Document:

EX-10.2

 Exhibit 10.2 

TRANSITION AGREEMENT 

This Transition Agreement (the “Agreement”) is made and entered into effective as of May 1, 2014 (the
“Effective Date”) by and between Corrections Corporation of America, a Maryland corporation (the “REIT”), CCA of Tennessee, LLC, a Tennessee limited liability company
(“Employer” and, together with the REIT, the “Company”) and Todd J Mullenger (“Employee”). The Company and Employee are sometimes referred to herein individually as a
“Party” and collectively as the “Parties.” 
 WITNESSETH: 

WHEREAS, the Company and the Executive have previously entered into that certain employment agreement, dated as of January 1, 2012 (the
“Employment Agreement”), which provides for the Executive’s employment as Executive Vice President and Chief Financial Officer of the Company; 

WHEREAS, the Company and Employee hereby agree that effective as of the Effective Date, Employee will resign from serving as Executive Vice
President and Chief Financial Officer of the Company; 
 WHEREAS, the Company desires to employ Employee from and after the Effective Date
to perform certain transition services for the Company as set forth in this Agreement (the “Transition Services”); and 

WHEREAS, the Parties wish to set forth their respective rights and obligations in connection with the foregoing. 

NOW, THEREFORE, in consideration of the mutual covenants and conditions hereinafter expressed, and other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties agree as follows: 
 SECTION 1. 

RESIGNATION; TRANSITION SERVICES; DUTIES AND RESPONSIBILITIES 

1.1 Resignation; Termination of Employment Agreement. Effective as of the Effective Date, Employee hereby tenders, and the
Company hereby accepts, the Employee’s resignation as Executive Vice President and Chief Financial Officer of the Company. As of the Effective Date, the Employment Agreement shall automatically terminate and be of no further force and effect,
and neither the Company nor Employee shall have any further obligations thereunder; provided, however, that the provisions of Section 6 (Non-Competition, Non-Solicitation and Confidentiality and Non-Disclosure) and
Section 7 (Indemnification) of the Employment Agreement shall survive such termination of the Employment Agreement.  
 1.2
Transition Services. During the Term of this Agreement, the Company hereby employs Employee, and Employee hereby accepts employment with the Company, to provide services to effect the orderly transition of his former duties and
responsibilities with the Company. In such capacity, Employee shall have the title Special Assistant to the Chief Executive Officer and report to the Chief Executive Officer of the Company. For the avoidance of doubt, provided that Employee complies
with the terms of this Agreement, Employee will be deemed to have been continuously employed as an employee of the Company from August 10, 1998 through the last day of the Term of this Agreement for purposes of vesting with respect to equity
awards granted to Employee prior to the Effective Date pursuant to the Company’s equity incentive plans. 

  
 1 

 1.3 Compliance with Law and Standards. Employee shall at all times comply with all
applicable laws, rules and regulations of any and all governmental authorities and the applicable standards, bylaws, rules, compliance programs, policies and procedures of the Company of which Employee has knowledge (including any policies that
apply only to executives, notwithstanding the fact that Employee’s employment hereunder is in a non-executive capacity). Employee further agrees that Employee will not engage in any conduct which, in the reasonable determination of the Company,
adversely affects the image or business of the Company or would impair in any material respect Employee’s ability to carry out Employee’s duties hereunder except as otherwise required by a court, law, governmental agency or regulation.

 1.4 Ownership of Developments; Trade Secrets of Others. All copyrights, patents, trade secrets, or other intellectual
property rights associated with any idea, concepts, techniques, inventions, processes, or works of authorship developed or created by Employee during the course of his work for the Company or its clients, including past employment and with respect
to the services to be provided hereunder (collectively, the “Work Product”), will belong exclusively to the Company and will, to the extent possible, be considered a work made by Employee for hire for the Company within the
meaning of Title 17 of the United States Code. To the extent the Work Product may not be considered work made by Employee for hire for the Company, Employee agrees to assign, and automatically assign at the time of creation of the Work Product,
without any requirement of further consideration, any right, title, or interest Employee may have in such Work Product. Upon the request of the Company, Employee will take further actions, including execution and delivery of instruments of
conveyance, as may be appropriate to give full and proper effect to such assignment. Employee represents that he is not bound by, and covenants that he will not enter into, any agreements, either written or oral, which are in conflict with this
Agreement. For purposes of this Section 1.4, the term “Company” also will include any existing or future affiliates of the Company. 

SECTION 2. 
 COMPENSATION

 2.1 Compensation.  

2.1.1 Base Salary. For the period beginning on the Effective Date and ending on April 30, 2015, the Company shall pay Employee an
annual salary of $380,000.00, which shall be payable to Employee in accordance with the Company’s normal payroll practices, but in no event less than bi-weekly. For the period beginning May 1, 2015 and ending April 30, 2016, the
Company shall pay Employee an annual salary of $190,000.00, which shall be payable to Employee in accordance with the Company’s normal payroll practices, but in no event less than bi-weekly. 

2.1.2 Bonus for 2014. In the event both the Company and Employee each respectively achieve certain financial performance and personal
performance targets as established by the Board of Directors of the Company, or a committee or subcommittee thereof to which compensation matters have been delegated, pursuant to a cash compensation incentive plan or similar plan established by the
Company for its executive officers for the year ending December 31, 2014 (“Calendar 2014”), the Company shall pay to Employee a cash bonus pursuant to the terms of such plan. This bonus, if any, shall be paid to Employee
between January 1 and March 15, 2015; provided, however, that if the Company is unable to determine the amount of such bonus prior to such date, then such bonus shall be paid no later than December 31, 2015, subject to Employee’s
continued employment with the Company through the applicable payment date. The Board of Directors of the Company, or applicable committee or subcommittee thereof, may review and revise the terms of the cash compensation incentive plan or similar
plan referenced above at any time, after taking into consideration both the performance of the Company and the personal performance of Employee, among other factors, and may, in their sole discretion, amend

  
 2 

 
the cash compensation incentive plan or similar plan in any manner it may deem appropriate; provided, however, that any such amendment to the plan shall not affect Employee’s right to
participate in such amended plan or plans during Calendar 2014. Except as set forth in this Section 2.1.2, Employee shall not be entitled to receive awards under any cash incentive or other similar plan of the Company after the Effective Date.

 2.1.3 Equity Grants; Vacation Accrual. Employee shall not be entitled to receive awards after the Effective Date under any of the
Company’s equity incentive plans. Outstanding equity-based awards granted to Employee prior to the Effective Date shall continue to vest in accordance with their respective terms until the Termination Date, but thereafter shall not vest in any
additional amount and shall be exercisable only to the extent specified in the applicable award agreement. In addition, Employee shall not accrue any vacation or paid time off during the Term of this Agreement. 

2.1.4 No Additional Compensation. Employee acknowledges that, except as expressly provided in this Agreement, Employee will not receive
nor is he entitled to any additional compensation, severance or benefits. 
 2.2 Expenses. The Company will reimburse Employee
for actual travel and other expenses reasonably incurred in connection with his performance of the Transition Services, provided that such expenses are supported by documentation that complies with the Company’s travel and expense policies, and
to the extent that any such reimbursement constitutes “deferred compensation” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), subject to and in accordance with
Section 1.409A-3(i)(1)(iv) of the Treasury Regulations. 
 2.3 Benefits. Except as otherwise set forth in this Agreement,
during the Term, Employee shall be eligible to participate in all employee benefit plans or programs and receive all benefits for which any salaried employees are eligible under any existing or future plan or program established by the Company for
salaried employees. Employee will participate to the extent permissible under the terms and provisions of such plans or programs in accordance with program provisions. These may include group hospitalization, health, dental care, life or other
insurance, tax qualified pension, savings, thrift and profit sharing plans, termination pay programs, sick leave plans, travel or accident insurance and disability insurance. Nothing in this Agreement shall preclude the Company from amending or
terminating any of the plans or programs applicable to salaried or senior executives as long as such amendment or termination is applicable to all salaried employees or senior executives. 

