Document:

Exhibit 4.1
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SHARE PURCHASE AGREEMENT
Between
Knutsen NYK Offshore Tankers AS 
(as Seller)
And
KNOT Shuttle Tankers AS 
(as Buyer) 

for the sale and purchase of the shares in 
KNOT Shuttle Tankers 35 AS

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SHARE PURCHASE AGREEMENT
This agreement (this “Agreement”) is entered into on the 28 June 2022 between:
	(1)
	Knutsen NYK Offshore Tankers AS, company registration no. 995 221 713

(the “Seller”), and
	(2)
	KNOT Shuttle Tankers AS, company registration no. 998 942 829

(the “Buyer”).
The Seller and the Buyer are hereinafter individually referred to as a “Party” and jointly the “Parties”.
	1
	RECITALS

WHEREAS:
	a)
	KNOT Shuttle Tankers 35 AS, company registration no. 821 065 852, is a private limited liability company that has as its purpose to engage in shipowning activities, is duly incorporated under Norwegian law and has its registered place of business in Haugesund, Norway (the “Company”);

	b)
	The Seller is the sole owner of the ownership interest in the Company, with a share capital of NOK 30,000;

	c)
	The Company is the owner of the MT “Synnøve Knutsen”, having IMO No. 9868388 (the “Vessel”);

	d)
	The Company is the owner of all shares in KNOT Shuttle Tankers 28 GP AS, company registration no. 914 450 160, is a private limited liability company that has as its purpose to engage in shipowning activities, is duly incorporated under Norwegian law and has its registered place of business in Haugesund, Norway. The Company are in a process of a tax-free merger with KNOT Shuttle Tankers 28 GP AS with the Company as the surviving entity;

	e)
	The Company is the limited partner with an ownership interest of 90% and KNOT Shuttle Tankers 28 GP AS is the general partner with an ownership interest of 10% in Luky KS. Luky KS, company registration no. 993 469 203, is a private limited liability partnership that has as its purpose to engage in shipowning activities, is duly incorporated under Norwegian law and has its registered place of business in Haugesund, Norway. Luky KS is a partnership under deletion; and

	f)
	The Seller and the Buyer have agreed that the Buyer shall acquire 100% of the shares in the Company (the “Shares”) on the terms and conditions set forth in this Agreement.

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	2
	DEFINITIONS

In this Agreement, the following definitions shall have the following meanings:
	a)
	Accounting Principles
	means the applicable Norwegian generally accepted accounting principles as defined by Norwegian law and regulations and accounting standards issued by the Norwegian Accounting Standards Board (Nw: Norsk Regnskapsstiftelse/NRS), applied on a consistent basis;

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	b)
	Accounts
	means, in respect of the Company Entities, each of their audited profit and loss and balance sheet statement as per the Accounts Date attached as Appendix 2;

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	c)
	Accounts Date
	means 31 December 2021;

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	d)
	Agreement
	shall have the meaning ascribed to such term in the preamble to this Agreement;

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	e)
	Business
	means the current business of the Company, being to own the Vessel, and charter the same under the Charter, and to own the shares in KNOT Shuttle Tankers 28 GP AS and 90% of the interest as limited partner in Luky KS;

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	f)
	Business Day
	means a day on which banks are open for general banking business in Norway;

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	g)
	Buyer
	shall have the meaning ascribed to such term in the preamble to this Agreement;

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	h)
	Buyer Indemnitees
	shall have the meaning ascribed to such term in Clause 12.1;

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	i)
	Capitalized Fees
	means capitalized fees and transaction costs related to the financing of the Vessel as of the Closing Date. Provided the Closing Date occurs on 01 July, 2022, the Capitalized Fees will be USD 592,207.

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	j)
	Charter
	means the time charterparty dated 26 September 2018, as amended, entered into between the Company as owner and the Charterer as charterer in respect of the Vessel;

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	k)
	Charterer
	means Equinor Shipping Inc.;

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	l)
	Closing
	shall have the meaning ascribed to such term in Clause 5.1;

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	m)
	Closing Date
	means the date when the Closing actually takes place according to Clause 5.1;

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	n)
	Companies Act
	means the Norwegian Limited Liability Companies Act of 1997

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	o)
	Company
	means KNOT Shuttle Tankers 35 AS, Norwegian organization no.: 821 065 852;

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	p)
	Company Entities
	means, collectively, the Company, KNOT 28 and Luky;

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	q)
	Encumbrance
	means any mortgage, charge, pledge, lien, option or other security interest or restriction of any kind;

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	r)
	Governmental Authority
	means any domestic or foreign government, including federal, provincial, state, municipal, county or regional government or governmental or regulatory authority, domestic or foreign, and includes any department, commission, bureau, board, administrative agency or regulatory body of any of the foregoing and any multinational or supranational organization;

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	s)
	Indemnified Party
	shall have the meaning ascribed to such term in Clause 12.3;

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	t)
	Indemnifying Party
	shall have the meaning ascribed to such term in Clause 12.3;

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	u)
	KNOT 28
	means KNOT Shuttle Tankers 28 GP AS, Norwegian organization no.: 914 450 160;

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	v)
	Losses
	means any loss, liability, claim, damage, expense (including costs of investigation and defence and reasonable attorneys’ fees) or diminution of value, whether or not involving a third-party claim;

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	w)
	Luky
	means Luky KS, Norwegian organization no.: 993 469 203;

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	x)
	Material Adverse Effect
	means a material adverse effect on the condition (financial, commercial, technical, legal or otherwise) of the Business, assets, results of operations or prospects of the Company Entities;

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	y)
	Material Agreement
	shall have the meaning ascribed to such term in Clause 8.11;

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	z)
	Party
	shall have the meaning ascribed to such term in the preamble to this Agreement;

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	aa)
	Parties
	shall have the meaning ascribed to such term in the preamble to this Agreement;

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	bb)
	Partnership
	means KNOT Offshore Partners LP, a Marshall Islands limited partnership;

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	cc)
	Purchase Price
	shall have the meaning ascribed to such term in Clause 4;

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	dd)
	Purchase Price Adjustments
	shall have the meaning ascribed to such term in Clause 5.4;

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	ee)
	Seller
	shall have the meaning ascribed to such term in the preamble to this Agreement;

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	ff)
	Seller Indemnities
	shall have the meaning ascribed to such term in Clause 12.2;

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	gg)
	Shares
	shall have the meaning ascribed to such term in Clause 1;

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	hh)
	Signing Date
	means the date of this Agreement;

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	ii)
	Swap Agreements
	means the 2002 ISDA master agreements entered into between the Company and Mizuho Bank, Ltd. and the Schedule thereto, dated 29 May 2019 and with MUFG Securities EMEA plc in connection with Novation Agreement dated 19 May 2020 among the Company as Transferee, Knutsen NYK Offshore Tanker AS as Transferor and MUFG Securities EMEA plc as Remaining Party, and the Schedule thereto, each relating to the Synnøve Facility;

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	jj)
	Swap Balance
	means the balance under the Swap Agreements as determined according to a mark-to-market determination as of the Closing Date and applying the middle rate for USD/NOK as published by DNB Markets on the Closing Date, adjusted by USD 80,363 in favour of the Seller to cover the hedging margin compared to the rate at which the Swap Agreements were entered into. As of 31 May, 2022 the Swap Balance (being the balance under swaps entered into with MUFG Securities EMEA plc was USD 818,474 ex accrued interest (against the Company);

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	kk)
	Taxes
	means all taxes (including value-added tax and similar taxes), however denominated, including interest, penalties and other additions to tax that may become payable or imposed by any applicable statute, rule or regulation or any governmental agency, including all taxes, withholdings and other charges in respect of income, profits, gains, payroll, social security or other social benefit taxes, sales, use, excise, real or personal property, stamps, transfers and workers’ compensation, which the Company is required to pay, withhold or collect; and

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	ll)
	Third-Party Claim
	shall have the meaning ascribed to such term in Clause 12.3; and

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	mm)
	Synnøve Facility
	means the USD 192,100,000 Term Loan Facility in respect of the Vessel and the sister vessel MT Tove Knutsen, dated 2 July 2019, and made between (i) the Company and KNOT Shuttle Tankers 34 AS as joint and several borrowers, (ii) the Seller as original guarantor (iii) the financial institutions listed in Schedule 1 thereto as lenders, (iv) MUFG Bank, Ltd. as mandated lead arranger and bookrunner, (v) the financial

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	institutions listed in Schedule 2 thereto as hedging banks and (vi) MUFG Bank, Ltd. as agent;

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	nn)
	Vessel
	shall have the meaning ascribed to such term in Clause 1.

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	3
	SALE AND PURCHASE

Subject to the terms and conditions set forth in this Agreement, the Seller agrees to sell, and the Buyer agrees to purchase, the Shares, together with all rights attached to them.
The Shares shall be transferred to the Buyer on the Closing Date, free and clear from any Encumbrances, other than pursuant to the Synnøve Facility.
	4
	PURCHASE PRICE

The Seller agrees to sell and transfer to the Buyer, and the Buyer agrees to purchase from the Seller the Shares for USD 119,000,000, less USD 87,660,996 of outstanding principal under the Synnøve Facility at Closing, plus the Capitalized Fees in the amount of USD 592,207 (the “Purchase Price”), plus the Purchase Price Adjustments, all in accordance with and subject to the terms and conditions set forth in this Agreement.
The Purchase Price is to be settled by way of cash payment on the Closing Date in the amount of USD 31,931,211 from the Buyer to the Seller, subject to the subsequent Purchase Price Adjustments in accordance with Clause 5.4 below.
The Purchase Price as calculated above is based on the assumption that Closing occurs on 1 July, 2022 at 00:01 CET. If Closing should occur at another time the Parties shall agree on an adjusted Purchase Price to be paid on Closing, to reflect accrued interest, currency fluctuations and paid instalments (as applicable) in respect of the Synnøve Facility and the Capitalized Fees.
	5
	CLOSING

	5.1
	Time and place

Subject to the satisfaction or waiver of the conditions set forth in Clause 6, the completion of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of the Seller at 1 July 2022 or such other time as the Parties agree.
	5.2
	The Seller’s Closing obligations

At the Closing, the Seller shall:
	a)
	deliver to the Buyer a copy of the minutes of the meeting of the board of directors of the Seller authorising the execution of, and the consummation of the transaction contemplated by, this Agreement; and

	b)
	in exchange for the payment of the Purchase Price, transfer the Shares to the Buyer and deliver to the Buyer the share register of the Company with the Buyer duly registered as the owner of the Shares, as well as the related notices according to Sections 4-7 and 4-10 of the Companies Act.

