Document:

EX-4.13

 Exhibit 4.13 

Execution version 
 Dated 9 April 2013

 FOURTH SUPPLEMENTAL AGREEMENT 

between 
 KNOT SHUTTLE TANKERS
17 AS 
 as Borrower 
 and

 EKSPORTFINANS ASA 
 as
lender for Loan A 
 and 

KNUTSEN NYK OFFSHORE TANKERS AS 

as Parent Guarantor 
 and 

KNOT OFFSHORE PARTNERS LP 

KNOT SHUTTLE TANKERS AS 
 as
Guarantors 
 and 
 DNB BANK
ASA 
 NORDEA BANK NORGE ASA 

as lenders for Loan B and the Revolving Credit Facility, 

Bookrunners and Mandated Lead Arrangers 

and 
 NORDEA BANK NORGE ASA

 as Agent 
  

 
 Relating to a
USD 120,000,000.- 
 Loan and Guarantee Facility Agreement dated 11 February 2011 

as amended by a first supplemental agreement dated 6 June 2011, 

a second supplemental agreement dated 20 September 2012 

and as amended and restated by a third supplemental agreement dated 22 February 2013 

in respect of the Borrower’s vessel 

“BODIL KNUTSEN” 
  

 
  

 
 

 

 THIS FOURTH SUPPLEMENTAL AGREEMENT (the “Supplemental Agreement”) is made the 9th day of April 2013 between: 
  

	(1)	KNOT SHUTTLE TANKERS 17 AS, (organisation no 998 942 969), Smedasundet 40, P.O.Box 2017, 5504 Haugesund, Norway (hereinafter called the “Borrower”), 

 

	(2)	EKSPORTFINANS ASA, P.O.Box 1601 Vika, 0119 Oslo, Norway (organisation no 816 521 432) as Loan A lender (“Eksportfinans”), 

 

	(3)	KNUTSEN NYK OFFSHORE TANKERS AS, P.O Box 2017, 5504 Haugesund, Norway, (organisation no 995 221 713) as parent guarantor (the “Parent Guarantor”), 

 

	(4)	KNOT OFFSHORE PARTNERS LP, Trust Company Complex, Ajeltake Island, Ajeltake Road, Majuro, Marshall Islands MH96960as new guarantor, 

 

	(5)	KNOT SHUTTLE TANKERS AS, P.O Box 2017, 5504 Haugesund, Norway, (organisation no 998 942 829) as new guarantor (together with KNOT Offshore Partners LP, the “Guarantors”), 

 

	(6)	DNB BANK ASA, Lars Hillesgt. 30, P.O.Box 7100, 5020 Bergen, Norway, (organisation no 984 851 006) as lender under Loan B and the Revolving Credit Facility, 

 

	(7)	NORDEA BANK NORGE ASA, P.O.Box 1166 Sentrum, 0107 Oslo, Norway (organisation no 911 044 110) as lender under Loan B and the Revolving Credit Facility (together with DNB Bank ASA, the “Commercial
Lenders”) and as bookrunners and mandated lead arrangers, and 

  

	(8)	NORDEA BANK NORGE ASA, P.O.Box 1166 Sentrum, 0107 Oslo, Norway (organisation no 911 044 110) as agent for Eksportfinans and the Commercial Lenders (the “Agent”). 

(Eksportfinans and the Commercial Lenders are hereinafter collectively referred to as the “Lenders”) 

WHEREAS 
  

	A.	Eksportfinans has granted the Borrower a loan in the amount of USD 56,000,000.- (“Loan A”) and the Commercial Lenders have granted the Borrower a loan in the amount of USD 64,000,000.-
(“Loan B”) pursuant to a loan and guarantee facility agreement dated 11 February 2011 as amended by a first supplemental agreement dated 6 June 2011, a second supplemental agreement dated 20 September 2012 as amended
and restated by a third supplemental agreement dated 22 February 2013 entered into between the Borrower, Eksportfinans, the Parent Guarantor, the Commercial Lenders and the Agent (the “Facility Agreement”). The outstanding
principal amount under the Facility Agreement is at the date hereof USD 102,133,334.-. 

  

	B.	The Borrower has requested that the Lenders’ consent to the Borrower becoming wholly owned, directly or indirectly, by KNOT Offshore Partners LP a Marshall Islands limited partnership organised under the laws of
the Marshall Islands which is to be listed on the New York Stock Exchange and which will effect such acquisition by acquiring via its wholly-owned subsidiary KNOT Offshore Partners UK LLC all of the shares in KNOT Shuttle Tankers AS from the Parent
Guarantor in connection with the initial public offering of common units representing limited partner interests in KNOT Offshore Partners LP (the “IPO”). 

  
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	C.	Under the proposed terms of the IPO, the proceeds of the IPO are to be applied in part in providing funds directly or indirectly to the Borrower by way of one or more intercompany loans or capital contributions from
KNOT Offshore Partners LP to the Borrower to enable it to: 

  

	 	(i)	repay Loan A in the amount of USD 6,666,667.-.; and 

  

	 	(ii)	repay Loan B in the amount of USD 45,466,667.-. 

  

	D.	Under the proposed terms of the IPO, the Borrower has requested the Lender’s consent to the following: 

  

	 	(i)	the transfer of ownership of KNOT Shuttle Tankers AS from the Parent Guarantor to KNOT Offshore Partners LP as contemplated by Whereas B; 

 

	 	(ii)	the entering into of the IPO described in Whereas B and the transactions entered into, or to be entered into, by the Borrower, the Guarantors and the Parent Guarantor in connection therewith; 

 

	 	(iii)	the release of Knutsen NYK Offshore Tankers AS as Parent Guarantor under the Facility Agreement and it being replaced by KNOT Offshore Partners LP and KNOT Shuttle Tankers AS as new guarantors under the Facility
Agreement, subject to the prepayments set out in Whereas C; 

  

	 	(iv)	granting by the Commercial Lenders of a new revolving credit facility in the maximum amount of USD 20,000,000.- to be incorporated in the Facility Agreement, subject to the prepayments set out in Whereas C;

  

	 	(v)	certain amendments to the set of financial covenants in the Facility Agreement. 

  

	E.	The Lenders have approved the Borrower’s request subject to the execution and delivery of this Supplemental Agreement, the Amended and Restated Facility Agreement and the amended Security Documents (where relevant)
and that the terms and condition of this Supplemental Agreement are complied with. 

  

	F.	This Supplemental Agreement shall together with the Amended and Restated Facility Agreement be construed as being in all respect supplemental to the Facility Agreement. 

NOW IT IS HEREBY AGREED AS FOLLOWS: 
  

	 	1.	DEFINITIONS 

  

	1.01	In this Supplemental Agreement, unless the context otherwise requires, terms defined in the Facility Agreement shall bear the same meaning when used herein. In addition, the Facility Agreement means the Facility
Agreement as supplemented and amended by this Supplemental Agreement. 

  
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	1.02	In this Supplemental Agreement, the following words and expressions shall have the meaning set opposite them below: 

“Amended and Restated Facility Agreement” 

means the Facility Agreement as amended and restated by this Supplemental Agreement in the form set out in Schedule 1 (Form of Amended and
Restated Facility Agreement). 
 “Effective Date” 

means the date when IPO proceeds have been received by KNOT Offshore Partners LP and the conditions listed in Clause 3.01 and 3.03 have been
fulfilled. 
  

	2.	REPRESENTATION AND WARRANTIES 

  

	2.01	The Borrower represents and warrants to the Agent (on behalf of the Lenders) that: 

  

	 	(a)	The Borrower is duly formed and is validly existing in good standing under the laws of the Kingdom of Norway, and has full power to carry on its business as it is now being conducted and has complied with all statutory
and other requirements relative to such business. 

  

	 	(b)	KNOT Offshore Partners LP is duly formed and is validly existing in good standing under the laws of the Marshall Islands, and has full power to carry on its business as it is now being conducted and has complied with
all statutory and other requirements relative to such business. 

  

	 	(c)	KNOT Shuttle Tankers AS is duly formed and is validly existing in good standing under the laws of the Kingdom of Norway, and has full power to carry on its business as it is now being conducted and has complied with all
statutory and other requirements relative to such business. 

  

	 	(d)	All corporate actions required on the part of the Borrower and the Guarantors and their respective directors and officers have been taken in order to authorise this Supplemental Agreement, the Amended and Restated
Facility Agreement and the Security Documents (as relevant), and the execution and performance thereof, in accordance with the laws of Norway and the Marshall Islands (respectively) and with their own constitution, and this Supplemental Agreement,
the Amended and Restated Facility Agreement and the Security Documents have been validly executed, and are binding upon the Borrower and the Guarantors and enforceable against them in accordance with their terms. 

 

	 	(e)	All approvals required from any government, tax, monetary or other authority to enable the Borrower make this Supplemental Agreement and to borrow and repay the Loans and to pay interest thereon without deduction or
withholding of any taxes or other money and to execute the Security Documents to which it is a party, have been obtained and are in full force and effect. 

  

	 	(f)	The making of this Supplemental Agreement and the execution of the Security Documents by the Borrower and the Guarantors will not infringe any other agreement to which each of the Borrower and the Guarantors is a party.

  

	 	(g)	Neither of the Borrower and the Guarantors is at the time of signing of this Supplemental Agreement in default under any other agreement to which it is a party nor is it a subject of any actual, pending or threatened
legal proceedings either to which has or may have a material adverse effect on its financial condition. 

  
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	 	(h)	The Vessel will upon the Effective Date be: 

  

	 	(i)	in the absolute and (save as the Mortgage) unencumbered ownership of the Borrower. 

  

	 	(ii)	registered in the name of the Borrower in the Approved Registry. 

  

	 	(iii)	operationally seaworthy and in every way fit for service and classed with the highest class of a classification society acceptable to the Agent. 

 

	 	(iv)	free of all requirements and overdue recommendations affecting class of said classification society. 

  

	 	(v)	insured in accordance with the provisions of Clause 18.5 of the Facility Agreement. 

  

	3.	CONDITIONS 

  

	3.01	The obligations of the Lenders to accept as from the Effective Date i.a. (i) KNOT Offshore Partners LP and KNOT Shuttle Tankers AS as new Guarantors, (ii) the establishment of a new revolving credit
facility in the maximum amount of USD 20,000,000.- (subject to IPO Prepayment – Loan A and IPO Prepayment – Loan B) and (iii) certain amendments to the financial covenants in the Facility Agreement shall be subject to the condition
that the Agent (on behalf of the Lenders) has received the following documents in form satisfactory to the Agent and its legal advisors (to the extent not satisfied as a condition precedent to the drawing under the Facility Agreement):

  

	 	(a)	This Supplemental Agreement duly executed by the parties hereto, and 

  

	 	(b)	The Certificate of incorporation or similar in respect of the Borrower and each of the Guarantors, and 

  

	 	(c)	The articles of association in respect of the Borrower and each of the Guarantors, and 

  

	 	(d)	The Partnership Agreement for KNOT Offshore Partners LP, and 

  

	 	(e)	A certificate of good standing for KNOT Offshore Partners LP, and 

  

	 	(f)	Resolutions from the board of directors of the Borrower in respect of this Supplemental Agreement and the Security Documents (if required), and 

 

	 	(g)	Resolutions from the board of directors of each of the Guarantors in respect of the Guarantees and this Supplemental Agreement, and 

  

	 	(h)	A copy of the certificate of incorporation and constitutional documents of KNOT Offshore Partners UK LLC and KNOT Offshore Partners GP LLC, and 

  
 5/10 

	 	(i)	A duly executed Compliance Certificate, and 

  

	 	(j)	Closing of the IPO, and capitalisation of KNOT Offshore Partners LP, has been completed on terms satisfactory to the Lenders, and 

  

	 	(k)	Satisfactory evidence that KNOT Offshore Partners LP is listed at the New York Stock Exchange, and 

  

	 	(l)	Satisfactory evidence that KNOT Offshore Partners LP is the direct or indirect owner of 100 % of the shares and voting rights in the Borrower; and 

 

	 	(m)	The Security Documents listed in the Facility Agreement having been executed and registered (as applicable) with first priority in favour of the Agent, including but not limited to the following Security Documents:

  

	 	(i)	the Mortgage; 

  

	 	(ii)	the Deed of Covenants; 

  

	 	(iii)	the GIEK Guarantee (for Loan A); 

  

	 	(iv)	the Guarantees, and 

  

	 	(n)	Evidence that:- 

  

	 	(i)	the Vessel is registered in the name of the Borrower in the Approved Registry, 

  

	 	(ii)	the Vessel is in the absolute and registered ownership of the Borrower, 

  

	 	(iii)	the Mortgage is registered against the Vessel in favour of the Agent with first priority, and 

  

	 	(iv)	the Vessel complies with the ISM Code requirement set forth in Clause 18.8 of the Facility Agreement, and 

  

	 	(o)	Copy of the addendum to the GIEK Guarantee; and 

  

	 	(p)	Such “Know Your Customer”- documents as the Lenders require for each of the Obligors; and 

  

	 	(q)	Satisfactory evidence that all fees in accordance with Clause 3.03 below has been paid, and 

  

	 	(r)	Favourable legal opinions as the Agent may require from the jurisdictions involved. 

  

	3.02	The following conditions shall be fulfilled within 5 Business Days after the Effective Date: 

  

	 	(a)	Satisfactory evidence that Loan A has been prepaid with USD 6,666,667.- in accordance with Clause 7.6 in the Facility Agreement; and 

 

	 	(b)	Satisfactory evidence that Loan B has been prepaid with USD 45,466,667.- in accordance with Clause 7.7 in the Facility Agreement. 

  
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	3.03	Further, the obligation of the Lenders to accept the requests listed in Whereas D shall be subject to that the Borrower shall pay to the Agent (on behalf of the Lenders) on demand (i) all costs, expenses and
disbursements (including but not limited to legal fees and printing, publication and travelling expenses) incurred by the Lenders in negotiation, preparation and completion of this Supplemental Agreement and the Security Documents and the
maintenance, protection and enforcement of any of their rights thereunder and (ii) a non refundable amendment fee equal to USD 20,000.- to each Lender and payable to Agent on the Effective Date for further distribution to the Lenders.

  

	4.	TRANSFER OF GUARANTORS AND OWNERSHIP 

  

	4.01	With effect on and from the Effective Date and subject as aforesaid each of the parties to this Supplemental Agreement agree that:- 

 

	 	(a)	Each of KNOT Offshore Partners LP and KNOT Shuttle Tankers AS will execute new irrevocable, unconditional and on-demand guarantees in favour of the Agent on behalf of the Lenders and the Swap Banks and shall accede to
the Facility Agreement as Obligors. 

  

	4.02	With effect on and from the IPO Prepayment – Loan A and the IPO Prepayment – Loan B and subject as aforesaid each of the parties to this Supplemental Agreement agree that:- 

 

	 	(a)	Knutsen NYK Offshore Tankers AS shall be released as Parent Guarantor and Obligor under the Facility Agreement. 

  

	5.	AMENDMENTS TO THE FACILITY AGREEMENT 

  

	5.01	With effect on and from the Effective Date the Facility Agreement shall be amended and restated as set out in Schedule 1 (Form of Amended and Restated Facility Agreement). 

 

	5.02	By construing references therein to “this Facility Agreement”, “this Agreement”, “herein”, “hereunder” and like terms, they shall be construed as if the same referred to
the Facility Agreement as amended hereby. 

  

	5.03	Subject only to the modifications set out in this Supplemental Agreement, the Facility Agreement shall remain in full force and effect and binding upon the Lenders, the Guarantors, the Parent Guarantor and the
Borrower. 

  

	5.04	In the Security Documents, any reference to the Facility Agreement shall mean the Facility Agreement as supplemented and amended by this Supplemental Agreement. For the avoidance of doubt, each party agree that
the Security Documents shall remain in full force and effect and continue to secure the Loans notwithstanding the terms of this Supplemental Agreement. 

  

	6.	APPLICABLE LAW 

  

	6.01	This Supplemental Agreement shall be governed by, and construed in accordance with Norwegian law. The Borrower, the Parent Guarantor, the Guarantors and the Lenders accept Oslo tingrett as venue.

  
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 IN WITNESS WHEREOF the parties hereto have caused this Supplemental Agreement to be duly executed the day and the
year above written. 
 EXECUTION PAGE 

	
	
	The Borrower:
	
	 KNOT SHUTTLE TANKERS 17 AS

	
	 /s/ BJØRN SANDE URTEGAARD

	
	 Bjørn Sande Urtegaard

	 Attorney-in-fact

	 Name in block letters

	
	The Parent Guarantor:
	
	 KNUTSEN NYK OFFSHORE TANKERS AS

	
	 /s/ BJØRN SANDE URTEGAARD

	
	 Bjørn Sande Urtegaard

	 Attorney-in-fact

	 Name in block letters

	
	The Guarantor:
	
	 KNOT OFFSHORE PARTNERS LP

	
	 /s/ ARILD VIK

	
	Arild Vik, Chief Executive Officer and Chief Financial Officer
	 Name in block letters

	
	The Guarantor:
	
	 KNOT SHUTTLE TANKERS AS

	
	 /s/ BJØRN SANDE URTEGAARD

	
	 Bjørn Sande Urtegaard

	 Attorney-in-fact

	 Name in block letters

  
 8/10 

	
	
	The Lender for Loan A:
	
	 EKSPORTFINANS ASA

	
	 /s/ ERIK HOFFMANN-DAHL

	
	Erik Hoffmann-Dahl
	 Attorney-in-Fact

	Name in block letters

 As lender for Loan B and the Revolving Credit Facility, Bookrunner and Mandated Lead Arranger 

 

	
	 DNB BANK ASA

	
	 /s/ ERIK HOFFMANN-DAHL

	
	Erik Hoffmann-Dahl
	 Attorney-in-Fact

 As lender for Loan B and the Revolving Credit Facility, Bookrunner, Mandated Lead Arranger and Agent

  

	
	 NORDEA BANK NORGE ASA

	
	 /s/ ERIK HOFFMANN-DAHL

	
	Erik Hoffmann-Dahl
	 Attorney-in-Fact

	Name in block letters

  
 9/10 

 SCHEDULE 1 

Form of Amended and Restated Facility Agreement 

(To form part of this Supplemental Agreement as if set out in full herein) 

  
 10/10 

 FORM OF 

AMENDED AND RESTATED 

USD 120,000,000.- LOAN AND GUARANTEE 

FACILITY AGREEMENT 
 between

 KNOT SHUTTLE TANKERS 17 AS 

as Borrower 
 and 

EKSPORTFINANS ASA 
 as
lender for Loan A 
 and 

KNUTSEN NYK OFFSHORE TANKERS AS 

as Parent Guarantor 
 and

 KNOT OFFSHORE PARTNERS LP 

KNOT SHUTTLE TANKERS AS 
 as
Guarantors 
 and 
 DNB BANK
ASA 
 NORDEA BANK NORGE ASA 

as lenders for Loan B and the Revolving Credit Facility, Bookrunners and Mandated Lead Arrangers 

and 
 NORDEA BANK NORGE ASA

 as Agent 
  

 
 Relating to a
USD 120,000,000.- 
 Loan and Guarantee 

Facility Agreement 
  

 
  

 
 

 

 TABLE OF CONTENTS 

 

							
	CLAUSE	  	PAGE	 
	1.	  	DEFINITIONS AND INTERPRETATION	  	 	5	  
			
	2.	  	THE COMMITMENT AND NATURE OF OBLIGATIONS	  	 	19	  
			
	3.	  	PURPOSE	  	 	19	  
			
	4.	  	CONDITIONS PRECEDENT	  	 	20	  
			
	5.	  	DRAWDOWN	  	 	20	  
			
	6.	  	REPAYMENT	  	 	22	  
			
	7.	  	PREPAYMENT	  	 	23	  
			
	8.	  	INTEREST PERIODS	  	 	25	  
			
	9.	  	INTEREST	  	 	26	  
			
	10.	  	PAYMENTS	  	 	28	  
			
	11.	  	SECURITY	  	 	29	  
			
	12.	  	TAXES	  	 	31	  
			
	13.	  	MARKET DISRUPTION	  	 	31	  
			
	14.	  	INCREASED COSTS	  	 	32	  
			
	15.	  	ILLEGALITY	  	 	34	  
			
	16.	  	GUARANTEE AND INDEMNITY	  	 	34	  
			
	17.	  	PAYMENT AND INDEMNITY	  	 	38	  
			
	18.	  	REPRESENTATIONS AND WARRANTIES	  	 	39	  
			
	19.	  	UNDERTAKINGS	  	 	42	  
			
	20.	  	DEFAULT	  	 	48	  
			
	21.	  	THE AGENT	  	 	54	  
			
	22.	  	FEES	  	 	57	  
			
	23.	  	EXPENSES	  	 	58	  
			
	24.	  	INDEMNITIES	  	 	58	  
			
	25.	  	CALCULATIONS	  	 	59	  
			
	26.	  	AMENDMENTS AND WAIVERS	  	 	59	  
			
	27.	  	CHANGES TO THE PARTIES	  	 	60	  
			
	28.	  	PRO RATA SHARING	  	 	61	  
			
	29.	  	SEVERABILITY	  	 	62	  
			
	30.	  	NOTICES	  	 	62	  
			
	31.	  	JURISDICTION	  	 	63	  
			
	32.	  	GOVERNING LAW	  	 	64	  

  
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	 SCHEDULES
	  	 	  	PAGE
			
	(1)	  	Lenders and commitments	  	65
			
	(2)	  	Conditions precedent documents	  	66
			
	(3)	  	Form of Drawdown Notice	  	67
			
	(4)	  	Form of Renewal Notice	  	69
			
	(5)	  	Form of Compliance Certificate	  	70

  
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 THIS AGREEMENT (the “Agreement”) is made the 11 February 2011 as amended by first
supplemental agreement dated 6 June 2011, a second supplemental dated 20 September 2012,as amended and restated by a third supplemental agreement dated 22 February 2013 and as amended and restated by a fourth supplemental agreement
dated 9 April 2013 (the “Fourth Supplemental Agreement”) between: 
  

	(1)	KNOT SHUTTLE TANKERS 17 AS, P.O Box 2017, 5504 Haugesund, Norway, (organisation no 998 942 969) as borrower (the “Borrower”); 

 

	(2)	EKSPORTFINANS ASA, P.O.Box 1601 Vika, 0119 Oslo, Norway (organisation no 816 521 432) as Loan A lender (“Eksportfinans”); 

 

	(3)	KNUTSEN NYK OFFSHORE TANKERS AS, P.O Box 2017, 5504 Haugesund, Norway, (organisation no 995 221 713) as parent guarantor (the “Parent Guarantor”) 

 

	(4)	KNOT OFFSHORE PARTNERS LP, Trust Company Complex, Ajeltake Island, Ajeltake Road, Majuro, Marshall Islands MH96960, and 

KNOT SHUTTLE TANKERS AS P.O Box 2017, 5504 Haugesund, Norway, (organisation no 998 942 829) as guarantors (together the “
Guarantors”) 
  

	(5)	DNB BANK ASA, Lars Hillesgt. 30, P.O.Box 7100, 5020 Bergen, Norway, (organisation no 984 851 006) and 

NORDEA BANK NORGE ASA, P.O.Box 1166 Sentrum, 0107 Oslo, Norway (organisation no 911 044 110) as Loan B lenders and lenders under a
Revolving Credit Facility (together the “Commercial Lenders”) and as bookrunners and mandated lead arrangers 
  

	(6)	NORDEA BANK NORGE ASA, P.O.Box 1166 Sentrum, 0107 Oslo, Norway (organisation no 911 044 110) as agent for Eksportfinans and the Commercial Lenders (the “Agent”). 

This loan and guarantee facility agreement sets out the terms and conditions upon and subject to which 

 

	(i)	Eksportfinans will continue to make available to the Borrower a term loan in the amount of up to USD 46,666,667.- (to be reduced to USD 40,000,000.- subject to the IPO Prepayment – Loan A); 

 

	(ii)	the Commercial Lenders will continue to make available to the Borrower a term loan in the amount of up to USD 55,466,667.- (to be reduced to USD 10,000,000.- subject to the IPO Prepayment – Loan B).

  

	(iii)	the Commercial Lenders will make available to the Borrower a revolving credit facility in the maximum amount of up to USD 20,000,000.-. 

  
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 IT IS HEREBY AGREED as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	Definitions 

 In this Agreement and the preamble hereof; 

“Accounts” 
 means the Earnings Account
and the Retention Account. 
 “Approved Register” 

means the Isle of Man Ship Register, the Bahamian Ship Register or the Norwegian International Ship Register or a ship register to be approved by the Lenders.

 “Approved Shipbrokers” 
 means R.S.
Platou Shipbrokers A.S, Fearnleys, Lorentzen & Stemoco, Clarkson, Nordic Shipping and any other shipbroker(s) the Lenders may approve. 

“Availability Period” 
 means in respect
of; 
  

	(i)	Loan A the period from and including the date when all conditions precedent under this Agreement have been satisfied and until and including 1 March 2011; 

 

	(ii)	Loan B the period from and including the date when all conditions precedent under this Agreement have been satisfied and until and including 1 March 2011. 

 

	(iii)	in respect of the Revolving Credit Facility, a period up to and including the date falling one month prior to the Final Maturity Date - Revolving Credit Facility. 

“Book Equity” 
 means the book value of
equity as determined in accordance with NORGAAP. 
 “Break Costs” 

means 
  

	(i)	in respect of Loan A; 

 the aggregate of the Break Cost for Fixed Margin and LIBOR Break Cost.

  

	(ii)	in respect of Loan B; 

  
 5/74 

	 	(a)	the interest (excluding Margin Loan B) which a Commercial Lender should have received for the period from the date of receipt of all or any part of its participation in the Loan B to the last day of the current Interest
Period in respect of the Loan B, had the principal amount received been paid on the last day of that Interest Period; 

exceeds: 
  

	 	(b)	the amount which that Commercial Lender would be able to obtain by placing an amount equal to the principal amount received by it on deposit with a leading bank in the relevant interbank market for a period starting on
the Business Day following receipt or recovery and ending on the last day of the current Interest Period. 

  

	(iii)	in respect of the Revolving Credit Facility; 

  

	 	(a)	the interest (excluding Margin Revolving Credit Facility) which a Commercial Lender should have received for the period from the date of receipt of all or any part of its participation in the Revolving Credit Facility
to the last day of the current Interest Period in respect of the Revolving Credit Facility, had the principal amount received been paid on the last day of that Interest Period; 

exceeds: 
  

	 	(b)	the amount which that Commercial Lender would be able to obtain by placing an amount equal to the principal amount received by it on deposit with a leading bank in the relevant interbank market for a period starting on
the Business Day following receipt or recovery and ending on the last day of the current Interest Period. 

 “Break Cost for Fixed
Margin” 
 means the amount (if any) determined by Eksportfinans by which: 

 

	(a)	the net present value of the interest which Eksportfinans should have received by applying Base Rate 1 on the Loan A or part thereof for the period starting on the date of receipt of the Loan A or part thereof to (and
including) the last day of the Fixed Margin Period for the Loan A (such amount to be calculated to take into account all of the scheduled Repayment Dates of the Loan A and following the agreed repayment schedule of the Loan A, as if the Loan A had
been paid on all of the scheduled Repayment Dates to and including the last day of the Fixed Margin Period for the Loan A; 

 exceeds: 

 

	(b)	the net present value of the amount the Lender would be able to obtain by applying Base Rate 2 on the Loan A or a part thereof for the period starting on the date of receipt of the Loan A or a part thereof to (and
including) the last day of the Fixed Margin Period (such amount to be calculated to take into account all of the scheduled Repayment Dates of the Loan A or part thereof and following the agreed repayment schedule of the Loan A). 

For the purpose of this paragraph; “Base Rate 1” is (non disclosed)Eksportfinans’ internal base rate applied to loans with fixed margins
determined for the Fixed Margin Periods and/or New Fixed Margin Periods as of the start of the Fixed Margin Periods and/or New Fixed Margin Periods, 

  
 6/74 

 
respectively; and “Base Rate 2” is (non disclosed) Eksportfinans’ internal base rate applied to loans with fixed margins determined for the Fixed Margin Periods and/or New
Fixed Margin Periods, at the time of receipt of the prepaid Loan A. 
 “Bridge Loans” 

means (i) a loan in the amount of USD 10,000,000.- granted by Nordea Bank Norge ASA and DNB Bank ASA pursuant to a loan agreement dated
4 December 2007 (as amended) and (ii) a loan in the amount of USD 10,000,000.- granted by Nordea Bank Norge ASA and DNB Bank ASA pursuant to a loan agreement dated 10 September 2008 (as amended). 

“Builder” 
 means Daewoo
Shipbuilding & Marine Engineering Co. Ltd., Korea. 
 “Business Day” 

means a day upon which banks and foreign exchange markets are open for business of the nature required by this Agreement in Oslo, London and New York. 

“Charterer” 
 means Statoil ASA,
Forusbeen 50, 4035 Stavanger, Norway. 
 “Charterparty” 

means the time charterparty dated 7 October 2010 entered into between the Charterer and Knutsen Bøyelaster VI KS and novated to the Borrower by
Knutsen Bøyelaster VI KS by a novation agreement dated 18 February 2013 with a period of 60 months from the delivery date under the Charterparty at a net t/c-rate of USD 60,000.- per day. 

“Charterparty Assignment” 
 means a first
priority assignment of the Charterparty executed or to be executed by the Borrower in favour of the Agent (on behalf of the Finance Parties and the Swap Banks) as security for the Loans, in the terms and form as the Agent may require. 

“Commercial Lenders” 
 means DNB Bank ASA
and Nordea Bank Norge ASA. 
 “Commercial Loans” 

means together Loan B and the Revolving Credit Facility. 

“Commitment” 
 means, in relation to a
Lender, the amount set opposite its name in Schedule 1 to the extent not cancelled, reduced or transferred under this Agreement. 

  
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 “Compliance Certificate” 

means a certificate to be issued (and certified by CFO) by the Borrower and the Guarantors in respect of financial covenants, in the terms and form as set out
in Schedule 5 (Form of Compliance Certificate). 
 “Co-ordination Agreement” 

means a co-ordination agreement entered or to be entered into between the Lenders and the Borrower’s other financiers in respect of the Factoring
Agreement and the factoring agreements registered in favour of other financiers and earnings related to the Vessel and vessels (financed by the other financiers) in the terms and form as the Agent on behalf of the Lenders may require. 

“Deed of Covenants” 
 means a deed of
covenants collateral to the Mortgage executed by the Borrower in respect of the Mortgage (if relevant), in the terms and form as the Agent on behalf of the Lenders and the Swap Banks may require. 

“Default” 
 means an Event of Default or
an event which, with the giving of notice, lapse of time, or fulfilment of any other applicable condition (or any combination of the foregoing), might constitute an Event of Default. 

“Delivery Date” 
 means the date the
Vessel is actually delivered by the Builder to the Borrower under the Shipbuilding Contract, however not later than 1 March 2011. 

“Drawdown Date” 
 means the date on which
Loan A and Loan B are advanced to the Borrower and the date of disbursement of any Drawing under the Revolving Credit Facility in accordance with a Drawdown Notice. 

