Document:

EX-4.15

 EXHIBIT 4.15 

Execution version 
 Dated 11 July
2013 
 FIRST SUPPLEMENTAL AGREEMENT 

between 
 KNUTSEN SHUTTLE
TANKERS 13 AS 
 as Borrower 

and 
 KNUTSEN NYK OFFSHORE
TANKERS AS 
 as Parent Guarantor 

and 
 KNOT OFFSHORE PARTNERS LP

 KNOT SHUTTLE TANKERS AS 

as Guarantors 
 THE BANKS AND
FINANCIAL INSTITUTIONS 
 listed in Schedule 1 

as Lenders 
 and 

DNB BANK ASA 
 NORDEA
BANK NORGE ASA 
 ABN AMRO BANK N.V. OSLO BRANCH 

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK 

as Mandated Lead Arrangers 
 and

 DNB BANK ASA 

NORDEA BANK NORGE ASA 
 as
Bookrunners 
 and 
 DNB BANK
ASA 
 as Agent 
  

 
 Relating to a
USD 93,000,000.- 
 Term Loan Facility Agreement 

in respect of the Borrower’s vessel 

“CARMEN KNUTSEN” 
  

 
  

 

 THIS FIRST SUPPLEMENTAL AGREEMENT (the “Supplemental Agreement”) is made the 11th day of
July 2013 between: 
  

	(1)	KNUTSEN SHUTTLE TANKERS 13 AS, P.O. Box 2017, 5504 Haugesund, Norway, (organisation no 996 661 016) as borrower (the “Borrower”); 

 

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

 

	(3)	KNOT OFFSHORE PARTNERS LP, with registered office at Trust Company Complex, Ajeltake Island, Ajeltake Road, Majuro, Marshall Islands MH96960 and executive office at 2 Queen’s Cross, Aberdeen, Aberdeenshire
AB15 4YB, United Kingdom, and 

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

	(4)	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 1 to the Amended and Restated Facility Agreement as lenders (the “Lenders”); 

 

	(5)	DNB BANK ASA, P.O. Box 7100 Sentrum. 5020 Bergen, Norway, NORDEA BANK NORGE ASA, P.O. Box 1166 Sentrum, 0107 Oslo, Norway (organisation no 911 044 110), ABN AMRO BANK N.V., OSLO BRANCH, Olav
V’s gate 5, 0125 Oslo. Norway (organisation no 995 550 164) and CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, 9 Quai du President Paul Downer, F-92920 Paris La Defense, Cedex, France as mandated lead arrangers (the “Mandated
Lead Arrangers”); and 

  

	(6)	DNB BANK ASA, P.O. Box 7100 Sentrum. 5020 Bergen, Norway and NORDEA BANK NORGE ASA, P.O. Box 1166 Sentrum, 0107 Oslo, Norway (organisation no 911 044 110), as bookrunners (the
“Bookrunners”); 

  

	(7)	DNB BANK ASA, P.O. Box 7100 Sentrum. 5020 Bergen, Norway Organisation no 984 851 006), as agent (the “Agent”). 

WHEREAS 
  

	A.	The Lenders have granted the Borrower a loan in the amount of USD 93,000,000.- pursuant to a secured term loan facility agreement dated 11 July 2011 entered into between the Borrower, the Parent Guarantor, the
Lenders, the Mandated Lead Arrangers, the Bookrunners and the Agent (the “Agreement”). The outstanding principal amount under the Agreement is at the date hereof USD 89,125,000.-. 

 

	B.	The Borrower has requested that the Lenders’ consent to the Borrower becoming wholly owned, directly or indirectly, by KNOT Offshore Partners LP a Marshall Islands limited partnership organised under the laws of
the Marshall Islands listed on the New York Stock Exchange via its wholly-owned indirect subsidiary KNOT Shuttle Tankers AS. 

  

	C.	Under the proposed terms, the Borrower has requested the Lenders consent to the following: 

  

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

	 	(ii)	the release of Knutsen NYK Offshore Tankers AS as Parent Guarantor under the Agreement and it being replaced by KNOT Offshore Partners LP and KNOT Shuttle Tankers AS as new guarantors under the Agreement and a new
pledge of shares in the Borrower to be executed by KNOT Shuttle Tankers AS, replacing the previous share pledge; 

  

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

  

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

  

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

NOW IT IS HEREBY AGREED AS FOLLOWS: 
  

	1.	DEFINITIONS 

  

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

  

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

“Amended and Restated Facility Agreement” 

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

means the date when (i) the transfer of ownership of the Borrower from the Parent Guarantor to KNOT Shuttle Tankers AS has occurred,
(ii) the conditions listed in Clause 3.01 and 3.02 have been fulfilled and (iii) the Guarantors have acknowledged in writing the Agent’s notice of Effective Date. 

 

	2.	REPRESENTATION AND WARRANTIES 

  

	2.01	Each of the Borrower and the Guarantors represents and warrants to the Agent (on behalf of the Finance Parties) that the representations and warranties listed in chapter 16 in the Amended and Restated Facility
Agreement are true and comet on the date hereof. 

  

	3.	CONDITIONS 

  

	3.01	The obligations of the Finance Parties to accept as from the Effective Date La. (i) KNOT Offshore Partners LP and KNOT Shuttle Tankers AS as new Guarantors and (ii) certain amendments to the financial
covenants in the Agreement shall be subject to the condition that the Agent (on behalf of the Finance Parties) has received the following documents in form satisfactory to the Agent and its legal advisors (to the extent not satisfied as a condition
precedent to the drawing under the Agreement): 

  

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

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

  

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

  

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

  

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

  

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

 

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

 

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

 

	 	(i)	A duly executed Compliance Certificate, and 

  

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

  

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

 

	 	(l)	Satisfactory evidence that KNOT Shuttle Tankers AS is the direct owner of 100 % of the shares and voting rights in the Borrower; and 

 

	 	(m)	A copy of the Sale Purchase Agreement entered into between the Parent Guarantor and KNOT Shuttle Tankers AS in respect of the shares in the Borrower; and 

 

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

  

	 	(i)	the Share Charge, and 

  

	 	(ii)	the Guarantees. 

  

	 	(o)	The Manager Subordination Letter duly signed by the Manager; 

	 	(p)	Evidence that:- 

  

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

  

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

  

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

  

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

  

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

  

	 	(r)	Satisfactory evidence that all fees in accordance with Clause 3.02 below has been paid, and 

  

	 	(s)	Favourable legal opinions as the Agent may require from the jurisdictions involved, including Norway and Marshall Islands. 

  

	3.02	Further, the obligation of the Lenders to accept the requests listed in Whereas D shall be subject to that the Borrower shall pay to the Agent (on behalf of the Finance Parties) on demand all costs, expenses and
disbursements (including but not limited to legal fees and printing, publication and travelling expenses) incurred by the Finance Parties in negotiation, preparation and completion of this Supplemental Agreement and the Security Documents and the
maintenance, protection and enforcement of any of their rights thereunder. 

  

	4.	TRANSFER OF GUARANTORS AND OWNERSHIP 

  

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

 

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

  

	 	(b)	KNOT Shuttle Tankers AS will execute a pledge of 100% of the shares in the Borrower in favour of the Agent on behalf of the Finance Parties and the Swap Banks. 

 

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

  

	5.	AMENDMENTS TO THE AGREEMENT 

  

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

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

  

	5.03	Subject only to the modifications set out in this Supplemental Agreement, the Agreement shall remain in fill force and effect and binding upon the Finance Parties, the Guarantors and the Borrower.

  

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

  

	6.	APPLICABLE LAW 

  

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

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

 EXECUTION PAGE 
  

	
	The Borrower:
	
	KNUTSEN SHUTTLE TANKERS 13 AS
	
	 /s/ BJØRN SANDE URTEGAARD

	
	Bjørn Sande Urtegaard
	 Attorney-in-fact

	Name in block letters
	
	The Parent Guarantor:
	
	KNUTSEN NYK OFFSHORE TANKERS AS
	
	 /s/ BJØRN SANDE URTEGAARD

	
	Bjørn Sande Urtegaard
	 Attorney-in-fact

	Name in block letters
	
	The Guarantor:
	
	KNOT OFFSHORE PARTNERS LP
	
	 /s/ ARILD VIK

	
	 Arild Vik

	Name in block letters
	
	The Guarantors:
	
	KNOT SHUTTLE TANKERS AS
	
	 /s/ BJØRN SANDE URTEGAARD

	
	Bjørn Sande Urtegaard
	 Attorney-in-fact

	Name in block letters

					
	The Lenders:	 		 	
			
	DNB BANK ASA	 		 	ABN AMRO BANK N.V. OSLO BRANCH
			
	 /s/ ERIK HOFFMANN-DAHL
	 		 	 /s/ ERIK HOFFMANN-DAHL

			
	Erik Hoffmann-Dahl	 		 	Erik Hoffmann-Dahl
	 Attorney-in-Fact
	 		 	 Attorney-in-Fact

	Name in block letters	 		 	Name in block letters
			
	NORDEA BANK NORGE ASA	 		 	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK
			
	 /s/ ERIK HOFFMANN-DAHL
	 		 	 /s/ ERIK HOFFMANN-DAHL

			
	Erik Hoffmann-Dahl	 		 	Erik Hoffmann-Dahl
	 Attorney-in-Fact
	 		 	 Attorney-in-Fact

	Name in block letters	 		 	Name in block letters
			
	The Mandated Lead Arrangers:	 		 	
			
	DNB BANK ASA	 		 	ABN AMRO BANK N.V. OSLO BRANCH
			
	 /s/ ERIK HOFFMANN-DAHL
	 		 	 /s/ ERIK HOFFMANN-DAHL

			
	Erik Hoffmann-Dahl	 		 	Erik Hoffmann-Dahl
	 Attorney-in-Fact
	 		 	 Attorney-in-Fact

	Name in block letters	 		 	Name in block letters
			
	NORDEA BANK NORGE ASA	 		 	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK
			
	 /s/ ERIK HOFFMANN-DAHL
	 		 	 /s/ ERIK HOFFMANN-DAHL

			
	Erik Hoffmann-Dahl	 		 	Erik Hoffmann-Dahl
	 Attorney-in-Fact
	 		 	 Attorney-in-Fact

	Name in block letters	 		 	Name in block letters

	
	The Bookrunners:
	
	DNB BANK ASA
	
	 /s/ ERIK HOFFMANN-DAHL

	
	Erik Hoffmann-Dahl
	 Attorney-in-Fact

	Name in block letters
	
	NORDEA BANK NORGE ASA
	
	 /s/ ERIK HOFFMANN-DAHL

	
	Erik Hoffmann-Dahl
	 Attorney-in-Fact

	Name in block letters
	
	The Agent:
	
	DNB BANK ASA
	
	 /s/ ERIK HOFFMANN-DAHL

	
	Erik Hoffmann-Dahl
	 Attorney-in-Fact

	Name in block letters

 Execution Version 

SCHEDULE 1 
 Form of
Amended and Restated Facility Agreement 
 (To form part of this Supplemental Agreement as if set out in full herein) 

 Dated 11 July 2011 

as amended 11 July 2013 

FORM OF 
 AMENDED AND
RESTATED 
 USD 93,000,000.- 

TERM LOAN FACILITY AGREEMENT 

between 
 KNUTSEN SHUTTLE
TANKERS 13 AS 
 as Borrower 

and 
 KNOT OFFSHORE PARTNERS LP

 KNOT SHUTTLE TANKERS AS 

as Guarantors 
 THE BANKS AND
FINANCIAL INSTITUTIONS 
 listed in Schedule 1 

as Lenders 
 and 

DNB BANK ASA 
 NORDEA
BANK NORGE ASA 
 ABN AMRO BANK N.V. OSLO BRANCH 

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK 

as Mandated Lead Arrangers 
 and

 DNB BANK ASA 

NORDEA BANK NORGE ASA 
 as
Bookrunners 
 and 
 DNB BANK
ASA 
 as Agent 
  

 
 Relating to a
USD 93,000,000.- 
 Term Loan Facility Agreement 

“CARMEN KNUTSEN” 
  

 
 WIKBORG /
REIN 

 TABLE OF CONTENTS 

 

