Document:

Exhibit 10.4

 

EXECUTION
VERSION

 

DIRECTOR
Designation agreement

 

This Director Designation Agreement (this
“Agreement”), dated March 27, 2019, is by and between First Reserve Fund XII, L.P., a Cayman Islands limited
partnership (“FRXII”), First Reserve XII-A Parallel Vehicle, L.P., a Cayman Islands limited partnership (together
with FRXII and its and their respective successors and permitted assigns, “Investor”), and Diamond S Shipping
Inc., a corporation organized under the laws of the Republic of the Marshall Islands (together with its successors and permitted
assigns, the “Company”) (Investor, together with the Company, the “Parties” and each, a “Party”).

 

RECITALS

 

1.          The
Company is a newly formed corporation with shares of common stock, par value $0.001 per share (“Common Stock”),
listed or to be listed on a U.S. stock exchange pursuant to a Transaction Agreement, dated November 27, 2018, among DSS Holdings
L.P., Capital Product Partners L.P. and the other parties named therein (as amended, the “Transaction Agreement”).

 

2.          At
Closing (as defined in the Transaction Agreement), Investor will hold approximately 30.09% of the issued and outstanding shares
of Common Stock.

 

3.          Investor
and the Company desire to enter into this Agreement to set forth their agreements regarding the designation of nominees on the
Board of Directors of the Company (the “Board”).

 

I.           Board
representation

 

1.01       Designation.
Until the annual meeting of the Company’s shareholders (the “Shareholders”) held in 2024 (the “2024
Annual Meeting”):

 

(a)          Subject
to the terms and conditions of this Agreement, Investor is entitled to designate up to three individuals (collectively, the “Nominees”
and each, a “Nominee”) for inclusion by the Company and the Board, acting through the Nominating Committee of
the Board (the “Nominating Committee”), in the slate of nominees recommended to the Shareholders for election
as directors at any annual or special meeting of the Shareholders at which directors of the Company are to be elected. Notwithstanding
the foregoing, if Former DSS Holders (as defined below) reduce their combined beneficial ownership (as defined in SEC Rule 13d-3)
and, as a result thereof:

 

(i)          their
combined beneficial ownership is reduced by 50% or more, but less than 75%, from that owned at Closing, Investor will, without
further action, only be entitled to designate up to two Nominees;

 

(ii)         their
combined beneficial ownership is reduced by 75% or more of that owned at Closing, but Investor still beneficially owns 5% or more
of the then outstanding shares of Common Stock, Investor will, without further action, only be entitled to designate up to one
Nominee; and

 

     

     

    

 

(iii)        Investor
owns less than 5% of the then outstanding shares of Common Stock, it will, without further action, no longer have any nomination
rights hereunder.

 

(b)          In
the event that the size of the Board is increased or decreased following the date hereof, then the number of individuals that Investor
will have the right to designate under this Section 1.01 will be proportionally adjusted (rounded up or down to the nearest
whole number) such that, following such change in the size of the Board, the number of Nominees as a percentage of the total number
of directors on the Board is equal to the number of individuals that Investor was entitled to designate as a percentage of the
total number of directors on the Board immediately prior to such change.

 

(c)          Board
vacancies arising through the death, resignation or removal of a then-serving Nominee may be filled by the Board only with another
Nominee and the director so chosen will hold office until the next election at an annual meeting of the Shareholders and until
his or her successor is duly elected and qualified, or until his or her earlier death, resignation or removal.

 

(d)          Notwithstanding
the provisions of this Section 1.01, Investor will not be entitled to designate a person as a nominee to the Board upon
a determination in good faith by (i) the Nominating Committee that such person would not be qualified under applicable law, rule
or regulation to serve as a director of the Company or (ii) the Board, the Nominating Committee or another duly authorized committee
of the Board, after consultation with outside counsel, that so doing would be inconsistent with its fiduciary duties under applicable
law or violate applicable law. Other than with respect to the considerations set forth in the preceding sentence, the Company will
not have the right to object to any Nominee.

