Document:

EX-10.2

 Exhibit 10.2 

 
  
 FORM OF OMNIBUS AGREEMENT 
 AMONG 

KNUTSEN NYK OFFSHORE TANKERS AS 
 KNOT OFFSHORE PARTNERS LP 
 KNOT OFFSHORE PARTNERS GP LLC

 KNOT SHUTTLE TANKERS 17 AS 
 AND 
 KNOT SHUTTLE TANKERS 18 AS 

 
  

 TABLE OF CONTENTS 

 

							
		 	ARTICLE I	  			
		 	DEFINITIONS	  			
			
	 Section 1.1
	 	 Definitions
	  	 	2	  
			
		 	ARTICLE II	  			
		 	FIVE-YEAR VESSEL RESTRICTED BUSINESS OPPORTUNITIES	  			
			
	 Section 2.1
	 	 Five-Year Vessel Restricted Businesses
	  	 	8	  
	 Section 2.2
	 	 Permitted Exceptions
	  	 	8	  
			
		 	ARTICLE III	  			
		 	NON-FIVE-YEAR VESSEL RESTRICTED BUSINESS OPPORTUNITIES	  			
			
	 Section 3.1
	 	 Non-Five-Year Vessel Restricted Businesses
	  	 	9	  
	 Section 3.2
	 	 Permitted Exceptions
	  	 	9	  
			
		 	ARTICLE IV	  			
		 	BUSINESS OPPORTUNITIES PROCEDURES	  			
			
	 Section 4.1
	 	 Procedures
	  	 	10	  
	 Section 4.2
	 	 Scope of Prohibition
	  	 	12	  
	 Section 4.3
	 	 Enforcement
	  	 	12	  
			
		 	ARTICLE V	  			
		 	RIGHTS OF FIRST OFFER	  			
			
	 Section 5.1
	 	 Rights of First Offer
	  	 	13	  
	 Section 5.2
	 	 Procedures for Rights of First Offer
	  	 	13	  
			
		 	ARTICLE VI	  			
		 	CARMEN KNUTSEN INTERESTS PURCHASE OPTION	  			
			
	 Section 6.1
	 	 Option to Purchase the Carmen Knutsen Interests
	  	 	14	  
	 Section 6.2
	 	 Procedures
	  	 	14	  
			
		 	ARTICLE VII	  			
		 	HULL 574 INTERESTS PURCHASE OPTION	  			
			
	 Section 7.1
	 	 Option to Purchase the Hull 574 Interests
	  	 	16	  
	 Section 7.2
	 	 Procedures
	  	 	16	  
			
		 	ARTICLE VIII	  			
		 	HULL 2531 INTERESTS PURCHASE OPTION	  			
			
	 Section 8.1
	 	 Option to Purchase the Hull 2531 Interests
	  	 	18	  
	 Section 8.2
	 	 Procedures
	  	 	18	  

  
 i 

							
			
		 	ARTICLE IX	  			
		 	HULL 2532 INTERESTS PURCHASE OPTION	  			
			
	 Section 9.1
	 	 Option to Purchase the Hull 2532 Interests
	  	 	20	  
	 Section 9.2
	 	 Procedures
	  	 	21	  
		 	ARTICLE X	  			
		 	HULL 2575 INTERESTS PURCHASE OPTION	  			
			
	 Section 10.1
	 	 Option to Purchase Hull 2575 Interests
	  	 	22	  
	 Section 10.2
	 	 Procedures
	  	 	23	  
			
		 	ARTICLE XI	  			
		 	GUARANTEES BY KNOT	  			
			
	 Section 11.1
	 	 Guarantee Relating to the Bodil Knutsen
	  	 	25	  
	 Section 11.2
	 	 Guarantee Relating to the Windsor Knutsen
	  	 	25	  
	 Section 11.3
	 	 Gross-up
	  	 	25	  
			
		 	ARTICLE XII	  			
		 	KNOT OPTION TO PURCHASE KNUTSEN SHUTTLE TANKERS 19 INTERESTS	  			
			
	 Section 12.1
	 	 Exercise of KNOT Option to Purchase Knutsen Shuttle Tankers 19 Interests
	  	 	26	  
			
		 	ARTICLE XIII	  			
		 	INDEMNIFICATION	  			
			
	 Section 13.1
	 	 KNOT Indemnification
	  	 	26	  
	 Section 13.2
	 	 Limitation Regarding Indemnification
	  	 	26	  
	 Section 13.3
	 	 Indemnification Procedures
	  	 	27	  
			
		 	ARTICLE XIV	  			
		 	MISCELLANEOUS	  			
			
	 Section 14.1
	 	 Choice of Law; Submission To Jurisdiction
	  	 	28	  
	 Section 14.2
	 	 Notice
	  	 	28	  
	 Section 14.3
	 	 Entire Agreement
	  	 	28	  
	 Section 14.4
	 	 Termination
	  	 	28	  
	 Section 14.5
	 	 Waiver; Effect of Waiver or Consent
	  	 	28	  
	 Section 14.6
	 	 Amendment or Modification
	  	 	29	  
	 Section 14.7
	 	 Assignment
	  	 	29	  
	 Section 14.8
	 	 Counterparts
	  	 	29	  
	 Section 14.9
	 	 Severability
	  	 	29	  
	 Section 14.10
	 	 Gender, Parts, Articles and Sections
	  	 	29	  
	 Section 14.11
	 	 Further Assurances
	  	 	29	  
	 Section 14.12
	 	 Withholding or Granting of Consent
	  	 	29	  
	 Section 14.13
	 	 Laws and Regulations
	  	 	29	  

  
 ii 

							
	 Section 14.14
	 	 Negotiation of Rights of KNOT, Limited Partners, Assignees and Third Parties
	  	 	30	  

  
 iii

 FORM OF OMNIBUS AGREEMENT 

THIS OMNIBUS AGREEMENT is entered into on, and effective as of, the Closing Date (as defined herein), among
KNUTSEN NYK OFFSHORE TANKERS AS, a company organized under the laws of Norway (“KNOT”), KNOT OFFSHORE PARTNERS LP, a Marshall Islands limited partnership (the “MLP”), KNOT OFFSHORE
PARTNERS GP LLC, a Marshall Islands limited liability company (including any permitted successors and assigns under the MLP Agreement (as defined herein)) (the “General Partner”), KNOT SHUTTLE TANKERS 17 AS, a
Norwegian private limited liability company, and KNOT SHUTTLE TANKERS 18 AS, a Norwegian private limited liability company. 

RECITALS: 
 1. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Articles II and IV, with respect to (a) those business
opportunities that the KNOT Entities (as defined herein) will not pursue during the term of this Agreement and (b) the procedures whereby such business opportunities are to be offered to the Partnership Group (as defined herein) and accepted or
declined. 
 2. The Parties desire by their execution of this Agreement to evidence their understanding, as more
fully set forth in Articles III and IV, with respect to (a) those business opportunities that the Partnership Group (as defined herein) will not pursue during the term of this Agreement and (b) the procedures whereby
such business opportunities are to be offered to KNOT and accepted or declined. 
 3. The Parties desire by
their execution of this Agreement to evidence their understanding, as more fully set forth in Article V, with respect to (a) KNOT’s right of first offer relating to Five-Year Vessels (as defined herein) or Non-Five-Year Vessels
(as defined herein) owned by the MLP and (b) the MLP’s right of first offer relating to Five-Year Vessels that KNOT might own. 
 4. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Articles VI, VII, VIII, IX and X, with respect to
the rights of the MLP to purchase the Carmen Knutsen Interests, Hull 574 Interests, Hull 2531 Interests, Hull 2532 Interests and Hull 2575 Interests (in each case, as defined herein) from KNOT. 

5. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in
Section 6.2(b)(ii), Section 7.2(c)(ii), Section 8.2(c)(ii), Section 9.2(c)(ii), Section 10.2(c)(ii) and Article XIII, with respect to certain indemnification obligations of KNOT.

 In consideration of the premises and the covenants, conditions, and agreements contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

  
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 ARTICLE I 

DEFINITIONS 
 Section 1.1 Definitions. As used in this Agreement, the following terms shall have the respective meanings set forth below: 

“Acquiring Party” has the meaning given such term in Section 4.1. 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 “Agreement” means this Omnibus Agreement, as it may be amended, modified, or supplemented from time to time in accordance with Section 14.6 hereof. 

“Board” means the Board of Directors of the MLP. 

“Bodil Knutsen” means the shuttle tanker built in 2011 that is currently operating under the
Bodil Knutsen Charter. 
 “Bodil Knutsen Charter” means the Bodil Knutsen Time Charter
Party, dated October 7, 2010, between Knutsen Bøyelaster VI KS and Statoil ASA, amended by Addendum No. 1, dated March 29, 2011, between Knutsen Bøyelaster VI KS and Statoil ASA and novated by the Novation Agreement, dated February 18,
2013, between Knutsen Bøyelaster VI KS, KNOT Shuttle Tankers 17 AS and Statoil ASA. 

“Brazil Shipping” means Brazil Shipping I Limited, formerly known as BG Oil Services
Limited. 
 “Break-up Costs” means the aggregate amount of any and all additional
taxes, flag administration, financing, legal and other similar costs (except with respect to Section 2.2(b) where Break-up Costs shall be deemed to include only administrative costs associated with transfer and re-flagging, including
related legal costs) to (a) the KNOT Entities that would be required to transfer Five-Year Vessels acquired by the KNOT Entities as part of a larger transaction to a Partnership Group Member pursuant to Sections 2.2(b) or
2.2(d)(i), or (b) the Partnership Group that would be required to transfer Non-Five-Year Vessels acquired by the Partnership Group as part of a larger transaction to a KNOT Entity pursuant to Section 3.2(b)(i). 

“Carmen Knutsen” means the shuttle tanker built in 2013 by HHI that began operating under a time
charter that expires in January 2018 with Repsol YPF. 
 “Carmen Knutsen Interests”
means all of KNOT’s rights, title and interests in the Carmen Knutsen, including the shares of capital stock, limited liability company interests, limited partnership interests or any other interests in any KNOT Entity holding interests

  
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in the Carmen Knutsen and including any charters or other agreements relating to the operation of the Carmen Knutsen then in effect. 

“Change of Control” means, with respect to any Person (the “Applicable
Person”), any of the following events: (a) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the Applicable Person’s assets to any other Person,
unless immediately following such sale, lease, exchange or other transfer such assets are owned, directly or indirectly, by the Applicable Person; (b) the consolidation or merger of the Applicable Person with or into another Person pursuant to
a transaction in which the outstanding Voting Securities of the Applicable Person are changed into or exchanged for cash, securities or other property, other than any such transaction where (i) the outstanding Voting Securities of the
Applicable Person are changed into or exchanged for Voting Securities of the surviving Person or its parent and (ii) the holders of the Voting Securities of the Applicable Person immediately prior to such transaction own, directly or
indirectly, not less than a majority of the outstanding Voting Securities of the surviving Person or its parent immediately after such transaction; and (c) a “person” or “group” (within the
meaning of Sections 13(d) or 14(d)(2) of the Exchange Act), other than KNOT or its Affiliates with respect to the General Partner, being or becoming the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act) of more than 50% of all of the then outstanding Voting Securities of the Applicable Person, except in a merger or consolidation which would not constitute a Change of Control under clause (b) above. 

“Closing Date” means             ,
2013, the date of the closing of the initial public offering of common units representing limited partner interests in the MLP. 
 “Conflicts Committee” means the Conflicts Committee of the Board. 
 “Contribution Assets” has the meaning given such term in Section 13.1. 
 “Cosco” means Cosco (Zhoushan Shipyard Co., Ltd.), which is building the newbuild the Hull 574. 

“Covered Environmental Losses” means all Losses suffered or incurred by the Partnership Group by
reason of, arising out of or resulting from: 
 (a) any violation or correction of violation of
Environmental Laws; or 
 (b) any event or condition relating to environmental or human health
and safety matters, in each case, associated with the ownership or operation by the Partnership Group or the KNOT Entities of the Contribution Assets (including, without limitation, the presence of Hazardous Substances on, under, about or migrating
to or from the Contribution Assets or the disposal or release of, or exposure to, Hazardous Substances generated by or otherwise related to operation of the Contribution Assets), including, without limitation, the reasonable and documented cost and
expense of (i) any investigation, assessment, evaluation, monitoring, containment, cleanup, repair, restoration, 

  
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remediation or other corrective action required or necessary under Environmental Laws, (ii) the preparation and implementation of any closure, remedial, corrective action or other plans
required or necessary under Environmental Laws and (iii) any environmental or toxic tort (including, without limitation, personal injury or property damage claims) pre-trial, trial or appellate legal or litigation support work; 

but only to the extent that such violation complained of under clause (a), or such events or conditions included in
clause (b), occurred before the Closing Date; and, provided, that in no event shall Losses to the extent arising from a change in any Environmental Law after the Closing Date be deemed “Covered Environmental
Losses.” 
 “Eni” means Eni Trading and Shipping S.p.A., the charterer of
the Hull 2531 and the Hull 2532 after their respective completion and delivery by HHI. 

“Environmental Laws” means all international, federal, state, foreign and local laws, statutes,
rules, regulations, treaties, conventions, orders, judgments and ordinances having the force and effect of law and relating to protection of natural resources, health and safety and the environment, each in effect and as amended through the Closing
Date. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 “First Offer Negotiation Period” has the meaning given such term in
Section 5.2(c). 
 “Five-Year Vessel” means any shuttle tanker operating
under a charter for five or more years, together with the related charter. 
 “General
Partner” is defined in the introduction to this Agreement. 
 “Hazardous
Substances” means (a) each substance defined, designated or classified as a hazardous waste, hazardous substance, hazardous material, solid waste, contaminant or toxic substance under Environmental Laws; (b) petroleum and
petroleum products, including crude oil and any fractions thereof; (c) natural gas, synthetic gas and any mixtures thereof; (d) any radioactive material; and (e) any asbestos-containing materials in a friable condition. 

“HHI” means Hyundai Heavy Industries, which is building the newbuilds the Carmen Knutsen, the
Hull 2531, the Hull 2532 and the Hull 2575. 
 “Hull 574” means the
shuttle tanker being built by Cosco that is scheduled for delivery in 2014. 

“Hull 574 Interests” means all of KNOT’s rights, title and interests in
the Hull 574, including the shares of capital stock, limited liability company interests, limited partnership interests or any other interests in any KNOT Entity holding interests in the Hull 574 and including any charters or other
agreements relating to the operation of the Hull 574 then in effect. 