							
	CLAUSE	  	PAGE	 
			
	 1.
	 	 DEFINITIONS AND INTERPRETATION
	  	 	1	  
			
	 2.
	 	 THE COMMITMENT AND NATURE OF OBLIGATIONS
	  	 	11	  
			
	 3.
	 	 PURPOSE
	  	 	12	  
			
	 4.
	 	 CONDITIONS PRECEDENT
	  	 	12	  
			
	 5.
	 	 DRAWDOWN
	  	 	12	  
			
	 6.
	 	 REPAYMENT
	  	 	13	  
			
	 7.
	 	 PREPAYMENT
	  	 	13	  
			
	 8.
	 	 INTEREST PERIODS
	  	 	15	  
			
	 9.
	 	 INTEREST
	  	 	15	  
			
	 10.
	 	 PAYMENTS
	  	 	16	  
			
	 11.
	 	 SECURITY
	  	 	18	  
			
	 12.
	 	 TAXES
	  	 	18	  
			
	 13.
	 	 MARKET DISRUPTION
	  	 	19	  
			
	 14.
	 	 INCREASED COSTS
	  	 	19	  
			
	 15.
	 	 ILLEGALITY
	  	 	20	  
			
	 16.
	 	 REPRESENTATIONS AND WARRANTIES
	  	 	21	  
			
	 17.
	 	 UNDERTAKINGS
	  	 	23	  
			
	 18.
	 	 DEFAULT
	  	 	30	  
			
	 19.
	 	 THE AGENT AND THE MANDATED LEAD ARRANGERS
	  	 	34	  
			
	 20.
	 	 FEES
	  	 	38	  
			
	 21.
	 	 EXPENSES
	  	 	38	  
			
	 22.
	 	 INDEMNITIES
	  	 	39	  
			
	 23.
	 	 CALCULATIONS
	  	 	39	  
			
	 24.
	 	 AMENDMENTS AND WAIVERS
	  	 	39	  
			
	 25.
	 	 CHANGES TO THE PARTIES
	  	 	40	  
			
	 26.
	 	 PRO RATA SHARING
	  	 	41	  
			
	 27.
	 	 SEVERABILITY
	  	 	42	  
			
	 28.
	 	 NOTICES
	  	 	43	  
			
	 29.
	 	 JURISDICTION
	  	 	44	  
			
	 30.
	 	 GOVERNING LAW
	  	 	44	  

  
 i 

					
	 SCHEDULES
	  	 PAGE

			
	(1)	 	 Lenders and commitments
	  	
			
	(2)	 	 Conditions precedent documents
	  	
			
	(3)	 	 Form of Drawdown Notice
	  	
			
	(4)	 	 Form of Renewal Notice
	  	
			
	(5)	 	 Form of Compliance Certificate
	  	

  
 ii 

 THIS AGREEMENT (the “Agreement”) is made the 11 July 2011 between as amended by
first supplemental agreement dated 11 July 2013 (the “First Supplemental Agreement”): 
  

	F.	KNUTSEN SHUTTLE TANKERS 13 AS, P.O Box 2017, 5504 Haugesund, Norway, (organisation no 996 661 016) as borrower (the “Borrower”); 

 

	G.	KNOT OFFSHORE PARTNERS LP, with registered address at Trust Company Complex, Ajeltake Island, Ajeltake Road, Majuro, Marshall Islands MH96960 and executive office at 2 Queen’s Cross, Aberdeen, Aberdeenshire
AB15 4YB, United Kingdom, and 

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

	H.	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule I as lenders (the “Lenders”); 

  

	I.	DNB BANK ASA P.O.Box 7100 Sentrum. 5020 Bergen, Norway, NORDEA BANK NORGE ASA, P.O,Box 1166 Sentrum, 0107 Oslo, Norway (organisation no 911 044 110), ABN AMRO BANK N.V., OSLO BRANCH, Olav
V’s gate 5, 0125 Oslo. Norway (organisation no 995 550 164) and CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, 9 Quai du President Paul Downer, F-92920 Paris La Defense, Cedex, France as mandated lead arrangers (the “Mandated
Lead Arrangers”); and 

  

	J.	DNB BANK ASA P.O.Box 7100 Sentrum. 5020 Bergen, Norway and NORDEA BANK NORGE ASA, P.O.Box 1166 Sentrum, 0107 Oslo, Norway (organisation no 911 044 110), as bookrunners (the “Bookrunners”);

  

	K.	DNB BANK ASA P.O.Box 7100 Sentrum. 5020 Bergen, Norway (organisation no 984 851 006), as agent (the “Agent”). 

This loan facility agreement sets out the terms and conditions upon and subject to which the Lenders will continue to make available to the Borrower a term
loan facility up to USD 93,000,000.-. 
 IT IS HEREBY AGREED as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	Definitions 

 In this Agreement and the preamble hereof; 

“Approved Register” 
 means the Norwegian
International Ship Register, the Malta Ship Register or a ship register to be approved by the Lenders. 
 “Approved Shipbrokers”

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

 “Book Equity” 

means the book value of equity as determined in accordance with NORGAAP. 

“Break Costs” 
 means the amount (if
any) by which: 
  

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

 exceeds: 

 

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

 “Builder”

 means Hyundai Heavy Industries Co. Ltd. 

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

“Charterer” 
 means Repsol YPF Trading Y
Transporte S.A. 
 “Charterparty” 

means the time charterparty dated 30 November 2010 entered into between the Charterer and the Borrower with a period of 60 months from the Delivery Date
at a minimum net t/c-rate of USD 55,720.- per day. 
 “Charterparty Assignment” 

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

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

  
 2 

 “Compliance Certificate” 

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

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

means 2 January 2013. 
 “Drawdown Date”

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

“Drawdown Notice” 
 means a request made
by the Borrower for the drawdown of the Loan, substantially in the form set out in Schedule 3 (Form of Drawdown Notice). 
 “Earnings”

 means all moneys whatsoever which are now, or later become, payable (actually or contingently) to the Borrower, and which arise out of the use of the
Vessel, including (but not limited to): 
  

	(a)	all freight, hire and passage moneys payable to the Borrower, including (without limitation) payments of any nature under any charter or agreement for the employment, use, or possession of the Vessel; 

 

	(b)	any claim under any guarantees related to freight and hire payable to the Borrower as a consequence of the use of the Vessel; 

  

	(c)	compensation payable to the Borrower in the event of any requisition of the Vessel or for the use of the Vessel by any government authority or other competent authority; 

 

	(d)	remuneration for salvage, towage and other services performed by the Vessel payable to a Borrower; 

  

	(e)	demurrage and retention money receivable by the Borrower in relation to the Vessel; all moneys which are at any time payable under the Insurances in respect of loss of earnings; 

 

	(f)	all moneys which are at any time payable under the Insurances in respect of loss of earnings; 

  

	(g)	if and whenever the Vessel is employed on terms whereby any moneys falling within paragraph (a) to (f) above are pooled or shared with any other person, that proportion of the net receipts of the relevant
pooling or sharing arrangement which is attributable to the Vessel; and 

  

	(h)	any other money whatsoever due or to become due to the Borrower from third parties in relation to the Vessel, or otherwise. 

  
 3 

 “Earnings Account” 

means the Borrower’s account no 1250.04.69461 with the Agent. 

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

“Event of Default” 
 means any of the
events specified as such in Clause 18 (Default). 
 “Factoring Agreement” 

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

means the date falling the earlier of (i) 60 months after the Delivery Date and (ii) 31 March 2018. 

“Finance Documents” 
 means this
Agreement and the Security Documents. 
 “Finance Parties” 

means the Agent, the Mandated Lead Arrangers and the Lenders, 

“Financial Indebtedness” 
 means any
indebtedness for or in respect of: 
  

	(a)	moneys borrowed; 

  

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

  

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

  
 4 

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

 

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

  

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

 

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

  

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

“Free Liquidity” 
 means the aggregate
value of; 
  

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

  

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

 

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

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

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

“Guarantees” 
 means the irrevocable and
unconditional on-demand guarantees issued by each of the Guarantors, as security for the Borrower’s obligations under this Agreement. 

“Guarantors” 
 means KNOT Offshore
Partners LP and KNOT Shuttle Tankers AS. 
 “Insurances Assignment” 

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

  
 5 

 “Interest Bearing Debt” 

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

means the last day of each Interest Period. 

“Interest Period” 
 means each period
determined in accordance with Clause 8. 
 “LIBOR” 

means for any Interest Period: 
  

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

 

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

“Limited Partnership Agreement” 
 means
the partnership agreement dated 15 April 2013 in respect of the limited partnership KNOT Offshore Partners LP. 
 “Loan” 

means an amount of up to but not exceeding the lower of (i) USD 93,000,000.- and (ii) 85 % of the Project Cost. 

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

“Majority Lenders” 
 means, at any time,
Lenders whose participation in the Loan (or the Total Commitment if no amount is outstanding) aggregate at least 66 2/3 per cent at any relevant time. 

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

  
 6 

 “Manager” 

means KNOT Management AS, Smedasundet 40, P.O.Box 2017, 5501 Haugesund (enterprise no 996 124 916). 

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

means 2.50 % per annum. 
 “Market
Value” 
 means with respect to the Vessel, the fair market value of the Vessel in USD determined by calculating the arithmetic mean of two
independent valuations of the Vessel obtained from two Approved Shipbrokers. Such valuations to be made – on charter free basis – with or without physical inspection of the Vessel (as the Agent may require), on the basis of a sale for
prompt delivery for cash at arm’s length on normal commercial terms as between a willing buyer and seller. If the two valuations differ by a margin of over 10 %, then a third Approved Shipbroker shall provide a valuation and the fair
market value shall be the authentic mean of the three valuations. All valuations shall be at the Borrower’s cost. 
 “Material Adverse
Effect” 
 means, in the reasonable opinion of any of the Lenders, a material adverse effect on: 

 

	(a)	the financial condition, property assets, nature of assets, operations, liabilities, condition (financial or otherwise) or prospects of any of the Obligors or the MLP Group (on a consolidated basis); or

  

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

  

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

  

	(d)	the rights or remedies of the Lenders under the Finance Documents. 

 “MLP Group” 

means KNOT Offshore Partners LP and its Subsidiaries. 

“Mortgage” 
 means a first priority ship
mortgage in the amount of USD 111,600,000.- against the Vessel executed by the Borrower in favour of the Agent (on behalf of the Finance Parties and the Swap Banks), or in favour of the Finance Parties as the Lenders may require, including a
declaration of pledge or a deed of covenants where relevant, as security for the Finance Documents and the Swap Agreements, in a form and substance required by the Lenders, and being recorded against the Vessel in an Approved Register with first
priority. 

  
 7 

 “NOK” 

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

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

means, collectively, the Borrower and the Guarantors. 

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

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

means the contract price of the Vessel, interest cost prior to Delivery, building supervision, spares and fees, all as evidenced to the satisfaction of the
Lenders estimated to USD 110,000,000.- by which the contract price for the Vessel pursuant to the Shipbuilding Contract is USD 100,058,400.-. 

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

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

 means a date for repayment of an instalment as determined according to Clause 6.1 (Repayment). 

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

  
 8 

 “Security Interest” 

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

means all the shares in the Borrower. 
 “Share
Pledge” 
 means a first priority share pledge in the Shares, executed or to be executed by KNOT Shuttle Tankers AS in favour of the Agent (on
behalf of the Finance Parties and the Swap Banks) as security for the Finance Documents and the Swap Agreements in the terms and form as the Agent may require. 

“Shipbuilding Contract” 
 means the
shipbuilding contract dated 18 March 2011 between the Builder and the Borrower in respect of the Vessel. 
 “Sponsor” 

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

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

means an agreement or agreements to be entered into by any of the Swap Banks and the Borrower for the purpose of interest and currency swap transactions
related to the Loan and any contract or transaction made thereunder. 
 “Swap Banks” 

means Nordea Bank Finland Plc., the Mandated Lead Arrangers or any of them. 

“Swap Banks Subordination Statement” 

means a statement executed or to be executed by the Swap Banks in favour of the Finance Parties, subordinating the Swap Banks’ rights under the Security
Documents to the Finance Parties’ rights. 

  
 9 

 “Tax on Overall Net Income” 

of a Lender shall be construed as a reference to tax imposed on that Lender by the jurisdiction under the laws of which it has been incorporated or in which
it is located on (1) the net income, profits or gains of that Lender world wide or (ii) such of the net income, profits or gains of that Lender as are considered to arise in or to relate to or are taxable in that jurisdiction. 

