 	 
	Section 7.02.	COBRA and HIPAA	18
	 	 	 
	Section 7.03.	Vacation, Holidays and Leaves of Absence	18
	 	 	 
	Section 7.04.	Severance and Unemployment Compensation	18
	 	 	 
	Section 7.05.	Workers’ Compensation	19
	 	 	 
	Section 7.06.	Insurance Contracts	19
	 	 	 
	Section 7.07.	Third-Party Vendors	19
	 	 	 
	Article VIII
	 
	NON-U.S
	 
	Article IX
	 
	MISCELLANEOUS
	 
	Section 9.01.	Employee Records	19
	 	 	 
	Section 9.02.	Preservation of Rights to Amend	20
	 	 	 
	Section 9.03.	Fiduciary Matters	20
	 	 	 
	Section 9.04.	Further Assurances	20
	 	 	 
	Section 9.05.	Counterparts; Entire Agreement; Corporate Power.	20
	 	 	 
	Section 9.06.	Governing Law	21
	 	 	 
	Section 9.07.	Assignability	21
	 	 	 
	Section 9.08.	Third-Party Beneficiaries	21
	 	 	 
	Section 9.09.	Notices	22
	 	 	 
	Section 9.10.	Severability	22

 

    -iii-

     

    

 

Table of Contents

 

	 	 	Page
	 	 	 
	Section 9.11.	Force Majeure	22
	 	 	 
	Section 9.12.	No Set-Off	22
	 	 	 
	Section 9.13.	Headings	23
	 	 	 
	Section 9.14.	Survival of Covenants	23
	 	 	 
	Section 9.15.	Waivers of Default	23
	 	 	 
	Section 9.16.	Dispute Resolution	23
	 	 	 
	Section 9.17.	Specific Performance	23
	 	 	 
	Section 9.18.	Amendments	23
	 	 	 
	Section 9.19.	Interpretation	23
	 	 	 
	Section 9.20.	Mutual Drafting	23

 

    -iv-

     

    

 

	Schedules	 
	 	 
	Schedule 1.01	Retained Retirement Plans

 

    	 	-1-	 

     

    

 

EMPLOYEE MATTERS AGREEMENT

 

THIS EMPLOYEE MATTERS AGREEMENT, dated as
of November 30, 2016 (this “Agreement”), is by and between Overseas Shipholding Group, Inc., a Delaware corporation
(“OSG”), and International Seaways, Inc. (f/k/a OSG International, Inc.), a Republic of the Marshall Islands
corporation (“INSW”). Capitalized terms used in this Agreement but not otherwise defined herein shall have the
meanings set forth in Article I or ascribed to them in the Separation and Distribution Agreement (as defined below).

 

RECITALS:

 

WHEREAS, the board of directors of OSG (the
“OSG Board”) has determined that it is in the best interests of OSG and its stockholders to create a new publicly
traded company that will operate the INSW Business;

 

WHEREAS, in furtherance of the foregoing,
the OSG Board has determined that it is appropriate and desirable to separate the INSW Business from the OSG Business (the “Separation”)
and, at or following the Separation, make a distribution, on a pro rata basis, to holders of OSG Common Stock on the Record Date
of all the outstanding INSW Stock (the “Distribution”);

 

WHEREAS, in order to effectuate the Separation
and the Distribution, OSG and INSW have entered into that certain Separation and Distribution Agreement, dated as of November 30,
2016 (the “Separation and Distribution Agreement”); and

 

WHEREAS, in addition to the matters addressed
by the Separation and Distribution Agreement, the Parties desire to enter into this Agreement to set forth the terms and conditions
of certain employment, compensation, and benefit matters.

 

NOW, THEREFORE, in consideration of the
mutual agreements, provisions and covenants contained in this Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

Article
I

DEFINITIONS

 

Section 1.01.         Definitions.
For purposes of this Agreement, the following terms shall have the meanings set forth below.

 

“Adjusted OSG Awards”
shall mean, collectively, Adjusted OSG Options, Adjusted OSG Restricted Stock Units and Adjusted OSG Performance Based Units.

 

“Adjusted OSG Option”
shall mean an OSG Option, adjusted as of the Effective Time in accordance with Section 4.02(a).

 

“Adjusted OSG Performance Based
Unit” shall mean an OSG Performance Based Unit, adjusted as of the Effective Time in accordance with Section 4.02(b).

 

Adjusted OSG Restricted Stock Unit”
shall mean an OSG Restricted Stock Unit, adjusted as of the Effective Time in accordance with Section 4.02(c).

 

“Affiliate” shall have
the meaning set forth in the Separation and Distribution Agreement.

 

“Agreement” shall have
the meaning set forth in the preamble to this Agreement and shall include all Schedules hereto and all amendments, modifications,
and changes hereto entered into pursuant to Section 9.18.

 

“Ancillary Agreement”
shall have the meaning set forth in the Separation and Distribution Agreement.

 

“Assets” shall have the
meaning set forth in the Separation and Distribution Agreement.

 

    	 	-2-	 

     

    

 

“Benefit Plan” shall
mean any contract, agreement, policy, practice, program, plan, trust, commitment, or arrangement providing for benefits, perquisites,
or compensation of any nature from an employer to any Employee, or to any family member, dependent, or beneficiary of any such
Employee, including pension plans, thrift plans, supplemental pension plans, and welfare plans, and contracts, agreements, policies,
practices, programs, plans, trusts, commitments, and arrangements providing for terms of employment, fringe benefits, severance
benefits, change in control protections or benefits, travel, life, accidental death and dismemberment, disability insurance, tuition
reimbursement, travel reimbursement, vacation, sick, personal or bereavement days, leaves of absences, and holidays; provided,
however, the term “Benefit Plan” does not include any government-sponsored benefits, such as workers’
compensation, unemployment, or any similar plans, programs, or policies.

 

“COBRA” shall mean the
U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601 et seq. of ERISA and at Section 4980B
of the Code.

 

“Code” shall have the
meaning set forth in the Separation and Distribution Agreement.

 

“Delayed Transfer Date”
shall have the meaning set forth in Section 3.01(a)(ii).

 

“Delayed Transfer Employees”
shall have the meaning set forth in Section 3.01(a)(ii).

 

“Delayed Transfer Period”
shall have the meaning set forth in Section 3.01(a)(ii).

 

“Distribution” shall
have the meaning set forth in the recitals to this Agreement.

 

“Distribution Date” shall
have the meaning set forth in the Separation and Distribution Agreement.

 

“Effective Time” shall
have the meaning set forth in the Separation and Distribution Agreement.

 

“Employee” shall mean
any OSG Group Employee or INSW Group Employee.

 

“ERISA” shall mean the
U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“FICA” shall have the
meaning set forth in Section 3.01(e).

 

“Force Majeure” shall
have the meaning set forth in the Separation and Distribution Agreement.

 

“Former Employees” shall
mean Former OSG Group Employees and Former INSW Group Employees.

 

“Former INSW Group Employee”
shall mean any individual who is a former employee of OSG or any of its former Subsidiaries as of the Effective Time, as agreed
by the Parties.

 

“Former OSG Group Employee”
shall mean any individual who is a former employee of the OSG Group as of the Effective Time and who is not a Former INSW
Group Employee.

 

“FUTA” shall have the
meaning set forth in Section 3.01(e).

 

“Governmental Authority”
shall have the meaning set forth in the Separation and Distribution Agreement.

 

“Group” shall have the
meaning set forth in the Separation and Distribution Agreement.

 

“HIPAA” shall mean the
U.S. Health Insurance Portability and Accountability Act of 1996, as amended, and the regulations promulgated thereunder.

 

“Individual Agreement”
shall mean any individual (a) employment contract, (b) retention, severance, or change of control agreement, (c) expatriate
(including any international assignee) contract or agreement (including agreements and obligations regarding repatriation, relocation,
equalization of taxes, and living standards in the host country), or (d) other agreement containing restrictive covenants
(including confidentiality, noncompetition, and 

 

    	 	-3-	 

     

    

 

nonsolicitation provisions) between a member of the OSG Group and a INSW Group
Employee, as in effect immediately prior to the Effective Time.

 

“INSW” shall have the
meaning set forth in the preamble to this Agreement.

 

“INSW Awards” shall mean,
collectively, INSW Options, INSW Restricted Stock Units, and INSW Performance Based Units.

 

“INSW Benefit Plan” shall
mean any Benefit Plan established, sponsored, maintained, or contributed to by a member of the INSW Group as of or after the Effective
Time.

 

“INSW Board” shall mean
the Board of Directors of INSW.

 

“INSW Bonus Plans” shall
mean any annual or short-term incentive compensation plan, program, or policy sponsored or maintained by INSW immediately following
the Effective Time.

 

“INSW Business” shall
have the meaning set forth in the Separation and Distribution Agreement.

 

“INSW Delayed Transfer Employees”
shall have the meaning set forth in Section 3.01(a)(ii).

 

“INSW Equity Plan” shall
mean the INSW Management Incentive Compensation Plan and the INSW Non-Employee Director Incentive Compensation Plan.

 

“INSW Group” shall have
the meaning set forth in the Separation and Distribution Agreement.

 

“INSW Group Employees”
shall have the meaning set forth in Section 3.01(a)(i).

 

“INSW HSA” shall have
the meaning set forth in Section 7.01(c).

 

“INSW Liabilities” shall
have the meaning set forth in the Separation and Distribution Agreement.

 

“INSW Nonqualified Plan”
shall mean the INSW SERP.

 

“INSW Option” shall mean
any stock options granted pursuant to the INSW Equity Plan in accordance with Section 4.02(a).

 

“INSW Performance Based Unit”
shall mean a performance based unit granted pursuant to the INSW Equity Plan in accordance with Section 4.02(b).

 

“INSW Price Ratio” shall
mean the quotient obtained by dividing the INSW Stock Value by the OSG Pre-Distribution Stock Value.

 

“INSW Restricted Stock Unit”
shall have the meaning set forth in Section 4.02(c)(ii).

 

“INSW Retained Retirement Plans”
shall mean the plans set forth in Schedule 1.01.