  
 4 

 “Hull 2531” means the shuttle tanker being
built by HHI that is scheduled for delivery in the third quarter of 2013. 
 “Hull 2531
Interests” means all of KNOT’s rights, title and interests in the Hull 2531, including the shares of capital stock, limited liability company interests, limited partnership interests or any other interests in any KNOT Entity
holding interests in the Hull 2531 and including any charters or other agreements relating to the operation of the Hull 2531 then in effect. 
 “Hull 2532” means the shuttle tanker being built by HHI that is scheduled for delivery in the third quarter of 2013. 

“Hull 2532 Interests” means all of KNOT’s rights, title and interests in the
Hull 2532, including the shares of capital stock, limited liability company interests, limited partnership interests or any other interests in any KNOT Entity holding interests in the Hull 2532 and including any charters or other
agreements relating to the operation of the Hull 2532 then in effect. 

“Hull 2575” means the shuttle tanker being built by HHI that is scheduled for delivery in
the fourth quarter of 2013. 
 “Hull 2575 Interests” means all of KNOT’s
rights, title and interests in the Hull 2575, including the shares of capital stock, limited liability company interests, limited partnership interests or any other interests in any KNOT Entity holding interests in the Hull 2575 and
including any charters or other agreements relating to the operation of the Hull 2575 then in effect. 

“KNOT” is defined in the introduction to this Agreement. 

“KNOT Entities” means KNOT and any Person controlled, directly or indirectly, by KNOT, other
than the Partnership Entities. 
 “KNOT Potential Transferee” has the meaning given
such term in Section 5.2(b). 
 “KNOT Sale Assets” has the meaning given
such term in Section 5.2(b). 
 “KNOT Transfer Notice” has the meaning
given such term in Section 5.2(b). 
 “KNOT Transferring Party” has the
meaning given such term in Section 5.2(b). 
 “Knutsen Shuttle Tankers 19”
means Knutsen Shuttle Tankers 19 AS, the current party to the ship-building contract with Cosco for the Hull 574 and a wholly-owned subsidiary of Knutsen NYK Shuttle Tankers AS, a company jointly owned by TS Shipping Invest AS and Nippon Yusen
Kaisha. 

  
 5 

 “Knutsen Shuttle Tankers 19 Interests” means all of
ownership interests in Knutsen Shuttle Tankers 19, including all of the shares of capital stock, limited liability company interests, limited partnership interests or any other interests in Knutsen Shuttle Tankers 19. 

“Losses” means losses, damages, liabilities, claims, demands, causes of action, judgments,
settlements, fines, penalties, costs and expenses (including, without limitation, court costs and reasonable attorneys’ and experts’ fees) of any and every kind or character; provided, however, that such term shall not
include any special, indirect, incidental or consequential damages. 
 “MLP” is defined
in the introduction to this Agreement. 
 “MLP Agreement” means the First Amended
and Restated Agreement of Limited Partnership of the MLP, dated as of            , 2013, as such agreement is in effect on the Closing Date, to which reference is hereby made for all
purposes of this Agreement. No amendment or modification to the MLP Agreement subsequent to the Closing Date shall be given effect for purposes of this Agreement unless consented to by each of the Parties to this Agreement. 

“Non-Five-Year Vessel” means any shuttle tanker that is not a Five-Year Vessel. 

“Offer” has the meaning given such term in Section 4.1. 

“Offered Assets” has the meaning given such term in Section 4.1. 

“Offeree” has the meaning given such term in Section 4.1. 

“Offer Period” has the meaning given such term in Section 4.1(b)(i). 

“Parties” means the parties to this Agreement and their successors and permitted assigns.

 “Partnership Entities” means the General Partner, the MLP and any Person controlled
by the General Partner or the MLP. 
 “Partnership Group” means the MLP and any Person
controlled by the MLP. 
 “Partnership Group Member” means any Person in the
Partnership Group. 
 “Partnership Potential Transferee” has the meaning given such
term in Section 5.2(a). 
 “Partnership Sale Assets” has the meaning given
such term in Section 5.2(a). 

  
 6 

 “Partnership Transfer Notice” has the meaning given
such term in Section 5.2(a). 
 “Partnership Transferring Party” has the
meaning given such term in Section 5.2(a). 
 “Person” means an individual,
corporation, partnership, joint venture, trust, limited liability company, unincorporated organization or any other entity. 
 “Potential Transferee” has the meaning given such term in Section 5.2(b). 
 “Repsol” means Repsol YPF Trading y Transporte, S.A., the charterer of the Carmen Knutsen. 

“Repsol Sinopec” means Repsol Sinopec Brasil BV, the charterer of the Hull 574 after its
completion and delivery from Cosco. 
 “Sale Assets” has the meaning given such term in
Section 5.2(b). 
 “Standard Marine” means Standard Marine
Tønsberg AS, the charterer of the Hull 2575 after its completion and delivery from HHI. 

“Statoil” means Statoil ASA. 

“Transfer” means any transfer, assignment, sale or other disposition of any Non-Five-Year Vessel
by a KNOT Entity or of any Five-Year Vessel or Non-Five-Year Vessel by a Partnership Group Member; provided, however, that such term shall not include: (a) transfers, assignments, sales or other dispositions from a KNOT Entity to
another KNOT Entity, or from a Partnership Group Member to another Partnership Group Member; (b) transfers, assignments, sales or other dispositions pursuant to the terms of any related charter or other agreement with a charter party;
(c) transfers, assignments, sales or other dispositions pursuant to Articles II or III of this Agreement; or (d) grants of security interests in or mortgages or liens on such Five-Year Vessels or Non-Five-Year Vessels in
favor of a bona fide third party lender (but not the foreclosing of any such security interest, mortgage or lien). 
 “Transfer Notice” has the meaning given such term in Section 5.2(b). 
 “Transferring Party” has the meaning given such term in Section 5.2(b). 
 “Voting Securities” means securities of any class of Person entitling the holders thereof to vote in the election of members of the board of directors or other similar governing
body of the Person. 
 “Windsor Knutsen” means the vessel built in 2007 and retrofitted
from a conventional crude oil tanker to a shuttle tanker in 2001, and that is currently operating under the Windsor Knutsen Charter. 

  
 7 

 “Windsor Knutsen Charter” means the Windsor Knutsen
Time Charter Party, dated April 6, 2010, between Knutsen OAS Shipping AS and Brazil Shipping I Limited, formerly known as BG Oil Services Limited, novated by the Novation Agreement, dated May 3, 2010, between Knutsen OAS Shipping AS, Knutsen
Bøyelaster XI KS and Brazil Shipping I Limited, formerly known as BG Oil Services Limited and further novated by the Novation Agreement, dated February 20, 2013, between Knutsen Bøyelaster XI KS, KNOT Shuttle Tankers 18 AS and Brazil
Shipping I Limited. 
 ARTICLE II 
 FIVE-YEAR VESSEL RESTRICTED BUSINESS OPPORTUNITIES 

Section 2.1 Five-Year Vessel Restricted Businesses. Subject to Section 14.4 and except as
permitted by Section 2.2, each of the KNOT Entities shall be prohibited from acquiring, owning, operating or chartering Five-Year Vessels. 
 Section 2.2 Permitted Exceptions. Notwithstanding any provision of Section 2.1 to the contrary, the restrictions in this Agreement shall not prevent any KNOT Entity from:

 (a) acquiring, owning, operating or chartering any Non-Five-Year Vessel; 

(b) acquiring one or more Five-Year Vessels if such KNOT Entity offers to sell to the vessel to the MLP for the
acquisition price plus any Break-up Costs in accordance with the procedures set forth in Section 4.1; 
 (c) putting a Non-Five-Year Vessel under charter for five or more years if such KNOT Entity offers to sell the vessel to the MLP for fair market value (x) after the time it becomes a Five-Year Vessel
and (y) at each renewal or extension of that charter for five or more years, in each case in accordance with the procedures set forth in Section 4.1; 

(d) acquiring one or more Five-Year Vessels as part of the acquisition of a controlling interest in a business or package
of assets and owning, operating or chartering such Five-Year Vessel(s); provided, however, that: 
 (i) if less than a majority of the value of the business or assets acquired is attributable to Five-Year Vessels, as determined in good faith by KNOT’s board of directors, the KNOT Entity must offer
to sell such Five-Year Vessel(s) to the MLP for their fair market value plus any Break-up Costs in accordance with the procedures set forth in Section 4.1; and 

(ii) if a majority or more of the value of the business or assets acquired is
attributable to Five-Year Vessels, as determined in good faith by KNOT’s board of directors, KNOT shall notify the MLP of the proposed acquisition in writing. The MLP shall, not later than the 30th calendar day following receipt of such notice, notify KNOT if it or
any other Partnership Group Member wishes to acquire any Five-Year Vessel forming part of that business or package of assets in cooperation and simultaneously with the KNOT Entity acquiring the Non-Five-Year Vessels forming part of that business or
package of 

  
 8 

 
assets. If the MLP does not notify KNOT of its intent to pursue the acquisition within such 30 calendar days, the KNOT Entity may proceed with the acquisition and then offer to sell such vessels
to the MLP as provided in subsection (i) above; 
 (e) acquiring up to a 9.9% equity ownership,
voting or profit participation interest in any company, business or pool of assets; 
 (f) acquiring, owning,
operating or chartering any Five-Year Vessel if the MLP does not fulfill its obligation to purchase such Five-Year Vessel in accordance with the terms of any existing or future agreement; 

(g) acquiring, owning, operating or chartering any Five-Year Vessel that is subject to an offer to purchase by a
Partnership Group Member as described in paragraphs (b), (c) and (d) above, in each case pending the offer of such Five-Year Vessel to the MLP and the MLP’s determination pursuant to Section 4.1
whether to purchase the Five-Year Vessel and, if the MLP has determined to purchase or to cause any Partnership Group Member to purchase such Five-Year Vessel, pending the closing of such purchase; 

(h) providing ship management services relating to any vessel; 

(i) owning or operating any Five-Year Vessel that KNOT owns on the Closing Date and that is not part of the Partnership
Group’s initial fleet on the Closing Date; or 
 (j) acquiring, owning, operating or chartering any
Five-Year Vessel if the MLP has previously advised KNOT that it consents to such acquisition, operation or charter. 

ARTICLE III 
 NON-FIVE-YEAR VESSEL RESTRICTED BUSINESS OPPORTUNITIES 

Section 3.1 Non-Five-Year Vessel Restricted Businesses. Subject to Section 14.4 and except as
permitted by Section 3.2, each Partnership Group Member shall be prohibited from acquiring, owning, operating or chartering Non-Five-Year Vessels. 
 Section 3.2 Permitted Exceptions. Notwithstanding any provision of Section 3.1 to the contrary, the restrictions in this Agreement shall not prevent any Partnership Group Member
from: 
 (a) owning, operating or chartering any Non-Five-Year Vessel that was previously a Five-Year Vessel
while owned by any Partnership Group Member; 
 (b) acquiring one or more Non-Five-Year Vessels as part of the
acquisition of a controlling interest in a business or package of assets and owning, operating or chartering those Non-Five-Year Vessels; provided, however, that: 

(i) if less than a majority of the value of the business or assets acquired is attributable to
Non-Five-Year Vessels, as determined in good faith by the Board, such Partnership Group Member must offer to sell such Non-Five-Year 

  
 9 

 
Vessels to KNOT for their fair market value plus any applicable Break-up Costs in accordance with the procedures set forth in Section 4.1; and 

(ii) if a majority or more of the value of the business or assets acquired is
attributable to Non-Five-Year Vessels, as determined in good faith by the Board, the MLP shall notify KNOT of the proposed acquisition in writing. KNOT shall, not later than the 30th calendar day following receipt of such notice, notify the MLP if it or any other KNOT Entity wishes to acquire
any Non-Five-Year Vessel forming part of that business or package of assets in cooperation and simultaneously with the Partnership Group Member acquiring the Five-Year Vessels forming part of that business or package of assets. If KNOT does not
notify the MLP of its intent to pursue the acquisition within such 30 calendar days, the Partnership Group Member may proceed with the acquisition and then offer to sell such Non-Five-Year Vessels to KNOT as provided in
subsection (i) above; 
 (c) acquiring, owning, operating or chartering any Non-Five-Year Vessel
that is subject to an offer to purchase by a KNOT Entity as described in paragraph (b) above pending the offer of such Non-Five-Year Vessel to KNOT and KNOT’s determination pursuant to Section 4.1 whether to purchase the
Five-Year Vessel and, if KNOT has determined to purchase or cause any KNOT Entity to purchase such Five-Year Vessel, pending the closing of such purchase; or 
 (d) acquiring, owning, operating or chartering Non-Five-Year Vessels if KNOT has previously advised the MLP that it consents to such acquisition, ownership, operation or charter. 