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

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

means the aggregate of the Lenders’ Commitments. 

“Total Loss” 
 means 

 

	(a)	the actual, constructive, compromised, agreed, arranged or other total loss of the Vessel 

  

	(b)	the Vessel being rendered permanently unfit for use and 

  

	(c)	any hijacking, theft, condemnation, capture, seizure, destruction, abandonment, arrest, expropriation, confiscation, requisition or acquisition of the Vessel, whether for full consideration, a consideration less than
its proper value, a nominal consideration or without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a governmental or official authority unless it is within one
(1) month from the Total Loss Date redelivered to the full control of any of the Obligors. 

 “Total Loss Date”

 means 
  

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

 

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

 

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

  
 10 

 “Transaction Documents” 

means this Agreement, the Security Documents, the Management Agreement, the Manager Subordination Letter, the Shipbuilding Contract, the Swap Agreements, the
Chartetparty, the Limited Partnership Agreement and the agreements or documents contemplated herein or therein. 
 “USD” 

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

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

means the 157,000 dwt Sueztnax shuttle tanker “CARMEN KNUTSEN”. 

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

 

	1.2	Construction 

  

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

  

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

  

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

  

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

 

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

  

	2.	THE COMMITMENT AND NATURE OF OBLIGATIONS 

  

	2.1	Commitment 

 Subject to the terms of this Agreement the Lenders will continue to grant the Borrower a
secured term loan facility of an aggregate maximum amount up to USD 93,000,000, 
  

	2.2	Nature of rights and obligations of the Lenders 

  

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

  

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

  
 11 

	3.	PURPOSE 

  

	(a)	The purpose of the Loan is to assist the Borrower in the part-financing of the Project Costs. 

  

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

 

	4.	CONDITIONS PRECEDENT 

  

	4.1	Documentary conditions precedent 

  

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

  

	4.2	Further conditions precedent 

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

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

  

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

  

	4.3	Waiver of conditions precedent 

 The conditions specified in this Clause 4 (Conditions Precedent) are
solely for the benefit of the Finance Parties and may be waived on their behalf in whole or in part and with or without conditions by the Agent (acting on the instructions of all the Lenders unless it is a non-material matter of administrative or
technical character where the Agent may act in its sole discretion). The Finance Parties shall be notified by the Agent of a waiver granted pursuant to this Clause 4. 
  

	5.	DRAWDOWN 

  

	5.1	Drawdown Notice 

  

	(a)	The Borrower shall not later than 10:00 a.m. (London time) three (3) Business Days prior to a requested Drawdown Date, or on such later date as may be agreed by the Lenders, serve to the Agent the Drawdown Notice
which, once received by the Agent, shall be irrevocable. 

  

	(b)	 The Lenders shall upon confirmation from the Agent that the Agent has received a duly completed Drawdown Notice and subject to the terms and
conditions of this Agreement, and 

  
 12 

	 	
provided that no Default has occurred and is continuing or is threatened, make the requested Loan available to the Borrower through the Agent in one disbursement on the requested Drawdown Date.

  

	(c)	The giving of the Drawdown Notice by the Borrower shall be deemed to constitute a representation and warranty by the Borrower that all the representations and warranties set forth in Clause 16 (Representations and
warranties) hereof are true and correct as of such date as if made on such date, that the conditions specified in Clause 4 (Conditions precedent) have been or will upon the Drawdown Date be fully performed, and that no Default has occurred and is
continuing or is threatened. 

  

	(d)	The Borrower shall only be entitled to serve a Drawdown Notice to the Agent during the relevant Availability Period for the Loan. Any amount not drawn within the relevant Availability Period shall be cancelled.

  

	6.	REPAYMENT 

  

	6.1	Repayment 

 Without prejudice to the Lenders’ rights under this Agreement, the Loan shall be repaid
by (i) 20 consecutive quarterly instalments each in the amount of USD 1,937,500.- the first instalment falling due 3 months after the Delivery Date and (ii) by one final instalment (balloon) in the amount of USD 54,250,000.- falling due
simultaneously as the 20th instalment referred to under (i) above. 
  

	6.2	Final Maturity Date 

 On the Final Maturity Date the Borrower shall pay to the Agent on behalf of the
Lenders all amounts then outstanding under the Loan, together with all other sums due and outstanding under the Finance Documents at such date (if any). 
  

	7.	PREPAYMENT 

  

	7.1	Voluntary prepayment and cancellation 

  

	(a)	The Borrower may, by giving not less than ten (10) Business Days prior written notice to the Agent, prepay the Loan in whole or in part on any Business Day subject to Break Costs, if any in an amount being a
minimum of USD 5,000,000.- and an integral multiple of USD 1,000,000.- in each case. 

  

	(b)	The Borrower may, by giving not less than ten (10) Business Days prior written notice to the Agent without penalty, cancel the whole or any undrawn part of the Total Commitment, but if in part, in an amount being a
minimum of USD 5,000,000.-. Any such cancellation shall reduce each Lender’s Commitment on a pro rata basis. 

  

	7.2	Additional right of prepayment 

 If: - 

 

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

  

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

  
 13 

 then, without prejudice to the obligations of the Borrower under those Clauses, the Borrower may, subject to
Clause 7.5 (Miscellaneous provisions) and 22.2 (Other indemnities) whilst the circumstances continue, serve a notice of prepayment and cancellation on that Lender through the Agent. On the date falling five Business Days after the date of service of
the notice: - 
  

	(c)	the Borrower shall prepay that Lenders’ participation in the Loan; and 

  

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

  

	7.3	Mandatory prepayment due to a sale, Total Loss or termination of the Charterparty 

 Upon; 

 

	(a)	termination of or material changes to the Charterparty; or 

  

	(b)	a sale of the Vessel (after the Lenders’ written consent); or 

  

	(c)	a Total Loss; 

 then all amounts outstanding on this Agreement shall be due and payable and be immediately
repaid in full. Any part of the Loan not drawn shall be cancelled. 
  

	7.4	Mandatory prepayment – Market Value 

 If the Market Value falls below 100% or 125% (as the case may
be according to Clause 17.21) of the Loan at any time, the Borrower shall, unless otherwise agreed with the Agent (on behalf of the Finance Parties) within 30 days after being notified in writing by the Agent of such non-compliance, either: 

 

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

  

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

 required to restore the aforesaid ratio. 
  

	7.5	Miscellaneous provisions 

  

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

  

	(b)	All prepayments under this Agreement shall be made together with accrued interest on the amount prepaid and any amounts due in respect of such prepayment under Clause 22.2 (Other indemnities). 

 

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

  

	(d)	Ally amount prepaid shall be applied as payment of the remaining instalments on a pro rata basis. 

  
 14 

	8.	INTEREST PERIODS 

  

	8.1	Duration and selection 

  

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

 

	(b)	The Borrower shall, by serving the Renewal Notice to the Agent not later than 10:00 a.m. (London time) five Business Days before the beginning of each Interest Period, specify the duration of that Interest Period. The
Renewal Notice shall constitute a representation and warranty to the effect that, on the date of that notice, the representations and warranties in Clause 16 remain true and correct and that no Default has occurred and is continuing or is
threatening. 

  

	(c)	Subject to the following provisions of this Clause 8, each Interest Period shall be for a period of three or six months, or such other period acceptable to the Lenders. 

 

	(d)	If the Borrower fails to select an Interest Period in accordance with paragraph (a) above, that Interest Period will, subject to the other provisions of this Clause 8, be three (3) months. 

 

	8.2	Non-Business Days 

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

	8.3	No overrunning 

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

	8.4	Notification 

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

	9.	INTEREST 

  

	9.1	Payment of interest 

 The Borrower shall pay interest on the Loan at the rate per annum determined by the
Agent to be the aggregate of: 
  

	(i)	The Margin; and 

  

	(ii)	LIBOR. 

  

	9.2	Due dates 

  

	(a)	Except as otherwise provided in this Agreement, accrued interest on the Loan is payable by the Borrower on the last day of each Interest Period. 

 

	(b)	If the Interest Period is longer than three (3) months, accrued interest shall be paid every three (3) months during that Interest Period and on the last day of that Interest Period. 

  
 15 

	9.3	Default interest 

 If an Event of Default has occurred and is continuing and the Agent has given notice
to the Borrower, the Borrower shall pay interest from such date notice is given to be the aggregate sum of 2.0 per cent per annum and the Margin plus the documented costs the Lenders will incur in financing such sums for such periods as the
Lenders shall determine. Interest under this Clause 9.3 shall be payable by the Borrower upon written demand from the Agent. 
  

	9.4	Notification 

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

	9.5	Effective Interest Rate 

 It is not possible to calculate the effective interest rate on this Agreement
in advance. The Lenders are nevertheless, according to the Finance Contracts Act (Finansavtaleloven) obliged to give a representative example. LIBOR for six months was at 6 July 2011 0,25 % per annum. Provided unaltered LIBOR and Margin for the
duration of the Loan, the effective interest rate will be 2,92 % for the Loan. 
  

	9.6	Break Costs 

  

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

  

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

 

	10.	PAYMENTS 

  

	10.1	Place 

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

	10.2	Funds 

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

 

	10.3	Distribution 

  

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

  
 16 

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

  

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

 

	10.4	Currency 

  

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

  

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

  

	10.5	Set-off and counterclaim 

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

	10.6	Non-Business Days 

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

	10.7	Partial payments 

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

 

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

  

	(b)	secondly, in or towards payment pro rata of any accrued fees due but unpaid under Clause 20 (Fees); 

  

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

  
 17 

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

  

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

  

	(f)	sixthly in or towards payment pro rata of any other sum due but unpaid under the Swap Agreements 

  

	11.	SECURITY 

  

	11.1	Security 

 The Borrower’s obligations under the Finance Documents, including without limitation the
obligation to repay the Loan together with all unpaid interest, default interest, commissions, charges, expenses and any derived liability whatsoever of the Borrower in connection with the Finance Documents shall be secured as follows: 

 

	 	(i)	the Mortgage; 

  

	 	(ii)	the Insurances Assignment; 

  

	 	(iii)	the Charterparty Assignment; 

  

	 	(iv)	the Factoring Agreement; 

  

	 	(v)	the Guarantees; 

  

	 	(vi)	the Pledge of Accounts; 

  

	 	(vii)	the Share Pledge. 

  

	11.2	Swap Agreements 

 The Lenders will, subject to the Swap Banks Subordination Statement allow the Swap
Banks to participate in the Security Documents on a subordinated basis. 
  

	11.3	Set-off 

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

	12.	TAXES 

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

  
 18 

	13.	MARKET DISRUPTION 

  

	13.1	Market Disruption 

  

	(a)	If a Market Disruption Event occurs in relation to the Loan for any Interest Period, then the rate of interest on each Lender’s share of the Loan for the Interest Period shall be the percentage rate per annum which
is the sum of: 

  

	 	(i)	the Margin; 

  

	 	(ii)	the rate notified to the Agent by that Lender as soon as practicable and in any event by close of business on the date falling 10 Business Days after the Quotation Day (or, if earlier, on the date falling 20 Business
Days prior to the date on which interest is due to be paid in respect of that Interest Period), to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Loan from whatever source it may
reasonably select. 

  

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

  

	 	(i)	at or about noon on the Quotation Day for the relevant Interest Period LIBOR is not available; or 

  

	 	(ii)	before close of business in London on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 50 per cent of that Loan)
that the cost to it of funding its participation in the Loan from whatever source it may reasonably select would be in excess of LIBOR. 

  

	13.2	Alternative basis of interest or funding 

  

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

  

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

 

	14.	INCREASED COSTS 

  

	14.1	Increased costs 

  

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

  

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

 

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

  
 19 

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

  

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

 

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

  

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

  

	 	(iv)	the amount of any payment made by a Lender, or the amount of any interest or other return foregone by a Lender, calculated by reference to any amounts received or receivable by that Lender from the Agent or the Borrower
under this Agreement, all as certified by the relevant Lender, such certificate to set out in reasonable detail the circumstances giving rise to the claim for payment of increased costs and the calculations of the amount claimed and shall be
conclusive evidence, save for manifest error, of the amount due from the Borrower, 

  

	14.2	Exceptions 

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

 

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

  

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

  

	15.	ILLEGALITY 

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

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

 

	(b)	the Borrower shall forthwith (or at such later date as may be permitted by the relevant law) without premium or penalty other than as set out in Clause 22.2 (Other indemnities), prepay that Lender’s participation
in all amounts payable by it to that Lender under this Agreement; and 

  

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

  
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	16.	REPRESENTATIONS AND WARRANTIES 

  

	16.1	Representations and warranties 

 Each Obligor makes the representations and warranties set out in this
Clause 16 to each of the Finance Parties. 
  