 

“INSW Savings Plan” shall
mean the Engage PEO Retirement Savings Plan, The S2 HR Group, LLC.

 

“INSW Spin Option” shall have
the meaning set forth in Section 4.02(a).

 

“INSW Stock” shall have
the meaning set forth in the Separation and Distribution Agreement.

 

“INSW Stock Ratio” shall
mean the quotient obtained by dividing the OSG Pre-Distribution Stock Value by the INSW Stock Value.

 

“INSW Stock Value” shall
mean the volume weighted average per share price of INSW common stock on the NYSE during regular trading hours for the 20 Trading
Days following the Distribution Date.

 

    	 	-4-	 

     

    

 

“INSW Welfare Plans”
shall mean the Welfare Plans established, sponsored, maintained, or contributed to by any member of the INSW Group for the benefit
of INSW Group Employees and Former INSW Group Employees.

 

“IRS” shall mean the
Internal Revenue Service.

 

“Law” shall have the
meaning set forth in the Separation and Distribution Agreement.

 

“Liabilities” shall have
the meaning set forth in the Separation and Distribution Agreement.

 

“NYSE” shall have the
meaning set forth in the Separation and Distribution Agreement.

 

“OSG” shall have the
meaning set forth in the preamble to this Agreement.

 

“OSG Awards” shall mean,
collectively, OSG Options, OSG Performance Based Units and OSG Restricted Stock Units.

 

“OSG Benefit Plan” shall
mean any Benefit Plan established, sponsored, or maintained by OSG or any of its Subsidiaries immediately prior to the Effective
Time, excluding any INSW Benefit Plan.

 

“OSG Board” shall have
the meaning set forth in the recitals to this Agreement.

 

“OSG Bonus Plans” shall
mean any annual or short-term incentive compensation plan, program, or policy sponsored or maintained by OSG immediately prior
to the Effective Time, including the OSG Annual Incentive Plan.

 

“OSG Business” shall
have the meaning set forth in the Separation and Distribution Agreement.

 

“OSG Common Stock” shall
have the meaning set forth in the Separation and Distribution Agreement.

 

“OSG Compensation Committee”
shall mean the Compensation Committee of the OSG Board.

 

“OSG Equity Plan” shall
mean any of the OSG Management Incentive Compensation Plan and OSG Non-Employee Director Incentive Compensation Plan.

 

“OSG Group” shall have
the meaning set forth in the Separation and Distribution Agreement.

 

“OSG Group Employees”
shall have the meaning set forth in Section 3.01(a)(i).

 

“OSG HSA” shall have
the meaning set forth in Section 7.01(c).

 

“OSG Liabilities” shall
have the meaning set forth in the Separation and Distribution Agreement.

 

“OSG Multiemployer Plans”
shall mean the American Maritime Officers Pension Plan, the Seafarers Pension Plan and the Marine Engineers’ Beneficial Association
Defined Benefit Pension Plan.

 

“OSG Nonqualified Plan”
shall mean the OSG Supplemental Executive Retirement Plan.

 

“OSG Option” shall mean
an option to purchase OSG Common Stock granted pursuant to an OSG Equity Plan that is outstanding as of immediately prior to the
Effective Time.

 

“OSG Performance Based Unit”
shall mean a performance based unit granted pursuant to an OSG Equity Plan that is outstanding as of immediately prior to the Effective
Time.

 

“OSG Post-Distribution Stock Value”
shall mean the volume weighted average per share price on the NYSE during regular trading hours of OSG Common Stock for the 20
Trading Days following the Distribution Date.

 

    	 	-5-	 

     

    

 

“OSG Pre-Distribution Stock Value”
shall mean the volume weighted average per share price of OSG Common Stock, trading regular way with due bills on the NYSE during
regular trading hours for, if the Distribution Date is on a Trading Day, the 20 Trading Days ending on the Distribution Date or,
if the Distribution Date is not on a Trading Day, the 20 Trading Days ending on the last Trading Day prior to the Distribution
Date.

 

“OSG Price Ratio” shall
mean the quotient obtained by dividing the OSG Post-Distribution Stock Value by the OSG Pre-Distribution Stock Value.

 

“OSG Restricted Stock Award”
shall mean a restricted stock award granted pursuant to an OSG Equity Plan that is outstanding as of immediately prior to the Effective
Time and held by an OSG Group non-employee director or employee.

 

“OSG Restricted Stock Unit”
shall mean a restricted stock unit granted pursuant to an OSG Equity Plan that is outstanding as of immediately prior to the Effective
Time.

 

“OSG Retained Retirement Plans”
shall mean the plans set forth in Schedule 1.01.

 

“OSG Savings Plan” shall
mean the OSG Employee Savings Plan.

 

“OSG Stock Ratio” shall
mean the quotient obtained by dividing the OSG Pre-Distribution Stock Value by the OSG Post-Distribution Stock Value.

 

“OSG U.K. Pension Plan”
shall mean the OSG Ship Management UK Ltd. Retirement Benefits Plan.

 

“OSG U.S. Retirement Plans”
shall mean the Maritrans Inc. Defined Benefit Retirement Plan and the OSG Multiemployer Plans.

 

“OSG Welfare Plan” shall
mean any Welfare Plan established, sponsored, maintained, or contributed to by OSG or any of its Subsidiaries for the benefit of
Employees or Former Employees, but excluding any INSW Welfare Plan.

 

“Party” shall mean a
party to this Agreement.

 

“Person” shall have the
meaning set forth in the Separation and Distribution Agreement.

 

“Providing Party” shall
have the meaning set forth in Section 2.02(b).

 

“Record Date” shall have
the meaning set forth in the Separation and Distribution Agreement.

 

“Requesting Party” shall
have the meaning set forth in Section 2.02(b).

 

“Restricted Period” shall
have the meaning set forth in Section 3.02(a).

 

“Securities Act” shall
mean the U.S. Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder.

 

“Separation” shall have
the meaning set forth in the recitals to this Agreement.

 

“Separation and Distribution Agreement”
shall have the meaning set forth in the recitals to this Agreement.

 

“Subsidiary” shall have
the meaning set forth in the Separation and Distribution Agreement.

 

“Trading Day” shall mean
any day on which the NYSE is open for the buying and selling of securities.

 

“Transfer Effective Time”
shall mean 12:00 AM, New York City time, on November 30, 2016.

 

“Transferred Account Balances”
shall have the meaning set forth in Section 7.01(d).

 

    	 	-6-	 

     

    

 

“Transition Services Agreement”
shall have the meaning set forth in the Separation and Distribution Agreement.

 

“U.S.” shall mean the
United States of America.

 

“Welfare Plan” shall
mean any “welfare plan” (as defined in Section 3(1) of ERISA) or a “cafeteria plan” under Section 125
of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical, prescription
drug, dental, vision, mental health, substance abuse, and retiree health), disability benefits, or life, accidental death and dismemberment,
and business travel insurance, pre-tax premium conversion benefits, dependent care assistance programs, employee assistance programs,
paid time-off programs, contribution funding toward a health savings account, flexible spending accounts, or cashable credits.

 

Section 1.02.         Interpretation.
Section 10.16 of the Separation and Distribution Agreement is hereby incorporated by reference.

 

Article
II

GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES

 

Section 2.01.         General
Principles.

 

(a)          Acceptance
and Assumption of INSW Liabilities. On or prior to the Transfer Effective Time, but in any case prior to the Effective Time,
except as expressly set forth herein or as otherwise agreed by the Parties in accordance with the terms hereof, INSW and the applicable
INSW designees shall accept, assume, and agree to faithfully perform, discharge, and fulfill all of the Liabilities related to
or arising from the INSW Business and the employment or potential employment of any person, in accordance with their respective
terms (each of which shall be considered a INSW Liability), including with respect to any Individual Agreement, regardless of when
or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the Transfer
Effective Time, regardless of where or against whom such Liabilities are asserted or determined (including any Liabilities arising
out of claims made by OSG’s or INSW’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries,
or Affiliates against any member of the OSG Group or the INSW Group) or whether asserted or determined prior to the date hereof,
and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud, or misrepresentation
by any member of the OSG Group or the INSW Group, or any of their respective directors, officers, Employees, Former Employees,
agents, Subsidiaries, or Affiliates, including the following:

 

(i)           any
and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), including equity compensation
as set forth in Section 4.02, commissions, bonuses, and any other employee compensation or benefits payable to or on behalf of
any INSW Group Employees and Former INSW Group Employees after the Transfer Effective Time, without regard to when such wages,
salaries, incentive compensation, commissions, bonuses, or other employee compensation or benefits are or may have been awarded
or earned;

 

(ii)          any
and all Liabilities whatsoever with respect to claims made by or with respect to any INSW Group Employees or Former INSW Group
Employees in connection with any Benefit Plan not retained or assumed by any member of the OSG Group pursuant to this Agreement,
the Separation and Distribution Agreement, or any Ancillary Agreement; and

 

(iii)         any
and all Liabilities expressly assumed or retained by any member of the INSW Group pursuant to this Agreement.