 

(e)          The
Company will notify Investor in writing of the date on which proxy materials are expected to be mailed by the Company in connection
with an election of directors at an annual or special meeting of the Shareholders (and such notice will be delivered to Investor
at least 30 days prior to such expected mailing date). The Company will provide Investor with a reasonable opportunity to review
and provide comments on any portion of the proxy materials relating to the Nominees or the rights and obligations provided under
this Agreement and to discuss any such comments with the Company. The Company will use its reasonable best efforts to notify Investor
of any opposition to the Nominee in accordance with Section 1.01(d) or of any proposed selection of Nominees by the Board
under Section 1.01(f), in either case sufficiently in advance of the date on which such proxy materials are to be mailed
by the Company in connection with such election of directors so as to enable Investor to propose a replacement Nominee, if necessary,
in accordance with the terms of this Agreement, and Investor will have ten Business Days to designate another nominee.

 

    	 	-2-	 

     

    

 

(f)          Notwithstanding
the provisions of Section 1.01(a), the maximum aggregate number of nominees that the Company is obligated to include on
any slate of nominees recommended to the Shareholders is equal to the greater of (i) the number of Nominees that Investor has the
right to nominate under such Section or (ii) the number of Nominees that the other Former DSS Holder has the right to nominate
under its corresponding Director Designation Agreement. In the event that the aggregate number of nominees submitted by Former
DSS Holders is greater than such maximum aggregate number, then the maximum number of Nominees shall be selected from among the
aggregate Nominees submitted by the Former DSS Holders, as determined in good faith by the Board or a duly authorized committee
thereof; provided that at least one Nominee submitted by each Former DSS Holder that has a nomination right is included
in such selection.

 

(g)          Subject
to applicable legal requirements, the Company will procure that its Articles of Incorporation and Bylaws accommodate the rights
and obligations set forth herein.

 

(h)          The
Investor may waive its rights to nomination rights under this Section 1.01 or the Company’s Articles of Incorporation or
Bylaws at any time by delivering written notice thereof to the Company.

 

(i)          For
purposes hereof: “Former DSS Holders” means Investor, WL Ross & Co. LLC (“WLR”) and their
respective controlled Affiliates or their successors by operation of law.

 

1.02       Subsequent
Nomination of Persons Designated by Investor; Voting. (a) Subject to applicable law, the Company will use its commercially
reasonable efforts to cause the election of each Nominee, including by including each such Nominee in the proxy statement prepared
by management of the Company in connection with soliciting proxies for every meeting of Shareholders called for the election of
such Nominee, and at every postponement or adjournment thereof, and on every action of the Board or the Shareholders with respect
to the election of such Nominee.

 

(b)          Until
the 2024 Annual Meeting, Investor will vote its shares of Common Stock received at the Closing to confirm any nominee nominated
and recommended by the Board (whether or not it has nomination rights hereunder) as long as it owns any such shares.

 

1.03       Chairman.
The Company and the Investor agree that, until the 2022 annual meeting of Shareholders, the Chairman of the Board will be designated
by WLR; provided that if WLR, its controlled Affiliates and its successors by operation of law reduce their beneficial ownership
(as defined in SEC Rule 13d-3) in the Company by 50% or more from that owned as at the Closing, WLR will cease to have the right
to designate the Chairman, and the Board will select the Chairman.

 

1.04       Termination.
This Agreement may be terminated at any time with the affirmative written consent of both Former DSS Holders.

 

    	 	-3-	 

     

    

 

II.          MISCELLANEOUS

 

2.01       Expenses.
Except as otherwise provided herein, all expenses incurred in connection with this Agreement and the transactions contemplated
hereby will be paid by the Party incurring such expenses; provided, for the avoidance of doubt, that the Company will pay
the reasonable out-of-pocket expenses incurred by each Nominee in connection with his or her election and/or attending the meetings
of the Board and any committee thereof submitted in accordance with its expense reimbursement policies.

 

2.02       Notice.
All notices, requests, demands and other communications made under or by reason of the provisions of this Agreement must be in
writing and be given by hand delivery, email, facsimile or next Business Day courier to the affected Party at the addresses and
facsimile numbers set forth below. Such notices will be deemed given at the time personally delivered (if delivered by hand with
receipt acknowledged), upon issuance by the transmitting machine of confirmation that the number of pages constituting the notice
has been transmitted without error and confirmed telephonically (if sent by email or facsimile), and the first Business Day after
timely delivery to the courier (if sent by next-Business Day courier specifying next-Business Day delivery).