	16.2	Status and ownership 

  

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

  

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

 

	(c)	KNOT Offshore Partners LP is a duly constituted and properly incorporated company with limited liability under Marshall Islands law, owned at least 33.3% by the Sponsor (directly or indirectly). 

 

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

 

	16.3	Powers and authority 

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

 

	16.4	Legal validity and enforceability 

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

 

	16.5	Non-conflict 

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

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

  

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

  
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	16.6	No Money Laundering 

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

	16.7	No Default 

  

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

  

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

  

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

 

	16.8	Authorisations 

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

 

	16.9	Environmental issues 

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

	16.10	Financial information 

  

	(a)	The audited consolidated accounts of the Obligors: 

  

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

  

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

  

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

  
 22 

	16.11	Litigation 

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

	16.12	Pari passu 

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

	16.13	No withholding Taxes 

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

	16.14	No material adverse change 

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

	16.15	Times for making representations and warranties 

 The representations and warranties set out in this
Clause 16 are made by the Obligors on the Effective Date and are deemed to be repeated by the Borrower on the date of each Renewal Notice, as well as the first day in each Interest Period, with reference to the facts and circumstances then existing,
unless otherwise notified to the Agent in writing, and if not permitted under this Agreement, waived by the Majority Lenders prior to such dates. 
  

	17.	UNDERTAKINGS 

  

	17.1	Duration 

 The undertakings in this Clause 17 remain in force throughout the Loan Period. 

  
 23 

	17.2	Financial information 

  

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

  

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

  

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

 

	 	(iii)	as soon as practicable (but in any event prior to each fiscal year) budget, projections including profit and loss, balance sheet and cash flow forecasts including supporting schedules and calculations for the Obligors
and the MLP Group. 

  

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

 

	 	(v)	appraisal reports from two Approved Brokers on a semi-annual basis (in case of an Event of Default, upon the request of the Agent) stating the Market Value of the Vessel. 

 

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

  

	17.3	Information – Miscellaneous 

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

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

  

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

 

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

 

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

  
 24 

	17.4	Notification of Default 

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

	17.5	Insurances 

  

	(a)	The Borrower shall as from the Delivery Date for the Vessel maintain the Vessel insured against such risks (including, but not limited) to Hull and Machinery, Hull Interest, Freight Interest, Protection &
Indemnity (including highest possible maximum cover of at least USD 1,000,000,000 for the Vessel for pollution), Loss of Hire (cover at least 180 days with a maximum of 14 days deductible) and War Risk insurances (including War Risks, P & I and
terrorism, piracy and confiscation to the maximum extent), in such amount, on such terms (always applying Norwegian law and including the terms of the Norwegian Marine Insurance Plan of 1996 version 2010 and/or the Nordic Marine Insurance Plan of
2013 or equivalent terms in relation to losses payable thereunder) and with such insurers and through such brokers as the Agent on behalf of the Lenders shall approve. 

For the avoidance of doubt, any changes to the arrangements for war and allied perils (including piracy) coverage whereby trading to
conditional (excluded) areas which are not declared to the annual policy shall be considered an Event of Default (as set out in this Agreement) unless any alternative insurance arrangements have been submitted to and approved by the Agent in
advance. 
  

	(b)	The insurable value of the Vessel (Hull and Machinery (including Hull Interest and Freight Interest) and war risk) shall be equal to or higher than the Market Value of the Vessel arid 120 per cent of the Loan.

  

	(c)	The Borrower shall procure that the Agent (on behalf of the Finance Parties) is noted as first priority mortgagee in the insurance contracts, together with the confirmation from the underwriters to the Agent that the
notice of assignment with regards to the Insurances and the loss payable clauses (with a minimum amount of USD 1,000,000) are noted in the insurance contracts and that standard letters of undertaking confirming this is executed, always provided that
the evidence thereof is in form and substance satisfactory to the Agent (on behalf of the Finance Parties). The Borrower shall provide the Finance Parties with details of terms and conditions of the insurances and break down of insurers.

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

 

	(d)	The Agent shall (at the Borrower’s expense) take out a Mortgagee Interest Insurance (covering 110 per cent of the principal amount outstanding hereunder) and may at request of any of the Lenders (at the
Borrower’s expense) take out a Mortgagee Interest - Additional Perils Insurance (Pollution Cover) insurance (covering 110 per cent of the principal amount outstanding hereunder) relevant to the Vessel in a form and substance satisfactory
to the Agent, such policy to be made in favour of the Agent (acting on its own behalf and on behalf of the Lenders), or, if so directed by the Agent, arrange for such insurance cover to be taken out in accordance with instructions from the Agent.

  
 25 

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

  

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

  

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

 

	17.6	Notification 

 The Borrower shall immediately notify the Agent of: 

 

	(a)	any accident to the Vessel involving repairs the cost of which is likely to exceed USD 1,000,000.-; 

  

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

  

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

  

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

  

	17.7	Total loss 

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

	17.8	Class and International Regulations 

  

	(a)	The Borrower shall procure that the Vessel is classified and maintained in class with the highest possible class notation, free of overdue recommendations, with a classification society that is a member of the
International Association of Classification Societies, and at all times comply with the rules and regulations of the relevant class society. Furthermore, the Borrower shall at all times ensure Compliance with all requirements of the International
Convention for Safety of Life at Sea (SOLAS) 1874 as adopted, amended or replaced from time to time including, but not limited to, the STCW 95, the ISM Code and/or the ISPS Code (as each is defined in the respective amendments to SOLAS). Upon
receipt of the Agent’s written request, the Borrower shall instruct the classification society to send to the Agent, copies of all information, documents and class records held by the classification society in relation to the Vessel.

  

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

  
 26 

	17.9	Flag and register 

  

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

  

	(b)	The Borrower shall not change the flag or the ship registry of the Vessel or allow the Vessel to be dual registered without the prior written consent of the Lenders. 

 

	17.10	Environmental regulations 

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

	17.11	Sale of Vessel 

 The Borrower shall not agree to sell the Vessel without the prior written consent of the
Lenders. 
  

	17.12	Management Agreement 

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

 

	17.13	Charterparty 

 The Borrower shall not make any amendment or supplement to, or waiver of the terms of, the
Charterparty without the prior written consent of the Lenders. 
  

	17.14	Negative Pledge 

 Except as contemplated by this Agreement and/or the Security Documents, the Borrower
shall not create, incur or assume any Security Interest on the Vessel or any of its other assets, and not make any assignment of right to receive Earnings or proceeds of insurance policies covering the Vessel. 

 

	17.15	Investments 

 The Borrower shall not make any investments and/or acquisitions. 

 

	17.16	Loans and indebtedness 

 Expect as contemplated by this Agreement and/or the Security Documents the
Borrower shall not; 
  

	(a)	incur any Financial Indebtedness (except for exposure under the Swap Agreements) of any nature or incur any debt or obligations 

  

	(b)	grant any loans or issue any guarantee which is not related to the ordinary operation of the Vessel 

  

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

  
 27 

	17.17	Dividend and other payments 

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

	17.18	Accounts 

  

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

  

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

 

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

 

	17.19	Transactions with affiliates 

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

	17.20	Maintenance and change of business 

  

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

  

	(ii)	The Borrower shall not enter into any form of amalgamation, merger or demerger, divest or consolidate with any other entity or any form of reconstruction or reorganisation without the prior written consent of the
Lenders, save for merger of ship owning companies in the MLP Group with the intention to simplify the MLP Group structure, and not having any negative effect for the Lenders. 

 

	(iii)	None of the Obligors will change end of its fiscal year. 

  

	(iv)	None of the Obligors will change its legal name. 

  

	17.21	Market Value 

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

 

	(a)	The Borrower shall ensure that in year 1 - 4 after the Delivery Date (for avoidance of doubt, if the Delivery Date is 26 July 2013, until 26 July 2017) the Market Value of the Vessel covers at all times
100 % of the Loan. 

  

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

  
 28 

	17.22	Laws, regulations and statutes 

  

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

  

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

  

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

  

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

 

	(e)	The Obligors shall not, and shall procure that none of their respective managers, agents or representatives shall breach any criminal laws or regulations passed for the combat of corruption or bribing (howsoever
described), including laws similar or identical to the provisions set out in Sections 276 a. through 276 c. of the Norwegian Penal Act of 22 May 1802 No. 10. 

 

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

  

	(g)	Each Obligor will comply with all terms of the Finance Documents at all times. 

  

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

  

	17.23	Interest and currency hedging 

 The Swap Banks shall have the first right of refusal in relation to any
interest hedging or other derivative products relating to the Vessel. 
  

	17.24	Chartering in of vessels 

 The Borrower shall not charter-in any vessels or units. 

 

	17.25	Intercompany loans - Guarantors  

  

	(a)	The Guarantors’ rights in connection with intercompany loans shall be subordinated to the rights of the Lenders under this Agreement until all obligations under this Agreement are fully paid or discharged; and

  

	(b)	the Guarantors do explicitly waive the right to declare any breach or default of any intercompany loan, to declare bankruptcy of the Borrower, or to take any action against assets of the Borrower as long as any amount
is outstanding under this Agreement; and 

  

	(c)	no security shall be granted in relation to any intercompany loan, without the prior written consent of the Agent. 

  
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	18.	DEFAULT 

  

	18.1	Events of Default 

 Each of the events set out in Clauses 18.2 to 18.27 (inclusive) is an Event of
Default (whether or not caused by any reason whatsoever outside the control of the Borrower or any other person). 
  

	18.2	Non-payment 

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

	18.3	Breach of other obligations 

 The Borrower does not comply with any provision of any Finance Document
(other than those referred to in Clause 18.2 (Non-payment)), provided that it shall not constitute an Event of Default: 
  

	(a)	if 

  

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

  

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

  

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

 or 

 

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

For the avoidance of doubt and without prejudicing whether any other breach is or is not capable of remedy, a breach of Clause 17.5 (Insurances) shall in any
event be deemed not to be capable of remedy. 
  

	18.4	Breach under the Security Documents 

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

	18.5	Misrepresentation 

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

  
 30 

	18.6	Cross-default 

  

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

  

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

  

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

  

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

 

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

 

	18.7	Liens 

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

  

	18.8	Insolvency 

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

 

	18.9	Admittance of non-payment 

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

	18.10	Termination of business 

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

	18.11	Permits 

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

  
 31 

	18.12	Impossibility or illegality 

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

	18.13	Transaction Documents 

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

	(i)	is amended or terminated, 

  

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

  

	(iii)	any waivers are agreed thereunder. 

  

	18.14	Material adverse change 

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

	18.15	Events in Security Documents 

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

	18.16	Mergers, demerger and reconstructions 

 Any of the Obligors effects any demerger, merger, joint
venture, reconstruction, splitup or divest without the prior written consent of the Lenders, except as permitted by Clause 17.20, (ii) (Maintenance and change of business). 

 

	18.17	Change of ownership - the Borrower 

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

	18.18	Change of ownership - KNOT Offshore Partners LP 

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

 

	18.19	Change of ownership - the General Partner 

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

  
 32 

	18.20	Free Liquidity 

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

	18.21	Working Capital 

 The Borrower at any time as from the Delivery Date has a negative Working Capital. 

 

	18.22	Minimum Equity Ratio 

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

	18.23	EBITDA 

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

	18.24	Loss of property 

 Any part of the MIT Group’s business or assets is destroyed, abandoned, ceased,
appropriated or forfeited for any reason. 
  

	18.25	Failure to comply with final judgement 

 Any of the Obligors fails within five (5) Business Days
after becoming obliged to do so to comply with or pay any sum due from it under any final judgement or final order. 
  

	18.26	Listing 

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

 

	18.27	General Partner 

  

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

  

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

  

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

  
 33 

	18.28	Acceleration 

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

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

  

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

  

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

  

	19.	THE AGENT AND THE MANDATED LEAD ARRANGERS 

  

	19.1	Appointment and duties of the Agent 

 Each Lender hereby appoints the Agent to act as its agent under and
in connection with this Agreement, and authorises the Agent on its behalf to perform the duties and to exercise the rights, powers and discretion that are specifically delegated to it under or in connection with this Agreement, together with any
other incidental reasonable rights, powers and discretion. The Agent has only those duties which are expressly specified in this Agreement. Without prejudice to the binding nature of such duties, they are solely of a mechanical and administrative
nature. 
  

