Exhibit 10.1


 


FORM
OF MANAGEMENT AND SERVICES AGREEMENT


 


THIS AGREEMENT (“this
Agreement”) dated as of the [●] day of [●] 2018, is entered into by and between Diamond S Shipping, Inc., a corporation
duly organized and existing under the laws of the Republic of the Marshall Islands with its registered office at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, (“DSS”) and Capital Ship Management Corp.,
a company duly organized and existing under the laws of Panama with its registered office at Hong Kong Bank building, 6th
floor, Samuel Lewis Avenue, Panama, and a business address at 3, Iassonos street, Piraeus, Greece (“CSM” and,
collectively with DSS, the “Parties”).


 


WHEREAS:


 


A.   DSS
is a company formed, in part, as a result of the combination of two fleets of tanker vessels, one of which was previously managed
by CSM;


 


		B.	DSS has requested that CSM continue to provide certain commercial and technical management and
ship management consultancy services for the operation of those vessels previously managed by CSM, a list of which is set out in
Schedule 1 to this Agreement (hereinafter referred to as the “Initial Vessels”); and



 


C. 
CSM has agreed to provide such commercial and technical management and ship management consultancy services to DSS on the terms
set out herein.


 


NOW THEREFORE, the Parties
agree that, in consideration of the fees set forth in Schedule 2 to this Agreement (the “Fees and Costs”) and
subject to the other terms and conditions herein provided, CSM shall provide the Services (as hereinafter defined) for the term
of this Agreement as hereinafter set forth.


 




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TERMS AND CONDITIONS


 


Section
1. Definitions. In this Agreement, the term:


 


“Additional
Vessels” means vessels not in the ownership of DSS on the date of this Agreement that DSS (or any of its Affiliates or
subsidiaries) may subsequently purchase (as assets or by novation of any shipbuilding contract or by acquisition of shares in a
vessel owning entity or holding of same) and which are to be managed by CSM pursuant to the terms of this Agreement. For the purposes
of this Agreement, any such Additional Vessels to be managed by CSM under the terms of this Agreement shall also be referred to
herein as Vessels.


 


“Affiliates”
means, with respect to any Person as at any particular date, any other Persons that directly or indirectly, through one or more
intermediaries, are controlled by, control or are under common control with the person in question, and “Affiliate”
means any one of them.


 


“Cause Event”
means with respect to a Party means the occurrence or existence of any of the following with respect to such Person:


 


(a)       the
determination by an arbitrator pursuant to Section 17 that an act or omission by such Party constituted gross negligence, willful
misconduct, or fraud in the performance of such Party’s duties or obligations with respect to this Agreement;


 


(b)       the
conviction of, or plea of guilty or nolo contendere by, such Party in respect of any felony which will have a Material Adverse
Effect;


 


(c)       such
Party makes a general assignment for the benefit of its creditors, files a petition in bankruptcy or for liquidation, is adjudged
insolvent or bankrupt, commences any proceeding for a reorganization or arrangement of debts, dissolution or liquidation under
any law or statute or of any jurisdiction applicable thereto or if any such proceeding shall be commenced;


 


(d)       a
willful breach by such Party of any material provision of this Agreement or any other agreement between such Party and the other
Party hereto and its Affiliates, or such Party willfully causing a breach hereof that, if curable, has not been cured by such Party
within 15 days of written notice of such breach from the other Party specifying the failure and requesting cure, provided the matter
has been referred to arbitration; or


 


(e)       a
Party knowingly and willfully commits a Sanctions Violation.


