Exhibit 10.3


 





 



 


Form of Notice of Grant of Option


and


Terms and Conditions of Option


 





 



 


	Grantee:	[Name]	Option Number:	[_________]
	 	[Address]    	Plan:	2013
	 	[Address]    	ID:	[_________]


 





 



 


Effective [_________] (the “Award Date”), you (the
“Grantee”) have been granted a nonqualified option (the “Option”) to buy [_________] Ordinary Shares1
of Norwegian Cruise Line Holdings Ltd. (the “Company”) at a price of $[_________] per share1 (the
“Exercise Price”).


 


The aggregate
Exercise Price of the shares subject to the Option is $ [_________].1


 


The Option will expire on [_________] (the “Expiration
Date”).1,2


 


[Vesting Schedule:


 


Time-Based Options: [Fifty percent (50%)] of the total
number of Ordinary Shares subject to the Option (the “Time-Based Options”) will become vested as follows.2
 


 


	Number of Ordinary Shares

        Subject to the Option
	 	Time-Based Vesting Schedule
	[_________]	 	This number of Time-Based Options will vest on [Insert Vesting Date].
	[_________]	 	This number of Time-Based Options will vest on [Insert Vesting Date]. 


 


Performance-Based Options: [Fifty percent (50%)] of the
total number of Ordinary Shares subject to the Option (the “Performance-Based Options”) will become vested upon the
achievement of the performance hurdles described below.2  The Administrator or Board of Directors of the Company (the
“Board”) shall determine whether each of the applicable performance hurdles has been achieved, and the vesting of any
installment of the Performance-Based Options is subject to the Administrator’s or Board’s determination.]


 


[Insert Performance Vesting Terms]


 


________________________________________


 





 



1 Subject to adjustment under Section 7.1 of the
Plan.


2
Subject to early termination under Section 5 of the Terms and Section 7.2
of the Plan.



 




    	 	 	 



     


    

 


________________________________________________


 


By your signature and the Company’s signature below, you
and the Company agree that the Option is granted under and governed by the terms and conditions of the Company’s 2013 Performance
Incentive Plan (the “Plan”) and the Terms and Conditions of Nonqualified Option (the “Terms”), which are
attached and incorporated herein by this reference. This Notice of Grant of Option, together with the Terms, will be referred to
as your Option Agreement. The Option has been granted to you in addition to, and not in lieu of, any other form of compensation
otherwise payable or to be paid to you. Capitalized terms are defined in the Plan if not defined herein or in the Terms. You acknowledge
receipt of a copy of the Terms, the Plan and the Prospectus for the Plan.


 





 





 



 


	 	 	 
	Norwegian Cruise Line Holdings Ltd.	 	Date
	 	 	 
	 	 	 
	[Name]	 	Date


 




    	 	 	 



     


    

 


NORWEGIAN CRUISE LINE HOLDINGS LTD.


2013 PERFORMANCE INCENTIVE PLAN


TERMS AND CONDITIONS OF NONQUALIFIED
OPTION 


 


		1.	General.



 


These Terms and Conditions of Nonqualified
Option (these “Terms”) apply to a particular option (the “Option”) if incorporated by reference
in the Notice of Grant of Option (the “Grant Notice”) corresponding to that particular grant. The recipient
of the Option identified in the Grant Notice is referred to as the “Grantee.” The per share exercise price of
the Option as set forth in the Grant Notice is referred to as the “Exercise Price.” The effective date of grant
of the Option as set forth in the Grant Notice is referred to as the “Award Date.” The exercise price and the
number of shares covered by the Option are subject to adjustment under Section 7.1 of the Plan.


 


The Option was granted under and subject
to the Norwegian Cruise Line Holdings Ltd. 2013 Performance Incentive Plan (the “Plan”). Capitalized terms are
defined in the Plan if not defined herein. The Option has been granted to the Grantee in addition to, and not in lieu of, any other
form of compensation otherwise payable or to be paid to the Grantee. The Grant Notice and these Terms are collectively referred
to as the “Option Agreement” applicable to the Option.


 


		2.	Vesting; Limits on Exercise; Incentive Stock Option Status.



 


The Option shall vest and become exercisable
in percentage installments of the aggregate number of shares subject to the Option as set forth on the Grant Notice. The Option
may be exercised only to the extent the Option is vested and exercisable.