“Drawdown Notice” 
 means a request made
by the Borrower for the drawdown of Loan A, Loan B and the Revolving Credit Facility, substantially in the form set out in Schedule 3 (Form of Drawdown Notice). 

“Drawing” 
 means each borrowing by the
Borrower under the Revolving Credit Facility being made available under this Agreement, or the principal amount outstanding of any such borrowing from time to time. 

“Earnings Account” 
 means the
Borrower’s account no 60050494910 with the Agent. 

  
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 “EBITDA” 

means the consolidated earnings for the MLP Group in accordance with US GAAP for each period of twelve months ending on the last day of each quarter of
the financial year, before (i) any provision on account of taxation, (b) any interest, discount or other fees incurred or payable, by any member of the Group in respect of Financial Indebtedness, (c) any items treated as exceptional
or extraordinary items; and (d) any amount attributable to the amortisation of intangible assets and depreciation of tangible assets, provided that for the purposes of the calculation of EBITDA, the earnings of a newbuilding (following its
delivery and provided it has a committed third party charterparty of at least one year duration, at the date of reporting the covenant) shall be annualised (by reference to annual earnings of similar vessels acceptable to the Agent for this purpose)
until it has operated for a period of twelve months. 
 “Effective Date” 

means the effective date as defined in the Fourth Supplemental Agreement. 

“Event of Default” 
 means any of the
events specified as such in Clause 20 (Default). 
 “Factoring Agreement” 

means an agreement including a declaration of pledge entered or to be entered into between the Borrower and the Agent (on behalf of the Finance Parties and the
Swap Banks) whereby the Borrower pledges to the Agent on behalf of the Finance Parties all claims arising from the Borrower’s business operation as security for the Loans, in the terms and form as the Agent may require. 

“Final Maturity Date Loan A” 
 means the
date falling twelve (12) years after the Drawdown Date or the date as per Clause 6.3. 
 “Final Maturity Date Loan B” 

means the date falling five (5) years after the Drawdown Date. 

“Final Maturity Date Revolving Credit Facility” 

means 15 February 2016. 
 “Finance
Documents” 
 means this Agreement and the Security Documents. 

“Finance Parties” 
 means the Agent, the
Mandated Lead Arrangers, the Lenders and GIEK. 

  
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 “Financial Indebtedness” 

means any indebtedness for or in respect of: 
  

	(a)	moneys borrowed; 

  

	(b)	any amount raised by acceptance under any acceptance credit facility; 

  

	(c)	any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument; 

 

	(d)	the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with NORGAAP (as relevant), be treated as a finance or capital lease; 

 

	(e)	receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis); 

  

	(f)	any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing; 

 

	(g)	any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the market to market
value shall be taken into account); and 

  

	(h)	any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution. 

“Fixed Margin Period” 
 means a period of
36 months commencing on the Drawdown Date for Loan A from which the Margin Loan A shall be fixed. 
 “Free Liquidity” 

means the aggregate value of; 
  

	(i)	cash in hand and unencumbered bank deposits; and 

  

	(ii)	unencumbered liquid bonds and other debt instruments with an “A” - rating or better of Standard & Poors or Moody’s and liquid equities listed on any major stock exchange; and 

 

	(iii)	any other bond or debt instrument accepted by the Agent on instructions of the Lenders in writing. 

 PROVIDED,
HOWEVER, that the Free Liquidity shall not include undrawn amounts under this Agreement or any other loan agreement to which any of the Borrowers is a party. 

  
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 “General Partner” 

means KNOT Partners GP LLC, a company incorporated under the laws of the Marshall Islands and having its registered office at 2 Queen’s Cross, Aberdeen,
Aberdeenshire, AB15 4YB, United Kingdom being the general partner in KNOT Offshore Partners LP 
 “GIEK” 

means the Guarantee Institute for Export Credits (“Garanti-Instituttet for Eksportkreditt”), being the Norwegian central governmental agency
responsible for furnishing guarantees and insurance of export credits, having its registered address at Dronning Mauds gate 15, N-0250 Oslo, Norway. 

“GIEK Co-ordination Agreement” 
 means a
co-ordination agreement to be entered into between GIEK and the Lenders in relation to the Loans, providing, inter alia, for certain procedures and mechanisms coming into effect upon the occurrence of a Default under this Agreement. 

“GIEK Guarantee” 
 means guarantee policy
no.101612, as amended at any time, which, subject to its terms, will be issued by GIEK in favour of Eksportfinans to guarantee the payment obligations of the Borrower in relation to Loan A, limited, however, always to USD 56,000,000,- plus any
interest, fees and expenses under Loan A. 
 “Guarantees” 

means the irrevocable and unconditional on-demand guarantees issued by each of the Guarantors, as security for the Borrower’s obligations under this
Agreement. 
 “Guarantors” 
 means KNOT
Offshore Partners L.P and KNOT Shuttle Tankers AS. 
 “Insurances Assignment” 

means a first priority assignment executed or to be executed by the Borrower in favour of the Agent (on behalf of the Finance Parties and the Swap Banks),
whereby the Borrower assigns the benefits of all insurances taken out related to the Vessel as security for the Loans and exposure under any Swap Agreements, in the terms and form as the Agent may require. 

“Interest Bearing Debt” 
 means at the
date of calculation the aggregate of all interest bearing debt (hereunder but not limited to the Loan) and lease obligations which would in accordance with NORGAAP be included in total debt in a balance sheet. 

“Interest Payment Day” 
 means the last
day of each Interest Period. 

  
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 “Interest Period” 

means each period determined in accordance with Clause 8. 

“IPO Prepayment - Loan A” 
 means the
prepayment set out in Clause 7.6 subject to which the Borrower will prepay Loan A with USD 6,666,667.-. 
 “IPO Prepayment - Loan B”

 means the prepayment set out in Clause 7.7 subject to which the Borrower will prepay Loan B with USD 45,466,667.-. 

“KNOT Group” 
 means the Parent Guarantor
and its Subsidiaries. 
 “Lenders” 

means together Eksportfinans and the Commercial Lenders and Lender means any of them. 

“LIBOR” 
 means for any Interest Period:

  

	(a)	the rate per annum equal to the offered quotation for deposits in USD ascertained by the Agent to be the rate established by the British Bankers’ Association and appearing on the, Reuters LIBO 01 published or
reported by Reuters through its monitor service or any equivalent successor to such service at or about 11:00 a.m. (London time) on the applicable Quotation Date; or 

 

	(b)	if no such rate is available, the rate per annum at which the Agent in accordance with its normal practise is able to acquire USD for comparable borrowings for the relevant Interest Period in the London Interbank
Euro-currency Market at about 11:00 a.m. (London time) on the applicable Quotation Date, as conclusively certified by the Agent to the Borrower. 

“LIBOR Break Cost” 
 means the amount (if
any) determined by Eksportfinans by which: 
 the net present value of the interest excluding the Margin Loan A Eksportfinans would have
received for the period from the date of receipt of Loan A or part thereof to the last day of current Interest Period of Loan A had Loan A been paid on the last day of the Interest Period; 

exceeds: 
 the net present value
of the amount Eksportfinans would be able to obtain by placing an amount equal to the prepaid amount of Loan A with a leading bank in the London Interbank Market for the period starting on the Business Day following receipt or recovery and ending on
the last day of the current Interest Period. 

  
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 “Limited Partnership Agreement” 

means the partnership agreement dated 21 February 2013 in respect of the limited partnership KNOT Offshore Partners LP. 

“Loan A” 
 means an amount of up to but
not exceeding USD 46,666,667.-, or as reduced to USD 40,000,000.- subject to the IPO Prepayment - Loan A. 
 “Loan B” 

means an amount of up to but not exceeding USD 55,466,667.-, or as reduced to USD 10,000,000.- subject to the IPO Prepayment – Loan B. 

“Loans” 
 means, at any time, the
aggregate amount outstanding under Loan A, Loan B and the Revolving Credit Facility. 
 “Loan Period” 

means the period commencing on the date of this Agreement and ending on the day the Loans and all amounts outstanding under this Agreement have been
indefeasibly and in full repaid to the Lenders. 
 “Majority Lenders” 

means, at any time, Lenders whose participation in the outstanding Total Commitment aggregate at least 66 2/3 per cent at any relevant time. 

“Management Agreement” 
 means a
management agreement to be entered into between the Borrower and the Manager in a form and substance acceptable to the Agent. 
 “Manager”

 means KNOT Management AS, Smedasundet 40, P.O.Box 2017, 5504 Haugesund (enterprise no 996 124 916). 

“Manager Subordination Letter” 
 means a
letter from the Manager to the Agent in a form and substance required by the Lenders in which the Manager agrees, inter alia, to subordinate all claims against the Borrower to the Borrower’s obligation to repay the Loans and any other amount
owing to the Lenders under this Agreement. 

  
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 “Margin Loan A” 

means 0.60 % per annum, or after the expiry of the Fixed Margin Period as calculated in accordance with Clause 9.3 (b). 

“Margin Loan B” 
 means
3.00 % per annum. 
 “Margin Revolving Credit Facility” 

means 3.00 % per annum. 
 “Market
Value” 
 means with respect to the Vessel, the fair market value of the Vessel in USD determined by calculating the arithmetic mean of two
independent valuations of the Vessel obtained from two Approved Shipbrokers at the Borrower’s cost. Such valuations to be made – on charter free basis - with or without physical inspection of the Vessel (as the Agent may require), on the
basis of a sale for prompt delivery for cash at arm’s length on normal commercial terms as between a willing buyer and seller. 
 “Material
Adverse Effect” 
 means, in the reasonable opinion of any of the Lenders, a material adverse effect on: 

 

	(a)	the financial condition, assets or operations of any of the Obligors (on a consolidated basis); or 

  

	(b)	the ability of any Obligor to perform and comply with its obligations under the Finance Documents; or 

  

	(c)	the validity, legality or enforceability of the Finance Documents. 

 “MLP Group” 

means KNOT Offshore Partners LP and its Subsidiaries. 

“Mortgage” 
 a first priority Isle of Man
ship mortgage over the Vessel in the amount of USD 150,000,000.- executed by the Borrower in favour of the Agent (on behalf of the Finance Parties and the Swap Banks), substantially in the terms and form as the Agent on behalf of the Lenders
and the Swap Banks may require. 
 “New Fixed Margin” 

means related to Loan A the new margin as set out in Clause 9.4 (b). 

  
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 “New Fixed Margin Period” 

means related to Loan A the period set out in Clause 9.4 (b). 

“NOK” 
 means the lawful currency for the
time being of the Kingdom of Norway. 
 “NORGAAP” 

means the Norwegian accounting requirements, practices and regulations as set out in the Norwegian Accounting Act of 17 July 1998 no. 56, and as
recommended by the guidelines and standards from time to time issued by Norsk Regnskapsstiftelse, and the regulations and guidelines of the IFRS (if relevant) (all as amended or supplemented from time to time). 

“NYK” 
 means Nippon Yusen Kabushiki
Kaisha with registered address 3-2, Marunouchi 2 Chome, Chiyoda-Ku, Tokyo 100-0005, Japan. 
 “Obligors” 

means, collectively, the Borrower, the Parent Guarantor (until released pursuant to the IPO Prepayment – Loan A and the IPO Prepayment – Loan B),
KNOT Shuttle Tankers AS and KNOT Offshore Partners LP. 
 “Party” 

means a party to this Agreement. 
 “Pledge of
Accounts” 
 means a first priority pledge of the Accounts entered or to be entered into between the Borrower and the Agent (on behalf of the
Finance Parties and Swap Banks), in the terms and form as the Agent may require. 
 “Project Cost” 

means the contract price of the Vessel interest cost prior to Delivery, building supervision, spares and fees, all as evidenced to the satisfaction of the
Lenders estimated to USD 162,000,000.-. 
 “Quotation Date” 

means, in relation to any Interest Period, the Business Day on which quotations would ordinarily be given in the London Interbank Euro-currency Market for USD
deposits for delivery on the first day of that Interest Period. 

  
 15/74 

 “Renewal Notice” 

means a request made by the Borrower for renewal of the Loan B, substantially in the form set out in Schedule 4 (Form of Renewal Notice). 

“Repayment Date” 
 means a date for
repayment of an instalment as determined according to Clause 6.1 and 6.2 (Repayment). 
 “Retention Account” 

means the Borrower’s account no 60050494929 with the Agent. 

“Revolving Credit Facility” 
 means the
revolving credit facility made available under Clause 2.1 (c) (Revolving Credit Facility), the total amount of which shall be limited to USD 20,000,000.-. 

“Security Documents” 
 means the
documents referred to in Clause 11 (Security) and all or any documents having the effect of conferring security granted or entered into by the Obligors in favour of or with the Agent (on behalf of the Finance Parties) as security for the
Borrower’s obligation under the Finance Documents. 
 “Security Interest” 

means any mortgage, pledge, lien, charge (whether fixed or floating), assignment by way of security, finance lease, sale-and-repurchase or sale-and-leaseback arrangement, sale of receivables on a recourse basis or security interest or any other
agreement or arrangement having the effect of conferring security, except for liens arising solely by operation of law and/or in the ordinary course of business securing amounts not more than 30 days overdue. 

“Share Pledge” 
 a first priority pledge
over all of the shares in the Borrower executed by KNOT Shuttle Tankers AS in favour of the Agent (on behalf of the Finance Parties and the Swap Banks), substantially in the terms and form as the Agent on behalf of the Lenders and the Swap Banks may
require. 
 “Shipbuilding Contract” 

means the shipbuilding contract dated 12 September 2007 as amended by an amendment dated 20 March 2009 between the Builder and the Borrower in
respect of the Vessel. 
 “Sponsor” 

means Knutsen NYK Offshore Tankers AS, P.O Box 2017, 5504 Haugesund, Norway, (organisation no 995 221 713). 

  
 16/74 

 “Subsidiary” 

means an entity of which a person has direct or indirect control or owns directly or indirectly more than 50 per cent of the voting capital or similar
right of ownership, and control for this purpose means the power to direct the management and the policies of the entity whether through the ownership of voting capital, by contract or otherwise. 

“Swap Agreements” 
 means an agreement or
agreements to be entered into by any of the Swap Banks and the Borrower for the purpose of interest and currency swap transactions related to the Loans. 

“Swap Banks” 
 means DNB Bank ASA and
Nordea Bank Finland Plc or any of them. 
 “Swap Banks Subordination Statement” 

means a statement executed or to be executed by the Swap Banks in favour of the Finance Parties, subordinating the Swap Banks’ rights under the Security
Documents to be the Finance Parties’ rights. 
 “Tax on Overall Net Income” 

of a Lender shall be construed as a reference to tax imposed on that Lender by the jurisdiction under the laws of which it has been incorporated or in which it
is located on (i) the net income, profits or gains of that Lender world wide or (ii) such of the net income, profits or gains of that Lender as are considered to arise in or to relate to or are taxable in that jurisdiction. 

“Taxes” 
 includes any present or future
taxes, levies, duties, imposts, withholdings, deductions, fees or charges of any nature, together with interest thereon and penalties in respect thereof, and “tax” and “taxation” shall be construed accordingly. 

“Total Assets” 
 means the book value of
all assets owned which would in accordance with NORGAAP be included in the balance sheet. 
 “Total Commitment” 

means the aggregate of the Lenders’ Commitments. 

“Total Revolving Credit Facility Commitments” 

means the aggregate of the Commitments of the Commercial Lenders under the Revolving Credit Facility, being USD 20,000,000.- at the date of this Agreement.

  
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 “Total Loss” 

means any event which will entitle the Borrower to claim payment of the total insured value under the hull and machinery or the war risk insurance taken out
pursuant to Clause 19.5 (Insurances). 
 “Total Loss Date” 

means; 
  

	(a)	in the case of an actual loss of the Vessel, the date on which it occurred or, if that is unknown, the date when the Vessel was last heard of; 

 

	(b)	in the case of a constructive, compromised or agreed total loss of the Vessel, the earlier of: (a) the date on which a notice of the abandonment is given to the insurers; and (b) the date of any compromise,
arrangement or agreement made by or on behalf of the Borrower with the Vessel’s insurers pursuant to which the insurers agree to treat the Vessel as a total loss; and 

 

	(c)	in the case of any other type of total loss, on the date (or the most likely date) on which it appears to the Lenders that the event constituting the total loss occurred. 

“Transaction Documents” 
 means this
Agreement, the Security Documents, the Management Agreement, the Manager Subordination Letter, the Swap Agreements, the Charterparty, the GIEK Co-ordination Agreement, the Limited Partnership Agreement and the agreements or documents contemplated
herein or therein. 
 “TSSI” 
 means TS
Shipping Invest AS, business enterprise number 975 883 914, P.O.Box 2017, 5504 Haugesund, Norway. 
 “USD” 

means the lawful currency for the time being of the United States of America. 

“US GAAP” 
 means accounting principles
generally accepted in the United States of America. 
 “Vessel” 

means the 160,000 dwt Suezmax and named “Bodil Knutsen”. 

“Working Capital”  
 means at the date of
calculation the current assets less current liabilities on the basis of NORGAAP. Next year’s instalment and balloons on long term debt and capital lease payments not to be included in current liabilities. 

  
 18/74 

	1.2	Construction 

  

	(a)	The index to and the headings in this Agreement are for convenience only and are to be ignored in construing this Agreement. 

  

	(b)	Words importing the singular shall (unless the contrary intention appears) include the plural and vice versa. 

  

	(c)	A Clause or a Schedule respectively is a reference to a clause of or schedule to this Agreement. 

  

	(d)	A provision of law is a reference to that provision as amended or re-enacted, and to any regulations made by the appropriate authority pursuant to such law. 

 

	(e)	References to any document are to be construed as references to such documents as amended or supplemented from time to time, but without prejudice to the Borrower’s obligations to obtain necessary consent in
respect of such amendment or supplement. 

  

	2.	THE COMMITMENT AND NATURE OF OBLIGATIONS 

  

	2.1	Commitment 

 Subject to the terms of this Agreement: 

 

	(a)	Eksportfinans will continue to make available to the Borrower a term loan facility in the amount of up to USD 46,666,667.- (to be reduced to USD 40,000,000.- subject to the IPO Prepayment – Loan A) (Loan A),
and 

  

	(b)	the Commercial Lenders will continue to make available a term loan facility in the amount of up to USD 55,466,667.- (to be reduced to USD 10,000,000.- subject to the IPO Prepayment – Loan B) (Loan B).

  

	(c)	the Commercial Lenders will make available a revolving credit facility in the amount of up to USD 20,000,000.- (Revolving Credit Facility). 

 

	2.2	Nature of rights and obligations of the Lenders 

  

	(a)	The obligations of the Lenders under this Agreement are several. Failure of a Lender to carry out its obligations under this Agreement shall not relieve any other party hereto of any of its obligations under this
Agreement. No Lender shall be responsible for the obligations of any other Lender hereunder. 

  

	(b)	The rights of each Lender under this Agreement are separate and independent rights. 

  

	3.	PURPOSE 

  

	(a)	The purpose of Loan A and Loan B is to assist the Borrower in the financing of the Vessel and to repay the Bridge Loans. 

  
 19/74 

	(b)	The Revolving Credit Facility shall be used by the Obligors for general corporate purposes. 

  

	(c)	Without affecting the obligations of the Borrower in any way, no Finance Party is bound to monitor or verify the application of any amounts drawn under this Agreement. 

 

	4.	CONDITIONS PRECEDENT 

  

	4.1	Documentary conditions precedent 

 The obligations of each Lender to make the Loans available hereunder
shall be subject to the condition precedent that the Agent has notified the Borrower and the Lenders that it has received all the documents set out in Clause 3.01 in the Fourth Supplemental Agreement (Conditions) in a form, content and substance
satisfactory to the Agent. 
  

	4.2	Further conditions precedent 

 The obligation of each of the Lenders to participate in the Loans, is
subject to the further conditions precedent that on both the date of the Drawdown Notice and the Drawdown Date: 
  

	(a)	the representations and warranties in Clause 18 (Representations and warranties) deemed to be repeated on those dates are correct and not misleading and will be correct and not misleading immediately after
disbursement of the Loans is made with reference to the facts and circumstances then prevailing, unless otherwise informed to the Agent in writing and, if not permitted under this Agreement, waived by the Lenders prior to such dates; and

  

	(b)	no Default is outstanding or would result from the disbursement of the Loans. 

  

	4.3	The General Partner 

 The obligation of each of the Lenders to participate in the Loans, is subject to
the further conditions that the Lenders in all respect have approved the General Partner. 
  

	5.	DRAWDOWN 

  

	5.1	Drawdown Notice 

  

	(a)	The Borrower shall not later than 10:00 a.m. (London time) three Business Days prior to a requested Drawdown Date, or on such later date as may be agreed by the Lenders, serve to the Agent the Drawdown Notice which,
once received by the Agent, shall be irrevocable. 

  

	(b)	The Lenders shall upon confirmation from the Agent that the Agent has received a duly completed Drawdown Notice and subject to the terms and conditions of this Agreement, and provided that no Default has occurred and is
continuing or is threatened, make Loan A and Loan B to the Borrower through the Agent in one disbursement on the requested Drawdown Date. 

  
 20/74 

	(c)	The giving of the Drawdown Notice by the Borrower shall be deemed to constitute a representation and warranty by the Borrower that all the representations and warranties set forth in Clause 18 (Representations and
warranties) hereof are true and correct as of such date as if made on such date, that the conditions specified in Clause 4 (Conditions precedent) have been or will upon the Drawdown Date be fully performed, and that no Default has occurred and
is continuing or is threatened. 

  

	(d)	The Borrower shall only be entitled to serve a Drawdown Notice to the Agent during the Availability Period. 

  

	5.2	Drawings – Revolving Credit Facility 

 Subject to Clause 4 (Conditions Precedent), a Drawing
under this Agreement will be made available to the Borrower if: 
  

	 	(i)	not later than 10:00 hours (London time) three (3) Business Days prior to the requested Drawdown Date of such Drawing, the Agent has received a properly completed Drawdown Notice; 

 

	 	(ii)	the requested Drawdown Date is a Business Day during the Availability Period; and 

  

	 	(iii)	the sum of such Drawing is for (a) a minimum amount of USD 1,000,000 or integral multiples thereof, or (b) the balance of the undrawn portion of the Revolving Credit Facility Commitment (whichever may be
relevant) on the requested Drawdown Date. 

  

	 	(iv)	The IPO Prepayment – Loan A and the IPO Prepayment – Loan B have both occurred. 

  

	(b)	Subject to the terms of this Agreement, each Drawdown Notice shall be irrevocable and the Borrower shall be bound to accept each Drawing in accordance with each such Drawdown Notice. 

 

	(c)	During the Availability Period the Borrower may utilise the Revolving Credit Facility on a fully revolving basis so that any amount repaid during the Availability Period may be redrawn by the Borrower, but the aggregate
number of Drawings outstanding hereunder at any one time shall not exceed ten (10). 

  

	(d)	Any amount of the Revolving Credit Facility not drawn by the expiry of the Availability Period shall be cancelled forthwith. 

  

	5.3	Each Commercial Lender’s participation in Drawings under the Revolving Credit Facility 

 The amount
of a Commercial Lender’s participation in any Drawing will be the proportion of that Drawing which such Commitment as each Commercial Lender bears under the Revolving Credit Facility to the Total Revolving Credit Facility Commitments from time
to time. 

  
 21/74 

	6.	REPAYMENT 

  

	6.1	Repayment / Reduction Loan A 

 Without prejudice to Eksportfinans’ rights under this Agreement, the
Loan A shall be repaid by 20 consecutive semi-annual instalments each in the amount of USD 2,000,000.-, the first instalment falling due 26 August 2013. 
  

	6.2	Repayment / Reduction Loan B 

 Without prejudice to the Commercial Lenders’ rights under this
Agreement, the Loan B shall be repaid by (i) 6 consecutive semi-annual instalments each in the amount of USD 384,615.- the first instalment falling due 26 August 2013 and (ii) by one final instalment (balloon) corresponding to
the outstanding amount under Loan B falling due simultaneously as the 6th instalment referred to under (i) above. 
  

	6.3.	Non-refinancing of Loan B 

 In the event that the Loan B is not refinanced within five Business Days
prior to the Final Maturity Date Loan B, the Loan A becomes due and payable at the Final Maturity Date Loan B. 
  

	6.4	Repayment / Reduction Revolving Credit Facility 

 Each Drawing shall be repaid by the Borrower to the
Agent on behalf of the Commercial Lenders on the last day of its Interest Period unless the Borrower selects a further Interest Period for that Drawing. The Borrower unconditionally agrees and confirms that (i) (unless it has advised the Agent
in writing to the contrary upon not less than three (3) prior Business Days’ notice) it shall on the last day of an Interest Period be deemed to have automatically selected a further three (3) month Interest Period for the maturing
Drawing, and (ii) the Agent on behalf of the Commercial Lenders shall (without any further consent or approval from the Borrower) be entitled to rely upon the Borrower’s agreement and confirmation contained in this Clause 6.4, provided
that the Borrower shall not be permitted to select such further Interest Period if an Event of Default has occurred which is continuing. The Borrower shall on the Final Maturity Date Revolving Credit Facility repay to the Agent as agent for the
Commercial Lenders all Drawings then outstanding under this Agreement in full. 
  

	6.5	Final Maturity Date Loan A 

 On the Final Maturity Date Loan A the Borrower shall pay to the Agent on
behalf of Eksportfinans all amounts then still outstanding under Loan A. 
  

	6.6	Final Maturity Date Loan B 

 On the Final Maturity Date Loan B the Borrower shall pay to the Agent on
behalf of the Commercial Lenders all amounts then still outstanding under Loan B. 
  

	6.7	Final Maturity Date Revolving Credit Facility 

 On the Final Maturity Date Revolving Credit Facility the
Borrower shall pay to the Agent on behalf of the Commercial Lenders all amounts then still outstanding under the Revolving Credit Facility. 

  
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	6.8	Reduction of Guarantees 

 For each instalment paid pursuant to Clause 6.1 above, GIEK’s obligations
under the GIEK Guarantee shall be reduced accordingly subject always to the provisions of the GIEK Guarantee. 
  

	7.	PREPAYMENT 

  

	7.1	Voluntary prepayment and cancellation 

  

	(a)	The Borrower may, subject to a handling fee of USD 7,500.- (for Loan A payable to Eksportfinans) from and including the Business Day falling two (2) years after the Drawdown Date for the Loans, by giving not
less than twenty (20) Business Days prior written notice to the Agent, prepay the Loans in whole or in part on any Business Day subject to Break Costs, if any in an amount being a minimum of USD 10,000,000.- and an integral multiple of
USD 10,000,000.- in each case. 

  

	(b)	The Borrower may, by giving not less than 3 Business Days prior written notice to the Agent without penalty, cancel the whole or any undrawn part of the Total Commitment, but if in part, in an amount being a minimum of
USD 10,000,000 and an integral multiple of USD 10,000,000 in each case. Any such cancellation shall reduce each Lender’s Commitment on a pro rata basis. 

 

	(c)	The Borrower may (without penalty or premium), by giving not less than 3 Business Days prior written notice to the Agent, cancel any undrawn portion of the Revolving Credit Facility in an amount equal to the unutilised
commitment. 

  

	7.2	Additional right of prepayment 

 If: - 

 

	(a)	the Borrower is required to pay to a Lender any additional amounts under Clause 12 (Taxes); or 

  

	(b)	the Borrower is required to pay to a Lender any amount under Clause 14 (Increased costs); 

 then, without
prejudice to the obligations of the Borrower under those Clauses, the Borrower may, subject to Clause 7.4 (Miscellaneous provisions) and Clause 24.2 (Other indemnities) whilst the circumstances continue, serve a notice of prepayment and
cancellation on that Lender through the Agent. On the date falling five Business Days after the date of service of the notice: - 
  

	(a)	the Borrower shall prepay that Lenders’ participation in the Loans; and 

  

	(b)	that Lenders’ undrawn participation in the Commitment (if any) shall be cancelled. 

  
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	7.3	Mandatory prepayment due to a sale or Total Loss 

 Upon the sale (after the Lenders’ written
consent) of the Vessel or a Total Loss of the Vessel, the Loans shall, upon payment of the sales proceeds or the insurance money (within 90 days from the Total Loss Date), be repaid in full. 

 

	7.4	Mandatory prepayment – Market Value 

 If the Market Value falls below 100% or 125% (as the case may
be according to Clause 19.19) of the Loans at any time, the Borrower shall, unless otherwise agreed with the Agent (on behalf of the Lenders) within 30 days after being notified in writing by the Agent of such non-compliance, either: 

 

	a)	prepay the Loans or a part of the Facility (as the case may be); or 

  

	b)	provide the Lenders with such additional security, in form and substance satisfactory to the Majority Lenders (it being agreed that cash collateral comprised of USD is satisfactory and that it shall be valued at par),

 required to restore the aforesaid ratio. 
  

	7.5	Mandatory prepayments due to Clause 9.4 (b) and (c)

 If a situation described in Clause 9.4
(b) or 9.4 (c) occurs, the Loans shall be prepaid in full. 
  

	7.6	Mandatory prepayment – Loan A 

 Loan A shall be prepaid with USD 6,666,667.- within five
(5) Business Days after the Effective Date. 
  

	7.7	Mandatory prepayment – Loan B 

 Loan B shall be prepaid with USD 45,466,667.- within five
(5) Business Days after the Effective Date. 
  

	7.8	Miscellaneous provisions 

  

	(a)	Any notice of prepayment under this Agreement is irrevocable and shall specify the date on which the prepayment is to become effective and the amount to be prepaid. The Agent shall notify the Lenders promptly of receipt
and contents of any such notice. 

  

	(b)	All prepayments under this Agreement shall be made together with accrued interest on the amount prepaid and any amounts due in respect of such prepayment under Clause 24.2 (Other indemnities) including Break Costs.

  

	(c)	An amount prepaid pursuant to this Clause 7 may not be drawn again. 

  

	(d)	Any amount prepaid shall be applied as payment of the instalments in inverse order of maturity and pro rata between Loan A, Loan B and the Revolving Credit Facility. 

  
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	8.	INTEREST PERIODS 

  

	8.1	Duration and selection Loan A 

 Each Interest Period in respect of the Loan A shall be for a period of
six (6) months. 
  

	8.2	Duration and selection Loan B 

  

	(a)	The Borrower shall select the first Interest Period for Loan B in the Drawdown Notice for Loan B, and the first Interest Period for Loan B shall commence on its Drawdown Date. 

 

	(b)	The Borrower shall, by serving the Renewal Notice to the Agent not later than 10:00 a.m. (London time) five Business Days before the beginning of each Interest Period, specify the duration of that Interest Period. The
Renewal Notice shall constitute a representation and warranty to the effect that, on the date of that notice, the representations and warranties in Clause 18 remain true and correct and that no Default has occurred and is continuing or is
threatening. 

  

	(c)	Subject to the following provisions of this Clause 8.2, each Interest Period shall be for a period of three or six months, or such other period acceptable to the Commercial Lenders. 

 

	(d)	If the Borrower fails to select an Interest Period in accordance with paragraph (a) above, that Interest Period will, subject to the other provisions of this Clause 8, be six (6) months.