 




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 “Change
of Control” means with respect to any entity, an event in which securities of any class entitling the holders thereof
to elect a majority of the members of the board of directors or other similar governing body of the entity are acquired, directly
or indirectly, by a “person” or “group” (within the meaning of Sections 13(d) or 14(d)(2)
of the Exchange Act), who did not immediately before such acquisition own securities of the entity entitling such Party or group
to elect such majority (and for the purpose of this definition, any such securities held by another person who is related to such
person shall be deemed to be owned by such person) unless such change is among existing management and executive officers of the
relevant Party and/or any person under common ownership or control of such Party and any person under common ownership or control
including, in respect of CSM, Capital Maritime & Trading Corp. ("CMTC") and/or CMTC;


 


“Commercial
Management Agreement” means the Commercial Management Services Agreement to be entered into between DSS and CSM, the
form of which is annexed hereto as Exhibit A to this Agreement;


 


“Commercial
Management Services” means the management services as defined and set forth in the Commercial Management Agreement;


 


“Management Consultancy
Services” means the ship management consultancy, advisory and administrative services to be provided to DSS by CMS in
respect of the operation of the managed fleet and management of the business of the Vessels (in addition to the Commercial Management
Services and Technical Management Services) ancillary and complimentary as may determined from time to time;


 


“Consumer Price
Index” means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the United
States Department of Labor, New York, N.Y. –Northeastern N.J. Area, All Items (1982-1984 = 100), or any successor index thereto,
appropriately adjusted. In the event that the Consumer Price Index is converted to a different standard reference base or otherwise
revised, the determination of amounts provided for in this Agreement shall be made with the use of such conversion factor, formula
or table for converting the Consumer Price Index as may be published by the Bureau of Labor Statistics or, if said Bureau shall
not publish the same, then with the use of such conversion factor, formula or table as may be published by Prentice-Hall, Inc.,
or any other nationally recognized publisher of similar statistical information. If the Consumer Price Index ceases to be published,
and there is no successor thereto, such other index as CSM may reasonably select shall be substituted for the Consumer Price Index;


 


“DSS Group”
means DSS and the subsidiaries of DSS;


 


“Initial Vessels”
has the meaning ascribed thereto in Recital B hereof;


 


“Material
Adverse Effect” means a material adverse effect on:


 


		(a)	the ability of any Party to perform its obligations under this Agreement; or



 




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		(b)	the validity or enforceability of the rights or remedies of any Party under this Agreement.



 


“Other Vessels”
means vessels other than the Initial Vessels and the Additional Vessels owned by DSS or its Affiliates or subsidiaries;


 


“Parties”
has the meaning ascribed thereto in the preamble to this Agreement;


 


“Person”
means any natural person, corporation, limited liability company, partnership, limited partnership, limited liability partnership,
joint venture, trust, business trust, unincorporated association, estate or other legal entity;


 


“Sanctions Violation”
means:


 


(i)       
(A) any unlawful contribution, gift, or provision of any entertainment to any foreign or U.S. government official or employee;
(B) any payment or other action that violates or would be in violation of any provision of any federal, state or local or other
applicable domestic or foreign law, rule or regulation regarding illegal payments or corrupt practices, or any provision of the
UK Bribery Act 2010 or U.S. Foreign Corrupt Practices Act of 1977 (the “FCPA”) (in the case of the FCPA, if any of
such persons had been or were subject to the FCPA, even if they are not currently so subject); or (C) any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment;


 


(ii)       failure
to comply with the financial recordkeeping and reporting requirements of the U.S. Currency and Foreign Transactions Reporting Act
of 1970, as amended, and with the money laundering statutes of all other applicable jurisdictions, the rules and regulations thereunder
and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency;


 


(iii)       doing
business with or in any country subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S.
Department of the Treasury (“OFAC”); or (B) appears on OFAC’s Specially Designated Nationals and Blocked Persons
List; and


 


(iv)       providing
funds to or taking investments or related in any way to, (A) the government of any country designated by the U.S. Secretary of
State as a country supporting international terrorism, (B) property that is blocked under any laws, orders or regulations administered
by OFAC (“OFAC Regulations”), or that would be blocked under OFAC Regulations if it were in the custody of a U.S. national;
(C) Persons to whom U.S. nationals cannot lawfully export services, or with whom U.S. nationals cannot lawfully engage in transactions,
under OFAC Regulations or (D) the governments of any country that has been designated as a “non-cooperative country or territory”
by the Financial Action Task Force on Money Laundering or a country or financial institution designated as a “primary money
laundering concern” by the U.S. Secretary of the Treasury;


 




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“Services”
means the Technical Management Services, the Commercial Management Services and the Management Consultancy Services;


 


“Technical Management
Agreement(s)” means each Technical Management Services Agreement to be entered into between a Vessel Owner and CSM, the
form of which is annexed hereto as Exhibit B to this Agreement;


 


“Technical Management
Services” the management services as defined and set forth in the Technical Management Agreement(s);


 


“Vessel Owner(s)”
means each direct or indirect subsidiary of DSS that owns a Vessel;


 


  “Vessels” means
the Initial Vessels and any Additional Vessels.