 

(b)          Acceptance
and Assumption of OSG Liabilities. On or prior to the Transfer Effective Time, but in any case prior to the Effective Time,
except as expressly set forth herein or as otherwise agreed by the Parties in accordance with the terms hereof, OSG and certain
members of the OSG Group designated by OSG shall accept, assume, and agree to faithfully perform, discharge, and fulfill all of
the Liabilities related to or arising from the OSG Business and the employment or potential employment of any person, in accordance
with their respective terms (each of which shall be considered an OSG Liability), regardless of when or where such Liabilities
arose or arise, or 

 

    	 	-7-	 

     

    

 

whether the facts on which they are based occurred prior to or subsequent to the Transfer Effective Time, regardless
of where or against whom such Liabilities are asserted or determined (including any Liabilities arising out of claims made by OSG’s
or INSW’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries, or Affiliates against any member
of the OSG Group or the INSW Group) or whether asserted or determined prior to the date hereof, and regardless of whether arising
from or alleged to arise from negligence, recklessness, violation of Law, fraud, or misrepresentation by any member of the OSG
Group or the INSW Group, or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries, or
Affiliates, including the following:

 

(i)           any
and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), equity compensation (as the same
may be modified by this Agreement), commissions, bonuses, and any other employee compensation or benefits payable to or on behalf
of any OSG Group Employees and Former OSG Group Employees after the Transfer Effective Time, without regard to when such wages,
salaries, incentive compensation, equity compensation, commissions, bonuses, or other employee compensation or benefits are or
may have been awarded or earned and equity compensation (as the same may be modified by this Agreement) granted under the OSG Equity
Plans and outstanding as of the later of the Effective Time and the Transfer Effective Time;

 

(ii)         any
and all Liabilities whatsoever with respect to claims made by or with respect to any OSG Group Employees or Former OSG Group Employees
in connection with any Benefit Plan not retained or assumed by any member of the INSW Group pursuant to this Agreement, the Separation
and Distribution Agreement, or any Ancillary Agreement; and

 

(iii)        any
and all Liabilities expressly assumed or retained by any member of the OSG Group pursuant to this Agreement.

 

(c)          Unaddressed
Liabilities. To the extent that this Agreement does not address particular Liabilities under any Benefit Plan and the Parties
later determine that they should be allocated in connection with the Distribution, the Parties shall agree in good faith on the
allocation, taking into account the handling of comparable Liabilities under this Agreement.

 

Section 2.02.         Service
Credit.

 

(a)          Service
for Eligibility, Vesting, and Benefit Purposes. The INSW Benefit Plans shall, and INSW shall cause each member of the INSW
Group to, recognize each INSW Group Employee’s and each Former INSW Group Employee’s full service with OSG or any of
its Subsidiaries or predecessor entities at or before the Effective Time, to the same extent that such service was credited by
OSG for similar purposes prior to the Effective Time as if such full service had been performed for a member of the INSW Group,
for purposes of eligibility, vesting, and determination of level of benefits under any such INSW Benefit Plan.

 

(b)          Evidence
of Prior Service. Notwithstanding anything in this Agreement to the contrary, but subject to Section 3.02 and applicable
Law, upon reasonable request by either Party (the “Requesting Party”), the other Party (the “Providing
Party”) will provide to the Requesting Party copies of any records available to the Providing Party to document the service,
plan participation, and membership of Former Employees of the Providing Party who are then Employees of the Requesting Party, and
will, upon reasonable request, cooperate with the Requesting Party to resolve any discrepancies and use its commercially reasonable
efforts to obtain any missing data for purposes of determining benefit eligibility, participation, vesting, and calculation of
benefits with respect to any such Employee.

 

Section 2.03.         Benefit
Plans.

 

(a)          Establishment
of Plans. INSW shall, or shall cause an applicable member of the INSW Group to, adopt Benefit Plans (and related trusts, if
applicable), with terms comparable (or such other standard as is specified in this Agreement with respect to any particular Benefit
Plan) to those of the corresponding OSG Benefit Plans in which an INSW Group Employee or Former INSW Group Employee was eligible
to participate as of immediately prior to the Effective Time or such later date as agreed by the Parties; provided, however,
that INSW may limit participation in any such INSW Benefit Plan to INSW Group Employees and Former INSW Group Employees who participated
or were eligible to participate in the corresponding OSG Benefit Plan immediately prior to the Transfer Effective Time.

 

    	 	-8-	 

     

    

 

(b)          Information
and Operation. OSG shall use its commercially reasonable efforts to provide INSW with information describing each OSG Benefit
Plan election made by a INSW Group Employee or Former INSW Group Employee that may have application to INSW Benefit Plans from
and after the Transfer Effective Time, and INSW shall use its commercially reasonable efforts to administer the INSW Benefit Plans
using those elections. Each Party shall, upon reasonable request, provide the other Party and the other Party’s respective
Affiliates, agents, and vendors all information reasonably necessary to the other Party’s operation or administration of
its Benefit Plans.

 

(c)          No
Duplication or Acceleration of Benefits. Notwithstanding anything to the contrary in this Agreement, the Separation and Distribution
Agreement, or any Ancillary Agreement, no participant in any INSW Benefit Plan shall receive service credit or benefits to the
extent that receipt of such service credit or benefits would result in duplication of benefits provided to such participant by
the corresponding OSG Benefit Plan, or any other plan, program, or arrangement sponsored or maintained by a member of the OSG Group.
Furthermore, unless expressly provided for in this Agreement, in the Separation and Distribution Agreement, or in any Ancillary
Agreement, or required by applicable Law, no provision in this Agreement shall be construed to create any right to accelerate vesting
or entitlements under any compensation or Benefit Plan, program, or arrangement sponsored or maintained by a member of the OSG
Group or member of the INSW Group on the part of any Employee or Former Employee.

 

(d)          No
Expansion of Participation. Unless otherwise expressly provided in this Agreement, as otherwise determined or agreed to by
OSG and INSW, as required by applicable Law, or as explicitly set forth in a INSW Benefit Plan or OSG Benefit Plan, (i) a
INSW Group Employee or Former INSW Group Employee shall be entitled to participate in the INSW Benefit Plans at the Transfer Effective
Time only to the extent that such INSW Group Employee or Former INSW Group Employee was entitled to participate in the corresponding
OSG Benefit Plan as in effect immediately prior to the Transfer Effective Time (to the extent that such INSW Group Employee or
Former INSW Group Employee does not participate in the respective INSW Benefit Plan immediately prior to the Transfer Effective
Time) and (ii) an OSG Group Employee or Former OSG Group Employee shall be entitled to participate in the OSG Benefit Plans
at the Transfer Effective Time only to the extent that such OSG Group Employee or Former OSG Group Employee was entitled to participate
in the OSG Benefit Plan as in effect immediately prior to the Transfer Effective Time, it being understood that this Agreement
does not expand (a) the number of INSW Group Employees or Former INSW Group Employees entitled to participate in any INSW
Benefit Plan, (b) the number of OSG Group Employees or Former OSG Group Employees entitled to participate in any OSG Benefit
Plan, or (c) the participation rights of INSW Group Employees or Former INSW Group Employees in any INSW Benefit Plans beyond
the rights of such INSW Group Employees or Former INSW Group Employees under the corresponding OSG Benefit Plans.

 

(e)          Transition
Services. The Parties acknowledge that the OSG Group or the INSW Group may provide administrative services for certain of the
other Party’s compensation and benefit programs for a transitional period under the terms of the Transition Services Agreement.
The Parties agree to enter into a business associate agreement (if required by HIPAA or other applicable health information privacy
Laws) in connection with such Transition Services Agreement.

 

(f)          Beneficiaries.
References to OSG Group Employees, Former OSG Group Employees, INSW Group Employees, Former INSW Group Employees, and nonemployee
directors of either OSG or INSW, shall be deemed to refer to their beneficiaries, dependents, survivors, and alternate payees,
as applicable.

 

Section 2.04.         Individual
Agreements.

 

(a)          Assignment
by OSG. To the extent necessary in order to effectuate the intent of this Agreement, OSG shall assign, or cause an applicable
member of the OSG Group to assign, to INSW or another member of the INSW Group, as designated by INSW, all Individual Agreements,
with such assignment to be effective as of the Transfer Effective Time; provided, however, that to the extent that
assignment of any such Individual Agreement is not permitted by the terms of such agreement or by applicable Law, effective as
of the Transfer Effective Time, each member of the INSW Group shall be considered to be a successor to each member of the OSG
Group for purposes of, and a third-party beneficiary with respect to, such Individual Agreement, such that each member of the
INSW Group shall enjoy all of the rights and benefits under such agreement (including rights and benefits as a third-party

 

    	 	-9-	 

     

    

 

beneficiary), with
respect to the business operations of the INSW Group; and provided, further, that in no event shall OSG be permitted
to enforce any Individual Agreement (including any agreement containing noncompetition or nonsolicitation covenants) against a
INSW Group Employee or Former INSW Group Employee for action taken in such individual’s capacity as a INSW Group Employee
or Former INSW Group Employee.

 

(b)          Assumption
by INSW. Effective as of the Transfer Effective Time or such later date as agreed by the Parties, INSW shall assume and honor,
or shall cause a member of the INSW Group to assume and honor, any agreement to which any INSW Group Employee or Former INSW Group
Employee is a party with any member of the OSG Group, including any Individual Agreement.

 

Section 2.05.         [RESERVED].

 

Section 2.06.         Non-U.S.
Regulatory Compliance. OSG shall have the authority to adjust the treatment described in this Agreement and to make
corresponding equitable adjustments to the Separation and Distribution Agreement with respect to INSW Group Employees who are
located outside of the U.S. in order to ensure compliance with the applicable laws or regulations of countries outside of the
U.S. or to preserve the tax benefits provided under local tax law or regulation before the Distribution.

 

Article
III

 

ASSIGNMENT
OF EMPLOYEES

 

Section 3.01.         Active
Employees.

 

(a)          Assignment
and Transfer of Employees.

 

(i)           Generally.
Effective no later than immediately prior to the Transfer Effective Time or such later date as agreed by the Parties pursuant to
clause (ii) of this Section 3.01(a), (a) the applicable member of the OSG Group shall have taken such actions as are necessary
to ensure that each individual who is intended to be an employee of the INSW Group as of immediately after the Transfer Effective
Time or such later date as agreed by the Parties (including any such individual who is not actively working as of the Transfer
Effective Time as a result of an illness, injury, or leave of absence approved by the primary Human Resources officer of OSG or
otherwise taken in accordance with applicable Law) (collectively, the “INSW Group Employees”) is employed by
a member of the INSW Group as of immediately after the Transfer Effective Time or such later date as agreed by the Parties, and
(b) the applicable member of the OSG Group shall have taken such actions as are necessary to ensure that each individual who
is intended to be an employee of the OSG Group as of immediately after the Transfer Effective Time or such later date as agreed
by the Parties (including any such individual who is not actively working as of the Transfer Effective Time as a result of an illness,
injury, or leave of absence approved by the primary Human Resources officer of OSG or otherwise taken in accordance with applicable
Law) and any other individual employed by the OSG Group as of the Transfer Effective Time who is not a INSW Group Employee (collectively,
the “OSG Group Employees”) is employed by a member of the OSG Group as of immediately after the Transfer Effective
Time or such later date as agreed by the Parties. Each of the Parties agrees to execute, and to seek to have the applicable Employees
execute, such documentation, if any, as may be necessary to reflect such assignment and/or transfer.