  

	(e)	If the Borrower selects an Interest Period of more than six (6) months (after the Commercial Lenders’ consent) interest accruing during such period shall be paid every six (6) months in arrears.

  

	8.3	Duration and selection Revolving Credit Facility 

 The Borrower shall select the Interest Period for each
Drawing in each relevant Drawdown Notice for the Revolving Credit Facility, and the Interest Period shall commence on the Drawdown Date of each such Drawing. Each Interest Period shall be for a period of three (3) or six (6) months, or
such other period acceptable to the Commercial Lenders. 
  

	8.4	Non-Business Days 

 If an Interest Period would end on a day
which is not a Business Day, that Interest Period shall instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not). 

 

	8.5	No overrunning 

 If an Interest Period for the Loans at any time would otherwise overrun a Repayment
Date, it shall be shortened so that it ends on the Repayment Date for a portion of the Loans corresponding to the amount of the Loans to be repaid on that Repayment Date. 

  
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	8.6	Notification 

 The Agent shall notify the Lenders of the duration of each Interest Period promptly after
ascertaining its duration. 
  

	9.	INTEREST 

  

	9.1	Payment of interest – Loan A 

  

	(a)	The Borrower shall pay accrued interest on Loan A on the last day of each Interest Period in respect of Loan A. 

  

	(b)	The rate of interest on Loan A for each Interest Period is the percentage rate per annum which is the aggregate of the applicable: 

  

	 	(i)	The Margin Loan A or the New Fixed Margin as applicable; and 

  

	 	(ii)	LIBOR. 

  

	9.2	Payment of interest – Loan B 

  

	(a)	The Borrower shall pay accrued interest on Loan B on the last day of each Interest Period in respect of Loan B. 

  

	(b)	The rate of interest on Loan B is the rate per annum determined by the Agent to be the aggregate of: 

  

	 	(i)	The Margin Loan B; and 

  

	 	(ii)	LIBOR. 

  

	9.3	Payment of interest – Revolving Credit Facility 

  

	(a)	The Borrower shall pay accrued interest on the Revolving Credit Facility on the last day of each Interest Period in respect of the Revolving Credit Facility. 

 

	(b)	The rate of interest on the Revolving Credit Facility is the rate per annum determined by the Agent to be the aggregate of: 

  

	 	(i)	The Margin Revolving Credit Facility; and 

  

	 	(ii)	LIBOR. 

  

	9.4	Fixing of the Margin Loan A 

  

	(a)	The Margin Loan A shall be fixed for a period of 36 months from the Drawdown Date for Loan A (the “Fixed Margin Period”). 

  
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	(b)	Eksportfinans may within sixty (60) Business Days prior to the Interest Payment Date falling nearest to the expiry of the Fixed Margin Period (the “Margin Review Date”), give an offer to the Borrower for
a fixed margin (“New Fixed Margin”) for an additional period and so on (the “New Fixed Margin Period”). No later than thirty (30) Business Days prior to the relevant Interest Payment Date falling nearest to the expiry of the
Fixed Margin Period, the Borrower may accept or reject the margin offer. If the Borrower rejects the margin offer, Loan A shall terminate and all outstanding amounts under Loan A shall be due and payable by the Borrower on the expiring of the Fixed
Margin Period. 

  

	(c)	If Eksportfinans at the time of the Margin Review Date at its discretion determines that it is or will not be able to obtain funds to a sufficient extent and/or on terms that can support continuous lending and/or
lending terms or practices, no new margin will be offered and whereupon Loan A will be cancelled and all outstanding amounts will become immediately due and payable. The Agent shall, on behalf of Eksportfinans, notify the Borrower without undue
delay. 

  

	9.5	Default interest 

 In the event of the Borrower not making payment of any amounts due under this
Agreement on the due date thereof, the Borrower shall pay interest on such amounts from the due date up to the date of actual payment at a rate to be determined by the Agent to be the aggregate sum of 2.0 per cent per annum and the Margin Loan
A and the Margin Loan B respectively plus costs the Lenders will incur in financing such sums for such periods as the Lenders shall determine. Interest under this Clause 9.4 shall be payable by the Borrower upon written demand from the Agent.

  

	9.5	Notification 

 The Agent shall promptly notify each relevant Party of the determination of a rate of
interest under this Agreement. 
  

	9.6	Effective Interest Rate 

 It is not possible to calculate the effective interest rate on this Agreement
in advance. The Lenders are nevertheless, according to the Finance Contracts Act (Finansavtaleloven) obliged to give a representative example. LIBOR for six months was at 21 December 2010 0.45719 % per annum. Provided unaltered LIBOR
and (i) Margin Loan A for the duration of the Loan A, the effective interest rate will be 2.98 % for the Loan A and (ii) Margin Loan B for the duration of the Loan B, the effective interest rate will be 3.59 % for Loan B. 

 

	9.7	Break Costs 

  

	(a)	The Borrower shall, within three Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of the relevant Loans being paid by the Borrower on a day other than
agreed day for the Loans. 

  

	(b)	Each Lender shall, as soon as reasonably practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue. 

  
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	10.	PAYMENTS 

  

	10.1	Place 

 All payments by the Borrower or a Lender under this Agreement shall be made to the Agent to its
account at such office or bank as it may notify to the Borrower or such Lender for this purpose. 
  

	10.2	Funds 

 Payments under this Agreement to the Agent shall be made for value on the due date at such times
and in such funds as the Agent may specify to the Party concerned as being customary at the time for the settlement of transactions in the relevant currency in the place for payment. 

 

	10.3	Distribution 

  

	(a)	Each payment received by the Agent under this Agreement for another Party shall, subject to paragraphs (b) and (c) below, be made available by the Agent to that Party by payment (on the date and in the
currency and funds of receipt) to its account with such office or bank as it may notify to the Agent for this purpose by not less than five Business Days prior written notice. In case of payment by the Agent to the Lenders under this Agreement each
Lender shall receive an amount corresponding to its respective Commitment related to the Total Commitment. 

  

	(b)	The Agent may apply any amount received or held by it for the Borrower in or towards payment (on the date and in the currency and funds of receipt) of any amount due from the Borrower under this Agreement or in or
towards the purchase of any amount of any currency to be so applied. 

  

	(c)	Where a sum is to be paid to the Agent under this Agreement for distribution to another Party, the Agent is not obliged to pay that sum to that Party until it has established that it has actually received that sum. The
Agent may, however, assume that the sum has been paid to it in accordance with this Agreement and, in reliance on that assumption, make available to that Party a corresponding amount. If the sum has not been made available but the Agent has paid a
corresponding amount to another Party and the Party liable does not forthwith on demand pay such amount to the Agent together with interest on that amount from the date of payment to the date of receipt, calculated at a rate determined by the Agent
to reflect its cost of funds, that Party shall forthwith on demand by the Agent refund such amount to the Agent together with interest on such amount calculated as above. 

 

	10.4	Currency 

  

	(a)	Any amount payable under this Agreement is, except as otherwise provided in this Agreement, payable in USD. 

  

	(b)	Amounts payable in respect of costs, expenses, taxes and the like are payable in the currency in which they are incurred. 

  
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	10.5	Set-off and counterclaim 

 All payments made by the Borrower
under this Agreement shall be made without set-off or counterclaim. 
  

	10.6	Non-Business Days 

 If a payment under this Agreement is due on a
day which is not a Business Day, the due date for that payment shall instead be the next Business Day in the same calendar month provided that (i) if there is no next Business Day in the same calendar month or (ii) if the day on which that
payment was otherwise due was the Final Maturity Date Loan A and/or Final Maturity Date Loan B and/or Final Maturity Date Revolving Credit Facility respectively, the due date for that payment shall instead be the preceding Business Day. 

 

	10.7	Partial payments 

 If the Agent receives a payment insufficient to discharge all the amounts then due and
payable by the Borrower under this Agreement, the Agent shall apply that payment towards the discharge of the obligations of the Borrower under this Agreement in the following order: 

 

	(a)	firstly, in or towards payment pro rata of any unpaid costs and expenses of the Finance Parties under this Agreement; 

  

	(b)	secondly, in or towards payment pro rata of any accrued fees due but unpaid under Clause 22 (Fees); 

  

	(c)	thirdly, in or towards payment pro rata of any accrued interest under this Agreement; 

  

	(d)	fourthly, in or towards payment pro rata of any principal due from the Borrower but unpaid under this Agreement; and 

  

	(e)	fifthly, in or towards payment pro rata of any other sum due but unpaid under this Agreement 

  

	11.	SECURITY 

  

	11.1	Security 

 The Borrower’s obligations under this Agreement, including without limitation the
obligation to repay the Loans together with all unpaid interest, default interest, commissions, charges, expenses and any derived liability whatsoever of the Borrower in connection with the Finance Documents shall be secured pari passu and on a
pro-rata basis as follows: 
  

	 	(i)	the Mortgage; 

  

	 	(ii)	the Deed of Covenants; 

  

	 	(iii)	the Insurances Assignment; 

  

	 	(iv)	the GIEK Guarantee (for Loan A); 

  

	 	(v)	the Charterparty Assignment; 

  
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	 	(vi)	the Factoring Agreement; 

  

	 	(vii)	the Pledge of Accounts; 

  

	 	(viii)	the Share Pledge; 

  

	 	(ix)	the Guarantees; 

  

	 	(x)	the Parent Guarantee (to the extent not released pursuant to Clause 16.9). 

  

	11.2	Co-ordination Agreements 

 The Lenders will, subject to the Swap Banks Subordination Statement allow the
Swap Banks to participate in the Security Documents on a subordinated basis. Further the Lenders and GIEK will enter into the GIEK Co-ordination Agreement. 
  

	11.3	Right of subrogation 

  

	(a)	Each Party acknowledges and accepts that GIEK, without any notice or formalities of any kind, shall have an automatic pari passu pro rata right of subrogation into the rights, entitlements and powers of Eksportfinans
under this Agreement and the Security Documents immediately upon, and in each case to the extent of, any and all payments made by GIEK under the GIEK Guarantee. The Guarantors and the Parent Guarantor shall have no right of subrogation under this
Agreement. 

  

	(b)	For the avoidance of doubt, but subject as set forth in paragraph (a) above, the effect of such subrogation shall be the sharing of all rights, entitlements and powers conferred upon or otherwise vested in
Eksportfinans under this Agreement and the Security Documents among GIEK and Eksportfinans in proportion to the amount of their respective claims and receivables from time to time under or in respect of this Agreement. 

 

	(c)	Upon receipt by Eksportfinans of payment in full from GIEK under the GIEK Guarantee a written notice confirming the same shall be given by the Agent to all the Parties hereto. Following such notice, GIEK (or its
respective nominees) shall accede to this Agreement as an additional lender. Following such accession, GIEK (or its respective nominees) shall for the purposes of this Agreement be included in the new definition of “Lender” and the rights,
entitlements and powers of GIEK (or nominee) and Eksportfinans under this Agreement and the Security Documents shall be as set forth in paragraphs (a) and (b) above. 

 

	(d)	As a third party undertaking for the benefit of GIEK each of the Obligors confirms and agrees that GIEK shall be entitled, save for manifest error, but not obliged, to accept any claim or demand made by Eksportfinans
under the GIEK Guarantee as conclusive evidence that the amount claimed pursuant to any such demand is due and payable to Eksportfinans from the Borrower under this Agreement and covered by the GIEK Guarantee. Each of the Obligors waives any right
to dispute or delay any subrogation of all or part of the rights of Eksportfinans under this Agreement and the Security Documents to GIEK (or its respective nominees), and each of the Obligors and Eksportfinans undertakes to sign and execute any
documents reasonably required by GIEK in connection with any subrogation as aforesaid, and/or enforcement of the Security Documents. 

  
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	11.4	Further documentation or acts upon request 

 Each Obligor undertakes during the Loan Period to execute or
procure the execution of such further documentation and does and performs such further acts and things as the Agent, the Lenders or GIEK may reasonably require in order for the Lenders or GIEK to perfect and maintain the security position envisaged
above. 
  

	11.5	Set-off 

 Following the occurrence of an Event of Default, the Agent (acting on its own behalf and on
behalf of the Finance Parties) and each of the Finance Parties individually (acting on its own behalf and on behalf of the Agent and the other Finance Parties) shall to the extent permitted by applicable law, have a separate right of set-off in
respect of any credit balance, in any currency, on any account the Borrower might have with the Agent and each of the Finance Parties individually (branches included) against any sum due to the Agent and the Finance Parties under any Finance
Document. 
  

	12.	TAXES 

 All payments by the Borrower under this Agreement shall be made free and clear of and without
deduction for or on account of any taxes, except to the extent that the Borrower is required by law to make payment subject to any taxes. If by requirement of law any tax or amounts in respect of tax must be deducted or withheld from any amounts
payable or paid by the Borrower, or paid or payable by the Agent to a Lender, under this Agreement, the Borrower (or the Agent, if required) shall pay such tax to the relevant authority and the Borrower shall pay such additional amounts as may be
necessary to ensure that the relevant Lender and/or Guarantor receives (free from any liability in respect of any such deduction or withholding) a net amount equal to the full amount which it would have received had payment not been made subject to
tax or other deduction. The Borrower shall promptly deliver to the Agent any receipts, certificates or other proof evidencing the amounts paid or payable in respect of any deduction or withholding as aforesaid. 

 

	13.	MARKET DISRUPTION 

  

	13.1	Market Disruption 

  

	(a)	If a Market Disruption Event occurs for any Interest Period, then the rate of interest on the Loan A for the Interest Period shall be the rate per annum, which is the sum of: 

 

	 	(i)	the Margin Loan A; and 

  

	 	(ii)	the rate notified to the Agent by Eksportfinans as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the
cost to Eksportfinans of funding its participation in the Loan A from whatever source it may reasonably select. 

  
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 If a Market Disruption Event occurs for any Interest Period, then the rate of interest on the
Loan B for the Interest Period shall be the rate per annum, which is the sum of: 
  

	 	(i)	the Margin Loan B; and 

  

	 	(ii)	the rate notified to the Agent by a Commercial Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per
annum the cost to Commercial Lenders of funding its participation in the Loan B from whatever source it may reasonably select. 

If a Market Disruption Event occurs for any Interest Period, then the rate of interest on the Revolving Credit Facility for the Interest Period
shall be the rate per annum, which is the sum of: 
  

	 	(i)	the Margin Revolving Credit; and 

  

	 	(ii)	the rate notified to the Agent by a Commercial Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per
annum the cost to Commercial Lenders of funding its participation in the Revolving Credit Facility from whatever source it may reasonably select. 

  

	(b)	In this Agreement “Market Disruption Event” means: 

  

	 	(i)	at or about 11.00 a.m. London time on the Quotation Day for the relevant Interest Period LIBOR is not available; or 

  

	 	(ii)	before close of business in London on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders that the cost to it of obtaining matching deposits in the London
interbank market would be in excess of LIBOR; 

  

	(c)	The Agent will notify the Borrower as soon as reasonably possible after becoming aware of a Market Disruption Event. 

  

	13.2	Alternative basis of interest or funding 

  

	(a)	If a Market Disruption Event occurs and the Agent or the Borrower so requires, the Agent and the Borrower shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute
basis for determining the rate of interest. 

  

	(b)	Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Borrower, be binding on all parties. 

  
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	14.	INCREASED COSTS 

  

	14.1	Increased costs 

  

	(a)	Subject to Clause 14.2 (Exceptions) and the relevant Lender notifying the Borrower of any event referred to below promptly upon becoming aware thereof, the Borrower shall, promptly after demand by a Lender, pay to
that Lender the amount of any increased cost relating to this Agreement incurred by it as a result of: 

  

	 	(i)	any change in, or any change in the interpretation or application by any competent authority of, any relevant law or regulation after the date of this Agreement (including but not limited to any law or regulation
relating to taxation, or reserve asset, special deposit, cash ratio, liquidity or capital adequacy requirements or any other form of banking or monetary control); or 

 

	 	(ii)	Compliance with any regulation made by a competent authority of the jurisdiction in which it is incorporated and/or in which its principal office is located after the date of this Agreement, (including but not limited
to any law or regulation relating to taxation, or reserve asset, special deposit, cash ratio, liquidity or capital adequacy requirements or any other form of banking or monetary control). 

 

	(b)	In this Agreement “increased cost” means: 

  

	 	(i)	an additional cost incurred by a Lender as a result of the Lender having entered into, or performing, maintaining or funding its obligations under this Agreement; or 

 

	 	(ii)	that portion of an additional cost incurred by a Lender as a result of the Lender making, funding or maintaining all or any advances comprised in a class of advances formed by or including its participation in the Loans
made or to be made under this Agreement as is attributable to it making, funding or maintaining those participations; or 

  

	 	(iii)	a reduction in any amount payable to a Lender; or 

  

	 	(iv)	the amount of any payment made by a Lender, or the amount of any interest or other return foregone by a Lender, calculated by reference to any amounts received or receivable by that Lender from the Agent or the Borrower
under this Agreement, 

 all as certified by the relevant Lender, such certificate to set out in reasonable detail the
circumstances giving rise to the claim for payment of increased costs and the calculations of the amount claimed and shall be conclusive evidence, save for manifest error, of the amount due from the Borrower. 

 

	14.2	Exceptions 

 Clause 14 (Increased costs) does not apply to any increased cost: 

 

	(a)	provided for by the operation of Clause 12 (Taxes); or 

  

	(b)	attributable to any change in the rate of Tax on Overall Net Income of a Lender. 

  
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	15.	ILLEGALITY 

 If it becomes unlawful in any jurisdiction by virtue of any law which is binding upon such
Lender for it to give effect to any of its obligations as contemplated by this Agreement, then: 
  

	(a)	that Lender may notify the Borrower through the Agent accordingly (specifying the obligations the performance of which is thereby rendered unlawful and the law giving rise to the same); and 

 

	(b)	the Borrower shall forthwith (or at such later date as may be permitted by the relevant law) without premium or penalty other than as set out in Clause 24.2 (Other indemnities), prepay that Lender’s
participation in all amounts payable by it to that Lender under this Agreement; and 

  

	(c)	that Lender’s Commitment shall forthwith be cancelled. 

  

	16.	GUARANTEE AND INDEMNITY 

  

	16.1	Guarantee obligations 

 The Parent Guarantor irrevocably and unconditionally: 

 

	(a)	guarantees to the Agent and the Lenders as and for its own debt and not merely as surety the due and punctual observance and performance by the Borrower of the Loans; 

 

	(b)	undertakes with the Lenders that whenever the Borrower does not pay any amount when due under or in connection with this Agreement, to pay that amount on first demand (“No: “påkravsgaranti”) as if
it were the principal obligor; and 

  

	(c)	agrees to indemnify the Lenders immediately on demand against any cost, loss or liability suffered by the Lenders if any obligation guaranteed by it hereunder is or becomes unenforceable, invalid or illegal. The amount
of the cost, loss or liability shall be equal to the amount which each of the Lenders would otherwise have been entitled to recover. 

  

	16.2	Demands 

 The Parent Guarantor undertakes unconditionally and irrevocably immediately upon receipt of any
written demand by the Agent from time to time to make payment(s) in accordance with its guarantee obligations (the “Guarantee Obligations”) under Clause 16.1 (Guarantee obligations) where such demand is accompanied by a statement of the
Agent that a payment has fallen due under this Agreement, that the Borrower has failed to make such payment when due and that notice of such non-payment has been issued. Each such payment so demanded shall be made by the Parent Guarantor to such
account as the Agent may from time to time notify in writing. 

  
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	16.3	Scope of liability 

 The liability of the Parent Guarantor hereunder shall be limited to the at any time
outstanding Loans, however limited to USD 120,000,000.- plus any unpaid amount of interest, fees, liability and expenses under this Agreement. 
  

	16.4	Number of claims 

 There is no limit on the number of claims that may be made by the Agent (on behalf of
the Lenders) against the Parent Guarantor under this Agreement. 
  

	16.5	Continuing Guarantee 

 The obligations of the Parent Guarantor hereunder are continuing guarantee
obligations and will extend to the ultimate balance of sums payable by the Borrower under this Agreement, regardless of any intermediate payment or discharge in whole or in part. 

 

	16.6	Survival of the Parent Guarantor’s liability 

  

	(a)	The Parent Guarantor’s liability to the Agent and the Lenders under this Agreement (including for avoidance of doubt the obligation to make payment on first written demand) shall not be discharged, impaired or
otherwise affected by reason of any of the following events or circumstances (regardless of whether any such events or circumstances occur with or without the Parent Guarantor’s knowledge or consent): 

 

	 	(i)	any time, waiver, consent, forbearance or other indulgence given or agreed by the Agent or any of the Lenders with the Borrower in respect of any of the Borrower’s obligations under this Agreement; or

  

	 	(ii)	any legal limitation, disability or incapacity of the Borrower related to this Agreement; or 

  

	 	(iii)	any amendments to or variations of this Agreement agreed by the Agent or any of the Lenders with the Borrower; or 

  

	 	(iv)	the liquidation, bankruptcy or dissolution (or proceedings analogous thereto) of the Borrower; or 

  

	 	(v)	any conflict, dispute, challenge or defence between or made by, any of the parties to the Agreement or the Security Documents, that the Parent Guarantor could otherwise be entitled to invoke. 

 

	(b)	The Parent Guarantor specifically waives all rights under the provisions of the Norwegian Financial Agreements Act of 25 June 1999 No. 46 not being mandatory provisions, including the following provisions (the
main contents of the relevant provisions being as indicated in the brackets): 

  
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	 	(i)	§ 63 (1) - (2) (the right of the Parent Guarantor to be notified of any Default or Event of Default under this Agreement and to be kept informed thereof, since no such obligation to notify the Parent
Guarantor shall apply to the Lenders or the Agent); 

  

	 	(ii)	§ 63 (3) (the right of the Parent Guarantor to be notified of any extension granted by the Lenders to the Borrower in respect of any payment of principal and/or interest under this Agreement, since no
such obligation to notify the Parent Guarantor shall apply to the Lenders or the Agent); 

  

	 	(iii)	§ 63 (4) (the right of the Parent Guarantor to be notified of the Borrower’s bankruptcy proceedings or debt reorganisation proceedings and/or any application or court filings in respect of the
latter, since no such obligation to notify the Parent Guarantor shall apply to the Lenders or the Agent); 

  

	 	(iv)	§ 67 (2) (the right of the Parent Guarantor to deem their liabilities hereunder to be reduced over time irrespective of any possible non-performance by the Borrower of its payment obligations under this
Agreement, since no such reduction of liability shall apply as long as any amount is outstanding under this Agreement); 

  

	 	(v)	§ 67 (4) (the right of the Parent Guarantor to deem their liabilities hereunder to expire ten years after the date of this Agreement, since the Parent Guarantor shall remain liable hereunder for as long
as any amount is outstanding under this Agreement); 

  

	 	(vi)	§ 70 (the right of the Parent Guarantor to be subrogated into the rights of the Lenders under this Agreement, since no such right of subrogation shall apply unless and until the Lenders have received payment
of all amounts due or to become due to them under this Agreement); 

  

	 	(vii)	§ 71 (the right of the Parent Guarantor to demand that any claim under this Agreement first be made against the Borrower, since no such obligation shall apply to the Lenders or the Agent); 

 

	 	(viii)	§ 72 (the right of the Parent Guarantor to exclude from their liability hereunder interest and default interest accrued on the Loans prior to the date of any demand being made against it under this
Agreement, since the Parent Guarantor’s liability for securing payment of interest and default interest under this Agreement shall include all interest and default interest accrued under this Agreement, both before and after the date of any
such demand being made against it hereunder); 

  

	 	(ix)	§ 73 (1) - (2) (the right of the Parent Guarantor to exclude certain costs and expenses from their liability hereunder, since the Parent Guarantor’s liability for securing
costs and expenses under this Agreement shall include all costs and expenses which may be incurred by the Lenders and/or the Agent following the occurrence of a Default or an Event of Default under this Agreement); and 

 

	 	(x)	§ 74 (1) - (2) (the right of the Parent Guarantor to make claims for payment against the Borrower, since no such claim shall be made by it unless and until the Lenders first shall
have received all amounts due or to become due to them under this Agreement). 

  
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	16.7	Deferral of the Parent Guarantor’s rights 

 The Parent Guarantor further undertakes to the Agent and
the Lenders that as long as this Agreement is effective; 
  

	(a)	following receipt by the Parent Guarantor of a notice from the Agent of the occurrence of any Event of Default which is unremedied, the Parent Guarantor will not make demand for or claim payment of any moneys due to the
Parent Guarantor from the Borrower, or exercise any other right or remedy to which the Parent Guarantor are entitled in respect of such moneys unless and until all moneys owing or due and payable by the Borrower and the Parent Guarantor to the
Lenders and the Agent under this Agreement have been irrevocably paid in full; 

  

	(b)	if the Borrower shall become the subject of an insolvency proceeding or shall be wound up or liquidated, the Parent Guarantor shall not (unless so instructed by the Agent and then only on condition that the Parent
Guarantor holds the benefit of any claim in such insolvency or liquidation to pay any amounts recovered thereunder to the Agent) make any claim in such insolvency, winding-up or liquidation until all moneys owing or due and payable by the Borrower
and the Parent Guarantor to the Lenders and the Agent under this Agreement have been irrevocably paid in full; 

  

	(c)	if the Parent Guarantor, in breach of paragraphs (i) and/or (ii) above of this Clause 16.7 receives or recovers any money pursuant to any such exercise, claim or proof as therein referred to, such money shall
be held by the Parent Guarantor in custody for the Agent and immediately be paid to the Agent so as for the Agent to apply the same as if they were moneys received or recovered by the Agent under this Agreement; and 

 

	(d)	the Parent Guarantor has not taken and will not take from the Borrower any security whatsoever for the moneys hereby guaranteed. 

  

	16.8	Enforcement 

  

	(a)	The Agent, the Lenders and/or GIEK shall not be obliged before taking steps to enforce the Guarantee Obligations of the Parent Guarantor under this Agreement: 

 

	 	(i)	to obtain judgement against the Borrower or any third party in any court or other tribunal; 

  

	 	(ii)	to make or file any claim in a bankruptcy or liquidation of the Borrower or any third party; or 

  

	 	(iii)	to take any action whatsoever against the Borrower or any third party under this Agreement or the Security Documents, except the giving notice of any payment due hereunder, 

and the Parent Guarantor hereby waives all such formalities or rights to which it would otherwise be entitled or which the Agent and the
Lenders would otherwise first be required to satisfy or fulfil before proceeding or making any demand against the Parent Guarantor hereunder, except as required hereunder or by law. 

  
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	(b)	Any release, discharge or settlement between the Parent Guarantor, the Agent and the Lenders (or any of them) in relation to this Agreement shall be conditional upon no payment made by the Borrower to the Agent or the
Lenders hereunder being void, set aside or ordered to be refunded pursuant to any enactment or law relating to breach of duty by any person, bankruptcy, liquidation, administration, protection from creditors generally or insolvency or for any other
reason whatsoever. If any payment is void or at any time set aside or ordered to be refunded, the Agent and the Lenders shall be entitled subsequently to enforce the Guarantee Obligations of the Parent Guarantor hereunder as if such release,
discharge or settlement had not occurred and any such payment had not been made. 

  

	16.9	Release of Parent Guarantor’s Guarantee Obligations 

 The Parent Guarantor’s Guarantee
Obligations shall be released in writing by the Agent when the IPO Prepayment – Loan A and the IPO Prepayment – Loan B have occurred to the Lenders’ satisfaction. 

 

	17.	PAYMENT AND INDEMNITY 

  

	17.1	Borrower’s indemnity 

 The Borrower hereby irrevocably and unconditionally; 

 

	(a)	authorises and directs GIEK to pay upon any demand made by Eksportfinans under this Agreement on first request or demand being made without requiring proof that the amounts so demanded are or were due and
notwithstanding that the Borrower may dispute the validity of any such request, demand or payments; 

  

	(b)	undertakes to reimburse GIEK immediately after payment has been made, any and all sums which GIEK may pay Eksportfinans under this Agreement, in the currency paid, together with interest, being the aggregate of the cost
of funds as conclusively specified by Eksportfinans and three (3) per cent per annum from the date such payment is made until payment of such reimbursement has been received in full; 

 

	(c)	undertakes to keep the Lenders, GIEK and the Agent indemnified against any and all liabilities, losses, damages, claims, demands, expenses (including, without limitation, legal fees and VAT) or actions which the Agent
on its own account and/or on behalf of the Lenders and/or GIEK, or any of them may suffer or incur in any way whatsoever or which may be made against any of the Lenders, GIEK and the Agent under or in connection with or arising out of this
Agreement; 

  

	(d)	agrees that GIEK shall be entitled to pay upon any demand by Eksportfinans which appears on its face to be in order and agrees that, in respect of the GIEK Guarantee, GIEK shall not be concerned with the legality of any
claim or any underlying transaction or any set-off or counter-claim or defence as between the Borrower and Eksportfinans or any other person, and GIEK shall not be obliged to make inquiries of any kind and may assume that any request, demand,
certificate or statement from Eksportfinans is correct and properly made. 

  
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	17.2	Continuing indemnity 

 This indemnity shall be a continuing indemnity, and shall extend to the ultimate
balance of all amounts which may be or become due, owing or payable under this indemnity and shall continue in force notwithstanding any intermediate payment in whole or in part of any such amounts. 

 

	17.3	Certificate from Eksportfinans 

 A certificate in writing signed by Eksportfinans, certifying any amount
due from the Borrower under this indemnity shall be conclusive evidence of the matter so certified, save in the case of manifest error. 
  

	17.4	Additional nature of obligations 

 The obligations of the Borrower under this indemnity shall be in
addition to and shall not, in any way, be prejudiced by any collateral or other security now or hereafter held by the Agent on behalf of the Lenders and GIEK as security for the Borrower’s obligation hereunder or any lien to which the Agent on
behalf of the Lenders and GIEK may be entitled. 
  

	17.5	Invalidity 

 No invalidity or unenforceability of all or any part of this Clause 17 shall affect any
rights of indemnity or otherwise which GIEK would or may have in absence of or in addition to this Clause 17. 
  

	18.	REPRESENTATIONS AND WARRANTIES 

  

	18.1	Representations and warranties 

 Each Obligor makes the representations and warranties set out in this
Clause 18 to each of the Finance Parties. 
  

	18.2	Status and ownership 

  

	(a)	the Borrower is a duly constituted and properly incorporated private company with limited liability under Norwegian law. 

  

	(b)	the General Partner is a duly constituted and properly incorporated company with limited liability under Marshall Islands law, wholly-owned by the Sponsor. 

 

	(c)	KNOT Offshore Partners LP is a duly constituted and properly incorporated company with limited liability under Marshall Islands law, owned at least33.3% by the Sponsor (directly or indirectly). 

 

	(d)	KNOT Shuttle Tankers AS is a duly constituted and properly incorporated company with limited liability under Norwegian law, owned 100% by KNOT Offshore Partners LP (directly or indirectly). 

  
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	18.3	Powers and authority 

 Each Obligor has the power to enter into and perform, and have taken all necessary
corporate actions to authorise the entry into, performance and delivery of, the Finance Documents and/or the Transaction Documents to which it is party, and the transactions contemplated herein and therein. 

