Document:

EX-10.2

 Exhibit 10.2 

 
  
 FORM OF OMNIBUS AGREEMENT 
 AMONG 

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

 KNOT OFFSHORE PARTNERS UK LLC 
 AND 
 KNOT SHUTTLE TANKERS AS 

 
  

 TABLE OF CONTENTS 

 

							
		 	ARTICLE I	  			
		 	DEFINITIONS	  			
			
	 Section 1.1
	 	 Definitions
	  	 	2	  
			
		 	ARTICLE II	  			
		 	FIVE-YEAR VESSEL RESTRICTED BUSINESS OPPORTUNITIES	  			
			
	 Section 2.1
	 	 Five-Year Vessel Restricted Businesses
	  	 	8	  
	 Section 2.2
	 	 Permitted Exceptions
	  	 	8	  
			
		 	ARTICLE III	  			
		 	NON-FIVE-YEAR VESSEL RESTRICTED BUSINESS OPPORTUNITIES	  			
			
	 Section 3.1
	 	 Non-Five-Year Vessel Restricted Businesses
	  	 	10	  
	 Section 3.2
	 	 Permitted Exceptions
	  	 	10	  
			
		 	ARTICLE IV	  			
		 	BUSINESS OPPORTUNITIES PROCEDURES	  			
			
	 Section 4.1
	 	 Procedures
	  	 	11	  
	 Section 4.2
	 	 Scope of Prohibition
	  	 	13	  
	 Section 4.3
	 	 Enforcement
	  	 	13	  
			
		 	ARTICLE V	  			
		 	RIGHTS OF FIRST OFFER	  			
			
	 Section 5.1
	 	 Rights of First Offer
	  	 	14	  
	 Section 5.2
	 	 Procedures for Rights of First Offer
	  	 	14	  
			
		 	ARTICLE VI	  			
		 	CARMEN KNUTSEN INTERESTS PURCHASE OPTION	  			
			
	 Section 6.1
	 	 Option to Purchase the Carmen Knutsen Interests
	  	 	13	  
	 Section 6.2
	 	 Procedures
	  	 	13	  
			
		 	ARTICLE VII	  			
		 	HULL 574 INTERESTS PURCHASE OPTION	  			
			
	 Section 7.1
	 	 Option to Purchase the Hull 574 Interests
	  	 	17	  
	 Section 7.2
	 	 Procedures
	  	 	18	  
			
		 	ARTICLE VIII	  			
		 	HULL 2531 INTERESTS PURCHASE OPTION	  			
			
	 Section 8.1
	 	 Option to Purchase the Hull 2531 Interests
	  	 	20	  
	 Section 8.2
	 	 Procedures
	  	 	20	  
			
		 	ARTICLE IX	  			
		 	HULL 2532 INTERESTS PURCHASE OPTION	  			
			
	 Section 9.1
	 	 Option to Purchase the Hull 2532 Interests
	  	 	22	  
	 Section 9.2
	 	 Procedures
	  	 	22	  

  
 i 

							
		 	ARTICLE X	  			
		 	HULL 2575 INTERESTS PURCHASE OPTION	  			
			
	 Section 10.1
	 	 Option to Purchase Hull 2575 Interests
	  	 	24	  
	 Section 10.2
	 	 Procedures
	  	 	25	  
			
		 	ARTICLE XI	  			
		 	GUARANTEES BY KNOT	  			
			
	 Section 11.1
	 	 Guarantee Relating to the Bodil Knutsen
	  	 	27	  
	 Section 11.2
	 	 Guarantee Relating to the Windsor Knutsen
	  	 	27	  
			
		 	ARTICLE XII	  			
		 	KNOT OPTION TO PURCHASE KNUTSEN SHUTTLE TANKERS 19 INTERESTS	  			
			
	 Section 12.1
	 	 Exercise of KNOT Option to Purchase Knutsen Shuttle Tankers 19 Interests
	  	 	28	  
			
		 	ARTICLE XIII	  			
		 	INDEMNIFICATION	  			
			
	 Section 13.1
	 	 KNOT Indemnification
	  	 	28	  
	 Section 13.2
	 	 Limitation Regarding Indemnification
	  	 	28	  
	 Section 13.3
	 	 Indemnification Procedures
	  	 	29	  
			
		 	ARTICLE XIV	  			
		 	MISCELLANEOUS	  			
			
	 Section 14.1
	 	 Choice of Law; Submission To Jurisdiction
	  	 	30	  
	 Section 14.2
	 	 Notice
	  	 	30	  
	 Section 14.3
	 	 Entire Agreement
	  	 	30	  
	 Section 14.4
	 	 Termination
	  	 	30	  
	 Section 14.5
	 	 Waiver; Effect of Waiver or Consent
	  	 	31	  

 

  
 ii 

							
	 Section 14.6
	 	 Amendment or Modification
	  	 	31	  
	 Section 14.7
	 	 Assignment
	  	 	31	  
	 Section 14.8
	 	 Counterparts
	  	 	32	  
	 Section 14.9
	 	 Severability
	  	 	32	  
	 Section 14.10
	 	 Gender, Parts, Articles and Sections
	  	 	32	  
	 Section 14.11
	 	 Further Assurances
	  	 	32	  
	 Section 14.12
	 	 Withholding or Granting of Consent
	  	 	32	  
	 Section 14.13
	 	 Laws and Regulations
	  	 	32	  
	 Section 14.14
	 	 Negotiation of Rights of KNOT, Limited Partners, Assignees and Third Parties
	  	 	32	  

  
 iii

 FORM OF OMNIBUS AGREEMENT 

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

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

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

  
 1 

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

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

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

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

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

“Bodil Knutsen” means the shuttle tanker built in 2011 that is currently operating under the
Bodil Knutsen Charter. 
 “Bodil Knutsen Charter” means the time charter agreement,
Statoiltime 1, dated as of November 2, 2009, between Knutsen Bøyelaster VI KS, Organization number 971 585 579, and Statoil, relating to the Bodil Knutsen. 

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

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

  
 2 

 “Change of Control” means, with respect to any
Person (the “Applicable Person”), any of the following events: (a) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the Applicable
Person’s assets to any other Person, unless immediately following such sale, lease, exchange or other transfer such assets are owned, directly or indirectly, by the Applicable Person; (b) the consolidation or merger of the Applicable
Person with or into another Person pursuant to a transaction in which the outstanding Voting Securities of the Applicable Person are changed into or exchanged for cash, securities or other property, other than any such transaction where (i) the
outstanding Voting Securities of the Applicable Person are changed into or exchanged for Voting Securities of the surviving Person or its parent and (ii) the holders of the Voting Securities of the Applicable Person immediately prior to such
transaction own, directly or indirectly, not less than a majority of the outstanding Voting Securities of the surviving Person or its parent immediately after such transaction; and (c) a “person” or
“group” (within the meaning of Sections 13(d) or 14(d)(2) of the Exchange Act), other than KNOT or its Affiliates with respect to the General Partner, being or becoming the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than 50% of all of the then outstanding Voting Securities of the Applicable Person, except in a merger or consolidation which would not constitute a Change of Control under
clause (b) above. 
 “Closing Date” means
            , 2013, the date of the closing of the initial public offering of common units representing limited partner interests in the MLP. 

“Conflicts Committee” means the Conflicts Committee of the Board. 

“Contribution Assets” has the meaning given such term in Section 13.1. 

“Cosco” means Cosco (Zhoushan Shipyard Co., Ltd.), which is building the newbuild
the Hull 574. 
 “Covered Environmental Losses” means all Losses suffered or
incurred by the Partnership Group by reason of, arising out of or resulting from: 
 (a) any
violation or correction of violation of Environmental Laws; or 
 (b) any event or condition
relating to environmental or human health and safety matters, in each case, associated with the ownership or operation by the Partnership Group or the KNOT Entities of the Contribution Assets (including, without limitation, the presence of Hazardous
Substances on, under, about or migrating to or from the Contribution Assets or the disposal or release of, or exposure to, Hazardous Substances generated by or otherwise related to operation of the Contribution Assets), including, without
limitation, the reasonable and documented cost and expense of (i) any investigation, assessment, evaluation, monitoring, containment, cleanup, repair, restoration, remediation or other corrective action required or necessary under Environmental
Laws, (ii) the preparation and implementation of any closure, remedial, corrective action or other plans required or necessary under Environmental Laws and (iii) any environmental 

  
 3 

 
or toxic tort (including, without limitation, personal injury or property damage claims) pre-trial, trial or appellate legal or litigation support work; 

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

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

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

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

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

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

“Hull 2532” means the shuttle tanker being built by HHI that is scheduled for delivery in
the third quarter of 2013. 

  
 4 

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

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

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

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

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

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

  
 5 

 “Offer” has the meaning given such term in
Section 4.1. 
 “Offered Assets” has the meaning given such term in
Section 4.1. 
 “Offeree” has the meaning given such term in
Section 4.1. 
 “Offer Period” has the meaning given such term in
Section 4.1(b)(i). 
 “Parties” means the parties to this Agreement and
their successors and permitted assigns. 
 “Partnership Entities” means the General
Partner, the MLP and any Person controlled by the General Partner or the MLP. 
 “Partnership
Group” means the MLP and any Person controlled by the MLP. 
 “Partnership Group
Member” means any Person in the Partnership Group. 
 “Partnership Potential
Transferee” has the meaning given such term in Section 5.2(a). 

“Partnership Sale Assets” has the meaning given such term in Section 5.2(a).

 “Partnership Transfer Notice” has the meaning given such term in
Section 5.2(a). 
 “Partnership Transferring Party” has the meaning given
such term in Section 5.2(a). 
 “Person” means an individual, corporation,
partnership, joint venture, trust, limited liability company, unincorporated organization or any other entity. 

“Potential Transferee” has the meaning given such term in Section 5.2(b).

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

“Transfer” means any transfer, assignment, sale or other disposition of any Non-Five-Year Vessel
by a KNOT Entity or of any Five-Year Vessel or Non-Five-Year 

  
 6 

 
Vessel by a Partnership Group Member; provided, however, that such term shall not include: (a) transfers, assignments, sales or other dispositions from a KNOT Entity to another
KNOT Entity, or from a Partnership Group Member to another Partnership Group Member; (b) transfers, assignments, sales or other dispositions pursuant to the terms of any related charter or other agreement with a charter party;
(c) transfers, assignments, sales or other dispositions pursuant to Articles II or III of this Agreement; or (d) grants of security interests in or mortgages or liens on such Five-Year Vessels or Non-Five-Year Vessels in
favor of a bona fide third party lender (but not the foreclosing of any such security interest, mortgage or lien). 
 “Transfer Notice” has the meaning given such term in Section 5.2(b). 
 “Transferring Party” has the meaning given such term in Section 5.2(b). 
 “Voting Securities” means securities of any class of Person entitling the holders thereof to vote in the election of members of the board of directors or other similar governing
body of the Person. 
 “Windsor Knutsen” means the vessel built in 2007 and retrofitted
from a conventional crude oil tanker to a shuttle tanker in 2001, and that is currently operating under the Windsor Knutsen Charter. 
 “Windsor Knutsen Charter” means the Time Charter of Windsor Knutsen, dated as of April 6, 2010, between Knutsen OAS and Brazil Shipping, relating to the Windsor Knutsen.