SECTION 3. 
 LIMITATION
OF LIABILITY 
 3.1 To the fullest extent permissible under applicable law, neither party shall have any liability to the other
in connection with the performance of the Transition Services under this Agreement except in connection with breaches of the express terms of this Agreement or actions or omissions that constitute bad faith, gross negligence or willful misconduct.

 SECTION 4. 
 TERM
AND TERMINATION 
 4.1 Term. The term (the “Term”) of this Agreement shall begin on the Effective
Date and shall end on April 30, 2016, unless earlier terminated pursuant to the terms hereof (such date that the Term ends or is terminated, the “Termination Date”). 

  
 3 

 4.2 Termination of Agreement. The Company may terminate this Agreement at any time
in its sole discretion without Cause (as defined below) or for Cause. Employee may terminate this Agreement at any time for any reason or no reason. For purposes of this Agreement, “Cause” shall mean: (i) the death of
Employee; (ii) the permanent disability of Employee, which shall be defined as the inability of Employee, as a result of physical or mental illness or incapacity, to substantially perform his duties pursuant to this Agreement for a period of
one hundred eighty (180) days during any twelve (12) month period; (iii) Employee’s conviction of a felony or of a crime involving dishonesty or moral turpitude, including, without limitation, any act or crime involving
misappropriation or embezzlement of Company assets or funds; (iv) willful or material wrongdoing by Employee, including, but not limited to, acts of dishonesty or fraud, which could be expected to have a materially adverse effect, monetarily or
otherwise, on the Company or its subsidiaries or affiliates, as determined by the Company and its Board of Directors; (v) material breach by Employee of a material obligation under this Agreement or of his fiduciary duty to the Company or its
stockholders; or (vi) Employee’s intentional violation of any applicable local, state or federal law or regulation affecting the Company in any material respect, as determined by the Company and its Board of Directors. Notwithstanding the
foregoing, to the extent that any of the events, actions or breaches set forth above are able to be remedied or cured by Employee, Cause shall not be deemed to exist (and thus the Company may not terminate Employee for Cause hereunder) unless
Employee fails to remedy or cure such event, action or breach within twenty (20) days after being given written notice by the Company of such event, action or breach. 

4.3 Accrued Obligations. In the event that Employee’s employment under this Agreement terminates during the Term for any
reason, upon such termination, the Company will pay to Employee in a single lump sum payment, within thirty (30) days after the Termination Date, or such earlier date as may be required by applicable law, the aggregate amount of (i) any
earned but unpaid annual salary, and (ii) unreimbursed business expenses incurred prior to the Termination Date that are reimbursable in accordance with Section 2.2 above (together, the “Accrued Obligations”). 

4.4 Effect of Termination by the Company without Cause. Subject to and conditioned upon Employee’s execution of a general
release in accordance with Section 4.6 below and non-revocation of such general release during any applicable revocation period, if Employee incurs a “separation from service” from the Company (within the meaning of
Section 409A(a)(2)(A)(i) of the Code and Treasury Regulation Section 1.409A-1(h)) (a “Separation from Service”) during the Term due to a termination of Employee’s employment by the Company without Cause,
Employee will be entitled to receive an amount in cash equal to twelve (12) months’ of Employee’s then-current annual salary (the “Severance”). The Company shall pay the Severance in substantially equal
installments in accordance with the Company’s normal payroll practices during the period commencing on the Termination Date and ending on the twelve (12)-month anniversary thereof; provided, that no payments under this Section 4.4 shall be
made prior to the first regularly scheduled payroll date of the Company to occur prior to the thirtieth (30th) day following the Termination Date (the “First Payroll
Date”) and any amounts which otherwise would have been paid pursuant to this Section 4.4 prior to the First Payroll Date shall instead be paid on the First Payroll Date (without interest thereon). 

4.5 Other Terminations. If Employee’s employment is terminated for any reason not described in Section 4.4 above
(including, without limitation, due to a termination of Employee’s employment by the Company for Cause, by Employee for any reason or due to Employee’s death or disability), the Company will pay Employee only the Accrued Obligations within
thirty (30) days after the Termination Date (or such earlier date as may be required under applicable law). 
 4.6
Release. In consideration of the Company’s willingness to enter into this Agreement and the payment of compensation for the Transition Services and, as applicable, the Severance, Employee agrees to execute and deliver, within
twenty-one (21) days (or forty-five (45) days if necessary to comply with applicable law) following the Termination Date, a general release in the form attached as Exhibit A. 

  
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 4.7 Six-Month Delay. Notwithstanding anything to the contrary in this Agreement, no
compensation or benefits, including without limitation any Severance, shall be paid to Employee during the six (6)-month period following Employee’s Separation from Service if the Company determines that paying such amounts at the time or times
indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of
such six (6)-month period (or such earlier date upon which such amount can be paid under Section 409A of the Code without resulting in a prohibited distribution, including as a result of Employee’s death), the Company shall pay Employee a
lump-sum amount equal to the cumulative amount that would have otherwise been payable to Employee during such period (without interest). 

SECTION 5. 

CONFIDENTIALITY, NON-COMPETITION, NON-SOLICITATION 

5.1 Non-Competition, Non-Solicitation. Employee hereby covenants and agrees that during the Term of this Agreement and for a
period of one (1) year thereafter, Employee shall not, directly or indirectly: (i) own any interest in, operate, join, control or participate as a partner, director, principal, officer or agent of, enter into the employment of, act as a
consultant to, or perform any services for any entity (each a “Competing Entity”) which has material operations which compete with any business in which the Company or any of its subsidiaries is then engaged or, to the then
existing knowledge of Employee, proposes to engage; (ii) solicit any customer or client of the Company or any of its subsidiaries (other than on behalf of the Company) with respect to any business in which the Company or any of its subsidiaries
is then engaged or, to the then existing knowledge of Employee, proposes to engage; or (iii) induce or encourage any employee of the Company or any of its subsidiaries to leave the employ of the Company or any of its subsidiaries; provided,
that Employee may, solely as an investment, hold not more than five percent (5%) of the combined voting securities of any publicly-traded corporation or other business entity. The foregoing covenants and agreements of Employee are referred to
herein as the “Restrictive Covenant.” Employee acknowledges that he has carefully read and considered the provisions of the Restrictive Covenant and, having done so, agrees that the restrictions set forth in this
Section 5.1, including without limitation the time period of restriction set forth above, are fair and reasonable and are reasonably required for the protection of the legitimate business and economic interests of the Company. Employee further
acknowledges that the Company would not have entered into this Agreement absent Employee’s agreement to the foregoing. 
 In the event
that, notwithstanding the foregoing, any of the provisions of this Section 5.1 or any parts hereof shall be held to be invalid or unenforceable, the remaining provisions or parts hereof shall nevertheless continue to be valid and enforceable as
though the invalid or unenforceable portions or parts had not been included herein. In the event that any provision of this Section 5.1 relating to the time period and/or the area of restriction and/or related aspects shall be declared by a
court of competent jurisdiction to exceed the maximum restrictiveness such court deems reasonable and enforceable, the time period and/or area of restriction and/or related aspects deemed reasonable and enforceable by such court shall become and
thereafter be the maximum restrictions in such regard, and the provisions of the Restrictive Covenant shall remain enforceable to the fullest extent deemed reasonable by such court. 