ARTICLE IV 
 BUSINESS OPPORTUNITIES PROCEDURES 
 Section 4.1
Procedures. In the event that (a) a Partnership Group Member acquires, operates or puts under charter Non-Five-Year Vessels in accordance with Section 3.2(b)(i), or (b) a KNOT Entity acquires, operates or puts under
charter Five-Year Vessels in accordance with Section 2.2(b), (c) or (d)(i), then simultaneously or in any event not later than 30 calendar days after the consummation of the acquisition or the commencement of
operations or charter, such acquiring Party (the “Acquiring Party”) shall notify (i) KNOT, in the case of an acquisition by a Partnership Group Member or (ii) the Board, in the case of an acquisition by a KNOT
Entity, and offer such party to be notified (each an “Offeree”) the opportunity for any KNOT Entity or Partnership Group Member, as applicable, to purchase such Non-Five-Year Vessels or Five-Year Vessels, as applicable (the
“Offered Assets”), for their fair market value (or, in the case of an acquisition in accordance with Section 2.2(b), the acquisition price) plus, in the case of an acquisition in accordance with
Sections 2.2(b), 2.2(d)(i) or 3.2(b)(i), any applicable Break-up Costs, in each case on commercially reasonable terms in accordance with this Section 4.1 (the “Offer”). The Offer shall
set forth the Acquiring Party’s proposed terms relating to the purchase of the Offered Assets by the applicable KNOT Entity or Partnership Group Member, including any liabilities to be assumed by the applicable KNOT Entity or Partnership Group
Member as 

  
 10 

 
part of the Offer. As soon as practicable after the Offer is made, the Acquiring Party will deliver to the Offeree all information prepared by or on behalf of or in the possession of such
Acquiring Party relating to the Offered Assets and reasonably requested by the Offeree. As soon as practicable, but in any event, within 30 calendar days after receipt of the Offer, the Offeree shall notify the Acquiring Party in writing that
either: 
 (a) KNOT has elected not to purchase (or not to cause any of its permitted Affiliates to purchase) or
the Board has elected not to cause any Partnership Group Member to purchase, as applicable, such Offered Assets, in which event the Acquiring Party and its Affiliates shall, subject to the other terms of this Agreement (including
Section 2.2(b)), be forever free, subject to the provisions of this Agreement, to continue to own, operate and charter such Offered Assets; or 
 (b) KNOT has elected to purchase (or to cause any of its permitted Affiliates to purchase) or the Board has elected to cause any Partnership Group Member to purchase, as applicable, such Offered Assets,
in which event the following procedures shall be followed: 
 (i) After the receipt of the Offer
by the Offeree, the Acquiring Party and the Offeree shall negotiate in good faith regarding the fair market value (and any applicable Break-up Costs) of the Offered Assets that are subject to the Offer and the other terms of the Offer on which the
Offered Assets will be sold to the applicable KNOT Entity or Partnership Group Member. If the Acquiring Party and the Offeree agree on the fair market value (and any applicable Break-up Costs) of the Offered Assets that are subject to the Offer and
the other terms of the Offer during the 30-day period (the “Offer Period”) after receipt by the Acquiring Party of KNOT’s election to purchase (or election to cause any of its permitted Affiliates to purchase) or of the
Board’s election to cause any Partnership Group Member to purchase, as applicable, the Offered Assets, KNOT shall purchase (or cause any of its permitted Affiliates to purchase) or the Board shall cause any Partnership Group Member to purchase,
as applicable, the Offered Assets on such terms as soon as commercially practicable after such agreement has been reached. 
 (ii) If the Acquiring Party and the Offeree are unable to agree on the fair market value (and any applicable Break-up Costs) of the Offered Assets that are subject to the Offer or on any other terms of
the Offer during the Offer Period, the Acquiring Party and the Offeree will engage a mutually-agreed-upon investment banking firm, ship broker or other expert advisor prior to the end of the Offer Period to determine the fair market value of the
Offered Assets and/or the other terms on which the Acquiring Party and the Offeree are unable to agree. In determining the fair market value of the Offered Assets and other terms on which the Offered Assets are to be sold, the investment banking
firm, ship broker or other expert advisor, as applicable, will have access to the proposed sale and purchase values and terms for the Offer submitted by the Acquiring Party and the Offeree, respectively, and to all information prepared by or on
behalf of the Acquiring Party relating to the Offered Assets and reasonably requested by such investment banking firm, ship broker or other expert advisor. 

  
 11 

 
Such investment banking firm, ship broker or other expert advisor will determine the fair market value (and any applicable Break-up Costs) of the Offered Assets and/or the other terms on which
the Acquiring Party and the Offeree are unable to agree within 30 calendar days of its engagement and furnish the Acquiring Party and the Offeree its determination. The fees and expenses of the investment banking firm, ship broker or other
expert advisor, as applicable, will be divided equally between the Acquiring Party and the Offeree. Upon receipt of such determination, the Offeree will have the option, but not the obligation: 

(A) in the case that the Offeree is KNOT, to purchase or cause any of its permitted Affiliates to
purchase, or in the case that the Offeree is the Board, to cause any Partnership Group Member to purchase the Offered Assets for the fair market value (and any applicable Break-up Costs), and on the other terms determined by the ship broker or
investment banking firm, as soon as commercially practicable after determinations have been made; or 
 (B) in the case that the Offeree is KNOT, to elect not to cause any of its permitted Affiliates to purchase, or in the case that the Offeree is the Board, not to cause any Partnership Group Member to
purchase such Offered Assets, in which event the Acquiring Party and its Affiliates shall, subject to the other terms of this Agreement, be forever free to continue to own and operate such Offered Assets. 

Section 4.2 Scope of Prohibition. If any Party or its Affiliates engages in the ownership or operation of
Five-Year Vessels in the case of a KNOT Entity, or Non-Five-Year Vessels in the case of a Partnership Group Member, pursuant to any of the exceptions described in Sections 2.2 or 3.2, as applicable, the Party and its Affiliates
may not subsequently expand that portion of their business other than pursuant to the exceptions contained in such Sections 2.2 or 3.2. Except as otherwise provided in this Agreement or the MLP Agreement, each Party and its
Affiliates shall be free to engage in any business activity whatsoever, including those that may be in direct competition with the KNOT Entities or the Partnership Group Members. 

Section 4.3 Enforcement. Each Party agrees and acknowledges that the other Parties do not have an adequate
remedy at law for the breach by any such Party of its covenants and agreements set forth in this Article IV, and that any breach by any such Party of its covenants and agreements set forth in this Article IV would result in
irreparable injury to such other Parties. Each Party further agrees and acknowledges that any other Party may, in addition to the other remedies which may be available to such other Party, file a suit in equity to enjoin such Party from such breach,
and consent to the issuance of injunctive relief to enforce the provisions of Article IV of this Agreement. 

  
 12 

 ARTICLE V 

RIGHTS OF FIRST OFFER 
 Section 5.1 Rights of First Offer. 
 (a) The Partnership Group hereby
grants KNOT a right of first offer on any proposed Transfer by any Partnership Group Member of any Five-Year Vessels or any Non-Five-Year Vessels owned or acquired by any Partnership Group Member. 

(b) The KNOT Entities hereby grant the MLP a right of first offer on any proposed Transfer of any Five-Year Vessels owned or acquired by
any KNOT Entity. 
 (c) The Parties acknowledge that all potential Transfers of Five-Year Vessels or Non-Five-Year Vessels
pursuant to this Article V are subject to obtaining any and all written consents of governmental authorities and other non-affiliated third parties and to the terms of all existing agreements in respect of such Five-Year Vessels or
Non-Five-Year Vessels, as applicable. 
 Section 5.2 Procedures for Rights of First Offer.

 (a) In the event that a Partnership Group Member (a “Partnership Transferring Party”) proposes to
Transfer any Non-Five-Year Vessels (the “Partnership Sale Assets”), prior to engaging in any negotiation for such Transfer with any non-affiliated third party or otherwise offering to Transfer the Partnership Sale Assets to
any non-affiliated third party, such Partnership Transferring Party shall give KNOT (a “Partnership Potential Transferee”), written notice setting forth all material terms and conditions (including, without limitation, the
purchase price or the terms of the charter agreement and a description of the Partnership Sale Asset(s) on which such Partnership Transferring Party desires to Transfer the Partnership Sale Assets) (a “Partnership Transfer
Notice”). 
 (b) In the event that a KNOT Entity (a “KNOT Transferring
Party” and, together with a Partnership Transferring Party, a “Transferring Party”) proposes to Transfer any Five-Year Vessels (the “KNOT Sale Assets” and, together with the Partnership
Sale Assets, the “Sale Assets”), prior to engaging in any negotiation for such Transfer with any non-affiliated third party or otherwise offering to Transfer the KNOT Sale Assets to any non-affiliated third party, such KNOT
Transferring Party shall give the MLP (a “KNOT Potential Transferee” and, together with a Partnership Potential Transferee, a “Potential Transferee”), written notice setting forth all material terms
and conditions (including, without limitation, the purchase price or the terms of the charter agreement and a description of the KNOT Sale Asset(s) on which such KNOT Transferring Party desires to Transfer the KNOT Sale Assets) (a “KNOT
Transfer Notice” and, together with a Partnership Transfer Notice, each a “Transfer Notice”). 
 (c) After delivery of a Transfer Notice, the Transferring Party then shall be obligated to negotiate in good faith for a 30-day period following the delivery by the Transferring Party of the Transfer
Notice (the “First Offer Negotiation Period”) to reach an agreement for the Transfer of such Sale Assets to the Potential Transferee or any of its Affiliates on the terms and conditions set forth in the Transfer Notice. If no
such agreement with respect to 

  
 13 

 
the Sale Assets is reached during the First Offer Negotiation Period, and the Transferring Party has not Transferred, or agreed in writing to Transfer, such Sale Assets to a third party within
180 calendar days after the end of the First Offer Negotiation Period on terms generally no less favorable to the Transferring Party than those included in the Transfer Notice, then the Transferring Party shall not thereafter Transfer any of
the Sale Assets without first offering such assets to the applicable Potential Transferee in the manner provided above. 

ARTICLE VI 
 CARMEN KNUTSEN INTERESTS PURCHASE OPTION 

Section 6.1 Option to Purchase the Carmen Knutsen Interests. 

(a) KNOT hereby grants to the Partnership Group the unconditional right and option to purchase for fair market value at
any time within 24 months after the Closing Date, all of the Carmen Knutsen Interests. 
 (b) The
Parties acknowledge that the potential transfer of the Carmen Knutsen Interests pursuant to this Article VI is subject to obtaining any and all written consents of governmental authorities and other third parties and to the terms of all
agreements existing as of the date hereof in respect of the Carmen Knutsen Interests including, without limitation, any rights of first refusal of the parties to such agreements to purchase the Carmen Knutsen Interests. KNOT hereby covenants and
agrees to use its reasonable efforts to obtain any such consents required to be obtained by it in connection with the transfer of the Carmen Knutsen Interests pursuant to this Article VI. 

Section 6.2 Procedures. 

(a) If a Partnership Group Member decides to exercise the option to purchase the Carmen Knutsen Interests, it will
provide, within 24 months of the Closing Date, written notice to KNOT of such exercise, the fair market value it proposes to pay for the Carmen Knutsen Interests, and the other material terms of the purchase. The decision to purchase the Carmen
Knutsen Interests, the fair market value to be paid for the Carmen Knutsen Interests, and the other terms of the purchase shall be approved by the Conflicts Committee. If the Partnership Group Member and KNOT are unable to agree on the fair market
value of the Carmen Knutsen Interests and/or the other material terms, the Partnership Group Member and KNOT shall engage a mutually-agreed-upon investment banking firm, ship broker or other expert advisor to determine the fair market value of the
Carmen Knutsen Interests and/or the other material terms on which the Partnership Group Member and KNOT are unable to agree. In determining the fair market value of the Carmen Knutsen Interests and/or the other material terms on which the Carmen
Knutsen Interests are to be sold, the investment banking firm, ship broker or other expert advisor, as applicable, will have access to the proposed sale and purchase values and terms for the offer submitted by the Partnership Group Member and KNOT,
respectively, and to all information prepared by or on behalf of the Partnership Group Member and KNOT with respect to the Carmen Knutsen Interests and reasonably requested by such investment banking firm, ship broker or other expert advisor. Such
investment banking firm, ship broker or other expert advisor will determine the fair market value of the Carmen Knutsen Interests and/or the other 

  
 14 

 
terms on which the Partnership Group Member and KNOT are unable to agree within 30 calendar days of its engagement and furnish the Partnership Group Member and KNOT its determination. The
fees and expenses of the investment banking firm, ship broker or other expert advisor, as applicable, will be divided equally between the Partnership Group Member and KNOT. Upon receipt of such determination, the Partnership Group Member will have
the option, but not the obligation in to purchase the Carmen Knutsen Interests for the fair market value and on the other terms determined by the investment banking firm, ship broker or other expert advisor, as soon as commercially practicable after
determinations have been made. 
 (b) If a Partnership Group Member chooses to exercise its option to purchase
the Carmen Knutsen Interests, the applicable parties shall enter into a purchase and sale agreement for the purchase and sale of the Carmen Knutsen Interests pursuant to which KNOT shall be obligated to sell the Carmen Knutsen Interests to the
Partnership Group Member and the Partnership Group Member shall be obligated to purchase the Carmen Knutsen Interests from KNOT. The terms of the purchase and sale agreement will include the following: 

(i) the Partnership Group Member will deliver a cash purchase price (unless the Partnership Group Member
and KNOT agree that the consideration will be paid by means of equity of the MLP, an interest-bearing promissory note or other form of consideration); 

(ii) the Partnership Group will be entitled to the benefit of the indemnification contained in
Article XIII of this Agreement for the remaining term of such indemnification with respect to events or conditions associated with the operation of the Carmen Knutsen and occurring before the date of acquisition of the Carmen Knutsen
Interests by the Partnership Group Member; 
 (iii) KNOT will provide customary representations
and warranties with respect to title to the Carmen Knutsen Interests and any other such matters as the Partnership Group Member may approve, which approval will not be unreasonably withheld; 

(iv) KNOT will grant to the Partnership Group Member the right, exercisable at the Partnership Group
Member’s risk and expense, to make such surveys, tests and inspections of the Carmen Knutsen as the Partnership Group Member may deem desirable, so long as such surveys, tests or inspections do not damage the Carmen Knutsen or interfere with
the activities of the KNOT Entities or Repsol thereon and so long as the Partnership Group Member has furnished KNOT with evidence that adequate liability insurance is in full force and effect; 

(v) the Partnership Group Member will have the right to terminate its obligation to purchase the Carmen
Knutsen under this Article VI and the related purchase and sale agreement if the results of any searches, surveys, tests or inspections conducted pursuant to paragraph (iv) above are, in the reasonable opinion of the
Partnership Group, unsatisfactory; and 

  
 15 

 (vi) neither KNOT nor the applicable Partnership Group
Member shall have any obligation to sell or buy the Carmen Knutsen if any of the consents referred to in Section 6.1(b) above have not been obtained. 

(c) If a Partnership Group Member chooses or is deemed to have chosen not to exercise its option to purchase the Carmen
Knutsen at the price determined by the investment banking firm, ship broker or other expert advisor under Section 6.2 (a), all future rights to purchase the Carmen Knutsen Interests by the Partnership Group will be extinguished.

 ARTICLE VII 
 HULL 574 INTERESTS PURCHASE OPTION 
 Section 7.1
Option to Purchase the Hull 574 Interests. 
 (a) KNOT hereby grants to the Partnership Group the unconditional
right and option to purchase for fair market value at any time within 24 months after KNOT notifies the Board pursuant to Section 8.2(a) that the Hull 574 has been accepted by Repsol Sinopec, all of the Hull 574 Interests.

 (b) The Parties acknowledge that the potential transfer of the Hull 574 Interests pursuant to this
Article VII is subject to obtaining any and all written consents of governmental authorities and other third parties and to the terms of all agreements existing as of the date hereof in respect of the Hull 574 Interests including, without
limitation, any rights of first refusal of the parties to such agreements to purchase the Hull 574 Interests. KNOT hereby covenants and agrees to use its reasonable efforts to obtain any such consents required to be obtained by it in connection
with the transfer of the Hull 574 Interests pursuant to this Article VII. 
 Section 7.2 Procedures. 

(a) Not later than 30 calendar days after the date of acceptance of the Hull 574 by Repsol Sinopec, KNOT shall
notify the Board and offer the Board the opportunity to cause any Partnership Group Member to purchase the Hull 574 Interests for fair market value pursuant to Section 7.1(a). 