 ARTICLE II 
 FIVE-YEAR VESSEL RESTRICTED BUSINESS OPPORTUNITIES 

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

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

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

  
 7 

 (d) acquiring one or more Five-Year Vessels as part of the acquisition of a
controlling interest in a business or package of assets and owning, operating or chartering such Five-Year Vessel(s); provided, however, that: 

(i) if less than a majority of the value of the business or assets acquired is attributable to Five-Year
Vessels, as determined in good faith by KNOT’s board of directors, the KNOT Entity must offer to sell such Five-Year Vessel(s) to the MLP for their fair market value plus any Break-up Costs in accordance with the procedures set forth in
Section 4.1; and 
 (ii) if a majority or more of the value of
the business or assets acquired is attributable to Five-Year Vessels, as determined in good faith by KNOT’s board of directors, KNOT shall notify the MLP of the proposed acquisition in writing. The MLP shall, not later than the 30th calendar day following receipt of such notice, notify KNOT if it or
any other Partnership Group Member wishes to acquire any Five-Year Vessel forming part of that business or package of assets in cooperation and simultaneously with the KNOT Entity acquiring the Non-Five-Year Vessels forming part of that business or
package of assets. If the MLP does not notify KNOT of its intent to pursue the acquisition within such 30 calendar days, the KNOT Entity may proceed with the acquisition and then offer to sell such vessels to the MLP as provided in
subsection (i) above; 
 (e) acquiring up to a 9.9% equity ownership, voting or profit participation
interest in any company, business or pool of assets; 
 (f) acquiring, owning, operating or chartering any
Five-Year Vessel if the MLP does not fulfill its obligation to purchase such Five-Year Vessel in accordance with the terms of any existing or future agreement; 
 (g) acquiring, owning, operating or chartering any Five-Year Vessel that is subject to an offer to purchase by a Partnership Group Member as described in paragraphs (b), (c) and
(d) above, in each case pending the offer of such Five-Year Vessel to the MLP and the MLP’s determination pursuant to Section 4.1 whether to purchase the Five-Year Vessel and, if the MLP has determined to purchase or to
cause any Partnership Group Member to purchase such Five-Year Vessel, pending the closing of such purchase; 

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

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

  
 8 

 ARTICLE III 

NON-FIVE-YEAR VESSEL RESTRICTED BUSINESS OPPORTUNITIES 

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

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

(d) acquiring, owning, operating or chartering Non-Five-Year Vessels if KNOT has previously advised the MLP that it
consents to such acquisition, ownership, operation or charter. 

  
 9 

 ARTICLE IV 

BUSINESS OPPORTUNITIES PROCEDURES 
 Section 4.1 Procedures. In the event that (a) a Partnership Group Member acquires, operates or puts under charter Non-Five-Year Vessels in accordance with Section 3.2(b)(i),
or (b) a KNOT Entity acquires, operates or puts under charter Five-Year Vessels in accordance with Section 2.2(b), (c) or (d)(i), then simultaneously or in any event not later than 30 calendar days after the
consummation of the acquisition or the commencement of operations or charter, such acquiring Party (the “Acquiring Party”) shall notify (i) KNOT, in the case of an acquisition by a Partnership Group Member or
(ii) the Board, in the case of an acquisition by a KNOT Entity, and offer such party to be notified (each an “Offeree”) the opportunity for any KNOT Entity or Partnership Group Member, as applicable, to purchase such
Non-Five-Year Vessels or Five-Year Vessels, as applicable (the “Offered Assets”), for their fair market value (or, in the case of an acquisition in accordance with Section 2.2(b), the acquisition price) plus, in
the case of an acquisition in accordance with Sections 2.2(b), 2.2(d)(i) or 3.2(b)(i), any applicable Break-up Costs, in each case on commercially reasonable terms in accordance with this Section 4.1 (the
“Offer”). The Offer shall set forth the Acquiring Party’s proposed terms relating to the purchase of the Offered Assets by the applicable KNOT Entity or Partnership Group Member, including any liabilities to be assumed
by the applicable KNOT Entity or Partnership Group Member as part of the Offer. As soon as practicable after the Offer is made, the Acquiring Party will deliver to the Offeree all information prepared by or on behalf of or in the possession of such
Acquiring Party relating to the Offered Assets and reasonably requested by the Offeree. As soon as practicable, but in any event, within 30 calendar days after receipt of the Offer, the Offeree shall notify the Acquiring Party in writing that
either: 
 (a) KNOT has elected not to purchase (or not to cause any of its permitted Affiliates to purchase) or
the Board has elected not to cause any Partnership Group Member to purchase, as applicable, such Offered Assets, in which event the Acquiring Party and its Affiliates shall, subject to the other terms of this Agreement (including
Section 2.2(b)), be forever free, subject to the provisions of this Agreement, to continue to own, operate and charter such Offered Assets; or 
 (b) KNOT has elected to purchase (or to cause any of its permitted Affiliates to purchase) or the Board has elected to cause any Partnership Group Member to purchase, as applicable, such Offered Assets,
in which event the following procedures shall be followed: 
 (i) After the receipt of the Offer
by the Offeree, the Acquiring Party and the Offeree shall negotiate in good faith regarding the fair market value (and any applicable Break-up Costs) of the Offered Assets that are subject to the Offer and the other terms of the Offer on which the
Offered Assets will be sold to the applicable KNOT Entity or Partnership Group Member. If the Acquiring Party and the Offeree agree on the fair market value (and any applicable Break-up Costs) of the Offered Assets that are subject to the Offer and
the other terms of the Offer during the 30-day period (the “Offer Period”) after receipt by the Acquiring Party of KNOT’s election to purchase (or election to cause any of its permitted Affiliates to purchase) or of the
Board’s election to cause any 

  
 10 

 
Partnership Group Member to purchase, as applicable, the Offered Assets, KNOT shall purchase (or cause any of its permitted Affiliates to purchase) or the Board shall cause any Partnership Group
Member to purchase, as applicable, the Offered Assets on such terms as soon as commercially practicable after such agreement has been reached. 
 (ii) If the Acquiring Party and the Offeree are unable to agree on the fair market value (and any applicable Break-up Costs) of the Offered Assets that are subject to the Offer or on any other terms of
the Offer during the Offer Period, the Acquiring Party and the Offeree will engage a mutually-agreed-upon investment banking firm, ship broker or other expert advisor prior to the end of the Offer Period to determine the fair market value of the
Offered Assets and/or the other terms on which the Acquiring Party and the Offeree are unable to agree. In determining the fair market value of the Offered Assets and other terms on which the Offered Assets are to be sold, the investment banking
firm, ship broker or other expert advisor, as applicable, will have access to the proposed sale and purchase values and terms for the Offer submitted by the Acquiring Party and the Offeree, respectively, and to all information prepared by or on
behalf of the Acquiring Party relating to the Offered Assets and reasonably requested by such investment banking firm, ship broker or other expert advisor. Such investment banking firm, ship broker or other expert advisor will determine the fair
market value (and any applicable Break-up Costs) of the Offered Assets and/or the other terms on which the Acquiring Party and the Offeree are unable to agree within 30 calendar days of its engagement and furnish the Acquiring Party and the
Offeree its determination. The fees and expenses of the investment banking firm, ship broker or other expert advisor, as applicable, will be divided equally between the Acquiring Party and the Offeree. Upon receipt of such determination, the Offeree
will have the option, but not the obligation: 
 (A) in the case that the Offeree is KNOT, to
purchase or cause any of its permitted Affiliates to purchase, or in the case that the Offeree is the Board, to cause any Partnership Group Member to purchase the Offered Assets for the fair market value (and any applicable Break-up Costs), and on
the other terms determined by the ship broker or investment banking firm, as soon as commercially practicable after determinations have been made; or 

(B) in the case that the Offeree is KNOT, to elect not to cause any of its permitted Affiliates to
purchase, or in the case that the Offeree is the Board, not to cause any Partnership Group Member to purchase such Offered Assets, in which event the Acquiring Party and its Affiliates shall, subject to the other terms of this Agreement, be forever
free to continue to own and operate such Offered Assets. 

  
 11 

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

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

ARTICLE V 
 RIGHTS OF FIRST OFFER 
 Section 5.1 Rights of First
Offer. 
 (a) The Partnership Group hereby grants KNOT a right of first offer on any proposed Transfer by any Partnership
Group Member of any Five-Year Vessels or any Non-Five-Year Vessels owned or acquired by any Partnership Group Member. 
 (b) The
KNOT Entities hereby grant the MLP a right of first offer on any proposed Transfer of any Five-Year Vessels owned or acquired by any KNOT Entity. 
 (c) The Parties acknowledge that all potential Transfers of Five-Year Vessels or Non-Five-Year Vessels pursuant to this Article V are subject to obtaining any and all written consents of
governmental authorities and other non-affiliated third parties and to the terms of all existing agreements in respect of such Five-Year Vessels or Non-Five-Year Vessels, as applicable. 

Section 5.2 Procedures for Rights of First Offer. 

(a) In the event that a Partnership Group Member (a “Partnership Transferring Party”) proposes to Transfer any
Non-Five-Year Vessels (the “Partnership Sale Assets”), prior to engaging in any negotiation for such Transfer with any non-affiliated third party or otherwise offering to Transfer the Partnership Sale Assets to any
non-affiliated third party, such Partnership Transferring Party shall give KNOT (a “Partnership Potential Transferee”), written notice setting forth all material terms and conditions (including, without limitation, the
purchase price or the terms of the charter agreement and a description of the Partnership Sale Asset(s) on which such Partnership Transferring Party desires to Transfer the Partnership Sale Assets) (a “Partnership Transfer
Notice”). 

  
 12 

 (b) In the event that a KNOT Entity (a “KNOT Transferring
Party” and, together with a Partnership Transferring Party, a “Transferring Party”) proposes to Transfer any Five-Year Vessels (the “KNOT Sale Assets” and, together with the Partnership
Sale Assets, the “Sale Assets”), prior to engaging in any negotiation for such Transfer with any non-affiliated third party or otherwise offering to Transfer the KNOT Sale Assets to any non-affiliated third party, such KNOT
Transferring Party shall give the MLP (a “KNOT Potential Transferee” and, together with a Partnership Potential Transferee, a “Potential Transferee”), written notice setting forth all material terms
and conditions (including, without limitation, the purchase price or the terms of the charter agreement and a description of the KNOT Sale Asset(s) on which such KNOT Transferring Party desires to Transfer the KNOT Sale Assets) (a “KNOT
Transfer Notice” and, together with a Partnership Transfer Notice, each a “Transfer Notice”). 
 (c) After delivery of a Transfer Notice, the Transferring Party then shall be obligated to negotiate in good faith for a 30-day period following the delivery by the Transferring Party of the Transfer
Notice (the “First Offer Negotiation Period”) to reach an agreement for the Transfer of such Sale Assets to the Potential Transferee or any of its Affiliates on the terms and conditions set forth in the Transfer Notice. If no
such agreement with respect to the Sale Assets is reached during the First Offer Negotiation Period, and the Transferring Party has not Transferred, or agreed in writing to Transfer, such Sale Assets to a third party within 180 calendar days
after the end of the First Offer Negotiation Period on terms generally no less favorable to the Transferring Party than those included in the Transfer Notice, then the Transferring Party shall not thereafter Transfer any of the Sale Assets without
first offering such assets to the applicable Potential Transferee in the manner provided above. 
 ARTICLE VI

 CARMEN KNUTSEN INTERESTS PURCHASE OPTION 

Section 6.1 Option to Purchase the Carmen Knutsen Interests. 

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

Section 6.2 Procedures. 