 

(ii)          Delayed
Transfer Employees. Notwithstanding (i), the Parties acknowledge and agree that there may be a limited number of INSW
Group Employees whose employment may, within the 60-day period following the Transfer Effective Time (the “Delayed Transfer
Period”), be directly transferred from the OSG Group to the INSW Group (“INSW Delayed Transfer Employees”
or the “Delayed Transfer Employees”), as mutually agreed between the primary Human Resources officer of OSG
and the primary Human Resources officer of INSW. Upon the effective date of any such transfer of employment (a “Delayed
Transfer Date”), any Delayed Transfer Employee shall be treated, for all purposes under this Agreement as if such Delayed
Transfer Employee had been a INSW Group Employee or OSG Group Employee, respectively, as of the Transfer Effective Time, other
than with respect to any OSG Awards held by any Delayed Transfer Employee as of immediately prior to the Effective Time, which
awards shall be adjusted in the manner applicable to OSG Group Employees as of the Effective Time in accordance with

 

    	 	-10-	 

     

    

 

the provisions
of Section 4.02, and shall not be required under this Agreement to be adjusted further upon the Delayed Transfer Date.

 

(iii)        Subsequently
Terminated Employees. Notwithstanding (i) or (ii) of this Section 3.01(a), the Parties acknowledge and agree that there
may be a limited number of INSW Group Employees and OSG Group Employees whose employment will be terminated by INSW or OSG, respectively,
between one and six months after the Effective Time, and the costs associated with such termination (including with respect to
ongoing monthly salary payments, severance payments and benefits and any payroll and related taxes) shall be shared as agreed
by the Parties, acting in good faith.

 

(b)          At-Will
Status. Nothing in this Agreement shall create any obligation on the part of any member of the OSG Group or any member of the
INSW Group to (i) continue the employment of any Employee or permit the return from a leave of absence for any period after
the date of this Agreement (except as required by applicable Law) or (ii) change the employment status of any Employee from
“at-will,” to the extent that such Employee is an “at-will” employee under applicable Law.

 

(c)          Severance.
The Parties acknowledge and agree that the Distribution and the assignment, transfer, or continuation of the employment of Employees
as contemplated by this Section 3.01 shall not be deemed an involuntary actual or constructive termination of employment
entitling any INSW Group Employee or OSG Group Employee to severance payments or benefits except as required by applicable Law.

 

(d)          No
Change of Control or Change in Control. The Parties acknowledge and agree that neither the consummation of the Distribution
nor any transaction contemplated by this Agreement, the Separation and Distribution Agreement, or any other Ancillary Agreement
shall be deemed a “change of control,” “change in control,” or term of similar import for purposes of any
Benefit Plan sponsored or maintained by any member of the OSG Group or member of the INSW Group.

 

(e)          Payroll
and Related Taxes. With respect to any INSW Group Employee or group of INSW Group Employees, the Parties shall, or shall cause
their respective Subsidiaries to, (i) treat INSW (or the applicable member of the INSW Group) as a “successor employer”
and OSG (or the applicable member of the OSG Group) as a “predecessor,” within the meaning of Sections 3121(a)(1) and
3306(b)(1) of the Code, for purposes of taxes imposed under the U.S. Federal Insurance Contributions Act, as amended (“FICA”),
or the U.S. Federal Unemployment Tax Act, as amended (“FUTA”), (ii) cooperate with each other to avoid,
to the extent possible, the restart of FICA and FUTA upon or following the Effective Time with respect to each such INSW Group
Employee for the tax year during which the Effective Time occurs, and (iii) use commercially reasonable efforts to implement
the alternate procedure described in Section 5 of Revenue Procedure 2004-53; provided, however, that, to the
extent that INSW (or the applicable member of the INSW Group) cannot be treated as a “successor employer” to OSG (or
the applicable member of the OSG Group) within the meaning of Sections 3121(a)(1) and 3306(b)(1) of the Code with respect
to any INSW Group Employee or group of INSW Group Employees, INSW will (a) be responsible for all payroll obligations, tax
withholding, and reporting obligations regarding such INSW Group Employees for the taxable year commencing on January 1, 2017 and
(b) furnish a Form W-2 or similar earnings statement to all such INSW Group Employees for such taxable year. The Parties also
shall take, or shall cause their respective Subsidiaries to take, such reasonable actions as are necessary to minimize any adverse
social tax impact on OSG, INSW, and the Employees in jurisdictions other than the U.S., of the Separation, the Distribution, and
any change in employment relationship caused by the Separation and Distribution.

 

(f)          Immigration.
From and after the Effective Time, INSW shall, or shall cause its applicable Subsidiary to, continue to process and support green
card or similar applications that are in process in respect of INSW Group Employees who were previously agreed to between the Parties.

 

Section 3.02.         No-Hire
and Nonsolicitation.

 

(a)          No-Hire.
Each Party agrees that, for a period of 18 months following the Distribution Date (the “Restricted Period”),
such Party shall not, and shall cause its Subsidiaries and Affiliates not to, without the prior written consent of the Chief Executive
Officer of the other Party, directly or indirectly hire as an employee or 

 

    	 	-11-	 

     

    

 

an independent contractor any individual who is an OSG
Group Employee, in the case of INSW, or a INSW Group Employee, in the case of OSG.

 

(b)          Nonsolicitation.
Each Party agrees that, during the Restricted Period, such Party shall not, and shall cause its Subsidiaries and Affiliates not
to, without prior written consent of the Chief Executive Officer of the other Party, either directly or indirectly and whether
on its own behalf or in service or on behalf of others, solicit, aid, induce, or encourage any individual who is an OSG Group Employee,
in the case of INSW, or a INSW Group Employee, in the case of OSG, to leave his or her employment.

 

(c)          Limited
Exceptions. Notwithstanding (a) and (b), this Section 3.02 shall not prohibit (i) generalized
solicitations that are not directed to specific Persons or Employees of the other Party, (ii) the solicitation and hiring
of a Person whose employment was involuntarily terminated by the other Party, or (iii) the solicitation and hiring of a Person
after receipt by the soliciting Party (in advance of any solicitation or, in the case of a response to a general solicitation as
permitted under clause (i) above, in advance of any subsequent solicitation in connection with the recruiting process) of
the express written consent of the Chief Executive Officer of the Party that employs the Person who is to be solicited and/or hired.
Except as provided in clause (ii) above with respect to involuntary terminations, without regard to the use of the term “Employee”
or “employs,” the restrictions under this Section 3.02 shall be applicable to (a) OSG Group Employees
whose employment terminates after the Effective Time, and (b) INSW Group Employees whose employment terminates after the Effective
Time, in each case, until the date that is six months after such Employee’s last date of employment with OSG or INSW, as
applicable. The restrictions under this Section 3.02 shall not apply to Former OSG Group Employees or Former INSW Group
Employees whose most recent employment with OSG and its Subsidiaries was terminated prior to the Effective Time.

 

Article
IV

Equity, Bonus, and Executive Compensation

 

Section 4.01.         Generally.
Each OSG Award granted that is outstanding as of immediately prior to the Effective Time shall be adjusted as described below;
provided, however, that, effective immediately prior to the Effective Time, the OSG Compensation Committee may provide
for different adjustments with respect to some or all OSG Awards to the extent that the OSG Compensation Committee deems such
adjustments necessary and appropriate. Any adjustments made by the OSG Compensation Committee pursuant to the foregoing sentence
shall be deemed incorporated by reference herein as if fully set forth below and shall be binding on the Parties and their respective
Affiliates. Before the Effective Time, the INSW Equity Plan shall be established, with such terms as are necessary to permit the
implementation of the provisions of Section 4.02.

 

Section 4.02.         Equity
Awards.

 

(a)          Stock
Options.

 

(i)           OSG
Group Employees. Each OSG Option that is outstanding immediately prior to the Effective Time and held by an OSG Group Employee
shall remain an option to purchase OSG Common Stock (each such option, an “Adjusted OSG Option”) and shall be
subject to the same terms and conditions (including with respect to vesting and expiration) after the Effective Time as were applicable
to such OSG Option immediately prior to the Effective Time (except as otherwise provided herein, including in this Section 4.02(a)(i)
and Section 4.02(e)); provided, however, that from and after the Effective Time:

 

(A)         the
per-share exercise price of each such Adjusted OSG Option shall be equal to the product of (A) the per-share exercise price of
the corresponding OSG Option immediately prior to the Effective Time multiplied by (B) the OSG Price Ratio, rounded up to the nearest
whole hundredth of a cent; and

 

(B)         the
number of OSG Common Stock subject to each such Adjusted OSG Option shall be equal to the product of (A) the number of OSG Common
Stock subject to the corresponding OSG Option immediately prior to the Effective Time multiplied by (B) the OSG Stock Ratio, with
any fractional share rounded down to the nearest whole share.

 

    	 	-12-	 

     

    

 

(ii)          INSW
Group Employees. Each OSG Option that is outstanding immediately prior to the Effective Time and held by an INSW Group Employee
shall be converted as of the Effective Time into an INSW Option to purchase INSW Stock (each such option, an “INSW Spin
Option”) and shall be subject to the same terms and conditions (including with respect to vesting and expiration) after
the Effective Time as were applicable to the corresponding OSG Option immediately prior to the Effective Time (except as otherwise
provided herein, including in Section 4.02(e)); provided, however, that from and after the Effective
Time:

 

(A)         the
per-share exercise price of each such INSW Spin Option shall be equal to the product of (A) the per-share exercise price of the
corresponding OSG Option immediately prior to the Effective Time multiplied by (B) the INSW Price Ratio, rounded up to the nearest
whole hundredth of a cent; and

 

(B)         the
number of INSW Stock subject to each such INSW Spin Option shall be equal to the product of (A) the number of OSG Common Stock
subject to the corresponding OSG Option immediately prior to the Effective Time multiplied by (B) the INSW Stock Ratio, with any
fractional share rounded down to the nearest whole share.