 


Section
2. General. CSM shall provide the Services, as provided for herein and in the Management Agreements, as DSS, may from time
to time direct, through such designated persons as DSS may reasonably agree. CSM shall perform the Services to be provided hereunder
in accordance with sound ship management practice and with the care, diligence and skill that a prudent manager of vessels such
as the Vessels would possess and exercise and to promote and protect the interest of Vessel Owners in all matters relating to the
provision of the Services hereunder.


 


Section
3. Covenants. During the term of this Agreement CSM shall:


  


		(i)	diligently provide the Services and be responsible to DSS or
the Vessel Owners, as the case may be, for the due and proper performance of same;



 


		(ii)	retain at all times a qualified staff so as to maintain a level
of expertise sufficient to provide the Services; and



 


		(iii)	keep full and proper books, records and accounts showing clearly
all transactions relating to its provision of Services in accordance with established general commercial practices and in accordance
with United States generally accepted accounting principles.



 


Section
4. Non-exclusivity. CSM and its shareholders, beneficial owners, employees and any of its consultants or subcontractors
may provide services of a nature similar to the Services to any other person. There is no obligation for CSM to provide the Services
to DSS on an exclusive basis; provided, however, the CSM agrees that in providing the Services hereunder it will not discriminate
against the Vessels. 


 




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Section
5. Confidential Information. CSM shall be obligated to keep confidential, both during and up to 24 months after the term
of this Agreement, all information it has acquired or developed in the course of providing Services under this Agreement except
as required by law; provided, however, that nothing herein shall prevent CSM from disclosing the existence or terms of this Agreement
to banks that are providing finance related to vessels under management by CSM (if required to do so). DSS shall be entitled to
any equitable remedy available at law or equity, including specific performance, against a breach by CSM of this obligation. CSM
shall not resist such application for relief on the basis that DSS has an adequate remedy at law, and CSM shall waive any requirement
for the securing or posting of any bond in connection with such remedy.


 


Section
6. Service Fee. In consideration for CSM providing the Services, DSS shall pay CSM the Fees and reimburse the Costs as set
out in Schedule 2 to this Agreement or as otherwise specified in the Management Agreements.


 


Section
7. General Relationship between the Parties. The relationship between the parties is that of independent contractor. The
parties to this Agreement do not intend, and nothing herein shall be interpreted so as, to create a partnership, joint venture,
employee or agency relationship between CSM and DSS. 


 


Section
8. Management of Additional Vessels and Replacements. If DSS acquires or orders any additional vessels during the term of
this Agreement, CSM will have a right of first refusal, exercisable up to four (4) times, to provide the Technical Management Services,
any such vessels for which the offer has been exercised shall be deemed Additional Vessels up to a total number of 29 Vessels under
the terms of this Agreement. DSS shall promptly notify CSM upon entering into a definitive vessel acquisition agreement of any
form and type or shipbuilding contract and CSM shall advise DSS within seven (7) New York business days as to whether CSM wishes
to provide such Technical Management Services. If CSM agrees to provide such services for such vessel, DSS shall cause the relevant
Vessel Owner to enter into a Technical Management Services Agreement with CSM for the then remaining term of this Agreement.


 


If
any of the Vessel(s) is sold or otherwise disposed of during the term of this Agreement and as a result CSM provides Technical
Management Services at any time to fewer than 25 Vessels, DSS shall work in good faith to replace such Vessel(s) with an Other
Vessel(s) or an Additional Vessel(s) within six (6) months. Notwithstanding anything to the contrary in the preceding sentence,
unless this Agreement shall have been earlier terminated in accordance with its terms or CSM shall be in material breach of a Technical
Management Agreement, CSM shall be entitled to provide Technical Management Services for no fewer than 20 Vessels and DSS shall
take all necessary action in a prompt manner to ensure that CSM manages no fewer than 20 Vessels. 