(a) If a Partnership Group Member decides to exercise the option to purchase the Carmen Knutsen Interests, it will
provide, within 24 months of the Closing Date, written notice to KNOT of such exercise, the fair market value it proposes to pay for the Carmen 

  
 13 

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

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

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

  
 14 

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

(v) the Partnership Group Member will have the right to terminate its obligation to purchase the Carmen
Knutsen under this Article VI and the related purchase and sale agreement if the results of any searches, surveys, tests or inspections conducted pursuant to paragraph (iv) above are, in the reasonable opinion of the
Partnership Group, unsatisfactory; and 
 (vi) neither KNOT nor the applicable Partnership Group
Member shall have any obligation to sell or buy the Carmen Knutsen if any of the consents referred to in Section 6.1(b) above have not been obtained. 

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

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

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

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

(b) If a Partnership Group Member decides to exercise the option to purchase the Hull 574 Interests, it will
provide, within 24 months of receipt of notice pursuant to Section 7.2(a), written notice to KNOT of such exercise, the fair market value it proposes to pay for the Hull 574 Interests, and the other material terms of the purchase. The
decision to purchase the Hull 574 Interests, the fair market value to be paid for the Hull 574 Interests, and the other terms of the purchase shall be approved by the Conflicts Committee. If the Partnership Group Member and KNOT are unable
to agree on the fair market value of the Hull 574 Interests and/or the other material terms, the Partnership Group Member and KNOT shall engage a mutually-agreed-upon investment banking firm, ship broker or other expert advisor to determine the
fair market value of the Hull 574 Interests and/or the other material terms on which the Partnership Group Member and KNOT are unable to agree. In determining the fair market value of the Hull 574 Interests and/or the other material terms
on which the Hull 574 Interests are to be sold, the investment banking firm, ship broker or other expert advisor, as applicable, will have access to the proposed sale and purchase values and terms for the offer submitted by the Partnership
Group Member and KNOT, respectively, and to all information prepared by or on behalf of the Partnership Group Member and KNOT with respect to the Hull 574 Interests and reasonably requested by such investment banking firm, ship broker or other
expert advisor. Such investment banking firm, ship broker or other expert advisor will determine the fair market value of the Hull 574 Interests and/or the other terms on which the Partnership Group Member and KNOT are unable to agree within
30 calendar days of its engagement and furnish the Partnership Group Member and KNOT its determination. The fees and expenses of the investment banking firm, ship broker or other expert advisor, as applicable, will be divided equally between
the Partnership Group Member and KNOT. Upon receipt of such determination, the Partnership Group Member will have the option, but not the obligation in to purchase the Hull 574 Interests for the fair market value and on the other terms
determined by the investment banking firm, ship broker or other expert advisor, as soon as commercially practicable after determinations have been made. 
 (c) If a Partnership Group Member chooses to exercise its option to purchase the Hull 574 Interests under Section 7.2(b), the applicable parties shall enter into a purchase and sale agreement
for the purchase and sale of the Hull 574 Interests pursuant to which KNOT shall be obligated to sell the Hull 574 Interests to the Partnership Group Member and the Partnership Group Member shall be obligated to purchase the Hull 574
Interests from KNOT. The terms of the purchase and sale agreement will include the following: 

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

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

(iv) KNOT will grant to the Partnership Group Member the right, exercisable at the Partnership Group
Member’s risk and expense, to make such surveys, tests and inspections of the Hull 574 as the Partnership Group Member may deem desirable, so long as such surveys, tests or inspections do not damage the Hull 574 or interfere with the
activities of the KNOT Entities or Repsol Sinopec thereon and so long as the Partnership Group Member has furnished KNOT with evidence that adequate liability insurance is in full force and effect; 

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

 Section 8.1 Option to Purchase the Hull 2531 Interests. 

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

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

Section 8.2 Procedures. 

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

  
 15 

 (b) If a Partnership Group Member decides to exercise the option to purchase
the Hull 2531 Interests, it will provide, within 24 months of receipt of notice pursuant to Section 8.2(a), written notice to KNOT of such exercise, the fair market value it proposes to pay for the Hull 2531 Interests, and the
other material terms of the purchase. The decision to purchase the Hull 2531 Interests, the fair market value to be paid for the Hull 2531 Interests, and the other terms of the purchase shall be approved by the Conflicts Committee. If the
Partnership Group Member and KNOT are unable to agree on the fair market value of the Hull 2531 Interests and/or the other material terms, the Partnership Group Member and KNOT shall engage a mutually-agreed-upon investment banking firm, ship
broker or other expert advisor to determine the fair market value of the Hull 2531 Interests and/or the other material terms on which the Partnership Group Member and KNOT are unable to agree. In determining the fair market value of the
Hull 2531 Interests and/or the other material terms on which the Hull 2531 Interests are to be sold, the investment banking firm, ship broker or other expert advisor, as applicable, will have access to the proposed sale and purchase values
and terms for the offer submitted by the Partnership Group Member and KNOT, respectively, and to all information prepared by or on behalf of the Partnership Group Member and KNOT with respect to the Hull 2531 Interests and reasonably requested
by such investment banking firm, ship broker or other expert advisor. Such investment banking firm, ship broker or other expert advisor will determine the fair market value of the Hull 2531 Interests and/or the other terms on which the
Partnership Group Member and KNOT are unable to agree within 30 calendar days of its engagement and furnish the Partnership Group Member and KNOT its determination. The fees and expenses of the investment banking firm, ship broker or other
expert advisor, as applicable, will be divided equally between the Partnership Group Member and KNOT. Upon receipt of such determination, the Partnership Group Member will have the option, but not the obligation in to purchase the Hull 2531
Interests for the fair market value and on the other terms determined by the investment banking firm, ship broker or other expert advisor, as soon as commercially practicable after determinations have been made. 

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

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

(ii) the Partnership Group will be entitled to the benefit of the indemnification contained in Article
XIII of this Agreement for the remaining term of such indemnification with respect to events or conditions associated with the operation of the Hull 2531 and occurring before the date of acquisition of the

  
 16 

 
Hull 2531 Interests by the Partnership Group Member; provided, however, that the remaining term of any such indemnification with respect to the Hull 2531 shall be deemed
to be not less than three years from the closing date of the acquisition of the Hull 2531 Interests by the Partnership Group Member; 
 (iii) KNOT will provide customary representations and warranties with respect to title to the Hull 2531 Interests and any other such matters as the Partnership Group Member may approve, which
approval will not be unreasonably withheld; 
 (iv) KNOT will grant to the Partnership Group
Member the right, exercisable at the Partnership Group Member’s risk and expense, to make such surveys, tests and inspections of the Hull 2531 as the Partnership Group Member may deem desirable, so long as such surveys, tests or
inspections do not damage the Hull 2531 or interfere with the activities of the KNOT Entities or Eni thereon and so long as the Partnership Group Member has furnished KNOT with evidence that adequate liability insurance is in full force and
effect; 
 (v) the Partnership Group Member will have the right to terminate its obligation to
purchase the Hull 2531 under this Article VIII and the related purchase and sale agreement if the results of any searches, surveys, tests or inspections conducted pursuant to paragraph (iii) above are, in the reasonable
opinion of the Partnership Group, unsatisfactory; and 
 (vi) neither KNOT nor the applicable
Partnership Group Member shall have any obligation to sell or buy the Hull 2531 if any of the consents referred to in Section 8.1(b) above have not been obtained. 

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

  
 17 

 
covenants and agrees to use its reasonable efforts to obtain any such consents required to be obtained by it in connection with the transfer of the Hull 2532 Interests pursuant to this
Article IX. 
 Section 9.2 Procedures. 

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

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

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

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

  
 18 

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

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

  
 19 

 ARTICLE X 
 HULL 2575 INTERESTS PURCHASE OPTION 

Section 10.1 Option to Purchase the Hull 2575 Interests. 

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

(b) The Parties acknowledge that the potential transfer of the Hull 2575 Interests pursuant to this
Article X is subject to obtaining any and all written consents of governmental authorities and other third parties and to the terms of all agreements existing as of the date hereof in respect of the Hull 2575 Interests including,
without limitation, any rights of first refusal of the parties to such agreements to purchase the Hull 2575 Interests. KNOT hereby covenants and agrees to use its reasonable efforts to obtain any such consents required to be obtained by it in
connection with the transfer of the Hull 2575 Interests pursuant to this Article X. 

Section 10.2 Procedures. 

(a) Not later than 30 calendar days after the date of acceptance of the Hull 2575 by Standard Marine, KNOT
shall notify the Board and offer the Board the opportunity to cause any Partnership Group Member to purchase the Hull 2575 Interests for fair market value pursuant to Section 10.1(a). 

(b) If a Partnership Group Member decides to exercise the option to purchase the Hull 2575 Interests, it will
provide, within 24 months of receipt of notice pursuant to Section 10.2(a), written notice to KNOT of such exercise, the fair market value it proposes to pay for the Hull 2575 Interests, and the other material terms of the
purchase. The decision to purchase the Hull 2575 Interests, the fair market value to be paid for the Hull 2575 Interests, and the other terms of the purchase shall be approved by the Conflicts Committee. If the Partnership Group Member and
KNOT are unable to agree on the fair market value of the Hull 2575 Interests and/or the other material terms, the Partnership Group Member and KNOT shall engage a mutually-agreed-upon investment banking firm, ship broker or other expert advisor
to determine the fair market value of the Hull 2575 Interests and/or the other material terms on which the Partnership Group Member and KNOT are unable to agree. In determining the fair market value of the Hull 2575 Interests and/or the
other material terms on which the Hull 2575 Interests are to be sold, the investment banking firm, ship broker or other expert advisor, as applicable, will have access to the proposed sale and purchase values and terms for the offer submitted
by the Partnership Group Member and KNOT, respectively, and to all information prepared by or on behalf of the Partnership Group Member and KNOT with respect to the Hull 2575 Interests and reasonably requested by such investment banking firm,
ship broker or other expert advisor. Such investment banking firm, ship broker or other expert advisor will determine the fair market value of the Hull 2575 Interests and/or the other terms on which the Partnership Group Member and KNOT are
unable to agree within 30 calendar days of its engagement and furnish the Partnership Group Member and KNOT its determination. The fees 

  
 20 

 
and expenses of the investment banking firm, ship broker or other expert advisor, as applicable, will be divided equally between the Partnership Group Member and KNOT. Upon receipt of such
determination, the Partnership Group Member will have the option, but not the obligation in to purchase the Hull 2575 Interests for the fair market value and on the other terms determined by the investment banking firm, ship broker or other
expert advisor, as soon as commercially practicable after determinations have been made. 
 (c) If a Partnership
Group Member chooses to exercise its option to purchase the Hull 2575 Interests under Section 10.2(b), the applicable parties shall enter into a purchase and sale agreement for the purchase and sale of the Hull 2575 Interests
pursuant to which KNOT shall be obligated to sell the Hull 2575 Interests to the Partnership Group Member and the Partnership Group Member shall be obligated to purchase the Hull 2575 Interests from KNOT. The terms of the purchase and sale
agreement will include the following: 
 (i) the Partnership Group Member will deliver a cash
purchase price (unless the Partnership Group Member and KNOT agree that the consideration will be paid by means of equity of the MLP, an interest-bearing promissory note or other form of consideration); 