5.2 Confidentiality and Non-Disclosure. In consideration of the rights granted to Employee hereunder, Employee hereby agrees
that during the Term of this Agreement and thereafter he will hold in confidence all information concerning the Company or its business, including, but not limited to contract terms, financial information, operating data, or business plans or
models, whether for existing, new or 

  
 5 

 
developing businesses, and any other proprietary information (hereinafter, collectively referred to as the “Proprietary Information”), whether communicated orally or in
documentary or other tangible form. The parties to this Agreement recognize that the Company has invested considerable amounts of time and money in attaining and developing all of the information described above, and any unauthorized disclosure or
release of such Proprietary Information in any form would irreparably harm the Company. 
 SECTION 6. 

GENERAL PROVISIONS 
 6.1
Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Tennessee, without regard to its conflict of laws principles. 

6.2 Waiver of Breach. The waiver by a party of any breach of any provision of this Agreement by the other party shall not
operate or be construed as a waiver of any subsequent breach of the same or any other provision hereof by that party. 
 6.3
Severability. The invalidity or unenforceability of any provision of this Agreement will not effect the validity or enforceability of any other provision. 

6.4 Entire Agreement: Amendments. This Agreement forms the entire agreement of the parties and supersedes any prior agreements
between them with respect to the subject matter hereof. 
 6.5 Amendment, Modification or Waiver. No provision of this
Agreement may be amended or waived, unless such amendment or waiver is agreed to in writing, signed by Employee and by a duly authorized officer of the Company. No waiver by any party hereto of any breach by another party hereto of any condition or
provision of this Agreement to be performed by such other party will be deemed a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent time. 

6.6 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties, their successors
and their permitted assigns; provided that Employee shall not assign his rights, duties or obligations hereunder. 
 6.7
Notice. Any notice to be given hereunder will be in writing and will be deemed given when delivered personally, sent by courier or facsimile or registered or certified mail, postage prepaid, return receipt requested, addressed to the
party concerned at the address indicated below or to such other address as such party may subsequently give notice hereunder in writing: 
  

			
	To Employee at:	  	 Todd J Mullenger

		
	To the Company at:	  	 Corrections Corporation of America
 10 Burton
Hills Boulevard
 Nashville, TN 37215
 Attention: Chief
Executive Officer
 Facsimile: (615) 213-3010

  
 6 

 6.8 Withholding. All payments to Employee under this Agreement will be reduced by
all applicable withholding required by federal, state or local law. 
 6.9 Survival. The provisions of Sections 1.3, 5.1, 5.2
and Section 6.1 through 6.10 hereof shall survive the termination for any reason or expiration of this Agreement for the period described or referenced in each such Section or, if no period is described or referenced in such Section,
indefinitely. 
 6.10 Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original,
but all of which together will constitute one and the same instrument. 
 6.11 Section 409A. By accepting this Agreement,
Employee hereby agrees and acknowledges that the Company does not make any representations with respect to the application of Section 409A of the Code to any tax, economic or legal consequences of any payments payable to Employee hereunder.
Further, by the acceptance of this Agreement, Employee acknowledges that (i) Employee has obtained independent tax advice regarding the application of Section 409A of the Code to the payments due to Employee hereunder, (ii) Employee
retains full responsibility for the potential application of Section 409A of the Code to the tax and legal consequences of payments payable to Employee hereunder and (iii) the Company shall not indemnify or otherwise compensate Employee
for any violation of Section 409A of the Code that my occur in connection with this Agreement. The Parties agree that, to the extent applicable, this Agreement shall be interpreted and administered in accordance with Section 409A of the
Code and that the Parties will cooperate in good faith to amend such documents and to take such actions as may be necessary or appropriate to (i) exempt the compensation and benefits payable under this Agreement from Section 409A of the
Code and/or preserve the intended tax treatment of such compensation and benefits, or (ii) comply with Section 409A of the Code; provided, however, that this Section 6.11 shall not create any obligation on the part of the
Company to adopt any such amendment or take any such other action. 
 [Signature page follows] 

  
 7 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above. 
  

			
	CORRECTIONS CORPORATION OF AMERICA
		
	By:	 	 /s/ Damon T. Hininger

	Name:	 	Damon T. Hininger
	Title:	 	President & Chief Executive Officer
	
	CCA OF TENNESSEE, LLC
		
	By:	 	 /s/ Damon T. Hininger

	Name:	 	Damon T. Hininger
	Title:	 	Chief Executive Officer
	
	EMPLOYEE
	
	 /s/ Todd J Mullenger

	Todd J Mullenger

 [Signature page to Mullenger Transition Agreement] 

 EXHIBIT A 

FORM OF GENERAL RELEASE 

This Release (this “Release”), dated as of             ,
is made by and among Todd J Mullenger (“Employee”), Correction Corporation of America (the “REIT”) and CCA of Tennessee, LLC (“Employer” and, together with the REIT, the
“Company”). 
 WHEREAS, the parties hereto entered into that certain Transition Agreement dated as of
May 1, 2014 (the “Agreement”); 
 WHEREAS, Employee’s employment with the Company has been
terminated upon the Expiration of the Agreement or in a manner described in Section 4.2 of the Agreement; 
 WHEREAS, pursuant
to Section 4.6 of the Agreement, in consideration of the Company’s willingness to enter into the Agreement and payment of any amounts thereunder, it is an obligation of Employee that he executes and delivers this Release. 

NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

  

	1.	 Employee Release. Employee, ON BEHALF OF HIMSELF, HIS SPOUSE, ATTORNEYS, HEIRS, EXECUTORS, ADMINISTRATORS, AGENTS, ASSIGNS AND ANY TRUSTS,
PARTNERSHIPS AND OTHER ENTITIES UNDER HIS CONTROL (TOGETHER, THE “EMPLOYEE PARTIES”), HEREBY GENERALLY RELEASES AND FOREVER DISCHARGES the Company, its respective predecessors, successors and assigns and its respective past
and present stockholders, members, directors, officers, employees, agents, representatives, principals, insurers and attorneys (together the “Company Parties”) from any and all claims, demands, liabilities, suits, damages,
losses, expenses, attorneys’ fees, obligations or causes of action, KNOWN OR UNKNOWN, CONTINGENT OR NON-CONTINGENT of any kind and every nature whatsoever, and WHETHER OR NOT ACCRUED OR MATURED, which any of them have or may have, arising out
of or relating to any transaction, dealing, relationship, conduct, act or omission, OR ANY OTHER MATTERS OR THINGS OCCURRING OR EXISTING AT ANY TIME PRIOR TO AND INCLUDING THE EXECUTION DATE OF THIS RELEASE (including, but not limited to, any claim
against the Company Parties based on, relating to or arising under wrongful discharge, breach of contract (whether oral or written), tort, fraud (including fraudulent inducement into this Release), defamation, negligence, promissory estoppel,
retaliatory discharge, Title VII of the Civil Rights Act of 1964, as amended, any other civil or human rights law, the Age Discrimination in Employment Act of 1967, Americans with Disabilities Act, Employee Retirement Income Security Act of 1974, as
amended, or any other federal, state or local law relating to employment or discrimination in employment) arising out of or relating to Employee’s employment by the Company or his services as an officer or employee of the Company or any of its
subsidiaries, or otherwise relating to the termination of such employment or the Agreement (collectively, “Claims”); provided, however, such general release will not limit or release the Company Parties from their respective
obligations (i) under any provisions of the Agreement that expressly survive termination of employment, (ii) to provide the Employee with any accrued or vested benefits the Employee may have, if any, under the Company’s benefit plans
and agreements, including without limitation the Company’s equity incentive plans, (iii) under any director and officer indemnification agreements or as provided by law or the certificates of incorporation or by-laws (or like constitutive
documents) of the Company or any of its subsidiaries or [(iv) insert at the time of termination a description of any other agreements with the Company that expressly survive Employee’s termination]. Employee, ON BEHALF OF

 
HIMSELF AND THE EMPLOYEE PARTIES, hereby represents and warrants that no other person or entity has initiated or, to the extent within his control, will initiate any such proceeding on his or
their behalf. 
  