 

	18.4	Legal validity and enforceability 

 The Finance Documents and the Transaction Documents will, subject
always to mandatory law, when executed by the respective parties thereto constitute legal, valid and binding obligations of such parties, enforceable in accordance with their respective terms and conditions, and save as provided for herein or
therein, including nominal fees related to registration and enforcement of any of the Finance Documents, no registration, filing, payment of tax or fees or other formalities are necessary or desirable to render the Finance Documents and/or the
Transaction Documents enforceable against the parties thereto, and for the Security Documents to constitute valid and enforceable first priority Security Documents as contemplated therein or herein. 

 

	18.5	Non-conflict 

 The entry into and performance by each of the
Obligors of the Finance Documents and the Transaction Documents to which it is a party, and the transactions contemplated herein and therein, do, in the opinion of any of the Obligors, not and will not conflict with: 

 

	(a)	any articles of association or other constitutional documents of any of the Obligors; and 

  

	(b)	any document or agreement which is binding upon the Obligors, or any of their assets. 

  

	18.6	No Money Laundering 

 In relation to the borrowing by the Borrower of the Loans, the performance and
discharge of its obligations and liabilities under this Agreement or any of the Security Documents and the transactions and other arrangements effected or contemplated by this Agreement or any of the Security Documents to which the Borrower is a
party, it is acting for its own account and the foregoing will not involve or lead to a contravention of any law, official requirement or other regulatory measure or procedure which has been implemented to combat “money laundering” (as
defined in Article 1 of the Directive (91/308/EEC) of the Council of the European Community) and which is applicable to the Borrower. 
  

	18.7	No Default 

  

	(a)	No Default is outstanding or might result from the disbursement of the Loans; 

  

	(b)	no other event is outstanding which constitutes or, (with the giving of notice, lapse of time, determination of materiality or the fulfilment of any other applicable condition, or any combination of the foregoing,)
might constitute an event of default under any document which is binding on the Borrower or any of its assets, and which may have a material effect on the Borrower’s ability to perform its obligations under this Agreement or the Security
Documents (as the case may be); and 

  
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	(c)	no amendments or waivers have been made under any of the Transaction Documents, and no event of default has occurred and is continuing or is threatening thereunder. 

 

	18.8	Authorisations 

 All authorisations required in connection with the entry into, performance, validity and
enforceability of, and the transactions contemplated by, the Finance Documents and the Transaction Documents have been obtained or effected (as appropriate) and are in full force and effect, as and so required thereunder. 

 

	18.9	Environmental issues 

 There are no conditions or circumstances known to it associated with the operation
of the Vessel, which may give rise to any environmental liability of any of the Obligors. 
  

	18.10	Financial information 

  

	(a)	The audited consolidated accounts of the Obligors: 

  

	 	(i)	have (save as stated therein) been prepared in accordance with NORGAAP or USGAAP (as relevant) consistently applied; and 

  

	 	(ii)	fairly represent the financial condition of the Borrower and the consolidated financial condition of the Guarantors as at the date to which they were drawn up, 

and there has been no material adverse change in the consolidated financial condition of the Borrower and/or the Guarantors since the date on
which those accounts were drawn up, which might reasonably be expected to have a material adverse effect on the ability of the Borrower and/or the Guarantors to perform their respective obligations under the Finance Documents and the Transaction
Documents to which they are a party. 
  

	(b)	All financial documents and information relating to the Borrower or the Guarantors or otherwise relevant to the matters contemplated by this Agreement which have been supplied to the Agent or the Lenders are complete
and correct in all material respects, and the Borrower has not omitted to disclose to the Finance Parties any information, documents or agreements known to the Borrower which, if disclosed, could in the Borrower’s opinion reasonably be expected
to affect the decision of the Finance Parties to enter into this Agreement. 

  

	18.11	Litigation 

 No litigation, arbitration or administrative proceedings are current or, to the
Obligors’ knowledge, pending or threatened against any of the Obligors which might, if adversely determined, be reasonably expected to have a material adverse effect on the ability of any of the Obligors to perform their respective obligations
under the Finance Documents or the Transaction Documents (as the case may be). 

  
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	18.12	Pari passu 

 Each Obligors’ obligations under the Finance Documents to which it is a party are its
direct, general and unconditional obligations and rank at least pari passu with all its other present and future unsecured and unsubordinated indebtedness. 
  

	18.13	No withholding Taxes 

 No Taxes are imposed by withholding or otherwise on any payment to be made by the
Borrower under the Finance Documents or are imposed on or by virtue of the execution or delivery by the Borrower of the Finance Documents to which it is or is to be a party or any other document or instrument to be executed or delivered under the
Finance Documents. 
  

	18.14	No material adverse change 

 There has been no material adverse change in the financial position of the
Borrower or the Guarantors from that described to the Lenders during the negotiation of this Agreement. 
  

	18.15	Times for making representations and warranties 

 The representations and warranties set out in this
Clause 18 are made by the Borrower on the Effective Date and are deemed to be repeated by the Borrower on the date of each Drawdown Notice, Drawing and each Renewal Notice, as well as the first day in each Interest Period, with reference to the
facts and circumstances then existing, unless otherwise notified to the Agent in writing, and if not permitted under this Agreement, waived by the Majority Lenders prior to such dates. 

 

	19.	UNDERTAKINGS 

  

	19.1	Duration 

 The undertakings in this Clause 19 remain in force throughout the Loan Period. 

 

	19.2	Financial information 

  

	(a)	Each Obligor shall supply to the Agent in sufficient copies for all of the Lenders: 

  

	 	(i)	as soon as reasonably practicable after the same are available (and in any event no later than 150 days after each year-end) the audited unconsolidated and consolidated accounts of the Obligors for that financial year;
and 

  

	 	(ii)	as soon as reasonably practicable after the same are available (and in any event no later than 90 days after the end of each quarter) the unaudited unconsolidated and consolidated accounts of the Obligors, and

  

	 	(iii)	as soon as practicable (but in any event within 60 days after 31 December each year) financial projections including profit and loss, balance sheet and cash flow forecasts including supporting schedules and
calculations for the MLP Group and the Borrower. 

  
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	 	(iv)	the Compliance Certificate on a quarterly basis within 150 days after each year-end and 90 days after each 30 March, 30 June and 30 September. 

 

	 	(v)	appraisal reports from two Approved Brokers on a semi-annual basis stating the Market Value of the Vessel. 

  

	(b)	The financial statements which shall be delivered to the Agent pursuant to sub-paragraphs (ii) and (iii) above shall have been prepared in accordance with NORGAAP or USGAAP (as relevant) or, if not, such
financial statements shall be accompanied by a certificate setting out the adjustments to be made, and showing such adjustments as having been made, as are necessary to produce the amounts and totals in such accounts that would have been produced if
NORGAAP or USGAAP (as relevant) had been applied. 

  

	19.3	Information – Miscellaneous 

 Each Obligor shall supply to the Agent, in sufficient copies for all
of the Lenders: 
  

	(a)	promptly, such specific financial or other information regarding the financial condition and operations or other information of the Obligors or the Vessel (hereunder but not limited to technical data) as the Agent (or
any Lender through the Agent) may reasonably request; 

  

	(b)	promptly upon becoming aware of them, relevant details of any material litigation, arbitration or administrative proceedings which are current or, to its knowledge, threatened or pending against the Obligors and which
might, if adversely determined, be reasonably expected to have a Material Adverse Effect on the ability of the Obligors to perform their respective obligations under this Agreement or the Transaction Documents (as the case may be), and further
details of any such matters previously disclosed to the Agent, if the likelihood of an adverse determination has increased, as the Agent or any Lender acting through the Agent may reasonably request; 

 

	(c)	all documents dispatched by it to all of its shareholders containing information relevant to any of the Transaction Documents, at the same time as they are dispatched; 

 

	(d)	all information needed by the Lenders in order to comply with money laundering provisions and KYC requirements. 

  

	19.4	Notification of Default 

 Each Obligor shall notify the Agent of any Default which is continuing (and the
steps, if any, being taken to remedy it) promptly upon its occurrence. 
  

	19.5	Insurances 

  

	(a)	 The Borrower shall maintain the Vessel insured against such risks (including, but not limited) to Hull and Machinery, Hull Interest, Freight Interest,
Protection & Indemnity (including highest possible maximum cover of at least USD 1,000,000,000 for the Vessel for pollution), Loss of Hire (cover at least 180 days with a maximum of 14 days deductible) and War Risk insurances
(including War Risks, P & I and terrorism to the maximum extent), in 

  
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such amount, on such terms (always applying Norwegian law and including the terms of the Norwegian Marine Insurance Plan of 1996 version 2010 and/or the Nordic Marine Insurance Plan of 2013 or
equivalent terms in relation to losses payable thereunder) and with such insurers and through such brokers as the Agent on behalf of the Lenders shall approve. 

  

	(b)	The insurance value of the Vessel (Hull and Machinery (includs Hull Interest and Freight Interest) and war risk) shall be equal to or higher than the Market Value of the Vessel and 125 per cent of the Loans.

 The aggregate Hull and Machinery insurance values of the Vessel shall furthermore, at all times, cover the higher of the
Loan and 80 per cent of the Vessel’s insurable value, while the remaining cover may be taken out by way of Hull Interest and Freight Interest insurances. 
  

	(c)	Not later than 14 days prior to the expiry date of the relevant insurances the Borrower shall deliver to the Agent a certificate from the insurance broker(s) through whom the insurances relevant to the Vessel has been
placed, evidencing that all insurances referred to in item (a) have been renewed and taken out in respect of each Vessel with insurance values as required by item (b), that such insurances are in full force and effect and that the Agent on
behalf of the Lenders’ interest therein have been noted by the relevant insurers. 

  

	(d)	The Agent shall (at the Borrower’s expense) take out a Mortgagee Interest Insurance (covering 120 per cent. of the principal amount outstanding hereunder) and may at request of any of the Lenders (at the
Borrower’s expense) take out a Mortgagee Interest - Additional Perils Insurance (Pollution Cover) insurance relevant to the Vessel in a form and substance satisfactory to the Agent, such policy to be made in favour of the Agent (acting on its
own behalf and on behalf of the Lenders), or, if so directed by the Agent, arrange for such insurance cover to be taken out in accordance with instructions from the Agent. 

 

	(e)	The Borrower shall procure that the Vessel always is employed in conformity with the terms of the instruments of insurances (including any warranties expressed or implied therein) and comply with such requirements as to
extra premium or otherwise as the insurers may prescribe. 

  

	(f)	The Borrower shall before the Vessel is entering any US territory provide for the Vessel to be in Compliance with all US regulations relevant to such Vessel, including oil pollution regulations and requirements with
respect to certificate of financial responsibility (“COFR”) which shall be arranged with insurers and on terms approved by the Agent. 

  

	(g)	The Agent may (at the Borrower’s expense) obtain a favourable insurance report by an independent broker acceptable to the Agent. 

 

	19.6	Notification 

 The Borrower shall immediately notify the Agent of: 

 

	(a)	any accident to the Vessel involving repairs the cost of which is likely to exceed USD 5,000,000.-; 

  

	(b)	any Total Loss relevant to the Vessel; and 

  
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	(c)	any arrest of the Vessel or the exercise or purported exercise of any lien on the Vessel, the earnings or any of the Accounts; and 

  

	(d)	any environmental matters in respect of the Vessel. 

  

	19.7	Total loss 

 In the event that the Vessel shall suffer a Total Loss, the Borrower shall, within a period
of 90 days after the Total Loss Date, obtain and present to the Agent, a written confirmation from the relevant insurers that the claim relating to the Total Loss has been accepted in full, or – if sooner – promptly upon receipt of
insurance proceeds in respect of the Total Loss, apply such proceeds as prepayment of the Loans. 
  

	19.8	Class and International Regulations 

  

	(a)	The Borrower shall procure that the Vessel is classified and maintained in class with the highest possible class notation, free of overdue recommendations, with a classification society that is a member of the
International Association of Classification Societies, and at all times comply with the rules and regulations of the relevant class society. Furthermore, the Borrower shall at all times ensure Compliance with all requirements of the International
Convention for Safety of Life at Sea (SOLAS) 1974 as adopted, amended or replaced from time to time including, but not limited to, the STCW 95, the ISM Code and/or the ISPS Code (as each is defined in the respective amendments to SOLAS). Upon
receipt of the Agent’s written request, the Borrower shall instruct the classification society to send to the Agent, copies of all information, documents and class records held by the classification society in relation to the Vessel.

  

	(b)	The Borrower shall not change the Vessel’s class without the prior written consent of the Lenders. 

  

	19.9	Flag and register 

  

	(a)	The Borrower will at the Delivery Date register the Vessel in an Approved Register, and 

  

	(b)	The Borrower shall not change the flag or the ship registry of the Vessel or allow the Vessel to be dual registered. 

  

	19.10	Environmental regulations 

 The Obligors shall indemnify and hold each of the Finance Parties harmless
from and against any damages, losses or expenses which any of them may sustain or incur as a consequence of any claim by any governmental, judicial or regulatory authority which arises out of an environmental incident or an alleged environmental
incident in connection with the operation of the Vessel or which relates to any environmental law in any jurisdiction. 

  
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	19.11	Sale of Vessel 

 The Borrower shall not sell the Vessel without the prior written consent of the Lenders
unless the sale proceed covers the Loans and subject to Clause 7.3. 
  

	19.12	Management Agreement 

 The Borrower shall not substantially amend or terminate the Management Agreement
or enter into any further agreements related to the management of the Vessel provided however that the management of the Vessel can be transferred to another company acceptable to the Majority Lenders. 

 

	19.13	Charterparty 

 The Borrower shall not make any material amendment or supplement to, or waiver of the
terms of, the Charterparty without the prior written consent of the Majority Lenders. 
 At the expiry date of the Charterparty, the Borrower will not enter
into any new charterparty without the prior written consent of the Lenders. 
  

	19.14	Negative Pledge 

 Except as contemplated by this Agreement and/or the Security Documents, the Borrower
shall not: 
  

	(a)	undertake any other activity than owning and operating vessels; 

  

	(b)	create, incur or assume any Security Interest on the Vessel or any of its other assets, and not make any assignment of right to receive earnings or proceeds of insurance policies covering the Vessel; 

 

	(c)	make any intercompany loans or deposits to any company or person outside the MLP Group. As long as no Event of Default has occurred or is threatening, the Borrower shall be allowed to incur and to make intercompany
loans or deposits and to freely accept and grant equity contributions in any form to or from companies in the MLP Group, such intercompany loans, deposits or equity contributions to be subordinated to the Lenders’ rights. 

 

	19.15	Dividend and other payments 

 The Borrower may declare or pay any dividends or otherwise make any other
distribution of assets to any shareholder whether in cash or otherwise, provided that (a) no Event of Default has occurred or will occur at the time of payment of such dividend and (b) the Agent is satisfied that, after payment of such
dividend, the remaining liquidity of the Borrower will equal or exceed the aggregate amount of (i) the instalments falling due in the next 6 months after the dividend payment date and (ii) the amount estimated by the Agent as being the
amount of interest on the Loans which will fall due for payment by the Borrower under Clause 9 during that 6 month period. 
  

	19.16	Accounts 

  

	(a)	The Borrower shall maintain all its bank accounts related to the Vessel with the Agent. 

  
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	(b)	The Borrower shall procure that all money whatsoever due under the operations of the Vessel (hereunder payment of hire under the Charterparty) shall be paid to the Earnings Account. 

 

	(c)	The Borrower shall on a monthly basis transfer 1/6 of the next instalments and interest payments to the Retention Account for service of the Loans. 

 

	(d)	The Earnings Account shall, until an Event of Default has occurred, be at the Borrower’s free disposal, provided however that moneys on the Earnings Account only shall be used related to the Vessel. The Retention
Account shall be blocked. 

  

	(e)	The Borrower shall procure that all its bank accounts in respect of the Vessel at any time are pledged to the Agent on behalf of the Lenders. 

 

	19.17	Transactions with affiliates 

 The Borrower will ensure that all transactions and agreements with
companies affiliated to the Borrower shall be on a commercial basis and done on an arms-length-basis. 
  

	19.18	Maintenance and change of business 

  

	(i)	The Borrower shall remain a private limited company under Norwegian law, with no other activity than the ownership of the vessels. 

  

	(ii)	The Borrower shall not enter into any form of amalgamation, merger or demerger, divest or consolidate with any other entity or any form of reconstruction or reorganisation without the prior written consent of the
Majority Lenders. 

  

	(iii)	The Borrower will not change end of its fiscal year. 

  

	(iv)	The Borrower will not change its legal name. 

  

	19.19	Market Value 

 Subject to Clause 7.4 (Mandatory prepayment – Market Value): 

 

	(a)	The Borrower shall ensure that until the 4 anniversary of the Delivery Date the Market Value of the Vessel covers at all times at least 100 % of the Loans. 

 

	(b)	The Borrower shall ensure that at the last year prior to the Final Maturity Date Loan B the Market Value of the Vessel covers at all times at least 125 % of the Loans. 

 

	19.20	Laws, regulations and statutes 

  

	(a)	Each Obligor shall promptly obtain such registrations, certificates, licences, consents and approvals as may be required under applicable law or regulation to enable it to perform its obligations hereunder.

  
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	(b)	Each Obligor shall promptly obtain such registrations, certificates, licences, consents and approvals as may be required under applicable law or regulation in respect of its ongoing offshore supply and support
operations. 

  

	(c)	The Borrower shall at all times comply with all environmental laws and all other laws and regulations relating to the Vessel, its ownership, operation and management, and take all reasonable precautions to ensure that
the crews, employees, agents or representatives of the Borrower at all times comply with all applicable environmental laws and all laws and restrictions of every relevant jurisdiction concerning the use of drugs, alcohol or other illegal substances
in connection with the offshore supply and support operations of the Borrower. 

  

	(d)	Each Obligor shall at all times comply with all applicable competition laws and regulations relating to the Vessel, its ownership, operation and management or to its business. 

 

	(e)	The Obligors shall not, and shall procure that none of their respective managers, agents or representatives shall breach any criminal laws or regulations passed for the combat of corruption or bribing (howsoever
described), including laws similar or identical to the provisions set out in Sections 276 a. through 276 c. of the Norwegian Penal Act of 22 May 1902 No. 10. 

 

	(f)	Each Obligor will at all times comply with its partnership agreement and articles of association. 

  

	(g)	Each Obligor will pay all taxes when due and payable. 

  

	19.21	Acceptable Guarantees 

 Each of the Obligors shall at all times during the Loan Period maintain Loan A
fully secured by guarantees acceptable to Eksportfinans. 
  

	20.	DEFAULT 

  

	20.1	Events of Default 

 Each of the events set out in Clauses 20.2 to 20.32 (inclusive) is an Event of
Default (whether or not caused by any reason whatsoever outside the control of the Borrower or any other person). 
  

	20.2	Non-payment 

 Each of the Obligors does not pay on the due date an amount payable by it under this
Agreement at the place at, and in the currency in which it is expressed to be payable, provided that if such failure to pay has arisen as a consequence of an administrative or technical error only then such event shall not be an Event of Default
unless such failure continues for a period in excess of three Business Days. 

  
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	20.3	Breach of other obligations 

 The Borrower does not comply with any provision of any Finance Document
(other than those referred to in Clause 20.2 (Non-payment)), provided that it shall not constitute an Event of Default: 
  

	(a)	if 

  

	 	(i)	such non-Compliance is, in the opinion of the Majority Lenders, capable of remedy; and 

  

	 	(ii)	the Agent notifies the Obligors or the Obligors notify the Agent of such non-Compliance; and 

 

	 	(iii)	such non-Compliance does not exceed 14 Business Days from the date of its occurrence, 

  

	 	or 

  

	(b)	if such non-Compliance is in the sole discretion of the Majority Lenders of a minor nature and does not prejudice the security constituted by the Security Documents. 

For the avoidance of doubt and without prejudicing whether any other breach is or is not capable of remedy, a breach of Clause 19.5 (Insurances) shall in any
event be deemed not to be capable of remedy. 
  

	20.4	Breach under the Security Documents 

 Either of the Obligors does not comply with any obligation,
undertaking or provision of any of the Security Documents or any document referred to therein. 
  

	20.5	Misrepresentation 

 A representation, warranty or statement made or repeated in or in connection with any
Finance Document or in any document delivered by or on behalf of the Obligors under or in connection with any Finance Document was incorrect or misleading in any respect when made or deemed to be made or repeated. 

 

	20.6	Cross-default 

  

	a)	An event of default howsoever described (or any event which with the giving of notice, lapse of time, determination of materiality or fulfilment of any other applicable condition or any combination of the foregoing
would constitute such an event of default) occurs with respect to any of the Obligors and/or the MLP Group under any of the Transaction Documents to which any of the Obligors and/or the MLP Group is a party and such event of default may have effect
on the financial condition of any of the Obligors or its/their ability to perform their respective obligation hereunder or under the Security Documents to which they are a party (as case may be). 

 

	b)	Any Financial Indebtedness of an Obligor and/or any member of the MLP Group: 

  

	 	(i)	is not paid when due or within any originally applicable grace period; or 

  

	 	(ii)	is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described); or 

  
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	 	(ii)	becomes capable of being declared due and payable prior to its specified maturity as a result of an event of default (however described). 

 

	20.7	Liens 

 A maritime or other lien, arrest, distress or similar charge is levied upon, or against the
Vessel, the Pledged Accounts or any other part of the assets of any of the Obligors (save for as contemplated by this Agreement and/or the Security Documents) and is not discharged within 14 Business Days after the Borrower became aware of the same.

  

	20.8	Insolvency 

 An order of a competent court is made or an event analogous thereto occurs or any effective
resolution is passed with a view to the bankruptcy, commencement of composition proceedings, debt negotiations, liquidation, winding-up or similar event with respect to any of the Obligors. 

 

	20.9	Admittance of non-payment 

 Any of the Obligors is unable or admits in writing its inability to pay its
lawful debts as they fall due. 
  

	20.10	Termination of business 

 Any of the Obligors ceases or threatens to cease to carry on its business or
materially change its business, whether by one or a series of transactions. 
  

	20.11	Permits 

 Any licence, consent, permission or approval required in order to enforce, complete or perform
the Agreement and/or any of the Transaction Documents is revoked, terminated or modified. 
  

	20.12	Impossibility or illegality 

 It becomes impossible or unlawful for any of the Obligors to fulfil any of
the terms of the Finance Documents or for the Agent to exercise any right or power vested in the Agent under the Security Documents, or the security created by any of the Security Documents is imperilled, or for any reason whatsoever ceases to be
valid and enforceable with its intended priority. 
  

	20.13	Transaction Documents 

 Without the prior written consent of the Agent on behalf of the Lenders any of
the Transaction Documents 
  

	(i)	is (in the Lenders’ sole discretion) materially amended or terminated, 

  

	(ii)	ceases in whole or part to be valid, binding and enforceable, or 

  

	(iii)	any waivers are agreed thereunder. 

  
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	20.14	Material adverse change 

 Any event or series of events occurs in relation to any of the Obligors which,
in the reasonable opinion of any of the Lenders, have a Material Adverse Effect. 
  

	20.15	Events in Security Documents 

 Any of the events of default specified in any of the Security Documents
arise or occur. 
  

	20.16	Mergers, demerger and reconstructions 

 Any of the Obligors effects any demerger, merger, joint venture,
reconstruction, splitup or divest without the prior written consent of the Lenders. 
  

	20.17	Change of ownership - the Borrower 

 The Borrower ceases to be a direct or indirect wholly owned (share
capital and voting rights) subsidiary of KNOT Offshore Partners LP. 
  

	20.18	Change of ownership - KNOT Offshore Partners LP 

 KNOT Offshore Partners LP ceases to be in the
33.1/3 % ownership (share capital and voting rights subject to the limitations on voting rights relating to election of board members, amendments and certain other matters as set out in the Limited Partnership Agreement) of the Sponsor or if
any person or group of persons acting in concert (other than the Sponsor (or any wholly owned Subsidiaries thereof)) acquires more than 33.1/3 % of the share capital or voting rights of KNOT Offshore Partners LP. 

 

	20.19	Change of ownership - the General Partner 

 The General Partner ceases to be a direct or indirect wholly
owned (share capital and voting rights) subsidiary of the Sponsor. 
  

	20.20	Change of ownership - the Parent Guarantor 

 The Parent Guarantor ceases to be in the 50 % ownership
of TSSI, or ceases to be in the 50 % (directly or indirectly) ownership of NYK. 
 This Clause 20.20 shall not be applicable after the IPO Prepayment
– Loan A and the IPO Prepayment – Loan B have occurred. 
  

	20.21	Free Liquidity – KNOT Offshore Partners LP 

 KNOT Offshore Partners LP (on a consolidated basis) at
any time during the Loan Period has a Free Liquidity of less than USD 15,000,000.- plus USD 1,500,000.- for each owned vessel with employment contract with less than 12 months remaining tenor. From the time KNOT Offshore Partners LP and its
Subsidiaries own in total 8 vessels, the Free Liquidity shall be increased by USD 1,000,000.- for each additional vessel acquired (including vessels chartered in on bareboat 

  
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charterparties, vessels on long term financial leases and vessels on long term time charter parties (exceeding 12 months)) by KNOT Offshore Partners LP or any Subsidiary, plus USD 1,500,000.- for
each owned vessel with employment contract with less than 12 months remaining tenor. 
  

	20.22	Free Liquidity – The Parent Guarantor 

 The Parent Guarantor at any time during the Loan Period has
a Free Liquidity of less than USD 25,000,000.-, 
 This Clause 20.22 shall not be applicable after the IPO Prepayment – Loan A and the IPO
Prepayment – Loan B have occurred. 
  

	20.23	Free Liquidity – The KNOT Group 

 The KNOT Group (on a consolidated basis (including shipowning
companies owned more than 10 % on the gross method (actual share of EBITDA - KNOT Group, interest and debt)) any time during the Loan Period has a Free Liquidity of less than 4% of its Interest Bearing Debt measured quarterly. 

This Clause 20.23 shall not be applicable after the IPO Prepayment – Loan A and the IPO Prepayment – Loan B have occurred. 

 

	20.24	Working Capital – the Borrower 

 The Borrower at any time in the Loan Period has a negative Working
Capital. 
  

	20.25	Working Capital – the KNOT Group 

 The KNOT Group (on a consolidated basis (including shipowning
companies owned more than 10 % on the gross method (actual share of EBITDA - KNOT Group, interest and debt)) at any time in the Loan Period has a negative Working Capital. 

This Clause 20.25 shall not be applicable after the IPO Prepayment – Loan A and the IPO Prepayment – Loan B have occurred. 

 

	20.26	Minimum Equity Ratio 

 The Book Equity of KNOT Offshore Partners LP (on a consolidated basis) to Total
Assets is less than 30 %. 
  

	20.27	Minimum Equity Ratio - the KNOT Group 

 The Book Equity of the KNOT Group (on a consolidated basis
(including shipowning companies owned more than 10 % on the gross method (actual share of EBITDA - KNOT Group, interest and debt)) to Total Assets until 31 January 2014 is less than 19%, from 1 February 2014 until 31 December
2014 is less than 22.5%, and thereafter less than 25%, measured quarterly. 
 This Clause 20.27 shall not be applicable after the IPO Prepayment
– Loan A and the IPO Prepayment – Loan B have occurred. 

  
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	20.28	EBITDA 

 KNOT Offshore Partners LP (on a consolidated basis) at any time has an EBITDA (after payment of
actual docking costs) of less than 2.5 x interest costs (including interest rate swap costs). EBITDA shall be measured on a quarterly rolling basis (last 4 quarters). 
  

	20.29	EBITDA - KNOT Group 

 The KNOT Group (on a consolidated basis (including shipowning companies owned more
than 10 % on the gross method (actual share of EBITDA - KNOT Group, interest and debt)) at any time has an EBITDA (after payment of actual docking costs) of less than interest costs (including interest rate swap costs), instalments and hire in
respect of any vessels on bareboat charter (if not already deducted in the EBITDA). EBITDA shall be measured on a quarterly rolling basis (last 4 quarters) and first time 31 January 2014 (based on unaudited 4th quarter accounts). 
 Any breach of this Clause 20.29 shall automatically be repaired if the KNOT
Group’s consolidated Free Liquidity is more than USD 75,000,000.-. However, the maximum repair period is limited to four (4) consecutive quarters. 

This Clause 20.29 shall not be applicable after the IPO Prepayment – Loan A and the IPO Prepayment – Loan B have occurred. 

 

	20.30	Charterparty 

  

	(a)	The Charterparty for any reason whatsoever is terminated or cancelled, or 

  

	(b)	The Vessel is not delivered and accepted by the Charterer under the Charterparty within 31 March 2011. 

  

	20.31	Listing 

 KNOT Offshore Partners LP ceases to be listed on the New York Stock Exchange (NYSE). 

 

	20.32	General Partner 

  

	a)	The General Partner ceases to be the general partner in KNOT Offshore Partners LP, and/or 

  

	b)	the General Partner ceases to own minimum 2% of the interests in KNOT Offshore Partners LP, and/or 

  

	c)	the General Partner ceases the right to appoint three (3) out of seven (7) board directors to the board of directors in KNOT Offshore Partners LP (or if there is a change in the number of directors, the
corresponding numbers). 

  
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	20.33	Acceleration 

 On and at any time after the occurrence of an Event of Default and whilst such Event of
Default is continuing unremedied and unwaived, the Agent may, and shall (or shall refrain from) if so directed by the Majority Lenders, by notice to the Borrower:- 
  

	(a)	without prejudice to any parts of the Loans advanced hereunder cancel the Total Commitment; and 

  

	(b)	declare that all or part of the Loans, together with accrued interest, and all other amounts accrued under the Finance Documents are immediately due and payable, whereupon they shall become immediately due and payable.

  

	(c)	without prejudice to any of the Finance Parties’ other rights, with or without notice to the Borrower, take such other action as is available to the Finance Parties under the Finance Documents or by law.

  

	21.	THE AGENT 

  

	21.1	Appointment and duties of the Agent 

 The Lenders authorize the Agent to take such action on its behalf
and to exercise such powers as are specifically delegated to it by the terms of this Agreement together with all such powers as are reasonably incidental thereto. In performing its duties and functions hereunder, the Agent shall exercise the same
care as it normally exercises in making and handling loans and guarantee facilities for its own account. Any reference to the Agent in the Agreement or the Security Documents shall be understood as the Agent on behalf of the Lenders unless otherwise
specifically stated. Notwithstanding anything to the contrary, the Agent shall always follow the instructions from the Lenders. 
 In relation to the
Security Documents, the Lenders hereby irrevocably: 
  

	(a)	appoints the Agent to act as its agent and security trustee under and in connection with the Security Documents; 

  

	(b)	authorises the Agent on its behalf to sign, execute and enforce the Security Documents; 

  

	(c)	authorises the Agent on its behalf to perform the duties and to exercise the rights, powers, authorities and discretions that are specifically given to it under or in connection with the Security Documents, together
with any other incidental rights, powers, authorities and discretions; 

 or to a nominee who shall be approved by the Lenders. The Agent
shall act as security agent for and behalf of the Lenders and Swap Banks, provided however that in relation to the Security Documents the Agent shall receive instructions from the Lenders only. 