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

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

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

  
 21 

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

GUARANTEES BY KNOT 
 Section 11.1 Guarantee Relating to the Bodil Knutsen. If at any time during the five years following the Closing Date, the Bodil Knutsen is not receiving from any charterer a rate of hire that
is equal to or greater than the rate of hire then in effect and payable under the Bodil Knutsen Charter, then KNOT shall pay, or cause to be paid, to the owner of the Bodil Knutsen such rate of hire that would have been in effect and payable under
the Bodil Knutsen Charter; provided, however, that in the event that for any period during such five years following the Closing Date the Bodil Knutsen is chartered to a charterer other than Statoil under a charter other than the Bodil
Knutsen Charter and the rate of hire being paid by such charterer is lower than the rate of hire that would have been in effect and payable under the Bodil Knutsen Charter during any such period, then KNOT shall pay, or cause to be paid, to the
owner of the Bodil Knutsen, the difference between the rate of hire that would have been in effect and payable under the Bodil Knutsen Charter during such period and the rate of hire that is then in effect and payable under the charter agreement
with such other charterer. 
 Section 11.2 Guarantee Relating to the Windsor Knutsen. If at any time
during the five years following the Closing Date, the Windsor Knutsen is not receiving from any charterer a rate of hire that is equal to or greater than the rate of hire then in effect and payable under the Windsor Knutsen Charter, then KNOT shall
pay, or cause to be paid, to the owner of the Windsor Knutsen such rate of hire that would have been in effect and payable under the Windsor Knutsen Charter; provided, however, that in the event that for any period during such five
years following the Closing Date the Windsor Knutsen is chartered to a charterer other than BG under a charter other than the Windsor Knutsen Charter and the rate of hire being paid by such charterer is lower than the rate of hire that would have
been in effect and payable under the Windsor Knutsen Charter during any such period, then KNOT shall pay, or cause to be paid, to the owner of the Windsor Knutsen, the difference between the rate of hire that would have been in effect and payable
under the Windsor Knutsen Charter during such period and the rate of hire that is then in effect and payable under the charter agreement with such other charterer; provided, further, that for purposes of this Section 11.2,
the rate of hire that would have been in effect and payable under the Windsor Knutsen Charter during the period between the final termination date of the Windsor Knutsen Charter (assuming that all extension options thereunder would have been
exercised) and the last day of the five-year period following the Closing Date (inclusive) shall be deemed to have been the rate of hire that would have been in effect and payable during the last option extension period under the Windsor Knutsen
Charter (assuming that all extension options thereunder would have been exercised). 

  
 22 

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

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

(b) KNOT shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims
brought against the Partnership Group that are covered by the indemnification set forth in Section 13.1, including, without limitation, the selection of counsel, determination of whether to appeal any decision of any court and the
settling of any such matter or any 

  
 23 

 
issues relating thereto; provided, however, that no such settlement shall be entered into without the consent (which consent shall not be unreasonably withheld) of the Partnership
Group unless it includes a full release of the Partnership Group from such matter or issues, as the case may be. 
 (c) The Partnership Group Members agree to cooperate fully with KNOT with respect to all aspects of the defense of any claims covered by the indemnification set forth in Section 13.1,
including, without limitation, the prompt furnishing to KNOT of any correspondence or other notice relating thereto that the Partnership Group may receive, permitting the names of the members of the Partnership Group to be utilized in connection
with such defense, the making available to KNOT of any files, records or other information of the Partnership Group that KNOT considers relevant to such defense and the making available to KNOT of any employees of the Partnership Group;
provided, however, that in connection therewith KNOT agrees to use reasonable efforts to minimize the impact thereof on the operations of the Partnership Group and further agrees to maintain the confidentiality of all files, records
and other information furnished by a Partnership Group Member pursuant to this Section 13.3. In no event shall the obligation of the Partnership Group to cooperate with KNOT as set forth in the immediately preceding sentence be construed
as imposing upon the Partnership Group an obligation to hire and pay for counsel in connection with the defense of any claims covered by the indemnification set forth in this Article III; provided, however, that the
Partnership Group Members may, at their own option, cost and expense, hire and pay for counsel in connection with any such defense. KNOT agrees to keep any such counsel hired by the Partnership Group reasonably informed as to the status of any such
defense (including providing such counsel with such information related to any such defense as such counsel may reasonably request) but KNOT shall have the right to retain sole control over such defense. 

In determining the amount of any Loss for which any of the members of the Partnership Group is entitled to
indemnification under this Agreement, the gross amount of the indemnification will be reduced by (i) any insurance proceeds realized by the Partnership Group, and such correlative insurance benefit shall be net of any incremental insurance
premium that becomes due and payable by the Partnership Group as a result of such claim, and (ii) all amounts recovered by the Partnership Group under contractual indemnities from third Persons. The Partnership Group hereby agrees to use
commercially reasonable efforts to realize any applicable insurance proceeds or amounts recoverable under such contractual indemnities; provided, however, that the costs and expenses (including, without limitation, court costs and
reasonable attorneys’ fees) of the Partnership Group in connection with such efforts shall be promptly reimbursed by KNOT in advance of any determination of whether such insurance proceeds or other amounts will be recoverable. 

ARTICLE XIV 
 MISCELLANEOUS 
 Section 14.1 Choice of Law;
Submission To Jurisdiction. This Agreement shall be subject to and governed by the laws of the State of New York. Each party hereby submits to the jurisdiction of the state and federal courts located in the State of New York and to venue in
New York, New York. 

  
 24 

 Section 14.2 Notice. All notices, requests or consents provided
for or permitted to be given pursuant to this Agreement must be in writing and must be given by depositing the same in the mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or by
delivering such notice in person or by private-courier, prepaid, or by telecopier to such party. Notice given by personal delivery or mail shall be effective upon actual receipt. Couriered notices shall be deemed delivered on the date the courier
represents that delivery will occur. Notice given by telecopier shall be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next business day after receipt if not
received during the recipient’s normal business hours. All notices to be sent to a party pursuant to this Agreement shall be sent to or made at the address set forth below such party’s signature to this Agreement, or at such other address
as such party may stipulate to the other parties in the manner provided in this Section 14.2. 

Section 14.3 Entire Agreement. This Agreement constitutes the entire agreement of the parties relating to the
matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein. 
 Section 14.4 Termination. Upon a Change of Control of the General Partner or of the MLP, the provisions of Articles II, III, IV and V of this Agreement (but not less
than all of such Articles) shall terminate immediately. Upon a Change of Control of KNOT, the provisions of Articles II, III, IV and V of this Agreement applicable to KNOT (but not less than all of such Articles)
shall terminate at the time that is the later of (a) the date on which all of the MLP’s outstanding subordinated units have converted to common units of the MLP and (b) the date of the Change of Control of KNOT. On the date on which a
majority of the members of the Board ceases to consist of members of the Board that were (1) appointed by the General Partner prior to the 2013 annual meeting of unitholders and (2) recommended for election to the Board by a majority of
the Appointed Directors (as defined in the MLP Agreement), the provisions of Articles II, VI, VII, VIII, IX and X and, to the extent applicable to any KNOT Entity, Sections 5.1(b) and
5.2(b) of this Agreement shall terminate immediately. 
 Section 14.5 Waiver; Effect of Waiver or
Consent. Any party hereto may (a) extend the time for the performance of any obligation or other act of any other party hereto or (b) waive compliance with any agreement or condition contained herein. Except as otherwise specifically
provided herein, any such extension or waiver shall be valid only if set forth in a written instrument duly executed by the party or parties to be bound thereby; provided, however, that the MLP may not, without the prior approval of
the Conflicts Committee, agree to any extension or waiver of this Agreement that, in the reasonable discretion of the Board, will adversely affect the holders of common units of the MLP. No waiver or consent, express or implied, by any party of or
to any breach or default by any Person in the performance by such Person of its obligations hereunder shall be deemed or construed to be a waiver or consent of or to any other breach or default in the performance by such Person of the same or any
other obligations of such Person hereunder. Failure on the part of a party to complain of any act of any Person or to declare any Person in default, irrespective of how long such failure continues, shall not constitute a waiver by such party of its
rights hereunder until the applicable statute of limitations period has run. 
 Section 14.6 Amendment
or Modification. This Agreement may be amended or modified from time to time only by the written agreement of all the parties hereto; provided, 

  
 25 

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

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

 Section 14.11 Further Assurances. In connection with this Agreement and all transactions
contemplated by this Agreement, each signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of
the terms, provisions and conditions of this Agreement and all such transactions. 
 Section 14.12
Withholding or Granting of Consent. Each party may, with respect to any consent or approval that it is entitled to grant pursuant to this Agreement, grant or withhold such consent or approval in its sole and uncontrolled discretion, with or
without cause, and subject to such conditions as it shall deem appropriate. 
 Section 14.13 Laws and
Regulations. Notwithstanding any provision of this Agreement to the contrary, no party to this Agreement shall be required to take any act, or fail to take any act, under this Agreement if the effect thereof would be to cause such party to be in
violation of any applicable law, statute, rule or regulation. 
 Section 14.14 Negotiation of Rights of
KNOT, Limited Partners, Assignees and Third Parties. The provisions of this Agreement are enforceable solely by the parties to this Agreement, and no shareholder of KNOT and no limited partner, member, assignee or other Person of the MLP shall
have the right, separate and apart from KNOT or the MLP, as applicable, to enforce any provision of this Agreement or to compel any party to this Agreement to comply with the terms of this Agreement. 

[Signature Pages Follow] 

  
 26 

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

			
	KNUTSEN NYK OFFSHORE TANKERS AS
		
	By:	 	  

		 	Name:
		 	Title:

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

 

			
	
	KNOT OFFSHORE PARTNERS LP
		
	By:	 	  

		 	Name:
		 	Title:

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

 SIGNATURE PAGE TO 

OMNIBUS AGREEMENT 

 
			
	KNOT OFFSHORE PARTNERS GP LLC
		
	By:	 	  

		 	Name:
		 	Title:

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

 

			
	
	KNOT OFFSHORE PARTNERS UK LLC
		
	By:	 	  

		 	Name:
		 	Title:

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

 SIGNATURE PAGE TO 

OMNIBUS AGREEMENT 

 
			
	KNOT SHUTTLE TANKERS AS
		
	By:	 	  

		 	Name:
		 	Title:

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

 SIGNATURE PAGE TO 

OMNIBUS AGREEMENTEX-10.4

 Exhibit 10.4 

 

					
	 SHIP MANAGEMENT AGREEMENT
	 	 THE BALTIC AND INTERNATIONAL
MARITIME COUNCIL (BIMCO) STANDARD SHIP MANAGEMENT AGREEMENT

	 	CODE NAME: “SHIPMAN 98”	 	PART 
I

  

							
	 1. Date of Agreement

 
     28.10.2010 (Agreement started from 12.09.2007)

 
	 	
Name of Vessel
  
     M/T Bodil Knutsen

	2. Owners (name, place of registered office and law of registry) (Cl.
1)	 	 3. Managers (name, place of registered office and law of registry)
(Cl. 1)
  

	 	 	 	 	 	 	 
	 	 	Name	 		 	Name
	 	 		 
	 	 	Knutsen Bøyelaster VI KS	 	 	 	 Knutsen OAS Shipping AS

	 	 	Place of registered office	 		 	Place of registered office
	 	 		 
	 	 	Smedasundet 40, 5529 Haugesund	 	 	 	 Smedasundet 40, 5529
Haugesund

	 	 	Law of registry	 		 	Law of registry
	 	 		 
	 	 	Norway	 	 	 	Norway
	 4. Day and year of commencement of
Agreement (Cl. 2)
  
     12.09.2007

 
	 	 
	5. Crew Management (state “yes” or “no” as agreed) (Cl.
3.1)	 	6. Technical Management (state “yes” or “no” as agreed) (Cl. 3.2)
	 	 	  
 Yes
  
	 	 	 	  
 Yes
  

	7. Commercial Management (state “yes” or “no” as agreed)
(Cl. 3.3)	 	8. Insurance Arrangements (state “yes” or “no” as agreed) (Cl. 3.4)
	 	 	  
 Yes
  
	 	 	 	  
 No (Attachment 1)
  

	9. Accounting Services (state “yes” or “no” as agreed) (Cl.
3.5)	 	10. Sale or purchase of the Vessel (state “yes” or “no” as agreed) (Cl.
3.6)
	 	 	  
 Yes
  
	 	 	 	  
 No (Attachment 1)
  

	11. Provisions (state “yes” or “no” as agreed) (Cl.
3.7)	 	12. Bunkering (state “yes” or “no” as agreed) (Cl. 3.8)
	 	 	  
 Yes
  
	 	 	 	  
 Yes
  

	13. Chartering Services Period (only to be filled in if “yes” stated in
Box 7) (Cl. 3.3(i))	 	14. Owners’ Insurance (state alternative (i), (ii) or (iii) of Cl. 6.3)
	 	 	  
 No (attachment 1)
  
	 	 	 	  
 No (attachment 1)
  

	15. Annual Management Fee (state annual amount) (Cl. 8.1)	 	16. Severance Costs (state maximum amount) (Cl. 8.4(ii))
	 	 	  
 NOK 2.340.000 to be escalated by 4% first time 01.01.2012. See new clause 21.
  