(b) If a Partnership Group Member decides to exercise the option to purchase the Hull 574 Interests, it will
provide, within 24 months of receipt of notice pursuant to Section 7.2(a), written notice to KNOT of such exercise, the fair market value it proposes to pay for the Hull 574 Interests, and the other material terms of the purchase. The
decision to purchase the Hull 574 Interests, the fair market value to be paid for the Hull 574 Interests, and the other terms of the purchase shall be approved by the Conflicts Committee. If the Partnership Group Member and KNOT are unable
to agree on the fair market value of the Hull 574 Interests and/or the other material terms, the Partnership Group Member and KNOT shall engage a mutually-agreed-upon investment banking firm, ship broker or other expert advisor to determine the
fair market value of the Hull 574 Interests and/or the other material terms on which the Partnership Group Member and KNOT are unable to agree. In determining the fair market value of the Hull 574 Interests and/or the other material terms
on which the Hull 574 Interests are to be sold, 

  
 16 

 
the investment banking firm, ship broker or other expert advisor, as applicable, will have access to the proposed sale and purchase values and terms for the offer submitted by the Partnership
Group Member and KNOT, respectively, and to all information prepared by or on behalf of the Partnership Group Member and KNOT with respect to the Hull 574 Interests and reasonably requested by such investment banking firm, ship broker or other
expert advisor. Such investment banking firm, ship broker or other expert advisor will determine the fair market value of the Hull 574 Interests and/or the other terms on which the Partnership Group Member and KNOT are unable to agree within
30 calendar days of its engagement and furnish the Partnership Group Member and KNOT its determination. The fees and expenses of the investment banking firm, ship broker or other expert advisor, as applicable, will be divided equally between
the Partnership Group Member and KNOT. Upon receipt of such determination, the Partnership Group Member will have the option, but not the obligation in to purchase the Hull 574 Interests for the fair market value and on the other terms
determined by the investment banking firm, ship broker or other expert advisor, as soon as commercially practicable after determinations have been made. 
 (c) If a Partnership Group Member chooses to exercise its option to purchase the Hull 574 Interests under Section 7.2(b), the applicable parties shall enter into a purchase and sale agreement
for the purchase and sale of the Hull 574 Interests pursuant to which KNOT shall be obligated to sell the Hull 574 Interests to the Partnership Group Member and the Partnership Group Member shall be obligated to purchase the Hull 574
Interests from KNOT. The terms of the purchase and sale agreement will include the following: 

(i) the Partnership Group Member will deliver a cash purchase price (unless the Partnership Group Member
and KNOT agree that the consideration will be paid by means of equity of the MLP, an interest-bearing promissory note or other form of consideration); 

(ii) the Partnership Group will be entitled to the benefit of the indemnification contained in
Article XIII of this Agreement for the remaining term of such indemnification with respect to events or conditions associated with the operation of the Hull 574 and occurring before the date of acquisition of the Hull 574 Interests by
the Partnership Group Member; provided, however, that the remaining term of any such indemnification with respect to the Hull 574 shall be deemed to be not less than three years from the closing date of the acquisition of the Hull 574
Interests by the Partnership Group Member; 
 (iii) KNOT will provide customary representations
and warranties with respect to title to the Hull 574 Interests and any other such matters as the Partnership Group Member may approve, which approval will not be unreasonably withheld; 

(iv) KNOT will grant to the Partnership Group Member the right, exercisable at the Partnership Group
Member’s risk and expense, to make such surveys, tests and inspections of the Hull 574 as the Partnership Group Member may deem desirable, so long as such surveys, tests or inspections do not damage the Hull 574 or interfere with the
activities of the KNOT Entities or 

  
 17 

 
Repsol Sinopec thereon and so long as the Partnership Group Member has furnished KNOT with evidence that adequate liability insurance is in full force and effect; 

(v) the Partnership Group Member will have the right to terminate its obligation to purchase the
Hull 574 under this Article VII and the related purchase and sale agreement if the results of any searches, surveys, tests or inspections conducted pursuant to paragraph (iii) above are, in the reasonable opinion of the Partnership
Group, unsatisfactory; and 
 (vi) neither KNOT nor the applicable Partnership Group Member shall
have any obligation to sell or buy the Hull 574 if any of the consents referred to in Section 7.1(b) above have not been obtained. 
 (d) If a Partnership Group Member chooses or is deemed to have chosen not to exercise its option to purchase the Hull 574 Interests at the price determined by the investment banking firm, ship broker
or other expert advisor under Section 7.1(b), all future rights to purchase the Hull 574 Interests by the Partnership Group will be extinguished. 
 ARTICLE VIII 
 HULL 2531 INTERESTS PURCHASE OPTION

 Section 8.1 Option to Purchase the Hull 2531 Interests. 

(a) KNOT hereby grants to the Partnership Group the unconditional right and option to purchase for fair market value at
any time within 24 months after KNOT notifies the Board pursuant to Section 8.2(a) that the Hull 2531 has been accepted by Eni, all of the Hull 2531 Interests. 

(b) The Parties acknowledge that the potential transfer of the Hull 2531 Interests pursuant to this
Article VIII is subject to obtaining any and all written consents of governmental authorities and other third parties and to the terms of all agreements existing as of the date hereof in respect of the Hull 2531 Interests including,
without limitation, any rights of first refusal of the parties to such agreements to purchase the Hull 2531 Interests. KNOT hereby covenants and agrees to use its reasonable efforts to obtain any such consents required to be obtained by it in
connection with the transfer of the Hull 2531 Interests pursuant to this Article VIII. 

Section 8.2 Procedures. 

(a) Not later than 30 calendar days after the date of acceptance of the Hull 2531 by Eni, KNOT shall notify the
Board and offer the Board the opportunity to cause any Partnership Group Member to purchase the Hull 2531 Interests for fair market value pursuant to Section 8.1(a). 

(b) If a Partnership Group Member decides to exercise the option to purchase the Hull 2531 Interests, it will
provide, within 24 months of receipt of notice pursuant to 

  
 18 

 
Section 8.2(a), written notice to KNOT of such exercise, the fair market value it proposes to pay for the Hull 2531 Interests, and the other material terms of the purchase. The
decision to purchase the Hull 2531 Interests, the fair market value to be paid for the Hull 2531 Interests, and the other terms of the purchase shall be approved by the Conflicts Committee. If the Partnership Group Member and KNOT are
unable to agree on the fair market value of the Hull 2531 Interests and/or the other material terms, the Partnership Group Member and KNOT shall engage a mutually-agreed-upon investment banking firm, ship broker or other expert advisor to
determine the fair market value of the Hull 2531 Interests and/or the other material terms on which the Partnership Group Member and KNOT are unable to agree. In determining the fair market value of the Hull 2531 Interests and/or the other
material terms on which the Hull 2531 Interests are to be sold, the investment banking firm, ship broker or other expert advisor, as applicable, will have access to the proposed sale and purchase values and terms for the offer submitted by the
Partnership Group Member and KNOT, respectively, and to all information prepared by or on behalf of the Partnership Group Member and KNOT with respect to the Hull 2531 Interests and reasonably requested by such investment banking firm, ship
broker or other expert advisor. Such investment banking firm, ship broker or other expert advisor will determine the fair market value of the Hull 2531 Interests and/or the other terms on which the Partnership Group Member and KNOT are unable
to agree within 30 calendar days of its engagement and furnish the Partnership Group Member and KNOT its determination. The fees and expenses of the investment banking firm, ship broker or other expert advisor, as applicable, will be divided
equally between the Partnership Group Member and KNOT. Upon receipt of such determination, the Partnership Group Member will have the option, but not the obligation in to purchase the Hull 2531 Interests for the fair market value and on the
other terms determined by the investment banking firm, ship broker or other expert advisor, as soon as commercially practicable after determinations have been made. 

(c) If a Partnership Group Member chooses to exercise its option to purchase the Hull 2531 Interests under
Section 8.2(b), the applicable parties shall enter into a purchase and sale agreement for the purchase and sale of the Hull 2531 Interests pursuant to which KNOT shall be obligated to sell the Hull 2531 Interests to the Partnership
Group Member and the Partnership Group Member shall be obligated to purchase the Hull 2531 Interests from KNOT. The terms of the purchase and sale agreement will include the following: 

(i) the Partnership Group Member will deliver a cash purchase price (unless the Partnership Group Member
and KNOT agree that the consideration will be paid by means of equity of the MLP, an interest-bearing promissory note or other form of consideration); 

(ii) the Partnership Group will be entitled to the benefit of the indemnification contained in Article
XIII of this Agreement for the remaining term of such indemnification with respect to events or conditions associated with the operation of the Hull 2531 and occurring before the date of acquisition of the Hull 2531 Interests by the
Partnership Group Member; provided, however, that the remaining term of any such indemnification with respect to the Hull 2531 shall be deemed to be not less than three years from the closing date of the acquisition of the
Hull 2531 Interests by the Partnership Group Member; 

  
 19 

 (iii) KNOT will provide customary representations and
warranties with respect to title to the Hull 2531 Interests and any other such matters as the Partnership Group Member may approve, which approval will not be unreasonably withheld; 

(iv) KNOT will grant to the Partnership Group Member the right, exercisable at the Partnership Group
Member’s risk and expense, to make such surveys, tests and inspections of the Hull 2531 as the Partnership Group Member may deem desirable, so long as such surveys, tests or inspections do not damage the Hull 2531 or interfere with
the activities of the KNOT Entities or Eni thereon and so long as the Partnership Group Member has furnished KNOT with evidence that adequate liability insurance is in full force and effect; 

(v) the Partnership Group Member will have the right to terminate its obligation to purchase the
Hull 2531 under this Article VIII and the related purchase and sale agreement if the results of any searches, surveys, tests or inspections conducted pursuant to paragraph (iii) above are, in the reasonable opinion of
the Partnership Group, unsatisfactory; and 
 (vi) neither KNOT nor the applicable Partnership
Group Member shall have any obligation to sell or buy the Hull 2531 if any of the consents referred to in Section 8.1(b) above have not been obtained. 

(d) If a Partnership Group Member chooses or is deemed to have chosen not to exercise its option to purchase the
Hull 2531 Interests at the price determined by the investment banking firm, ship broker or other expert advisor under Section 8.2(b), all future rights to purchase the Hull 2531 Interests by the Partnership Group will be
extinguished. 
 ARTICLE IX 
 HULL 2532 INTERESTS PURCHASE OPTION 
 Section 9.1
Option to Purchase the Hull 2532 Interests. 
 (a) KNOT hereby grants to the Partnership Group the
unconditional right and option to purchase for fair market value at any time within 24 months after KNOT notifies the Board pursuant to Section 9.2(a) that the Hull 2532 has been accepted by Eni, all of the Hull 2532
Interests. 
 (b) The Parties acknowledge that the potential transfer of the Hull 2532 Interests pursuant
to this Article IX is subject to obtaining any and all written consents of governmental authorities and other third parties and to the terms of all agreements existing as of the date hereof in respect of the Hull 2532 Interests
including, without limitation, any rights of first refusal of the parties to such agreements to purchase the Hull 2532 Interests. KNOT hereby covenants and agrees to use its reasonable efforts to obtain any such consents required to be obtained
by it in connection with the transfer of the Hull 2532 Interests pursuant to this Article IX. 

  
 20 

 Section 9.2 Procedures. 

(a) Not later than 30 calendar days after the date of acceptance of the Hull 2532 by Eni, KNOT shall
notify the Board and offer the Board the opportunity to cause any Partnership Group Member to purchase the Hull 2532 Interests for fair market value pursuant to Section 9.1(a). 

(b) If a Partnership Group Member decides to exercise the option to purchase the Hull 2532 Interests, it will
provide, within 24 months of receipt of notice pursuant to Section 9.2(a), written notice to KNOT of such exercise, the fair market value it proposes to pay for the Hull 2532 Interests, and the other material terms of the purchase.
The decision to purchase the Hull 2532 Interests, the fair market value to be paid for the Hull 2532 Interests, and the other terms of the purchase shall be approved by the Conflicts Committee. If the Partnership Group Member and KNOT are
unable to agree on the fair market value of the Hull 2532 Interests and/or the other material terms, the Partnership Group Member and KNOT shall engage a mutually-agreed-upon investment banking firm, ship broker or other expert advisor to
determine the fair market value of the Hull 2532 Interests and/or the other material terms on which the Partnership Group Member and KNOT are unable to agree. In determining the fair market value of the Hull 2532 Interests and/or the other
material terms on which the Hull 2532 Interests are to be sold, the investment banking firm, ship broker or other expert advisor, as applicable, will have access to the proposed sale and purchase values and terms for the offer submitted by the
Partnership Group Member and KNOT, respectively, and to all information prepared by or on behalf of the Partnership Group Member and KNOT with respect to the Hull 2532 Interests and reasonably requested by such investment banking firm, ship
broker or other expert advisor. Such investment banking firm, ship broker or other expert advisor will determine the fair market value of the Hull 2532 Interests and/or the other terms on which the Partnership Group Member and KNOT are unable
to agree within 30 calendar days of its engagement and furnish the Partnership Group Member and KNOT its determination. The fees and expenses of the investment banking firm, ship broker or other expert advisor, as applicable, will be divided
equally between the Partnership Group Member and KNOT. Upon receipt of such determination, the Partnership Group Member will have the option, but not the obligation in to purchase the Hull 2532 Interests for the fair market value and on the
other terms determined by the investment banking firm, ship broker or other expert advisor, as soon as commercially practicable after determinations have been made. 

(c) If a Partnership Group Member chooses to exercise its option to purchase the Hull 2532 Interests under
Section 9.2(b), the applicable parties shall enter into a purchase and sale agreement for the purchase and sale of the Hull 2532 Interests pursuant to which KNOT shall be obligated to sell the Hull 2532 Interests to the
Partnership Group Member and the Partnership Group Member shall be obligated to purchase the Hull 2532 Interests from KNOT. The terms of the purchase and sale agreement will include the following: 

(i) the Partnership Group Member will deliver a cash purchase price (unless the Partnership Group Member
and KNOT agree that the consideration will be paid by means of equity of the MLP, an interest-bearing promissory note or other form of consideration); 

  
 21 

 (ii) the Partnership Group will be entitled to the benefit
of the indemnification contained in Article XIII of this Agreement for the remaining term of such indemnification with respect to events or conditions associated with the operation of the Hull 2532 and occurring before the date of
acquisition of the Hull 2532 Interests by the Partnership Group Member; provided, however, that the remaining term of any such indemnification with respect to the Hull 2532 shall be deemed to be not less than three years from
the closing date of the acquisition of the Hull 2532 Interests by the Partnership Group Member; 
 (iii) KNOT will provide customary representations and warranties with respect to title to the Hull 2532 Interests and any other such matters as the Partnership Group Member may approve, which
approval will not be unreasonably withheld; 
 (iv) KNOT will grant to the Partnership Group
Member the right, exercisable at the Partnership Group Member’s risk and expense, to make such surveys, tests and inspections of the Hull 2532 as the Partnership Group Member may deem desirable, so long as such surveys, tests or
inspections do not damage the Hull 2532 or interfere with the activities of the KNOT Entities or Eni thereon and so long as the Partnership Group Member has furnished KNOT with evidence that adequate liability insurance is in full force and
effect; 
 (v) the Partnership Group Member will have the right to terminate its obligation to
purchase the Hull 2532 under this Article VIII and the related purchase and sale agreement if the results of any searches, surveys, tests or inspections conducted pursuant to paragraph (iii) above are, in the reasonable
opinion of the Partnership Group, unsatisfactory; and 
 (vi) neither KNOT nor the applicable
Partnership Group Member shall have any obligation to sell or buy the Hull 2532 if any of the consents referred to in Section 8.1(b) above have not been obtained. 