 




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In
the event a Vessel is sold or otherwise disposed of and not replaced within six (6) months, CSM shall receive a termination fee
equal to the number of days remaining in the Term multiplied by $400.


 


If
any of the Vessels is sold or otherwise disposed of during the term of this Agreement and as a result CSM provides Commercial Management
Services at any time to fewer than 25 Vessels, DSS shall replace such Vessel(s) with an Other Vessel(s) or an Additional Vessel(s)
within three (3) months, in order for CSM to provide Commercial Management Services for no fewer than 25 Vessels. 


 


Section
9. Term and Termination. The term of this Agreement shall commence on the date hereof and will continue until the fifth
(5th) anniversary hereof, unless terminated by either Party on not less than one hundred and twenty (120) days’
notice if:


 


(a)
in the event of a Change of Control of either CSM or DSS at the election of the other Party; or


 


(b)
there is a Cause Event in respect of either CSM or DSS at the election of the other Party; or


 


(c)
a receiver is appointed for all or substantially all of the property of the other Party; or


 


(d)
an order is made to wind-up the other Party; or


 


(e)
a final judgment, order or decree which has a Material Adverse Effect shall have been obtained or entered against that Party and
such judgment, order or decree shall not have been vacated, discharged or stayed. 


   


The termination of this
Agreement shall be without prejudice to all rights accrued due between the Parties prior to the date of termination.


 


Section
10. Fees upon Early Termination with respect to a Vessel. Upon early termination of this Agreement other than for Cause
Event or if CSM elects to terminate the Agreement upon a change of Control of DSS or other material breach of this Agreement by
CSM, the Fee shall be adjusted with respect to a Vessel as at the effective date of termination of this Agreement, based on the
Fees set forth in Schedule 2 and all reimbursements due to CSM shall be immediately payable. Any overpayment shall forthwith be
refunded to DSS and any underpayment shall forthwith be paid to CSM.


 


Section
11. Surrender of Books and Records. Upon termination of this Agreement, CSM shall surrender to DSS upon request any and
all books, records, documents and other property in the possession or control of CSM relating to this Agreement and to the business,
finance, technology, trademarks or affairs of DSS and any member of the DSS Group but may retain any copies of same.


  




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Section
12. Entire Agreement. This Agreement, the Technical Management Agreements and the Commercial Management Agreement constitute
the entire agreement and understanding between the Parties with respect to the subject matter of this Agreement and (in relation
to such subject matter) supersedes and replaces all prior understandings and agreements, written or oral, between the parties. Should
there be any inconsistencies or contradictions between terms of this Agreement and any of the Technical Management Agreements and/or
the Commercial Management Agreement, the provisions of this Agreement shall prevail.


 


Section
13. Severability. If any provision herein is held to be void or unenforceable, the validity and enforceability of the remaining
provisions herein shall remain unaffected and enforceable.


 


Section
14. Currency. Unless stated otherwise, all currency references herein are to United States Dollars.


 


Section
15. Law and Arbitration. This Agreement shall be governed by the laws of England. Any dispute under this Agreement shall
be referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment
then in force. The arbitration shall be conducted in accordance with the London Maritime Arbitrators’ (LMAA) Terms current
at the time when the arbitration is commenced.


 


Save
as after mentioned, the reference shall be to three arbitrators, one to be appointed by each party and the third by the two arbitrators
so appointed. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment
to the other party requiring the other party to appoint its arbitrator within 14 calendar days of that notice and stating that
it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has
done so within the 14 calendar days specified. If the other party does not appoint its own arbitrator and give notice that it has
done so within the 14 calendar days specified, the party referring the dispute to arbitration may, without the requirement of any
further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly.
The award of a sole arbitrator shall be as binding as if he had been appointed by agreement.