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	5.3
	The Buyer’s Closing obligations

At the Closing, the Buyer shall
	a)
	settle the Purchase Price in accordance with Clause 4.

	5.4
	Post-Closing Adjustment

	a)
	Within 60 days following the Closing Date, the Buyer and the Seller shall agree on the amount of the post-Closing adjustments to the Purchase Price based on:

		(i)
	the Company’s working capital, including the amounts owed to KNOT Management AS pursuant to Clause 8.8b), of this Agreement as of 00:00 hours CET on the Closing Date;

		(ii)
	KNOT 28’s working capital, of this Agreement as of 00:00 hours CET on the Closing Date; and

		(iii)
	Luky’s working capital, of this Agreement as of 00:00 hours CET on the Closing Date; and

		(iv)
	the Swap Balance;
(the “Purchase Price Adjustments”).

	b)
	Within 3 business days following the date on which the Purchase Price Adjustments have been agreed pursuant to Clause 5.4 a) above, the Buyer or the Seller (as the case may be) shall pay to the other Party an amount, in cash, equal to the net Purchase Price Adjustments. Any amounts other than those covered by the Purchase Price Adjustments varying in the period between the Signing Date and the Closing Date shall be for Seller’s account.

	6
	CLOSING CONDITIONS

	6.1
	Conditions to the Buyer’s Closing obligations

The obligations of the Buyer to purchase the Shares and to take the other actions required to be taken by it at the Closing are subject to the satisfaction of each of the following conditions (any of which may be waived in whole or in part by the Buyer) on or before the Closing Date:
	a)
	that the Vessel has been delivered to the Charterer and operated in accordance with the provisions of the Charter and that all costs and expenses related thereto have been settled by the Seller;

	b)
	there is no material breach of any of the representations and warranties of the Seller set forth in Clause 8 and Clause 9;

	c)
	the Buyer shall have obtained the funds necessary to consummate the purchase of the Shares, and to pay all related fees and expenses;

	d)
	in all respects material to the transactions contemplated hereby, the Seller shall have performed or complied with all of its obligations pursuant to this Agreement to be performed or complied with by the Seller at or prior to the Closing Date and shall have

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delivered each document or instrument to be delivered by it pursuant to this Agreement; and
	e)
	the results of the searches, surveys, tests and inspections of the Vessel referred to in Clause 10.1 h) are reasonably satisfactory to the Buyer.

	6.2
	Conditions to the Seller’s Closing obligations

The obligations of the Seller to sell the Shares and to take the other actions required to be taken by it at the Closing are subject to the satisfaction of each of the following conditions (any of which may be waived in whole or in part by the Seller) on or before the Closing Date:
	a)
	there is no material breach of any of the representations and warranties of the Buyer set forth in Clause 7;

	b)
	At Closing, the Buyer shall procure that the Partnership accede to the Synnøve Facility as “Guarantor” for the debt thereunder pertaining to the Vessel (only) by way of an “Accession Letter” set out therein, and that the Shares are pledged as contemplated by the Synnøve Facility, and procure that relevant conditions precedent under the Synnøve Facility relating to the Partnership and/or the Buyer have been satisfied. At Closing, the Seller shall be released from its guarantee obligations under the Synnøve Facility with respect to outstanding amounts relating to the Vessel; and

	c)
	in all respects material to the transactions contemplated hereby, the Buyer shall have performed or complied with all of its obligations pursuant to this Agreement to be performed or complied with by the Buyer at or prior to the Closing Date and shall have delivered each document or instrument to be delivered by it pursuant to this Agreement.

	6.3
	Conditions of the Parties.

The obligations of Seller to sell the Shares and the obligations of Buyer to purchase the Shares are subject to the satisfaction (or waiver by each of Seller and Buyer) on or prior to the Closing Date of the following conditions:
	a)
	The Seller shall have received any and all written consents, permits, approvals or authorizations of any Governmental Authority or any other Person (including, but not limited to, with respect to the Charter, the Synnøve Facility and the Swap Agreements) and shall have made any and all notices or declarations to or filing with any Governmental Authority or any other Person, including those related to any environmental laws or regulations, required in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereunder, including the transfer of the Shares; and

	b)
	No legal or regulatory action or proceeding shall be pending or threatened by any Governmental Authority to enjoin, restrict or prohibit the purchase and sale of the Shares.

	7
	REPRESENTATIONS AND WARRANTIES OF THE BUYER

The Buyer represents and warrants to the Seller that as of the Signing Date and on the Closing Date, unless otherwise expressly stated:
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	7.1
	Corporate existence and power

The Buyer is duly incorporated, validly existing and in good standing under the laws of Norway.
The Buyer has not been declared insolvent; become the subject of a petition in bankruptcy; had a receiver appointed with respect to it or to the business of the Buyer or part thereof; entered into any arrangement with, or made an assignment for the benefit of, its creditors; or ceased to function as a going concern.
	7.2
	Corporate authorisation and non-contravention

This Agreement and each other document or instrument delivered or to be delivered in connection with this Agreement has been duly authorised by all necessary corporate action(s) of the Buyer and constitutes or will, when executed, constitute valid and binding obligations of the Buyer enforceable in accordance with its respective terms.
The execution by the Buyer of this Agreement and each other document or instrument delivered or to be delivered in connection with it, and the performance by the Buyer of its obligations under this Agreement and the consummation of the transactions provided for in this Agreement, do not and will not result in a breach of any provision of the articles of association of the Buyer or of any applicable law, order, judgment or decree of any court or Governmental Authority or of any agreement to which the Buyer is bound.
The Buyer is not required to obtain any authorisations, consents, approvals or exemptions by any Governmental Authority in connection with the entering into or performance of its obligations under this Agreement.
	8
	REPRESENTATIONS AND WARRANTIES OF THE SELLER

The Seller represents and warrants to the Buyer as of the Signing Date and on the Closing Date, unless otherwise expressly stated:
	8.1
	Corporate existence and power

Each of the Company Entities and the Seller is duly incorporated, validly existing and in good standing under the laws of Norway.
Each of the Company Entities and the Seller has not been declared insolvent; become the subject of a petition in bankruptcy; had a receiver appointed with respect to it or to the Business or part thereof; entered into any arrangement with, or made an assignment for the benefit of, its creditors; or ceased to function as a going concern.
Other than its interests in KNOT 28 and Luky, the Company does not own, directly or indirectly, any equity or long-term debt securities of any corporation, partnership, limited liability company or other entity.
	8.2
	Corporate authorisation and non-contravention

This Agreement and each other document or instrument delivered or to be delivered in connection with this Agreement has been duly authorised by all necessary corporate action(s) of each of the Company and the Seller, as appropriate, and constitutes or will, when executed, constitute valid and
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binding obligations of each of the Company and the Seller, as appropriate, enforceable in accordance with its respective terms.
The execution by each of the Company and the Seller, as appropriate, of this Agreement and each other document or instrument delivered or to be delivered in connection with it, and the performance by each of the Company and the Seller, as appropriate, of its obligations under this Agreement and the consummation of the transactions provided for in this Agreement, do not and will not result in a breach of any provision of the articles of association of each of the Company and the Seller, as appropriate, or of any applicable law, order, judgment or decree of any court or Governmental Authority or of any agreement to which each of the Company and the Seller, as appropriate, is bound.
Each of the Company and the Seller, as appropriate, is not required to obtain any authorisations, consents, approvals or exemptions by any Governmental Authority in connection with the entering into or performance of its obligations under this Agreement.
	8.3
	Capitalisation and title

The Seller has full ownership to the Shares. The Shares are duly authorised, validly issued and fully paid and at Closing, will be free and clear from any Encumbrances, other than pursuant to the Synnøve Facility. The Company has full ownership of its interests in the other Company Entities and such interests are duly authorised, validly issued and fully paid and at Closing, will be free and clear from any Encumbrances, other than pursuant to the Synnøve Facility.
There is no outstanding subscription, option or similar rights relating to the Shares or the interests of the Company in the other Company Entities.
	8.4
	Records

The Company Entities’ articles of association, shareholders’ register and other organizational documents are true, accurate, up-to-date and complete.
	8.5
	Charter documents; validity of the Charter

The Seller has supplied to the Buyer true and correct copies of the Charter and any related documents, as amended to the Closing Date. The Charter is a valid and binding agreement of the Company enforceable against the Company in accordance with its terms and, to the knowledge of the Seller, the Charter is a valid and binding agreement of all other parties thereto enforceable against such parties in accordance with its terms.
	8.6
	Accounts

The Accounts have been prepared in accordance with the Accounting Principles and in accordance with the books and records of the Company Entities. The Accounts give a true and accurate view of the financial position, solvency, assets, liabilities, liquidity, cash flow and the result of the operations of each of the Company Entities as of the Accounts Date.
	8.7
	No undisclosed liabilities

Neither the Company Entities nor the Vessel has any Encumbrances, or other liabilities or obligations of any nature, whether absolute, accrued, contingent or otherwise, and whether due or to become due (including, without limitation, any liability for Taxes and interest, penalties and other charges payable with respect to any such liability or obligation), except for such liabilities or obligations
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arising under the Charter, the Synnøve Facility, the Swap Agreements, the management agreement relating to the Vessel with KNOT Management AS, the inter-company balances described in Clause 8.8 c) and the Encumbrances appearing in the ship registry of the Vessel and arising under the Synnøve Facility and the Swap Agreements.
	8.8
	Loans and other financial facilities

All loans and other financial facilities available to the Company Entities have been made available for review by the Buyer.
	a)
	As of the Signing Date, the principal outstanding amount under the Synnøve Facility in respect of the Vessel is USD 87,660,996 where the next instalments of USD 1,184,608 is due 21 July, 2022.

	b)
	As of 31 May 2022, the non-interest bearing inter-company balance between the Company (as lender) and KNOT Management AS (as borrower) was NOK 2,472,710.89.