 

(iii)          Notwithstanding
anything to the contrary in this Section 4.02(a), the exercise price, the number of OSG Common Stock and INSW Stock subject to
each Adjusted OSG Option and INSW Spin Option, and the terms and conditions of exercise of such options shall be determined in
a manner consistent with the requirements of Section 409A of the Code.

 

(b)          Performance
Based Units.

 

(i)           Performance
Based Units Held by OSG Group Employees. Each OSG Performance Based Unit that is outstanding immediately prior to the Effective
Time and that is held by an OSG Group Employee shall be adjusted by multiplying the number of performance based units subject to
such OSG Performance Based Unit by the OSG Stock Ratio (each such adjusted OSG Performance Based Unit, an “Adjusted OSG
Performance Based Unit”). If the resulting product includes a fractional performance based unit, the number of performance
based units subject to such Adjusted OSG Performance Based Unit shall be rounded down to the nearest whole performance based unit.
Each such Adjusted OSG Performance Based Unit shall be subject to the same terms and conditions after the Effective Time as were
applicable to such OSG Performance Based Unit prior to the Effective Time (except as otherwise provided herein, including in Section 4.02(e)).

 

(ii)          Performance
Based Units Held by INSW Group Employees.

 

(A)         Each
OSG Performance Based Unit that is vested and outstanding immediately prior to the Effective Time and that is held by an INSW Group
Employee shall be converted into an Adjusted OSG Performance Based Unit in accordance with Section 4.02(b)(i) above and
the applicable performance metrics shall be adjusted accordingly.

 

(B)         Each
OSG Performance Based Unit that is unvested and outstanding immediately prior to the Effective Time and that is held by an INSW
Group Employee shall be converted as of the Effective Time into an INSW performance based unit (each such award, an “INSW
Performance Based Unit”), with the number of performance based units subject to each such INSW Performance Based Unit
to be set at a number equal to the product of (A) the number of performance based units subject to the corresponding OSG Performance
Based Unit immediately prior to the Effective Time multiplied by (B) the INSW Stock Ratio, with any fractional performance based
unit rounded down to the nearest whole performance based unit, and the applicable performance metrics shall be adjusted accordingly.
Each INSW Performance Based Unit shall otherwise be subject to the same terms and conditions after the Effective Time as were applicable
to such OSG Performance Based Unit prior to the Effective Time (except as otherwise provided herein, including in Section 4.02(e).

 

(c)          Restricted
Stock Units.

 

    	 	-13-	 

     

    

 

(i)           Restricted
Stock Units Held by OSG Group Employees. Each OSG Restricted Stock Unit that is outstanding immediately prior to the Effective
Time and that is held by an OSG Group Employee shall be adjusted by multiplying the number of restricted stock units subject to
such OSG Restricted Stock Unit by the OSG Stock Ratio (each such adjusted OSG Restricted Stock Unit, an “Adjusted OSG
Restricted Stock Unit”). If the resulting product includes a fractional restricted stock unit, the number of restricted
stock units subject to such Adjusted OSG Restricted Stock Unit shall be rounded down to the nearest whole restricted stock unit.
Each such Adjusted OSG Restricted Stock Unit shall be subject to the same terms and conditions after the Effective Time as were
applicable to such OSG Restricted Stock Unit prior to the Effective Time (except as otherwise provided herein, including in Section 4.02(e).

 

(ii)          Restricted
Stock Units Held by INSW Group Employees.

 

(A)         Each
OSG Restricted Stock Unit that is vested and outstanding immediately prior to the Effective Time and that is held by an INSW Group
Employee shall be converted into an Adjusted OSG Restricted Stock Unit in accordance with Section 4.02(c)(i) above.

 

(B)         Each
OSG Restricted Stock Unit that is unvested and outstanding immediately prior to the Effective Time and that is held by an INSW
Group Employee shall be converted as of the Effective Time into an INSW restricted stock unit (each such award, an “INSW
Restricted Stock Unit”), with the number of restricted stock units subject to each such INSW Restricted Stock Unit to
be set at a number equal to the product of (A) the number of restricted stock units subject to the corresponding OSG Restricted
Stock Unit immediately prior to the Effective Time multiplied by (B) the INSW Stock Ratio, with any fractional restricted stock
unit rounded down to the nearest whole restricted stock unit. Each INSW Restricted Stock Unit shall otherwise be subject to the
same terms and conditions after the Effective Time as were applicable to such OSG Restricted Stock Unit prior to the Effective
Time (except as otherwise provided herein, including in Section 4.02(e).

 

(d)          Director
Restricted Stock. Each OSG Restricted Stock Award that is outstanding immediately prior to the Record Date and that is held
by a director of OSG shall be treated with respect to the Distribution on the same terms and conditions as shall apply to other
OSG stockholders; provided, that any cash or property received as a result of the Distribution shall be subject to the same
vesting and forfeiture as applies to the underlying OSG Restricted Stock Award.

 

(e)          Tax
Reporting and Withholding.

 

(i)           After
the Effective Time, Adjusted OSG Awards and OSG Restricted Stock Awards, regardless of by whom held, shall be settled by and the
obligation of OSG, and INSW Awards, regardless of by whom held, shall be settled by and the obligation of INSW.

 

(ii)          Unless
otherwise required by applicable Laws, INSW shall be responsible for all income, payroll, fringe benefit, social insurance, payment
on account, or other taxes related to or otherwise owed on income of INSW Group Employees or Former INSW Group Employees related
to INSW Awards, and OSG shall be responsible for all income, payroll, fringe benefit, social insurance, payment on account, or
other taxes related to or otherwise owed related to Adjusted OSG Awards.

 

(f)           Registration
and Other Regulatory Requirements. INSW agrees to file an S-8 registration statement with respect to, and to cause to be registered
pursuant to the Securities Act, the INSW Stock authorized for issuance under the INSW Equity Plan, as required pursuant to the
Securities Act. The Parties shall take such additional actions as are deemed necessary or advisable to effectuate the foregoing
provisions of this Section 4.02(f), including compliance with securities Laws and other legal requirements associated
with equity compensation awards in affected non-U.S. jurisdictions.

 

Section 4.03.         Bonus
Plans.

 

(a)          Establishment
of INSW Bonus Plans. INSW shall, or shall cause another member of the INSW Group to, establish the INSW Bonus Plans.

 

    	 	-14-	 

     

    

 

(b)          2016
Annual Bonus. Effective as of the Transfer Effective Time, the Liability in respect of bonus awards allocable to INSW Group
Employees or Former INSW Group Employees under the OSG Bonus Plans in respect of 2016 shall be assumed by the INSW Group. OSG and
INSW shall pay the amounts awarded to their respective Employees no later than March 15, 2017 (in the case of Employees located
in the U.S.) or March 31, 2017 (in the case of Employees located outside the U.S.), except as otherwise determined by the Compensation
Committee of the Board of Directors of such Employee’s employer.

 

(c)          Allocation
of Liabilities. Except as otherwise provided in this Agreement, (i) the OSG Group shall be solely responsible for funding,
paying, and discharging all obligations relating to any annual incentive bonus awards under any OSG annual incentive plan or other
short-term compensation plan with respect to payments earned before, as of, or after the Transfer Effective Time to OSG Group Employees
or Former OSG Group Employees, and no member of the INSW Group shall have any obligations with respect thereto; and (ii) the
INSW Group shall be solely responsible for funding, paying, and discharging all obligations relating to any annual incentive bonus
awards under any INSW Group annual incentive plan or other short-term incentive compensation plan with respect to payments earned
before, as of, or after the Transfer Effective Time to INSW Group Employees or Former INSW Group Employees, and no member of the
OSG Group shall have any obligations with respect thereto.

 

Section 4.04.         Director
Compensation.

 

(a)          Establishment
of INSW Compensation Program for Nonemployee Directors. INSW shall establish the INSW compensation program for nonemployee
directors, with substantially the same terms as of immediately prior to the Effective Time as the OSG compensation program for
nonemployee directors.

 

(b)          Allocation
of Directors’ Compensation. OSG shall be responsible for the payment of any fees for service on the OSG Board that are
earned at, before, or after the Effective Time, and INSW shall not have any responsibility for any such payments. With respect
to any INSW nonemployee director, INSW shall be responsible for the payment of any fees for service on the INSW Board that are
earned at any time after the Effective Time and OSG shall not have any responsibility for any such payments. OSG Awards held by
nonemployee directors as of immediately prior to the Effective Time shall be treated as described in Section 4.02.

 

Section 4.05.         Retention
Awards. OSG and INSW shall share the obligations for cash-based retention awards to which an OSG Group Employee or INSW
Group Employee may become entitled based on such employee’s relative service to OSG or INSW prior to the settlement date
of each such award (as provided in applicable award agreements), as determined in good faith by the Parties.

 

Article
V

QUALIFIED RETIREMENT PLANS

 

Section 5.01.         OSG
U.S. Retirement Plans. OSG U.S. Retirement Plans After Transfer Effective Date. From and after the Transfer Effective
Time, (i) each of the OSG U.S. Retirement Plans shall continue to be responsible for Liabilities in respect of OSG Group
Employees, Former OSG Group Employees, and Former INSW Group Employees, and (ii) no INSW Group Employees shall accrue any
benefits under the OSG U.S. Retirement Plans. Without limiting the generality of the foregoing, INSW Group Employees shall cease
to be participants in each of the OSG U.S. Retirement Plans, effective as of the Transfer Effective Time.

 

Section 5.02.         INSW
Retained Retirement Plans. As of the Transfer Effective Time, the INSW Group shall retain (or assume to the extent necessary)
sponsorship of the INSW Retained Retirement Plans, and, from and after the Transfer Effective Time, all Assets and Liabilities
thereunder shall be Assets and Liabilities of the INSW Group.