	2.	Non-Disparagement. Employee agrees that, for a period of eighteen (18) months following the date hereof, Employee shall not, in any communications with the press or other media or any customer, client or
supplier of the Company or any of its subsidiaries, make any statement which disparages or is derogatory of the Company or any of its subsidiaries or any of their respective directors or senior officers; provided, however, that this Section 2
shall apply to Employee only for so long as the Company, its subsidiaries and their respective directors and senior officers refrain from making any such communication which disparages or is derogatory of Employee. 

 

	3.	Acknowledgement of Waiver of Claims under ADEA. Employee acknowledges that he is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967 and that this waiver and
release is knowing and voluntary. Employee acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled. In accordance with the Older Workers Benefit Protection Act
of 1990, Employee further acknowledges that (a) he has been advised that he should consult with an attorney prior to executing this Release, (b) he has been given twenty-one (21) days within which to consider this Release before
executing it and (c) he has been given at least seven (7) days following the execution of this Release to revoke this Release and that this Release shall become effective upon the expiration of such revocation period. 

 

	4.	Acknowledgment. The parties hereto acknowledge that they understand the terms of this Release and that they have executed this Release knowingly and voluntarily. Employee acknowledges that, in consideration for
the covenants and releases contained herein, he has received the benefits and payments described in the Agreement, and that he would not have received such benefits and payments without the execution of this Release. 

 

	5.	Severability. All provisions of this Release are intended to be severable. In the event any provision or restriction contained herein is held to be invalid or unenforceable in any respect, in whole or in part,
such finding shall in no way affect the validity or enforceability of any other provision of this Release. The parties hereto further agree that any such invalid or unenforceable provision shall be deemed modified so that it shall be enforced to the
greatest extent permissible under law, and to the extent that any court or arbitrator of competent jurisdiction determines any restriction herein to be unreasonable in any respect, such court or arbitrator may limit this Release to render it
reasonable in the light of the circumstances in which it was entered into and specifically enforce this Release as limited. 

  

	6.	Specific Performance. If a court of competent jurisdiction determines that Employee has breached or failed to perform any part of this Release, Employee agrees that the Company will be entitled to seek injunctive
relief to enforce this Release. 

  

	7.	Governing Law. This Release shall be governed by and construed in accordance with the laws of the State of Tennessee without reference to principles of conflict of laws. 

[Signature Page Follows] 

  
 2 

 IN WITNESS WHEREOF, Employee has hereunto set his hands, as of the day and year first above
written. 
  

	
	  

	Todd J Mullenger

 Signature Page to ReleaseEX-4.1

 Exhibit 4.1 

Execution Version 
  

 
 CONTRIBUTION AND SALE AGREEMENT

 Dated as of April 15, 2013 
  

 

 TABLE OF CONTENTS 

 

							
	ARTICLE I	  
	
	DEFINITIONS	  
			
	 Section 1.1
	 	 Definitions
	  	 	3	  
	
	ARTICLE II	  
	
	THE CONTRIBUTIONS	  
			
	 Section 2.1
	 	 Contribution of KNOT Shuttle Tankers to the General Partner; Issuance of Units to KNOT
	  	 	6	  
	 Section 2.2
	 	 Contribution of KNOT Shuttle Tankers to the Partnership
	  	 	6	  
	 Section 2.3
	 	 Contribution of KNOT Shuttle Tankers to KNOT UK; Issuance of Units to the Partnership
	  	 	6	  
	 Section 2.4
	 	 Retained Right to Insurance Proceeds
	  	 	6	  
	
	ARTICLE III	  
	
	THE OFFERING AND CONCURRENT TRANSACTIONS	  
			
	 Section 3.1
	 	 The Offering
	  	 	7	  
	 Section 3.2
	 	 Use of the IPO Proceeds
	  	 	7	  
	
	ARTICLE IV	  
	
	DEFERRED ISSUANCE AND DISTRIBUTION	  
			
	 Section 4.1
	 	 Deferred Issuance and Distribution
	  	 	7	  
	
	ARTICLE V	  
	
	REPRESENTATIONS AND WARRANTIES OF KNOT; DISCLAIMER	  
			
	 Section 5.1
	 	 Representations and Warranties
	  	 	8	  
	 Section 5.2
	 	 Disclaimer of Warranties
	  	 	10	  
	
	ARTICLE VI	  
	
	FURTHER ASSURANCES	  
			
	 Section 6.1
	 	 Further Assurances
	  	 	11	  
	 Section 6.2
	 	 Power of Attorney
	  	 	11	  
	
	ARTICLE VII	  
	
	MISCELLANEOUS	  
			
	 Section 7.1
	 	 Survival of Representations and Warranties
	  	 	11	  
	 Section 7.2
	 	 Taxes
	  	 	12	  
	 Section 7.3
	 	 Headings; References, Interpretation
	  	 	12	  
	 Section 7.4
	 	 Successors and Assigns
	  	 	12	  

  
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	 Section 7.5
	 	 No Third Party Rights
	  	 	12	  
	 Section 7.6
	 	 Counterparts
	  	 	12	  
	 Section 7.7
	 	 Governing Law
	  	 	12	  
	 Section 7.8
	 	 Severability
	  	 	13	  
	 Section 7.9
	 	 Deed; Bill of Sale; Assignment
	  	 	13	  
	 Section 7.10
	 	 Amendment or Modification
	  	 	13	  
	 Section 7.11
	 	 Integration
	  	 	13	  

  
 ii 

 CONTRIBUTION AND SALE AGREEMENT 

This CONTRIBUTION AND SALE AGREEMENT (this “Agreement”), dated as of April 15, 2013 is made by and
among Knutsen NYK Offshore Tankers AS, a Norwegian private limited liability company (“KNOT”), KNOT Offshore Partners LP, a Marshall Islands limited partnership (the “Partnership”), KNOT
Offshore Partners GP LLC, a Marshall Islands limited liability company and the general partner of the Partnership (the “General Partner”), KNOT Offshore Partners UK LLC, a Marshall Islands limited liability company
(“KNOT UK”), and KNOT Shuttle Tankers AS, a Norwegian private limited liability company (“KNOT Shuttle Tankers”). The above-named entities
are sometimes referred to in this Agreement each as a “Party” and collectively as the “Parties.” 