No event has occurred which gives, or after notice or lapse of time, or both, would give any third party the right to call for repayment from any Company Entity prior to normal maturity of any loan or other financial facility. The Company Entities shall not be indebted, directly or indirectly, to any person who is an officer, director, stockholder or employee of any of the Seller or any spouse, child or other relative or any affiliate of any such person, nor shall any such officer, director, stockholder, employee, relative or affiliate be indebted to the Company Entities.
	8.9
	Assets

At the Closing Date, no Company Entity shall be using assets in the Business that such Company Entity neither owns nor has the right to use pursuant to written agreements with third parties. At the Closing Date, the assets of the Company Entities will comprise all the assets necessary for carrying on the Business fully and effectively to the extent to which it is conducted at the Signing Date.
	8.10
	Absence of certain changes or events

Since the Accounts Date, there has not occurred or arisen:
	a)
	any change of accounting methods, principles or practices, accounting, invoicing and supplier practice or procedures for the Company Entities;

	b)
	any acquisition or disposal of, or the entering into any agreement to acquire or dispose of, any asset, other than the sale of products in the ordinary course of business;

	c)
	the termination of any Material Agreement, other than the Commercial Management Agreement dated 26 September 2018 between the Company and KNOT Management AS pursuant to the Agreement on Termination of the Commercial Management Agreement dated [28] June 2022;

	d)
	any obligations, commitments or liabilities, contingent or otherwise, whether for Taxes or otherwise, except obligations, commitments and liabilities arising in the ordinary course of business;

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	e)
	any event or condition, whether covered by insurance or not, which has resulted in or may result in a Material Adverse Effect; or

	f)
	the entering into of any agreements or commitments other than on customary terms.

	8.11
	Agreements

Each Material Agreement is in full force and effect. No other Material Agreements will be entered into by the Company Entities prior to the Closing Date without the prior consent of the Buyer (such consent not to be unreasonably withheld). The Company Entities have fulfilled all material obligations required pursuant to the Material Agreements to have been performed by each of them prior to the Signing Date and have not waived any material rights thereunder.
There has not occurred any material default on the part of the Company Entities under any of the Material Agreements, or to the knowledge of the Seller, on the part of any other party thereto, nor has any event occurred that with the giving of notice or the lapse of time, or both, would constitute any material default on the part of any Company Entity under any of the Material Agreements nor, to the knowledge of the Seller, has any event occurred that with the giving of notice or the lapse of time, or both, would constitute any material default on the part of any other party to any of the Material Agreements.
The term “Material Agreement” means each agreement, contract or other undertaking by or of any Company Entity (a) that is of material importance to the Business or (b) the value of which, in respect of total turnover during one year, is not less than NOK 500,000, provided, however, that such term includes the Charter, the Synnøve Facility and the Swap Agreements.
	8.12
	Insurance

The Company Entities maintain insurance policies on fire, theft, loss, disruption, product and general liability and other forms of insurance with reputable insurers that would reasonably be judged to be sound and required for the Business.
The Company Entities’ insurance policies do not contain any provisions regarding a change of control or ownership of the insured.
The Company Entities are in compliance with all terms and conditions contained in the insurance policies, and nothing has been done or omitted to be done that would make any insurance policy or insurance void or voidable or that would result in a reduction of the coverage (No: avkortning).
	8.13
	Environmental matters

The Company Entities are not and have not been in breach of any applicable laws (whether civil, criminal or administrative), statutes, regulations, directives, codes, judgments, orders or any other measures imposed by any governmental, statutory or regulatory body with regard to the pollution or the protection of the environment or to the protection of human health or human safety, or any other living organisms supported by the environment.
There is no current governmental investigation or disciplinary proceeding relating to any alleged breach of any law or permit by the Company Entities, and none is pending, nor threatened.
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The Company Entities have not, other than as permitted under applicable permits or applicable laws or regulations held from time to time, disposed of, discharged, released, placed, dumped or emitted any hazardous substances, such as pollutants, contaminants, hazardous or toxic materials, wastes or chemicals. Neither the Seller nor the Company Entities have received any formal or informal notice or other communication from which it appears that any of the Company Entities may be or have been in violation of any laws or permits. There are no actual or contingent obligations on the Company Entities to pay money or carry out any work in order to keep or be granted an extension or renewal of any existing permit. There are no facts or circumstances that could result in such an obligation. The properties used by the Company Entities are not made of or do not contain any form of asbestos or any other toxic substance that may cause damage to the health of the persons working or visiting the premises.
	8.14
	Compliance with laws

The Company Entities have at all times conducted the Business in accordance with and have complied with any applicable laws in Norway and in any other relevant countries relating to each of their operations and the Business.
All necessary licences, consents, permits and authorisations have been obtained by the Company Entities to enable the Company Entities to carry on the Business in the places and in the manner in which such Business is now conducted and all such licences, consents, permits and authorisations are valid and subsisting and have been complied with in all respects.
	8.15
	Litigation

There are no claims, actions, lawsuits, administrative, governmental, arbitration or other legal proceedings (including but not limited to proceedings related to Taxes) pending or threatened against or involving the Company Entities, the Business or properties or assets of the Company Entities and which would result in a Material Adverse Effect if adversely determined.
	8.16
	Taxes

The Company Entities have properly filed with the appropriate Tax authorities all Tax returns and reports required to be filed for all Tax periods ending prior to the Closing Date. Such filings are true, correct and complete. All information required for a correct assessment of Taxes has been provided.
The Tax returns of the Company Entities have been assessed and approved by the Tax authorities through the Tax years up to and including the years for which such assessment and approval is required, and the Company Entities are not subject to any dispute with any such authority.
All Taxes that have become due have been fully paid or fully provided for in the Accounts, and the Company Entities shall not be liable for any additional Tax pertaining to the period before the Accounts Date. All Taxes for the period after the Accounts Date have been fully paid when due.
There are no Tax audits, Tax disputes or Tax litigation pending or threatened against or involving the Company Entities. There is no basis for assessment of any deficiency in any Taxes against the Company Entities that has not been provided for in the Accounts or that has not been paid.
The Company Entities are not and have not been involved in any transaction that could be considered as Tax-evasive. All losses for Tax purposes incurred by the Company Entities are trading
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losses and are available to be carried forward and set off against income in succeeding periods without limitation and have been accepted by the relevant Tax authorities.
The Company Entities are not and have not been subject to any Tax outside each of their respective country of fiscal residence.
	8.17
	Relationship with the Seller

Except as disclosed to the Buyer, there are no written or oral agreements or arrangements between any Company Entity, on the one hand, and the Seller, on the other hand, and no liabilities or obligations (contingent or otherwise) owed by any Company Entity to the Seller.
No services provided by the Seller to any Company Entity are necessary in the ordinary course of business.
No payments of any kind, including, but not limited to management charges, have been made by any Company Entity to the Seller, save for payments under agreements or arrangements made on an arm’s-length basis in accordance with applicable law and regulations.
	8.18
	Information

All documents provided to the Buyer by or on behalf of the Seller or the Company Entities are true and correct, and no document provided to the Buyer by or on behalf of the Seller or the Company Entities contains any untrue statement of a relevant fact or omits to state a relevant fact necessary to make the statements contained in the document not misleading.
There are no facts or circumstances known to the Seller, relating to the affairs of the Company Entities, that have not been disclosed to the Buyer, which, if disclosed, reasonably could have been expected to influence the decision of the Buyer to purchase the Shares on the terms of this Agreement.
The Seller confirms that the Seller, prior to the Signing Date, has made, and until the Closing Date, shall continue to make, all investigations necessary in order to ensure that the statements in Clauses 8 and 9 are correct.
	9
	REPRESENTATIONS AND WARRANTIES OF THE SELLER REGARDING THE VESSEL

The Seller represents and warrants to the Buyer as of the Signing Date and on the Closing Date, unless otherwise expressly stated:
	9.1
	Flag and title

The Company is the registered owner of the Vessel and has good and marketable title to the Vessel, free and clear of any and all Encumbrances, other than those arising under the Synnøve Facility and the Swap Agreements. The Vessel is properly registered in the name of the Seller under and pursuant to the flag and law of Norway, and all fees due and payable in connection with such registration have been paid.
	9.2
	Classification

The Vessel is entered with the DNV GL and has the highest classification rating. The Vessel is in class without any recommendations or notation as to class or other requirement of the relevant classification society, and if the Vessel is in a port, it is in such condition that it
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cannot be detached by any port state authority or the flag state authority for any deficiency.
	9.3
	Maintenance

The Vessel has been maintained in a proper and efficient manner in accordance with internationally accepted standards for good ship maintenance, is in good operating order, condition and repair and is seaworthy, and all repairs made to the Vessel during the period from delivery from newbuilding yard and all known scheduled repairs due to be made and all known deficiencies have been disclosed to the Buyer.
	9.4
	Liens

The Vessel is not (a) under arrest or otherwise detained, (b) other than in the ordinary course of business, in the possession of any person (other than her master and crew) or (c) subject to a possessory lien.
	9.5
	Safety

The Vessel is supplied with valid and up-to-date safety, safety construction, safety equipment, radio, loadline, health, tonnage, trading and other certificates or documents as may for the time being be prescribed by the law of Norway or of any other pertinent jurisdiction, or that would otherwise be deemed necessary by a shipowner acting in accordance with internationally accepted standards for good ship management and operations.
	9.6
	No blacklisting or boycotts