 

(iv)         If
to the Company, to:

 

Diamond S Shipping Inc.

33 Benedict Place

Greenwich, CT 06830

USA

Attention:   Craig Stevenson

Email:   cstevenson@diamondsshipping.com

 

With a copy (which will not constitute notice) to:

 

Jones Day

250 Vesey Street

New York, New York 10281

Attention:   Robert Profusek, Esq.

Email:   raprofusek@jonesday.com

 

(v)          If
to Investor:

 

First Reserve

290 Harbor Drive

Stamford, CT 06902

Attention:   General Counsel

Email:   aschwartz@firstreserve.com

 

With a copy (which will not constitute notice) to:

 

Gibson, Dunn & Crutcher LLP

1801 California St.

 

    	 	-4-	 

     

    

 

Suite 4200

Denver, CO 80202

Attention:   Beau Stark

Email:   bstark@gibsondunn.com

 

2.03       Interpretation.
This Agreement has been freely and fairly negotiated among the Parties. If an ambiguity or question of intent or interpretation
arises, this Agreement will be construed as if drafted jointly by the Parties and no presumption or burden of proof will arise
favoring or disfavoring any Party because of the authorship of any provision of this Agreement. When a reference is made in this
Agreement to an Article or Section, such reference will be to an Article or Section of this Agreement unless otherwise indicated.
The headings contained in this Agreement are for reference purposes only and will 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 will be deemed to be followed by the words “without limitation.” “$” refers to U.S. dollars.
Words used in the singular form in this Agreement will be deemed to include the plural, and vice versa, as the context may require.
If the date upon or by which any Party is required to perform any covenant or obligation hereunder falls on a day that is not a
Business Day, then such date of performance will be automatically extended to the next Business Day thereafter. The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Agreement will refer to this Agreement
as a whole and not to any particular provision of this Agreement. Unless the context otherwise requires, (i) ”or”
is disjunctive but not necessarily exclusive, (ii) the use in this Agreement of a pronoun in reference to a Party includes
the masculine, feminine or neuter, as the context may require, and (iii) unless otherwise defined herein, terms used herein
which are defined in GAAP have the meanings ascribed to them therein. Any agreement, instrument or Law defined or referred to herein
means such agreement, instrument or Law as from time to time amended, modified or supplemented (and, in the case of any Law, the
rules and regulations promulgated thereunder), including (in the case of agreements or instruments) by waiver or consent and (in
the case of Laws) by succession of comparable successor Laws. The term “Business Day” means any day that is
not a Saturday, a Sunday or other day that is a statutory holiday and on which banks are open in New York and London to the general
public for business.

 

    	 	-5-	 

     

    

 

2.04       Governing
Law. This Agreement, any claims, causes of actions or disputes (whether in contract or tort) based upon, arising out of
or relating to this Agreement or the negotiation, execution or performance of this Agreement will be governed by and construed
in accordance with the Laws applicable to contracts made and to be performed entirely in the State of New York, United States of
America, without regard to any applicable conflict of Laws principles. The Parties agree that any action seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this Agreement will only be brought in any United States
District Court located in New York County, New York so long as such court has subject matter jurisdiction over such action, or
alternatively in any New York State Court located in New York County, New York if the aforesaid United States District Courts do
not have subject matter jurisdiction, and that any cause of action arising out of this Agreement will be deemed to have arisen
from a transaction of business in the State of New York, and each of the Parties hereby irrevocably consents to the jurisdiction
of such court (and of the appropriate appellate courts therefrom) in any such action and irrevocably waives any objection that
it may now or hereafter have to the laying of the venue of any such action in any such court or that any such action which is brought
in such court has been brought in an inconvenient forum. Process in any such action may be served on any Party anywhere in the
world, whether within or without the jurisdiction of such court. Without limiting the foregoing, each Party agrees that service
of process on such Party as provided in Section 2.02 will be deemed effective service of process on such Party. In
the event of litigation relating to this Agreement, the non-prevailing Party will be liable and pay to the prevailing Party the
reasonable costs and expenses (including attorney’s fees) incurred by the prevailing Party in connection with such litigation,
including any appeal therefrom.