 

	21.2	Relationship 

 The relationship between the Agent and the Lenders is that of agent and principal only,
and nothing herein shall be construed so as to constitute the Agent as a trustee for the Lenders or impose on any of them any duties or obligations other than those for which express provision is made in this Agreement. 

  
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	21.3	Information 

 The Agent will promptly advise the Lenders of each notice received by it from the Obligors
hereunder. The Agent shall not be under any obligation towards the Lenders to ascertain or enquire as to the performance or observance of any of the terms or conditions hereof, other than a failure to make payment of sums due. 

 

	21.4	Default 

 The Agent shall not (with the exception of the Borrower’s failure to pay sums due) be
deemed to have knowledge of the occurrence of any Event of Default unless the Agent has received notice thereof from an Obligor or the Lenders. In the event the Agent receives such notice, the Agent shall promptly give notice thereof to the Lenders
and GIEK. The Agent shall take such action with respect to such Event of Default as may be directed by the Lenders and GIEK provided that, unless and until the Agent shall have received such directions, the Agent may (but shall not be obliged to)
take such action or refrain from taking such action, with respect to such Event of Default as the Agent shall in its absolute discretion deem advisable in the best interest of the Lenders and GIEK, provided always that the Agent shall advise the
Lenders and GIEK of such action and shall consult with them as soon as possible thereafter in order to determine future action. 
  

	21.5	Rely on communication 

 In performing its duties and exercising its powers hereunder, the Agent shall be
entitled to rely on any communication believed by it to be genuine and to have been sent or signed by the person by whom it purports to have been sent or signed. 
  

	21.6	Responsibility of the Agent 

 The Agent takes no responsibility for the truth of any covenants,
representations or undertakings given or made herein or for the validity, effectiveness, adequacy, legality or enforceability of this Agreement or any of the Security Documents. Neither the Agent nor any of its directors, officers, employees or
attorneys-in-fact shall be responsible for any action taken or omitted to be taken by it or them under or in connection herewith, except for its or their own gross negligence or willful misconduct. 

 

	21.7	Exclusion of liability 

 In respect of Eksportfinans, the Agent will not be liable for any action taken
by it under or in connection with the Agreement or the Security Documents, unless directly caused by negligence. 
  

	21.8	Responsibility of the Lenders 

 Each of the Lenders shall be responsible for making its own independent
investigation of the financial condition and affairs of the Obligors in connection with the making and continuance of the Loans and has made its own appraisal of the creditworthiness of the Obligors. 

 

	21.9	Set-off 

 If any of the Lenders at any time receives or recovers by set-off or otherwise any sum which it
is obliged (or being so entitled has elected) to apply towards payment of any amount due to it hereunder 

  
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(otherwise than amounts specifically payable to any of the Lenders under the terms of this Agreement) then Eksportfinans or the Commercial Lenders shall be obliged to offer to the other party
through the Agent such payment by way of adjustment as may be necessary to ensure that at all times Eksportfinans or the Commercial Lenders receives the portion of principal, interest, fees and commissions due to it under this Agreement, however,
that such offer shall be conditional upon Eksportfinans or the Commercial Lenders who may accept such offer (the “Accepting Finance Party”) agreeing to indemnify Eksportfinans or the Commercial Lenders making such offer (the “Offering
Finance Party”) on terms reasonably acceptable to the Offering Finance Party against any loss (other than the loss suffered by such payment by way of adjustment) which the Offering Finance Party may subsequently suffer by reason of having made
such payment by way of adjustment to such Accepting Finance Party. 
  

	21.10	Distribution of payments 

 The Agent shall pay with funds having same day value as the funds received to
the order of each of the Lenders each such party’s proportionate share of every sum of money received by the Agent pursuant to the Agreement or the Security Documents (with the exception of any amounts, which by the terms of the Agreement or
the Security Documents, are paid to the Agent for the account of the Agent alone or specifically for the account of any of the Lenders) and until so paid such amount shall be held by the Agent on trust absolutely for the relevant party. 

 

	21.11	Reimbursement of cost 

 The Lenders shall ratably in accordance with its respective participation in the
Loans (as the case may be), indemnify and hold the Agent harmless against any and all costs, claims, expenses (including legal fees), loss or liability, which the Agent may suffer or incur by reason of any action taken or omitted by it as the Agent
hereunder to the extent that the Agent shall not have been reimbursed therefore by the Obligors, unless and to the extent such loss or liability is caused by the gross negligence (negligence in respect of the Lenders) or willful misconduct of the
Agent. 
  

	21.12	Resignation 

 The Agent may and shall upon request from any of the Lenders and with the consent of the
Borrower resign its appointment hereunder by giving written notice to that effect to each of the Lenders and to the Borrower, provided that no such resignation shall be effective until a successor for the Agent is appointed in accordance with the
succeeding provisions of this clause. If the Agent gives notice of its resignation, then any of the Lenders or any reputable and experienced bank or other financial institution may be appointed as a successor to the Agent by the Lenders during the
period of such notice. If no such successor is so appointed then (A) the outgoing Agent shall be discharged from any further obligation under this Agreement but shall remain entitled to the benefit of the provisions of this clause and
(B) its successor and each of the other parties hereto shall have the same rights and obligations amongst themselves as they would have had if such successor had been a party hereto. The change of Agent shall be at no cost to the Borrower. 

  
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	22.	FEES 

  

	22.1	Commitment fee - Loan A 

 The Borrower shall pay to the Agent (for distribution to Eksportfinans) a
commitment fee equal to 40 % of the Margin Loan A calculated on the undrawn portion of Loan A. Such commitment fee shall be calculated from 16 December 2010 and be payable at the Drawdown Date. 

 

	22.2	Commitment fee - Loan B 

 The Borrower shall pay to the Agent (for distribution to the Commercial
Lenders) a commitment fee equal to 40 % of the Margin Loan B calculated on the undrawn portion of Loan B. Such commitment fee shall be calculated from 16 December 2010 and be payable at the Drawdown Date. 

 

	22.3	Commitment fee – Revolving Credit Facility 

 The Borrower shall pay to the Agent (for distribution
to the Commercial Lenders) a commitment fee equal to 40 % of the Margin Revolving Credit Facility calculated on the daily undrawn portion of the Revolving Credit Facility. Such commitment fee shall be calculated from the Effective Date and be
payable quarterly in arrears on the last day of each fiscal quarter (or such earlier date which the Revolving Credit Facility is terminated). 
  

	22.4	Arrangement fee - Loan A 

 The Borrower shall pay to the Agent (for further distribution to Eksportfinans
and GIEK) a non-refundable fee of USD 448,000.- (USD 28,000.- to Eksportfinans and USD 420,000.- to GIEK) payable on the date hereof. The arrangement fee shall be payable whether or not Loan A is ever drawn pursuant to this Agreement
upon demand from the Agent. 
  

	22.5	Arrangement fee - Loan B 

 The Borrower shall pay to the Agent (for further distribution to the
Commercial Lenders) a non-refundable fee of USD 512,000.- payable on the date hereof. The Arrangement fee shall be payable whether or not the Loans are ever drawn pursuant to this Agreement upon demand from the Agent. 

 

	22.6	Arrangement fee – Revolving Credit Facility 

 The Borrower shall pay to the Agent (for further
distribution to the Commercial Lenders on a prorate basis) a non-refundable fee of USD 200,000.- payable on the Effective Date. The Arrangement fee shall be payable whether or not the Revolving Credit Facility is ever drawn pursuant to this
Agreement upon demand from the Agent. 
  

	22.7	Structuring fee 

 The Borrower shall pay to the Agent a structuring fee in accordance with a fee letter
to be entered into between the Borrower and the Agent. 

  
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	22.8	Guarantee commission 

 The Borrower shall pay to the Agent (for distribution to GIEK) a guarantee
commission of 1.75% per annum of the outstanding amounts under the GIEK Guarantee, payable semi-annually in arrears, the first time6 months after the Drawdown Date. 
  

	22.9	Agency fee 

 The Borrower shall pay to the Agent a non-refundable annual agency fee in accordance with a
fee letter to be entered into between the Borrower and the Agent. 
  

	23.	EXPENSES 

  

	23.1	Initial and special costs 

 The Borrower shall promptly following demand pay the Agent the amount of all
reasonable costs and expenses (including legal fees) reasonably and properly incurred by the Agent, the Mandated Lead Arrangers and/or the Lenders in connection with: 
  

	(a)	the negotiation, preparation, printing and execution of the Finance Documents and any other documents referred to in the Finance Documents; 

 

	(b)	execution and registration of the Security Documents; 

  

	(c)	any amendment, waiver, consent or suspension of rights (or any proposal for any of the foregoing) requested (or, in the case of a proposal, made) by or on behalf of the Borrower and relating to the Finance Documents or
a document referred to in the Finance Documents; and 

  

	(d)	any other matter, not being of an ordinary administrative nature and arising out of or in connection with the Finance Documents. 

  

	23.2	Enforcement costs 

 Following an Event of Default, the Borrower shall promptly following demand pay to
the Finance Parties the amount of all costs and expenses (including legal fees) properly incurred by it in connection with the enforcement of or the preservation of, any rights under the Finance Documents. 

 

	24.	INDEMNITIES 

  

	24.1	Currency indemnity 

  

	(a)	If a Finance Party receives an amount in respect of the Borrower’s liability under the Finance Documents or if that liability is converted into a claim, proof, judgement or order in a currency other than the
currency in which the amount is expressed to be payable under the Finance Documents, the Borrower shall indemnify that the Finance Party as an independent obligation against any loss or liability arising out of or as a result of the conversion of
the other currency into the currency owed under the Finance Documents. 

  
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	(b)	The Borrower waives any right it may have by law to pay any amount under the Finance Documents in a currency other than that in which it is expressed to be payable. 

 

	24.2	Other indemnities 

 The Borrower shall forthwith on demand indemnify each Finance Party against any loss
or liability (including funding breakage costs) which that Lender reasonably and properly incurs and which the Finance Party certifies (in a certificate containing reasonable detail) that it has incurred as a consequence of: 

 

	(a)	the occurrence of any Event of Default; 

  

	(b)	the operation of Clause 20.33 (Acceleration); 

  

	(c)	any repayment or prepayment of principal or payment of an overdue amount being made otherwise than on the last day of a relevant Interest Period relative to the amount so repaid, prepaid or paid; and 

 

	(d)	investigation(s) of a potential Event of Default, and 

  

	(e)	a disbursement of a Loan not being made after the Borrower has delivered a Drawdown Notice or the Loans (or part of the Loans) not being prepaid in accordance with a notice of prepayment. 

The liability of the Borrower in each case includes any loss of margin or other loss or expense on account of funds borrowed, contracted for or utilised to
fund any amount payable under the Finance Documents, but the Borrower’s liability shall in no circumstances extend to any loss or expense to the extent that it arises as a consequence of any gross negligence or wilful default of a Finance
Party. 
  

	25.	CALCULATIONS 

 Interest and fees payable under Clauses 9 (Interest) and 22 (Fees) accrue from day to
day and are calculated on the basis of the actual number of days elapsed and a year of 360 days. 
  

	26.	AMENDMENTS AND WAIVERS 

  

	26.1	Majority Lenders 

  

	(a)	Subject to Clause 26.2 (All Lenders), any term of this Agreement and the Security Documents may only be amended or waived with the written agreement of the Borrower and, if authorised by the Majority Lenders, the Agent.
The Agent shall effect, on behalf of the Majority Lenders, any amendment or waiver to which they have agreed. 

  

	(b)	The Agent shall promptly notify the Lenders of any amendment or waiver effected under paragraph (a) above and any such amendment or waiver shall be binding on all the Lenders. 

  
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	26.2	All Lenders 

 An amendment or waiver which relates to: 

 

	(a)	reduction of the Margin Loan A and/or the Margin Loan B and the commitment fees, 

  

	(b)	extension of the due date for or the reduction of the amount of any payment of principal, interest or other amount payable under this Agreement, 

 

	(c)	change in the currency in which any amount is payable under this Agreement, 

  

	(d)	extension of the Availability Period, 

  

	(e)	change of this Clause 26.2, 

  

	(f)	any release of any security created by any Security Document, any changes in any Security Document or the security requirements evidenced by the Security Documents or this Agreement 

 

	(g)	a term of this Agreement which expressly requires the consent of each Lender and/or 

  

	(h)	a change of the definition of “Majority Lenders “, 

 may not be effected without the consent of each
Lender. 
  

	26.3	Waivers and remedies cumulative 

 The rights of the Finance Parties under the Finance Documents: 

 

	(a)	may be exercised as often as necessary; 

  

	(b)	are cumulative and not exclusive of its rights under the general law; and 

  

	(c)	may be waived only in writing and specifically. 

 Delay in exercising or
non-exercise of any such right is not a waiver of that right. 
  

	27.	CHANGES TO THE PARTIES 

  

	27.1	Transfer by the Borrower 

 The Obligors may not assign, transfer, novate or dispose of any of, or any
interest in, its rights and/or obligations under the Finance Documents. 

  
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	27.2	Transfers by Lenders 

 Any of the Lenders (the “Existing Lender”) may at any time assign,
transfer or novate any of its rights and obligations under this Agreement to another bank or financial institution (such bank or institution being the “New Lender”), provided that (save at any time when an Event of Default exists and has
not been waived or remedied) no such assignment, transfer or novation may be made without the prior written consent also of the Borrower), such consent not to be unreasonably withheld or delayed and to be deemed given in the event of no adverse
response thereto from the Borrower within five (5) Business Days of its receipt of a request for approval of any such assignment, transfer or novation to any New Lender. The Borrower shall not be liable for the transactions costs incurred in
connection with any such transfers from the Existing Lender to a New Lender. 
  

	28.	PRO RATA SHARING 

  

	28.1	Redistribution 

 If any amount owing by the Borrower under this Agreement to a Lender (the
“Recovering Lender”) is discharged by payment, set-off or any other manner other than through the Agent in accordance with Clause 10 (Payments) (a “recovery”), then: 

 

	(a)	the recovering Lender shall, within three Business Days, notify details of the recovery to the Agent; 

  

	(b)	the Agent shall determine whether the recovery is in excess of the amount which the recovering Lender would have received had the recovery been received by the Agent and distributed in accordance with Clause 10
(Payments); 

  

	(c)	subject to Clause 28.3 (Exceptions), the recovering Lender shall, within three (3) Business Days of demand by the Agent, pay to the Agent an amount (the “redistribution”) equal to the excess;

  

	(d)	the Agent shall treat the redistribution as if it were a payment by the Borrower under this Agreement and shall pay the redistribution to the Lender (other than the recovering Lender) in accordance with Clause 10.7
(Partial payments); and 

  

	(e)	after payment of the full redistribution to the Agent, the recovering Lender will be subrogated to the portion of the claims paid under paragraph (d) above and the Borrower will owe the recovering Lender a debt
which is equal to the redistribution, immediately payable and of the type originally discharged. 

  

	28.2	Reversal of redistribution 

 If under Clause 28.1 (Redistribution): 

 

	(a)	a recovering Lender must subsequently return a recovery, or an amount measured by reference to a recovery, to the Borrower; and 

  

	(b)	the recovering Lender has paid a redistribution in relation to that recovery, 

  
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 each Lender shall, within three Business Days of demand by the recovering Lender through the Agent, reimburse the
recovering Lender all or the appropriate portion of the redistribution paid to that Lender. Thereupon, the subrogation in Clause 28.1 (e) will operate in reverse to the extent of the reimbursement. 

 

	28.3	Exception 

  

	(a)	A recovering Lender needs not to pay a redistribution to the extent that it would not, after the payment, have a valid claim against the Borrower in the amount of the redistribution pursuant to Clause 28.1 (e).

  

	(b)	A Lender is not entitled to participate in a redistribution if the redistribution results from the proceeds of a judicial enforcement order obtained by the recovering Lender and the other Lenders had adequate notice of
and opportunity to participate in the proceedings concerned or bring their own proceedings but did not do so. 

  

	29.	SEVERABILITY 

 If a provision of this Agreement is or becomes illegal, invalid or unenforceable in any
competent jurisdiction, that shall not affect the validity or enforceability in that jurisdiction of any other provision of this Agreement or the validity or enforceability in other jurisdictions of that or any other provision of this Agreement.

  

	30.	NOTICES 

  

	30.1	Giving of notices 

 All notices or other communications under or in connection with this Agreement shall
be given or made in writing, by letter, telefax or S.W.I.F.T. Any such notice or communication will be deemed to be given or made as follows: 
  

	(a)	if by letter, when delivered at the address of the relevant Party; and 

  

	(b)	if by telefax or S.W.I.F.T., when received. 

 However, a notice given in accordance with the above but received
on a day which is not a Business Day or after 4:00 p.m. in the place of receipt will only be deemed to be given at 9:00 a.m. on the next Business Day in that place. 
  

	30.2	Addresses for notices 

  

	(a)	The address, the telefax number and the S.W.I.F.T. code of each Party (other than the Agent and the Borrower) for all notices or other communications under or in connection with this Agreement are those notified by that
Party for this purpose to the Agent on or before the date it becomes a Party; or any other notified by that Party for this purpose to the Agent by not less than five Business Days’ notice. 

  
 62/74 

	(b)	The address, the telefax number and the S.W.I.F.T. code: 

  

	 	(i)	of the Agent is: 

 Nordea Bank Norge ASA 

P.O.Box 1166 Sentrum 
 N –
0107 Oslo - Norway 
 Tel.:     +47 22 48 49 71 

Fax.:    +47 22 48 66 68 

S.W.I.F.T. Code: NDEANOKK 

Attn.:    Shipping Department 
  

	 	(ii)	of the Borrower is: 

 KNOT Shuttle Tankers 17 AS 

Smedasundet 40 
 P.O.Box 2017

 N – 5504 Haugesund 

Norway 
 Telefax:
  +47 52 70 40 40 
 Attn.:       Chairman of the Board 

or such other address and/or telefax number and/or marked for such other attention as the Agent may notify to the other Parties by not less
than five (5) Business Days’ prior notice. 
  

	(c)	All notices from or to the Borrower related to this Agreement shall be sent through the Agent. 

  

	(d)	The Agent shall, promptly upon request from any Party, give to that Party the address and/or the telefax number of any other Party applicable at the time for the purposes of this Clause 30.2. 

 

	31.	JURISDICTION 

 For the benefit of the Agent and each Lender, the Borrower agrees that the courts of
Norway have jurisdiction to settle any disputes in connection with this Agreement. 
 The Borrower herewith submits to the
non-exclusive jurisdiction of the Oslo district court. Nothing in this Clause 30 shall limit the right of the Agent or any Lender to start proceedings against the Borrower in any other court of competent
jurisdiction. 

  
 63/74 

	32.	GOVERNING LAW 

 This Agreement shall be governed by and construed in accordance with Norwegian law. 

o o o O o o o 

  
 64/74 

 SCHEDULE 1 

LENDERS AND COMMITMENTS 
  

									
	 Loan A
	  	Amount	 	  	Share	 
	 Eksportfinans ASA

P.O.Box 1601 Vika

0119 Oslo

Norway
	  	 	USD 40,000,000.-	  	  	 	100 	% 
			
	 Loan B
	  				  			
	 DNB Bank ASA

P.O.Box 7100 Sentrum

5020 Bergen

Norway
	  	 	USD 5,000,000.-	  	  	 	50 	% 
	 Nordea Bank Norge ASA

P.O.Box 1166 Sentrum

0107 Oslo

Norway
	  	 	USD 5,000,000.-	  	  	 	50 	% 
	 Total Loan B
	  	 	USD 10,000,000.-	  	  	 	100 	% 
	 Revolving Credit Facility
	  				  			
	 DNB Bank ASA

P.O.Box 7100 Sentrum

5020 Bergen

Norway
	  	 	USD 10,000,000.-	  	  	 	50 	% 
	 Nordea Bank Norge ASA

P.O.Box 1166 Sentrum

0107 Oslo

Norway
	  	 	USD 10,000,000.-	  	  	 	50 	% 
	 Total Revolving Credit Facility
	  	 	USD 20,000,000.-	  	  	 	100 	% 

  
 65/74 

 SCHEDULE 2 

Intentionally left blank 

  
 66/74 

 SCHEDULE 3 

FORM OF 
 DRAWDOWN NOTICE

  

	To:	Nordea Bank Norge ASA as Agent 

 P.O.Box 1166 Sentrum 

N – 0107 Oslo - Norway 

Tel.:     +47 

Fax.:     +47 

Attn.:    [    ] 

S.W.I.F.T. Code: [    ] 

Date:     2011 
 USD 120,000,000
LOAN AGREEMENT DATED 11 FEBRUARY 2011 (THE “AGREEMENT”) 
 We refer to Clause 5 of the Agreement. Capitalized terms used in this Drawdown
Notice and not defined herein shall have the same meaning given to them in the Agreement. 
  

	l. A.	We wish to draw Loan A as follows: 

  

	 	(a)	Drawdown Date:                      

 

	 	(b)	Instructions for payment of Loan A:                             

  

	    B.	We wish to draw Loan B as follows: 

  

	 	(a)	Drawdown Date:                      

 

	 	(b)	Interest Period:                      

 

	 	(c)	Instructions for payment of Loan B:                             

  

	    C.	We wish to draw the Revolving Credit Facility as follows: 

  

	 	(a)	Amount USD:                      

 

	 	(b)	Drawdown Date:                      

 

	 	(c)	Interest Period:                      

 

	 	(d)	Instructions for payment of the Revolving Credit Facility :                      

 

	2.	We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Drawdown Notice. 

  
 67/74 

	3.	We further confirm that: 

  

	 	(a)	no event or circumstance has occurred and is continuing, which constitutes, or which with the giving of notice or lapse of time or both, would constitute an Event of Default under the Agreement; and that

  

	 	(b)	the representations and warranties contained in Clause 18 (Representation and Warranties) of the Agreement are true and correct at the date hereof as if made with respect to the facts and circumstances existing at such
date. 

 By: 
 KNOT SHUTTLE TANKERS 17 AS 

Authorised Signatory 

  
 68/74 

 SCHEDULE 4 

FORM OF 
 RENEWAL NOTICE

  

	To:	Nordea Bank Norge ASA as Agent 

 P.O.Box 1166 Sentrum 

N – 0107 Oslo - Norway 

Tel.:     +47 

Fax.:     +47 

Attn.:   [    ] 

S.W.I.F.T. Code: [    ] 

Date:      2011 
 USD 120,000,000
LOAN AGREEMENT DATED 11 FEBRUARY 2011 (THE “AGREEMENT”) 
 We refer to Clause 8.1 (a) in the Agreement. Capitalized terms used in this
Renewal Notice and not defined herein shall have the meaning given to them in the Agreement. 
 We hereby: 

 

	1.	request an Interest Period for Loan B in respect of [—] months from the next Interest Payment Day; and 

 

	2.	confirm that 

  

	 	(i)	no event or circumstance has occurred and is continuing, which constitutes, or which with the giving of notice or lapse of time or both, would constitute an Event of Default under the Agreement; and that

  

	 	(ii)	the representations and warranties contained in Clause 17 (Representations and warranties) of the Agreement are true and correct at the date hereof as if made with respect to the facts and circumstances existing at such
date. 

 By: 
 KNOT SHUTTLE TANKERS 17 AS 

Authorised signatory 

  
 69/74 

 SCHEDULE 5 

FORM OF COMPLIANCE CERTIFICATE 
  

	To:	Nordea Bank Norge ASA 

 Attn: 

Telefax No. 
 Date: [{day}] [{month}] [{year}]

 SECURED TERM LOAN FACILITY AGREEMENT DATED 11 FEBRUARY 2011 (THE “AGREEMENT”) 

With reference to the Agreement we hereby confirm as follows: 
  

					
	 FREE LIQUIDITY - KNOT Offshore Partners LP
  

Requirement > USD 15,000,000.-
  

(plus USD 1,500,000.- for each owned vessel with employment contract with less than 12 months remaining tenor.

 
 From the time KNOT Offshore Partners LPand its subsidiaries own in total eight (8)
vessels, the minimum free liquidity requirement of USD 15,000,000.- set out above shall be increased by USD 1,000,000.- for each additional vessel acquired by KNOT Offshore Partners LPor any subsidiary, plus USD1,500,000.- for each owned vessel with
employment contract with less than 12 months remaining tenor.)
	  	 NOK
  

==>
	  	  
  

Compliance: Yes / No

			
	 WORKING CAPITAL - the Borrower
  

Requirement > 0
	  	 NOK
  

==>
	  	  
  

Compliance: Yes / No

			
	 EBITDA - KNOT Offshore Partners LP (consolidated)
  

A      EBITDA
  

B      Interest costs

 
 Requirement A/B>2.5
	  	 NOK
  

==>
	  	  
  

Compliance: Yes / No

  
 70/74 

									
	 MINIMUM EQUITY RATIO - MLP Group
  

A      Book Equity
	  	   
  
	 NOK 
 ==>
	    
   
	  	 	Compliance: Yes / No	  
			
	 B      Total Assets
	  				  			
			
	 Requirement A/B > 30 %
	  				  			
			
	 MARKET VALUE VESSEL - ref Clause 18.20
	  				  			
			
	A = Market Value Vessel	  	 	USD	  	  			
			
	B = Loans	  	 	USD	  	  			
			
	 Requirement :
  (i) Year 4 A >
100 % of B
 (ii) Year 5 A > 125 % of B
  

Valuation report from [    ] dated [    ] enclosed

 
 Valuation report from [    ] dated [    ]
enclosed
	  				  			
			
	CHANGES IN MANAGEMENT, BOARD OF DIRECTORS AND AUDITORS	  				  			
			
	 Changes in management and/or board of directors in the Borrower
	  				  	 
  
	Yes / No
 give info if yes
	  
   

			
	 Changes in management and/or board of directors in KNOT Offshore Partners LP
	  				  	 
  
	Yes / No
 give info if yes
	  
   

			
	 Changes in management and/or board of directors in KNOT Shuttle Tankers AS
	  				  	 
  
	Yes / No
 give info if yes
	  
   

			
	 Changes of auditors
	  				  	 
  
	Yes / No
 give info if yes
	  
   

 It is hereby certified, by the undersigned, that there are no known or pending Events of Default as of this date. Furthermore,
it is hereby certified that the above representations are true and correct. 
 The above covenant calculations are made as of, and in respect of the 3
months period ending on                      

  
 71/74 

 Certified on this      day of
                     
  

			
	KNOT SHUTTLE TANKERS 17 AS
		
	By	 	  

		
	Date	 	  

	
	KNOT OFFSHORE PARTNERS L.P
		
	By	 	  

		
	Date	 	  

	
	KNOT SHUTTLE TANKERS AS
		
	By	 	  

		
	Date	 	  

  
 72/74 

 EXECUTION PAGE 

The Borrower: 
 KNOT SHUTTLE TANKERS 17 AS 

 

                          
               
  

                          
               
 Name in block letters 

The Guarantor: 
 KNOT OFFSHORE PARTNERS LP 

 

                          
               
  

                          
               
 Name in block letters 

The Guarantor: 
 KNOT SHUTTLE TANKERS AS 

 

                          
               
  

                          
               
 Name in block letters 

The Parent Guarantor: 
 KNUTSEN NYK OFFSHORE TANKERS
AS 
  

                          
               
  

                          
               
 Name in block letters 

  
 73/74 

 The Lender for Loan A: 

EKSPORTFINANS ASA 
  

                          
               
  

                          
               
 Name in block letters 

As lender for Loan B and the Revolving Credit Facility, Bookrunner and 

Mandated Lead Arrangers 
 DNB BANK ASA 

 

                          
               
  

                          
               
 Name in block letters 

As lender for Loan B and the Revolving Credit Facility, Bookrunner, 

Mandated Lead Arrangers and Agent 
 NORDEA BANK NORGE
ASA 
  

                          
               
  

                          
               
 Name in block letters 

  
 74/74EX-4.14

 Exhibit 4.14 

Execution version 
 Dated 9 April
2013 
 ELEVENTH SUPPLEMENTAL AGREEMENT 

between 
 KNOT SHUTTLE TANKERS
18 AS 
 as Borrower 
 and

 HSH NORDBANK AG 
 as
Agent 
  
  

Relating to a USD 85,000,000.- 

Loan Agreement dated 25 April 2007 

as amended by supplemental agreements 

dated 28 August 2008, 

18 February 2010, 1 July 2010, 29 October 2010, 

12 November 2010, 16 November 2010, 2 March 2011, 

12 April 2011, 25 April 2012 

and as amended and restated by tenth supplemental agreement dated 19 February 2013 

in respect of the Borrower’s vessel 

“WINDSOR KNUTSEN” 
  

 
  

 
 

 

 THIS ELEVENTH SUPPLEMENTAL AGREEMENT (the “Supplemental Agreement”) is made the 9th day of April 2013 between: 
  

	(1)	KNOT SHUTTLE TANKERS 18 AS, (organisation no 998 943 035), Smedasundet 40, P.O.Box 2017, 5504 Haugesund, Norway (hereinafter called the “Borrower”), and 

 

	(2)	THE FINANCIAL INSTITUTIONS listed on the signature page as banks (the “Banks”); 

  

	(3)	HSH NORDBANK AG, Gerhart-Hauptmann-Platz 50, 20095 Hamburg, Germany as agent (the “Agent”). 

WHEREAS 
  

	A.	The Banks have granted the Borrower a secured term loan in the amount of USD 85,000,000.- pursuant to a loan agreement dated 25 April 2007 as amended by a first supplemental agreement dated 28 August
2008, a second supplemental agreement dated 18 February 2010, a third supplemental agreement dated 1 July 2010, a fourth supplemental agreement dated 29 October 2010, a fifth supplemental agreement dated 12 November 2010, a sixth
supplemental agreement dated 16 November 2010, a seventh supplemental agreement dated 2 March 2011, an eighth supplemental agreement dated 12 April 2011, a ninth supplemental agreement dated 25 April 2012 and amended and restated
by a tenth supplemental agreement dated 19 February 2013 entered into between the Borrower, Knutsen Bøyelaster XI KS, the Banks and the Agent (hereinafter together called the “Loan Agreement”). The outstanding under the
Loan Agreement is at the date hereof USD 56,400,000,- plus interest from the last Interest Payment Date. 

  

	B.	The Borrower has requested that the Lenders’ consent to the Borrower becoming wholly owned, directly or indirectly, by KNOT Offshore Partners LP a Marshall Islands limited partnership organised under the laws of
the Marshall Islands which is to be listed on the New York Stock Exchange and which will effect such acquisition by acquiring via its wholly-owned subsidiary KNOT Offshore Partners UK LLC all of the shares in KNOT Shuttle Tankers AS from Knutsen NYK
Offshore Tankers AS in connection with the initial public offering of the common units representing limited partner interests in KNOT Offshore Partners LP (the “IPO”). 

 

	C.	Under the proposed terms of the IPO, the proceeds of the IPO are to be applied in part in providing funds directly or indirectly to the Borrower by way of one or more intercompany loans or capital contributions from
KNOT Offshore Partners LP to the Borrower to enable it to repay the Second Windsor Loan in full. 