No blacklisting or boycotting of any type has been applied or currently exists against or in respect of the Vessel.
	9.7
	No options

There are not outstanding any options or other rights to purchase the Vessel.
	9.8
	Insurance

The insurance policies relating to the Vessel are as set forth on Appendix 1 hereto, each of which is in full force and effect and, to the Seller’s knowledge, not subject to being voided or terminated for any reason.
	10
	COVENANTS PRIOR TO THE CLOSING

	10.1
	Covenants of the Seller Prior to the Closing

From the Signing Date to the Closing Date, the Seller shall cause the Company Entities to conduct their business in the usual, regular and ordinary course in substantially the same manner as previously conducted. The Seller shall not permit any of the Company Entities to enter into any contracts or other written or oral agreements prior to the Closing Date, other than such contracts and agreements as have been disclosed to the Buyer prior to the Signing Date, without the prior consent of the Buyer (such consent not to be unreasonably withheld). In addition, the Seller shall not permit any of the Company Entities to take any action that would result in any of the conditions to the purchase and sale of the Shares set forth in Clause 6 not being satisfied. Furthermore, the Seller hereby agrees and covenants that it:
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	a)
	shall use its best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary to consummate and make effective as promptly as possible the transactions contemplated by this Agreement and to co-operate with the Buyer and others in connection with the foregoing;

	b)
	shall use its best efforts to obtain the authorisations, consents, orders and approvals of regulatory bodies and officials that may be or become necessary for the performance of its obligations pursuant to this Agreement and the completion of the transactions contemplated by it;

	c)
	shall co-operate with the Buyer and promptly seek to obtain such authorisations, consents, orders and approvals as may be necessary for the performance of the Parties’ respective obligations pursuant to this Agreement;

	d)
	shall not amend, alter or otherwise modify or permit any amendment, alteration or modification of any material provision of or terminate the Charter or any other contract prior to the Closing Date without the prior written consent of the Buyer, such consent not to be unreasonably withheld or delayed;

	e)
	shall not exercise or permit any exercise of any rights or options contained in the Charter, without the prior written consent of the Buyer, not to be unreasonably withheld or delayed;

	f)
	shall observe and perform in a timely manner, all of its covenants and obligations under the Charter, the Synnøve Facility and the Swap Agreements, if any, and in the case of a default by another party thereto, it shall forthwith advise the Buyer of such default and shall, if requested by the Buyer, enforce all of its rights under such Charter, the Synnøve Facility or the Swap Agreements, as applicable, in respect of such default;

	g)
	shall not cause or, to the extent reasonably within its control, permit any Encumbrances to attach to the Vessel other than in connection with the Synnøve Facility and the Swap Agreements; and

	h)
	shall permit representatives of the Buyer to make, prior to the Closing Date, at the Buyer’s risk and expense, such surveys, tests and inspections of the Vessel as the Buyer may deem desirable, so long as such surveys, tests or inspections do not damage the Vessel or interfere with the activities of the Seller, the Company or the Charterer thereon and so long as the Buyer shall have furnished the Seller with evidence that adequate liability insurance is in full force and effect.

	10.2
	Covenants of the Buyer Prior to the Closing

The Buyer hereby agrees and covenants that during the period of time after the Signing Date and prior to the Closing Date, the Buyer shall, in respect of the Shares to be transferred on the Closing Date, take, or cause to be taken, all necessary company action, steps and proceedings to approve or authorize validly and effectively the purchase and sale of the Shares and the execution and delivery of this Agreement and the other agreements and documents contemplated hereby.
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	11
	TERMINATION

	11.1
	Termination

This Agreement may be terminated, and the transactions contemplated by this Agreement may be abandoned, at any time prior to the Closing Date:
	a)
	by either Party if a breach of any provision of this Agreement has been committed by the other Party, such breach has not been waived and such breach is material to the transactions contemplated hereby, the Business or the assets, financial condition or prospect of the Company Entities;

	b)
	by the Buyer if satisfaction of any of the conditions in Clause 6.1 is or becomes impossible (other than through the failure of the Buyer to comply with its obligations under this Agreement) and the Buyer has not waived such condition;

	c)
	by the Seller if satisfaction of any of the conditions in Clause 6.2 is or becomes impossible (other than through the failure of the Seller to comply with its obligations under this Agreement) and the Seller has not waived such condition;

	d)
	by either Party if satisfaction of any of the conditions in Clause 6.3 is or becomes impossible and Buyer and Seller have not waived such condition;

	e)
	by the Buyer due to a change having occurred that has resulted or may result in a Material Adverse Effect; or

	f)
	by mutual written consent of the Seller and the Buyer.

	11.2
	Rights on termination

If this Agreement is terminated pursuant to Clause 11.1, all further obligations of the Parties pursuant to this Agreement shall terminate without further liability of a Party to the other, provided, however, that the obligations of the Parties contained in Clause 13 (Costs) and Clause 17 (Governing Law and arbitration) shall survive such termination, and further provided, that if this Agreement is terminated by a Party because of the breach of this Agreement by the other Party or because one or more of the conditions to the terminating Party’s obligations under this Agreement is not satisfied as a result of the other Party’s failure to comply with its obligations under this Agreement, the terminating Party’s right to pursue all legal remedies will survive such termination unimpaired.
	12
	INDEMNIFICATION

	12.1
	Indemnity by the Seller

Following the Closing, the Seller shall be liable for, and shall indemnify, defend and hold harmless the Buyer and its respective officers, directors, employees, agents and representatives (the “Buyer Indemnitees”) from and against, any Losses, suffered or incurred by such Buyer Indemnitees:
	a)
	by reason of, arising out of or otherwise in respect of any inaccuracy in, breach of any representation or warranty, or a failure to perform or observe fully any covenant, agreement or obligation of, the Seller in or under this Agreement or in or under any document, instrument or agreement delivered pursuant to this Agreement by the Seller;

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	b)
	subject to Clause 13 b), any fees, expenses or other payments incurred or owed by the Seller to any brokers, financial advisors or comparable other persons retained or employed by it in connection with the transaction contemplated by this Agreement;

	c)
	any Losses of the Company Entities or the Vessel or any other vessel chartered or owned by the Company Entities incurred prior to or on the Closing Date arising from any violation of any applicable law or regulation relating to protection of natural resources, health and safety and the environment;

	d)
	all federal, state, foreign and local income tax liabilities attributable to the Company Entities or operation of the Vessel prior to the Closing Date; or

	e)
	any Losses suffered or incurred by such Buyer Indemnitees in connection with any claim for the repayment of hire or Losses in relation to the Vessel or any other vessel chartered or owned by the Company Entities for periods prior to the Closing.

12.2Indemnity by the Buyer
Following the Closing, the Buyer shall be liable for, and shall indemnify, defend and hold harmless the Seller and its respective officers, directors, employees, agents and representatives (the “Seller Indemnitees”) from and against, any Losses, suffered or incurred by such Seller Indemnitees by reason of, arising out of or otherwise in respect of any inaccuracy in, breach of any representation or warranty, or a failure to perform or observe fully any covenant, agreement or obligation of, the Buyer in or under this Agreement or in or under any document, instrument or agreement delivered pursuant to this Agreement by the Buyer.
	12.3
	Indemnification procedures with respect to third-party claims

If the Seller or the Buyer, as the case may be (an “Indemnified Party”), shall receive notice of any claim by a third party that is or may be subject to indemnification or compensation from the other Party pursuant to this Agreement (a “Third-Party Claim”), the Indemnified Party shall give the other Party (the “Indemnifying Party”) prompt written notice of such Third-Party Claim and the Indemnifying Party shall, at the Indemnifying Party’s option, have the right to participate in the defence thereof by counsel at the Indemnifying Party’s own cost and expense. If the Indemnifying Party acknowledges within 30 days from such written notice in writing its obligation to indemnify the Indemnified Party against all Losses that may result from such Third-Party Claim, the Indemnifying Party shall be entitled, at the Indemnifying Party’s option, to assume and control the defence of such Third-Party Claim at the Indemnifying Party’s cost and expense and through counsel of the Indemnifying Party’s choice. No such Third-Party Claim may be settled by the Indemnifying Party without the written consent of the Indemnified Party, unless the settlement involves only the payment of money by the Indemnifying Party. No Third-Party Claim that is being defended in good faith by the Indemnifying Party shall be settled by the Indemnified Party without the written consent of the Indemnifying Party. The Indemnifying Party shall have no obligation to indemnify the Indemnified Party for any losses resulting from the settlement of Third-Party Claims in violation of the provisions of this Clause 12.3.
	13
	COSTS

	a)
	Subject to Clause 13b) and 13c), each party shall pay its own costs and expenses in connection with the preparation for and completion of the transactions contemplated by this Agreement, including but not limited to all fees and expenses of its own

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representatives, agents, brokers, legal and financial advisers and authorities and no such costs or expenses shall be charged to or paid by, neither directly or indirectly, the Company.
	b)
	The fees and expenses related to the fairness opinion of AMA Capital Partners LLC dated 27 June 2022 will be divided equally between the Buyer and the Seller.

	c)
	Legal fees to US, Norwegian and UK legal counsel related to the transactions contemplated by this Agreement and the related and financing arrangements will be divided equally between the Buyer and the Seller.

	14
	NOTICES

All notices, requests, demands, approvals, waivers and other communications required or permitted under this Agreement must be in writing in the English language and shall be deemed to have been received by a Party when:
	a)
	delivered by post, unless actually received earlier, on the third Business Day after posting, if posted within Norway, or the fifth Business Day, if posted to or from a place outside Norway;

	b)
	delivered by hand, on the day of delivery; or

	c)
	delivered by fax, on the day of dispatch if supported by a written confirmation from the sender’s fax machine that the message has been properly transmitted.