RECITALS 

WHEREAS, the Partnership was formed pursuant to the Limited Partnership Act of The Republic of the Marshall
Islands (the “Marshall Islands LP Act”) for the purposes set forth in the Agreement of Limited Partnership of the Partnership, dated as of February 21, 2013 (the “Original
LP Agreement”); 
 WHEREAS, the Partnership formed KNOT UK pursuant to the Marshall Islands
Limited Liability Company Act of 1996 for the purposes set forth in the Limited Liability Agreement; 
 WHEREAS, KNOT formed
KNOT Shuttle Tankers pursuant to the laws of Norway for the purposes set forth in its operating agreement; 
 WHEREAS, prior
to the date of this Agreement, KNOT or its wholly-owned subsidiaries transferred to KNOT Shuttle Tankers all of the limited liability company interests in each of the Vessel Owning Subsidiaries (as defined below); 

WHEREAS, as of the date hereof and prior to the Effective Time: 

 

	 	1.	The General Partner is a wholly-owned subsidiary of KNOT. 

  

	 	2.	KNOT owns a 98% limited partner interest in the Partnership and the General Partner owns a 2% general partner interest in the Partnership. 

 

	 	3.	KNOT UK is a wholly-owned subsidiary of the Partnership. 

  

	 	4.	KNOT Shuttle Tankers is a wholly-owned subsidiary of KNOT. 

  

	 	5.	KNOT Shuttle Tankers owns all of the outstanding limited liability company interests in KNOT Shuttle Tankers 17 AS, a Norwegian private limited liability company (“KNOT 17”), and the
owner of the M/T Bodil Knutsen. 

  

	 	6.	KNOT Shuttle Tankers owns all of the outstanding limited liability company interests in KNOT Shuttle Tankers 18 AS, a Norwegian private limited liability company (“KNOT 18”), and the
owner of the M/T Windsor Knutsen. 

	 	7.	KNOT Shuttle Tankers owns all of the outstanding limited liability company interests in KNOT Shuttle Tankers 12 AS, a Norwegian private limited liability company (“KNOT 12”), and
Knutsen Shuttle Tankers XII AS, a Norwegian private limited liability company (“Knutsen XII”). 

  

	 	8.	KNOT 12 owns the 90% limited partner interest in Knutsen Shuttle Tankers XII KS, a Norwegian limited partnership (“Knutsen XII LP”). 

 

	 	9.	Knutsen XII owns the 10% general partner interest in Knutsen XII LP. 

  

	 	10.	Knutsen XII LP owns the M/T Fortaleza Knutsen and the M/T Recife Knutsen. 

WHEREAS, pursuant to this Agreement, each of the following will occur as of the Effective Time: 

 

	 	1.	KNOT will contribute a portion of the limited liability company interest in KNOT Shuttle Tankers to the General Partner in exchange for 100 units of the General Partner. 

 

	 	2.	The General Partner will contribute its limited liability company interest in KNOT Shuttle Tankers to the Partnership in exchange for a continuation of its 2% general partner interest in the Partnership.

  

	 	3.	KNOT will contribute a portion of the limited liability company interest in KNOT Shuttle Tankers to the Partnership in exchange for 8,657,500 Subordinated Units, the Incentive Distribution Rights and the right to
receive the Deferred Issuance and Distribution (as defined herein). 

  

	 	4.	The Partnership will contribute 100% of its limited liability company interest in KNOT Shuttle Tankers to KNOT UK in exchange for 100 units of KNOT UK. 

 

	 	5.	The Partnership will issue 7,450,000 Common Units to the public in an underwritten initial public offering (the “Offering”) in exchange for $156,450,000 (the
“IPO Proceeds”). 

  

	 	6.	The Partnership will use a portion of the IPO Proceeds to pay (a) underwriting discounts and commissions and structuring fees of $10,560,375 and (b) other transaction expenses incurred in connection with
the Offering of approximately $7,500,000. 

  

	 	7.	The Partnership will loan $39,400,000 of the IPO Proceeds to KNOT 17 in exchange for an intercompany payment obligation. 

  

	 	8.	The Partnership will loan $13,400,000 of the IPO Proceeds to KNOT 18 in exchange for an intercompany payment obligation. 

  

	 	9.	The Partnership will loan $14,700,000 of the IPO Proceeds to Knutsen XII LP in exchange for an intercompany payment obligation. 

  
 2 

	 	10.	The Partnership will contribute $14,700,000 of the IPO Proceeds to KNOT UK, to be further contributed to KNOT Shuttle Tankers and KNOT 17, to repay a portion of its debt obligations related to the M/T
Bodil Knutsen. 

  

	 	11.	The Partnership will contribute $11,000,000 of the IPO Proceeds to KNOT UK, to be further contributed to KNOT Shuttle Tankers and KNOT 18, to repay a portion of its debt obligations related to the M/T
Windsor Knutsen. 

  

	 	12.	The Partnership will contribute $33,700,000 of the IPO Proceeds to KNOT UK, to be further contributed to KNOT Shuttle Tankers and KNOT 12 and Knutsen XII, pro rata, to be further contributed to
Knutsen XII LP, to repay a portion of the debt obligations related to the M/T Fortaleza Knutsen and M/T Recife Knutsen. 

AGREEMENT 
 NOW
THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows: 

ARTICLE I 

DEFINITIONS 

Section 1.1 Definitions. The following defined terms will have the meanings given below: 

“Agreement” means this Contribution and Sale Agreement. 

“Attorney-in-Fact” has
the meaning set forth in Section 6.2. 
 “Charter” means the time charter party or the
bareboat charter related to the applicable Vessel. 
 “Commission” means the Securities and Exchange
Commission. 
 “Common Unit” means a common unit representing a limited partner interest in the
Partnership having the rights set forth in the Partnership Agreement. 
 “Conveying Party” or
“Conveying Parties” has the meaning set forth in Section 6.2. 
 “Deferred
Issuance and Distribution” has the meaning set forth in the Partnership Agreement. 
 “Effective
Time” means 7:45 a.m. prevailing Eastern Time on April 15, 2013. 

  
 3 

 “Firm Units” means the Common Units to be sold to the
Underwriters pursuant to the terms of the Underwriting Agreement, but does not include any Option Units. 

“General Partner” has the meaning set forth in the opening paragraph of this Agreement. 

“IDRs” means the incentive distribution rights of the Partnership having the rights set forth in the
Partnership Agreement. 
 “Interests” means all of the outstanding limited liability company
interests in KNOT Shuttle Tankers. 
 “IPO Proceeds” has the meaning set forth in the Recitals
of this Agreement. 
 “KNOT” has the meaning set forth in the opening paragraph of this Agreement.

 “KNOT 12” has the meaning set forth in the Recitals of this Agreement. 

“KNOT 17” has the meaning set forth in the Recitals of this Agreement. 

“KNOT 18” has the meaning set forth in the Recitals of this Agreement. 

“Knutsen XII” has the meaning set forth in the Recitals of this Agreement. 

“Knutsen XII LP” has the meaning set forth in the Recitals of this Agreement. 

“KNOT Shuttle Tankers” has the meaning set forth in the opening paragraph of this Agreement. 

“KNOT UK” has the meaning set forth in the opening paragraph of this Agreement. 

“Laws” has the meaning set forth in Section 5.1(c). 

“Marshall Islands LP Act” has the meaning set forth in the Recitals of this Agreement. 

“Offering” has the meaning set forth in the Recitals of this Agreement. 

  
 4 

 “Option Units” means the Common Units that the
Partnership will agree to issue upon exercise of the Over-Allotment Option. 