	19.2	Relationship 

  

	(a)	The relationship between the Agent and the Lenders is that of agent and principal only. Nothing in this Agreement constitutes the Agent as trustee or fiduciary for any other Party or any other person and the Agent needs
not to hold in trust any moneys paid to it for a Party or be liable to account for interest on those monies. 

  

	(b)	Unless otherwise stated or agreed, the Security Documents are or will be executed in favour of the Agent on behalf of the Lenders and the Agent shall hold and keep the Security Documents for the benefit of the Lenders.

  

	19.3	The Lenders’ directions 

 The Agent will be fully protected if it acts in accordance with the
instructions or (as the case may be) the consent of the Majority Lenders in connection with the exercise of any right, power or discretion or any matter not expressly subject to the instructions or (as the case may be) the consent of the Lenders.
Any such instructions given by the Majority Lenders will be binding on all the Lenders. In the absence of such instruction, the Agent may act in relation thereto as it reasonably considers to be in the best interests of all the Lenders. The Agent
may not commence legal proceedings in a Lender’s name without such Lender’s consent. 

  
 34 

	19.4	Responsibility for documentation 

 Save for their gross negligence or wilful misconduct neither the
Agent, the Mandated Lead Arrangers nor any of their officers, employees or agents are responsible to any other Party for: 
  

	(a)	the execution, genuineness, validity, enforceability or sufficiency of this Agreement or any other document; 

  

	(b)	the collectability of amounts payable under this Agreement; or 

  

	(c)	the accuracy of any statements (whether written or oral) made in or in connection with this Agreement and/or any of the Transaction Documents. 

 

	19.5	Default 

  

	(a)	The Agent is not obliged to monitor or enquire as to whether or not a Default has occurred. The Agent will not be deemed to have knowledge of the occurrence of a Default. However, if the Agent receives notice from a
Party referring to this Agreement, describing the Default and stating that the event is a Default, or if the Agent in this capacity has otherwise acquired actual knowledge of a Default, it shall promptly notify the Lenders. 

 

	(b)	The Agent may require the receipt of security satisfactory to it from any Lender, whether by way of payment in advance or otherwise, against any liability or loss which it will or may incur in taking any proceedings or
action arising out of or in connection with this Agreement before it commences those proceedings or takes that action. 

  

	19.6	Exoneration 

  

	(a)	Without limiting paragraph (b) below, the Agent will not be liable to any Lender for any detrimental result of any action taken or not taken by it under or in connection with this Agreement, unless such detrimental
result is caused by its gross negligence or wilful misconduct. 

  

	(b)	No Party may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind (including negligence or
wilful misconduct) by that officer, employee or agent in relation to this Agreement. 

  

	(c)	Nothing in this Agreement shall oblige the Agent to early out any “know your customer” or other checks in relation to any person on behalf of any Lender and each Lender confirms to the Agent that it is solely
responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent. 

  

	19.7	Reliance 

 The Agent may: 
  

	(a)	rely on any notice or document believed by it to be genuine and correct and to have been signed by, or with the authority of, the proper person; 

 

	(b)	rely on any statement made by a director or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify; and 

 

	(c)	engage, pay for and rely on legal or other professional advisers selected by it (including those in the Agent’s employment and those representing a Party other than the Agent). 

  
 35 

	19.8	Approval and appraisal 

 Without affecting the responsibility of the Borrower for information supplied by
it or on its behalf in connection with this Agreement, each Lender confirms that it: 
  

	(a)	has made its own independent investigation and assessment of the financial condition and affairs of the Borrower and its related entities in connection with their participation in this Agreement and has not relied
exclusively on any information provided to it by the Agent or the Mandated Lead Arrangers in connection with this Agreement; and 

  

	(b)	will continue to make its own independent appraisal of the creditworthiness of the Borrower, and its related entities while any amount is or may be outstanding under this Agreement or any Commitment is in force.

  

	19.9	Information 

  

	(a)	The Agent shall promptly forward to the person concerned the original or a copy of any document which is delivered to the Agent by a Party for that person. 

 

	(b)	The Agent shall supply each Lender with an execution copy of this Agreement and a copy of each other document received by the Agent under Clause 4 (Conditions Precedent). 

 

	(c)	Except where this Agreement specifically provides otherwise, the Agent is not obliged to review or check the accuracy or completeness of any document it forwards to another Party. 

 

	19.10	The Agent and the Mandated Lead Arrangers as Lenders 

  

	(a)	The Agent and the Mandated Lead Arrangers, as Lenders, have the same rights and powers under this Agreement as any other Lender and may exercise those rights and powers as though each was not, as the case may be, the
Agent or the Mandated Lead Arrangers. 

  

	(b)	The Agent and the Mandated Lead Arrangers may: 

  

	 	(i)	carry on any business with the Borrower or its related entities; 

  

	 	(ii)	act as agent or trustee for, or in relation to any financing involving, the Borrower or its related entities; and 

  

	 	(iii)	retain any profits or remuneration in connection with their activities under this Agreement or in relation to any of the foregoing. 

  

	19.11	Indemnities 

  

	(a)	Without limiting the liability of the Borrower under this Agreement, each Lender shall forthwith on demand indemnify the Agent for its proportion of any liability or loss incurred by the Agent in any way relating to or
arising out of its acting as Agent, except to the extent that the liability or loss arises from the Agent’s gross negligence or wilful misconduct or unless to the extent the liability or loss is reimbursed by the Borrower. 

  
 36 

	(b)	A Lender’s proportion of the liability or loss set out in paragraph (a) above will be the proportion which its participation in the Loan bears on the date of the demand. If, however, there is no part of the
Loan outstanding on the date of demand, then the proportion will be the proportion which its Commitment bears to the Total Commitment of all the Lenders at the date of demand or, if the Commitment has then been cancelled, bore to the Total
Commitment immediately before being cancelled. 

  

	(c)	The Borrower shall forthwith on demand reimburse each Lender for any payment made by it under paragraph (a) above. 

  

	(d)	Without prejudice to the liability of the Borrower, each Lender shall reimburse the Agent and the Mandated Lead Arrangers the amount corresponding to such Lender’s pro rata share of charges and expenses covered,
but not reimbursed by the Borrower under, Clause 21 (Expenses) below. 

  

	19.12	Compliance 

  

	(a)	The Agent may refrain from doing anything which might, in its opinion, constitute a breach of any law or regulation or be otherwise actionable at the suit of any person, and may do anything which, in its opinion, is
necessary or desirable to comply with any law or regulation of any jurisdiction. 

  

	(b)	Without limiting paragraph (a) above, the Agent needs not to disclose any information relating to the Borrower or any of its related entities if the disclosure might, in the reasonable opinion of the Agent,
constitute a breach of any law or regulation or be otherwise actionable at the suit of any person. 

  

	19.13	Resignation of the Agent 

  

	(a)	If the Majority Lenders so direct, due to a default by the Agent hereunder, or due to a conflict of interest between the Agent’s duties hereunder and other interests the Agent may have which involve the Borrower,
the Agent shall resign by giving notice to the Lenders and the Borrower, in which case the Majority Lenders may, after consultation with, but with no costs for, the Borrower, appoint a successor Agent. 

 

	(b)	The Agent may resign (without reason) its appointment at any time by giving a 30 days’ prior written notice to the parties hereto. The resignation shall only become effective upon the appointment of a new agent.
The Lenders may appoint a new agent among any reputable and experienced finance institution. Upon the appointment of a new agent, such new agent shall assume all rights and obligations from such time designated by the Agent, and the Agent shall from
such time be discharged from any further obligations hereunder. 

  

	19.14	Lenders 

 The Agent may treat each financial institution listed in Schedule 1 as a Lender, entitled to
payments under this Agreement until it has received not less than five Business Days’ prior notice from that financial institution to the contrary. The Agent shall maintain a list of the Lenders and their respective addresses for notices, and
shall, promptly upon request from any Party from time to tune, supply a copy of that list to that Party. 

  
 37 

	19.15	Publications 

 The Agent and/or the Mandated Lead Arranger(s) have the right, at its own expense, to
publish information about its participation in and the agency and arrangement of the Loan and for such purpose use the Borrower’s and/or the Guarantors’ logo and trademark in connection with such publication. 

 

	20.	FEES 

  

	20.1	Commitment fee 

 Intentionally left blank 

 

	20.2	Arrangement fee 

 Intentionally left blank 

 

	20.3	Agency fee 

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

	21.	EXPENSES 

  

	21.1	Initial and special costs 

 The Borrower shall promptly following demand from the Agent pay the Agent the
amount of all costs, taxes, expenses (including internal and external legal fees), collateral fees, VAT and “out of pocket” expenses incurred by the Agent or the Mandated Lead Arrangers and/or the Lenders in connection with: 

 

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

 

	(b)	execution and registration of the Security Documents; 

  

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

  

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

  

	21.2	Enforcement costs 

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

  
 38 

	22.	INDEMNITIES 

  

	22.1	Currency indemnity 

  

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

  

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

 

	22.2	Other indemnities 

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

 

	(a)	the occurrence of any Event of Default; 

  

	(b)	the operation of Clause 18.28 (Acceleration); 

  

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

 

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

  

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

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

	23.	CALCULATIONS 

 Interest and fees payable under Clauses 9 (Interest) and 20 (Fees) accrue from day to day
and are calculated on the basis of the actual number of days elapsed and a year of 360 days. 
  

	24.	AMENDMENTS AND WAIVERS 

  

	24.1	Majority Lenders 

  

	(a)	Subject to Clause 24.2 (All Lenders), any term of this Agreement and the Security Documents may only be amended or waived with the written agreement of the Borrower and, if authorised by the Majority Lenders, the Agent.
The Agent shall effect, on behalf of the Majority Lenders, any amendment or waiver to which they have agreed. 

  

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

  
 39 

	24.2	All Lenders 

 An amendment or waiver which relates to: 

 

	(a)	reduction of the Margin and the commitment fees, 

  

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

 

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

  

	(d)	extension of the Availability Period, 

  

	(e)	change of this Clause 24.2, 

  

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

 

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

  

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

 may not be effected without the consent of each
Lender. 
  

	24.3	Waivers and remedies cumulative 

 The rights of the Finance Parties under the Finance Documents: 

 

	(a)	may be exercised as often as necessary; 

  

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

  

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

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

	25.	CHANGES TO THE PARTIES 

  

	25.1	Transfer by the Borrower 

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

	25.2	Transfers by Banks 

  

	(a)	A Lender (the “Existing Lender”) may at any time assign and transfer any of its rights and/or obligations under this Agreement to any of its subsidiaries or to another bank or financial institution subject to;

  

	 	(i)	approval from the Agent; and 

  

	 	(ii)	payment of a transfer fee of USD 3,000.- to the Agent. 

  
 40 

 The Affiliate or bank or institution or entity being the “New Lender”. 

 

	(b)	A transfer of obligations will be effective only if the New Lender confirms to the Agent and the Borrower that it undertakes to be bound by the terms of this Agreement as a Lender in form and substance satisfactory to
the Agent. On the transfer becoming effective in this manner the Existing Lender shall be relieved of its obligations under this Agreement to the extent that they are transferred to the New Lender. 

 

	(c)	An Existing Lender is not responsible to a New Lender for: 

  

	 	(i)	the execution, genuineness, validity, enforceability or sufficiency of this Agreement or any other document; 

  

	 	(ii)	the collectability of amounts payable under this Agreement; or 

  

	 	(iii)	the accuracy of any statements (whether written or oral) made in or in connection with this Agreement. 

  

	(d)	Each New Lender confirms to the Existing Lender and the other Lenders that it: 

  

	 	(i)	has made its own independent investigation and assessment of the financial condition and affairs of the Borrower and its related entities in connection with its participation in this Agreement and has not relied
exclusively on any information provided to it by the Existing Lender in connection with this Agreement; and 

  

	 	(ii)	will continue to make its own independent appraisal of the creditworthiness of the Borrower and its related entities while any amount is or may be outstanding under this Agreement or any Commitment is in force.