All such notices and communications shall be addressed as set forth below or to such other addresses as may be given by written notice in accordance with this Clause 14.
If to the Seller:
Knutsen NYK Offshore Tankers AS 
Attention: President & CEO
Smedasundet 40, Postboks 2017, 5504 Haugesund, Norway
​
If to the Buyer:
KNOT Shuttle Tankers AS 
Attention: Chairman of the Board
Smedasundet 40, Postboks 2017, 5504 Haugesund, Norway
	15
	ASSIGNMENT

This Agreement shall be binding upon and inure to the benefit of the successors of the Parties, but shall not be assignable by any of the Parties without the prior written consent of the other Party. The benefit of this Agreement may, however, be assigned by either of the Parties to any group directly or indirectly controlling, controlled by or under common control of the assignor, provided that the assignor shall remain liable for its own debt and for all obligations under this Agreement.
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	16
	MISCELLANEOUS

	16.1
	Further Assurances

From time to time after the Signing Date, 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 shall 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) more fully and effectively to carry out the purposes and intent of this Agreement.
	16.2
	Integration

This Agreement, the Appendices hereto and the instruments referenced herein supersede all previous understandings or agreements among the Parties, whether oral or written, with respect to its subject matter hereof. This Agreement, the Appendices hereto and the instruments referenced herein 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 hereto after the Signing Date.
	16.3
	No Broker’s Fees

No one is entitled to receive any finder’s fee, brokerage or other commission in connection with the purchase of the Shares or the consummation of the transactions contemplated by this Agreement.
	17
	GOVERNING LAW AND ARBITRATION

This Agreement shall be governed by and construed in accordance with Norwegian law.
The Parties shall seek to solve through negotiations any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity hereof. If the Parties fail to solve such dispute, controversy or claim by a written agreement within 60 days after one of the Parties has requested such negotiations by notice to the other Party, such dispute, controversy or claim shall be finally settled by arbitration in Haugesund in the English language in accordance with the Norwegian Arbitration Act. The arbitration tribunal shall consist of three arbitrators, of which the Buyer shall appoint one arbitrator and the Seller shall appoint one arbitrator. The arbitrators so appointed shall appoint the third arbitrator, who shall be the chairman of the arbitration tribunal. In the event of failure by a Party to appoint its arbitrator within 30 days after the request for arbitration first is given, or the failure by the first two arbitrators to appoint the third arbitrator within 30 days after appointment of the last of the first two arbitrators to be appointed, such arbitrator or arbitrators shall be appointed by the district judge (No: “Sorenskriver”) of Haugesund District Court. Any Party may seek judgement upon any award in any court having jurisdiction, or an application may be made to such court for the judicial acceptance of the award and for an order of enforcement.
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Notwithstanding the above, either Party may bring an action in any court of competent jurisdiction (a) for provisional relief pending the outcome of arbitration, including, without limitation, provisional injunctive relief or pre-judgement attachment of assets, or (b) to compel arbitration or enforce any arbitral award. For purposes of any proceeding authorised by this Clause 17, each Party hereby consents to the non-exclusive jurisdiction of Haugesund, Norway.
* * *
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This Agreement has been executed in two original copies, of which each Party has retained one copy.
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	Knutsen NYK Offshore Tankers AS
	    
	KNOT Shuttle Tankers AS

	By:
	/s/ Trygve Seglem
	​
	By:
	/s/ Øystein Emberland

	Name:
	​
	Trygve Seglem
	​
	​
	Name:
	​
	Øystein Emberland
	​

	Title:
	​
	CEO
	​
	​
	Title:
	​
	Attorney-in-Fact
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​
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Appendix 1
​
INSURANCES
​
	​

	Insurance Policies (all quoted values are USD)

​
	Hull & Machinery
	​
	​

	Hull
	Insured Value:
	$110,000,000

	​
	Policy Renewal:
	01.11.2021-31.10.2022

	Hull Interest
	Insured Value:
	$27,500,000

	​
	Policy Renewal:
	01.11.2021-31.10.2022

	Freight Interest
	Insured Value:
	$27,500,000

	​
	Policy Renewal:
	01.11.2021-31.10.2022

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	P&I Insurance
	​

	Gross Tonnage:
	84666

	Policy Renewal:
	20.02.2022-20.02.2023

	​
	​

	War Risk
	​

	Insured Value:
	$165,000,000

	Policy Renewal:
	01.01.2022-31.12.2022

​
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	18,0%
	Aon London Broking Center Allianz

	​
	10%
	Allianz Global Corporate & Speciality SE, London

	​
	5%
	Lloyds Syndicate 1036 COF

	​
	3%
	Markel Insurance SE

	4,0%
	Aon London Broking Center Arch

	​
	4%
	Arch Insurance Comp. (Europe) Ltd.

	3,0%
	Aon London Broking Center BRT 2987

	​
	3%
	Lloyds Syndicate 2987 BRT

	5,0%
	Aon London Broking Center CUL 3010

	​
	5%
	Lloyds Syndicate 3010 CUL

	3,5%
	Aon London Broking Center SCOR

	​
	3,5%
	SCOR UK Company Limited

	8,5%
	Aon London Broking Center XLC 2003

	​
	8,5%
	Lloyds Syndicate 2003 XLC

	7,5%
	Codan Forsikring NUF

	9,0%
	Gard AS, as agents only for Gard M&E Ltd

	9,0%
	Norwegian Hull Club

	7,5%
	The Swedish Club

	25,0%
	Tokio Marine & Nichido Fire Insurance Co., Ltd.

	100,0%
	Total

​
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Appendix 2
ACCOUNTS
​
[Separate attachment]

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Exhibit 4.2
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​
​

	MEMORANDUM OF AGREEMENT

	SALEFORM 2012
Norwegian Shlpbrokers’ Association’s
Memorandum of Agreement for sale and purchase of ships

​
Dated: 1620th June, 2022
Knutsen Shuttle Tankers 15 AS (Name of sellers), Performance to be Guaranteed by Knutsen Offshore partners LP as per performance guaranteee hereinafter called the “Sellers”, have agreed to sell, and
FOUR LAND (PANAMA) S.A. (Name of buyers), Performance to be Guaranteed by Doun Kisen Co. Ltd as per performance guaranteee,  hereinafter called the “Buyers”, have agreed to buy:
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	Name of vessel:
	Torill Knutsen

	​
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	IMO Number:
	9630030

	​
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	Classification Society:
	Det Norske Veritas

​
Class Notation: +1A1 Tanker for oil BIS Bow loading CCO Clean(Design) COAT-PSPC(B) COMF(C-3, V-3) CSA(FLS2) CSR DYNPOS(AUTR) E0 ESP ESV(DP[HIL-IS]) F{A, M, C) HELDK(S, H, CAA-N) Ice(1c) NAUT(AW) OPP-F Plus SPM TMON VCS(2) Winterized(Cold, -35°C, -15°C)
	​

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	Year of Build:
	2013

	​
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	Builder/Yard:
	Hyundal Heavy Industries

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	Flag:
	NIS

	​
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	Place of Registration:
	Haugesund

	​
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	GT/NT:
	80,85080,850/36,065

​
hereinafter called the “Vessel”, on the following terms and conditions:
Definitions
“Banking Days” are days on which banks are open both in the country of the currency stipulated for the Purchase Price in Clause 1 (Purchase Price) and in the place of closing stipulated in Clause 8 (Documentation) and Tokyo, New York, Valletta and Oslo (add additional jurisdictions as appropriate).
“Buyers’ Nominated Flag State” means Malta (state flag state).
“Class” means the class notation referred to above.
“Classification Society” means the Society referred to above.
“Deposit” shall have the meaning given Clause 2 (Deposit).
“Deposit Holder” means       (state name and location of Deposit Holder) or, if left blank, the Sellers’ Bank, which shall hold and release the Deposit in accordance with this Agreement.
“In writing” or “written” means a letter handed over from the Sellers to the Buyers or vice versa, a registered letter, email or telefax.
“Parties” means the Sellers and the Buyers.
“Purchase Price” means the price for the Vessel as stated in Clause 1 (Purchase Price).
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op
	Copyright © 2012 Norwegian Shlpbrokers’ Association. All rights reserved. Published by BIMCO. No part of this BIMCO SmartCon document may be copied, reproduced or distributed In any form without the prior written permission of the Norwegian Shlpbrokers’ Association. Explanatory notes are available from BIMCO at www.bimco.org. Adopted by BIMCO in 1956, revised 1966, 1983, 1986/87, 1993 and 2012.
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“Sellers’ Account” means DNB Bank ASA / SWIFT : DNBANOKKXXX / USD Acc : 1250.04.73523 (state details of bank account) at the Sellers’ Bank.
“Sellers’ Bank” means DNB Bank ASA (state name of bank, branch and details) or, if left blank, the bank notified by the Sellers to the Buyers for receipt of the balance of the Purchase Price.
“BBCP” means Bareboat Charter Party dated on the same date as the MOA agreed between Knutsen Shuttle Tankers 1549 AS and FOUR LAND (PANAMA) MI-DAS-LINE, S.A., together with any addenda thereto.
“Charterer” means charterer as per BBCP dated on the same date as the MOA.
“Owner” means owner as per BBCP dated on the same date as the MOA.
	1.
	Purchase Price