 

Section 5.03.         OSG
Retained Retirement Plans. As of the Transfer Effective Time, the OSG Group shall retain (or assume to the extent necessary)
sponsorship of the OSG Retained Retirement Plans, and, from and after the Transfer Effective Time, all Assets and Liabilities
thereunder shall be the Assets and Liabilities of the OSG Group.

 

Section 5.04.         INSW
Savings Plan.

 

    	 	-15-	 

     

    

 

(a)          Adoption
of Plan. INSW shall adopt the INSW Savings Plan. INSW shall provide OSG with (i) a copy of the INSW Savings Plan; (ii) confirmation
that the INSW Board (or its authorized committee or other delegate) has approved the adoption of the INSW Savings Plan and the
related trust(s) and the assumption by the INSW Savings Plan of the Liabilities described in Section 5.04(b); and (iii) either
(a) a favorable determination letter issued by the IRS with respect to the INSW Savings Plan and its related trust or (b) an
opinion of counsel, which counsel and opinion are reasonably satisfactory to OSG, with respect to the qualified status of the INSW
Savings Plan under Section 401(a) of the Code and the tax-exempt status of its related trust under Section 501(a) of
the Code.

 

(b)          Transfer
of Account Balances. Not later than March 31, 2017 (or such later time as mutually agreed by the Parties), OSG shall cause
the trustee of the OSG Savings Plan to transfer from the trust(s) that forms a part of the OSG Savings Plan to the trust(s) that
forms a part of the INSW Savings Plan the account balances of the INSW Group Employees under the OSG Savings Plan, determined as
of the date of the transfer. Such transfers shall be made in kind, including promissory notes evidencing the transfer of outstanding
loans. Any Asset and Liability transfers pursuant to this Section 5.04(b) shall comply in all respects with Sections
414(l) and 411(d)(6) of the Code.

 

(c)          INSW
Savings Plan Provisions. The INSW Savings Plan shall provide that:

 

(i)          INSW
Group Employees shall (a) be eligible to participate in the INSW Savings Plan as of the Transfer Effective Time to the extent
that they were eligible to participate in the OSG Savings Plan as of immediately prior to the Transfer Effective Time, and (b) receive
credit for all service credited for that purpose under the OSG Savings Plan as of immediately prior to the Distribution as if that
service had been rendered to INSW; and

 

(ii)         the
account balance of each INSW Group Employee under the OSG Savings Plan as of the date of the transfer of Assets from the OSG Savings
Plan (including any outstanding promissory notes) shall be credited to such individual’s account balance under the INSW Savings
Plan.

 

(d)          OSG
Savings Plan after Transfer Effective Time. From and after the Transfer Effective Time, (i) the OSG Savings Plan shall
continue to be responsible for Liabilities in respect of OSG Group Employees, Former OSG Group Employees, and Former INSW Group
Employees, and (ii) no INSW Group Employees shall accrue any benefits under the OSG Savings Plan. Without limiting the generality
of the foregoing, INSW Group Employees shall cease to be participants in the OSG Savings Plan effective as of the Transfer Effective
Time.

 

(e)          Plan
Fiduciaries. For all periods after the Transfer Effective Time, the Parties agree that the applicable fiduciaries of each of
the OSG Savings Plan and the INSW Savings Plan, respectively, shall have the authority with respect to the OSG Savings Plan and
the INSW Savings Plan, respectively, to determine the investment alternatives, the terms and conditions with respect to those investment
alternatives, and such other matters as are within the scope of their duties under ERISA and the terms of the applicable plan documents.

 

(f)          No
Loss of Unvested Benefits; No Distributions. The transfer of any INSW Group Employee’s employment to the INSW Group will
not result in loss of that INSW Group Employee’s unvested benefits (if any) under the OSG Savings Plan, which benefit Liability
will be assumed under the INSW Savings Plan as provided herein. No INSW Group Employee shall be entitled to a distribution of his
or her benefit under the OSG Savings Plan or INSW Savings Plan as a result of such transfer of employment.

 

Section 5.05.         INSW
UK Pension Plan. INSW shall remain obligated pursuant to the terms of the OSG U.K. Pension Plan following the Distribution
Date with respect to INSW Group Employees who participated in such plan prior to the Distribution Date, which employees shall
continue to participate in such plan on and after the Distribution Date. OSG Group Employees who actively participated in the
OSG U.K. Pension Plan will cease to participate in the OSG U.K. Pension Plan on the Distribution Date.

 

Article
VI

NONQUALIFIED DEFERRED COMPENSATION PLANS

 

Section 6.01.         INSW
SERP.

 

    	 	-16-	 

     

    

 

(a)          Establishment
of the INSW SERP. INSW shall establish the INSW SERP.

 

(b)          Assumption
of Liabilities from OSG. As of the Transfer Effective Time, INSW shall, and shall cause the INSW SERP to assume all Liabilities
under the OSG SERP for the benefit of INSW Group Employees and their respective beneficiaries and/or alternate payees determined
as of immediately prior to the Transfer Effective Time, and the OSG Group and the OSG SERP shall be relieved of all Liabilities
for those benefits. OSG shall retain all Liabilities under the OSG SERP for the benefit for OSG Group Employees and Former Employees
and their respective beneficiaries and/or alternate payees. From and after the Transfer Effective Time, INSW Group Employees shall
cease to be participants in the OSG SERP.

 

Section 6.02.         Participation;
Distributions. The Parties acknowledge that none of the transactions contemplated by this Agreement, the Separation
and Distribution Agreement, or any other Ancillary Agreement will be treated as a “separation from service” or otherwise
trigger a payment or distribution of compensation under any of the OSG Nonqualified Plan or INSW Nonqualified Plan for any participant
and, consequently, that the payment or distribution of any compensation to which such participant is entitled under any of the
OSG Nonqualified Plan or INSW Nonqualified Plan will occur upon such participant’s separation from service from the INSW
Group or at such other time as provided in the applicable INSW Nonqualified Plan or participant’s deferral election.

 

Article
VII

WELFARE BENEFIT PLANS

 

Section 7.01.         Welfare
Plans.

 

(a)          Adoption
of INSW Welfare Plans. INSW shall, or shall cause the applicable member of the INSW Group to, adopt the INSW Welfare Plans.

 

(b)          Waiver
of Conditions; Benefit Maximums. INSW shall use commercially reasonable efforts to cause the INSW Welfare Plans to:

 

(i)           with
respect to initial enrollment as of January 1, 2017, waive (a) all limitations as to preexisting conditions, exclusions, and
service conditions with respect to participation and coverage requirements applicable to any INSW Group Employee or Former INSW
Group Employee, other than limitations that were in effect with respect to the INSW Group Employee or Former INSW Group Employee
under the applicable OSG Welfare Plan as of immediately prior to the Transfer Effective Time, and (b) any waiting period limitation
or evidence of insurability requirement applicable to a INSW Group Employee or Former INSW Group Employee other than limitations
or requirements that were in effect with respect to such INSW Group Employee or Former INSW Group Employee under the applicable
OSG Welfare Plans as of immediately prior to the Transfer Effective Time; and

 

(ii)          take
into account (a) with respect to aggregate annual, lifetime, or similar maximum benefits available under the INSW Welfare
Plans, a INSW Group Employee’s or Former INSW Group Employee’s prior claim experience under the OSG Welfare Plans and
any Benefit Plan that provides leave benefits; and (b) any eligible expenses incurred by a INSW Group Employee or Former INSW
Group Employee and his or her covered dependents during the portion of the plan year of the applicable OSG Welfare Plan ending
as of the Transfer Effective Time to be taken into account under such INSW Welfare Plan for purposes of satisfying all deductible,
coinsurance, and maximum out-of-pocket requirements applicable to such INSW Group Employee or Former INSW Group Employee and his
or her covered dependents for the applicable plan year to the same extent as such expenses were taken into account by OSG for similar
purposes prior to the Transfer Effective Time as if such amounts had been paid in accordance with such INSW Welfare Plan.

 

(c)          Health
Savings Accounts. INSW shall, or shall cause a member of the INSW Group to, establish a INSW Welfare Plan that will provide
health savings account benefits to INSW Group Employees on and after the Transfer Effective Time (a “INSW HSA”).
It is the intention of the Parties that all activity under a INSW Group Employee’s health savings account under an OSG Welfare
Plan (a “OSG HSA”) for the year in which the Transfer Effective Time occurs be treated instead as activity under
the corresponding account under the INSW HSA, such 

 

    	 	-17-	 

     

    

 

that (i) any period of participation by a INSW Group Employee in an OSG
HSA during the year in which the Transfer Effective Time occurs will be deemed a period when such INSW Group Employee participated
in the corresponding INSW HSA; (ii) all expenses incurred during such period will be deemed incurred while such INSW Group
Employee’s coverage was in effect under the corresponding INSW HSA; and (iii) all elections and reimbursements made
with respect to such period under the OSG HSA will be deemed to have been made with respect to the corresponding INSW HSA.

 

(d)          Flexible
Spending Accounts. The Parties shall use commercially reasonable efforts to ensure that as of the Transfer Effective Time any
health or dependent care flexible spending accounts of INSW Group Employees (whether positive or negative) (the “Transferred
Account Balances”) under OSG Welfare Plans are transferred, as soon as practicable after the Transfer Effective Time,
from the OSG Welfare Plans to the corresponding INSW Welfare Plans. Such INSW Welfare Plans shall assume responsibility as of the
Transfer Effective Time for all outstanding health or dependent care claims under the corresponding OSG Welfare Plans of each INSW
Group Employee for the year in which the Transfer Effective Time occurs and shall assume and agree to perform the obligations of
the corresponding OSG Welfare Plans from and after the Transfer Effective Time. As soon as practicable after the Transfer Effective
Time, and in any event within 30 days after the amount of the Transferred Account Balances is determined or such later date as
mutually agreed upon by the Parties, OSG shall pay INSW the net aggregate amount of the Transferred Account Balances, if such amount
is positive, and INSW shall pay OSG the net aggregate amount of the Transferred Account Balances, if such amount is negative.