  

	D.	The Borrower has requested that the Banks consent as from the Effective Date to i.a. (i) certain amendments to the repayment instalments for Tranche A and Tranche B, (ii) the transfer of ownership of KNOT Shuttle
Tankers AS from Knutsen NYK Offshore Tankers AS to KNOT Offshore Partners LP as contemplated by Whereas B and (iii) the entering into of the IPO described in Whereas B and the transactions entered into, or to be entered into, by the Borrower,
KNOT Shuttle Tankers AS and KNOT Offshore Partners LP in connection therewith. 

  

	E.	The Banks have approved the Borrower’s request subject to the execution and delivery of this Supplemental Agreement and that the terms and condition of this Supplemental Agreement are complied with.

  
 2/8 

	F.	This Supplemental Agreement shall be construed as being in all respect supplemental to the Loan Agreement. 

NOW IT IS HEREBY AGREED AS FOLLOWS: 
  

	1.	DEFINITIONS 

  

	1.01	In this Supplemental Agreement, unless the context otherwise requires, terms defined in the Loan Agreement shall bear the same meaning when used herein. In addition, the Loan Agreement means the Loan Agreement as
supplemented and amended by this Supplemental Agreement. 

  

	1.02	In this Supplemental Agreement, the following words and expressions shall have the meaning set opposite them below: 

“Amended and Restated Loan Agreement” 

means the Loan Agreement as amended and restated by this Supplemental Agreement in the form set out in Schedule 1 (Form of Amended and
Restated Loan Agreement). 
 “Effective Date” 

means the date when IPO proceeds have been received by KNOT Offshore Partners LP and all conditions precedent have been fulfilled. 

 

	2.	REPRESENTATION AND WARRANTIES 

  

	2.01	The Borrower represents and warrants to the Banks that: 

  

	 	(a)	The Borrower remains at the date hereof duly formed and is validly existing in good standing under the laws of the Kingdom of Norway, has full power to carry on its business as it is now being conducted and has complied
with all statutory and other requirements relative to such business. 

  

	 	(b)	All corporate actions required on the part of the Borrower and its respective directors and officers have been taken in order to authorise this Supplemental Agreement and the Security Documents, and the execution and
performance thereof, in accordance with the laws of Norway and with its own constitution, and this Supplemental Agreement and the Security Documents have been validly executed, and are binding upon the Borrower and enforceable against it in
accordance with its terms. 

  

	 	(c)	All approvals required from any government, tax, monetary or other authority to enable the Borrower to make this Supplemental Agreement and to borrow and repay the Loan and to pay interest thereon without deduction or
withholding of any taxes or other money and to execute the Security Documents to which it is a party, have been obtained and are in full force and effect. 

  
 3/8 

	 	(d)	The making of this Supplemental Agreement and the execution of the Security Documents (where applicable) by the Borrower will not infringe any other agreement to which the Borrower is a party. 

 

	 	(e)	The Borrower is at the time of signing of this Supplemental Agreement not in default under any other agreement to which it is a party nor is it a subject of any actual, pending or threatened legal proceedings either to
which has or may have a material adverse effect on its financial condition. 

  

	 	(f)	The Vessel will upon the Effective Date be: 

  

	 	(i)	in the absolute and (save as the Mortgage and the second mortgage) unencumbered ownership of the Borrower. 

  

	 	(ii)	registered in the name of the Borrower in the Norwegian International Ship Register. 

  

	 	(iii)	operationally seaworthy and in every way fit for service and classed with the highest class of a classification society acceptable to the Agent. 

 

	 	(iv)	free of all requirements and overdue recommendations affecting class of said classification society. 

  

	 	(v)	insured in accordance with the provisions of Clause 17.5 of the Loan Agreement. 

  

	3.	CONDITIONS 

  

	3.01	The obligations of the Banks to accept as from the Effective Date the requests mentioned in Whereas B, shall be subject to the condition that the Agent on behalf of the Banks has received the following documents
in form satisfactory to the Agent and its legal advisors (to the extent not satisfied as a condition precedent to the drawing under the Loan Agreement): 

  

	 	(a)	This Supplemental Agreement duly executed by the parties hereto, and 

  

	 	(b)	The Certificate of incorporation or similar in respect of the Borrower and KNOT Offshore Partners LP, and 

  

	 	(c)	The articles of association in respect of the Borrower, and 

  

	 	(d)	The Partnership Agreement for KNOT Offshore Partners LP, and 

  

	 	(e)	A certificate of good standing for KNOT Offshore Partners LP, and 

  

	 	(f)	A copy of the certificate of incorporation and constitutional documents of KNOT Offshore Partners UK LLC and KNOT Offshore Partners GP LLC, and 

 

	 	(g)	Resolutions from the board of directors of the Borrower in respect of this Supplemental Agreement, and 

  
 4/8 

	 	(h)	The Security Documents duly executed by the Borrower (to the extent applicable), and 

  

	 	(i)	Closing of the IPO, and capitalisation of KNOT Offshore Partners LP, has been completed on terms satisfactory to the Banks, and 

  

	 	(j)	Satisfactory evidence that KNOT Offshore Partners LP is listed at the New York Stock Exchange, and 

  

	 	(k)	Satisfactory evidence that KNOT Offshore Partners LP is the direct or indirect owner of 100 % of the shares and voting rights in the Borrower; and 

 

	 	(l)	Evidence that:- 

  

	 	(i)	the Vessel is registered in the name of the Borrower in the Norwegian International Ship Register, 

  

	 	(ii)	the Vessel is in the absolute and registered ownership of the Borrower, 

  

	 	(iii)	the Mortgage is registered against the Vessel in favour of the Agent with first priority, and 

  

	 	(iv)	the Vessel complies with the ISM Code requirement set forth in Clause 17.8 of the Loan Agreement, and 

  

	 	(m)	A copy of the omnibus agreement, evidencing the Sponsor Undertaking, and 

  

	 	(n)	Satisfactory evidence that all fees in accordance with Clause 3.03 below has been paid, and 

  

	 	(o)	Favourable legal opinions as the Agent may require from the jurisdictions involved. 

  

	3.02	The following condition shall be fulfilled within 5 Business Days after the Effective Date: 

  

	 	(a)	Satisfactory evidence that the Second Windsor Loan has been repaid in full. 

  

	3.03	Further, the obligation of the Banks to accept the Borrower’s request in Whereas B shall be subject to that the Borrower shall pay to the Agent (on behalf of the Banks) (i) on demand all costs, expenses
and disbursements (including but not limited to legal fees and printing, publication and travelling expenses) incurred by the Banks in negotiation, preparation and completion of this Supplemental Agreement and the Security Documents and the
maintenance, protection and enforcement of any of their rights thereunder, and (ii) a non refundable handling fee of 10 bps calculated on the outstanding Loan on the Effective Date and payable on the Effective Date. 

 

	4.	AMENDMENTS TO THE LOAN AGREEMENT 

  

	4.01	With effect on and from the Effective Date the Loan Agreement shall be amended and restated as set out in Schedule 1 (Form of Amended and Restated Loan Agreement). 

  
 5/8 

	4.02	By construing references therein to “this Loan Agreement”, “this Agreement”, “herein”, “hereunder” and like terms, they shall be construed as if the same referred to the
Loan Agreement as amended hereby. 

  

	4.03	Subject only to the modifications set out in this Supplemental Agreement, the Loan Agreement shall remain in full force and effect and binding upon the Banks and the Borrower. 

 

	4.04	In the Security Documents, any reference to the Loan Agreement shall mean the Loan Agreement as supplemented and amended by this Supplemental Agreement. For the avoidance of doubt, each party agree that the
Security Documents shall remain in full force and effect and continue to secure the Loan Agreement and any Swap Agreement notwithstanding the terms of this Supplemental Agreement. 

 

	5.	APPLICABLE LAW 

  

	5.01	This Supplemental Agreement shall be governed by, and construed in accordance with Norwegian law. The Borrower, Agent and the Banks accept Oslo tingrett as venue. 

IN WITNESS WHEREOF the parties hereto have caused this Supplemental Agreement to be duly executed the day and the year above written. 

  
 6/8 

 EXECUTION PAGE 
  

	
	The Borrower:
	
	KNOT SHUTTLE TANKERS 18 AS
	
	 /s/ BJØRN SANDE URTEGAARD

	
	Bjørn Sande Urtegaard
	 Attorney-in-fact            

	Name in block letters
	
	The Agent and Bank
	
	HSH NORDBANK AG
	
	 /s/ ERIK HOFFMANN-DAHL

	
	Erik Hoffmann-Dahl
	 Attorney-in-Fact            

	Name in block letters

  
 7/8 

 SCHEDULE 1 

Form of Amended and Restated Loan Agreement 

(To form part of this Supplemental Agreement as if set out in full herein) 

  
 8/8 

 FORM OF 

AMENDED AND RESTATED 

SECURED 
 TERM LOAN

 IN THE AMOUNT OF 

USD 85,000,000.- 

KNOT SHUTTLE TANKERS 18 AS 

as Borrower 
 HSH
NORDBANK AG 
 AND THE FINANCIAL INSTITUTIONS 

at any time listed in Schedule 1 

as Banks 
 and 

HSH NORDBANK AG 
 as
Agent 
  
  
 

 

							
	 CLAUSE
	  	PAGE	 
			
	1.	  	DEFINITIONS AND INTERPRETATION	  	 	4	  
			
	2.	  	THE COMMITMENT, NATURE OF OBLIGATIONS AND PURPOSE	  	 	11	  
			
	4.	  	DRAWDOWN	  	 	12	  
			
	5.	  	REPAYMENT	  	 	13	  
			
	6.	  	PREPAYMENT	  	 	14	  
			
	7.	  	INTEREST PERIODS	  	 	15	  
			
	8.	  	INTEREST	  	 	16	  
			
	9.	  	PAYMENTS	  	 	17	  
			
	10.	  	SECURITY	  	 	18	  
			
	11.	  	TAXES	  	 	19	  
			
	12.	  	MARKET DISRUPTION	  	 	19	  
			
	13.	  	INCREASED COSTS	  	 	20	  
			
	14.	  	ILLEGALITY	  	 	21	  
			
	15.	  	MITIGATION	  	 	21	  
			
	16.	  	REPRESENTATIONS AND WARRANTIES	  	 	21	  
			
	17.	  	UNDERTAKINGS	  	 	24	  
			
	18.	  	DEFAULT	  	 	29	  
			
	19.	  	THE AGENT	  	 	32	  
			
	20.	  	FEES	  	 	36	  
			
	21.	  	EXPENSES	  	 	36	  
			
	22.	  	INDEMNITIES	  	 	36	  
			
	23.	  	CALCULATIONS	  	 	37	  
			
	24.	  	AMENDMENTS AND WAIVERS	  	 	37	  
			
	25.	  	CHANGES TO THE PARTIES	  	 	38	  
			
	26.	  	PRO RATA SHARING	  	 	39	  
			
	27.	  	SEVERABILITY	  	 	40	  
			
	28.	  	NOTICES	  	 	40	  
			
	29.	  	JURISDICTION	  	 	41	  
			
	30.	  	GOVERNING LAW	  	 	41	  

  
 2/50 

							
	 SCHEDULES
	  	PAGE	 
			
	1.	  	Banks and commitments	  	 	42	  
			
	2.	  	Conditions precedent documents	  	 	43	  
			
	3.	  	Form of Drawdown Notice	  	 	44	  
			
	4.	  	Form of Renewal Notice	  	 	45	  
			
	5.	  	Form of Compliance Certificate	  	 	46	  
			
	6.	  	Mandatory Cost formulae	  	 	47	  

  
 3/50 

 THIS AGREEMENT (the “Agreement”) dated 25 April 2007 as amended and restated by an eleventh
supplemental agreement dated 9 April 2013 (the “Eleventh Supplemental Agreement”) is made between: 
  

	(1)	KNOT SHUTTLE TANKERS 18 AS (organisation no 998 943 035), Smedasundet 40, P.O.Box 2017, 5504 Haugesund, Norway (the “Borrower”); 

 

	(2)	THE FINANCIAL INSTITUTIONS listed in Schedule 1 as banks (the “Banks”); 

  

	(3)	HSH NORDBANK AG, Gerhart-Hauptmann-Platz 50, 20095 Hamburg, Germany as agent (the “Agent”). 

This Agreement sets out the terms and conditions upon and subject to which the Banks will make available to the Borrower a secured term loan in the amount up
to USD 85,000,000,-. 
 IT IS HEREBY AGREED as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	Definitions 

 In this Agreement and the preamble hereof; 

“Accounts” 
 means the Earnings Account
and the Retention Account. 
 “Applicable Margin” 

means 2.25 % per annum (applicable from the Effective Date). 

“Business Day” 
 means a day upon which
banks and foreign exchange markets are open for business of the nature required by this Agreement in Hamburg, Oslo, London and New York. 

“Cash” 
 means the aggregate value of;

  

	(i)	cash in hand and unencumbered bank deposits; and 

  

	(ii)	unencumbered liquid bonds and other debt instruments with an “A” - rating or better of Standard & Poors or Moody’s and liquid equities listed on any major stock exchange; and 

 

	(iii)	any other bond or debt instrument accepted by the Agent on instructions of the Banks in writing. 

  
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 “Charterparty” 

means a time charterparty originally entered into between Knutsen OAS Shipping AS and Brazil Shipping I Limited (formerly BG Oil Services Limited) dated
6 April 2010 in respect of the Vessel and novated to Knutsen Bøyelaster XI KS from Knutsen OAS Shipping AS by a novation agreement dated 3 May 2010 and as further novated from Knutsen Bøyelaster XI KS to the Borrower by a
novation agreement dated 20 February 2013. 
 “Commitment” 

means, in relation to a Bank, the amount set opposite its name in Schedule 1 to the extent not cancelled, reduced or transferred under this Agreement. 

“Commitment Period” 
 means the period
commencing at (    ) March 2007 and expiring at 30 June 2007. 
 “Compliance Certificate” 

means a certificate to be issued by the Borrower in respect of financial covenants, in the terms and form as set out in Schedule 5 (Form of Compliance
Certificate). 
 “Declaration of Pledge” 

means a declaration of pledge executed or to be executed by the Borrower in respect of the Mortgage and the Factoring Agreement, in the terms and form as the
Agent on behalf of the Banks may require. 
 “Default” 

means an Event of Default or an event which, with the giving of notice, lapse of time, or fulfilment of any other applicable condition (or any combination of
the foregoing), might constitute an Event of Default. 
 “Drawdown Date” 

means the date on which the Loan is advanced to the Borrower in accordance with the Drawdown Notice. 

“Drawdown Notice” 
 means a request made
by the Borrower for the drawdown of the Loan, substantially in the form set out in Schedule 3 (Form of Drawdown Notice). 
 “Earnings
Account” 
 means account no 1200021414 in the Borrower’s name with the Agent. 

  
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 “Earnings Assignment” 

means an assignment agreement entered or to be entered into between the Borrower and the Agent on behalf of the Banks whereby the Borrower assigns (i) on
first priority all earnings and money whatsoever payable under the Charterparty as security for the Loan to the Agent on behalf of the Banks and (ii) on second priority all earnings and money whatsoever payable under the Charterparty as
security for the Second Windsor Loan to the Agent on behalf of the Banks, in the terms and form as the Agent on behalf of the Banks may require. 

“Effective Date” 
 means the effective
date as defined in the Eleventh Supplemental Agreement. 
 “Event of Default” 

means any of the events specified as such in Clause 18 (Events of Default). 

“Factoring Agreement” 
 means an
agreement entered or to be entered into between the Borrower and the Agent on behalf of the Banks whereby the Borrower pledges to the Agent on behalf of the Banks all claims arising from the Borrower’s business operation as security for the
Loan, in the terms and form as the Agent on behalf of the Banks may require. 
 “Final Maturity Date” 

means the earlier of the date falling 8 (eight) years after the Drawdown Date and 30 June 2015. 

“Financial Indebtedness” 
 means any
indebtedness (whether actual or contingent) incurred in respect of borrowed money or any other payment obligations, and commitments of any nature that may expose any person to payment of money. 

“General Partner” 
 means KNOT Offshore
Partners GP LLC with registered address at 2 Queen’s Cross, Aberdeen, Aberdeenshire, AB15 4YB, United Kingdom being the general partner in KNOT Offshore Partners LP. 

“Insurances Assignment” 
 means an
assignment of insurances in respect of the Vessel executed or to be executed by the Borrower in favour of the Agent on behalf of the Banks, in the terms and form as the Agent on behalf of the Banks may require. 

“Interest Payment Date” 
 means the last
day of each Interest Period or the date as specified in Clause 7.1 (e). 

  
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 “Interest Period” 

means each period determined in accordance with Clause 7 (Interest Periods). 

“KNOT Offshore Partners LP” 
 means KNOT
Offshore Partners LP, having its address at Trust Company Complex, Ajeltake Island, Ajeltake Road, Majuro, Marshall Islands MH96960. 

“LIBOR” 
 means for any Interest Period:

  

	(i)	the rate per annum equal to the offered quotation for deposits in USD ascertained by the Agent to be the rate established by the British Bankers’ Association and appearing on the Reuters LIBO 01, published or
reported by Reuters through its monitor service or any equivalent successor to such service at or about 11:00 a.m. (London time) on the applicable Quotation Date; or 

 

	(ii)	if no such rate is available, the rate per annum determined by the Agent to be equal to the arithmetic mean (rounded upward to four decimal places) of the rates per annum, as supplied to the Agent at its request, in the
London Interbank Euro-currency Market at about 11:00 a.m. (London time) on the applicable Quotation Date, as conclusively certified by the Agent to the Borrower. 

“Limited Partnership Agreement” 
 means
the partnership agreement dated 21 February 2013 in respect of the limited partnership KNOT Offshore Partners LP. 
 “Loan”

 means, at any time, the aggregate amount outstanding under this Agreement (being the aggregate of Tranche A and Tranche B), provided however that
the outstanding amount shall never exceed USD 85,000,000.-. 
 “Loan Period” 

means the period commencing on the date of this Agreement and ending on the day the Loan and all amounts outstanding under this Agreement have been repaid in
full to the Banks. 
 “Management Agreement” 

means the management agreement entered into between the Borrower and the Manager in a form and substance acceptable to the Agent on behalf of the Banks. 

“Manager” 
 means KNOT Management AS
(organisation no. 996 124 916). 

  
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 “Manager’s Statement” 

means a statement executed by the Manager in favour of the Agent on behalf of the Banks whereby the Manager declares to manage the Vessel pursuant to sound
practice, inform the Agent if action is taken against the Vessel and not to terminate the Management Agreement, in the terms and form as the Agent on behalf of the Banks may require. 

“Mandatory Cost” 
 means the percentage
rate per annum calculated by the Agent in accordance with Schedule 6 (Mandatory Costs formulae), whereby the rate of interest will be increased to reflect the costs of complying with any applicable regulatory requirements of any relevant
regulatory authority. In such event the Borrower shall have the right to repay the Loan without any prepayment fees. 
 “Market Value”

 means with respect the Vessel (on charter free basis), the fair market value of the Vessel in USD determined by calculating the arithmetic mean of
two independent valuations of the Vessel obtained from two independent and well reputed sale and purchase shipbrokers appointed by the Agent on behalf of the Banks at the Borrower’s cost. Such valuations to be made with or without physical
inspection of the Vessel (as the Agent may require), on the basis of a sale for prompt delivery for cash at arm’s length on normal commercial terms as between a willing buyer and seller. 

“MLP Group” 
 means KNOT Offshore
Partners LP and its Subsidiaries. 
 “Mortgage” 

means a first priority Norwegian ship mortgage on the Vessel in the amount of USD 120,000,000.-, executed or to be executed by the Borrower in favour of
the Agent on behalf of the Banks, in the terms and form as the Agent on behalf of the Banks may require. 
 “NOK” 

means the lawful currency for the time being of the Kingdom of Norway. 

“Party” 
 means a party to this
Agreement. 
 “Pledge of Accounts” 

means the first priority pledge of the Accounts to be entered or to be entered into between the Borrower and the Agent on behalf of the Banks, in the terms and
form as the Agent on behalf of the Banks may require. 

  
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 “Quotation Date” 

means, in relation to any Interest Period, the Business Day on which quotations would ordinarily be given in the London Interbank Euro-currency Market for USD,
deposits for delivery on the first day of that Interest Period. 
 “Renewal Notice” 

means a request made by the Borrower for renewal of the Loan, substantially in the form set out in Schedule 4 (Form of Renewal Notice). 

“Repayment Date” 
 means the dates for
repayment of an instalment as determined according to Clause 5.1. 
 “Retention Account” 

means account no 1200021405 in the Borrower’s name with the Agent. 

“Second Windsor Loan” 
 means a secured
term loan agreement in the amount of USD 27,300,000.- dated 23 February 2011 (as later amended) and entered into between the Borrower as borrower, HSH Nordbank AG as arranger and agent and the financial institutions listed therein as lenders.

 “Security Documents” 
 means the
documents referred to in Clause 10 (Security) and all such other documents which may be executed at any time in favour of the Agent and/or any of the Banks as security for the obligations of the Borrower under this Agreement. 

“Security Interest” 
 means any mortgage,
pledge, lien, charge (whether fixed or floating), assignment by way of security, finance lease, sale-and-repurchase or sale-and-leaseback arrangement, sale of receivables on a recourse basis or security interest or any other agreement or arrangement having the effect of conferring security, except for liens arising solely by
operation of law and/or in the ordinary course of business securing amounts not more than 30 days overdue. 
 “Seller” 

means Accent Tanker Inc., 80 Broad Street, Monrovia, Liberia. 

“Sponsor” 
 means Knutsen NYK Offshore
Tankers AS, P.O Box 2017, 5504 Haugesund, Norway, (organisation no 995 221 713). 

  
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 “Sponsor Undertaking” 

means an undertaking from the Sponsor in favour of the Borrower set out in a omnibus agreement whereby the Sponsor undertakes to compensate the Borrower for
any difference in charter hire below the charter hire agreed for the Charterparty during the five year period after the Effective Date. 

“Subsidiary” 
 means in relation to
another company (the “Parent Company”) any company or corporation of which more than one half of the issued share capital is beneficially owned or controlled, directly or indirectly, by the Parent Company and for these purposes, a company
or corporation shall be treated as being controlled by the Parent Company if the Parent Company is able to direct its affairs and/or to control the composition of its board of directors or equivalent body. 

“Swap Agreement” 
 means an ISDA master
agreement entered or to be entered into between the Borrower and the Swap Bank. 
 “Swap Bank” 

means HSH Nordbank AG. 
 “Taxes” 

means any present or future taxes, levies, duties, imposts, withholdings, deductions, fees or charges of any nature, together with interest thereon and
penalties in respect thereof, and “tax” and “taxation” shall be construed accordingly. 
 “Total Loss” 

means any event which will entitle the Borrower to claim payment of the total insured value under the hull and machinery or the war risk insurance taken out
pursuant to Clause 17.5 (Insurances). 
 “Tranche A” 

means an amount of up to USD 31,166,000.-. 

“Tranche B” 
 means an amount of up to
USD 48,634,000.-. 
 “Tranches” 

means Tranche A and Tranche B, Tranche means any of them. 

  
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 “Transaction Documents” 

means this Agreement, the Security Documents, the Management Agreement, the Manager’s Statement, the Swap Agreement, the Limited Partnership Agreement and
the agreements or documents contemplated herein or therein. 
 “USD” 

means the lawful currency for the time being of the United States of America. 

“Vessel” 
 means “Windsor
Knutsen”, IMO No. 9316115, of 162,000 tdw, Double Hull, Ice class 1A, built 2007, registered in the Borrower’s name in the Norwegian International Ship Register. 

 

	1.2	Construction 

  

	(a)	The index to and the headings in this Agreement are for convenience only and are to be ignored in construing this Agreement. 

  

	(b)	Words importing the singular shall (unless the contrary intention appears) include the plural and vice versa. 

  

	(c)	a Clause or a Schedule respectively is a reference to a clause of or schedule to this Agreement. 

  

	(d)	a provision of law is a reference to that provision as amended or re-enacted, and to any regulations made by the appropriate authority pursuant to such law. 

 

	(e)	references to any document are to be construed as references to such documents as amended or supplemented from time to time, but without prejudice to the Borrower’s obligations to obtain necessary consent in
respect of such amendment or supplement. 

  

	2.	THE COMMITMENT, NATURE OF OBLIGATIONS AND PURPOSE 

  

	2.1	Commitment 

 Subject to the terms of this Agreement, the Banks grant to the Borrower a secured term loan
of an aggregate principal amount of up to USD 85,000,000. 
  

	2.2	Nature of rights and obligations of the Banks 

  

	(a)	The obligations of the Banks under this Agreement are several. Failure of a Bank to carry out its obligations under this Agreement shall not relieve any other party hereto of any of its obligations under this Agreement.
No Bank shall be responsible for the obligations of any other Bank hereunder. 

  
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	(b)	The rights of each Bank under this Agreement are separate and independent rights. A Bank may, except as otherwise stated in this Agreement, separately enforce those rights. 

 

	(c)	Without affecting the obligations of the Borrower in any way, no Bank or the Agent are bound to monitor or verify the application of the Loan. 

 

	2.3	Purpose 

 The purpose of granting this term loan is to finance the purchase of the Vessel by the Borrower
from the Seller. 
  

	3.	CONDITIONS PRECEDENT 

  

	3.1	Documentary conditions precedent 

 The obligations of each Bank to the Borrower under this Agreement are
subject to the conditions precedent that the Agent on behalf of the Banks has received all of the documents set out in Schedule 2 in a form and substance satisfactory to the Agent, such documents to be received 3 days prior to the Drawdown Date.

  

	3.2	Further conditions precedent 

 The obligation of each Bank to participate in the Loan, is subject to the
further conditions precedent that on both the date of the Drawdown Notice and the Drawdown Date; 
  

	(i)	the representations and warranties in Clause 16 (Representations and warranties) deemed to be repeated on those dates are correct and not misleading and will be correct and not misleading immediately after that
drawdown is made with reference to the facts and circumstances then prevailing, unless otherwise informed to the Agent in writing and, if not permitted under this Agreement, waived by the Banks prior to such dates; and 

 

	(ii)	no Default is outstanding or would result from the making of that drawdown. 

  

	4.	DRAWDOWN 

  

	4.1	Drawdown Notice 

  

	(a)	The Borrower shall not later than 10:00 a.m. (London time) three Business Days prior to the requested Drawdown Date, or on such later date as may be agreed by the Banks, serve to the Agent the Drawdown Notice which,
once received by the Agent, shall be irrevocable. 

  

	(b)	The Banks shall upon confirmation from the Agent that the Agent has received a duly completed Drawdown Notice and subject to the terms and conditions of this Agreement, and provided that no Default has occurred or is
threatening, make the Loan available to the Borrower through the Agent in one disbursement on the requested Drawdown Date. 

  
 12/50 

	(c)	The giving of the Drawdown Notice by the Borrower shall be deemed to constitute a representation and warranty by the Borrower that all the representations and warranties set forth in Clause 16 (Representations and
warranties) hereof are true and correct as of such date as if made on such date, that the conditions specified in Clause 3 (Conditions precedent) have been or will upon the Drawdown Date be fully performed, and that no Default has occurred.

  

	(d)	The Borrower shall only be entitled to serve a Drawdown Notice to the Agent during the Commitment Period. 

  

	5.	REPAYMENT 

  

	5.1	Repayment 

 Without prejudice to the Banks’ rights under this Agreement, the Tranche
A shall be repaid as follows: 
  

											
	 Instalment

No
	  	 Repayment Date
	  	Instalment in USD	 	  	Balance in USD	 
	1	  	18 November 2008	  	 	1,154,500	  	  	 	30,011,500	  
	2	  	18 May 2009	  	 	1,154,500	  	  	 	28,857,000	  
	3	  	18 November 2009	  	 	1,154,500	  	  	 	27,702,500	  
	4	  	18 May 2010	  	 	1,154,500	  	  	 	26,548,000	  
	5	  	18 November 2010	  	 	1,154,500	  	  	 	25,393,500	  
	6	  	18 May 2011	  	 	1,154,500	  	  	 	24,239,000	  
	7	  	18 November 2011	  	 	1,154,500	  	  	 	23,084,500	  
	8	  	18 May 2012	  	 	1,154,500	  	  	 	21,930,000	  
	9	  	18 November 2012	  	 	1,154,500	  	  	 	20,775,500	  
	10	  	18 May 2013	  	 	888,077	  	  	 	19,887,423	  
	11	  	18 November 2013	  	 	888,077	  	  	 	18,999,346	  
	12	  	18 May 2014	  	 	888,077	  	  	 	18,111,269	  
	13	  	18 November 2014	  	 	888,077	  	  	 	17,223,192	  
	14	  	18 May 2015	  	 	888,077	  	  	 	16,335,115	  
	15	  	18 May 2015 Balloon	  	 	16,335,115	  	  	 	0	  

 5.1 (b) 

Without prejudice to the Banks’ rights under this Agreement, the Tranche B shall be repaid as follows: 

 

											
	 Instalment
No
	  	 Repayment Date
	  	Instalment in USD	 	  	Balance in USD	 
	1	  	18 November 2008	  	 	1,445,500	  	  	 	47,188,500	  
	2	  	18 May 2009	  	 	1,445,500	  	  	 	45,743,000	  
	3	  	18 November 2009	  	 	1,445,500	  	  	 	44,297,500	  
	4	  	18 May 2010	  	 	1,445,500	  	  	 	42,852,000	  
	5	  	18 November 2010	  	 	1,445,500	  	  	 	41,406,500	  
	6	  	18 May 2011	  	 	1,445,500	  	  	 	39,961,000	  
	7	  	18 November 2011	  	 	1,445,500	  	  	 	38,515,500	  
	8	  	18 May 2012	  	 	1,445,500	  	  	 	37,070,000	  
	9	  	18 November 2012	  	 	1,445,500	  	  	 	35,624,500	  
	10	  	18 May 2013	  	 	1,111,923	  	  	 	34,512,577	  
	11	  	18 November 2013	  	 	1,111,923	  	  	 	33,400,654	  
	12	  	18 May 2014	  	 	1,111,923	  	  	 	32,288,731	  
	13	  	18 November 2014	  	 	1,111,923	  	  	 	31,176,808	  
	14	  	18 May 2015	  	 	1,111,923	  	  	 	30,064,885	  
	15	  	18 May 2015 Balloon	  	 	30,064,885	  	  	 	0	  

  
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	5.2	Final Maturity Date 

 On the Final Maturity Date the Borrower shall pay to the Agent (on behalf of the
Banks) all sums due under this Agreement in addition to the instalments set out in Clause 5.1 above. 
  

	6.	PREPAYMENT 

  

	6.1	Voluntary prepayment and cancellation 

 The Borrower may, by giving not less than 5 Business Days prior
written notice in respect of full prepayment or partial prepayment of the Loan respectively, to the Agent without penalty, prepay on the last Business Day of an Interest Period, the Loan or part of the Loan in an amount an integral multiple of
USD 2,600,000.-. 
  

	6.2	Prepayment due to sale or Total Loss 

 Upon a sale (after the Banks’ prior written consent) or a
Total Loss of the Vessel, the Loan shall, upon payment of the sales proceeds or the insurance money be prepaid. 
  