	 	 	 	 
	17. Day and year of termination of Agreement (Cl. 17)	 	18. Law and Arbitration (state alternative 19.1, 19.2 or 19.3; if 19.3 place of arbitration must be stated)
(Cl. 19)
	 	 	 	 	 	 	  
         
  

	19. Notices (state postal and cable address, telex and telefax number for serving
notice and communication to the Owners) (Cl. 20)	 	20. Notices (state postal and cable address, telex and telefax number for serving notice and communication
to the Managers) (Cl. 20)
	 	 	  
 Knutsen Bøyelaster VI KS
 Smedasundet 40, Postbox 2017

5504 Haugesund
 Tlf 52 70 40 00 Fax 52 70 40
40
  
	 	 	 	  
 Knutsen OAS Shipping AS
 Smedasundet 40, Postbox 2017

5504 Haugesund
 Tlf 52 70 40 00 Fax 52 70 40
40
  

	  
 It is mutually agreed between the party stated in
Box 2 and the party stated in Box 3 that this Agreement consisting of PART I and PART II as well as Annexes “A” (Details of Vessel), “B” (Details of Crew), “C” (Budget) and “D” (Associated vessels) attached
hereto, shall be performed subject to the conditions contained herein. In the event of a conflict of conditions, the provisions of PART I and Annexes “A”, “B”, “C” and “D” shall prevail over those of PART II
to the extent of such conflict but no further.
  

	Signature(s) (Owners)	 	Signature(s) (Managers)
	 	 	Knutsen Bøyelaster VI KS	 		 	Knutsen OAS Shipping AS
	 		 	 
	 	 	  
 /s/ TRYGVE
SEGLEM
  
	 	 	 	  
 /s/ TRYGVE SEGLEM
  

 PART II 
 “Shipman 98” Standard Ship Management Agreement 

 

 1. Definitions 

In this Agreement, save where the context otherwise requires, the following words and expressions shall have the
meanings hereby assigned to them. 
 “Owners” means the party identified in Box 2. 

“Managers” means the party identified in Box 3. 

“Vessel” means the vessel or vessels, details of which are set out in Annex “A” attached
hereto. 
 “Crew” means the Master, officers and ratings of the numbers, rank and nationality
specified in Annex “B” attached hereto. 
 “Crew Support Costs” means all expenses
of a general nature which are not particularly referable to any individual vessel for the time being managed by the Managers and which are incurred by the Managers for the purpose of providing an efficient and economic management service and,
without prejudice to the generality of the foregoing, shall include the cost of crew standby pay, training schemes for officers and ratings, cadet training schemes, sick pay, study pay, recruitment and interviews. 

“Severance Costs” means the costs which the employers are legally obliged to pay to or in respect of
the Crew as a result of the early termination of any employment contract for service on the Vessel. 

“Crew Insurances” means insurances against crew risks which shall include but not be limited to death,
sickness, repatriation, injury, shipwreck unemployment indemnity and loss of personal effects. 

“Management Services” means the services specified in sub-clauses 3.1 to 3.8 as indicated affirmatively
in Boxes 5 to 12. 
 “ISM Code” means the International Management Code for the Safe Operation
of Ships and for Pollution Prevention as adopted by the International Maritime Organization (IMO) by resolution A.741(18) or any subsequent amendment thereto. 
 “STCW 95” means the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978, as amended in 1995 or any subsequent amendment thereto.

 2. Appointment of Managers 
 With effect from the day and year stated in Box 4 and continuing unless and until terminated as provided herein, the Owners hereby appoint the Managers, and the Managers hereby agree to act, as the
Managers of the Vessel. 
 3. Basis of Agreement 

Subject to the terms and conditions herein provided, during the period of this Agreement, the Managers shall carry out
Management Services in respect of the Vessel as agents for and on behalf of the Owners. The Managers shall have authority to take such actions as they may from time to time in their absolute discretion consider to be necessary to enable them to
perform this Agreement in accordance with sound ship management practice. 
 3.1 Crew Management 

(only applicable if agreed according to Box 5) 

The Managers shall provide suitably qualified Crew for the Vessel as required by the Owners in accordance with the STCW
95 requirements, provision of which includes but is not limited to the following functions: 
  

	 	(i)	 selecting and engaging the Vessel’s Crew, including payroll arrangements, pension administration, and insurances for the Crew other than
those mentioned in Clause 6; 

  

	 	(ii)	 ensuring that the applicable requirements of the law of the flag of the Vessel are satisfied in respect of manning levels, rank,
qualification and certification of the Crew and employment regulations including Crew’s tax, social insurance, discipline and other requirements; 

  

	 	(iii)	 ensuring that all members of the Crew have passed a medical examination with a qualified doctor certifying that they are fit

 

	 	 
for the duties for which they are engaged and are in possession of valid medical certificates issued in accordance with appropriate flag State requirements. In the absence of applicable flag
State requirements the medical certificate shall be dated not more than three months prior to the respective Crew members leaving their country of domicile and maintained for the duration of their service on board the Vessel;

  

	 	(iv)	 ensuring that the Crew shall have a command of the English language of a sufficient standard to enable them to perform their duties safely;

  

	 	(v)	 arranging transportation of the Crew, including repatriation; 

 

	 	(vi)	 training of the Crew and supervising their efficiency; 

 

	 	(vii)	 conducting union negotiations; 

  

	 	(viii)	 operating the Managers’ drug and alcohol policy unless otherwise agreed. 

3.2 Technical Management 
 (only applicable if agreed according to Box 6) 
 The
Managers shall provide technical management, which includes, but is not limited to, the following functions: 
  

	 	(i)	 provision of competent personnel to supervise the maintenance and general efficiency of the Vessel; 

 

	 	(ii)	 arrangement and supervision of dry dockings, repairs, alterations and the upkeep of the Vessel to the standards required by the Owners, provided
that the Managers shall be entitled to incur the necessary expenditure to ensure that the Vessel will comply with the law of the flag of the Vessel and of the places where she trades, and all requirements and recommendations of the classification
society. 

  

	 	(iii)	 arrangement of the supply of necessary stores, spares and lubricating oil; 

 

	 	(iv)	 appointment of surveyors and technical consultants as the Managers may consider from time to time to be necessary;

  

	 	(v)	 development, implementation and maintenance of a Safety Management System (SMS) in accordance with the ISM Code (see sub-clauses 4.2 and
5.3). 

 3.3 Commercial Management 

(only applicable if agreed according to Box 7) 

The Managers shall provide the commercial operation of the Vessel, as required by the Owners, which includes, but is not
limited to, the following functions: 
  

	 	(i)	 providing chartering services in accordance with the Owners’ instructions which include, but are not limited to, seeking and negotiating
employment for the Vessel and the conclusion (including the execution thereof) of charter parties or other contracts relating to the employment of the Vessel. If such a contract exceeds the period stated in Box 13, consent thereto in writing shall
first be obtained from the Owners. 

  

	 	(ii)	 arranging of the proper payment to Owners or their nominees of all hire and/or freight revenues or other moneys of whatsoever nature to which
Owners may be entitled arising out of the employment of or otherwise in connection with the Vessel. 

  

	 	(iii)	 providing voyage estimates and accounts and calculating of hire, freights, demurrage and/or despatch moneys due from or due to the charterers
passengers of the Vessel; 

  

	 	(iv)	 issuing of voyage instructions; 

  

	 	(v)	 appointing agents; 

  

	 	(vi)	 appointing stevedores; 

  

	 	(vii)	 arranging surveys associated with the commercial operation of the Vessel. 

3.4 Insurance Arrangements 
 (only applicable if agreed according to Box 8) 
 The
Managers shall arrange insurances in accordance with Clause 6, on such terms and conditions as the Owners shall have instructed or agreed, in particular regarding conditions, insured values, deductibles and franchises.

 

 PART II 
 “Shipman 98” Standard Ship Management Agreement 
  

 3.5 Accounting Services 

(only applicable if agreed according to Box 9) 

The Managers shall: 
  

	 	(i)	 establish an accounting system which meets the requirements of the Owners and provide regular accounting services, supply regular reports and
records, 

  

	 	(ii)	 maintain the records of all costs and expenditure incurred as well as data necessary or proper for the settlement of accounts between the
parties. 

 3.6 Sale or Purchase of the Vessel 

(only applicable if agreed according to Box 10) 

The Managers shall, in accordance with the Owners’ instructions, supervise the sale or purchase of the Vessel,
including the performance of any sale or purchase agreement, but not negotiation of the same. 
 3.7
Provisions (only applicable if agreed according to Box 11) 
 The Managers shall arrange for the
supply of provisions. 
 3.8 Bunkering (only applicable if agreed according to Box 12)

 The Managers shall arrange for the provision of bunker, of the quality specified by the Owners as required
for the Vessel’s trade. 
 4. Managers’ Obligations 

4.1 The Managers undertake to use their best endeavours to provide the agreed Management Services as agents for
and on behalf of the Owners in accordance with sound ship management practice and to protect and promote the interests of the Owners in all matters relating to the provision of services hereunder. Provided, however, that the Managers in the
performance of their management responsibilities under this Agreement shall be entitled to have regard to their overall responsibility in relation to all vessels as may from time to time be entrusted to their management and in particular, but
without prejudice to the generality of the foregoing, the Managers shall be entitled to allocate available supplies, manpower and services in such manner as in the prevailing circumstances the Managers in their absolute discretion consider to be
fair and reasonable. 
 4.2 Where the Managers are providing Technical Management in accordance with
sub-clause 3.2, they shall procure that the requirements of the law of the flag of the Vessel are satisfied and they shall in particular be deemed to be the “Company” as defined by the ISM Code, assuming the responsibility for the
operation of the Vessel and taking over the duties and responsibilities imposed by the ISM Code when applicable. 
 5. Owners’
Obligations 
 5.1 The Owners shall pay all sums due to the Managers punctually in accordance with
the terms of this Agreement. 
 5.2 Where the Managers are providing Technical Management in accordance
with sub-clause 3.2, the Owners shall: 
  

	 	(i)	 procure that all officers and ratings supplied by them or on their behalf comply with the requirements of STCW 95;

  

	 	(ii)	 instruct such officers and ratings to obey all reasonable orders of the Managers in connection with the operation of the Managers’
safety management system. 

 5.3 Where the Managers are not providing Technical
Management in accordance with sub-clause 3.2, the Owners shall procure that the requirements of the law of the flag of the Vessel are satisfied and that they, or such other entity as may be appointed by them and identified to the Managers, shall be
deemed to be the “Company” as defined by the ISM Code assuming the responsibility for the operation of the Vessel and taking over the duties and responsibilities imposed by the ISM Code when applicable.