  

	(e)	Any reference in this Agreement to a Lender includes a New Lender but excludes a Lender if no amount is or may be owed to or by it under this Agreement and its Commitment has been cancelled or reduced to nil.

  

	(f)	(f Costs in connection with documenting (hereunder reasonable amendments and recordings) the transfer by the Lenders hereunder shall be for the account of the Lenders. 

 

	(g)	A Lender may disclose to a prospective New Lender, such information about the Borrower and/or the Transaction Documents as such Lender shall consider appropriate. 

 

	26.	PRO RATA SHARING 

  

	26.1	Redistribution 

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

 

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

  
 41 

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

  

	(c)	subject to Clause 26.3 (Exceptions), the recovering Lender shall, within three (3) Business Days of demand by the Agent, pay to the Agent an amount (the “redistribution”) equal to the excess;

  

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

  

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

  

	26.2	Reversal of redistribution 

 If under Clause 26.1 (Redistribution): 

 

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

  

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

 each Lender shall, within three
Business Days of demand by the recovering Lender through the Agent, reimburse the recovering Lender all or the appropriate portion of the redistribution paid to that Lender. Thereupon, the subrogation in Clause 26.1 (e) will operate in reverse
to the extent of the reimbursement. 
  

	26.3	Exception 

  

	(a)	A recovering Lender needs not to pay a redistribution to the extent that it would not, after the payment, have a valid claim against the Borrower in the amount of the redistribution pursuant to Clause 26.1 (e).

  

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

  

	27.	SEVERABILITY 

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

  
 42 

	28.	NOTICES 

  

	28.1	Giving of notices 

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

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

  

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

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

	28.2	Addresses for notices 

  

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

 

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

  

					
	(i)	  	of the Agent is:
		
		  	DNB Bank ASA
		  	P.O.Box 7100 Sentrum
		  	N – 5020 Bergen – Norway
		  	Fax.:	  	+47 55 21 19 24
		  	Attn.:	  	Shipping Department
		
	(ii)	  	of the Borrower is:
		
		  	Knutsen Shuttle Tankers 13 AS
		  	Smedasundet 40P.O.Box 2017
		  	N – 5504 Haugesund
		  	Norway
		  	Telefax:	  	+47 52 70 40 40
		  	Attn.:	  	CFO

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

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

  

	(d)	The Agent shall, promptly upon request from any Party, give to that Party the address and/or the telefax number of any other Party applicable at the time for the purposes of this Clause 28.2. 

  
 43 

	29.	JURISDICTION 

 For the benefit of the Agent, each Lender and the Obligors agrees that the courts of
Norway have jurisdiction to settle any disputes in connection with this Agreement. 
 The Obligors herewith submits to the non-exclusive jurisdiction of the
Oslo district court. Nothing in this Clause 29 shall limit the right of the Agent or any Lender to start proceedings against the Obligors in any other court of competent jurisdiction. 

 

	30.	GOVERNING LAW 

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

o o o O o o o 

  
 44 

 SCHEDULE 1 

Lenders and Commitments 
  

					
	 	  	Total USD	 
	 DNB

Bank ASA

P.O.Box 7100 Sentrum

5020 Bergen

Norway
	  	 	23.250.000	  
	 Nordea Bank

Norge ASA

P.O.Box 1166 Sentruin

0107 Oslo

Norway
	  	 	23.250.000	  
	 ABN AMRO Bank N.V. Oslo Branch, Olav V’s gate 5, 0125 Oslo. Norway
	  	 	21250.000	  
	 Credit Agricole Corporate and Investment Bank, 9 Quai du President Paul Doumer, F-92920 Paris La Defense, Cedex, France
	  	 	23.250.000	  
		  	  
	  
	 
	 Total
	  	 	93.000.000	  
		  	  
	  
	 

  
 Schedule 1 

 SCHEDULE 2 

CONDITIONS PRECEDENT DOCUMENTS 

Intentionally left blank 

  
 Schedule 1 

 SCHEDULE 3 

Form of 
 Drawdown Notice 

 

					
	To:	  	DNB Bank ASA as Agent
		
		  	P.O.Box 7100 Sentrum
		  	N – 5020 Bergen - Norway
			
		  	Tel.:	  	+47
		  	Fax.:	  	+47
		  	Attn.:	  	[                    ]
		  	S.W.I.F.T. Code: [                    ]

 Date:                  2011 

USD 93,000,000 LOAN AGREEMENT DATED 11 JULY 2011 (THE “AGREEMENT”) 

We refer to Clause 5 of the Agreement. Capitalized terms used in this Drawdown Notice and not defined herein shall have the same meaning given to them in the
Agreement. 
  

	1.	We wish to draw the Predelivery Tranche (            ) / Delivery Tranche as follows: 

 

	 	(a)	Drawdown Date:                      

 

	 	(b)	Amount(s) of the Tranche:                      

 

	 	(c)	Interest Period:                      

 

	 	(d)	Instructions for payment of the Tranche:                      

 

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

 

	3.	We further confirm that: 

  

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

  

	 	(b)	the representations and warranties contained in Clause 16 (Representation and Warranties) of the Agreement are true and correct at the date hereof as if made with respect to the facts and circumstances existing at such
date. 

  

			
	By:	 	
	
	KNUTSEN SHUTTLE TANKERS 13 AS
	
	Authorised Signatory

  
 Schedule 1 

 SCHEDULE 4 

Form of Renewal Notice 
  

					
	To:	  	DNB Bank ASA as Agent
		
		  	P.O.Box 7100 Sentrum
		  	N – 5020 Bergen - Norway
			
		  	Tel.:	  	+47
		  	Fax.:	  	+47
		  	Attn.:	  	[                    ]
		  	S.W.I.F.T. Code: [                    ]

 Date:                  2011 

USD 93,000,000 LOAN AGREEMENT DATED 11 JULY 2011 (THE “AGREEMENT”) 

We refer to Clause 8.1 (a) in the Agreement. Capitalized terms used in this Renewal Notice and not defined herein shall have the meaning given to them in
the Agreement. 
 We hereby: 
  

	1.	request an Interest Period in respect of [e] months from the next Interest Payment Day; and 

  

	2.	confirm that 

  

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

  

	 	(ii)	the representations and warranties contained in Clause 16 (Representations and warranties) of the Agreement are true and correct at the date hereof as if made with respect to the facts and circumstances existing at such
date. 

  

			
	By:	 	
	
	KNUTSEN SHUTTLE TANKERS 13 AS
	
	Authorised Signatory

  
 Schedule 1 

 SCHEDULE 5 

Form of 
 Compliance Certificate

  

			
	To:	  	DNB Bank ASA
		  	Attn:
		  	Telefax No.

 Date:
(                    ) 
 SECURED TERM LOAN FACILITY
AGREEMENT DATED 11 JULY 2011 (THE “AGREEMENT”) 
 With reference to the Agreement we hereby confirm as follows: 

 

					
	 FREE LIQUIDITY - KNOT Offshore Partners LP
  

Requirement > USD 15,000,000.-
  

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

 
 From the time KNOT Offshore Partners LP and its subsidiaries own in total eight (8)
vessels, the minimum free liquidity requirement of USD 15,000,000.- set out above shall be increased by USD 1,000,000.- for each additional vessel acquired by KNOT Offshore Partners LP or any subsidiary, plus USD1,500,000.- for each owned vessel
with employment contract with less than 12 months remaining tenor.)
	  	g	  	Compliance: Yes / No
			
	 WORKING CAPITAL - the Borrower (as from the Delivery Date)
  

Requirement > 0
	  	g	  	Compliance: Yes / No
			
	 EBITDA - KNOT Offshore Partners LP (consolidated)
  

A      EBITDA
  

B      Interest costs

 
 Requirement A/B>2.5
	  	g	  	Compliance: Yes / No
			
	 MINIMUM EQUITY RATIO - MLP Group
  

A      Book Equity

 
 B      Total
Assets
  
 Requirement A/B > 30%
	  	g	  	Compliance: Yes / No

  
 Schedule 1 

					
	MARKET VALUE VESSEL - ref Clause (                    )	  		  	
			
	A = Market Value Vessel	  	USD	  	
			
	 B = Loan
  

Requirement :
  

(i)     Year 1-4 A > 100 % of B

 
 (ii)    Year 5 A > 125 %
of B
  
 Valuation report from
[                    ] dated
[                    ] enclosed
  

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

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

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

			
	Changes of auditors	  		  	

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

			
	KNUTSEN SHUTTLE TANKERS 13 AS
		
	By:	 	CFO
		
	Date:	 	  

	
	KNOT OFFSHORE PARTNERS L.P
		
	By:	 	CFO
		
	Date	 	  

	
	KNOT SHUTTLE TANKERS AS
		
	By:	 	CFO
		
	Date	 	  

  
 Schedule 2 

 EXECUTION PAGE 
  

									
	The Borrower:	 		 		 		 	
				
	KNUTSEN SHUTTLE TANKERS 13 AS	 		 		 	
					
	  
	 		 		 		 	
					
	  
	 		 		 		 	
	Name in block letters	 		 		 		 	
					
	The Guarantor:	 		 		 		 	
				
	KNOT OFFSHORE PARTNERS LP	 		 		 	
					
	  
	 		 		 		 	
					
	  
	 		 		 		 	
	Name in block letters	 		 		 		 	
					
	The Guarantor:	 		 		 		 	
				
	KNOT SHUTTLE TANKERS AS	 		 		 	
					
	  
	 		 		 		 	
					
	  
	 		 		 		 	
	Name in block letters	 		 		 		 	
					
	The Lenders:	 		 		 		 	
					
	DNB BANK ASA	 		 		 	 ABN AMRO BANK
 N.V. OSLO
BRANCH
	 	
					
	  
	 	  
	 		 	  
	 	  

					
	  
	 		 		 	  
	 	
	Name in block letters	 		 		 	Name in block letters	 	

  

									
	NORDEA BANK NORGE ASA	 		 	CREDIT AGRICOLE	 	
		 		 		 	CORPORATE AND	 	
		 		 		 	INVESTMENT	 	
	BANK	 		 		 		 	
					
	  
	 		 		 	  
	 	
					
	  
	 		 		 	  
	 	
	Name in block letters	 		 		 	Name in block letters	 	
				
	The Mandated Lead Arrangers:	 		 		 	
					
	DNB BANK ASA	 		 		 	ABN AMRO BANK	 	
		 		 		 	N.V. OSLO BRANCH	 	
					
	  
	 		 		 	  
	 	
					
	  
	 		 		 	  
	 	
	Name in block letters	 		 		 	Name in block letters	 	
				
	NORDEA BANK NORGE ASA	 		 	CREDIT AGRICOLE	 	
		 		 		 	CORPORATE AND	 	
		 		 		 	INVESTMENT	 	
	BANK	 		 		 		 	
					
	  
	 		 		 	  
	 	
					
	  
	 		 		 	  
	 	
	Name in block letters	 		 		 	Name in block letters	 	
					
	The Bookrunners:	 		 		 		 	
					
	DNB BANK ASA	 		 		 		 	
					
	  
	 		 		 		 	
					
	  
	 		 		 		 	
	Name in block letters	 		 		 		 	
				
	NORDEA BANK NORGE ASA	 		 		 	
					
	  
	 		 		 		 	
					
	  
	 		 		 		 	
	Name in block lettersEX-4.21

 Exhibit 4.21 

SHARE PURCHASE AGREEMENT 

Between 
 Knutsen NYK
Offshore Tankers AS 
 (as Seller) 

And 
 KNOT Shuttle
Tankers AS 
 (as Buyer) 
  

 
 for the sale and
purchase of the shares in 
 Knutsen Shuttle Tankers 13 AS 

 
  

 SHARE PURCHASE AGREEMENT 

This agreement (this “Agreement”) is entered into the 11 July, 2013 between: 

(1) Knutsen NYK Offshore Tankers AS, company registration no. 995 221 713 

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

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

 

	1	RECITALS 

 WHEREAS: 
  

	a)	Knutsen Shuttle Tankers 13 AS, company registration no. 996 661 016, is a private limited liability company that has as its purpose to engage in shipowning activities, is duly incorporated under Norwegian law and
has its registered place of business in Haugesund, Norway (the “Company”); 

  

	b)	The Seller is the sole owner of the ownership interest in the Company, with a share capital of NOK 200,000; 