	6.3	Additional right of prepayment 

 If: - 

 

	(i)	the Borrower is required to pay to a Bank any additional amounts under Clause 11 (Taxes); or 

  

	(ii)	the Borrower is required to pay to a Bank any amount under Clause 13 (Increased costs); 

then, without prejudice to the obligations of the Borrower under those Clauses, the Borrower may, subject to Clause 6.4 (Miscellaneous
provisions) and Clause 22.2 (Other indemnities) whilst the circumstances continue, serve a notice of prepayment and cancellation on that Bank through the Agent. On the date falling five Business Days after the date of service of the notice: -

  

	(iii)	the Borrower shall prepay that Bank’s participation in the Loan; and 

  
 14/50 

	(iv)	that Bank’s undrawn participation in the Commitment (if any) shall be cancelled. 

  

	6.4	Miscellaneous provisions 

  

	(a)	Any notice of prepayment under this Agreement is irrevocable and shall specify the date on which the prepayment is to become effective and the amount to be prepaid. The Agent shall notify the Banks promptly of receipt
and contents of any such notice. 

  

	(b)	All prepayments under this Agreement shall be made together with accrued interest on the amount prepaid and any amounts due in respect of such prepayment under Clause 22.2 (Other indemnities). 

 

	(c)	An amount prepaid pursuant to this Clause 6 may not be drawn again. 

  

	(d)	Any amount prepaid shall be applied in inverse order of maturity. 

  

	(e)	Any amount prepaid shall be applied against Tranche A and Tranche B respectively on a pro rata basis. 

  

	7.	INTEREST PERIODS 

  

	7.1	Selection 

  

	(a)	The Borrower shall select the first Interest Period in the Drawdown Notice for the Loan, and the first Interest Period for the Loan shall commence on its Drawdown Date. 

 

	(b)	The Borrower shall, by serving the Renewal Notice to the Agent not later than 10:00 a.m. (London time) two Business Days before the beginning of each Interest Period, specify the duration of that Interest Period. The
Renewal Notice shall constitute a representation and warranty to the effect that, on the date of that notice, the representations and warranties in Clause 16 remain true and correct and that no Default has occurred. 

 

	(c)	Subject to the following provisions of this Clause 7.1, each Interest Period shall be for a period of three, six or twelve months, or such other period acceptable to the Banks. 

 

	(d)	If the Borrower fails to select an Interest Period in accordance with paragraph (a) above, that Interest Period will, subject to the other provisions of this Clause 7.1, be six 6 months. 

 

	(e)	If the Borrower selects an Interest Period for more than six months, interest accruing during such period shall be paid every six months in arrears. 

 

	7.2	Non-Business Days 

 If an Interest Period would otherwise end on
a day which is not a Business Day, that Interest Period shall instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not). 

  
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	7.3	No overrunning 

 If an Interest Period at any time thereafter would otherwise overrun a Repayment Date,
it shall be shortened so that it ends on the Repayment Date for a portion of the Loan corresponding to the amount of the Loan to be repaid on that Repayment Date. 
  

	7.4	Notification 

 The Agent shall notify the Banks of the duration of each Interest Period promptly after
ascertaining its duration. 
  

	8.	INTEREST 

  

	8.1	Interest rate 

 The rate of interest on the Loan is the rate per annum determined by the
Agent to be the aggregate of: 
  

	 	(a)	the Applicable Margin; 

  

	 	(b)	LIBOR ( the Banks funding costs for Interest Periods exceeding 12 Months), and 

  

	 	(c)	Mandatory Costs, if any. 

  

	8.2	Due dates 

 Accrued interest is payable by the Borrower on each Interest Payment Date based on the Loan
outstanding at the beginning of the relevant Interest Period. 
  

	8.3	Default interest 

 In the event of the Borrower not making payment of any amounts due under this
Agreement on the due date thereof, the Borrower shall pay interest on such amounts from the due date up to the date of actual payment at a rate to be determined by the Agent to be the aggregate sum of 2.0 per cent per annum and the Applicable
Margin plus the documented costs the Banks will incur in financing such sums for such periods as the Banks shall determine. Interest under this Clause 8.3 shall be payable by the Borrower upon written demand from the Agent. 

 

	8.4	Notification 

 The Agent shall promptly notify each relevant Party of the determination of a rate of
interest under this Agreement. 

  
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	9.	PAYMENTS 

  

	9.1	Place 

 All payments by the Borrower or a Bank under this Agreement shall be made to the Agent to its
account at such office or bank as it may notify to the Borrower or such Bank for this purpose. 
  

	9.2	Funds 

 Payments under this Agreement to the Agent shall be made for value on the due date at such times
and in such funds as the Agent may specify to the Party concerned as being customary at the time for the settlement of transactions in the relevant currency in the place for payment. 

 

	9.3	Distribution 

  

	(a)	Each payment received by the Agent under this Agreement for another Party shall, subject to paragraphs (b) and (c) below, be made available by the Agent to that Party by payment (on the date and in the
currency and funds of receipt) to its account with such office or bank in the principal financial centre of the country of the relevant currency as it may notify to the Agent for this purpose by not less than five Business Days prior written notice.

  

	(b)	The Agent may apply any amount received or held by it for the Borrower in or towards payment (on the date and in the currency and funds of receipt) of any amount due from the Borrower under this Agreement or in or
towards the purchase of any amount of any currency to be so applied. 

  

	(c)	Where a sum is to be paid to the Agent under this Agreement for distribution to another Party, the Agent is not obliged to pay that sum to that Party until it has established that it has actually received that sum. The
Agent may, however, assume that the sum has been paid to it in accordance with this Agreement and, in reliance on that assumption, make available to that Party a corresponding amount. If the sum has not been made available but the Agent has paid a
corresponding amount to another Party and the Party liable does not forthwith on demand pay such amount to the Agent together with interest on that amount from the date of payment to the date of receipt, calculated at a rate determined by the Agent
to reflect its cost of funds, that Party shall forthwith on demand by the Agent refund such amount to the Agent together with interest on such amount calculated as above. 

 

	9.5	Set-off and counterclaim 

 All payments made by the Borrower
under this Agreement shall be made without set-off or counterclaim. 
  

	9.6	Non-Business Days 

 If a payment under this Agreement is due on a
day which is not a Business Day, the due date for that payment shall instead be the next Business Day in the same calendar month provided that if there is no next Business Day in the same calendar month the due date for that payment shall instead be
the preceding Business Day. 

  
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	9.7	Partial payments 

 If the Agent receives a payment insufficient to discharge all the amounts then due and
payable by the Borrower under this Agreement, the Agent shall apply that payment towards the discharge of the obligations of the Borrower under this Agreement in the following order : 

 

	(i)	firstly, in or towards payment of any unpaid costs and expenses of the Agent under this Agreement; 

  

	(ii)	secondly, in or towards payment pro rata of any accrued fees due but unpaid under Clause 20 (Fees); 

  

	(iii)	thirdly, in or towards payment pro rata of any accrued interest under this Agreement; 

  

	(iv)	fourthly, in or towards payment pro rata of any principal due from the Borrower but unpaid under this Agreement; and 

  

	(v)	fifthly, in or towards payment pro rata of any other sum due but unpaid under this Agreement. 

  

	10.	SECURITY 

  

	10.1	Security 

 The Borrower’s obligations under this Agreement, including without limitation the
obligation to repay the Loan together with all unpaid interest, default interest, commissions, charges, expenses and any derived liability whatsoever of the Borrower towards the Banks and the Agent in connection with this Agreement, shall be secured
as follows: 
  

	(i)	the Mortgage; 

  

	(ii)	the Factoring Agreement; 

  

	(iii)	the Declaration of Pledge; 

  

	(iv)	the Pledge of Accounts; 

  

	(v)	the Insurances Assignment; 

  

	(vi)	the Earnings Assignment. 

  

	10.2	Set-off 

 Following the occurrence of a Default, the Agent (acting on its own behalf and on behalf of the
Banks) and each of the Banks individually (acting on its own behalf and on behalf of the Agent and the other Banks) shall to the extent permitted by applicable law, have a separate right of set-off in respect of any credit balance, in any currency,
on any account the Borrower might have with the Agent and each of the Banks individually (branches included) against any sum due to the Agent and the Banks hereunder. 

  
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	10.3	Swaps 

 The Borrower’s obligations under the Swap Agreement and any transaction made or to be made
thereunder shall be secured by the Security Documents. 
  

	11.	TAXES 

 All payments by the Borrower under this Agreement shall be made free and clear of and without
deduction for or on account of any taxes, except to the extent that the Borrower is required by law to make payment subject to any taxes. If by requirement of law any tax or amounts in respect of tax must be deducted or withheld from any amounts
payable or paid by the Borrower, or paid or payable by the Agent to a Bank, under this Agreement, the Borrower (or the Agent, if required) shall pay such tax to the relevant authority and the Borrower shall pay such additional amounts as may be
necessary to ensure that the relevant Bank receives (free from any liability in respect of any such deduction or withholding) a net amount equal to the full amount which it would have received had payment not been made subject to tax or other
deduction. The Borrower shall promptly deliver to the Agent any receipts, certificates or other proof evidencing the amounts paid or payable in respect of any deduction or withholding as aforesaid. 

 

	12.	MARKET DISRUPTION 

  

	12.1	Market disruption 

 If, on or prior to a Quotation Date: 

 

	(i)	the Agent reasonably determines that adequate and fair means do not exist for ascertaining LIBOR as the case may be; or 

  

	(ii)	prior to 2:00 p.m. (London time) on the Quotation Date the Agent receives notification from Banks whose participation in the Loan would in aggregate exceed 30 per cent of the Loan, that: 

 

	 	a.	matching deposits are not available to them in the London interbank market in sufficient amounts to fund their participation in the Loan for the relevant Interest Period; or 

 

	 	b.	the cost to them of obtaining matching deposits in the London interbank Euro-currency Market to fund their respective participation in the Loan would be in excess of LIBOR as the case may be for the relevant Interest
Period, 

 the Agent shall promptly notify the Borrower and the Banks of the fact and that this Clause 12.1 is in
operation. 
  

	12.2	Suspension of drawdowns 

 If a notification under Clause 12.1 (Market disruption) applies to
(i) an amount which has not been made, the Loan shall not be made, or (ii) an amount which has been made, the Loan shall be prepaid not later than upon the expiry of the 30 days period set out below. However, the Borrower and the

  
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Agent shall, within five Business Days of receipt of the notification, enter into negotiations in good faith (which neither the Borrower nor the Agent shall be obliged to continue for a period of
more than 30 days) with a view to agreeing an alternative basis for the borrowing hereunder. Interest on the Loan outstanding under the said period of negotiations shall be the Banks’ actual cost of funds from such other sources as they may
select, plus the Applicable Margin. 
  

	13.	INCREASED COSTS 

  

	(a)	If by reason of: (i) changes in any existing law, rule or regulation, or (ii) the adoption of any new law, rule or regulation, or (iii) any change in the interpretation or administration of (i) or
(ii) above by any governmental authority, or (iv) compliance with any directive or request from any governmental authority (whether or not having the force of law, but generally applicable to banks and/or other financial institutions):

  

	 	(i)	any of the Banks incurs a cost as a result of it having entered into this Agreement and/or performing its obligations hereunder; or 

  

	 	(ii)	there is an increase in the cost to any of the Banks of maintaining or funding its portion of the Loan or any advances hereunder; or 

 

	 	(iii)	any of the Banks becomes liable for any new taxes (other than on net income) calculated by reference to the Loan; or 

  

	 	(iv)	any of the Banks becomes subject to any new or modified capital adequacy or similar requirements which will have the effect of increasing the amount of capital required or expected to be maintained by such Bank based on
such Bank’s obligations hereunder; or 

  

	 	(v)	any of the Banks’ effective return hereunder is reduced in any other manner; 

 then any
such cost, liability or reduction of return as referred to in the preceding paragraphs (i)-(v) shall be payable by the Borrower upon request by the Agent either in the form of an increased margin or in the form of an indemnification at the
option of the affected Bank. The relevant Bank shall via the Agent give the Borrower notice within a reasonable time of its intention to claim compensation under this Clause 13 and it shall specify the form and amount of such compensation. The
relevant Bank’s determination of the amount of compensation to be made under this Clause 13 shall, absent manifest error, be conclusive. The Borrower shall be entitled to prepay without penalty such Bank’s portion of the Loan in accordance
with Clause 8 (Interest Periods) at any time following receipt of notice from the Agent as aforesaid on giving not less than seven Business Days’ irrevocable written notice. In such event the Borrower shall nevertheless compensate such Bank for
such requested indemnification for the period up to and including the date of prepayment. 
  

	(b)	If more than one of the Banks are required to comply with any new capital allocation requirements which would consequently result in any increased costs for those Banks pursuant to sub-clause (a) above then any
such cost or liability shall be payable by the Borrower to all the Banks (whether or not affected by such cost or liability). 

  
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	14.	ILLEGALITY 

 If it becomes unlawful in any jurisdiction by virtue of any law which is binding upon such
Bank for it to give effect to any of its obligations as contemplated by this Agreement, then: 
  

	(i)	that Bank may notify the Borrower through the Agent accordingly (specifying the obligations the performance of which is thereby rendered unlawful and the law giving rise to the same); and 

 

					
	 (ii)
	  	a.	  	the Borrower shall forthwith (or at such later date as may be permitted by the relevant law) without premium or penalty other than as set out in Clause 22.2 (Other indemnities), prepay that Bank’s participation in all
amounts payable by it to that Bank under this Agreement; and
			
		  	b.	  	that Bank’s Commitment shall forthwith be cancelled.

  

	15.	MITIGATION 

 If circumstances arise in respect of any Bank which would, or would upon the giving of
notice, result in: 
  

	(i)	the Borrower being obliged to pay to that Bank additional amounts pursuant to Clause 11 (Taxes) or any amounts pursuant to Clause 13 (Increased costs); or 

 

	(ii)	the Borrower being obliged to cancel that Bank’s Commitment pursuant to Clause 14 (Illegality); 

then, without in any way limiting, reducing or otherwise qualifying the Borrower’s obligations under Clauses 11 (Taxes) to 14 (Illegality)
(inclusive), that Bank shall, in consultation with the Agent and the Borrower take such reasonable steps as may be open to it to mitigate or remove such circumstances, including (without limitation) the transfer of its rights and obligations under
this Agreement to another bank or financial institution reasonably acceptable to the Borrower, unless to do so might (in the reasonable opinion of that Bank) be prejudicial to that Bank. 

 

	16.	REPRESENTATIONS AND WARRANTIES 

  

	16.1	Representations and Warranties 

 The Borrower makes the representations and warranties set out in this
Clause 16 to the Agent and each Bank. 
  

	16.2	Status and ownership 

 The Borrower is a duly constituted and properly incorporated private company with
limited liability under Norwegian law. 

  
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	16.3	Powers and authority 

 The Borrower has the power to enter into and perform, and have taken all necessary
corporate actions to authorise the entry into, performance and delivery of, this Agreement and/or the Transaction Documents to which it is a party, and the transactions contemplated herein and therein. 

 

	16.4	Legal validity and enforceability 

 This Agreement and the Transaction Documents will, subject always to
mandatory Norwegian law and any other applicable law respectively, when executed by the respective parties thereto constitute legal, valid and binding obligations of such parties, enforceable in accordance with their respective terms and conditions,
and save as provided for herein or therein, including nominal fees related to registration and enforcement of any of the Security Documents, no registration, filing, payment of tax or fees or other formalities are necessary or desirable to render
this Agreement and/or the Transaction Documents enforceable against the parties thereto, and for the Security Documents to constitute valid and enforceable first priority Security Documents as contemplated therein or herein. 

 

	16.5	Non-conflict 

 The entry into and performance by the Borrower of
this Agreement and the Transaction Documents to which it is a party, and the transactions contemplated herein and therein, do, in the opinion of the Borrower, not and will not conflict with: 

 

	(i)	any present law or regulation or judicial or official order (including the Directive 91/308/EEC of the Council of the European Communities implemented to combat money laundering); 

 

	(ii)	any articles of association or other constitutional documents of the Borrower; and 

  

	(iii)	any document or agreement which is binding upon the Borrower, or any of its assets. 

  

	16.6	No Default 

  

	(a)	No Default is outstanding or might result from the making of any Drawdown; 

  

	(b)	no other event is outstanding which constitutes or, (with the giving of notice, lapse of time, determination of materiality or the fulfilment of any other applicable condition, or any combination of the foregoing,)
might constitute an event of default under any document which is binding upon the Borrower or any of its assets, and which may have a material effect on the Borrower’s ability to perform its obligations under this Agreement, the Security
Documents or the Swap Agreement (as the case may be); and 

  

	(c)	no amendments or waivers have been made under any of the Transaction Documents, and no event of default has occurred or is threatening thereunder. 

  
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	16.7	Authorisations 

 All authorisations required in connection with the entry into, performance, validity and
enforceability of, and the transactions contemplated by, this Agreement and the Transaction Documents have been obtained or effected (as appropriate) and are in full force and effect, as and so required thereunder. 

 

	16.8	Financial information 

 All financial documents and information relating to the Borrower or otherwise
relevant to the matters contemplated by this Agreement which have been supplied to the Agent or the Banks are complete and correct in all material respects, and the Borrower has not omitted to disclose to the Agent or the Banks any information,
documents or agreements known to the Borrower which, if disclosed, could in the Borrower’s opinion reasonably be expected to affect the decision of the Banks to enter into this Agreement. 

 

	16.9	Litigation 

 No litigation, arbitration or administrative proceedings are current or, to the
Borrower’s knowledge, pending or threatened against the Borrower which might, if adversely determined, be reasonably expected to have a material adverse effect on the ability of the Borrower to perform its obligations under this Agreement or
the Transaction Documents (as the case may be). 
  

	16.10	Pari passu 

 The Borrower’s obligations under this Agreement, the Security Documents and the Swap
Agreement to which it is a party are their direct, general and unconditional obligations and rank at least pari passu with all its other present and future unsecured and unsubordinated indebtedness. 

 

	16.11	No withholding Taxes 

 No Taxes are imposed by withholding or otherwise on any payment to be made by the
Borrower under this Agreement, the Security Documents or the Swap Agreement or are imposed on or by virtue of the execution or delivery by the Borrower of this Agreement, the Security Documents or the Swap Agreement to which it is or is to be a
party or any other document or instrument to be executed or delivered under this Agreement, any of the Security Documents or the Swap Agreement. 
  

	16.12	No material adverse change 

 There has been no material adverse change in the financial position of the
Borrower from that described to the Banks during the negotiation of this Agreement. 
  

	16.13	Times for making representations and warranties 

 The representations and warranties set out in this
Clause 16 are made by the Borrower on the date of this Agreement and are deemed to be repeated by the Borrower on the date of the Drawdown Notice and each Renewal Notice, as well as the first day in each Interest Period, with reference to the
facts and circumstances then existing, unless otherwise notified to the Agent in writing, and if not permitted under this Agreement, waived by the Banks prior to such dates. 

  
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	17.	UNDERTAKINGS 

  

	17.1	Duration 

 The undertakings in this Clause 17 remain in force from the date of this Agreement and
for so long as any amount is outstanding under this Agreement. 
  

	17.2	Financial information 

 The Borrower shall supply to the Agent in sufficient copies for all of the Banks:

  

	(i)	as soon as reasonably practicable after the same are available (and in any event no later than 150 days after each fiscal year) the audited unconsolidated and consolidated accounts of the Borrower for that financial
year; and 

  

	(ii)	as soon as reasonably practicable after the same are available (and in any event no later than 90 days after each half-year) the unaudited unconsolidated and consolidated accounts of the Borrower for each half-year, and

  

	(iii)	the Compliance Certificate on a semi-annual basis regarding the Borrower within 90 days after each half-year. 

  

	17.3	Information – Miscellaneous 

 The Borrower shall supply to the Agent, in sufficient copies for all
of the Banks: 
  

	(a)	promptly, such specific financial or other information regarding the financial condition and operations or other information of the Borrower as the Agent (or any Bank through the Agent) may reasonably request;

  

	(b)	promptly upon becoming aware of them, relevant details of any material litigation, arbitration or administrative proceedings which are current or, to its knowledge, threatened or pending against the Borrower and which
might, if adversely determined, be reasonably expected to have a material adverse effect on the ability of the Borrower to perform its obligations under this Agreement or the Transaction Documents (as the case may be), and further details of any
such matters previously disclosed to the Agent, if the likelihood of an adverse determination has increased, as the Agent or any Bank acting through the Agent may reasonably request. 

 

	17.4	Notification of Default 

 The Borrower shall notify the Agent of any Default which is continuing (and the
steps, if any, being taken to remedy it) promptly upon its occurrence. 

  
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	17.5	Insurances 

  

	(a)	The Borrower shall maintain the Vessel insured against such risks (including, but not limited) to Hull and Machinery, Hull Interest, Freight Interest, Protection & Indemnity (including highest possible maximum
cover for the Vessel for pollution for the time being USD 1,000,000,000.-), Loss of Hire and War Risk insurances, in such amount, on such terms (always applying Norwegian law and including the terms of the Norwegian Marine Insurance Plan or
equivalent terms in relation to losses payable thereunder) and with such insurers and through such brokers as the Agent on behalf of the Banks shall approve. 

  

	(b)	The insurance value of the Vessel (Hull and Machinery and Hull Interest) shall be at least 120 per cent of the Loan. 

The aggregate Hull and Machinery insurance values of the Vessel shall furthermore, at all times, cover the higher of the Loan and 80 per
cent. of the Vessel’s’ Market Value, while the remaining cover may be taken out by way of Hull Interest and Freight Interest insurances. 
  

	(c)	The Borrower shall deliver to the Agent a certificate from the insurance broker(s) through whom the insurances relevant to Vessel has been placed, evidencing that all insurances referred to in item (a) have been
renewed (at the same conditions and with insurers satisfactory to the Banks) and taken out in respect of the Vessel with insurance values as required by item (b), that such insurances are in full force and effect and that the Agent’s (on behalf
of the Banks) interest therein have been noted by the relevant insurers. 

  

	(d)	The Borrower shall procure that the Vessel always is employed in conformity with the terms of the instruments of insurances (including any warranties expressed or implied therein) and comply with such requirements as to
extra premium or otherwise as the insurers may prescribe. 

  

	(e)	Each Bank and the Agent may (at the Borrower’s expense) take out a Mortgagee Interest Insurance (covering 120 per cent of the principal amount outstanding hereunder) and a Mortgagee Interest - Additional
Perils Insurance (Pollution Cover) insurance (covering 110 % of the principal amount outstanding hereunder) relevant to the Vessel in a form and substance satisfactory to the relevant Bank and/or Agent, such policy to be made in favour of the
Agent and/or relevant Bank, or, the Borrower shall, if so directed by the Agent, arrange for such insurance cover to be taken out in accordance with instructions from the Agent. 

 

	(f)	The Borrower shall procure that before the Vessel is entering any US territory provide for the Vessel to be in compliance with all US regulations relevant to the Vessel, including oil pollution regulations and
requirements with respect to certificate of financial responsibility (“COFR”) which shall be arranged with insurers and on terms approved by the Agent. 

 

	17.6	Notification 

 The Borrower shall immediately notify the Agent of: 

 

	(a)	any accident to the Vessel involving repairs the cost of which is likely to exceed USD 1,000,000.-; 

  

	(b)	any Total Loss relevant to the Vessel; 

  
 25/50 

	(c)	any arrest of the Vessel or the exercise or purported exercise (of which the Borrower has knowledge of) of any lien on the Vessel, the earnings or any of the Pledged Accounts; and 

 

	(d)	any claim for breach of the ISM Code being made against the Borrower, the Manager or otherwise in connection with the Vessel owned by it; or any other matter, event or incident, actual or threatened, the effect of which
will or could lead to the ISM Code not being complied with. 

  

	17.7	Total loss 

 In the event that the Vessel shall suffer a Total Loss, the Borrower shall, within a period
of 90 days after the occurrence of such event, obtain and present to the Agent, a written confirmation from the relevant insurers that the claim relating to the Total Loss has been accepted in full, and promptly upon receipt of insurance proceeds in
respect of the Total Loss, apply such proceeds as prepayment of the Loan pursuant to Clause 6.3. 
  

	17.8	Class and International Regulations 

  

	(a)	The Borrower shall procure that the Vessel is classified and maintained in the highest class with Det Norske Veritas or another classification society acceptable to the Banks, and at all times comply with the rules and
regulations of the relevant class society. Furthermore, the Borrower shall at all times ensure compliance with all international conventions and regulations applicable to the Vessel, including SOLAS conventions. Consequently, the Borrower shall
ensure compliance with the ISM-Code and shall ascertain that the Manager, and any other company performing management services on behalf of the Borrower, comply with said Conventions and Regulations; 

 

	(b)	The Borrower shall procure that each such classification society shall make available to the Agent upon its request such information and documents in respect of the Vessel as are maintained in the records of such
classification society; and 

  

	(c)	The Borrower shall not change the Vessel’s class without the prior written consent of the Banks. 

  

	17.9	Inspection 

 One person appointed by the Agent shall be permitted to inspect the Vessel limited, however,
to once every twelve months, for the account of the Borrower upon the Agent giving prior notice thereof, such inspections not to interfere with the operation of the Vessel and not to take place if dangerous situations may occur (provided, however,
that if a Default shall occur the Agent shall have the right to a reasonable number of inspections of the Vessel for the account of the Borrower), and the Borrower shall upon the Agent’s request provide the Agent with copies of the latest
inspection reports in respect of the Vessel which are available to the Borrower or the Manager. 

  
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	17.10	Flag 

 The Borrower shall not change flag or ship registry of the Vessel or allow the Vessel to be dual
registered without the prior written consent of the Banks, such consent not to be unreasonably withheld. 
  

	17.11	Management Agreement / Charterparty 

 The Borrower shall not without the prior written consent of the
Banks amend or terminate the Management Agreement or the Charterparty if the Vessel is affected (provided that the Borrower will notify the Agent of the amendments) or change the management of the Vessel in any way. 

 

	17.12	Negative Pledge, nor further borrowings 

 Except as contemplated by this Agreement and/or the Security
Documents, the Borrower shall not as from the date hereof: 
  

	(a)	create, incur or assume any Security Interest on the Vessel (other than the Mortgage) or any of its other assets, and not make any assignment of right to receive earnings or proceeds of insurance policies covering the
Vessel; 

  

	(b)	incur any Financial Indebtedness of any nature or incur any debt or obligations other than debt and obligations incurred during normal course of business; 

 

	(c)	make any loans (including intercompany loans and deposits) nor issue any guarantee which is not related to the ordinary operation of the Vessel to any company or person outside the MLP Group. As long as no Event of
Default has occurred or is threatening, the Borrower shall be allowed to incur and to make intercompany loans or deposits and to freely accept and grant equity contributions in any form to or from companies in the MLP Group, such intercompany loans,
deposits, or equity contributions to be subordinated to the Banks’ rights. 

  

	17.13	Dividend and other payments 

 The Borrower may declare or pay any dividends or otherwise make any other
distribution of assets to any shareholder whether in cash or otherwise, provided that; (a) no Event of Default has occurred or will occur at the time of payment of such dividend and (b) after payment of such dividend, the remaining
liquidity of the Borrower will equal or exceed the aggregate amount of (i) the instalments falling due in the next 6 months after the dividend payment date and (ii) the amount estimated by the Agent as being the amount of interest on the
Loan which will fall due for payment by the Borrower under Clause 8 during that 6 month period. 
  

	17.14	Pari passu 

 The Borrower will ensure that its obligations under this Agreement shall, at all times rank
at least pari passu with all its other present and future unsecured and unsubordinated indebtedness with the exception of any obligations which are mandatorily preferred by law and not by contract. 

  
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	17.15	Investments 

 The Borrower will not make any investments in excess of USD 1,000,000.- without the
prior written consent of the Banks. 
  

	17.16	Compliance with laws etc. 

 The Borrower shall comply with all mandatory laws and regulations relating to
the Vessel, its ownership, operation and management or to the business of the Borrower. 
  

	17.17	Maintenance and change of business 

  

	(i)	The Borrower shall remain a private limited company, with no other activity than the ownership of the Vessel . 

  

	(ii)	The Borrower shall not enter into any form of amalgamation, merger or demerger, divest or consolidate with any other entity or any form of reconstruction or reorganisation without the prior written consent of the Banks.

  

	17.18	Compliance Certificates 

 The Borrower undertakes throughout the Loan Period to provide to the Agent, on
a semi-annual basis together with the financial information to be provided by the Borrower as specified in Clause 17.2 (Financial information), a Compliance Certificate signed by authorised signatories of the Borrower. 

 

	17.19	Minimum Value 

  

	(a)	The Borrower shall ensure that the Market Value of the Vessel covers at all times 110 % of the Loan throughout the Loan Period. 

 

	(b)	The Market Value of the Vessel shall be determined at the expense of the Borrower on the demand by the Agent at such intervals as the Agent may from time to time decide. However, valuations (by two brokers) obtained at
the expense of the Borrower to be limited to two per year. 

  

	17.20	Accounts 

  

	(a)	The Borrower will procure that all earnings in respect of the operation of the Vessel hereunder but not limited to payment of hire under the Charterparty shall be paid to the Earnings Account. 

 

	(b)	The Borrower will procure that at the end of each month 1/6th of the amount of the next semi annual instalment shall be paid to the Retention Account. 

 

	17.21	Swaps 

 The Borrower will notify the Agent and the Swap Bank if the Borrower intents to enter into any
interest and/or currency swap arrangements or similar instrument. 

  
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 The Borrower hereby gives the Swap Bank right of first refusal entering into an agreement with the Borrower in
respect of interest and/or currency swap transactions, such transaction to be made under the Swap Agreement. 
  

	18.	DEFAULT 

  

	18.1	Events of Default 

 Each of the events set out in Clauses 18.2 to 18.20 (inclusive) is an Event of
Default (whether or not caused by any reason whatsoever outside the control of the Borrower or any other person). 
  

	18.2	Non-payment 

 The Borrower does not pay on the due date an amount payable by it under this Agreement at
the place at, and in the currency in which it is expressed to be payable, provided that if such failure to pay has arisen as a consequence of an administrative or technical error beyond control of the Borrower only then such event shall not be an
Event of Default unless such failure continues for a period in excess of three Business Days. 
  

	18.3	Breach of other obligations 

 The Borrower does not comply with any provision of this Agreement (other
than those referred to in Clause 18.2 (Non-payment)), provided that if such non-compliance is, in the opinion of the Banks, capable of remedy: 

 

	(i)	the Agent notifies the Borrower of such non-compliance; and 

  

	(ii)	such non-compliance remains unremedied for a period of 10 Business Days. 

A breach of Clause 17.5 (Insurances) is not capable of remedy. 
  

	18.4	Misrepresentation 

 A material representation, warranty or statement made or repeated in or in connection
with this Agreement or in any document delivered by or on behalf of the Borrower under connection with this Agreement was incorrect or misleading in any respect when made or deemed to be made or repeated. 