 6. Insurance Policies 

The Owners shall procure, whether by instructing the Managers under sub-clause 3.4 or otherwise, that throughout the
period of this Agreement: 
 6.1 at the Owners’ expense, the Vessel is insured for not less than
her sound market value or entered for her full gross tonnage, as the case may be for: 
  

	 	(i)	 usual hull and machinery marine risks (including crew negligence) and excess liabilities; 

 

	 	(ii)	 protection and indemnity risks (including pollution risks and Crew Insurances); and 

 

	 	(iii)	 war risks (including protection and indemnity and crew risks) in accordance with the best practice of prudent owners of vessels of a similar
type to the Vessel, with first class insurance companies, underwriters or associations (“the Owners’ Insurances”); 

 6.2 all premiums and calls on the Owners’ Insurances are paid promptly by their due date, 
 6.3 the Owners’ Insurances name the Managers and, subject to underwriters’ agreement, any third party designated by the Managers as a joint assured, with full cover, with the Owners
obtaining cover in respect of each of the insurances specified in sub-clause 6.1: 
  

	 	(i)	 on terms whereby the Managers and any such third party are liable in respect of premiums or calls arising in connection with the Owners’
Insurances; or 

  

	 	(ii)	 if reasonably obtainable, on terms such that neither the Managers nor any such third party shall be under any liability in respect of
premiums or calls arising in connection with the Owners’ Insurances; or 

  

	 	(iii)	 on such other terms as may be agreed in writing. 

Indicate alternative (i), (ii) or (iii) in Box 14. If Box 14 is left blank then (i) applies

 6.4 written evidence is provided, to the reasonable satisfaction of the Managers, of their
compliance with their obligations under Clause 6 within a reasonable time of the commencement of the Agreement and of each renewal date and, if specifically requested, of each payment date of the Owners’ Insurances. 

7. Income Collected and Expenses Paid on Behalf of Owners 

7.1 All moneys collected by the Managers under the terms of this Agreement (other than moneys payable by the
Owners to the Managers) and any interest thereon shall be held to the credit of the Owners in a separate bank account. 
 7.2 All expenses incurred by the Managers under the terms of this Agreement on behalf of the Owners (including expenses as provided in Clause 8) may be debited against the Owners in the account
referred to under sub-clause 7.1 but shall in any event remain payable by the Owners to the Managers on demand. 
 8. Management Fee

 8.1 The Owners shall pay to the Managers for their services as Managers under this Agreement an
annual management fee as stated in Box 15 which shall be payable, by equal monthly instalments in advance, the first instalment being payable on the commencement of this Agreement (see Clause 2 and Box 4) and subsequent instalments being payable
every month. 
 8.2 The management fee shall be subject to an annual review on the anniversary date of
the Agreement and the proposed fee shall be presented in the annual budget referred to in sub-clause 9.1. 

8.3 The Managers shall, at no extra cost to the Owners, provide their own office accommodation, office staff,
facilities and stationery. Without limiting the generality of Clause 7 the Owners shall reimburse the Managers for postage and communication expenses, travelling expenses, and other out of pocket expenses properly incurred by the Managers in
pursuance of the Management Services. 

 

 PART II 
 “Shipman 98” Standard Ship Management Agreement 
  

 8.4 In the event of the appointment of the Managers being
terminated by the Owners or the Managers in accordance with the provisions of Clauses 17 and 18 other than by reason of default by the Managers, or if the Vessel is lost, sold or otherwise disposed of, the “management fee” payable to the
Managers according to the provisions of sub-clause 8.1, shall continue to be payable for a further period of three calendar months as from the termination date. In addition, provided that the Managers provide Crew for the Vessel in accordance with
sub-clause 3.1: 
  

	 	(i)	 the Owners shall continue to pay Crew Support Costs during the said further period of three calendar months and 

 

	 	(ii)	 the Owners shall pay an equitable proportion of any Severance Costs which may materialize, not exceeding the amount stated in Box 16.

 8.5 If the Owners decide to lay-up the Vessel whilst this Agreement remains in
force and such lay-up lasts for more than three months, an appropriate reduction of the management fee for the period exceeding three months until one month before the Vessel is again put into service shall be mutually agreed between the parties.

 8.6 Unless otherwise agreed in writing all discounts and commissions obtained by the Managers in the
course of the management of the Vessel shall be credited to the Owners. 
 9. Budgets and Management of Funds 

9.1 The Managers shall present to the Owners annually a budget for the following twelve months in such form as
the Owners require. The budget for the first year hereof is set out in Annex “C” hereto. Subsequent annual budgets shall be prepared by the Managers and submitted to the Owners by 15 November each year not less than three months
before the anniversary date of the commencement of this Agreement (see Clause 2 and Box 4). 
 9.2 The
Owners shall indicate to the Managers their acceptance and approval of the annual budget within one month of presentation and in the absence of any such indication the Managers shall be entitled to assume that the Owners have accepted the proposed
budget. 
 9.3 Following the agreement of the budget, the Managers shall prepare and present to the
Owners their estimate of the working capital requirement of the Vessel and the Managers shall each month update this estimate. Based thereon, the Managers shall each month request the Owners in writing for the funds required to run the Vessel for
the ensuing month, including the payment of any occasional or extraordinary item of expenditure, such as emergency repair costs, additional insurance premiums, bunkers or provisions. Such funds shall be received by the Managers within ten running
days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of the Owners in a separate bank account. 
 9.4 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessel, in such form as required by the Owners, monthly or at such other intervals as mutually
agreed. 
 9.5 Notwithstanding anything contained herein to the contrary, the Managers shall in no
circumstances be required to use or commit their own funds to finance the provision of the Management Services. 
 10. Managers’ Right
to Sub-Contract 
 The Managers shall not have the right to sub-contract any of their obligations
hereunder, including those mentioned in sub-clause 3.1, without the prior written consent of the Owners, which shall not be unreasonably withheld. In the event of such a sub-contract, the Managers shall remain fully liable for the due performance of
their obligations under this Agreement. 

 11. Responsibilities 

11.1 Force Majeure - Neither the Owners nor the Managers shall be under any liability for
any failure to perform any of their obligations hereunder by reason of any cause whatsoever of any nature or kind beyond their reasonable control. 
 11.2 Liability to Owners - (i) Without prejudice to sub-clause 11.1, the Managers shall be under no liability whatsoever to the Owners for any loss, damage, delay
or expense of whatsoever nature, whether direct or indirect, (including but not limited to loss of profit arising out of or in connection with detention of or delay to the Vessel) and howsoever arising in the course of performance of the Management
Services UNLESS same is proved to have resulted solely from the negligence, gross negligence or wilful default of the Managers or their employees, or agents or sub-contractors employed by them in connection with the Vessel, in which case
(save where loss, damage, delay or expense has resulted from the Managers’ personal act or omission committed with the intent to cause same or recklessly and with knowledge that such loss, damage, delay or expense would probably result) the
Managers’ liability for each incident or series of incidents giving rise to a claim or claims shall never exceed; a total of ten times the annual management fee payable hereunder. 

(ii) Notwithstanding anything that may appear to the contrary in this Agreement, the Managers shall not be liable
for any of the actions of the Crew, even if such actions are negligent, grossly negligent or wilful, except only to the extent that they are shown to have resulted from a failure by the Managers to discharge their obligations under sub-clause 3.1,
in which case their liability shall be limited in accordance with the terms of this Clause 11. 
 11.3
Indemnity - Except to the extent and solely for the amount therein set out that the Managers would be liable under sub-clause 11.2, the Owners hereby undertake to keep the Managers and their employees, agents and sub-contractors
indemnified and to hold them harmless against all actions, proceedings, claims, demands or liabilities whatsoever or howsoever arising which may be brought against them or incurred or suffered by them arising out of or in connection with the
performance of the Agreement, and against and in respect of all costs, losses, damages and expenses (including legal costs and expenses on a full indemnity basis) which the Managers may suffer or incur (either directly or indirectly) in the course
of the performance of this Agreement. 
 11.4 “Himalaya” - It is hereby
expressly agreed that no employee or agent of the Managers (including every sub-contractor from time to time employed by the Managers) shall in any circumstances whatsoever be under any liability whatsoever to the Owners for any loss, damage or
delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect or default on his part while acting in the course of or in connection with his employment and, without prejudice to the generality of the foregoing provisions
in this Clause 11, every exemption, limitation, condition and liberty herein contained and every right, exemption from liability, defence and immunity of whatsoever nature applicable to the Managers or to which the Managers are entitled hereunder
shall also be available and shall extend to protect every such employee or agent of the Managers acting as aforesaid and for the purpose of all the foregoing provisions of this Clause 11 the Managers are or shall be deemed to be acting as agent or
trustee on behalf of and for the benefit of all persons who are or might be their servants or agents from time to time (including sub-contractors as aforesaid) and all such persons shall to this extent be or be deemed to be parties to this
Agreement. 
 12. Documentation 
 Where the Managers are providing Technical Management in accordance with sub-clause 3.2 and/or Crew Management in accordance with sub-clause 3.1, they shall make available, upon

 

 PART II 
 “Shipman 98” Standard Ship Management Agreement 
  

 Owners’ request, all documentation and records related to the Safety
Management System (SMS) and/or the Crew which the Owners need in order to demonstrate compliance with the ISM Code and STCW 95 or to defend a claim against a third party. 
 13. General Administration 
 13.1 The Managers
shall handle and settle all claims arising out of the Management Services hereunder and keep the Owners informed regarding any incident of which the Managers become aware which gives or may give rise to claims or disputes involving third parties.

 13.2 The Managers shall, as instructed by the Owners, bring or defend actions, suits or proceedings
in connection with matters entrusted to the Managers according to this Agreement. 
 13.3 The Managers
shall also have power to obtain legal or technical or other outside expert advice in relation to the handling and settlement of claims and disputes or all other matters affecting the interests of the Owners in respect of the Vessel. 

13.4 The Owners shall arrange for the provision of any necessary guarantee bond or other security. 

13.5 Any costs reasonably incurred by the Managers in carrying out their obligations according to Clause 13 shall
be reimbursed by the Owners. 
 14. Auditing 
 The Managers shall at all times maintain and keep true and correct accounts and shall make the same available for inspection and auditing by the Owners at such times as may be mutually agreed. On the
termination, for whatever reasons, of this Agreement, the Managers shall release to the Owners, if so requested, the originals where possible, or otherwise certified copies, of all such accounts and all documents specifically relating to the Vessel
and her operation. 
 15. Inspection of Vessel 
 The Owners shall have the right at any time after giving reasonable notice to the Managers to inspect the Vessel for any reason they consider necessary. 

16. Compliance with Laws and Regulations 
 The Managers will not do or permit to be done anything which might cause any breach or infringement of the laws and regulations of the Vessel’s flag, or of the places where she trades. 

17. Duration of the Agreement 
 This Agreement shall come into effect on the day and year stated in Box 4 and shall continue until the date stated in Box 17. Thereafter it shall continue until terminated by either party giving to the
other notice in writing, in which event the Agreement shall terminate upon the expiration of a period of three months from the date upon which such notice was given. 
 18. Termination 
 18.1 Owners’ Default

  

	 	(i)	 The Managers shall be entitled to terminate the Agreement with immediate effect by notice in writing if any moneys payable by the Owners
under this Agreement and/or the owners of any associated vessel, details of which are listed in Annex “D”, shall not have been received in the Managers’ nominated account within ten running days of receipt by the Owners of the
Manager’s written request or if the Vessel is repossessed by the Mortgagees. 