(d) If a Partnership Group Member chooses or is deemed to have chosen not to exercise its option to purchase the
Hull 2532 Interests at the price determined by the investment banking firm, ship broker or other expert advisor under Section 9.2(b), all future rights to purchase the Hull 2532 Interests by the Partnership Group will be
extinguished. 
 ARTICLE X 
 HULL 2575 INTERESTS PURCHASE OPTION 

Section 10.1 Option to Purchase the Hull 2575 Interests. 

(a) KNOT hereby grants to the Partnership Group the unconditional right and option to purchase for fair market value at
any time within 24 months after KNOT notifies the Board pursuant to Section 10.2(a) that the Hull 2575 has been accepted by Standard Marine, all of the Hull 2575 Interests. 

  
 22 

 (b) The Parties acknowledge that the potential transfer of the
Hull 2575 Interests pursuant to this Article X is subject to obtaining any and all written consents of governmental authorities and other third parties and to the terms of all agreements existing as of the date hereof in respect of
the Hull 2575 Interests including, without limitation, any rights of first refusal of the parties to such agreements to purchase the Hull 2575 Interests. KNOT hereby covenants and agrees to use its reasonable efforts to obtain any such
consents required to be obtained by it in connection with the transfer of the Hull 2575 Interests pursuant to this Article X. 
 Section 10.2 Procedures. 
 (a) Not later than
30 calendar days after the date of acceptance of the Hull 2575 by Standard Marine, KNOT shall notify the Board and offer the Board the opportunity to cause any Partnership Group Member to purchase the Hull 2575 Interests for fair
market value pursuant to Section 10.1(a). 
 (b) If a Partnership Group Member decides to exercise
the option to purchase the Hull 2575 Interests, it will provide, within 24 months of receipt of notice pursuant to Section 10.2(a), written notice to KNOT of such exercise, the fair market value it proposes to pay for the
Hull 2575 Interests, and the other material terms of the purchase. The decision to purchase the Hull 2575 Interests, the fair market value to be paid for the Hull 2575 Interests, and the other terms of the purchase shall be approved
by the Conflicts Committee. If the Partnership Group Member and KNOT are unable to agree on the fair market value of the Hull 2575 Interests and/or the other material terms, the Partnership Group Member and KNOT shall engage a
mutually-agreed-upon investment banking firm, ship broker or other expert advisor to determine the fair market value of the Hull 2575 Interests and/or the other material terms on which the Partnership Group Member and KNOT are unable to agree.
In determining the fair market value of the Hull 2575 Interests and/or the other material terms on which the Hull 2575 Interests are to be sold, the investment banking firm, ship broker or other expert advisor, as applicable, will have
access to the proposed sale and purchase values and terms for the offer submitted by the Partnership Group Member and KNOT, respectively, and to all information prepared by or on behalf of the Partnership Group Member and KNOT with respect to the
Hull 2575 Interests and reasonably requested by such investment banking firm, ship broker or other expert advisor. Such investment banking firm, ship broker or other expert advisor will determine the fair market value of the Hull 2575
Interests and/or the other terms on which the Partnership Group Member and KNOT are unable to agree within 30 calendar days of its engagement and furnish the Partnership Group Member and KNOT its determination. The fees and expenses of the
investment banking firm, ship broker or other expert advisor, as applicable, will be divided equally between the Partnership Group Member and KNOT. Upon receipt of such determination, the Partnership Group Member will have the option, but not the
obligation in to purchase the Hull 2575 Interests for the fair market value and on the other terms determined by the investment banking firm, ship broker or other expert advisor, as soon as commercially practicable after determinations have
been made. 
 (c) If a Partnership Group Member chooses to exercise its option to purchase the Hull 2575
Interests under Section 10.2(b), the applicable parties shall enter into a purchase and sale agreement for the purchase and sale of the Hull 2575 Interests pursuant to which KNOT

  
 23 

 
shall be obligated to sell the Hull 2575 Interests to the Partnership Group Member and the Partnership Group Member shall be obligated to purchase the Hull 2575 Interests from KNOT. The
terms of the purchase and sale agreement will include the following: 
 (i) the Partnership Group
Member will deliver a cash purchase price (unless the Partnership Group Member and KNOT agree that the consideration will be paid by means of equity of the MLP, an interest-bearing promissory note or other form of consideration); 

(ii) the Partnership Group will be entitled to the benefit of the indemnification contained in
Article XIII of this Agreement for the remaining term of such indemnification with respect to events or conditions associated with the operation of the Hull 2575 and occurring before the date of acquisition of the Hull 2575
Interests by the Partnership Group Member; provided, however, that the remaining term of any such indemnification with respect to the Hull 2575 shall be deemed to be not less than three years from the closing date of the
acquisition of the Hull 2575 Interests by the Partnership Group Member; 
 (iii) KNOT will
provide customary representations and warranties with respect to title to the Hull 2575 Interests and any other such matters as the Partnership Group Member may approve, which approval will not be unreasonably withheld; 

(iv) KNOT will grant to the Partnership Group Member the right, exercisable at the Partnership Group
Member’s risk and expense, to make such surveys, tests and inspections of the Hull 2575 as the Partnership Group Member may deem desirable, so long as such surveys, tests or inspections do not damage the Hull 2575 or interfere with
the activities of the KNOT Entities or Standard Marine thereon and so long as the Partnership Group Member has furnished KNOT with evidence that adequate liability insurance is in full force and effect; 

(v) the Partnership Group Member will have the right to terminate its obligation to purchase the
Hull 2575 under this Article X and the related purchase and sale agreement if the results of any searches, surveys, tests or inspections conducted pursuant to paragraph (iii) above are, in the reasonable opinion of the
Partnership Group, unsatisfactory; and 
 (vi) neither KNOT nor the applicable Partnership Group
Member shall have any obligation to sell or buy the Hull 2575 if any of the consents referred to in Section 10.1(b) above have not been obtained. 

(d) If a Partnership Group Member chooses or is deemed to have chosen not to exercise its option to purchase the
Hull 2575 Interests at the price determined by the investment banking firm, ship broker or other expert advisor under Section 10.2(b), all future rights to purchase the Hull 2575 Interests by the Partnership Group will be
extinguished. 

  
 24 

 ARTICLE XI 

GUARANTEES BY KNOT 
 Section 11.1 Guarantee Relating to the Bodil Knutsen. If at any time during the five years following the Closing Date, the Bodil Knutsen is not receiving from any charterer a rate of hire that
is equal to or greater than the rate of hire then in effect and payable under the Bodil Knutsen Charter, then KNOT shall pay, or cause to be paid, to KNOT Shuttle Tankers 17 AS, the owner of the Bodil Knutsen, such rate of hire that would have been
in effect and payable under the Bodil Knutsen Charter; provided, however, that in the event that for any period during such five years following the Closing Date the Bodil Knutsen is chartered under a charter other than the Bodil
Knutsen Charter and the rate of hire being paid under such charter is lower than the rate of hire that would have been in effect and payable under the Bodil Knutsen Charter during any such period, then KNOT shall pay, or cause to be paid, to the
owner of the Bodil Knutsen, the difference between the rate of hire that would have been in effect and payable under the Bodil Knutsen Charter during such period and the rate of hire that is then in effect and payable under such other charter.

 Section 11.2 Guarantee Relating to the Windsor Knutsen. If at any time during the five years
following the Closing Date, the Windsor Knutsen is not receiving from any charterer a rate of hire that is equal to or greater than the rate of hire then in effect and payable under the Windsor Knutsen Charter, then KNOT shall pay, or cause to be
paid, to KNOT Shuttle Tankers 18 AS, the owner of the Windsor Knutsen, such rate of hire that would have been in effect and payable under the Windsor Knutsen Charter; provided, however, that in the event that for any period during such
five years following the Closing Date the Windsor Knutsen is chartered under a charter other than the Windsor Knutsen Charter and the rate of hire being paid under such charter is lower than the rate of hire that would have been in effect and
payable under the Windsor Knutsen Charter during any such period, then KNOT shall pay, or cause to be paid, to the owner of the Windsor Knutsen, the difference between the rate of hire that would have been in effect and payable under the Windsor
Knutsen Charter during such period and the rate of hire that is then in effect and payable under such other charter; provided, further, that for purposes of this Section 11.2, the rate of hire that would have been in effect
and payable under the Windsor Knutsen Charter during the period between the final termination date of the Windsor Knutsen Charter (assuming that all extension options thereunder would have been exercised) and the last day of the five-year period
following the Closing Date (inclusive) shall be deemed to have been the rate of hire that would have been in effect and payable during the last option extension period under the Windsor Knutsen Charter (assuming that all extension options thereunder
would have been exercised). 
 Section 11.3 Gross-up. Any payment required to be made by KNOT pursuant to
this Article XI shall be increased as necessary such that the net payment after allowance for any applicable taxes equals the amount due under Sections 11.1 and/or 11.2. 

  
 25 

 ARTICLE XII 
 KNOT OPTION TO PURCHASE KNUTSEN SHUTTLE TANKERS 19 INTERESTS 
 Section 12.1
Exercise of KNOT Option to Purchase Knutsen Shuttle Tankers 19 Interests. KNOT shall exercise its option to purchase the Knutsen Shuttle Tankers 19 Interests from TS Shipping Invest AS and Nippon Yusen Kaisha, on, or prior to, the date of
acceptance of Hull 574 by Repsol Sinopec. 
 ARTICLE XIII 

INDEMNIFICATION 
 Section 13.1 KNOT Indemnification. Subject to the provisions of Section 13.2 and Section 13.3, KNOT shall indemnify, defend and hold harmless the Partnership
Group from and against: (a) any Covered Environmental Losses relating to the assets contributed by the KNOT Entities to the Partnership Group prior to or on the Closing Date (the “Contribution Assets”) to the extent that
KNOT is notified by the MLP of any such Covered Environmental Losses within five years after the Closing Date; (b) Losses to the Partnership Group arising from (i) the failure of the Partnership Group, immediately after the Closing Date,
to be the owner of such valid leasehold interests or fee ownership interests in and to the Contribution Assets as are necessary to enable the Partnership Entities to own and operate the Contribution Assets in substantially the same manner that the
Contribution Assets were owned and operated by the KNOT Entities immediately prior to the respective dates on which each such Contribution Asset was acquired by the Partnership Entities or (ii) the failure of the Partnership Entities to have by
the Closing Date any consent or governmental permit necessary to allow the Partnership Entities to own or operate the Contribution Assets in substantially the same manner that the Contribution Assets were owned and operated by the KNOT Entities
immediately prior to the respective dates on which each such Contribution Asset was acquired by the Partnership Entities, in each of clauses (i) and (ii) above, to the extent that KNOT is notified by the MLP of such Losses
within three years after the Closing Date; and (c) all federal, state, foreign and local income tax liabilities attributable to the operation of the Contribution Assets prior to the Closing Date, including any such income tax liabilities of the
KNOT Entities that may result from the consummation of the formation transactions for the Partnership Group and the MLP, but excluding any federal, state, foreign and local income taxes reserved on the books of the Partnership Group on the Closing
Date or any taxes occurred upon the entrance of any of the Contribution Assets into the Norwegian tonnage tax regime. 
 Section 13.2 Limitation Regarding Indemnification. The aggregate liability of KNOT under Section 13.1(a) above shall not exceed $5,000,000. Furthermore, no claim may be made
against KNOT for indemnification pursuant to Section 13.1(a), unless the aggregate dollar amount of all claims for indemnification pursuant to such section shall exceed $500,000, in which case KNOT shall be liable for claims for
indemnification only to the extent such aggregate amount exceeds $500,000. 

  
 26 

 Section 13.3 Indemnification Procedures. 

(a) The Partnership Group Members agree that within a reasonable period of time after they become aware of facts giving
rise to a claim for indemnification pursuant to Section 13.1, they will provide notice thereof in writing to KNOT specifying the nature of and specific basis for such claim. 

(b) KNOT shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims
brought against the Partnership Group that are covered by the indemnification set forth in Section 13.1, including, without limitation, the selection of counsel, determination of whether to appeal any decision of any court and the
settling of any such matter or any issues relating thereto; provided, however, that no such settlement shall be entered into without the consent (which consent shall not be unreasonably withheld) of the Partnership Group unless it
includes a full release of the Partnership Group from such matter or issues, as the case may be. 
 (c) The
Partnership Group Members agree to cooperate fully with KNOT with respect to all aspects of the defense of any claims covered by the indemnification set forth in Section 13.1, including, without limitation, the prompt furnishing to KNOT
of any correspondence or other notice relating thereto that the Partnership Group may receive, permitting the names of the members of the Partnership Group to be utilized in connection with such defense, the making available to KNOT of any files,
records or other information of the Partnership Group that KNOT considers relevant to such defense and the making available to KNOT of any employees of the Partnership Group; provided, however, that in connection therewith KNOT agrees
to use reasonable efforts to minimize the impact thereof on the operations of the Partnership Group and further agrees to maintain the confidentiality of all files, records and other information furnished by a Partnership Group Member pursuant to
this Section 13.3. In no event shall the obligation of the Partnership Group to cooperate with KNOT as set forth in the immediately preceding sentence be construed as imposing upon the Partnership Group an obligation to hire and pay for
counsel in connection with the defense of any claims covered by the indemnification set forth in this Article III; provided, however, that the Partnership Group Members may, at their own option, cost and expense, hire and
pay for counsel in connection with any such defense. KNOT agrees to keep any such counsel hired by the Partnership Group reasonably informed as to the status of any such defense (including providing such counsel with such information related to any
such defense as such counsel may reasonably request) but KNOT shall have the right to retain sole control over such defense. 
 In determining the amount of any Loss for which any of the members of the Partnership Group is entitled to indemnification under this Agreement, the gross amount of the indemnification will be reduced by
(i) any insurance proceeds realized by the Partnership Group, and such correlative insurance benefit shall be net of any incremental insurance premium that becomes due and payable by the Partnership Group as a result of such claim, and
(ii) all amounts recovered by the Partnership Group under contractual indemnities from third Persons. The Partnership Group hereby agrees to use commercially reasonable efforts to realize any applicable insurance proceeds or amounts recoverable
under such contractual indemnities; provided, however, that the costs and expenses (including, without limitation, court costs and reasonable attorneys’ fees) of the Partnership Group in connection with such efforts shall be

  
 27 

 
promptly reimbursed by KNOT in advance of any determination of whether such insurance proceeds or other amounts will be recoverable. 

