I don't know about you, but that sure does not look Kriegsmarine to me, and with an SS Deathshead no less.

http://www.ebay.com/itm/Rare-antiqu...9741276?pt=Pocket_Watches&hash=item2ec7275cdcPurchases made through these links may earn this site a commission from the eBay Partner Network

 

Apart from the fact that the watch would have been a vintage piece at the time U 142 operated, it's hard to imagine what the award could have been for, since the U 142 was a training boat for most of its career. It had exactly three wartime patrols for 42 days at sea during which it sank nothing at all. Perhaps punctuality? Cleanliness?

http://uboat.net/boats/u142.htm