  

	c)	The Company is the owner of the MT “Carmen Knutsen”, having IMO No. 9623635 (the “Vessel”); and 

  

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

 

	2	DEFINITIONS 

 In this Agreement, the following definitions shall have the following meanings: 

 

					
	a)	  	Accounting Principles	  	means the applicable Norwegian generally accepted accounting principles as defined by Norwegian law and regulations and accounting standards issued by the Norwegian Accounting Standards Board (Nw: Norsk
Regnskapsstiftelse/NRS), applied on a consistent basis;
			
	b)	  	Accounts	  	means, in respect of the Company, its audited annual accounts (årsregnskap), consisting of the profit and loss account, balance sheet, statement of cash flow and the notes thereto, consolidated profit and loss
account, consolidated balance sheet and statement of cash flow and the notes thereto, for the financial year ended on the Accounts Date attached as Schedule 3;

  
 2 

					
			
	c)	  	Accounts Date	  	means 31 December 2012;
			
	d)	  	Agreement	  	shall have the meaning ascribed to such term in the preamble to this Agreement;
			
	e)	  	Business	  	means the current business of the Company, being to own the Vessel, and charter the same under the Charter;
			
	f)	  	Business Day	  	means a day on which banks are open for general banking business in Norway;
			
	g)	  	Buyer	  	 shall have the meaning ascribed to such term in the preamble

to this Agreement;

			
	h)	  	Buyer Indemnitees	  	shall have the meaning ascribed to such term in Clause 12.1;
			
	i)	  	Carmen Knutsen Facility 	  	means the USD 93,000,000 pre- and post-delivery term loan facility agreement in respect of the Vessel dated July 11, 2011, made between (i) the Company as borrower, (ii) the Seller as parent guarantor, (iii) the banks and
financial institutions listed in Schedule 1 thereto as lenders, (iv) DnB NOR Bank ASA, Nordea Bank Norge ASA, ABN Amro Bank N.V. Oslo Branch and Credit Agricole Corporate and Investment Bank as mandated lead arrangers, (v) DnB NOR Bank ASA and
Nordea Bank Norge ASA as bookrunners and (vi) DnB NOR Bank ASA as agent;
			
	j)	  	Charter	  	means the Time Charter Party, dated November 30, 2010, between the Company and Repsol YPF Trading y Transporte, S.A., as amended by Addendum Nr. 1, dated November May 11, 2012, between the Company and Repsol YPF Trading y
Transporte, S.A., as assigned by Repsol YPF Trading y Transporte, S.A. to the Charterer pursuant to the Letter of Assignment, dated August 29, 2012, and as further amended by Addendum Nr. Two, dated October 31, 2012, between the Company and the
Charterer;
			
	k)	  	Charterer	  	means Repsol Sinopec Brasil, B.V.;
			
	l)	  	Closing	  	shall have the meaning ascribed to such term in Clause 5.1;
			
	m)	  	Closing Date	  	means the date when the Closing actually takes place according to Clause 5.1;
			
	n)	  	Companies Act	  	means the Norwegian Limited Liability Companies Act of 1997

  
 3 

					
	o)	  	Company	  	means Knutsen Shuttle Tankers 13 AS;
			
	p)	  	Encumbrance	  	means any mortgage, charge, pledge, lien, option or other security interest or restriction of any kind;
			
	q)	  	Indemnified Party	  	shall have the meaning ascribed to such term in Clause 12.3;
			
	r)	  	Indemnifying Party	  	shall have the meaning ascribed to such term in Clause 12.3;
			
	s)	  	Loan Agreement	  	shall have the meaning ascribed to such term in Clause 4;
			
	t)	  	Losses	  	means any loss, liability, claim, damage, expense (including costs of investigation and defence and reasonable attorneys’ fees) or diminution of value, whether or not involving a third-party claim;
			
	u)	  	Material Adverse Effect	  	means a material adverse effect on the condition (financial, commercial, technical, legal or otherwise) of the Business, assets, results of operations or prospects of the Company;
			
	v)	  	Material Agreement	  	shall have the meaning ascribed to such term in Clause 8.11;
			
	w)	  	Party	  	shall have the meaning ascribed to such term in the preamble to this Agreement;
			
	x)	  	Parties	  	shall have the meaning ascribed to such term in the preamble to this Agreement;
			
	y)	  	Partnership	  	means KNOT Offshore Partners LP, a Marshall Islands limited partnership;
			
	z)	  	Purchase Price	  	shall have the meaning ascribed to such term in Clause 4;
			
	aa)	  	Purchase Price Adjustments	  	shall have the meaning ascribed to such term in Clause 5.4a);
			
	bb)	  	Omnibus Agreement	  	means the Omnibus Agreement, dated as of April 15, 2013, by and among the Seller, the Partnership, KNOT Offshore Partners GP LLC, KNOT Shuttle Tankers 17 AS and KNOT Shuttle Tankers 18 AS;
			
	cc)	  	Seller	  	shall have the meaning ascribed to such term in the preamble to this Agreement;
			
	dd)	  	Seller Indemnitees	  	shall have the meaning ascribed to such term in Clause 12.2;
			
	ee)	  	Seller’s Credit	  	shall have the meaning ascribed to such term in Clause 4;
			
	ff)	  	Shares	  	shall have the meaning ascribed to such term in Clause 1;

  
 4 

					
	gg)	  	Signing Date	  	means the date of this Agreement;
			
	hh)	  	Taxes	  	means all taxes (including value-added tax and similar taxes), however denominated, including interest, penalties and other additions to tax that may become payable or imposed by any applicable statute, rule or regulation or any
governmental agency, including all taxes, withholdings and other charges in respect of income, profits, gains, payroll, social security or other social benefit taxes, sales, use, excise, real or personal property, stamps, transfers and workers’
compensation, which the Company is required to pay, withhold or collect; and
			
	ii)	  	Third-Party Claim	  	shall have the meaning ascribed to such term in Clause 12.3; and
			
	jj)	  	Vessel	  	shall have the meaning ascribed to such term in Clause 1.

  

	3	SALE AND PURCHASE 

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

	4	PURCHASE PRICE 

 The Seller agrees to sell and transfer to the Buyer, and the Buyer agrees to purchase
from the Seller for USD 145,000,000, less USD 89,125,000 of outstanding debt obligations under the Carmen Knutsen Facility (the “Purchase Price”), plus the Purchase Price Adjustments, all in accordance with and subject
to the terms and conditions set forth in this Agreement, the Shares. 
 The Purchase Price is to be settled by way of (a) a cash settlement in
the amount of USD 45,422,252 and (b) a seller’s credit (the “Seller’s Credit”) in the amount of USD 10,452,748 from the Seller to the Buyer, which will be documented by way of a loan agreement in form and with content
as set forth in Schedule 1 hereto (collectively, the “Loan Agreement”). The obligations of the Buyer under the Loan Agreement shall be guaranteed in full by the Partnership. 

 

	5	CLOSING 

  

	5.1	Time and place 

 Subject to the satisfaction or waiver of the conditions set forth in Clause 6,
the completion of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of the Seller at such time and date as the Parties agree.  

  
 5 

	5.2	The Seller’s Closing obligations 

 At the Closing, the Seller shall: 

 

	a)	deliver to the Buyer a copy of the minutes of the meeting of the board of directors of the Seller authorising the execution of, and the consummation of the transaction completed by, this Agreement; and

  

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

  

	5.3	The Buyer’s Closing obligations 

 At the Closing, the Buyer shall settle the Purchase Price in
accordance with Clause 4. At the Closing, the Buyer, as the borrower, shall enter into the Loan Agreement with the Seller, as lender, to evidence and document the Seller’s Credit. 

 

	5.4	Post-Closing Adjustment 

  

	a)	Within 30 days following the Closing Date, the Buyer and the Seller shall agree on the amount of the following post-Closing adjustments to the Purchase Price: 

i) the Company’s working capital as of the Closing Date; and 

ii) the intercompany balance with accumulated interest between the Company and the Seller at the Closing Date 

(jointly, the “Purchase Price Adjustments”). 
  

	b)	Within 45 days following the Closing Date, the Buyer shall pay to the Seller an amount, in cash, equal to the Purchase Price Adjustments. Any other elements than those covered by the Purchase Price Adjustments varying
in the period between the Signing Date and the Closing Date shall be for Seller’s account. 

  

	6	CLOSING CONDITIONS 

  

	6.1	Conditions to the Buyer’s Closing obligations 

 The obligations of the Buyer to purchase the Shares
and to take the other actions required to be taken by it at the Closing are subject to the satisfaction of each of the following conditions (any of which may be waived in whole or in part by the Buyer) on or before the Closing Date: 

 

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

  

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

  
 6 

	6.2	Conditions to the Seller’s Closing obligations 

 The obligations of the Seller to sell the Shares
and to take the other actions required to be taken by it at the Closing are subject to the satisfaction of each of the following conditions (any of which may be waived in whole or in part by the Seller) on or before the Closing Date: 

 

	a)	there is no material breach of any of the representations and warranties of the Buyer set forth in Clause 7; 

  

	b)	each of the Partnership and the Buyer shall substitute and replace the Seller as guarantor under the Carmen Knutsen Facility, and the Seller will be released as guarantor thereunder; and 

 

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

  

	7	REPRESENTATIONS AND WARRANTIES OF THE BUYER 

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

	7.1	Corporate existence and power 

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

 

	7.2	Corporate authorisation and non-contravention 

 This Agreement and each other document or instrument
delivered or to be delivered in connection with this Agreement has been duly authorised by all necessary corporate action(s) of the Buyer and constitutes or will, when executed, constitute valid and binding obligations of the Buyer enforceable in
accordance with its respective terms. 
 The execution by the Buyer of this Agreement and each other document or instrument delivered or to be delivered in
connection with it, and the performance by the Buyer of its obligations under this Agreement and the consummation of the transactions provided for in this Agreement, do not and will not result in a breach of any provision of the articles of
association of the Buyer or of any applicable law, order, judgment or decree of any court or governmental agency or of any agreement to which the Buyer is bound. 

The Buyer is not required to obtain any authorisations, consents, approvals or exemptions by governmental or other authority or public body in Norway in
connection with the entering into or performance of its obligations under this Agreement. 

  
 7 

	8	REPRESENTATIONS AND WARRANTIES OF THE SELLER 

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

	8.1	Corporate existence and power 

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

 

	8.2	Corporate authorisation and non-contravention 

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

Each of the Company and the Seller, as appropriate, is not required to obtain any authorisations, consents, approvals or exemptions by governmental or other
authority or public body in Norway in connection with the entering into or performance of its obligations under this Agreement. 
  

	8.3	Capitalisation and title 

 The Seller has full ownership to the Shares. The Shares are fully authorised,
validly issued, fully paid and free and clear from any Encumbrances. 
 There is no outstanding subscription, option or similar rights relating to the
Shares. 
  

	8.4	Records 

 The Company’s articles of association and shareholders’ register are true, accurate,
up-to-date and complete. 
  

	8.5	Charter documents; validity of the Charter 

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

  
 8 

	8.6	Accounts 

 The Accounts have been prepared in accordance with the Accounting Principles and in accordance
with the books and records of the Company. The Accounts give a true and accurate view of the financial position, solvency, assets, liabilities, liquidity, cash flow and the result of the operations of the Company as of the Accounts Date. 

 

	8.7	No undisclosed liabilities 

 Neither the Company nor the Vessel has any Encumbrances, or other
liabilities or obligations of any nature, whether absolute, accrued, contingent or otherwise, and whether due or to become due (including, without limitation, any liability for Taxes and interest, penalties and other charges payable with respect to
any such liability or obligation), except for such liabilities or obligations arising under the Carmen Knutsen Facility other than the Encumbrances or other liabilities or obligations appearing in the ship registry of the Vessel and those arising
under the Carmen Knutsen Facility. 
  

	8.8	Loans and other financial facilities 

 All loans and other financial facilities available to the Company
have been made available for review by the Buyer. As of the Signing Date, the principal outstanding amount under the Carmen Knutsen Facility is USD 89,125,000. As of the Signing Date, the intercompany balance with accumulated interest between the
Company and the Seller was NOK 2,977,159.70. 
 No event has occurred which gives, or after notice or lapse of time, or both, would give any third party the
right to call for repayment from the Company prior to normal maturity of any loan or other financial facility. The Company shall not be indebted, directly or indirectly, to any person who is an officer, director, stockholder or employee of any of
the Seller or any spouse, child or other relative or any affiliate of any such person, nor shall any such officer, director, stockholder, employee, relative or affiliate be indebted to the Company. 