ARTICLE XIV 
 MISCELLANEOUS 
 Section 14.1 Choice of Law;
Submission To Jurisdiction. This Agreement shall be subject to and governed by the laws of the State of New York. Each party hereby submits to the jurisdiction of the state and federal courts located in the State of New York and to venue in
New York, New York. 
 Section 14.2 Notice. All notices, requests or consents provided for or
permitted to be given pursuant to this Agreement must be in writing and must be given by depositing the same in the mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or by delivering
such notice in person or by private-courier, prepaid, or by telecopier to such party. Notice given by personal delivery or mail shall be effective upon actual receipt. Couriered notices shall be deemed delivered on the date the courier represents
that delivery will occur. Notice given by telecopier shall be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next business day after receipt if not received
during the recipient’s normal business hours. All notices to be sent to a party pursuant to this Agreement shall be sent to or made at the address set forth below such party’s signature to this Agreement, or at such other address as such
party may stipulate to the other parties in the manner provided in this Section 14.2. 

Section 14.3 Entire Agreement. This Agreement constitutes the entire agreement of the parties relating to the
matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein. 
 Section 14.4 Termination. Upon a Change of Control of the General Partner or of the MLP, the provisions of Articles II, III, IV and V of this Agreement (but not less
than all of such Articles) shall terminate immediately. Upon a Change of Control of KNOT, the provisions of Articles II, III, IV and V of this Agreement applicable to KNOT (but not less than all of such Articles)
shall terminate at the time that is the later of (a) the date on which all of the MLP’s outstanding subordinated units have converted to common units of the MLP and (b) the date of the Change of Control of KNOT. On the date on which a
majority of the members of the Board ceases to consist of members of the Board that were (i) appointed by the General Partner prior to the 2013 annual meeting of unitholders and (ii) recommended for election to the Board by a majority of
the Appointed Directors (as defined in the MLP Agreement), the provisions of Articles II, VI, VII, VIII, IX and X and, to the extent applicable to any KNOT Entity, Sections 5.1(b) and
5.2(b) of this Agreement shall terminate immediately. 
 Section 14.5 Waiver; Effect of Waiver or
Consent. Any party hereto may (a) extend the time for the performance of any obligation or other act of any other party hereto or (b) waive compliance with any agreement or condition contained herein. Except as otherwise specifically
provided herein, any such extension or waiver shall be valid only if set forth in a written instrument duly executed by the party or parties to be bound thereby; provided, however, that the

  
 28 

 
MLP may not, without the prior approval of the Conflicts Committee, agree to any extension or waiver of this Agreement that, in the reasonable discretion of the Board, will adversely affect the
holders of common units of the MLP. No waiver or consent, express or implied, by any party of or to any breach or default by any Person in the performance by such Person of its obligations hereunder shall be deemed or construed to be a waiver or
consent of or to any other breach or default in the performance by such Person of the same or any other obligations of such Person hereunder. Failure on the part of a party to complain of any act of any Person or to declare any Person in default,
irrespective of how long such failure continues, shall not constitute a waiver by such party of its rights hereunder until the applicable statute of limitations period has run. 

Section 14.6 Amendment or Modification. This Agreement may be amended or modified from time to time only by
the written agreement of all the parties hereto; provided, however, that the MLP may not, without the prior approval of the Conflicts Committee, agree to any amendment or modification of this Agreement that, in the reasonable
discretion of the Board, will adversely affect the holders of common units of the MLP. 
 Section 14.7
Assignment. No party shall have the right to assign its rights or obligations under this Agreement without the consent of the other parties hereto. 
 Section 14.8 Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts shall be
construed together and shall constitute one and the same instrument. 
 Section 14.9 Severability.
If any provision of this Agreement or the application thereof to any Person or circumstance shall be held invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other Persons or circumstances
shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 

Section 14.10 Gender, Parts, Articles and Sections. Whenever the context requires, the gender of all words
used in this Agreement shall include the masculine, feminine and neuter, and the number of all words shall include the singular and plural. All references to Article numbers and Section numbers refer to Articles and Sections of this Agreement.

 Section 14.11 Further Assurances. In connection with this Agreement and all transactions
contemplated by this Agreement, each signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of
the terms, provisions and conditions of this Agreement and all such transactions. 
 Section 14.12
Withholding or Granting of Consent. Each party may, with respect to any consent or approval that it is entitled to grant pursuant to this Agreement, grant or withhold such consent or approval in its sole and uncontrolled discretion, with or
without cause, and subject to such conditions as it shall deem appropriate. 
 Section 14.13 Laws and
Regulations. Notwithstanding any provision of this Agreement to the contrary, no party to this Agreement shall be required to take any act, or fail to take any act, under this Agreement if the effect thereof would be to cause such party to be in
violation of any applicable law, statute, rule or regulation. 

  
 29 

 Section 14.14 Negotiation of Rights of KNOT, Limited Partners,
Assignees and Third Parties. The provisions of this Agreement are enforceable solely by the parties to this Agreement, and no shareholder of KNOT and no limited partner, member, assignee or other Person of the MLP shall have the right, separate
and apart from KNOT or the MLP, as applicable, to enforce any provision of this Agreement or to compel any party to this Agreement to comply with the terms of this Agreement. 
 [Signature Pages Follow] 

  
 30 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on, and
effective as of, the Closing Date. 
  

			
	KNUTSEN NYK OFFSHORE TANKERS AS
		
	By:	 	  

		 	Name:
		 	Title:

 
			
	
	Address for Notice:
		
	[—]	 	
	[—]	 	
	[—]	 	
	Telephone:	 	(        )     -        
	Fax:	 	(        )     -        
	Attention:	 	  

 

			
	
	KNOT OFFSHORE PARTNERS LP
		
	By:	 	  

		 	Name:
		 	Title:

 
			
	
	Address for Notice:
		
	[—]	 	
	[—]	 	
	[—]	 	
	Telephone:	 	(        )     -        
	Fax:	 	(        )     -        
	Attention:	 	  

 SIGNATURE PAGE TO 

OMNIBUS AGREEMENT 

 
			
	KNOT OFFSHORE PARTNERS GP LLC
		
	By:	 	  

		 	Name:
		 	Title:

 
			
	
	Address for Notice:
		
	[—]	 	
	[—]	 	
	[—]	 	
	Telephone:	 	(        )     -        
	Fax:	 	(        )     -        
	Attention:	 	  

 

			
	
	KNOT SHUTTLE TANKERS 17 AS
		
	By:	 	  

		 	Name:
		 	Title:

 
			
	
	Address for Notice:
		
	[—]	 	
	[—]	 	
	[—]	 	
	Telephone:	 	(        )     -        
	Fax:	 	(        )     -        
	Attention:	 	  

 SIGNATURE PAGE TO 

OMNIBUS AGREEMENT 

 
			
	KNOT SHUTTLE TANKERS 18 AS
		
	By:	 	  

		 	Name:
		 	Title:

 
			
	
	Address for Notice:
		
	[—]	 	
	[—]	 	
	[—]	 	
	Telephone:	 	(        )     -        
	Fax:	 	(        )     -        
	Attention:	 	  

 SIGNATURE PAGE TO 

OMNIBUS AGREEMENTEX-10.10

 EXHIBIT 10.10 
 DATED 
 28 March 2013 

SERVICE AGREEMENT 
 between 
 KNOT OFFSHORE PARTNERS UK LLC 

and 
 ARILD
VIK 

 THIS AGREEMENT is dated 28 March 2013 
 PARTIES 
  

	(1)	KNOT OFFSHORE PARTNERS UK LLC, a limited liability company duly organized and existing under the laws of the Republic of The Marshall Islands (Company).

  

	(2)	ARILD VIK of 28 St. John’s Lane, LONDON EC1M 4BU (Employee). 

 AGREED TERMS 
  

	1.	INTERPRETATION 

  

	1.1	The definitions and rules of interpretation in this clause 1 apply in this agreement. 

Appointment: the employment of the Employee by the Company on the terms of this agreement. 

Associated Employer: has the meaning given to it in the Employment Rights Act 1996. 

Board: the board of directors of the Company (including any committee of the board duly appointed by it). 

Capacity: as agent, consultant, director, employee, owner, partner, shareholder or in any other capacity. 

Commencement Date: 28 April 2013. 
 Confidential Information: information (whether or not recorded in documentary form, or stored on any magnetic or optical disk or memory) relating to the business, products, affairs and finances of
any Group Undertaking for the time being confidential to any Group Undertaking and trade secrets including, without limitation, technical data and know-how relating to the business of any Group Undertaking or any of their business contacts.

 Garden Leave: any period during which the Company has exercised its rights under clause 20. 

Group Undertaking: the Company, any of its Subsidiary Undertakings and Parent Undertakings from time to time and any Subsidiary
Undertakings of any Parent Undertakings from time to time. 
 Incapacity: any sickness, injury or other medical disorder
or condition which prevents the Employee from carrying out his duties. 
 Intellectual Property Rights: patents, rights to
Inventions, copyright and related rights, trademarks, trade names and domain names, rights in get-up, rights in goodwill or to sue for passing off, unfair competition rights, rights in designs, rights in computer software, database rights,
topography rights, rights in confidential information (including know-how and trade secrets) and any other intellectual 

  
 1 

 
property rights, in each case whether registered or unregistered and including all applications (or rights to apply) for, and renewals or extensions of, such rights and all similar or equivalent
rights or forms of protection which subsist or will subsist now or in the future in any part of the world. 
 Invention:
any invention, idea, discovery, development, improvement or innovation, whether or not patentable or capable of registration, and whether or not recorded in any medium. 
 Pre-Contractual Statement: any undertaking, promise, assurance, statement, representation, warranty or understanding (whether in writing or not) of any person (whether party to this agreement or
not) relating to the Employee’s employment under this agreement which is not expressly set out in this agreement. 

Restricted Business: the business of offshore DP shuttle tankers and any other parts of the business of the Company and any Group
Undertaking with which the Employee was involved to a material extent in the 12 months before Termination. 
 Restricted
Customer: any firm, company or person who, during the 12 months before Termination, was a customer or prospective customer of or was in the habit of dealing with the Company or any Group Undertaking with whom the Employee had contact or about
whom he became aware or informed in the course of employment. 
 Restricted Person: anyone employed or engaged by the
Company or any Group Undertaking at a manager level or above and with whom the Employee dealt in the 12 months before Termination in the course of employment. 
 Subsidiary Undertaking or Parent Undertaking: in relation to an Undertaking mean “subsidiary undertaking” and “parent undertaking” as defined in section 1162 of the Companies
Act 2006. 
 Termination: the termination of the Employee’s employment with the Company however caused. 

Undertaking: means “undertaking” as defined in section 1161 of the Companies Act 2006. 

 

	1.2	The headings in this agreement are inserted for convenience only and shall not affect its construction. 

 

	1.3	A reference to a particular law is a reference to it as it is in force for the time being taking account of any amendment, extension, or re-enactment and includes any
subordinate legislation for the time being in force made under it. 

  

	1.4	Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders. 

 

	1.5	Unless the context otherwise requires, words in the singular include the plural and in the plural include the singular. 

  
 2 

	2.	TERM OF APPOINTMENT 

 

	2.1	The Appointment shall commence on the Commencement Date and shall continue, subject to the remaining terms of this agreement, until terminated by either party giving
the other not less than 6 months’ prior notice in writing. 

  

	2.2	No employment with a previous employer counts towards the Employee’s period of continuous employment with the Company. 

 

	2.3	The Employee consents to the transfer of his employment under this agreement to an Associated Employer at any time during the Appointment. 

 

	3.	EMPLOYEE WARRANTIES 

  

	3.1	The Employee represents and warrants to the Company that, by entering into this agreement or performing any of his obligations under it, he will not be in breach of any
court order or any express or implied terms of any contract or other obligation binding on him. 

  

	3.2	The Employee warrants that he is entitled to work in the United Kingdom without any additional approvals and will notify the Company immediately if he ceases to be so
entitled during the Appointment. 

  

	3.3	The Employee warrants that he is not subject to any restrictions which prevent him from holding office as a director. 

 

	4.	DUTIES 

  

	4.1	The Employee shall serve the Company as Chief Executive Officer and Chief Financial Officer or such other role as the Board considers appropriate.

  

	4.2	During the Appointment the Employee shall: 

  

	 	(a)	act as a director of the Company and carry out duties on behalf of any other Group Undertaking including, if so required by the Board, acting as an officer or
consultant of any such Group Undertaking; 

  

	 	(b)	comply with the articles of association (as amended from time to time) of any Group Undertaking of which he is a director; 

 

	 	(c)	abide by any statutory, fiduciary or common-law duties any Group Undertaking of which he is a director; 

 

	 	(d)	not do anything that would cause him to be disqualified from acting as a director; 

  
 3 

	 	(e)	comply with the Company’s and any Parent Undertaking’s anti-corruption and bribery policy and related procedures; 

 

	 	(f)	unless prevented by Incapacity, devote the whole of his time, attention and abilities to the business of the Company and any Group Undertaking of which he is an officer
or consultant; 

  

	 	(g)	faithfully and diligently exercise such powers and perform such duties as may from time to time be assigned to him by the Board together with such person or persons as
the Board may appoint to act jointly with him; 

  

	 	(h)	comply with all reasonable and lawful directions given to him by the Board; 

 

	 	(i)	promptly make such reports to Board in connection with the affairs of any Group Undertaking on such matters and at such times as are reasonably required;

  

	 	(j)	use his best endeavours to promote, protect, develop and extend the business of the Group; and 

 

	 	(k)	comply with any electronic communication systems policy that the Company may issue from time to time. 