  

	 	(ii)	 If the Owners: 

  

	 	(a)	fail to meet their obligations under sub-clauses 5.2 and 5.3 of this Agreement for any reason within their control, or 

 

	 	(b)	proceed with the employment of or continue to employ the Vessel in the carriage of contraband, blockade

	 	 
running, or an unlawful trade, or on a voyage which in the reasonable opinion of the Managers is unduly hazardous or improper, 

the Managers may give notice of the default to the Owners, requiring them to remedy it as soon as practically possible.
In the event that the Owners fail to remedy it within a reasonable time to the satisfaction of the Managers, the Managers shall be entitled to terminate the Agreement with immediate effect by notice in writing. 

18.2 Managers’ Default 

If the Managers fail to meet their obligations under Clauses 3 and 4 of this Agreement for any reason within the control
of the Managers, the Owners may give notice to the Managers of the default, requiring them to remedy it as soon as practically possible. In the event that the Managers fail to remedy it within a reasonable time to the satisfaction of the Owners, the
Owners shall be entitled to terminate the Agreement with immediate effect by notice in writing. 
 18.3
Extraordinary Termination 
 This Agreement shall be deemed to be terminated in the
case of the sale of the Vessel or if the Vessel becomes a total loss or is declared as a constructive or compromised or arranged total loss or is requisitioned. 
 18.4 For the purpose of sub-clause 18.3 hereof 
  

	 	(i)	 the date upon which the Vessel is to be treated as having been sold or otherwise disposed of shall be the date on which the Owners cease to
be registered as Owners of the Vessel; 

	 	(ii)	 the Vessel shall not be deemed to be lost unless either she has become an actual total loss or agreement has been reached with her
underwriters in respect of her constructive, compromised or arranged total loss or if such agreement with her underwriters is not reached it is adjudged by a competent tribunal that a constructive loss of the Vessel has occurred.

 18.5 This Agreement shall terminate forthwith in the event of an order being made
or resolution passed for the winding up, dissolution, liquidation or bankruptcy of either party (otherwise than for the purpose of reconstruction or amalgamation) or if a receiver is appointed, or if it suspends payment, ceases to carry on business
or makes any special arrangement or composition with its creditors. 
 18.6 The termination of this
Agreement shall be without prejudice to all rights accrued due between the parties prior to the date of termination. 
 19. Law and
Arbitration 
 19.1 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 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 14
days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within the 14 days specified, the party referring a dispute to arbitration may, without the requirement of any further prior notice

 

 PART II 
 “Shipman 98” Standard Ship Management Agreement 
  

 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 he had been appointed by agreement. 
 Nothing herein shall prevent the parties agreeing in writing to vary these provisions to provide for the appointment of a sole arbitrator. 

In cases where neither the claim nor any counterclaim exceeds the sum of €50,000 (or such other sum as the parties
may agree) the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced. 

19.2 This Agreement shall be governed by and construed in accordance with Title 9 of the United States Code and
the Maritime Law of the United States and any dispute arising out of or in connection with this Agreement shall be referred to three 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, judgement 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 USD 50,000 (or such other sum as the parties may agree) the arbitration shall be conducted in accordance with the Shortened Arbitration Procedure of the Society of Maritime Arbitrators, Inc. current at the time when the arbitration proceedings
are commenced. 
 19.3 This Agreement shall be governed by and construed in accordance with the laws of
the place mutually agreed by the parties and any dispute arising out of or in connection with this Agreement shall be referred to arbitration at a mutually agreed place, subject to the procedures applicable there. 

19.4 If Box 18 in Part I is not appropriately filled in, sub-clause 19.1 of this Clause shall apply. 

Note: 19.1, 19.2 and 19.3 are alternatives; indicate alternative agreed in Box 18. 

20. Notices 
 20.1 Any notice to be given by either party to the other party shall be in writing and may be sent by fax, telex, registered or recorded mail or by personal service. 

20.2 The address of the Parties for service of such communication shall be as stated in Boxes 19 and 20,
respectively. 

 
 

 KNUTSEN BØYELASTER VI KS 
 New clause 21. 
 The Manager shall provide administration service and technical supervision
during the construction of the NB 5316 from this day until delivery from Daewoo, Korea. 
 The Owner shall pay the Manager for the services
rendered as follows: 
  

							
	 01.01.2010
	  	NOK	 	 	2.000.000	  
	 01.04.2010
	  	NOK	 	 	2.000.000	  
	 01.07.2010
	  	NOK	 	 	4.000.000	  
	 01.10.2010
	  	NOK	 	 	4.000.000	  
	 01.01.2011
	  	NOK	 	 	2.000.000	  
			
	 Total
	  	NOK	 	 	14.000.000	  

 All capital and direct expenditures shall be at Owners cost. 

 Date of Agreement 12.09.2007 - Re.: NB 5316 Daewoo, Korea 

Clauses 
 Clause 17

 This Agreement shall come into effect on the day stated in Box 4 and shall continue until terminated by either party giving to the
other notice in writing, in which event the Agreement shall terminate upon the expiration of a period of six moth from the date upon which such notice was given. 
 The Owner may only terminate this Agreement if so decided in the Company meeting in accordance with the Company Agreement. Documentation for such decision shall be presented to Manager along with the
termination letter. 
 Clause 19 
 The Ship Management Agreement shall be governed by Norwegian Law and the parties accept Haugesund City Court as proper legal venue for the settlement of any controversy or dispute that may arise in
connection with, or as a result of this contract that cannot be resolved by mutual agreement between the parties hereto. 

 ANNEX “A” (DETAILS OF VESSEL OR VESSELS) TO 

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO) 
 STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: “SHIPMAN 98” 
  

 

			
	Date of Agreement:	  	12.09.2007
		
	Name of Vessel(s):	  	NB 5316 Daewoo, Korea
		
	Particulars of Vessel(s):	  	Shuttle Tanker

 Addendum number 1 to the Standard Ship Management Agreement dated 28.10.2010 

Re.: M/T Bodil Knutsen 

With effect from January 1st 2011 a New Box 15 have been agreed to be: 

USD 365 000 annual to be escalated by 6% annual, first time 01.01.2012 

With effect from July 1st 2012 KNOT Management AS will become new manager and a New Box 3 have been agreed to be: 

Managers: 

Name: KNOT Management AS 
 Place of registered office: Smedasundet 40, 5529 Haugesund, Norway 
 Law
of registry: Haugesund, Norway 
 Haugesund, July 1st 2012 
  

			
	Knutsen OAS Shipping AS	  	KNOT Management AS
		
	Old Managers	  	New Managers
		
	/s/ TRYGVE SEGLEM	  	/s/ TRYGVE SEGLEM
	By CEO Trygve Seglem	  	By CEO Trygve Seglem

  

	
	Knutsen Bøyelaster VI KS
	
	Owners
	
	/s/ TRYGVE SEGLEM
	By Chairman of the Board Trygve Seglem

 ADDENDUM NO. 2 
 TO 
 SHIP MANAGEMENT AGREEMENT 

This Addendum No. 2 (this “Addendum”) to the Ship Management Agreement, dated
October 28, 2010, between Knutsen Bøyelaster VI KS, a Norwegian limited partnership (the “Prior Owners”), and Knutsen OAS Shipping AS, a Norwegian private limited liability company (the “Prior
Managers”), as amended by Addendum Number 1 to the Standard Ship Management Agreement, dated July 1, 2012, between the Prior Owners, the Prior Managers and KNOT Management AS, a Norwegian private limited liability company (the
“Managers” and such agreement, as amended, the “Agreement”), is made as of February 21, 2013, between the Prior Owners, the Managers and KNOT Shuttle Tankers 17 AS (the
“Owners”). 
 RECITALS 

WHEREAS, the Prior Owners, the Managers and the Owners desire that as of the date on which the Vessel (as defined in the
Agreement) is registered in the name of the Owners in the appropriate registry (the “Effective Date”), the Owners shall be substituted for the Prior Owners under the Agreement, where upon the Prior Owners shall be relieved of
their rights, obligations and liabilities thereunder, and the Owners shall assume the same; and 
 WHEREAS, the
Owners and the Managers wish to amend certain provisions of the Agreement and agree that such amendments shall take effect as of the Effective Date. 
 AGREEMENT 
 NOW, THEREFORE, for and in consideration of
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by the parties’ execution and delivery hereof, the parties agree as follows: 

Section 1. Substitution for Prior Owners. With effect as of the Effective Date, each party to this
Addendum agrees that: (a) the Owners shall be substituted for the Prior Owners as the “Owners” in the Agreement, and the Agreement shall be construed and treated in all respects as if the Owners were named therein instead of the Prior
Owners, including, for the avoidance of doubt, in Box 2 of the Agreement; (b) the Owners shall assume all rights, obligations and liabilities of the Prior Owners under the Agreement, including payment of all costs and fees calculated from the
Effective Date and (c) the Managers shall be released from all rights, obligations and liabilities owed to the Prior Owners under the Agreement, and the Managers shall release the Owners from all obligations and liabilities under the Agreement
(save for payment of costs and fees accrued up to the Effective Date). 
 Section 2. Amendments to
the Agreement. With effect as of the Effective Date, the Agreement shall be modified as follows: 

2.1 Box 8 of the Agreement is hereby amended and restated in its entirety to read as follows: 

“Yes” 

 2.2 Box 10 of the Agreement is hereby amended and restated in its
entirety to read as follows: 
 “No” 

2.3 Box 13 of the Agreement is hereby amended and restated in its entirety to read as follows: 

“Until the Agreement is terminated” 

2.4 Box 14 of the Agreement is hereby amended and restated in its entirety to read as follows: 

“(ii)” 
 2.5 Box 17 of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “One year after commencement” 
 2.6 Box 18 of the
Agreement is hereby amended and restated in its entirety to read as follows: 
 “19.3 Norwegian law,
Haugesund as place of arbitration” 
 2.7 The paragraph located above the signature block on page 1
of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “It is mutually
agreed between the party stated in Box 2 and the party stated in Box 3 that this Agreement consisting of PART I and PART II, as well as Annexes “A” (Details of Vessel), “B” (Details of Crew) and “C” (Budget) attached
hereto, shall be performed subject to the conditions contained herein. In the event of a conflict of conditions, the provisions of PART I and Annexes “A”, “B” and “C” shall prevail over those of PART II to the extent of
such conflict but no further.” 
 2.8 Sub-clause 3.2 of the Agreement is hereby amended and restated
in its entirety to read as follows: 
 “The Managers shall provide technical management, which includes, but
is not limited to, the following functions: 
  

	 	(i)	 provision of competent personnel to supervise the maintenance and general efficiency of the Vessel; 

 

	 	(ii)	 arrangement and supervision of dry dockings, repairs, alterations and the upkeep of the Vessel to the standards required by the Owners, provided
that the Managers shall be entitled to incur the necessary expenditure to ensure that the Vessel will comply with the law of the flag of the Vessel and of the places where she trades and all requirements and recommendations of the classification
society; 

  
 2 

	 	(iii)	 arrangement of the supply of necessary stores, spares and lubricating oil; 

 

	 	(iv)	 appointment of surveyors and technical consultants as the Managers may consider from time to time to be necessary; 

 

	 	(v)	 development, implementation and maintenance of a Safety Management System (SMS) in accordance with the ISM Code (see sub-clauses 4.2 and 5.3);

  

	 	(vi)	 arrangement of the lay-up of the Vessel; and 

  

	 	(vii)	 arrangement of the loading and discharging and all related matters, subject to the provisions of the time charter. 