 


		·	Cumulative Exercisability. To the extent that the Option is vested and exercisable, the Grantee has the right to exercise
the Option (to the extent not previously exercised), and such right shall continue, until the expiration or earlier termination
of the Option.



 


		·	No Fractional Shares. Fractional share interests shall be disregarded, but may be cumulated.



 


		·	Minimum Exercise. No fewer than 100 Ordinary Shares (subject to adjustment under Section 7.1 of the Plan) may be purchased
at any one time, unless the number purchased is the total number at the time exercisable under the Option.



 


		·	Nonqualified Option. The Option is a nonqualified option and is not, and shall not be, an incentive stock option within
the meaning of Section 422 of the Code.



 


		3.	Continuance of Employment/Service Required; No Employment/Service Commitment.



 


The vesting schedule applicable to the Option
requires continued employment or service through each applicable vesting date as a condition to the vesting of the applicable installment
of the Option and the rights and benefits under this Option Agreement. Employment or service for only a portion of the vesting
period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting or avoid or mitigate a termination
of rights and benefits upon or following a termination of employment or services as provided in Section 5 below or under the Plan.


 


Nothing contained in this Option Agreement
or the Plan constitutes a continued employment or service commitment by the Company or any of its Subsidiaries, affects the Grantee’s
status, if he or she is an employee, as an employee at will who is subject to termination without cause, confers upon the Grantee
any


 




    	 	 	 



     


    

 


right to remain employed by or in service to the Company or
any Subsidiary, interferes in any way with the right of the Company or any Subsidiary at any time to terminate such employment
or service, or affects the right of the Company or any Subsidiary to increase or decrease the Grantee’s other compensation.
Nothing in this Option Agreement, however, is intended to adversely affect any independent contractual right of the Grantee without
his/her consent thereto.


 


		4.	Method of Exercise of Option.



 


The Option shall be exercisable by the delivery
to the General Counsel of the Company (or such other person as the Administrator may require pursuant to such administrative exercise
procedures as the Administrator may implement from time to time) of:


 


		·	a written notice stating the number of Ordinary Shares to be purchased pursuant to the Option or by the completion of such
other administrative exercise procedures as the Administrator may require from time to time;



 


		·	payment in full for the Exercise Price of the shares to be purchased in cash, check or by electronic funds transfer to the
Company;



 


		·	any written statements or agreements required pursuant to Section 8.1 of the Plan; and



 


		·	satisfaction of the tax withholding provisions of Section 8.5 of the Plan.



 


The Administrator also may, but is not required
to, authorize a non-cash payment alternative by one or more of the following methods (subject in each case to compliance with all
applicable laws, rules, regulations and listing requirements and further subject to such rules as the Administrator may adopt as
to any such payment method):


 


		·	notice and third party payment in such manner as may be authorized by the Administrator;



 


		·	in Ordinary Shares already owned by the Grantee, valued at their fair market value (as determined under the Plan) on the exercise
date;



 


		·	a reduction in the number of Ordinary Shares otherwise deliverable to the Grantee (valued at their fair market value on the
exercise date, as determined under the Plan) pursuant to the exercise of the Option; or



 


		·	a “cashless exercise” with a third party who provides simultaneous financing for the purposes of (or who otherwise
facilitates) the exercise of the Option.



 


		5.	Early Termination of Option.



 


5.1        Expiration
Date. Subject to earlier termination as provided below in this Section 5, the Option will
terminate on the “Expiration Date” set forth in the Grant Notice (the “Expiration Date”).


 


5.2        Possible
Termination of Option upon Certain Corporate Events. The Option is subject to termination
in connection with certain corporate events as provided in Section 7.2 of the Plan.


 


5.3        Termination
of Option upon a Termination of Grantee’s Employment or Services. Subject to earlier
termination on the Expiration Date of the Option or pursuant to Section 5.2 above, if the Grantee ceases to be employed by or ceases
to provide services to the Company or a Subsidiary, the following 


 




    	 	 	 



     


    

 


rules shall apply (the last day that the Grantee
is employed by or provides services to the Company or a Subsidiary is referred to as the Grantee’s “Severance Date”):


 


(a) the Grantee (or the Grantee’s estate as
the case may be) will have until the date that is 12 months after his or her Severance Date to exercise the Option (or portion
thereof) to the extent that it was vested as of the Severance Date,


 


(b) the Option, to the extent not vested as of the
Severance Date, shall terminate as of the Severance Date, and


 


(c) the Option, to the extent exercisable for the
12-month period following the Severance Date and not exercised during such period, shall terminate at the close of business on
the last day of the 12-month period.