 

	4.3	The Employee shall comply with any rules, policies and procedures relating to the Company employees in effect from time to time. Such rules, policies and procedures do
not form part of this agreement and the Company may amend them at any time. To the extent that there is any conflict between the terms of this agreement and such rules, policies and procedures, this agreement shall prevail. 

 

	4.4	All documents, manuals, hardware and software provided for the Employee’s use by the Company, and any data or documents (including copies) produced, maintained or
stored on the Company’s computer systems or other electronic equipment (including mobile phones), remain the property of the Company. 

  

	5.	PLACE OF WORK 

 

	5.1	The Employee’s normal places of work are at the Company’s offices in London or such other place within the United Kingdom which the Board may reasonably
require for the proper performance and exercise of his duties. 

  

	5.2	The Employee agrees to travel on any Group Undertaking’s business (both within the United Kingdom or abroad) as may be required for the proper performance of his
duties under the Appointment. 

  

	6.	HOURS OF WORK 

 

	6.1	The Employee’s normal working hours shall be 9 a.m. to 6 p.m. on Mondays to Fridays and such additional hours as are necessary for the proper performance of his
duties. The Employee acknowledges that he shall not receive further remuneration in respect of such additional hours. 

  
 4 

	6.2	The parties each agree that the nature of the Employee’s position is such that his working time cannot be measured and, accordingly, that the Appointment falls
within the scope of regulation 20 of the Working Time Regulations 1998. 

  

	7.	SALARY 

  

	7.1	The Employee shall be paid an initial salary of £200,000 per annum (inclusive of any fees due to the Employee by any Group Undertaking as an officer of any
Group Undertaking). 

  

	7.2	The Employee’s salary shall accrue from day to day and be payable monthly in arrears on or before the last day of each month directly into the Employee’s bank
or building society. 

  

	7.3	The Employee’s salary shall be reviewed by the Board annually, the first such review to take place in January 2014. The Company is under no obligation to award an
increase following a salary review. There will be no review of the salary after notice has been given by either party to terminate the Appointment. 

  

	7.4	The Company may deduct from the salary, or any other sums owed to the Employee, any money owed to any Group Undertaking by the Employee. 

 

	8.	EXPENSES 

  

	8.1	The Company shall reimburse (or procure the reimbursement of) all reasonable expenses wholly, properly and necessarily incurred by the Employee in the course of the
Appointment, subject to production of VAT receipts or other appropriate evidence of payment. 

  

	8.2	During the Appointment, the Company shall pay for reasonable costs in renting a flat in London (the cost of which is subject to prior approval by the Board) and
reasonable related housing costs, subject to production of VAT receipts or other appropriate evidence of payment as applicable. 

  

	8.3	During the Appointment, the Company shall reimburse the Employee for reasonable costs incurred by Employee for personal tax advice with respect to remuneration earned
by Employee during the Appointment, subject to production of VAT receipts or other appropriate evidence of payment. 

  
 5 

	8.4	The Employee shall abide by the Company’s policies on expenses as applicable to Company employees from time to time. 

 

	9.	RELOCATION EXPENSES 

  

	9.1	Subject to production of VAT receipts or other appropriate evidence of payment, the Company shall reimburse the Employee up to a maximum of £30,000 in respect of
costs incurred by him in relocating to accommodation within a reasonable daily travelling distance of the Company’s offices in London (Relocation Expenses). 

 

	9.2	The first £8,000 of the Relocation Expenses shall be paid without deduction of income tax and National Insurance contributions to the extent that the Relocation
Expenses qualify for the exemption set out in Chapter 7 of Part 4 of the Income Tax (Earnings and Pensions) Act 2003 and Schedule 3 of Part 8 of the Social Security (Contribution) Regulations 2001 respectively. 

 

	9.3	The Employee shall indemnify the Company on a continuing basis in relation to any income tax and National Insurance contributions (except employers’ National
Insurance contributions) which may be incurred by the Company if the exemption referred to in clause 9.2 does not apply. 

  

	10.	BONUS 

  

	10.1	The Board may in its absolute discretion pay the Employee a bonus of such amount, at such intervals and subject to such conditions as the Board may in its absolute
discretion determine from time to time. 

  

	10.2	Any bonus payment to the Employee shall be purely discretionary and shall not form part of the Employee’s contractual remuneration under this agreement. If the
Company makes a bonus payment to the Employee, it shall not be obliged to make subsequent bonus payments. 

  

	10.3	Any bonus payments shall not be pensionable. 

  

	11.	BENEFITS 

  

	11.1	The Employee shall be entitled to participate in any Company’s insurance benefits offered from time to time to other senior executives of the Company, subject to:

  

	 	(a)	the terms of the Company’s schemes, as amended from time to time; 

  

	 	(b)	the rules or insurance policies of the relevant insurance providers, as amended from time to time; and 

  
 6 

	 	(c)	the Employee satisfying the normal underwriting requirements of the relevant insurance providers and the premiums being at a rate which the Company considers
reasonable. 

  

	11.2	The Company in its sole and absolute discretion reserves the right to discontinue, vary or amend any such insurance schemes (including the level of the Employee’s
cover) at any time on reasonable notice to the Employee. 

  

	11.3	If any insurance provider refuses for any reason to provide any insurance benefit to the Employee, the Company shall not be liable to provide to the Employee any
replacement benefit of the same or similar kind or to pay any compensation in lieu of such benefit. 

  

	12.	HOLIDAYS 

  

	12.1	The Employee shall be entitled to 60 business days’ paid holiday in each holiday year together with the usual public holidays in England. The Company’s
holiday year runs between 1 January and 31 December. If the Appointment commences or terminates part way through a holiday year, the Employee’s entitlement during that holiday year shall be calculated on a pro-rata basis.

  

	12.2	To the extent reasonably possible, the Employee shall take holiday at such time or times that result in minimal disruption to the business of the Group. The Employee
shall not without the written consent of the Board carry forward any accrued but untaken holiday entitlement to a subsequent holiday year. 

  

	12.3	The Employee shall have no entitlement to any payment in lieu of accrued but untaken holiday except on termination of the Appointment. Subject to clause 12.4 the amount
of such payment in lieu shall be 1/260th of the Employee’s salary for each untaken day of the entitlement under clause 12.1 for the holiday year in which termination takes place and any untaken days carried forward from the preceding holiday
year. 

  

	12.4	If the Company has terminated or would be entitled to terminate the Appointment under clause 19 or if the Employee has terminated the Appointment in breach of this
agreement any payment due under clause 12.3 shall be limited to the Employee’s statutory entitlement under the Working Time Regulations 1998 and any paid holidays (including paid public holidays) taken shall be deemed first to have been taken
in satisfaction of that statutory entitlement. 

  

	12.5	If on termination of the Appointment the Employee has taken in excess of his accrued holiday entitlement, the Company shall be entitled to recover from the Employee by
way of deduction from any payments due to the Employee or otherwise one day’s pay calculated at 1/260th of the Employee’s salary for each excess day. 

  
 7 

	12.6	If either party has served notice to terminate the Appointment, the Board may require the Employee to take any accrued but unused holiday entitlement during the notice
period. Any accrued but unused holiday entitlement shall be deemed to be taken during any period of Garden Leave under clause 20. 

  

	12.7	During any continuous period of absence due to Incapacity of one month or more the Employee shall not accrue holiday under this contract and the Employee’s
entitlement under clause 12.1 for the holiday year in which such absence takes place shall be reduced pro rata save that it shall not fall below the Employee’s entitlement under the Working Time Regulations 1998. 

 

	13.	INCAPACITY 

  

	13.1	Subject to the Employee’s compliance with this agreement and the Company’s sickness absence procedures (as amended from time to time), the Employee shall
continue to receive his full salary and contractual benefits during any period of absence due to Incapacity for up to an aggregate of 13 weeks in any 52-week period. Such payment shall be inclusive of any statutory sick pay due in accordance with
applicable legislation. 

  

	13.2	The Employee agrees to consent to medical examinations (at the Company’s expense) by a doctor nominated by the Company should the Company so require. The Employee
agrees that any report produced in connection with any such examination may be disclosed to the Company and the Company may discuss the contents of the report with the relevant doctor. 

 

	13.3	If the Incapacity is or appears to be occasioned by actionable negligence, nuisance or breach of any statutory duty on the part of a third party in respect of which
damages are or may be recoverable, the Employee shall immediately notify the Board of that fact and of any claim, compromise, settlement or judgment made or awarded in connection with it and all relevant particulars that the Board may reasonably
require. The Employee shall if required by the Board, refund to the Company that part of any damages or compensation recovered by him relating to the loss of earnings for the period of the Incapacity as the Board may reasonably determine less any
costs borne by him in connection with the recovery of such damages or compensation, provided that the amount to be refunded shall not exceed the total amount paid to the Employee by the Company in respect of the period of Incapacity.

  

	13.4	The rights of the Company to terminate the Appointment under the terms of this Agreement apply even when such termination would or might cause the Employee to forfeit
any entitlement to sick pay, permanent health insurance or other benefits. 

  
 8 

	14.	OUTSIDE INTERESTS 

  

	14.1	Subject to clause 14.2, during the Appointment the Employee shall not, except as a representative of the Company or with the prior written approval of the Board,
whether paid or unpaid, be directly or indirectly engaged, concerned or have any financial interest in any Capacity in any other business, trade, profession or occupation (or the setting up of any business, trade, profession or occupation).

  

	14.2	Notwithstanding clause 14.1, the Employee may hold an investment by way of shares or other securities of not more than 5% of the total issued share capital of any
company (whether or not it is listed or dealt in on a recognised stock exchange) where such company does not carry on a business similar to or competitive with any business for the time being carried on by any Group Undertaking.

  

	14.3	Notwithstanding clauses 4.2(f) and 14.1, the Employee may serve on corporate, industry, civic, religious or charitable boards or committees so long as such activities
do not violate the terms of any other clause of this agreement, present a conflict of interest, or interfere in any material respect with the performance of the Employee’s duties and responsibilities pursuant to this agreement; provided,
further that any service by the Employee on a board or committee of a for-profit entity shall be subject to the prior written approval of the Board. 

  

	15.	CONFIDENTIAL INFORMATION 

 

	15.1	The Employee acknowledges that in the course of the Appointment he will have access to Confidential Information. The Employee has therefore agreed to accept the
restrictions in this clause 15. 

  

	15.2	The Employee shall not (except in the proper course of his duties), either during the Appointment or at any time after its termination (however arising), use or
disclose to any person, company or other organisation whatsoever (and shall use his best endeavours to prevent the publication or disclosure of) any Confidential Information. This shall not apply to: 

 

	 	(a)	any use or disclosure authorised by the Board or required by law; 

  

	 	(b)	any information which is already in, or comes into, the public domain other than through the Employee’s unauthorised disclosure; or 

 

	 	(c)	any protected disclosure within the meaning of section 43A of the Employment Rights Act 1996. 

 

	16.	INTELLECTUAL PROPERTY 

  

	16.1	 The Employee shall give the Company full written details of all Inventions and of all works embodying Intellectual Property Rights made wholly or
partially by him at any 

  
 9 

	 	
time during the course of the Appointment. The Employee acknowledges that all Intellectual Property Rights subsisting (or which may in the future subsist) in all such Inventions and works shall
automatically, on creation, vest in the Company absolutely. To the extent that they do not vest automatically, the Employee holds them on trust for the Company. The Employee agrees promptly to execute all documents and do all acts as may, in the
opinion of the Company, be necessary to give effect to this clause 16.1. 

  

	16.2	The Employee hereby irrevocably waives all moral rights under the Copyright, Designs and Patents Act 1988 (and all similar rights in other jurisdictions) which he has
or will have in any existing or future works referred to in clause 16.1. 

  

	16.3	The Employee irrevocably appoints the Company to be his attorney in his name and on his behalf to execute documents, use the Employee’s name and do all things
which are necessary or desirable for the Company to obtain for itself or its nominee the full benefit of this clause. A certificate in writing, signed by any director or the secretary of the Company, that any instrument or act falls within the
authority conferred by this agreement shall be conclusive evidence that such is the case so far as any third party is concerned. 

  

	17.	CEASING TO BE A DIRECTOR 

 

	17.1	Except with the prior approval of the Board, or as provided in the articles of association of any Group Undertaking of which he is a director, the Employee shall not
resign as a director of any Group Undertaking. 

  

	17.2	If during the Appointment the Employee ceases to be a director of any Group Undertaking (otherwise than by reason of his death, resignation or disqualification pursuant
to the articles of association of the relevant Group Undertaking, as amended from time to time, or by statute or court order) the Appointment shall continue with the Employee as an employee only and the terms of this agreement (other than those
relating to the holding of the office of director) shall continue in full force and effect. The Employee shall have no claims in respect of such cessation of office. 

 

	18.	PAYMENT IN LIEU OF NOTICE 

 

	18.1	Notwithstanding clause 2, the Company may, in its sole and absolute discretion, terminate the Appointment at any time and with immediate effect by notifying the
Employee that the Company is exercising its right under this clause 18.1 and that it will make within 28 days a payment in lieu of notice (Payment in Lieu) to the Employee. This Payment in Lieu will be equal to the basic salary (as at the date of
termination) which the Employee would have been entitled to receive under this agreement during the notice period referred to at clause 2 (or, if notice has already been given, during the remainder of the notice period) less income tax and National
Insurance contributions. For the avoidance of doubt, the Payment in Lieu shall not include any element in relation to: 

  

	 	(a)	any bonus or commission payments that might otherwise have been due during the period for which the Payment in Lieu is made; 

  
 10 

	 	(b)	any payment in respect of benefits which the Employee would have been entitled to receive during the period for which the Payment in Lieu is made; and

  

	 	(c)	any payment in respect of any holiday entitlement that would have accrued during the period for which the Payment in Lieu is made. 

 

	18.2	The Company may pay any sums due under clause 18.1 in equal monthly instalments until the date on which the notice period referred to at clause 2 would have expired if
notice had been given. 

  

	18.3	The Employee shall have no right to receive a Payment in Lieu unless the Company has exercised its discretion in clause 18.1. Nothing in this clause 18 shall prevent
the Company from terminating the Appointment in breach. 

  

	18.4	Notwithstanding clause 18.1 the Employee shall not be entitled to any Payment in Lieu if the Company would otherwise have been entitled to terminate the Appointment
without notice in accordance with clause 19. In that case the Company shall also be entitled to recover from the Employee any Payment in Lieu (or instalments thereof) already made. 