 

2.05       Specific
Performance. The Parties agree 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, that monetary damages may be inadequate
and that a Party may have no adequate remedy at Law. Notwithstanding Section 2.04, the Parties accordingly agree that
the Parties will be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement in action instituted in a United States District Court located in New York County, New
York, or alternatively in any New York State Court located in New York County, New York if the aforesaid United States District
Courts do not have subject matter jurisdiction, this being in addition to any other remedy to which such Party is entitled at law
or in equity. In the event that a Party seeks in equity to enforce the provisions of this Agreement, no Party will allege, and
each Party hereby waives the defense or counterclaim that, there is an adequate remedy at law.

 

2.06       WAIVER
OF JURY TRIAL. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY WAIVES, AND AGREES TO CAUSE ITS AFFILIATES TO WAIVE, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS
AGREEMENT OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT
OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT,
EQUITY OR OTHERWISE. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE
OF ACTION WILL BE DECIDED BY COURT TRIAL WITHOUT A JURY.

 

2.07       Certain
Adjustments. The provisions of this Agreement will apply to the full extent set forth herein with respect to any shares
of Common Stock received at Closing or any shares of voting stock which may be issued in respect of, in exchange for or in substitution
for such shares of Common Stock, by combination, recapitalization, reclassification, merger, consolidation or otherwise and the
term “Common Stock” will include all such other securities.

 

    	 	-6-	 

     

    

 

2.08       Successors
and Assigns; Assignment. Except as otherwise expressly provided herein, the provisions hereof will inure to the benefit
of, and be binding upon, the successors, assigns, heirs, executors and administrators of the Parties hereto Parties; provided,
however, that any of the rights and obligations of Investor hereunder may be transferred or assigned in whole or in part by it
to any Affiliate of Investor, provided, further, that such rights and obligations will terminate and cease to be
so transferred or assigned upon any Affiliate to which such rights and obligations are transferred or assigned no longer being
an Affiliate of Investor.

 

2.09       Amendment
and Waiver. No amendment, waiver or other modification of, or consent under, any provision of this Agreement will be effective
unless it is approved in writing by each Party. No waiver of any breach of any agreement or provision herein contained will be
deemed a waiver of any preceding or succeeding breach thereof or of any other agreement or provision herein contained. The failure
or delay of any Party to assert any of its rights or remedies under this Agreement will not constitute a waiver of such rights
nor will it preclude any other or further exercise of the same or of any other right or remedy.

 

2.10       No
Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties and their permitted assigns and nothing
herein expressed or implied will give or be construed to give any person, other than the Parties and such permitted assigns, any
legal or equitable rights hereunder.

 

2.11       Entire
Agreement. This Agreement (including the exhibits hereto) constitutes the entire agreement among the Parties with respect
to the subject matter hereof and supersede all prior agreements, understandings, representations and undertakings, both written
and oral, among the Parties with respect to the subject matter hereof and thereof.

 

2.12       Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy
in any jurisdiction, all other terms and provisions of this Agreement will nevertheless remain in full force and effect so long
as the economic or legal substance of the transactions and the intention of the Parties with respect to the transactions contemplated
hereby is not affected in any manner materially adverse to any of the Parties. Upon such determination that any term or other provision
is invalid, illegal or incapable of being enforced, the Parties will 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 in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest extent possible.

 

    	 	-7-	 

     

    

 

2.13       Further
Assurances. Each of the Parties hereto will, from time to time and without further consideration, execute such further
instruments and take such other actions as any other Party hereto will reasonably request in order to fulfill its obligations under
this Agreement to effectuate the purposes of this Agreement.

 

2.14       Counterparts.
This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which will constitute one
and the same agreement. This Agreement may be executed by any Party by means of a facsimile, email or PDF transmission of an originally
executed counterpart, the delivery of which facsimile, email or PDF transmission will have the same force and effect, except as
specified in any document executed and delivered pursuant to the immediately preceding sentence, as the delivery of the originally
executed counterpart.

 

[Signature Pages Follow]

 

    	 	-8-	 

     

    

 

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

 

	 	Diamond S Shipping Inc. 
	 	 	 