 

	18.5	Cross-default 

 An event of default howsoever described (or any
event which with the giving of notice, lapse of time, determination of materiality or fulfilment of any other applicable condition or any combination of the foregoing would constitute such an event of default) occurs under any of the Transaction
Documents, or under any other agreement to which the Borrower is a party and such event of default in the sole and reasonable opinion of the Banks may have effect on the financial condition of any of the Borrower or its ability to perform its
obligations hereunder or under the Security Documents to which it is a party. 

  
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	18.6	Liens 

 A maritime or other lien, arrest, distress or similar charge is levied upon, or against the
Vessel, the earnings, the Accounts or any other part of the assets of the Borrower (save for as contemplated by this Agreement) and is not discharged within 30 Business Days after the Borrower became aware of the same. 

 

	18.7	Insolvency 

 An order of a competent court or an event analogous thereto shall be made or any effective
resolution passed with a view to the bankruptcy, commencement of composition proceedings, debt negotiations, liquidation, winding-up or similar event of the Borrower. 
  

	18.8	Admittance of non-payment 

 The Borrower is unable or admits in writing its inability to pay its lawful
debts as they fall due. 
  

	18.9	Termination of business 

 The Borrower ceases or threaten to cease to carry on its business or materially
change its business, whether by one or a series of transactions. 
  

	18.10	Permits 

 Any licence, consent, permission or approval required in order to enforce, complete or perform
the Agreement and/or the Transaction Documents is revoked, terminated or modified. 
  

	18.11	Impossibility or illegality 

 It becomes impossible or unlawful for the Borrower to fulfil any of the
terms of the Agreement or the Security Documents, for the Agent on behalf of the Banks to exercise any right or power vested in the Agent under the Security Documents, or the security created by any of the Security Documents is imperilled, or for
any reason whatsoever cease to be valid and enforceable with its intended priority. 
  

	18.12	Transaction Documents 

 Any of the Transaction Documents are (in the Lenders’ sole discretion)
materially amended, cancelled or terminated or any waivers are agreed thereunder (except to the extent provided for in this Agreement). 
  

	18.13	Material adverse change 

 Any event or series of events occurs which, in the reasonable opinion of the
Agent (on behalf of the Banks), may have a material adverse effect on the ability of any of the Borrower to comply with any of its respective obligations under this Agreement or any of the other Transaction Documents. 

  
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	18.14	Events in Security Documents 

 Any of the events of default specified in any of the Security Documents
arise or occur. 
  

	18.15	Mergers and reconstructions 

 The Borrower effects any demerger, split up, divest merger, joint venture,
reconstruction or recapitalisations, without the prior written consent of the Banks. 
  

	18.16	Change of ownership 

  

	(a)	The Borrower ceases to be a direct or indirect wholly owned (share capital and voting rights) subsidiary of KNOT Offshore Partners LP. 

 

	(b)	KNOT Offshore Partners LP ceases to be in the 33.1/3 % direct or indirect ownership (share capital and voting rights subject to the limitations on voting rights relating to election of board members, amendments and
certain other matters as set out in the Limited Partnership Agreement) of the Sponsor, or if any person or group of persons acting in concert (other than the Sponsor (or any wholly owned Subsidiaries thereof)) acquires more than 33.1/3 % of the
share capital or voting rights of KNOT Offshore Partners LP 

  

	(c)	The General Partner ceases to be a direct or indirect wholly owned (share capital and voting rights) subsidiary of the Sponsor. 

  

	18.17	Listing 

 KNOT Offshore Partners LP ceases to be listed on the New York Stock Exchange (NYSE). 

 

	18.18	General Partner 

  

	a)	The General Partner ceases to be the general partner in KNOT Offshore Partners LP, and/or 

  

	b)	the General Partner ceases to own minimum 2% of the interests in KNOT Offshore Partners LP, and/or 

  

	c)	the General Partner ceases the right to appoint three (3) out of seven (7) board directors to the board of directors in KNOT Offshore Partners LP (or if there is a change in the number of directors, the
corresponding numbers). 

  

	18.19	Sponsor Undertaking 

 The Sponsor does not fulfil its obligations pursuant to the Sponsor Undertaking.

  

	18.20	Repayment of the Second Windsor Loan 

 The Borrower has not repaid the Second Windsor Loan 5 Business
Days after the Effective Date. 

  
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	18.21	Acceleration 

 On and at any time after the occurrence of an Event of Default whilst such Event of
Default is continuing unremedied and unwaived, the Agent may, and shall if so directed by the Banks, by notice to the Borrower:- 
  

	(a)	without prejudice to any parts of the Loan advanced hereunder cancel the Commitment; and 

  

	(b)	demand that all or part of the Loan, together with accrued interest, and all other amounts accrued under this Agreement be immediately due and payable, whereupon they shall become immediately due and payable.

  

	(c)	without prejudice to any of the Banks’ other rights, with or without notice to the Borrower, take such other action as is available to the Banks under the Agreement and the Security Documents. 

 

	19.	THE AGENT 

  

	19.1	Appointment and duties of the Agent 

 Each Bank hereby appoint the Agent to act as its agent under and in
connection with this Agreement and Security Documents, and authorises the Agent on its behalf to perform the duties and to exercise the rights, powers and discretion that are specifically delegated to it under or in connection with this Agreement,
together with any other incidental rights, powers and discretion. The Agent has only those duties which are expressly specified in this Agreement. Without prejudice to the binding nature of such duties, they are solely of a mechanical and
administrative nature. 
  

	19.2	Relationship 

 The relationship between the Agent and the Banks is that of agent and principal only.
Nothing in this Agreement constitutes the Agent as trustee or fiduciary for any other Party or any other person and the Agent need not hold in trust any moneys paid to it for a Party or be liable to account for interest on those monies. 

 

	19.3	The Banks’ directions 

 The Agent will be fully protected if it acts in accordance with the
instructions of the Banks in connection with the exercise of any right, power or discretion or any matter not expressly provided for in this Agreement. In the absence of such instructions, and if deemed absolutely necessary to act quickly and before
such instructions can be obtained the Agent may act in relation thereto as it considers to be in the best interests of all the Banks. The Agent may not commence legal proceedings in a Bank’s name without such Bank’s consent. 

 

	19.4	Responsibility for documentation 

 Neither the Agent nor any of their officers, employees or agents are
responsible to any other Party for: 
  

	(a)	the execution, genuineness, validity, enforceability or sufficiency of this Agreement or any other document; 

  
 32/50 

	(b)	the collectability of amounts payable under this Agreement; or 

  

	(c)	the accuracy of any statements (whether written or oral) made in or in connection with this Agreement. 

  

	19.5	Default 

  

	(a)	The Agent is not obliged to monitor or enquire as to whether or not a Default has occurred. The Agent will not be deemed to have knowledge of the occurrence of a Default. However, if the Agent receives notice from a
Party referring to this Agreement, describing the Default and stating that the event is a Default, or if the Agent in this capacity has otherwise acquired actual knowledge of an Event of Default, it shall promptly notify the Banks.

  

	(b)	The Agent may require the receipt of security satisfactory to it from any Bank, whether by way of payment in advance or otherwise, against any liability or loss which it will or may incur in taking any proceedings or
action arising out of or in connection with this Agreement before it commences those proceedings or takes that action. 

  

	19.6	Exoneration 

  

	(a)	Without limiting paragraph (b) below, the Agent will not be liable to any Bank for any action taken or not taken by it under or in connection with this Agreement and the Security Documents, unless caused by its
gross negligence or wilful misconduct. 

  

	(b)	No Party may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind (including gross negligence
or wilful misconduct) by that officer, employee or agent in relation to this Agreement and the Security Documents. 

  

	19.7	Reliance 

 The Agent may: 
  

	(i)	rely on any notice or document believed by it to be genuine and correct and to have been signed by, or with the authority of, the proper person; 

 

	(ii)	rely on any statement made by a director or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify; and 

 

	(iii)	engage, pay for and rely on legal or other professional advisers selected by it (including those in the Agent’s employment and those representing a Party other than the Agent). 

  
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	19.8	Approval and appraisal 

 Without affecting the responsibility of the Borrower for information supplied by
it or on its behalf in connection with this Agreement, each Bank confirms that it: 
  

	(a)	has made its own independent investigation and assessment of the financial condition and affairs of the Borrower and its related entities in connection with their participation in this Agreement and has not relied
exclusively on any information provided to it by the Agent in connection with this Agreement; and 

  

	(b)	will continue to make its own independent appraisal of the creditworthiness of the Borrower, and its related entities while any amount is or may be outstanding under this Agreement or any Commitment is in force.

  

	19.9	Information 

  

	(a)	The Agent shall promptly forward to the person concerned the original or a copy of any document which is delivered to the Agent by a Party for that person. 

 

	(b)	The Agent shall supply each Bank with a copy of each document received by the Agent under Clause 3 (Conditions precedent). 

  

	(c)	Except where this Agreement specifically provides otherwise, the Agent is not obliged to review or check the accuracy or completeness of any document it forwards to another Party. 

 

	19.10	The Agent as Banks 

  

	(a)	The Agent as Banks, has the same rights and powers under this Agreement as any other Bank and may exercise those rights and powers as though it was not the Agent. 

 

	(b)	The Agent may: - 

  

	(i)	carry on any business with the Borrower or their related entities; 

  

	(ii)	act as agent or trustee for, or in relation to any financing involving, the Borrower or its related entities; and 

  

	(iii)	retain any profits or remuneration in connection with their activities under this Agreement or in relation to any of the foregoing. 

 

	19.11	Indemnities 

  

	(a)	Without limiting the liability of the Borrower under this Agreement, each Bank shall forthwith on demand indemnify the Agent for its proportion of any liability or loss incurred by the Agent in any way relating to or
arising out of its acting as Agent, except to the extent that the liability or loss arises from the Agent’s gross negligence or wilful misconduct. 

  
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	(b)	A Bank’s proportion of the liability or loss set out in paragraph (a) above will be the proportion which its participation in the Loan bears on the date of the demand. If, however, there is no part of the Loan
outstanding on the date of demand, then the proportion will be the proportion which its Commitment bears to the Commitment of all the Banks at the date of demand or, if the Commitment has then been cancelled, bore to the Commitment immediately
before being cancelled. 

  

	(c)	The Borrower shall forthwith on demand reimburse each Bank for any payment made by it under paragraph (a) above provided that the Borrower shall not thereby be liable for any additional costs for which it would not
otherwise be liable. 

  

	(d)	Without prejudice to the liability of the Borrower, each Bank shall reimburse the Agent the amount of such Bank’s pro rata share of charges and expenses covered under, but not reimbursed by the Borrower under,
Clause 21 (Expenses) below. 

  

	19.12	Compliance 

  

	(a)	The Agent may refrain from doing anything which might, in its opinion, constitute a breach of any law or regulation or be otherwise actionable at the suit of any person, and may do anything which, in its opinion, is
necessary or desirable to comply with any law or regulation of any jurisdiction. 

  

	(b)	Without limiting paragraph (a) above, the Agent need not disclose any information relating to the Borrower or any of its related entities if the disclosure might, in the reasonable opinion of the Agent, constitute
a breach of any law or regulation or any duty of secrecy or confidentiality or be otherwise actionable at the suit of any person. 

  

	19.13	Resignation of the Agent 

  

	(a)	If the Banks so direct, due to a default by the Agent hereunder, or due to a conflict of interest between the Agent’s duties hereunder and other interests the Agent may have which involve the Borrower, the Agent
shall resign by giving notice to the Banks and the Borrower, in which case the Banks may, after consultation with, but with no costs for, the Borrower, appoint a successor Agent. 

 

	(b)	The Agent may resign (without reason) its appointment at any time by giving a 30 days’ prior written notice to the parties hereto. The resignation shall only become effective upon the appointment of a new agent.
The Banks may appoint a new agent among any reputable and experienced finance institution. Upon the appointment of a new agent, such new agent shall assume all rights and obligations from such time designated by the Agent, and the Agent shall from
such time be discharged from any further obligations hereunder. 

  

	19.14	Banks 

 The Agent may treat each Bank as a Bank, entitled to payments under this Agreement until it has
received not less than five Business Days’ prior notice from that Bank to the contrary. The Agent shall maintain a list of the Banks and their respective addresses for notices, and shall, promptly upon request from any Party from time to time,
supply a copy of that list to that Party. 

  
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	20.	FEES 

  

	20.1	Agency Fee 

 In case there are more than one Bank as lender hereunder at any relevant time the Borrower
shall pay to the Agent a non refundable yearly agency fee of USD 5,000.- yearly in advance until all amounts outstanding hereunder have been repaid. 
  

	21.	EXPENSES 

  

	21.1	Initial and special costs 

 The Borrower shall promptly following demand pay the Agent the amount of all
reasonable costs and expenses (including legal fees) incurred by the Agent in connection with: 
  

	(i)	the negotiation, preparation, printing and execution of this Agreement and any other documents referred to in this Agreement (including - for the avoidance of doubt - any expenses incurred by the Banks with respect to
the legal opinions as stipulated in Schedule 2); 

  

	(ii)	execution and registration of the Security Documents; 

  

	(iii)	any amendment, waiver, consent or suspension of rights (or any proposal for any of the foregoing) requested (or, in the case of a proposal, made) by or on behalf of the Borrower and relating to this Agreement or a
document referred to in this Agreement; and 

  

	(iv)	any other matter, not of an ordinary administrative nature, arising out of or in connection with this Agreement. 

  

	21.2	Enforcement costs 

 Following an Event of Default, the Borrower shall promptly following demand pay to
the Agent and/or a Bank (as the case may be) the amount of all costs and expenses (including legal fees) properly incurred by it in connection with the enforcement of or the preservation of, any rights under this Agreement and the Security
Documents. 
  

	22.	INDEMNITIES 

  

	22.1	Currency indemnity 

  

	(a)	If a Bank receives an amount in respect of the Borrower’s liability under this Agreement or if that liability is converted into a claim, proof, judgement or order in a currency other than the currency in which the
amount is expressed to be payable under this Agreement, the Borrower shall indemnify that Bank as an independent obligation against any loss or liability arising out of or as a result of the conversion. 

  
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	(b)	The Borrower waives any right they may have by law to pay any amount under this Agreement in a currency other than that in which it is expressed to be payable. 

 

	22.2	Other indemnities 

 The Borrower shall forthwith on demand indemnify each Bank against any loss or
liability (including funding breakage costs) which that Bank reasonably and properly incurs and which the Bank certifies (in a certificate containing reasonable detail) that it has incurred as a consequence of: 

 

	(i)	the occurrence of any Event of Default; 

  

	(ii)	the operation of Clause 18.21 (Acceleration); 

  

	(iii)	any repayment or prepayment of principal or payment of an overdue amount being made otherwise than on the last day of a relevant Interest Period or Interest Period (as defined in Clause 8.3 (Default interest))
relative to the amount so repaid, prepaid or paid; and 

  

	(iv)	the Loan not being drawn after the Borrower has delivered a Drawdown Notice or the Loan (or part of the Loan) not being prepaid in accordance with a notice of prepayment. 

The liability of the Borrower in each case includes any loss of margin or other loss or expense on account of funds borrowed, contracted for or utilised to
fund any amount payable under this Agreement, but the Borrower’s liability shall in no circumstances extend to any loss or expense to the extent that it arises as a consequence of any gross negligence or wilful default of a Bank. 

 

	23.	CALCULATIONS 

 Interest and fees payable under Clauses 8 (Interest) and 20 (Fees) accrue from day to
day and are calculated on the basis of the actual number of days elapsed and a year of 360. 
  

	24.	AMENDMENTS AND WAIVERS 

  

	24.1	Banks 

  

	(a)	Any term of this Agreement and the Security Documents may only be amended, waived or discharged in writing by the Agent if authorised by the Banks. The Agent shall effect, on behalf of the Banks any amendment, waiver or
discharge to which they have agreed. 

  

	(b)	The Agent shall promptly notify the Banks of any amendment or waiver effected under paragraph (a) above and any such amendment or waiver shall be binding on all the Banks. 

 

	24.2	Waivers and remedies cumulative 

 The rights of each Bank under this Agreement: 

 

	(i)	may be exercised as often as necessary; 

  
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	(ii)	are cumulative and not exclusive of its rights under the general law; and 

  

	(iii)	may be waived only in writing and specifically. 

 Delay in exercising or
non-exercise of any such right is not a waiver of that right. 
  

	25.	CHANGES TO THE PARTIES 

  

	25.1	Transfer by the Borrower 

 The Borrower may not assign, transfer, novate or dispose of any of, or any
interest in, its rights and/or obligations under this Agreement. 
  

	25.2	Transfers by Banks 

  

	(a)	A Bank (the “Existing Bank”) may at any time assign and transfer any of its rights and/or obligations under this Agreement to any of its Subsidiaries or after prior consultation with the Borrower to
another bank, financial institution or entity (such Affiliate or bank or institution or entity being the “New Bank” . 

  

	(b)	A transfer of obligations will be effective only if the New Bank confirms to the Agent and the Borrower that it undertakes to be bound by the terms of this Agreement as a Bank in form and substance satisfactory to the
Agent. On the transfer becoming effective in this manner the Existing Bank shall be relieved of its obligations under this Agreement to the extent that they are transferred to the New Bank. 

 

	(c)	An Existing Bank is not responsible to a New Bank for: 

  

	 	(i)	the execution, genuineness, validity, enforceability or sufficiency of this Agreement or any other document; 

  

	 	(ii)	the collectability of amounts payable under this Agreement; or 

  

	 	(iii)	the accuracy of any statements (whether written or oral) made in or in connection with this Agreement. 

  

	(d)	Each New Bank confirms to the Existing Bank and the other Banks that it: 

  

	 	(i)	has made its own independent investigation and assessment of the financial condition and affairs of the Borrower and its related entities in connection with its participation in this Agreement and has not relied
exclusively on any information provided to it by the Existing Bank in connection with this Agreement; and 

  

	 	(ii)	will continue to make its own independent appraisal of the creditworthiness of the Borrower and its related entities while any amount is or may be outstanding under this Agreement or any Commitment is in force.

  
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	(e)	Any reference in this Agreement to a Bank includes a New Bank but excludes a Bank if no amount is or may be owed to or by it under this Agreement and its Commitment has been cancelled or reduced to nil.

  

	(f)	Costs in connection with documenting (hereunder reasonable amendments and recordings) the transfer by the Banks hereunder shall be for the account of the Banks. 

 

	(g)	A Bank may disclose to a prospective New Bank, such information about the Borrower and/or the Transaction Documents as such Bank shall consider appropriate. 

 

	26.	PRO RATA SHARING 

  

	26.1	Redistribution 

 If any amount owing by the Borrower under this Agreement to a Bank (the “recovering
Bank”) is discharged by payment, set-off or any other manner other than through the Agent in accordance with Clause 9 (Payments) (a “recovery”), then: 

 

	(i)	the recovering Bank shall, within three Business Days, notify details of the recovery to the Agent; 

  

	(ii)	the Agent shall determine whether the recovery is in excess of the amount which the recovering Bank would have received had the recovery been received by the Agent and distributed in accordance with Clause 9
(Payments); 

  

	(iii)	subject to [    ], the recovering Bank shall, within three (3) Business Days of demand by the Agent, pay to the Agent an amount (the “redistribution”) equal to the excess;

  

	(iv)	the Agent shall treat the redistribution as if it were a payment by the Borrower under Clause 9 (Payments) and shall pay the redistribution to the Banks (other than the recovering Bank) in accordance with
Clause 9.7 (Partial payments); and 

  

	(v)	after payment of the full redistribution, the recovering Bank will be subrogated to the portion of the claims paid under paragraph (iv) above and the Borrower will owe the recovering Bank a debt which is equal to
the redistribution, immediately payable and of the type originally discharged. 

  

	26.2	Reversal of redistribution 

 If under Clause 26.1 (Redistribution): 

 

	(i)	a recovering Bank must subsequently return a recovery, or an amount measured by reference to a recovery, to the Borrower; and 

  

	(ii)	the recovering Bank has paid a redistribution in relation to that recovery, 

 each Bank shall, within three
Business Days of demand by the recovering Bank through the Agent, reimburse the recovering Bank all or the appropriate portion of the redistribution paid to that Bank. Thereupon, the subrogation in Clause 26.1 (v) will operate in reverse
to the extent of the reimbursement. 

  
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	26.3	Exception 

  

	(a)	A recovering Bank need not pay a redistribution to the extent that it would not, after the payment, have a valid claim against the Borrower in the amount of the redistribution pursuant to Clause 26.1 (v).

  

	(b)	A Bank is not entitled to participate in a redistribution if the redistribution results from the proceeds of a judicial enforcement order obtained by the recovering Bank and the other Bank had adequate notice of and
opportunity to participate in the proceedings concerned or bring its own proceedings but did not do so. 

  

	27.	SEVERABILITY 

 If a provision of this Agreement is or becomes illegal, invalid or unenforceable in any
competent jurisdiction, that shall not affect the validity or enforceability in that jurisdiction of any other provision of this Agreement or the validity or enforceability in other jurisdictions of that or any other provision of this Agreement.

  

	28.	NOTICES 

  

	28.1	Giving of notices 

 All notices or other communications under or in connection with this Agreement shall
be given or made in writing, by letter or telefax. Any such notice or communication will be deemed to be given or made as follows: 
  

	(i)	if by letter, when delivered at the address of the relevant Party; and 

  

	(ii)	if by telefax or e-mail (to follow by mail/fax) when received. 

 However, a notice given in accordance with the
above but received on a day which is not a Business Day or after 4:00 p.m. in the place of receipt will only be deemed to be given at 9:00 a.m. on the next Business Day in that place. 

 

	28.2	Addresses for notices 

  

	(a)	The address and the telefax number code of each Party (other than the Agent and the Borrower) for all notices or other communications under or in connection with this Agreement are those notified by that Party for this
purpose to the Agent on or before the date it becomes a Party; or any other notified by that Party for this purpose to the Agent by not less than five Business Days’ notice. 

 

	(b)	The address, the telefax number: 

  
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	 	(i)	of the Agent is: 

 HSH Nordbank AG 

Gerhart-Hauptmann-Platz 50 

20095 Hamburg 
 Germany 

Telefax:    +49 40 33 33 34269 
  

	 	(ii)	of the Borrower: 

 KNOT Shuttle Tankers 18 AS 

Smedasundet 40 
 P.O.Box 2017,

 5504 Haugesund 
 Norway

 Telefax:    +47 52 70 40 40 

Attn.: 
 or such other address
and/or telefax number and/or marked for such other attention as the Agent may notify to the other Parties by not less than five (5) Business Days’ prior notice. 
  

	(c)	All notices from or to the Borrower related to this Agreement shall be sent through the Agent. 

  

	(d)	The Agent shall, promptly upon request from any Party, give to that Party the address and/or the telefax number code of any other Party applicable at the time for the purposes of this Clause. 

 

	29.	JURISDICTION 

 For the benefit of the Agent, each Bank and the Borrower agree that the courts of Norway
have jurisdiction to settle any disputes in connection with this. 
 Agreement and accordingly submits to the
non-exclusive jurisdiction of the Oslo district court. Nothing in this Clause 29 shall limit the right of the Agent or any Bank to start proceedings against the Borrower in any other court of competent
jurisdiction. 
  

	30.	GOVERNING LAW 

 This Agreement is governed by Norwegian law. 

o o o O o o o 

  
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 SCHEDULE 1 

BANKS AND COMMITMENTS 
  

													
	 	  	Tranche A	 	  	Tranche B	 	  	%	 
	 HSH Nordbank AG

Gerhart-Hauptmann-Platz 50, 20095 Hamburg, Germany
	  	 	USD 31,166,000	  	  	 	USD 48,634,000	  	  	 	100	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  	 	USD 31,166,000	  	  	 	USD 48,634,000	  	  	 	100	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  
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 SCHEDULE 2 

Intentionally left blank 

  
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 SCHEDULE 3 

FORM OF 
 DRAWDOWN NOTICE

  

	To:	HSH Nordbank AG as Agent 

 Gerhart-Hauptmann-Platz 50 

20095 Hamburg 
 Germany 

Tel.:  +(    ) 

Fax.:  +49 40 3333 34269 

Attn.: Credit Adm. 
 Date:
    2007 
 SENIOR SECURED LOAN FACILITY AGREEMENT DATED 25 APRIL 2007 (THE “AGREEMENT”) 

We refer to Clause 4 of the Agreement. Terms used in this Drawdown Notice have the same meanings as in the Agreement. 

 

	l.	We wish to draw the Loan as follows: 

  

	 	(a)	Drawdown Date:                      

 

	 	(b)	Interest Period:                      

 

	 	(c)	Instructions for payment of the Loan:                             

  

	2.	We confirm that each condition specified in Clause 3.2 (Further conditions precedent) is satisfied on the date of this Drawdown Notice. 

 

	3.	We further confirm that: 

  

	 	(a)	no event or circumstance has occurred and is continuing, which constitutes, or which with the giving of notice or lapse of time or both, would constitute a Default under the Agreement; and that 

 

	 	(b)	the representations and warranties contained in Clause 16 of the Agreement are true and correct at the date hereof as if made with respect to the facts and circumstances existing at such date. 

By: 
 KNOT SHUTTLE TANKERS 18 AS 

Authorised Signatory 

  
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 SCHEDULE 4 

FORM OF 
 RENEWAL NOTICE

  

	To:	HSH Nordbank AG as Agent 

 Gerhart-Hauptmann-Platz 50 

20095 Hamburg 
 Germany 

Tel.: +(    ) 

Fax.: + 49 40 3333 34269 

Attn.: Credit Adm. 
 Date:
    2007 
 SENIOR SECURED LOAN FACILITY AGREEMENT DATED 25 APRIL 2007 (THE “AGREEMENT”) 

We refer to Clause 7.1 (b) in the Agreement. Terms used in this Renewal Notice shall have the same meanings as defined in the Agreement. 

We hereby: 
  

	1.	request an Interest Period in respect of [—] months from the next Interest Payment Date; and 

 

	2.	amount 

  

	3.	confirm that 

  

	 	(i)	no event or circumstance has occurred and is continuing, which constitutes, or which with the giving of notice or lapse of time or both, would constitute a Default under the Agreement; and that 

 

	 	(ii)	the representations and warranties contained in Clause 16 of the Agreement are true and correct at the date hereof as if made with respect to the facts and circumstances existing at such date. 

By: 
 KNOT SHUTTLE TANKERS 18 AS 

Authorised signatory 

  
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 SCHEDULE 5 

FORM OF 
 COMPLIANCE
CERTIFICATE 
  

					
	MINIMUM VALUE VESSELS	  		  	
			
	A: Sum loan	  	USD	  	
			
	B: Charter free value of mortgaged Vessel	  	USD	  	
			
	Requirement :	  		  	
			
	 B/A > 110 % of the loan
	  	==>	  	Compliance: Yes / No

  
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 SCHEDULE 6 

MANDATORY COSTS FORMULAE 
  

	1.	The Mandatory Costs are payable in addition to the interest rate to compensate Banks for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in
either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank. 

  

	2.	On the first day of each Interest Period (or as soon as possible thereafter) the Facility Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Bank, in accordance
with the paragraphs set out below. The Mandatory Costs will be calculated by the Facility Agent as a weighted average of the Banks’ Additional Cost Rates (weighted in proportion to the percentage participation of each Bank in the relevant Loan)
and will be expressed as a percentage rate per annum. 

  

	3.	The Additional Cost Rate for any Bank lending from a facility office in a participating member state of the European Union will be the percentage notified by that Bank to the Facility Agent. This percentage will be
certified by that Bank in its notice to the Facility Agent and the percentage shall be equal to the cost (expressed as a percentage of that Bank’s participation in all Loans made available from that facility office) of complying with the
minimum reserve requirements of the European Central Bank in respect of loans made from that facility office. 

  

	4.	The Additional Cost Rate for any Bank lending from a facility office in the United Kingdom will be calculated by the Facility Agent as follows: 

 

			
	E × 0.01	  	per cent per annum.
	300	  

 Where: 
  

	 	E	is designed to compensate Banks for amounts payable under the Fees Rules and is calculated by the Facility Agent as being the average of the most recent rates of charge supplied by the Reference Banks to the Facility
Agent pursuant to paragraph 6 below and expressed in pounds per £1,000,000. 

  

	5.	For the purposes of this Schedule: 

  

	 	(a)	“Eligible Liabilities” has the meaning given to it from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England; 

 

	 	(b)	“Fees Rules” means the rules on periodic fees contained in the supervision manual of the Financial Services Authority or such other law or regulation as may be in force from time to time in respect of
the payment of fees for the acceptance of deposits; 

  
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	 	(c)	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but taking
into account any applicable discount rate); and 

  

	 	(d)	“Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules. 

  

	6.	If requested by the Facility Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Facility Agent, the rate of charge payable by that Reference
Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Reference Bank as being the average of the Fee Tariffs applicable
to that Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank. 

  

	7.	Each Bank shall supply any information required by the Facility Agent for the purpose of calculating its Additional Cost Rate. In particular, but without limitation, each Bank shall supply the following information on
or prior to the date on which it becomes a Bank: 

  

	 	(a)	the jurisdiction of its facility office; and 

  

	 	(b)	any other information that the Facility Agent may reasonably require for such purpose. 

 Each
Bank shall promptly notify the Facility Agent of any change to the information provided by it pursuant to this paragraph. 
  

	8.	The rates of charge of each Reference Bank for the purpose of E in paragraph 4 above shall be determined by the Facility Agent based upon the information supplied to it pursuant to paragraphs 6 and 7 above and on the
assumption that, unless a Bank notifies the Facility Agent to the contrary, each Bank’s obligations in relation to cash ratio deposits and special deposits are the same as those of a typical bank from its jurisdiction of incorporation with a
facility office in the same jurisdiction as its facility office. 

  

	9.	The Facility Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Bank and shall be entitled to assume that the information provided by
any Bank or Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects. 

  

	10.	The Facility Agent shall distribute the additional amounts received as a result of the Mandatory Costs to the Banks on the basis of the Additional Cost Rate for each Bank based on the information provided by each Bank
and each Reference Bank pursuant to paragraphs 3, 6 and 7 above. 

  

	11.	Any determination by the Facility Agent pursuant to this Schedule in relation to a formula, the Mandatory Costs, an Additional Cost Rate or any amount payable to a Bank shall, in the absence of manifest error, be
conclusive and binding on all Parties. 

  
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	12.	The Facility Agent may from time to time, after consultation with the Borrower and the Banks, determine and notify to all Parties any amendments which are required to be made to this Schedule in order to comply with any
change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which replaces all or any of its functions) and any
such determination shall, in the absence of manifest error, be conclusive and binding on all Parties. 

  
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	SIGNATORIES
	
	The Borrower:
	
	KNOT SHUTTLE TANKERS 18 AS
		
	By:	 	
	Name:	 	
	Title:	 	
	
	The Agent:
	
	HSH NORDBANK AG
		
	By:	 	
	Name:	 	
	Title:	 	
	
	The Banks:
	
	HSH NORDBANK AG
		
	By:	 	
	Name:	 	
	Title:	 	
	
	The Swap Bank:
	
	HSH NORDBANK AG
		
	By:	 	
	Name:	 	
	Title:	 	

  
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