 

	19.	TERMINATION WITHOUT NOTICE 

 

	19.1	The Company may also terminate the Appointment with immediate effect without notice and with no liability to make any further payment to the Employee (other than in
respect of amounts accrued due at the date of termination) if the Employee: 

  

	 	(a)	is in breach of the Company’s or any Parent Company’s anti-corruption and bribery policy and related procedures; 

 

	 	(b)	is guilty of any gross misconduct affecting the business of any Group Undertaking; 

 

	 	(c)	commits any serious or repeated breach or non-observance of any of the provisions of this agreement or refuses or neglects to comply with any reasonable and lawful
directions of the Board; 

  

	 	(d)	is, in the reasonable opinion of the Board, negligent and incompetent in the performance of his duties; 

 

	 	(e)	is declared bankrupt or makes any arrangement with or for the benefit of his creditors or has a county court administration order made against him under the County
Court Act 1984; 

  
 11 

	 	(f)	is convicted of any criminal offence (other than an offence under any road traffic legislation in the United Kingdom or elsewhere for which a fine or non-custodial
penalty is imposed); 

  

	 	(g)	becomes of unsound mind (which includes lacking capacity under the Mental Capacity Act 2005), or a patient under any statute relating to mental health;

  

	 	(h)	ceases to be eligible to work in the United Kingdom; 

  

	 	(i)	is guilty of any fraud or dishonesty or acts in any manner which in the reasonable opinion of the Board brings or is likely to bring the Employee or any Group
Undertaking into disrepute or is materially adverse to the interests of any Group Undertaking; 

  

	 	(j)	is guilty of a serious breach of any rules issued by the Company from time to time regarding its electronic communications systems; or 

 

	 	(k)	is unable by reason of Incapacity to perform his duties under this agreement for an aggregate period of 13 weeks in any 52-week period. 

 

	19.2	The rights of the Company under clause 19.1 are without prejudice to any other rights that it might have at law to terminate the Appointment or to accept any breach of
this agreement by the Employee as having brought the agreement to an end. Any delay by the Company in exercising its rights to terminate shall not constitute a waiver thereof. 

 

	20.	GARDEN LEAVE 

  

	20.1	Following service of notice to terminate the Appointment by either party, or if the Employee purports to terminate the Appointment in breach of contract, the Board may
by written notice place the Employee on Garden Leave for the whole or part of the remainder of the Appointment. 

  

	20.2	During any period of Garden Leave: 

  

	 	(a)	the Company shall be under no obligation to provide any work to the Employee and may revoke any powers the Employee holds on behalf of the Company or any Group
Undertaking; 

  

	 	(b)	the Company may require the Employee to carry out alternative duties or to only perform such specific duties as are expressly assigned to the Employee, at such location
(including the Employee’s home) as the Company may decide; 

  

	 	(c)	the Employee shall continue to receive his basic salary and all contractual benefits in the usual way and subject to the terms of any benefit arrangement;

  
 12 

	 	(d)	the Employee shall remain an employee of the Company and bound by the terms of this agreement (including any implied duties of good faith and fidelity);

  

	 	(e)	the Company may exclude the Employee from any premises of the Company or any Group Undertaking; and 

 

	 	(f)	the Company may require the Employee not to contact or deal with (or attempt to contact or deal with) any officer, employee, consultant, client, customer, supplier,
agent, distributor, shareholder, adviser or other business contact of the Company or any Group Undertaking. 

  

	21.	OBLIGATIONS ON TERMINATION 

 

	21.1	On termination of the Appointment (however arising) or, if earlier, at the start of a period of Garden Leave, the Employee shall: 

 

	 	(a)	resign immediately without compensation from any office or trusteeship that he holds in or on behalf of any Group Undertaking; 

 

	 	(b)	subject to clause 21.2, immediately deliver to the Company all documents, books, materials, records, correspondence, papers and information (on whatever media and
wherever located) relating to the business or affairs of any Group Undertaking or its business contacts, any keys, credit card and any other property of any Group Undertaking, which is in his possession or under his control;

  

	 	(c)	irretrievably delete any information relating to the business of any Group Undertaking stored on any magnetic or optical disk or memory and all matter derived from such
sources which is in his possession or under his control outside the Company’s premises; and 

  

	 	(d)	provide a signed statement that he has complied fully with his obligations under this clause 21.1 together with such reasonable evidence of compliance as the Company
may request. 

  

	21.2	Where the Employee has been placed on Garden Leave he shall not be required by clause 21.1 to return until the end of the Garden Leave period any property provided to
him as a contractual benefit for use during the Appointment. 

  

	21.3	The Employee hereby irrevocably appoints the Company to be his attorney to execute and do any such instrument or thing and generally to use his name for the purpose of
giving the Company or its nominee the full benefit of clause 21.1(a). 

  

	22.	POST-TERMINATION RESTRICTIONS 

 

	22.1	 In order to protect the confidential information, trade secrets and business connections of the Company and each Group Undertaking to which he has
access as a 

  
 13 

	 	
result of the Appointment, the Employee covenants with the Company (for itself and as trustee and agent for each Group Undertaking) that he shall not for 12 months after Termination:

  

	 	(a)	solicit or endeavour to entice away from the Company or any Group Undertaking the business or custom of a Restricted Customer with a view to providing goods or services
to that Restricted Customer in competition with any Restricted Business; 

  

	 	(b)	in the course of any business concern which is in competition with any Restricted Business, offer to employ or engage or otherwise endeavour to entice away from the
Company or any Group Undertaking any Restricted Person; 

  

	 	(c)	in the course of any business concern which is in competition with any Restricted Business, employ or engage or otherwise facilitate the employment or engagement of any
Restricted Person, whether or not such person would be in breach of contract as a result of such employment or engagement; 

  

	 	(d)	be involved in any Capacity with any business concern which is (or intends to be) in competition with any Restricted Business; 

 

	 	(e)	be involved with the provision of goods or services to (or otherwise have any business dealings with) any Restricted Customer in the course of any business concern
which is in competition with any Restricted Business, or 

 at any time after Termination, represent himself as
connected with the Company or any Group Undertaking in any Capacity, other than as a former employee, or use any registered business names or trading names associated with the Company or any Group Undertaking. 

 

	22.2	None of the restrictions in clause 22.1 shall prevent the Employee from: 

  

	 	(a)	holding an investment by way of shares or other securities of not more than 5% of the total issued share capital of any company, whether or not it is listed or dealt in
on a recognised stock exchange; 

  

	 	(b)	being engaged or concerned in any business concern insofar as the Employee’s duties or work shall relate solely to geographical areas where the business concern is
not in competition with any Restricted Business; or 

  

	 	(c)	being engaged or concerned in any business concern, provided that the Employee’s duties or work shall relate solely to services or activities of a kind with which
the Employee was not concerned to a material extent in the 12 months before Termination. 

  

	22.3	The restrictions imposed on the Employee by this clause 22 apply to him acting: 

 

	 	(a)	directly or indirectly; and 

  
 14 

	 	(b)	on his own behalf or on behalf of, or in conjunction with, any firm, company or person. 

 

	22.4	The period for which the restriction in clause 22.1 apply shall be reduced by any period that the Employee spends on Garden Leave immediately before Termination.

  

	22.5	If the Employee receives an offer to be involved in a business concern in any Capacity during the Appointment, or before the expiry of the last of the covenants in this
clause 22, the Employee shall give the person making the offer a copy of this clause 22. 

  

	22.6	The Company and the Employee entered into the restrictions in this clause 22 having been separately legally advised. 

 

	22.7	Each of the restrictions in this clause 22 is intended to be separate and severable. If any of the restrictions shall be held to be void but would be valid if part of
their wording were deleted, such restriction shall apply with such deletion as may be necessary to make it valid or effective. 

  

	22.8	If the Employee’s employment is transferred to any firm, company, person or entity other than a Group Undertaking (the “New Employer”) pursuant to the
Transfer of Undertakings (Protection of Employment) Regulations 2006, the Employee will, if required, enter into an agreement with the New Employer containing post-termination restrictions corresponding to those restrictions in this clause 22,
protecting the confidential information, trade secrets and business connections of the New Employer. 

  

	22.9	The Employee will, at the request and expense of the Company, enter into a separate agreement with any Group Undertaking in which he agrees to be bound by restrictions
corresponding to those restrictions in this clause 22 (or such of those restrictions as the Company deems appropriate) in relation to that Group Undertaking. 

 

	23.	DISCIPLINARY AND GRIEVANCE PROCEDURES 

 

	23.1	The Employee is subject to the Company’s disciplinary and grievance procedures. These procedures do not form part of the Employee’s contract of employment.

  

	23.2	If the Employee wants to raise a grievance, he may apply in writing to the Board in accordance with the Company’s grievance procedure. 

 

	23.3	If the Employee wishes to appeal against a disciplinary decision he may apply in writing to Board in accordance with the Company’s disciplinary procedure.

  
 15 

	23.4	The Board may suspend the Employee from any or all of his duties for a period of up to 21 days during any period in which the Company is investigating any disciplinary
matter involving the Employee or while any disciplinary procedure against the Employee is outstanding. 

  

	23.5	During any period of suspension: 

  

	 	(a)	the Employee shall continue to receive his basic salary and all contractual benefits in the usual way and subject to the terms of any benefit arrangement;

  

	 	(b)	the Employee shall remain an employee of the Company and bound by the terms of this agreement; 

 

	 	(c)	the Board may exclude the Employee from his place of work or any other premises of the Company or any Group Undertaking; and 

 

	 	(d)	the Board may require the Employee not to contact or deal with (or attempt to contact or deal with) any officer, employee, consultant, client, customer, supplier,
agent, distributor, shareholder, adviser or other business contact of the Company or any Group Undertaking. 

  

	24.	PENSIONS 

  

	24.1	A contracting-out certificate is not in force in respect of the Appointment. 

 

	25.	DATA PROTECTION 

  

	25.1	The Employee consents to any Group Undertaking processing data relating to the Employee for legal, personnel, administrative and management purposes and in particular
to the processing of any sensitive personal data (as defined in the Data Protection Act 1998) relating to the Employee, including, as appropriate: 

  

	 	(a)	information about the Employee’s physical or mental health or condition in order to monitor sick leave and take decisions as to the Employee’s fitness for
work; 

  

	 	(b)	the Employee’s racial or ethnic origin or religious or similar information in order to monitor compliance with equal opportunities legislation; and

  

	 	(c)	information relating to any criminal proceedings in which the Employee has been involved for insurance purposes and in order to comply with legal requirements and
obligations to third parties. 

  

	25.2	The Company may make such information available to any Group Undertaking, those who provide products or services to any Group Undertaking (such as advisers and payroll
administrators), regulatory authorities, potential or future employers, governmental or quasi-governmental organisations and potential purchasers of the Company or the business in which the Employee works. 

  
 16 

	25.3	The Employee consents to the transfer of such information to any Group Undertaking and any Group Undertaking’s business contacts outside the European Economic Area
in order to further their business interests even where the country or territory in question does not maintain adequate data protection standards. 

  

	26.	COLLECTIVE AGREEMENTS 

 There is no collective agreement which directly affects the Appointment. 
  

	27.	RECONSTRUCTION AND AMALGAMATION 

If the Appointment is terminated at any time by reason of any reconstruction or amalgamation of the Company or any Group Undertaking,
whether by winding up or otherwise, and the Employee is offered employment with any concern or undertaking involved in or resulting from the reconstruction or amalgamation on terms which (considered in their entirety) are no less favourable to any
material extent than the terms of this agreement, the Employee shall have no claim against the Company or any such undertaking arising out of or connected with the termination. 

 

	28.	NOTICES 

  

	28.1	A notice given to a party under this agreement shall be in writing in the English language and signed by or on behalf of the party giving it. It shall be delivered by
hand or sent to the party at the address or fax number given in this agreement or as otherwise notified in writing to the other party. 

  

	28.2	Any such notice shall be deemed to have been received: 

  

	 	(a)	if delivered by hand, at the time the notice is left at the address or given to the addressee; 

 

	 	(b)	in the case of pre-paid first class UK post or other next working day delivery service, at 9.00 am on the second business day after posting or at the time recorded by
the delivery service; 

  

	 	(c)	in the case of pre-paid airmail, 9.00 am on the fifth Business Day after posting or at the time recorded by the delivery service; or 

 

	 	(d)	in the case of fax, at the time of transmission. 

  

	28.3	A notice shall have effect from the earlier of its actual or deemed receipt by the addressee. For the purpose of calculating deemed receipt: 

 

	 	(a)	all references to time are to local time in the place of deemed receipt; and 

 

	 	(b)	if deemed receipt would occur on a Saturday or Sunday or a public holiday when banks are not open for business, deemed receipt is at 9.00 am on the next business day.

  
 17 

	28.4	A notice required to be given under this agreement shall not be validly given if sent by e-mail. 

 

	28.5	This clause does not apply to the service of any proceedings or other documents in any legal action. 

 

	29.	ENTIRE AGREEMENT 

  

	29.1	This agreement constitutes the whole agreement between the parties (and in the case of the Company, as agent for any Group Companies) and supersedes all previous
discussions, correspondence, negotiations, arrangements, understandings and agreements between them. 

  

	29.2	Each party acknowledges that in entering into this agreement it has not relied on and shall have no remedy in respect of any Pre-Contractual Statement.

  

	29.3	Each party agrees that its only liability in respect of those representations and warranties that are set out in this agreement (whether made innocently or negligently)
shall be for breach of contract. 

  

	29.4	Nothing in this agreement shall limit or exclude any liability for fraud. 

 

	30.	VARIATION 

No variation or agreed termination of this agreement shall be effective unless it is in writing and signed by the parties (or their
authorised representatives). 
  

	31.	COUNTERPARTS 

 This agreement may be executed in any number of counterparts, each of which, when executed, shall be an original, and all the counterparts together shall constitute one and the same instrument.

  

	32.	THIRD PARTY RIGHTS 

 No person other than a party to this agreement may enforce any of its terms. 
  

	33.	GOVERNING LAW AND JURISDICTION 

 

	33.1	This agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall
be governed by and construed in accordance with the law of England and Wales. 

  
 18 

	33.2	The parties irrevocably agree that the courts of England and Wales shall have non-exclusive jurisdiction to settle any dispute or claim that arises out of or in
connection with this agreement or its subject matter or formation (including non-contractual disputes or claims). 

 This document
has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it. 

  
 19 

							
	Executed as a deed by KNOT Offshore Partners UK LLC acting by Andrew Beveridge, Chairman and director and Richard Beyer, a director.	  		  	 /s/ Andrew Beveridge
 Director
  
 /s/ Richard Beyer
 Director
	  	
				
	Signed as a deed by Arild Vik in the presence of:	  		  	 /s/ Arild Vik
 Arild Vik
	  	
				
	 /s/ Øystein Emberland
 Øystein Emberland
 Rocsabøbeitet 12

5538 Haugesund
 Norway
	  		  		  	

  
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}]]