	 	By: 	/s/ Craig H. Stevenson Jr.
	 	 	Name: Craig H. Stevenson Jr.
	 	 	Title: Authorized Signatory

 

[Signature Page to the Dispatch Director
Designation Agreement]

 

     

     

    

 

	 	First Reserve Fund XII, L.P.
	 	By:
    First Reserve GP XII, L.P., its general partner
	 	 	By: First Reserve GP XII
    Limited, its general partner
	 	 	 
	 	By:	/s/ Edward Bialas
	 	 	Name: Edward Bialas
	 	 	Title: Managing Director
	 	 	 
	 	FR XII-A Parallel Vehicle, L.P.
	 	By:
    First Reserve GP XII, L.P., its general partner
	 	 	By: First Reserve GP XII, Limited, its general
    partner
	 	 	 
	 	By:	/s/ Edward Bialas
	 	 	Name: Edward Bialas
	 	 	Title: Managing Director

 

	 	Addresses for Notices:
	 	 
	 	First Reserve
	 	290 Harbor Drive
	 	Stamford, CT 06902
	 	Attention:   General Counsel
	 	Email:   aschwartz@firstreserve.com
	 	 
	 	With a copy (which will not constitute notice) to:
	 	 
	 	Gibson, Dunn & Crutcher LLP
	 	1801 California St.
	 	Suite 4200
	 	Denver, CO 80202
	 	Attention:   Beau Stark
	 	Email: bstark@gibsondunn.com

 

[Signature Page to the Dispatch Director
Designation Agreement]Exhibit 10.5

 

MANAGEMENT
AND SERVICES AGREEMENT

 

THIS AGREEMENT (“this
Agreement”) dated as of the 27th day of March 2019, 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.

 

    	 	1	 

     

    

 

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.

 

    	 	2	 

     

    

 

“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

 

    	 	3	 

     

    

 

(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;

 

    	 	4	 

     

    

 

“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. 

 

    	 	5	 

     

    

 

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. 

 

    	 	6	 

     

    

 

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.

 

    	 	7	 

     

    

  

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.

 

    	 	8	 

     

    

 

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.

 

    	 	9	 

     

    

 

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. 

 

    	 	10	 

     

    

 

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:	/s/ Sanjay Sukhrani
	 	 	Name: Sanjay Sukhrani
	 	 	Title: Chief Operating Officer

 

	 	Capital Ship Management Corp.,

 

	 	By:	/s/ Prokopios Iliou
	 	 	Name: Prokopios Iliou
	 	 	Title: Director

 

    	 	11	 

     

    

 

SCHEDULE 1

THE INITIAL VESSELS

 

	Vessel Name	IMO
    Number	Flag
	ACTIVE	9700342	Liberia
	AGISILAOS	9315745	Marshall Islands
	AIAS	9337004	Malta
	AIOLOS	9315769	Marshall Islands
	AKERAIOS	9328297	Liberia
	AKTORAS	9312925	Marshall Islands
	ALEXANDROS II	9384021	Marshall Islands
	ALKIVIADIS	9327437	Marshall Islands
	AMADEUS	9700469	Malta
	AMOR	9700471	Liberia
	AMOUREUX	9337016	Liberia
	ANEMOS I	9327463	Liberia
	ANIKITOS	9710490	Liberia
	APOSTOLOS	9327451	Liberia
	ARIONAS	9315757	Marshall Islands
	ARIS II	9384019	Marshall Islands
	ARISTAIOS	9779939	Marshall Islands
	ARISTOTELIS II	9384033	Marshall Islands
	ASSOS	9327449	Liberia
	ATLANTAS II	9312913	Marshall Islands
	ATROTOS	9328285	Liberia
	AVAX	9315939	Liberia
	AXIOS	9315941	Liberia
	AYRTON II	9410014	Liberia
	MILTIADIS M II	9311610	Liberia

 

    	 	12	 

     

    

 

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.

 

    	 	13	 

     

    

 

EXHIBIT A

 

fORM
OF COMMERCIAL MANAGEMENT AGREEMENT

 

    	 	14	 

     

    

 

EXHIBIT
B

 

fORM
OF tECHNICAL mANAGEMENT AGREEMENT

 

    	 	15

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