“Original LP Agreement” has the meaning set forth in the Recitals of this Agreement. 

“Over-Allotment Option” means a number of Common Units equal to
15% of the Firm Units, which the Partnership will agree to sell to the Underwriters, at their option, to cover over-allotments in connection with the Offering. 

“Partnership” has the meaning set forth in the opening paragraph of this Agreement. 

“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of the
Partnership, to be dated as of April 15, 2013. 
 “Party” or “Parties”
has the meaning set forth in the opening paragraph of this Agreement. 
 “Registration Statement”
means the Registration Statement on Form F-1 filed with the Commission (Registration No. 333-186947), as amended. 

“Subordinated Unit” means a subordinated unit representing a member interest in the Partnership having
the rights set forth in the Partnership Agreement. 
 “Transferred Subsidiaries” means collectively
KNOT Shuttle Tankers and the Vessel Owning Subsidiaries. 
 “Underwriters” means the underwriting
syndicate listed in the Underwriting Agreement. 
 “Underwriting Agreement” means the underwriting
agreement dated as of April 9, 2013 among KNOT, the General Partner, the Partnership, KNOT UK, Knot Shuttle Tankers and the Underwriters. 

“Vessels” has the meaning set forth in Section 5.1(d) 

“Vessel Financing Agreements” means the (a) $160 million senior secured loan facility,
(b) $19 million junior secured loan facility, (c) $120 million senior secured loan facility, (d) $85 million senior secured loan facility, and (e) $27.3 million junior secured loan facility. 

“Vessel Owning Subsidiaries” means collectively KNOT 17, KNOT 18, KNOT 12,
Knutsen XII and Knutsen XII LP. 

  
 5 

 Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such
terms in the Partnership Agreement. 
 ARTICLE II 

THE CONTRIBUTIONS 
 As of
the Effective Time, the following transactions shall be completed in the order set forth below: 
 Section 2.1 Contribution of KNOT
Shuttle Tankers to the General Partner; Issuance of Units to KNOT. KNOT hereby contributes, assigns and transfers as a capital contribution a portion of the limited liability company interest in KNOT Shuttle Tankers to the General Partner. In
consideration for the capital contribution by KNOT to the General Partner described in the preceding sentence, the General Partner will issue 100 of its units to KNOT. 

Section 2.2 Contribution of KNOT Shuttle Tankers to the Partnership. KNOT hereby contributes, assigns and transfers as a capital
contribution the remaining portion of the limited liability company interest in KNOT Shuttle Tankers to the Partnership. The General Partner contributes, assigns and transfers as a capital contribution its portion of the limited liability company
interest in KNOT Shuttle Tankers to the Partnership. Immediately following the forgoing contributions, assignments and transfers, the Partnership will own 100% of the limited liability company interests in KNOT Shuttle Tankers. In consideration for
the capital contributions to the Partnership, (a) the Partnership will issue to KNOT 8,567,500 Subordinated Units, the Incentive Distribution Rights and the right to receive the Deferred Issuance and Distribution and (b) the General
Partner will maintain its 2% general partner interest in the Partnership. 
 Section 2.3 Contribution of KNOT Shuttle Tankers to
KNOT UK; Issuance of Units to the Partnership. The Partnership hereby contributes, assigns and transfers as a capital contribution 100% of the limited liability company interest in KNOT Shuttle Tankers to KNOT UK. In consideration for
the capital contribution by the Partnership to KNOT UK described in the preceding sentence, KNOT UK will issue 100 of its units to the Partnership. 

Section 2.4 Retained Right to Insurance Proceeds. Notwithstanding the foregoing contributions, the Parties hereby agree that any
insurance proceeds received by the Partnership after the Effective Time shall belong to KNOT and be promptly distributed to KNOT to the extent that such insurance proceeds (a) related to damage or periods of
off-hire incurred by the Vessels prior to the Effective Time and (b) exceeded any costs incurred by the Partnership or any of its subsidiaries to repair any such damage to the Vessels. 

  
 6 

 ARTICLE III 

THE OFFERING AND CONCURRENT TRANSACTIONS 

After the consummation of the transactions as described in ARTICLE II, the following transactions shall be completed in the order
set forth below: 
 Section 3.1 The Offering. The Partnership will issue 7,450,000 Common Units to the public in the Offering
pursuant to the Underwriting Agreement in exchange for the IPO Proceeds. 
 Section 3.2 Use of the IPO Proceeds. 

(a) The Partnership will use a portion of the IPO Proceeds to pay (i) underwriting discounts and commissions and structuring fees of
$10,560,375 and (ii) other transaction expenses incurred in connection with the Offering of approximately $7,500,000; 
 (b) The
Partnership will loan $39,400,000 of the IPO Proceeds to KNOT 17 in exchange for an intercompany payment obligation; 
 (c) The
Partnership will loan $13,400,000 of the IPO Proceeds to KNOT 18 in exchange for an intercompany payment obligation; 
 (d) The
Partnership will loan $14,700,000 of the IPO Proceeds to Knutsen XII LP in exchange for an intercompany payment obligation; 
 (e)
The Partnership will contribute $14,700,0000 of the IPO Proceeds to KNOT UK, to be further contributed to KNOT Shuttle Tankers and KNOT 17, to repay a portion of its debt obligations related to the M/T Bodil Knutsen; 

(f) The Partnership will contribute $11,000,000 of the IPO Proceeds to KNOT UK, to be further contributed to KNOT Shuttle Tankers
and KNOT 18, to repay a portion of its debt obligations related to the M/T Windsor Knutsen; and 
 (g) The Partnership will
contribute $33,700,000 of the IPO Proceeds to KNOT UK, to be further contributed to KNOT Shuttle Tankers and KNOT 12 and Knutsen XII, pro rata, to be further contributed to Knutsen XII LP, to repay a portion of the debt
obligations related to the M/T Fortaleza Knutsen and M/T Recife Knutsen. 
 ARTICLE IV 

DEFERRED ISSUANCE AND DISTRIBUTION 

Section 4.1 Deferred Issuance and Distribution. Upon the earlier to occur of the expiration of the Over-Allotment Option period or
the exercise in full of the Over-Allotment Option, the Partnership shall issue to KNOT a number of additional Common Units that is equal to the excess, if any, of (a) the total number of Option Units over (b) the aggregate number of Common
Units, if any, actually purchased by and issued to the Underwriters pursuant to the 

  
 7 

 
exercise(s) of the Over-Allotment Option. Upon each exercise of the Over-Allotment Option, the Partnership shall distribute to KNOT an amount of cash equal to the proceeds therefrom net of the
Underwriters’ Discount of each such exercise. 
 ARTICLE V 

REPRESENTATIONS AND WARRANTIES OF KNOT; DISCLAIMER 

Section 5.1 Representations and Warranties. KNOT hereby represents and warrants that: 

(a) Each of the Transferred Subsidiaries has been duly formed or incorporated and is validly existing and in good standing under the laws of
its respective jurisdiction of formation or incorporation and has all requisite power and authority to operate its assets and conduct its business as described in the Registration Statement; 

(b) The execution and delivery of this Agreement and all documents, instruments and agreements required to be executed and delivered by it
pursuant to this Agreement in connection with the completion of the transactions contemplated by this Agreement, have been duly authorized by all necessary action on its part, and this Agreement has been duly executed and delivered by it and
constitutes a legal, valid and binding obligation of it enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, liquidation, reorganization, reconstruction and other similar laws of general application affecting
the enforceability of remedies and rights of creditors and except that equitable remedies such as specific performance and injunction are in the discretion of a court; 