 


In all events the Option is subject to earlier
termination on the Expiration Date of the Option or as contemplated by Section 5.2. The Administrator shall be the sole judge of
whether the Grantee continues to render employment or services for purposes of this Option Agreement.


 


		6.	Non-Transferability.



 


The Option and any other rights of the Grantee
under this Option Agreement or the Plan are nontransferable and exercisable only by the Grantee, except as set forth in Section
5.6 of the Plan.


 


		7.	Notices.



 


Any notice to be given under the terms of
this Option Agreement shall be in writing and addressed to the Company at its principal office to the attention of the General
Counsel, and to the Grantee at the address last reflected on the Company’s payroll records, or at such other address as either
party may hereafter designate in writing to the other. Any such notice shall be delivered in person or shall be enclosed in a properly
sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid)
in a post office or branch post office regularly maintained by the United States Government. Any such notice shall be given only
when received, but if the Grantee is no longer employed by the Company or a Subsidiary, shall be deemed to have been duly given
five business days after the date mailed in accordance with the foregoing provisions of this Section 7.


 


		8.	Plan.



 


The Option and all rights of the Grantee
under this Option Agreement are subject to the terms and conditions of the Plan, incorporated herein by this reference. The Grantee
agrees to be bound by the terms of the Plan and this Option Agreement. The Grantee acknowledges having read and understanding the
Plan, the Prospectus for the Plan, and this Option Agreement. Unless otherwise expressly provided in other sections of this Option
Agreement, provisions of the Plan that confer discretionary authority on the Board or the Administrator do not and shall not be
deemed to create any rights in the Grantee unless such rights are expressly set forth herein or are otherwise in the sole discretion
of the Board or the Administrator so conferred by appropriate action of the Board or the Administrator under the Plan after
the date hereof.


 


		9.	Entire Agreement.



 


This Option Agreement and the Plan together
constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with
respect to the subject matter hereof. The Plan and this Option Agreement may be amended pursuant to Section 8.6 of the Plan.
Such amendment


 




    	 	 	 



     


    

 


must be in writing and signed by the Company. The Company may,
however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of
the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a
waiver of any other provision hereof.


 


		10.	Governing Law.



 


This Option Agreement shall be governed
by and construed and enforced in accordance with the laws of Bermuda without regard to conflict of law principles thereunder.


 


		11.	Effect of this Agreement.



 


Subject to the Company’s right to
terminate the Option pursuant to Section 7.2 of the Plan, this Option Agreement shall be assumed by, be binding upon and inure
to the benefit of any successor or successors to the Company.


 


		12.	Counterparts.



 


This Option Agreement may be executed simultaneously
in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the
same instrument.


 


		13.	Section Headings.



 


The section headings of this Option Agreement
are for convenience of reference only and shall not be deemed to alter or affect any provision hereof.


 


		14.	Clawback Policy.



 


The Option is subject to the terms of the
Company’s recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions
of applicable law, any of which could in certain circumstances require forfeiture of the Option and repayment or forfeiture of
any Ordinary Shares or other cash or property received with respect to the Option (including any value received from a disposition
of the shares acquired upon exercise of the Option).


 


		15.	No Advice Regarding Grant. 



 


The Grantee is hereby advised to consult
with his or her own tax, legal and/or investment advisors with respect to any advice the Grantee may determine is needed or appropriate
with respect to the Option (including, without limitation, to determine the foreign, state, local, estate and/or gift tax consequences
with respect to the Option and any shares that may be acquired upon exercise of the Option). Neither the Company nor any of its
officers, directors, affiliates or advisors makes any representation (except for the terms and conditions expressly set forth in
this Option Agreement) or recommendation with respect to the Option. Except for the withholding rights contemplated by Section
4 above and Section 8.5 of the Plan, the Grantee is solely responsible for any and all tax liability that may arise with respect
to the Option and any shares that may be acquired upon exercise of the Option.