2.9 Sub-clause 9.3 of the Agreement is hereby amended and restated in its entirety to read as follows: 

“Following the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the
working capital requirement of the Vessel and the Managers shall each quarter update this estimate. Based thereon, the Managers shall each quarter request the Owners in writing for the funds required to run the Vessel for the ensuing quarter,
including the payment of any occasional or extraordinary item of expenditure, such as emergency repair costs, additional insurance premiums, bunkers or provisions. Such funds shall be received by the Managers within 60 running days after the receipt
by the Owners of the Managers’ written request and shall be held to the credit of the Owners in a separate bank account.” 
 2.10 Sub-clause 11.2(i) of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “Without prejudice to sub-clause 11.1, the Managers shall be under no liability whatsoever to the Owners for any loss, damage, delay or expense of whatsoever nature, whether direct or indirect,
including, but not limited to, loss of profit arising out of or in connection with detention of or delay to the Vessel and howsoever arising in the course of performance of the Management Services (such loss, damage, delay or expense, a
“Loss”); provided, however, that if such Loss is proved to be caused by or due to the fraud, gross negligence or willful misconduct of the Managers, the Managers shall be liable for any claim or claims in connection with such Loss
in an amount not to exceed ten times the annual management fee payable hereunder.” 
 2.11
Sub-clause 18.1(i) of the Agreement is hereby amended and restated in its entirety to read as follows: 

“The Managers shall be entitled to terminate the Agreement with immediate effect by notice in writing if any moneys
payable by the Owners under this Agreement shall not have been received in the Managers’ nominated account within 60 running days of receipt by the Owners of the Managers’ written request or if the Vessel is repossessed by the
Mortgagees.” 

  
 3 

 2.12 The document titled “Date of Agreement 12.09.2007 –
Re.: NB 5316 Daewoo, Korea” of the Agreement is hereby deleted in its entirety. 
 2.13 Annex
“A” of the Agreement is hereby amended and restated in its entirety in the form attached hereto as Exhibit A. 
 2.14 The Agreement is hereby amended by adding Annex “B,” in the form attached hereto as Exhibit B, and Annex “C,” in the form attached hereto as Exhibit C, at the
end thereof. 
 Section 3. No Other Changes. Except as specifically set forth in this
Addendum, the terms and provisions of the Agreement shall remain unmodified, and the Agreement is hereby confirmed by the parties in full force and effect as amended herein. The Agreement (as amended by this Addendum) constitutes the entire
understanding of the parties with respect to the subject matter thereof, and no other covenants have been made by either party to the other. 
 Section 4. Counterparts. This Addendum may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the other party, it being understood that all parties need not sign the same counterpart. 

Section 5. Severability. If any provision of this Addendum is held to be unenforceable under
applicable law, such provision shall be excluded from this Addendum and the balance of this Addendum shall be interpreted as if such provision was so excluded and shall be enforceable in accordance with its terms. 

[Signature Page Follows.] 

  
 4 

 IN WITNESS WHEREOF, the parties have executed this Addendum as of the date
first above written. 
  

			
	PRIOR OWNERS
	
	KNUTSEN BØYELASTER VI KS
		
	By:	 	 /S/ TRYGVE SEGLEM

	Name:	 	 Trygve Seglem

	Title:	 	 Chairman of the Board

	
	MANAGERS
	
	KNOT MANAGEMENT AS
		
	By:	 	 /S/ TRYGVE SEGLEM

	Name:	 	 Trygve Seglem

	Title:	 	 Chairman of the Board

	
	OWNERS
	
	KNOT SHUTTLE TANKERS 17 AS
		
	By:	 	 /S/ TRYGVE SEGLEM

	Name:	 	 Trygve Seglem

	Title:	 	 Chairman of the Board

 Signature Page to 
 Addendum No. 2 to Ship Management Agreement 

 Exhibit A 

Annex “A” 
 [See Attached.] 
 Exhibit A 

 ANNEX “A” (DETAILS OF VESSEL OR VESSELS) TO 

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO) 
 STANDARD SHIP MANAGEMENT AGREEMENT-CODE NAME: “SHIPMAN 98” 
  

 
 M/T Bodil Knutsen

  

					
	 Main Particulars

 
	  	 
	 Owner
  
	  	Knutsen Bøyelaster VI
K/S
	 Operator
  
	  	KNOT management AS
	Classification / Notation	  	
+1A1, Tanker for Oil ESP, CSR, PLUS-2, E0, DYNPOS-AUTR, DAT(- 30), ICE-1A, VCS-2, SPM. TMON. BIS. OPP-F, BOW LOADING, HELDK- SH, NAUT-AW, CLEAN-DESIGN,
COMF-V(3) C(2), F-AMC, ESV-P (HIL)
  

	Flag / Register	  	
Isle of Man / IOM
  
 -
  

	 Home Port
  
	  	Douglas
	 IMO Number/Call sign

 
	  	9472529/ 2EPZ5
	 Service Speed
  
	  	14,88 knots (ballast)/ 15,78 knots
(loaded)
	     

 
	  	 
	 Main Dimensions

 
	  	 
	 Length overall
  
	  	284,95 mtr
	 Length between Perpendiculars

 
	  	270,00 mtr
	 Breadth (Moulded)

 
	  	50,00 mtr
	 Depth (Moulded)
  
	  	23,00 mtr
	 Keel to masthead

 
	  	54,30 mtr
	 Ballast parallel body length Total/ Bow-mid manifold/stern-mid. manifold

 
	  	127,00 mtr/ 74,0 mtr/ 53,0 mtr
	 Summer deadweight (SDWT) parallel body length Total/ Bow-mid manifold,/stern-mid.
manifold
  
	  	146,00 mtr/ 74,0 mtr/ 72,0 mtr
	Manifold arrangement	  	 Arrangement: OCIMF Standard
(Steel)
  

	 	  	 3 x 650 mm (16”)

 

	 	  	 Max. load rate of 4000 m3 pr. hr x 3.

 

	Draft/Displacement/Deadweight	  	Summer	  	15,92mtr/  180299mt/  149.999mt
	 	  	Winter	  	15,92mtr/  180299mt/  149.999mt
	 	  	Tropical	  	15,92mtr/  180299mt/  149.999mt
	 	  	Lightship	  	  3,27mtr/    30300mt/            
 0mt
	 	  	Normal ballast	  	  7,84mtr/    82098mt/    51.798mt
	 	  	Seg. Ballast	  	  8,53mtr/    84117mt/    53.818mt
	 	 
	 	  	Vessel carry Mulitiple Load Line Certificate up to
157.644mt

					
	 Gross tonnage
  
	  	93 147
	 Net Tonnage
  
	  	50 197
	     

 
	  	 
	 Machinery

 
	  	 	  	 
	 Main Engine
  
	  	B&W 7S70ME-C, 21.770 KW
	 Propeller
  
	  	Rolls Royce Controllable Pitch
propeller
	 Boilers (Maker / Type / Pressure / Capacity)

 
	  	2 x Aalborg/ Mission OL/ 9 kg pr. cm2/ 30.000 kg
pr hr.
	Alternators	  	 STX
MAN Holeby, 4-stroke, trunk piston, in line type
  
 2 x 2.300 KW

 
 3 X 4.500 KW
  

	Steering gear (Maker / Type)	  	
Rolls Royce/ Electro-Hydraulic rotary vane type with electric pump control
  

	Bow Thrusters	  	
Brunvoll 1 x 2.200 KW + 1 X AZIMUT 2.200 KW

 

	Stern Thrusters	  	
Brunvoll 2 X AZIMUT 2.200 KW
  

	     

 
	  	 
	 Cargo Equipment

 
	  	 	  	 
	Cargo tanks	  	 No.
of tanks : 12 + 2 slops.
  
 No. of grades: 3

 
 98% capacity, cargo tanks: 171.333 cbm.

 
 98% slop tanks capacity    :    4.012
cbm.
  
 Total 98%
capacity           : 175.345 cbm
  

	Cargo pumps (Type / Maker / capacity / head)	  	 12
x Centrifugal, vertical, submerged, hydraulic motor driven / Framo/ 1.800 m3 pr. hr./ 130 mtr
  
 2 x Centrifugal, vertical, submerged, hydraulic motor driven Deep well/ Framo/ 500 m3 pr. hr./ 130 mtr

 

	Spray/stripping pumps (Maker /Capacity /head)	  	 1 x
Centrifugal, vertical, submerged, hydraulic motor driven Deep well /Framo SD100/ 100 m3 pr.hr/ 130 mtr
  

	Ballast pumps (Type/ Maker/ Capacity / head)	  	 2 x
Centrifugal, vertical, submerged, hydraulic motor driven Deep well /Framo / 2.500m3 pr.hrs/ 30 mtr
  

	High duty Compressors (Type / Maker / Capacity)	  	 N/A

 
	  	 
	Low Duty Compressor (Type / maker / Capacity)	  	 N/A

 
	  	 
	     

 
	  	 	  	 
	 Mooring Equipment

 
	  	 	  	 
	 Mooring Winches (Type / maker / Heaving power / break capacity)

 
	  	Hydraulic Double drum/ Rolls Royce/ 25 t/
75t
	 Mooring ropes on drums (No. / diameter / material / length / Breaking
strength)
  
	  	8 pcs/ 36mm/ Wire+(rope tails)/ 275mtrs +(11
mtr)/ 90t(124t)

 Exhibit B 

Annex “B” 
 [See Attached.] 
 Exhibit B 

 ANNEX “B” (DETAILS OF CREW) TO 
 THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO) 
 STANDARD SHIP MANAGEMENT AGREEMENT-CODE
NAME: “SHIPMAN 98” 
  
  

Details of Crew: 
 For BODIL KNUTSEN

 MANNING 
  

					
	 POSITION
	  	 NO. OF CREW
	  	 NATIONALITY

	 Master
	  	1	  	Norwegian
	 Chief Officer
	  	1	  	Norwegian
	
2nd Officer
	  	1	  	Norwegian
	
3rd Officer
	  	2	  	Filipino
	 Bosun
	  	1	  	Filipino
	 AB
	  	3	  	Filipino
	 OS
	  	2	  	Filipino
	 Chief Cook
	  	1	  	Filipino
	 Messman
	  	1	  	Filipino
	 Chief Engineer
	  	1	  	Norwegian (Polish/EU)
	
2nd Engineer
	  	1	  	Filipino
	
3rd Engineer
	  	1	  	Filipino
	 Electrician
	  	1	  	Polish
	 Motorman
	  	1	  	Filipino
	 Oiler
	  	1	  	Filipino
	 Fitter
	  	1	  	Filipino

 Exhibit C 

Annex “C” 
 [See Attached.] 
 Exhibit C 

 ANNEX “C” ( BUDGET) TO 
 THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO) 
 STANDARD SHIP MANAGEMENT AGREEMENT-CODE
NAME: “SHIPMAN 98” 
  
  

Manager’s Budget for the 2013: 
 BODIL
KNUTSEN 
  

											
	DESCRIPTION	  	USD PER DAY	 	  	USD PER YEAR	 
				
	 1.
	 	 Technical Expenses
	  	 	3 391	  	  	 	1 237 716	  
	 2.
	 	 Victually
	  	 	330	  	  	 	120 450	  
	 3.
	 	 Lubrication oils
	  	 	411	  	  	 	150 000	  
	 4.
	 	 Manning
	  	 	10 197	  	  	 	3 722 055	  
	 5.
	 	 Insurance
	  	 	1 502	  	  	 	548 302	  
	 6.
	 	 Management fee
	  	 	1 156	  	  	 	422 114	  
		 	 Total
	  	 	16 987	  	  	 	6 200 637

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}]]