The Purchase Price is USD112,000,000 (United States Dollars One Hundred Twelve Million ninety four million three hundred thousand only) (state currency and amount both in words and figures).
2.Deposit
As security for the correct fulfilment of this Agreement the Buyers shall lodge a deposit of         % (       per cent) or, if left blank,10% (ten per cent), of the Purchase Price (the “Deposit”) in an interest bearing account for the parties with the Deposit Holder within three (3) Banking Days after the date that:
(i) this Agreement has been signed by the Parties and exchanged in original or by e-mail or telefax; and
(ii) the Deposit Holder has confirmed in writing to the Parties that the account has been opened.
The Deposit shall be released in accordance with joint written instructions of the Parties. Interest, if any, shall be credited to the Buyers. Any fee charged for holding and releasing the Deposit shall be borne equally by the Parties. The Parties shall provide to the Deposit Holder all necessary documentation to open and maintain the account without delay.
3.Payment
On delivery of the Vessel, but not later than three (3) Banking Days after the date that Notice of Readiness has been given in accordance with Clause 5 (Time and place of delivery and notices):
(i) the Deposit shall be released to the Sellers; and
(ii) the balance of tThe Purchase Price and all other sums payable on delivery by the Buyers to the Sellers under this Agreement shall be remitted by the Buyers to the Sellers’ bank by an interbank swift message (SWIFT MT 103) not later than two (2) Banking days prior to the expected date of delivery of the Vessel, accompanied by an interbank swift message (SWIFT MT 199) confirming that the Purchase Price is to be held by th Sellers’ Bank on suspense (such SWIFT MT 199 to be agreed between the Buyers and the Sellers not less than five (5) Banking Days prior to expected date of delivery of the Vessel. The said Purchase Price shall be unconditionally released/paid to the Sellers by the Sellers’ presentation to the Sellers’ Bank of either an original or fax-copypdf or photocopy of “Protocol of Delivery and Acceptance” in respect of the Vessel duly signed by both the Sellers’ and the Buyers’ authorized representatives only. paid in full free of bank charges to the Sellers’ Account.
4.Inspection
	(a)*
	The Buyers have inspected and accepted the Vessel’s classification records online and have waived physical inspection and the sale is outright and definite, subject only to the terms and conditions of this Agreement.. The Buyers have also inspected the Vessel at/in         (state place) on             (state date) and have accepted the vessel following this inspection and the sale is outright and definite, subject only to the terms and conditions of this Agreement.

	(b)*
	The Buyers shall have the right to inspect the Vessel’s classification records and declare whether same are accepted or not within N/A (state date/period).

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op
	Copyright © 2012 Norwegian Shlpbrokers’ Association. All rights reserved. Published by BIMCO. No part of this BIMCO SmartCon document may be copied, reproduced or distributed In any form without the prior written permission of the Norwegian Shlpbrokers’ Association. Explanatory notes are available from BIMCO at www.bimco.org. Adopted by BIMCO in 1956, revised 1966, 1983, 1986/87, 1993 and 2012.
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The Sellers shall make the Vessel available for inspection at/in                (state place/range) within (state date/period).
The Buyers shall undertake the inspection without undue delay to the Vessel. Should the Buyers cause undue delay they shall compensate the Sellers for the losses thereby incurred.
The Buyers shall inspect the Vessel without opening up and without cost to the Sellers.
During the inspection, the Vessel’s deck and engine log books shall be made available for examination by the Buyers.
The sale shall become outright and definite, subject only to the terms and conditions of this Agreement, provided that the Sellers receive written notice of acceptance of the Vessel from the Buyers within seventy two (72) hours after completion of such inspection or after the date/last day of the period stated in Clause 4(b)(ii), whichever is earlier.
Should the Buyers fail to undertake the inspection as scheduled and/or notice of acceptance of the Vessel’s classification records and/or of the Vessel not be received by the Sellers as aforesaid, the Deposit together with interest earned, if any, shall be released immediately to the Buyers, whereafter this Agreement shall be null and void.
*4(a) and 4(b) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 4(a) shall apply.
5.Time and place of delivery and notices
	(a)
	The Vessel shall be delivered and taken over safely afloat at a safe and accessible berth or anchorage at/in worldwide in one safe port/anchorage or at sea in the Sellers’ option (state place/range) in the Sellers’ option. Delivery port to be free of any sales tax, duties ewhatsoever nature.

Notice of Readiness shall not be tendered before: 30th June, 2022 (date)
Cancelling Date (see Clauses 5(c), 6 (a)(i), 6 (a)(iii) and 14): 31st August, 2022
	(b)
	The Sellers shall keep the Buyers well informed of the Vessel’s itinerary and shall provide the Buyers with twenty (20), ten (10), five (5) and three (3) days’ notice of the date the Sellers intend to tender Notice of Readiness and of the intended place of delivery.

When the Vessel is at the place of delivery and physically ready for delivery in accordance with this Agreement, the Sellers shall give the Buyers a written Notice of Readiness for delivery.
	(c)
	If the Sellers anticipate that, notwithstanding the exercise of due diligence by them, the Vessel will not be ready for delivery by the Cancelling Date they may notify the Buyers in writing stating the date when they anticipate that the Vessel will be ready for delivery and proposing a new Cancelling Date. Upon receipt of such notification the Buyers shall have the option of either cancelling this Agreement in accordance with Clause 14 (Sellers’ Default) within three (3) Banking Days of receipt of the notice or of accepting the new date as the new Cancelling Date. If the Buyers have not declared their option within three (3) Banking Days of receipt of the Sellers’ notification or if the Buyers accept the new date, the date proposed in the Sellers’ notification shall be deemed to be the new Cancelling Date and shall be substituted for the Cancelling Date stipulated in Clause 5(a).

If this Agreement is maintained with the new Cancelling Date all other terms and conditions hereof Including those contained in Clauses 5(b) and 5(d) shall remain unaltered and in full force and effect.
	(d)
	Cancellation, failure to cancel or acceptance of the new Cancelling Date shall be entirely without prejudice to any claim for damages the Buyers may have under Clause 14 (Sellers’ Default) for the Vessel not being ready by the original Cancelling Date.

	(e)
	Should the Vessel become an actual, constructive or compromised total loss before delivery the Deposit together with interest earned, if any, shall be released Immediately to the Buyers whereafter this Agreement shall be null and void.

​

op
	Copyright © 2012 Norwegian Shlpbrokers’ Association. All rights reserved. Published by BIMCO. No part of this BIMCO SmartCon document may be copied, reproduced or distributed In any form without the prior written permission of the Norwegian Shlpbrokers’ Association. Explanatory notes are available from BIMCO at www.bimco.org. Adopted by BIMCO in 1956, revised 1966, 1983, 1986/87, 1993 and 2012.
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	6.
	Divers InspectIon / Drydocking

	(a)*
	(i) The Buyers shall have the option at their cost and expense to arrange for an underwater inspection by a driver approved by the Classification Society prior to the delivery of the Vessel. Such option shall be declared latest nine(9) days prior to the Vessel’s intended date of readiness for delivery as notified by the Sellers pursuant to Clause 5(b) of this Agreement. The Sellers shall at their cost and expense make the Vessel avaliable for such inspection. This inspection shall be carried out without undue delay and in the presence of a classification Soceity surveyor arranged for by the Sellers and paid for by the Buyers. The Buyer’s representative(s) shall have the right to be present at the diver’s inspection as observer(s) only without interfering with the work or decisions of the Classification Soceity surveyor. The extent of the inspection and the conditions under which it is performed shall be to the satisfaction of the Classification Soceity. If the conditions at the place of delivery are unsuitable for such inspection, the Sellers shall at their cost and expense make the Vessel available at a suitable alernative place near to the delivery port, in which event the Cancelling Date shall be extended by the additional time required for such positioning and the subsequent re-positioning. The Sellers may not tender Notice of Readiness prior to completion of the underwater inspection.

(ii) If the rudder, propeller, bottom or other underwater parts below the deepest load line are found broken; damaged or defective so as to affect the Vessels class, then (1) unless repairs can be carried out afloat to the satisfaction of the Classification Soceity, the Sellers shall arrange for the Vessel to be drydocked at their expense for inspection by the Classification Society of the Vessel’s underwater parts below the deepest load line, the extent of the inspection being in accordance with the Classification Soceity’s rules (2) such defects shall be made good by the Sellers at their cost and expense to the satisfaction of the Classification Society without condition/recommendation** and (3) the Sellers shall pay for the underwater inspection and the Classification Society’s attendance.
Notwithstanding anything to the contrary in this Agreement, if the Classification Society do not require the aforementioned defects to be rectified before the next class drydocking survey, the Sellers shall be entitled to deliver the Vessel with these defects against a deduction from the Purchase Price of the estimated direct cost (of labour and materials) of carrying out the repairs to the satisfaction of the Classification Soceity, whereafter the Buyers shall have no further rights whatsoever in respect of the defects and/or repairs. The estimated direct cost of the repairs shall be the average of quotes for the repair work obtained from two reputable independent shipyards at or in the vicinity of the port of delivery, one to be obtained by each of the Parties within two (2) Banking Days from the date of the imposition of the condition/recommendation, unless the Parties agree otherwise. Should either of the Parties fail to obtain such a quote within the stipulated time then the quote duly obtained by the other Party shall be the sole basis for the estimate of the direct repair costs. The Sellers may not tender Notice of Readiness prior to such estimate having been established.
(iii) If the Vessel is to be drydocked pursuant to Clause 6(a)(ii) and no suitable dry docking facilities are available at the port of delivery, the Sellers shall take the Vessel to a port where suitable drydocking facilities are available, whether within or outside the delivery range as per Clause 5(a). Once drydocking has taken place the Sellers shall deliver the Vessel at a port within the delivery range as per Clause 5(a) which shall, for the purpose of this Clause, become the new port of delivery. In such event the Cancelling Date shall be extended by the additional time requied for the drydocking and extra steaming, but limited to a maximum of fourteen (14) days.
	(b)*
	The Sellers shall place the Vessel in drydock at the port of delivery for inspection by the Classification Society of the Vessel’s underwater parts below the deepest load line, the extent of the inspection being in accordance with the Classification Society’s rules. If the rudder, propeller, bottom or other underwater parts below the deepest load line are found broken, damaged or defective so as to affect the Vessel’s class, such defects shall be made good at the Sellers’ cost and expense to the satisfaction of the Classification Soceity without condition/recommendation**. In such event the Sellers are also to pay for the costs and expenses in connection with putting the Vessel in and taking her out of drydock, including the drydock dues and the Classification Society’s fees. The Sellers shall also pay for these costs and expenses if parts of the tailshaft system are condemned or found defective or broken so as to affect the Vessel’s class. In all other cases, the Buyers shall pay the aforesaid costs and expenses, dues and fees.