 

(e)          Allocation
of Welfare Assets and Liabilities. Effective as of the Transfer Effective Time, the INSW Group shall assume all Liabilities
relating to, arising out of, or resulting from health and welfare coverage or claims incurred by or on behalf of INSW Group Employees
or Former INSW Group Employees or their covered dependents under the OSG Welfare Plans or INSW Welfare Plans before, at, or after
the Transfer Effective Time. No OSG Welfare Plan shall provide coverage to any INSW Group Employee or Former INSW Group Employee
after the Transfer Effective Time.

 

Section 7.02.         COBRA
and HIPAA. The OSG Group shall continue to be responsible for complying with, and providing coverage pursuant to, the
health care continuation requirements of COBRA, the certificate of creditable coverage requirements of HIPAA, and the corresponding
provisions of the OSG Welfare Plans with respect to any OSG Group Employees and any Former OSG Group Employees (and their covered
dependents) who incur a qualifying event under COBRA before, as of or after the Transfer Effective Time. Effective as of the Transfer
Effective Time, the INSW Group shall assume responsibility for complying with, and providing coverage pursuant to, the health
care continuation requirements of COBRA, the certificate of creditable coverage requirements of HIPAA, and the corresponding provisions
of the INSW Welfare Plans with respect to any INSW Group Employees and any Former INSW Group Employees (and their covered dependents)
who incur a qualifying event or loss of coverage under the OSG Welfare Plans and/or the INSW Welfare Plans before, as of, or after
the Transfer Effective Time. The Parties agree that the consummation of the transactions contemplated by the Separation and Distribution
Agreement shall not constitute a COBRA qualifying event for any purpose of COBRA.

 

Section 7.03.         Vacation,
Holidays and Leaves of Absence. Effective as of the Transfer Effective Time, the INSW Group shall assume all Liabilities
of the OSG Group with respect to vacation, holiday, annual leave, or other leave of absence, and required payments related thereto,
for each INSW Group Employee and Former INSW Group Employee. The OSG Group shall retain all Liabilities with respect to vacation,
holiday, annual leave or other leave of absence, and required payments related thereto, for each OSG Group Employee and Former
OSG Group Employee.

 

Section 7.04.         Severance
and Unemployment Compensation. Effective as of the Transfer Effective Time, the INSW Group shall assume any and all
Liabilities to, or relating to, INSW Group Employees and Former INSW Group Employees in respect of severance and unemployment
compensation, regardless of whether the event giving rise to the Liability occurred before, at, or after the Transfer Effective
Time. The OSG Group shall be responsible for any and all Liabilities to, or relating to, OSG Group Employees and Former OSG Group
Employees in respect of severance and unemployment compensation, regardless of whether the event giving rise to the Liability
occurred before, at or after the Transfer Effective Time.

 

    	 	-18-	 

     

    

 

Section 7.05.         Workers’
Compensation. With respect to claims for workers’ compensation in the U.S., (a) the INSW Group shall be responsible
for claims in respect of INSW Group Employees and Former INSW Group Employees, whether occurring before, at, or after the Transfer
Effective Time, and (b) the OSG Group shall be responsible for all claims in respect of OSG Group Employees and Former OSG
Group Employees, whether occurring before, at, or after the Transfer Effective Time. The treatment of workers’ compensation
claims by INSW with respect to OSG insurance policies shall be governed by Section 5.1, Section 5.2, Section 5.3 and Section
5.4 of the Separation and Distribution Agreement. The Parties acknowledge that any workers’ compensation policy in effect
prior to the Transfer Effective Time shall be available, pursuant to the terms and conditions thereof, for claims in respect of
INSW Group Employees and Former INSW Group Employees occurring before the Transfer Effective Time. The obligation to pay deductibles,
retrospective premium payments, or other forms of reimbursement to the insurer shall be governed by Section 5.2 of the Separation
and Distribution Agreement.

 

Section 7.06.         Insurance
Contracts. To the extent that any OSG Welfare Plan is funded through the purchase of an insurance contract or is subject
to any stop-loss contract, the Parties shall cooperate and use their commercially reasonable efforts to replicate such insurance
contracts for INSW (except to the extent that changes are required under applicable state insurance Laws or filings by the respective
insurers) and to maintain any pricing discounts or other preferential terms for both OSG and INSW for a reasonable term. Neither
Party shall be liable for failure to obtain such insurance contracts, pricing discounts, or other preferential terms for the other
Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees that such Party may incur
pursuant to this Section 7.06.

 

Section 7.07.         Third-Party
Vendors. Except as provided below, to the extent that any OSG Welfare Plan is administered by a third-party vendor,
the Parties shall cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor
for INSW and to maintain any pricing discounts or other preferential terms for both OSG and INSW for a reasonable term. Neither
Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party. Each Party
shall be responsible for any additional premiums, charges, or administrative fees that such Party may incur pursuant to this Section 7.07.

 

Article
VIII

NON-U.S. EMPLOYEES

 

INSW Group Employees and Former INSW Group
Employees who are residents outside of the U.S. or otherwise are subject to non-U.S. Law and their related benefits and Liabilities
shall be treated in the same manner as the INSW Group Employees and Former INSW Group Employees, respectively, who are residents
of the U.S. and are not subject to non-U.S. Law; provided, however, that, notwithstanding anything in this Agreement
to the contrary, all actions taken with respect to non-U.S. Employees or U.S. Employees working in non-U.S. jurisdictions shall
be subject to and accomplished in accordance with applicable Law in the custom of the applicable jurisdictions.

 

Article
IX

MISCELLANEOUS

 

Section 9.01.         Employee
Records.

 

(a)          Sharing
of Information. Subject to any limitations imposed by applicable Law, OSG and INSW (acting directly or through members of the
OSG Group or the INSW Group, respectively) shall provide to the other and their respective authorized agents and vendors all information
necessary for the Parties to perform their respective duties under this Agreement.

 

(b)          Transfer
of Personnel Records and Authorization. Subject to any limitation imposed by applicable Law and to the extent that it has not
done so before the Transfer Effective Time, OSG shall transfer to INSW any and all employment records (including any Form I-9,
Form W-2, or other IRS forms) with respect to INSW Group Employees and Former INSW Group Employees and other records reasonably
required by INSW to enable INSW properly to carry out its obligations under this Agreement. Such transfer of records generally
shall occur as soon as 

 

    	 	-19-	 

     

    

 

administratively practicable at or after the Transfer Effective Time. Each Party will permit the other Party
reasonable access to Employee records to the extent reasonably necessary for such accessing Party to carry out its obligations
hereunder.

  

(c)          Access
to Records. To the extent not inconsistent with this Agreement, the Separation and Distribution Agreement, or any applicable
privacy protection Laws or regulations, reasonable access to Employee-related records after the Effective Time will be provided
to members of the OSG Group and members of the INSW Group pursuant to the terms and conditions of Article VI of the Separation
and Distribution Agreement.

 

(d)          Maintenance
of Records. With respect to retaining, destroying, transferring, sharing, copying, and permitting access to all Employee-related
information, OSG and INSW shall comply with all applicable Laws, regulations, and internal policies, and shall indemnify and hold
harmless each other from and against any and all Liability, claims, actions, and damages that arise from a failure (by the indemnifying
Party or its Subsidiaries or their respective agents) to so comply with all applicable Laws, regulations, and internal policies
applicable to such information.

 

(e)          Cooperation.
Each Party shall use commercially reasonable efforts to cooperate and work together to unify, consolidate, and share (to the extent
permissible under applicable privacy/data protection or other applicable Laws) all relevant documents, resolutions, government
filings, data, payroll, employment, and benefit plan information on regular timetables and cooperate as needed with respect to
(i) any litigation with respect to any employee benefit plan, policy, or arrangement contemplated by this Agreement, (ii) efforts
to seek a determination letter, private letter ruling, or advisory opinion from the IRS or U.S. Department of Labor on behalf of
any employee benefit plan, policy, or arrangement contemplated by this Agreement, and (iii) any filings that are required
to be made or supplemented to the IRS, U.S. Pension Benefit Guaranty Corporation, U.S. Department of Labor, or any other Governmental
Authority; provided, however, that requests for cooperation must be reasonable and not interfere with daily business
operations.

 

(f)           Confidentiality.
Notwithstanding anything in this Agreement to the contrary, all confidential records and data relating to Employees to be shared
or transferred pursuant to this Agreement shall be subject to Section 6.9 of the Separation and Distribution Agreement and
the requirements of applicable Law.

 

Section 9.02.         Preservation
of Rights to Amend. The rights of each member of the OSG Group and each member of the INSW Group to amend, waive, or
terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement.

 

Section 9.03.         Fiduciary
Matters. OSG and INSW each acknowledges that actions required to be taken pursuant to this Agreement may be subject
to fiduciary duties or standards of conduct under ERISA or other applicable Law. Each Party shall be responsible for taking such
actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities and shall fully release and
indemnify the other Party for any Liabilities caused by the failure to satisfy any such responsibility.

 

Section 9.04.         Further
Assurances. Each Party hereto shall take, or cause to be taken, any and all reasonable actions, including the execution,
acknowledgment, filing, and delivery of any and all documents and instruments that any other Party hereto may reasonably request
in order to effect the intent and purpose of this Agreement and the transactions contemplated hereby.

 

Section 9.05.         Counterparts;
Entire Agreement; Corporate Power.

 

(a)          This
Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become
effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party.

 

(b)          This
Agreement, the Separation and Distribution Agreement, and the Ancillary Agreements and the Exhibits, Schedules, and appendices
hereto and thereto contain the entire agreement among the Parties with respect to the subject matter hereof, supersede all previous
agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter,
and there are no agreements or understandings among the Parties other than those set forth or referred to herein or therein. OSG
represents on 

 

    	 	-20-	 

     

    

 

behalf of itself and each of its Subsidiaries, and INSW represents on behalf of itself and each of its Subsidiaries,
as follows:

 

(i)           each
such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order
to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and

 

(ii)          this
Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance
with the terms hereof.