(c) The execution, delivery and performance by it of this Agreement will not conflict with or result in any violation of or constitute a
breach of any of the terms or provisions of, or result in the acceleration of any obligation under, or constitute a default under any provision of: (i) its or any Transferred Subsidiary’s articles of association, articles of incorporation
or bylaws or limited liability company agreement or other organizational documents; (ii) any lien, encumbrance, security interest, pledge, mortgage, charge, other claim, bond, indenture, agreement, contract, franchise license, permit or other
instrument or obligation to which it or any Transferred Subsidiary is a party or is subject or by which any of its or any Transferred Subsidiary’s assets or properties may be bound; (iii) any applicable laws, statutes, ordinances, rules or
regulations promulgated by a governmental authority, orders of a governmental authority, judicial decisions, decisions of arbitrators or determinations of any governmental authority or court (“Laws”); or (iv) any Charter
to which any Transferred Subsidiary is a party or any material provision of any material contract to which it or any Transferred Subsidiary is a party or by which its or any Transferred Subsidiary’s assets are bound; 

(d) Except as have already been obtained or that will be obtained in the ordinary course of business, no consent, permit, approval or
authorization of, notice or declaration to or filing with any governmental authority or any other person, including those related to any environmental laws or regulations, is required in connection with the execution and delivery by it of this
Agreement or the consummation by it of the transactions contemplated 

  
 8 

 
hereunder, and any consents required for the transfer or assignment of the Charter related to the M/T Bodil Knutsen, the M/T Windsor Knutsen, the M/T Fortaleza
Knutsen and the M/T Recife Knutsen (the “Vessels”) have been duly obtained; 
 (e) All of the issued
and outstanding equity interests of each Transferred Subsidiary are duly authorized and are validly issued in accordance with the articles of association, articles of incorporation or bylaws or limited liability company agreement or other
organizational documents of such Transferred Subsidiary and are fully paid and non-assessable; 

(f) KNOT owns, directly or indirectly, all of the outstanding equity interests of each Transferred Subsidiary and has good and marketable
title thereto, free and clear of all liens, encumbrances, security interests, pledges, mortgages, charges or other claims, other than those (i) that will be discharged or released in connection with the closing of the Offering and
(ii) arising under the Vessel Financing Agreements; 
 (g) There is no outstanding agreement, contract, option, commitment or other
right or understanding in favor of, or held by, any person other than the Partnership to acquire the Transferred Subsidiaries or the assets of the Transferred Subsidiaries, including the Vessels, that has not been waived; 

(h) Correct and complete copies of the organizational documents of each Transferred Subsidiary (as amended to the date of this Agreement) and
each Charter to which any Transferred Subsidiary is a party have been made available to the Partnership; 
 (i) Each such Charter is a valid
and binding agreement of each contracting Transferred Subsidiary enforceable in accordance with its terms and, to the knowledge of KNOT, of all other parties thereto enforceable in accordance with its terms; 

(j) As applicable, each Transferred Subsidiary has fulfilled all material obligations required pursuant to its respective Charter to have been
performed by it prior to the date of this Agreement and has not waived any material rights thereunder; and no material default or breach exists in respect thereof on its or any Transferred Subsidiary’s part or, to its knowledge, any of the
other parties thereto and, to its knowledge, no event has occurred which, after giving of notice or the lapse of time, or both, would constitute such a material default or breach; 

(k) Except for such liabilities, debts obligations, encumbrances, defects, restrictions or claims of a general nature and magnitude that would
arise in connection with the operation of shuttle tankers of the same type as the Vessels in the ordinary course of business, there are no liabilities, debts or obligations of, encumbrances, defects or restrictions with respect to, or claims against
the Transferred Subsidiaries or any of the assets owned by the Transferred Subsidiaries, including the Vessels, other than those arising under or in connection with Vessel Financing Agreements; and 

(l) Each Vessel is (i) adequate and suitable for use by the applicable Transferred Subsidiary in such Transferred Subsidiary’s
business as presently conducted by it in all material respects as described in the Registration Statement, ordinary wear and tear excepted; (ii) in good running order and repair; (iii) insured against all risks, and in amounts, consistent

  
 9 

 
with common industry practices; (iv) in compliance with applicable laws and regulations; (v) duly registered under the flag set forth opposite such Vessel’s name on
Schedule A hereto; and (vi) in compliance in all material respects with the requirements of its present class and classification society; and all class certificates of each Vessel are clean and valid and free of recommendations
affecting class. 
 Section 5.2 Disclaimer of Warranties. EXCEPT TO THE EXTENT PROVIDED IN THIS AGREEMENT OR IN ANY OTHER
DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE, DOES NOT MAKE, AND EACH SUCH PARTY SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES, PROMISES,
COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS, IMPLIED OR STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE ASSETS OWNED BY THE TRANSFERRED
SUBSIDIARIES, INCLUDING, WITHOUT LIMITATION, THE ENVIRONMENTAL CONDITION OF THE ASSETS GENERALLY, INCLUDING, WITHOUT LIMITATION, THE PRESENCE OR LACK OF HAZARDOUS SUBSTANCES OR OTHER MATTERS ON SUCH ASSETS, (B) THE INCOME TO BE DERIVED FROM
SUCH ASSETS, (C) THE SUITABILITY OF SUCH ASSETS FOR ANY AND ALL ACTIVITIES AND USES THAT MAY BE CONDUCTED THEREON OR THEREWITH, (D) THE COMPLIANCE OF OR BY SUCH ASSETS OR THEIR OPERATION WITH ANY LAWS (INCLUDING WITHOUT LIMITATION ANY
ZONING, ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (E) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF SUCH ASSETS. EXCEPT TO THE
EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT, EACH PARTY ACKNOWLEDGES AND AGREES THAT SUCH PARTY HAS HAD THE OPPORTUNITY TO INSPECT THE ASSETS OF THE TRANSFERRED SUBSIDIARIES, AND SUCH PARTY IS
RELYING SOLELY ON ITS OWN INVESTIGATION OF THE ASSETS OF THE TRANSFERRED SUBSIDIARIES AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY ANY OF THE OTHER PARTIES. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT, NONE OF THE PARTIES IS LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE ASSETS OF THE TRANSFERRED SUBSIDIARIES FURNISHED BY ANY AGENT, EMPLOYEE,
SERVANT OR THIRD PARTY. THIS SECTION SHALL SURVIVE THE CONTRIBUTION AND CONVEYANCE OF THE INTERESTS OR THE TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION HAVE BEEN NEGOTIATED BY THE PARTIES AFTER DUE CONSIDERATION AND ARE INTENDED TO
BE A COMPLETE EXCLUSION AND NEGATION OF ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO THE ASSETS OF THE TRANSFERRED SUBSIDIARIES THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE,
EXCEPT AS SET FORTH IN THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT. 