(c)If the Vessel is drydocked pursuant to Clause 6 (a)(ii) or 6 (b) above:
(i) The Classification Soceity may require survey of the tailshaft system, the extent of the survey being to the satisfaction of the Classification surveyor. If such survey is not required by the Classification Society, the Buyers shall have the option to require the tailshaft to be drawn and surveyed by the Classification Society, the extent of the survey being in accordance with the Classification Society’s rules for tailshaft survey and consistent with
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op
	Copyright © 2012 Norwegian Shlpbrokers’ Association. All rights reserved. Published by BIMCO. No part of this BIMCO SmartCon document may be copied, reproduced or distributed In any form without the prior written permission of the Norwegian Shlpbrokers’ Association. Explanatory notes are available from BIMCO at www.bimco.org. Adopted by BIMCO in 1956, revised 1966, 1983, 1986/87, 1993 and 2012.
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the current stage of the Vessel’s survey cycle. The Buyers shall declare whether they require the tailshaft to be drawn and surrveyed not later than by the completion of the inspection by the Classification Soceity. The drawing and refitting of the tailshaft shall be arranged by the Sellers. Should any parts of the tailshaft system be condemned or found defective so as to affect the Vessel’s class, those parts shall be renewed or made good at the Sellers’ cost and expense to the satisfaction of Classification Soceity without condition/recommendation**.
(ii) The costs and expenses relating to the survey of the tailshaft system shall be borne by the Buyers unless the Classification Soceity requires such survey to be carried out or if parts of the system are condemned or found defective or broken so as to affect the Vessel’s class, in which case the Sellers shall pay these costs and expenses.
(iii) The Buyers’ representative(s) shall have the right to be present in the drydock, as observer(s) only without interfering with the work or decisions of the Classification Soceity surveyor.
(iv) The Buyers shall have the right to have the underwater parts of the Vessel cleaned and painted at their risk, cost and expense without interfering with the Sellers’ or the Classification Soceity surveyor’s work, if any, and without affecting the Vessel’s timely delivery. If, however, the Buyers’ work in drydock is still in progress when the Sellers have completed the work which the Sellers are required to do, the additional docking time needed to complete the Buyers’ work shall be for the Buyers’ risk, cost and expense. In the event that the Buyers’work requires such additional time, the Sellers may upon completion of the Sellers’ work tender Notice of Readiness for delivery whilst the Vessel is still in drydock and, notwithstanding Clause 5(a), the Buyers shall be obliged to take delivery in accordance with Clause 3 (Payment), whether the Vessel is in drylock or not.
*6 (a) and 6 (b) are alernatives; delete whichever is not applicable. In the absence of deletions, alternatives 6 (a) shall apply.
**Notes or memoranda, if any, in the surveyor’s report which are accepted by the Classification Soceity without condition/recommendation are not to be taken into account.
7.​ ​Spares, bunkers and other items7.SparesTbunlier-s-and-other items
The Seller shall deliver the Vessel to the Buyers with everything belonging to her on board and on shore. All spare parts and spare equipment including spare tail end shaft(s) and/or spare propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection used or unused, whether onboard or not shall become the Buyers’ property, but spares on order are excluded. Forwarding charges, if any, shall be for the Buyers’ account. The Sellers are not required to replace spare parts including spare tail end shaft(s) and spare propeller(s)/propeller blade(s) which are taken out of spare and used as replacement prior to delivery, but the replaced items shall be the property of the Buyers. Unused stores and provisions shall be included in the sale and be taken over by the Buyers without extra payment.
Library and forms exclusively for use in the Sellers’ vessel(s) and captain’s, officers’ and crew’s personal belongings including the slop chest are excluded from the sale without compensation, as well as the following additions items:       (include list)
Items on board which are on hire or owned by third parties, listed as follows, are excluded from the sale without compensation:        (include list)
Items on board at the time of inspection delivery which are on hire or owned by third parties, not listed above, shall remain with be replaced or procured by the Sellers prior to delivery at their cost and expense. The Buyers shall take over remaining bunkers and unused lubricating and hydraulic oils and greases in storage tanks and unopened drums and pay either:
Any remaining bunkers and unuesd lubricating and hydraulic oils and greases in storage tanks and unopened  drums and spare parts shall remain the property of the Sellers.
	(a)*
	the actual net price (excluding barging expenses) as evidenced by invoices or vouchers; or

	(b)*
	the current net market price (excluding barging expenses) at the port and date of delivery of the Vessel or, if unavailable, at the nearest bunkering port,

for the quantities taken over.
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op
	Copyright © 2012 Norwegian Shlpbrokers’ Association. All rights reserved. Published by BIMCO. No part of this BIMCO SmartCon document may be copied, reproduced or distributed In any form without the prior written permission of the Norwegian Shlpbrokers’ Association. Explanatory notes are available from BIMCO at www.bimco.org. Adopted by BIMCO in 1956, revised 1966, 1983, 1986/87, 1993 and 2012.
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Payment under this Clause shall be made at the same time and place and in the same currency as the Purchase Price.
“inspection” in this Clause  7, shall mean the Buyers’ inspection according to Clause 4(a) or 4(b) (inspection), if applicable. If the Vessel is taken over without inspection, the date of this Agreement shall be the relevant date.
*(a) and (b) are-alternatives, delete whichever is not applicable. In the absence of deletions alternative(a) shall apply.
	8.
	Documentation

The place of closing: to be mutually agreed
	(a)
	In exchange for payment of the Purchase Price the Sellers shall provide the Buyers with the following delivery documents that shall be listed in an addendum to this agreement, namely “Addendum No.1: list of delivery documents”:

(i) Legal Bill(s) of Sale in a form recordable in the Buyers’ Nominated Flag State, transferring title of the Vessel and stating that the Vessel is free from all mortgages, encumbrances and maritime liens or any other debts whatsoever, duly notarially attested and legalised or apostilled, as required by the Buyers’ Nominated Flag State;
(ii) Evidence that all necessary corporate, shareholder and other action has been taken by the Sellers to authorise the execution, delivery and performance of this Agreement;
(iii) Power of Attorney of the Sellers appointing one or more representatives to act on behalf of the Sellers in the performance of this Agreement, duly notarially attested and legalized or apostilled (as appropriate);
(iv) Certificate or Transcript of Registry issued by the competent authorities of the flag state on the date of delivery evidencing the Sellers’ ownership of the Vessel and that the Vessel is free registered encumbrances and mortgages, to be faxed or e-mailed by such authority to the closing meeting with the original to be sent to the Buyers as soon as possible after delivery of the Vessel;
(v) Declaration of Class or (depending on the Classification Society) a Class Maintenance Certificate issued within three (3) Banking Days prior to delivery confirming that the Vessel is in Class free of condition/recommendation;
(vi) Certificate of Deletion of the Vessel from the Vessel’s registry or other official evidence of deletion appropriate to the Vessel’s registry at the time of delivery, or, in the event that the registry does not as a matter of practice issue such documentation immediately, a written undertaking by the Sellers to effect deletion from the Vessel’s registry forthwith and provide a certificate or other official evidence of deletion to the Buyers promptly and latest within four (4) weeks after the Purchase Price has been paid and the Vessel has been delivered;
(vii) A copy of the Vessel’s Continous Synopsis Record certifying the date on which the Vessel ceased to be registered with the Vessel’s registry, or, in the event that the registry does not as a matter of practice issue such certificate immediately, a written undertaking from the Sellers to provide the copy of this certificate promptly upon it being issued together with evidence of submission by the Sellers of a duly executed Form 2 stating the date on which the Vessel shall cease to be registered with the Vessel’s registry;
(viii) Commercial Invoice for the Vessel;
(ix) Commercial Invoice(s) for bunkers, lubricating and hydraulic oils and greases;
(x) A copy of the Sellers’ letter to their satellite communication provider cancelling the Vessel’s communications contract which is to be sent immediately after delivery of the Vessel;
(xi) Any additional documents as may reasonably be required by the competent authorities of the Buyers’ Nominated Flag State for the purpose of registering the Vessel, provided the Buyers notify the Sellers of any such documents as soon as possible after the date of his Agreement; and
(xii) The Sellers’ letter of confirmation that to the best of their knowledge, the Vessel is not black listed by any nation or international organisation.

op
	Copyright © 2012 Norwegian Shlpbrokers’ Association. All rights reserved. Published by BIMCO. No part of this BIMCO SmartCon document may be copied, reproduced or distributed In any form without the prior written permission of the Norwegian Shlpbrokers’ Association. Explanatory notes are available from BIMCO at www.bimco.org. Adopted by BIMCO in 1956, revised 1966, 1983, 1986/87, 1993 and 2012.
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	(b)
	At the time of delivery the Buyers shall provide the Sellers with: the delivery documents that shall be listed in an addendum to this Agreement, namely "Addendum No.1:list of delivery documents".

(i) Evidence that all necessary corporate, shareholder and other action has been taken by the Buyers to authorise the execution, delivery and performance of this Agreement; and
(ii) Power of Attorney of the Buyers appointing one or more representatives to act on behalf of the Buyers in the performance of this Agreement, duly notarially attested and legalised or apostilled (as appropriate).
	(c)
	If any of the documents referred tolisted in Sub clauses (a) and (b) above are not in the English language they shall be accompanied by an English translation by an authorised translator or certified by a lawyer qualified to practice in the country of the translated language.

	(d)
	The Parties shall to the extent possible exchange copies, drafts or samples of the documents listed in sub clause (a) and Sub clause (b) above for review and comment by the other party not later than       (state number of days), or if left blank, nine (9) days prior to the Vessel’s intended date of readiness for delivery as notified by the Sellers pursuant to Clause 5(b) of this Agreement.

	(e)
	Concurrent with the exchange of documents in Sub clause (a) and Sub clause (b) above, the Sellers shall also hand to the Buyers the classification certificate(s) as well as all plans, drawings and manuals, (excluding ISM/ISPS manuals), which are on board the Vessel. Other certificates which are on board the Vessel shall also be handed over to the Buyers unless the Sellers are required to retain same, in which case the Buyers have the right to take copies.