 


In
cases where neither the claim nor any counterclaim exceeds the sum of US$50,000 (or such other sum as the parties may agree) the
arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings
are commenced.


 




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Section
16. Notice. Notice under this Agreement shall be given (via hand delivery or email or facsimile) as follows:


 


If to DSS:


 


Diamond S Shipping, Inc.


c/o Diamond S Management LLC


33 Benedict Place, 2nd floor


Greenwich, CT 06830, USA


Attn: Sanjay Sukhrani


Fax: +1 203 413 2010


Email: management@diamondshipping.com


 


 


If to CSM:


 


3 Iassonos Street


Piraeus, 18537, Greece


Attn: Operations and Commercial dpt


Fax: +30 210 428 4285


Email: dss@capitalship.gr


with cc to: g.ventouris@capitalmaritime.com


 


Section
17. Assignment. Neither CSM nor DSS shall assign this Agreement without the consent of the other Party provided, however,
CSM shall be entitled to sub-contract performance of its obligations under this Agreement, the Commercial Management Agreement
and any of the Technical Management Agreements by its parent, subsidiary or Affiliates or (in the case of Commercial Management
Services) third parties (collectively the "Sub-Managers") in accordance with the following provisions of this
Section 17:


 


		(i)	any such performance of all or any of CSM's obligations by the Sub-Managers shall be and constitute
performance by the CSM of their obligations hereunder;



 


		(ii)	any performance of CSM's obligations by the Sub-Managers will not result in increased costs to
DSS or the Owners and shall be without prejudice to the rights of DSS hereunder for any failure by the CSM in performance of CSM's
duties and obligations hereunder and notwithstanding performance by the Sub-Managers, CSM shall remain solely responsible to DSS
for performance of their obligations hereunder.



 


Section
18. Waiver. The failure of either Party to enforce any term of this Agreement shall not act as a waiver. Any waiver must
be specifically stated as such in writing.


 




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Section
19. Affiliates. This Agreement shall be binding upon and inure to the benefit of DSS and/or CSM and their respective successors
and assigns.


 


Section
20. Counterparts. This Agreement may be executed in one or more signed counterparts, facsimile or otherwise, which shall
together form one instrument. 


 




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IN WITNESS WHEREOF the Parties have executed
this Agreement by their duly authorized signatories with effect on the date first above written.


 


 


	 	 	Diamond S Shipping, Inc.
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	Capital Ship Management Corp.,
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:


 




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SCHEDULE 1


 


THE INITIAL VESSELS


 




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SCHEDULE 2


 


FEES AND COSTS


 


(1) In consideration for the provision
of the Services by CSM to DSS or the Vessel Owners (in respect of the Technical Management Services) DSS shall:


 


		(i)	pay CSM a technical management fee equal to United States Dollars eight hundred fifty (US$850)
per Vessel per day for Technical Management Services provided to DSS or the relevant Vessel Owner. Such US$850 amount shall be
subject to increase on each anniversary of the date hereof based on the total percentage increase, if any, in the Consumer Price
Index over the immediately preceding twelve months of the term of this Agreement and each Technical Management Agreement will so
provide.



 


 


		(ii)	reimburse CSM for all of the reasonable and documented direct and indirect costs, liabilities legal
expenses and other expenses incurred by CSM and any Sub-Manager in providing the Technical Management Services, not covered by
the fee set out in (i) above as more fully set out in the Technical Management Agreements.



 


		(iii)	pay CSM (and/or any Sub-Manager or Affiliate as the case may be appointed and nominated by CSM)
a commercial management fee of 1.25% of all gross charter revenues generated by each Vessel.



 


		(iv)	DSS shall pay to CSM (and/or any Sub-Manager(s) or Affiliate(s) as the case may be appointed and
nominated by CSM) as commercial management consultancy fee a fixed amount of United States Dollars two million (US$ 2,000,000)
per annum payable monthly at the end of every month.



 




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EXHIBIT A


 


fORM
OF COMMERCIAL MANAGEMENT AGREEMENT


 




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EXHIBIT
B


 


fORM
OF tECHNICAL mANAGEMENT AGREEMENT


 




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