 

(c)          Each
Party acknowledges that it and the other Parties is executing this Agreement by facsimile, stamp, or mechanical signature, and
that delivery of an executed counterpart of a signature page to this Agreement (whether executed by manual, stamp, or mechanical
signature) by facsimile or by email in portable document format (PDF) shall be effective as delivery of such executed counterpart
of this Agreement. Each Party expressly adopts and confirms each such facsimile, stamp, or mechanical signature (regardless of
whether delivered in person, by mail, by courier, by facsimile, or by email in portable document format (PDF)) made in its respective
name as if it were a manual signature delivered in person, agrees that it will not assert that any such signature or delivery is
not adequate to bind such Party to the same extent as if it were signed manually and delivered in person and agrees that, at the
reasonable request of the other Parties at any time, it will as promptly as reasonably practicable cause this Agreement to be manually
executed (any such execution to be as of the date of the initial date thereof) and delivered in person, by mail, or by courier.

 

Section 9.06.         Governing
Law. This Agreement (and any claims or disputes arising out of or related hereto or to the transactions contemplated
hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct, or otherwise and whether
predicated on common law, statute, or otherwise) shall be governed by and construed and interpreted in accordance with the Laws
of the State of New York, irrespective of the choice of laws principles of the State of New York, including all matters of validity,
construction, effect, enforceability, performance, and remedies.

 

Section 9.07.         Assignability.
This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns;
provided, however, that none of the Parties may assign its rights or delegate its obligations under this Agreement
without the express prior written consent of the other Parties hereto. Notwithstanding the foregoing, no such consent shall be
required for the assignment of a Party’s rights and obligations under this Agreement and the Ancillary Agreements (except
as may be otherwise provided in any such Ancillary Agreement) in whole (i.e., the assignment of a Party’s rights
and obligations under this Agreement and all Ancillary Agreements all at the same time) in connection with a change of control
of a Party so long as the resulting, surviving, or transferee Person assumes all the obligations of the relevant Party thereto
by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to the other Parties. Nothing herein
is intended to, or shall be construed to, prohibit any Party or any member of its group from being party to or undertaking a change
of control.

 

Section 9.08.         Third-Party
Beneficiaries. Except for the indemnification rights under the Separation and Distribution Agreement of any OSG Indemnitee
or INSW Indemnitee in their respective capacities as such, (a) the provisions of this Agreement, the Separation and Distribution
Agreement, and each Ancillary Agreement are solely for the benefit of the Parties and any other parties thereto, and are not intended
to confer upon any Person except the Parties (and such other parties) any rights or remedies hereunder or thereunder; and (b) there
are no third-party beneficiaries of this Agreement, the Separation and Distribution Agreement, or any Ancillary Agreement, and
neither this Agreement, the Separation and Distribution Agreement, nor any Ancillary Agreement shall provide any third person
with any remedy, claim, Liability, reimbursement, claim of action, or other right in excess of those existing without reference
to this Agreement, the Separation and Distribution Agreement, or any Ancillary Agreement. Nothing in this Agreement is intended
to amend any employee benefit plan or affect the applicable plan sponsor’s right to amend or terminate any employee benefit
plan pursuant to the terms of such plan. The provisions of this Agreement are solely for the benefit of the Parties, and no current
or former Employee, officer, director, or independent contractor or any other individual associated therewith shall be regarded
for any purpose as a third-party beneficiary of this Agreement.

 

    	 	-21-	 

     

    

 

Section 9.09.         Notices.
All notices, requests, claims, demands, or other communications under this Agreement shall be in writing and shall be given or
made (and shall be deemed to have been duly given or made upon receipt) by delivery in person or by overnight courier service
to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given
in accordance with this Section 9.09):

 

If to OSG, to:

 

Overseas Shipholding Group, Inc.

302 Knights Run Avenue #1200

Tampa, Florida 33602

Attention: General Counsel

 

with a copy (which shall not constitute notice) to:

 

Cleary Gottlieb Steen & Hamilton

One Liberty Plaza

New York, New York 10006

Attention: Jeffrey Karpf

 

If to INSW, to:

 

International Seaways, Inc.

600 Third Avenue, 39th Floor

New York, New York 10016

Attention: General Counsel

 

with a copy (prior to the Effective Time) (which shall
not constitute notice) to:

 

Cleary Gottlieb Steen & Hamilton

One Liberty Plaza

New York, New York 10006

Attention: Jeffrey Karpf

 

Any Party may, by notice to the other Parties, change the address
to which such notices are to be given.

 

Section 9.10.         Severability.
If any provision of this Agreement or the application thereof to any Person or circumstance is determined by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons
or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full
force and effect and shall in no way be affected, impaired or invalidated thereby. Upon such determination, the Parties shall
negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the
Parties.

 

Section 9.11.         Force
Majeure. No Party shall be deemed in default of this Agreement or, unless otherwise expressly provided therein, any
Ancillary Agreement for any delay or failure to fulfill any obligation (other than a payment obligation) hereunder or thereunder
so long as and to the extent to which any delay or failure in the fulfillment of such obligation is prevented, frustrated, hindered,
or delayed as a consequence of circumstances of Force Majeure. In the event of any such excused delay, the time for performance
of such obligations (other than a payment obligation) shall be extended for a period equal to the time lost by reason of the delay.
A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event,
(a) provide written notice to the other Party of the nature and extent of any such Force Majeure condition, and (b) use
commercially reasonable efforts to remove any such causes and resume performance under this Agreement and the Ancillary Agreements,
as applicable, as soon as reasonably practicable.

 

Section 9.12.         No
Set-Off. Except as otherwise mutually agreed to in writing by the Parties, neither OSG nor INSW nor any member of either
such Party’s Group shall have any right of set-off or other similar rights

 

    	 	-22-	 

     

    

 

with respect to (a) any amounts received
pursuant to this Agreement or any Ancillary Agreement or (b) any other amounts claimed to be owed to the other Party or any
member of its Group arising out of this Agreement.

 

Section 9.13.         Headings.
The article, section, and paragraph headings contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.

 

Section 9.14.         Survival
of Covenants. Except as expressly set forth in this Agreement, the covenants, representations, and warranties contained
in this Agreement, and Liability for the breach of any obligations contained herein, shall survive the Separation and the Distribution
and shall remain in full force and effect.

 

Section 9.15.         Waivers
of Default. Waiver by a Party of any default by any other Party of any provision of this Agreement shall not be deemed
a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the other Party. No failure
or delay by any Party in exercising any right, power, or privilege under this Agreement shall operate as a waiver thereof, nor
shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right,
power, or privilege.

 

Section 9.16.         Dispute
Resolution. The dispute resolution procedures set forth in Article VII of the Separation and Distribution Agreement
shall apply to any dispute, controversy or claim arising out of or relating to this Agreement.

 

Section 9.17.         Specific
Performance. Subject to Article VII of the Separation and Distribution Agreement, in the event of any actual or
threatened default in, or breach of, any of the terms, conditions, and provisions of this Agreement, the Party that is, or is
to be, thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief in respect of its
rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and
remedies shall be cumulative. The Parties agree that the remedies at law for any breach or threatened breach, including monetary
damages, are inadequate compensation for any loss and that any defense in any action for specific performance that a remedy at
law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived by each
of the Parties.

 

Section 9.18.         Amendments.
No provisions of this Agreement shall be deemed waived, amended, supplemented, or modified by a Party, unless such waiver, amendment,
supplement, or modification is in writing and signed by the authorized representative of the Party against whom it is sought to
enforce such waiver, amendment, supplement, or modification.

 

Section 9.19.         Interpretation.
In this Agreement, (a) words in the singular shall be deemed to include the plural and vice versa and words of one gender
shall be deemed to include the other genders as the context requires; (b) the terms “hereof,” “herein,”
and “herewith,” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement
as a whole (including all of the Schedules, Exhibits, and Appendices hereto) and not to any particular provision of this Agreement;
(c) Article, Section, Schedule, Exhibit, and Appendix references are to the Articles, Sections, Schedules, Exhibits, and
Appendices to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement shall
be deemed to include the exhibits, schedules, and annexes to such agreement; (e) the word “including” and words
of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified;
(f) the word “or” shall not be exclusive; (g) unless otherwise specified in a particular case, the word
“days” refers to calendar days; (h) references to “business day” shall mean any day other than a
Saturday, a Sunday, or a day on which banking institutions are generally authorized or required by law to close in the U.S. or
New York, New York; (i) references herein to this Agreement or any other agreement contemplated herein shall be deemed to
refer to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented
thereafter, unless otherwise specified; and (j) unless expressly stated to the contrary in this Agreement, all references
to “the date hereof,” “the date of this Agreement,” “hereby,” and “hereupon” and
words of similar import shall all be references to November 30, 2016.

 

Section 9.20.         Mutual
Drafting. This Agreement shall be deemed to be the joint work product of the Parties and any rule of construction that
a document shall be interpreted or construed against a drafter of such document shall not be applicable.

 

    	 	-23-	 

     

    

 

Remainder of page intentionally left
blank

 

    	 	-24-	 

     

    

 

IN WITNESS WHEREOF, the Parties have caused
this Agreement to be executed by their duly authorized representatives.

 

	 	OVERSEAS SHIPHOLDING GROUP, INC.
	 	 	 
	 	By:	/s/ Ian T. Blackley
	 	Name:	Ian T. Blackley
	 	Title:	President and Chief Executive Officer

 

[Signature Page to the Employee Matters
Agreement]

 

     

     

    

 

	 	INTERNATIONAL SEAWAYS, INC.
	 	 	 
	 	By:	/s/ Lois K. Zabrocky
	 	Name:	Lois K. Zabrocky
	 	Title:	President

 

[Signature Page to the Employee Matters
Agreement]

 

     

     

    

 

Schedule 1.01

 

None.

 

[Schedules to the Employee Matters Agreement]

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