	(f)
	Other technical documentation which may be in the Sellers’ possession shall promptly after delivery be forwarded to the Buyers at their expense, if they so request. The Sellers may keep the Vessel’s log books but the Buyers have the right to take copies of same.

	(g)
	The Parties shall sign and deliver to each other a Protocol of Delivery and Acceptance confirming the date and time of delivery of the Vessel from the Sellers to the Buyers.

	9.
	Encumbrances

The Sellers warrant that the Vessel, at the time of delivery, is free from all charters, encumbrances, mortgages and maritime liens or any other debts whatsoever, and is not subject to Port State or other administrative detentions. The Sellers hereby undertake to indemnify the Buyers against all consequences of claims made against the Vessel which have been incurred prior to the time of delivery.
	10.
	Taxes, fees and expenses

Any taxes, fees and expenses in connection with the purchase and registration in the Buyers' Nominated Flag State shall be for the Buyers' account, whereas similar charges in connection with the closing of the Sellers' register shall be for the Sellers' account.
	11.
	Condition on delivery

The Vessel with everything belonging to her shall be at the Sellers' risk and expense until she is delivered to the Buyers, but subject to the terms and conditions of this Agreement she shall be delivered and taken over as is, where ius at the delivery, notwithstanding any term or condition to the contrary in this Agreement. she was at the time of inspection, fair wear and tear excepted.
However, the Vessel shall be delivered free of cargo and free of stowaways with her Class maintained without condition/recommendation*, free of average damage affecting the Vessel’s class, and with her classification certificates and national certificates, as well as all other certificates the Vessel had at the time of inspection, valid and unextended without condition/recommendation* by the Classification Society or the relevant authorities at the time of delivery.
“Inspection” in this Clause 11, shall mean the Buyers’ inspection according to Clause 4(a) or 4(b) (Inspections), if applicable. If the Vessel is taken over without inspection, the date of this Agreement shall be the relevant date.
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op
	Copyright © 2012 Norwegian Shlpbrokers’ Association. All rights reserved. Published by BIMCO. No part of this BIMCO SmartCon document may be copied, reproduced or distributed In any form without the prior written permission of the Norwegian Shlpbrokers’ Association. Explanatory notes are available from BIMCO at www.bimco.org. Adopted by BIMCO in 1956, revised 1966, 1983, 1986/87, 1993 and 2012.
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*Notes and memoranda, if any, in the surveyor’s report which are accepted by the Classification Society without condition/recommendation are not to be taken into account.
	12.
	Name/markings

Upon delivery the Buyers undertake to change the name of the Vessel and alter funnel markings.
	13.
	Buyers’ default

Should the Deposit not be lodged in accordance with Clause 2 (Deposit), the Sellers have the right to cancel this Agreement, and they shall be entitled to claim compensation for their losses and for all expenses incurred together with interest.
Should the Purchase Price not be paid in accordance with Clause 3 (Payment), the Sellers have the right to cancel this Agreement and, in which case the Deposit together with interest earned, if any, shall be released to the Sellers. If the Deposit does not cover their loss, the Sellers shall be entitled to claim further compensation for their losses and for all expenses incurred together with interest.
	14.
	Sellers' default

Should the Sellers fail to give Notice of Readiness in accordance with Clause 5(b) or fail to be ready to validly complete a legal transfer by the Cancelling Date the Buyers shall have the option of cancelling this Agreement. If after Notice of Readiness has been given but before the Buyers have taken delivery, the Vessel ceases to be physically ready for delivery and is not made physically ready again by the Cancelling Date and new Notice of Readiness given, the Buyers shall retain their option to cancel. In the event that the Buyers elect to cancel this Agreement, the Deposit together with interest earned, if any, shall be released to them immediately.
Should the Sellers fail to give Notice of Readiness by the Cancelling Date or fail to be ready to validly complete a legal transfer as aforesaid they shall make due compensation to the Buyers for their loss and for all expenses together with interest if their failure is due to proven negligence and whether or not the Buyers cancel this Agreement.
	15.
	Buyers’ representatives

After this Agreement has been signed by the Parties and the Deposit has been lodged, the Buyers have the right to place two (2) representatives on board the Vessel at their sole risk and expense.
These representatives are on board for the purpose of familiarisation and in the capacity of observers only, and they shall not interfere in any respect with the operation of the Vessel. The Buyers and the Buyers’ representatives shall sign the Sellers’ P&I Club’s standard letter of indemnity prior to their embarkation.
	16.
	Law and Arbitration

	(a)*
	This Agreement shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Agreement shall be referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause.

The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the arbitration proceedings are commenced.
The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its own arbitrator within fourteen (14) calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has done so within the fourteen (14) days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within the fourteen (14) days specified, the party referring a dispute to arbitration may, without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both Parties as if the sole arbitrator had been appointed by agreement.
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op
	Copyright © 2012 Norwegian Shlpbrokers’ Association. All rights reserved. Published by BIMCO. No part of this BIMCO SmartCon document may be copied, reproduced or distributed In any form without the prior written permission of the Norwegian Shlpbrokers’ Association. Explanatory notes are available from BIMCO at www.bimco.org. Adopted by BIMCO in 1956, revised 1966, 1983, 1986/87, 1993 and 2012.
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In cases where neither the claim nor any counterclaim exceeds the sum of US$100,000 the arbitration shall be conducted In accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.
	(b)*
	This Agreement shall be governed by and construed in accordance with Title 9 of the United States Code and the substantive law (not including the choice of law rules) of the State of New York and any dispute arising out of or in connection with this Agreement shall be referred to three (3) persons at New York, one to be appointed by each of the parties hereto, and the third by the two so chosen; their decision or that of any two of them shall be final, and for the purposes of enforcing any award, judgment may be entered on an award by any court of competent jurisdiction. The proceedings shall be conducted in accordance with the rules of the Society of Maritime Arbitrators, Inc.

In cases where neither the claim nor any counterclaim exceeds the sum of US$100,000 the arbitration shall be conducted in accordance with the Shortened Arbitration Procedure of the Society of Maritime Arbitrators, Inc.
	(c)
	This Agreement shall be governed by and construed in accordance with the laws of (state place) and any dispute arising out of or in connection with this Agreement shall be referred to arbitration at (state place), subject to the procedures applicable there.

*16(a), 16(b) and 16(c) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 16(a) shall apply.
	17.
	Notices

All notices to be provided under this Agreement shall be in writing.
Contact details for recipients of notices are as follows:
For the Buyers: FOUR LAND (PANAMA) S.A., Panama,   : 31st Street, No.3-80, P.O.Box 7412, Panama City, Panama, c/o DounKisen Co., Ltd, 1307-8 Koh Goh Namikata-cho, Imabari-city, Ehime Pref, Japan
Att: Takeomi Yagi /Tel +81-898-41-7733, Fax: +81-898-41-6011, E-mail: sale-purchase@doun.co.ip
For the Sellers: Øystein Emberland, Chief Financial Officer (CFO) / Knutsen NYK Offshore Tankers AS Smedasundet 40, P.O.Box 2017, 5504 Haugesund, Norway, Tel: +47 52 70 40 13, Cel: +47 95 20 05 14, E-mail: oem@knotgroup.com
	18.
	Entire Agreement

The written terms of this Agreement comprise the entire agreement between the Buyers and the Sellers in relation to the sale and purchase of the Vessel and supersede all previous agreements whether oral or written between the Parties in relation thereto.
Each of the Parties acknowledges that in entering into this Agreement it has not relied on and shall have no right or remedy in respect of any statement, representation, assurance or warranty (whether or not made negligently) other than as is expressly set out in this Agreement.
Any terms implied into this Agreement by any applicable statute or law are hereby excluded to the extent that such exclusion can legally be made. Nothing in this Clause shall limit or exclude any liability for fraud.
	19.
	Confidentially

This Agreement and all details contained therein are to be kept strictly private and confidential by the Parties.
	20.
	This Agreement is subiect to the parties entering into a quiet enjoyment agreement (the "QEL") on the same terms and conditions as the quiet enjoyment agreement entered into in relation to the vessel named "Raquel Knutsen" with IMO no 9685396 with only logical adjustments being made therefrom and the Barecon 2001 on terms to be agreed. The Barecon 2001 for the Chartering back of the Vessel and the QEL shall form an integral part of this Agreement. Should the parties for any reason whatsoever not enter into the Barecon 2001 or the QEL, or if the said Barecon2001 or QEL does not become effective or become null and void prior to delivery of the Vessel, this Agreement shall terminate and

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op
	Copyright © 2012 Norwegian Shlpbrokers’ Association. All rights reserved. Published by BIMCO. No part of this BIMCO SmartCon document may be copied, reproduced or distributed In any form without the prior written permission of the Norwegian Shlpbrokers’ Association. Explanatory notes are available from BIMCO at www.bimco.org. Adopted by BIMCO in 1956, revised 1966, 1983, 1986/87, 1993 and 2012.
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become null and void and neither party shall have any claims of whatsoever nature against the other in respect of this Agreement or otherwise.
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	For and on behalf of the Sellers
	    
	For and on behalf of the Buyers

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	/s/ Yuji Tsuboi
	​
	/s/ Genji Ohkouchi

	Name:
	Yuji Tsuboi
	​
	Name:
	Genji Ohkouchi

	Title:
	Attorney-in-fact
	​
	Title:
	President

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op
	Copyright © 2012 Norwegian Shlpbrokers’ Association. All rights reserved. Published by BIMCO. No part of this BIMCO SmartCon document may be copied, reproduced or distributed In any form without the prior written permission of the Norwegian Shlpbrokers’ Association. Explanatory notes are available from BIMCO at www.bimco.org. Adopted by BIMCO in 1956, revised 1966, 1983, 1986/87, 1993 and 2012.
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