  
 10 

 ARTICLE VI 

FURTHER ASSURANCES 

Section 6.1 Further Assurances. From time to time after the date of this Agreement, and without any further consideration, the
Parties agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other documents, and will do all such other acts and things, all in accordance
with applicable Law, as may be necessary or appropriate (a) more fully to assure that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges granted by this Agreement, or which are
intended to be so granted, (b) more fully and effectively to vest in the applicable Parties and their respective successors and assigns beneficial and record title to the interests contributed and assigned by this Agreement or intended so to be
and (c) to more fully and effectively carry out the purposes and intent of this Agreement. 
 Section 6.2 Power of
Attorney. Each Party that has conveyed any Interests as reflected by this Agreement (collectively, the “Conveying Parties”) hereby constitutes and appoints each of Arild Vik, Øystein Emberland and Karl Gerhard
Bråstein Dahl (each, the “Attorney-in-Fact”) its true and lawful
Attorney-in-Fact with full power of substitution for it and in its name, place and stead or otherwise on behalf of the applicable Conveying Party and its successors and
assigns, and for the benefit of the Attorney-in-Fact to demand and receive from time to time the Interests contributed and conveyed by this Agreement (or intended so to
be) and to execute in the name of the applicable Conveying Party and its successors and assigns instruments of conveyance, instruments of further assurance and to give receipts and releases in respect of the same, and from time to time to institute
and prosecute in the name of the applicable Conveying Party for the benefit of the Attorney-in-Fact, any and all proceedings at law, in equity or otherwise which the
Attorney-in-Fact may deem proper in order to (a) collect, assert or enforce any claims, rights or titles of any kind in and to the Interests, (b) defend and compromise any and all actions, suits or proceedings in respect of any of the
Interests, and (c) do any and all such acts and things in furtherance of this Agreement as the Attorney-in-Fact shall deem advisable. Each Conveying Party hereby
declares that the appointment hereby made and the powers hereby granted are coupled with an interest and are and shall be irrevocable and perpetual and shall not be terminated by any act of any Conveying Party or its successors or assigns or by
operation of law. 
 ARTICLE VII 

MISCELLANEOUS 

Section 7.1 Survival of Representations and Warranties. The representations and warranties of KNOT in this Agreement and in or
under any documents, instruments and agreements delivered pursuant to this Agreement, will survive the completion of the transactions contemplated hereby regardless of any independent investigations that the Partnership may make or cause to be made,
or knowledge it may have, prior to the date of this Agreement and will 

  
 11 

 
continue in full force and effect for a period of one year from the date of this Agreement. At the end of such period, such representations and warranties will terminate, and no claim may be
brought by the Partnership against KNOT thereafter in respect of such representations and warranties, except for claims that have been asserted by the Partnership prior to the date of this Agreement. 

Section 7.2 Taxes. The Partnership shall pay any and all sales, use and similar taxes arising out of the contributions,
conveyances and deliveries to be made hereunder, and shall pay all documentary, filing, recording, transfer, deed, and conveyance taxes and fees required in connection therewith. 

Section 7.3 Headings; References, Interpretation. All Article and Section headings in this Agreement are for convenience only and
shall not be deemed to control or affect the meaning or construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to
this Agreement as a whole, including, without limitation, all Schedules attached hereto, and not to any particular provision of this Agreement. All references herein to Articles, Sections and Schedules shall, unless the context requires a different
construction, be deemed to be references to the Articles and Sections of this Agreement and the Schedules attached hereto, and all such Schedules attached hereto are hereby incorporated herein and made a part hereof for all purposes. All personal
pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, shall include all other genders, and the singular shall include the plural and vice versa. The use herein of the word “including” following any
general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not
non-limiting language (such as “without limitation,” “but not limited to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items
or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. 
 Section 7.4
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. 

Section 7.5 No Third Party Rights. The provisions of this Agreement are intended to bind the Parties as to each other and are not
intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies, and no person is or is intended to be a third party beneficiary of any of the provisions of this Agreement. 

Section 7.6 Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatory
Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. The delivery of an executed counterpart copy of this Agreement by facsimile or electronic transmission in PDF format
shall be deemed to be the equivalent of delivery of the originally executed copy thereof. 
 Section 7.7 Governing Law. This
Agreement shall be governed by, and construed in accordance with, the laws of the state of New York, United States of America, applicable to 

  
 12 

 
contracts made and to be performed wholly within such jurisdiction without giving effect to conflict of law principles thereof other than
Section 5-1401 of the New York General Obligations Law, except to the extent that it is mandatory that the law of some other jurisdiction, wherein the Interests are located, shall apply. 

Section 7.8 Severability. If any of the provisions of this Agreement are held by any court of competent jurisdiction to
contravene, or to be invalid under, the laws of any governmental body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as if it
did not contain the particular provision or provisions held to be invalid and an equitable adjustment shall be made and necessary provision added so as to give effect, as nearly as possible, to the intention of the Parties as expressed in this
Agreement at the time of execution of this Agreement. 
 Section 7.9 Deed; Bill of Sale; Assignment. To the extent required and
permitted by applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of the interests referenced herein. 

Section 7.10 Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement
of all the Parties. Each such instrument shall be reduced to writing and shall be designated on its face as an amendment to this Agreement. 

Section 7.11 Integration. This Agreement and the instruments referenced herein supersede all previous understandings or agreements
among the Parties, whether oral or written, with respect to the subject matter of this Agreement and such instruments. This Agreement and such instruments contain the entire understanding of the Parties with respect to the subject matter hereof and
thereof. No understanding, representation, promise or agreement, whether oral or written, is intended to be or shall be included in or form part of this Agreement unless it is contained in a written amendment hereto executed by the Parties after the
date of this Agreement. 
 [THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY BLANK] 

  
 13 

 IN WITNESS WHEREOF, the parties to this Agreement have caused it to be duly executed as of
the date first above written. 
  

			
	KNUTSEN NYK OFFSHORE TANKERS AS
		
	By:	 	 /s/ TRYGVE SEGLEM

	Name:	 	Trygve Seglem
	Title:	 	Director
	
	KNOT OFFSHORE PARTNERS GP LLC
		
	By:	 	 /s/ ANDREW BEVERIDGE

	Name:	 	Andrew Beveridge
	Title:	 	Director
	
	KNOT OFFSHORE PARTNERS LP
		
	By:	 	 /s/ ARILD VIK

	Name:	 	Arild Vik
	Title:	 	Chief Executive Officer and Chief Financial Officer

 SIGNATURE PAGE 

TO 

CONTRIBUTION AND SALE AGREEMENT 

 
			
	KNOT OFFSHORE PARTNERS UK LLC
		
	By:	 	 /s/ ARILD VIK

	Name:	 	Arild Vik
	Title:	 	Chief Executive Officer and Chief Financial Officer
	
	KNOT SHUTTLE TANKERS AS
		
	By:	 	 /s/ TRYGVE SEGLEM

	Name:	 	Trygve Seglem
	Title:	 	Chairman of the Board

 SIGNATURE PAGE 

TO 

CONTRIBUTION AND SALE AGREEMENT 

 SCHEDULE A 

VESSEL OWNING SUBSIDIARIES AND RIGS 
  

							
	 Vessel Owning Subsidiary
	  	 Jurisdiction of

Registration
	  	 Rig
	  	 Flag

	KNOT Shuttle Tankers 17 AS	  	Norway	  	M/T Bodil Knutsen	  	Isle of Man
	KNOT Shuttle Tankers 18 AS	  	Norway	  	M/T Windsor Knutsen	  	Norway
	Knutsen Shuttle Tankers XII KS	  	Norway	  	M/T Fortaleza Knutsen	  	The Bahamas
		  		  	M/T Recife Knutsen	  	The Bahamas

 SCHEDULE A 

TO 

CONTRIBUTION AND SALE AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00229-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00229-of-00352.parquet"}]]