 

	8.9	Assets 

 At the Closing Date, the Company shall not be using assets in the Business that it neither owns
nor has the right to use pursuant to written agreements with third parties. At the Closing Date, the assets of the Company will comprise all the assets necessary for carrying on the Business fully and effectively to the extent to which it is
conducted at the Signing Date. 
  

	8.10	Absence of certain changes or events 

 Since the Accounts Date, there has not occurred or arisen: 

 

	a)	any change of accounting methods, principles or practices, accounting, invoicing and supplier practice or procedures for the Company; 

 

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

 

	c)	the termination of any Material Agreement; 

  
 9 

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

 

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

  

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

  

	8.11	Agreements 

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

	8.12	Insurance 

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

	8.13	Environmental matters 

 The Company is not and has not been in breach of any applicable laws (whether
civil, criminal or administrative), statutes, regulations, directives, codes, judgments, orders or any other measures imposed by any governmental, statutory or regulatory body with regard to the pollution or the protection of the environment or to
the protection of human health or human safety, or any other living organisms supported by the environment. 

  
 10 

 There is no current governmental investigation or disciplinary proceeding relating to any alleged breach of any
law or permit by the Company, and none is pending, nor threatened. 
 The Company has not, other than as permitted under applicable permits or applicable
laws or regulations held from time to time, disposed of, discharged, released, placed, dumped or emitted any hazardous substances, such as pollutants, contaminants, hazardous or toxic materials, wastes or chemicals. Neither the Seller nor the
Company has received any formal or informal notice or other communication from which it appears that the Company may be or has been in violation of any laws or permits. There are no actual or contingent obligations on the Company to pay money or
carry out any work in order to keep or be granted an extension or renewal of any existing permit. There are no facts or circumstances that could result in such an obligation. The properties used by the Company are not made of or do not contain any
form of asbestos or any other toxic substance that may cause damage to the health of the persons working or visiting the premises. 
  

	8.14	Compliance with laws 

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

	8.15	Litigation 

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

	8.16	Taxes 

 The Company has properly filed with the appropriate Tax authorities all Tax returns and reports
required to be filed for all Tax periods ending prior to the Closing Date. Such filings are true, correct and complete. All information required for a correct assessment of Taxes has been provided. 

The Tax returns of the Company have been assessed and approved by the Tax authorities through the Tax years up to and including the years for which such
assessment and approval is required, and the Company is not subject to any dispute with any such authority. 
 All Taxes that have become due have been
fully paid or fully provided for in the Accounts, and the Company shall not be liable for any additional Tax pertaining to the period before the Accounts Date. All Taxes for the period after the Accounts Date have been fully paid when due. 

There are no Tax audits, Tax disputes or Tax litigation pending or threatened against or involving the Company. There is no basis for assessment of any
deficiency in any Taxes against the Company that has not been provided for in the Accounts or that has not been paid. 

  
 11 

 The Company is not and has not been involved in any transaction that could be considered as Tax-evasive. All
losses for Tax purposes incurred by of the Company are trading losses and are available to be carried forward and set off against income in succeeding periods without limitation and have been accepted by the relevant Tax authorities. 

The Company is not and has not been subject to any Tax outside its respective country of fiscal residence. 

 

	8.17	Relationship with the Seller 

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

 

	8.18	Information 

 All documents provided to the Buyer by or on behalf of the Seller or the Company are true
and correct, and no document provided to the Buyer by or on behalf of the Seller or the Company contains any untrue statement of a relevant fact or omits to state a relevant fact necessary to make the statements contained in the document not
misleading. 
 There are no facts or circumstances known to the Seller, relating to the affairs of the Company, that have not been disclosed to the Buyer,
which, if disclosed, reasonably could have been expected to influence the decision of the Buyer to purchase the Shares on the terms of this Agreement. 

The Seller confirms that the Seller, prior to the Signing Date, has made, and until the Closing Date, shall continue to make, all investigations necessary in
order to ensure that the statements in Clause 7 are correct. 
  

	9	REPRESENTATIONS AND WARRANTIES OF THE SELLER REGARDING THE VESSEL 

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

  
 12 

	9.1	Flag and title 

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

	9.2	Classification 

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

	9.3	Maintenance 

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

	9.4	Liens 

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

	9.5	Safety 

 The Vessel is supplied with valid and up-to-date safety, safety construction, safety equipment,
radio, loadline, health, tonnage, trading and other certificates or documents as may for the time being be prescribed by the law of Malta or of any other pertinent jurisdiction, or that would otherwise be deemed necessary by a shipowner acting in
accordance with internationally accepted standards for good ship management and operations. 
  

	9.6	No blacklisting or boycotts 

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

	9.7	No options 

 There are not outstanding any options or other rights to purchase the Vessel other than the
option held by the Buyer pursuant to the Omnibus Agreement. 
  

	9.8	Insurance 

 The insurance policies relating to the Vessel are as set forth on Schedule 2 hereto,
each of which is in full force and effect and, to the Seller’s knowledge, not subject to being voided or terminated for any reason. 
  

	10	COVENANTS PRIOR TO THE CLOSING 

  

	10.1	Covenants of the Seller Prior to the Closing 

 From the Signing Date to the Closing Date, the Seller
shall cause the Company to conduct its business in the usual, regular and ordinary course in substantially the same manner as previously conducted. The Seller shall not permit the Company to enter into any contracts or other written or

  
 13 

 
oral agreements prior to the Closing Date, other than such contracts and agreements as have been disclosed to the Buyer prior to the Signing Date, without the prior consent of the Buyer (such
consent not to be unreasonably withheld). In addition, the Seller shall not permit the Company to take any action that would result in any of the conditions to the purchase and sale of the Shares set forth in Clause 6 not being satisfied.
Furthermore, the Seller hereby agrees and covenants that it: 
  

	a)	shall use its best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary to consummate and make effective as promptly as possible the transactions contemplated by this
Agreement and to co-operate with the Buyer and others in connection with the foregoing; 

  

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

  

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

  

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

  

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

 

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

 

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

 

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

  

	10.2	Covenants of the Buyer Prior to the Closing 

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

  
 14 

	11	TERMINATION 

  

	11.1	Termination 

 This Agreement may be terminated, and the transactions contemplated by this Agreement may
be abandoned, at any time prior to the Closing Date: 
  

	a)	by either Party if a breach of any provision of this Agreement has been committed by the other Party, such breach has not been waived and such breach is material to the transactions contemplated hereby, the Business or
the assets, financial condition or prospect of the Company; 

  

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

  

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

  

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

  

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

  

	11.2	Rights on termination 

 If this Agreement is terminated pursuant to Clause 11.1, all further obligations
of the Parties pursuant to this Agreement shall terminate without further liability of a Party to the other, provided, however, that the obligations of the Parties contained in Clause 14 (Costs) and Clause 18 (Governing Law and arbitration) shall
survive such termination, and further provided, that if this Agreement is terminated by a Party because of the breach of this Agreement by the other Party or because one or more of the conditions to the terminating Party’s obligations under
this Agreement is not satisfied as a result of the other Party’s failure to comply with its obligations under this Agreement, the terminating Party’s right to pursue all legal remedies will survive such termination unimpaired. 

 

	12	INDEMNIFICATION 

  

	12.1	Indemnity by the Seller 

 Subject to Clause 13, following the Closing, the Seller shall be liable for,
and shall indemnify, defend and hold harmless the Buyer and its respective officers, directors, employees, agents and representatives (the “Buyer Indemnitees”) from and against, any Losses, suffered or incurred by such Buyer
Indemnitees: 
  

	a)	by reason of, arising out of or otherwise in respect of any inaccuracy in, breach of any representation or warranty, or a failure to perform or observe fully any covenant, agreement or obligation of, the Seller in or
under this Agreement or in or under any document, instrument or agreement delivered pursuant to this Agreement by the Seller; 

  
 15 

	b)	subject to Clause 14b), any fees, expenses or other payments incurred or owed by the Seller to any brokers, financial advisors or comparable other persons retained or employed by it in connection with the transaction
contemplated by this Agreement; or 

  

	c)	any Losses suffered or incurred by such Buyer Indemnitees in connection with any claim for the repayment of hire or Losses in relation to the Vessel for periods prior to the Closing. 

 

	12.2	Indemnity by the Buyer 

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

	12.3	Indemnification procedures with respect to third-party claims 

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

	13	OMNIBUS AGREEMENT INDEMNIFICATION 

 Notwithstanding any other provision of this Agreement, the Seller
shall be liable for, and shall indemnify, defend and hold harmless the Partnership and any person controlled by the Partnership, including the Buyer, from and against the matters set forth in Article XIII of the Omnibus Agreement, subject to the
terms and conditions set forth therein. 
 The Seller’s indemnification obligations under this Clause 13 shall only be subject to limitations insofar
as such limitations follow from Article XIII of the Omnibus Agreement. 
  

	14	COSTS 

  

	a)	Subject to Clause 14b), each party shall pay its own costs and expenses in connection with the preparation for and completion of the transactions contemplated by this Agreement, including but not limited to all fees and
expenses of its own representatives, agents, brokers, legal and financial advisers and authorities and no such costs or expenses shall be charged to or paid by, neither directly or indirectly, the Company. 

  
 16 

	b)	If, pursuant to Clause 6.2a) of the Omnibus Agreement, a mutually-agreed-upon investment banking firm, ship broker or other expert advisor is engaged to determine the fair market value of the Carmen Knutsen Interests
(as defined therein) and/or other material terms, then the fees and expenses of the investment banking firm, ship broker or other expert advisor, as applicable, will be divided equally between the Buyer and the Seller. 

 

	15	NOTICES 

 All notices, requests, demands, approvals, waivers and other communications required or
permitted under this Agreement must be in writing in the English language and shall be deemed to have been received by a Party when: 
  

	a)	delivered by post, unless actually received earlier, on the third Business Day after posting, if posted within Norway, or the fifth Business Day, if posted to or from a place outside Norway; 

 

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

  

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

All such notices and communications shall be addressed as set forth below or to such other addresses as may be given by written notice in accordance with this
Clause 15. 
 If to the Seller: 
 Knutsen NYK Offshore Tankers
AS 
 Attention: Chairman of the Board 
 Smedasundet 40,
Postboks 2017, 5504 Haugesund, Norway 
 Fax no.: +47 52 70 40 40 

If to the Buyer: KNOT Shuttle Tankers AS 
 Attention: Chairman of
the Board 
 Smedasundet 40, Postboks 2017, 5504 Haugesund, Norway 

Fax no.: +47 52 70 40 40 
  

	16	ASSIGNMENT 

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

  
 17 

	17	MISCELLANEOUS 

  

	17.1	Further Assurances 

 From time to time after the Signing Date, and without any further consideration, the
Parties agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other documents, and shall do all such other acts and things, all in accordance
with applicable law, as may be necessary or appropriate (a) more fully to assure that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges granted by this Agreement, or which are
intended to be so granted, (b) more fully and effectively to vest in the applicable Parties and their respective successors and assigns beneficial and record title to the interests contributed and assigned by this Agreement or intended so to be
and (c) more fully and effectively to carry out the purposes and intent of this Agreement. 
  

	17.2	Integration 

 This Agreement, the Schedules and Appendices hereto and the instruments referenced herein
supersede all previous understandings or agreements among the Parties, whether oral or written, with respect to its subject matter hereof. This Agreement, the Schedules and Appendices hereto and the instruments referenced herein contain the entire
understanding of the Parties with respect to the subject matter hereof and thereof. No understanding, representation, promise or agreement, whether oral or written, is intended to be or shall be included in or form part of this Agreement unless it
is contained in a written amendment hereto executed by the Parties hereto after the Signing Date. 
  

	17.3	No Broker’s Fees 

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

	18	GOVERNING LAW AND ARBITRATION 

 This Agreement shall be governed by and construed in accordance with
Norwegian law. 
 The Parties shall seek to solve through negotiations any dispute, controversy or claim arising out of or relating to this Agreement, or
the breach, termination or invalidity hereof. If the Parties fail to solve such dispute, controversy or claim by a written agreement within 60 days after one of the Parties has requested such negotiations by notice to the other Party, such dispute,
controversy or claim shall be finally settled by arbitration in Haugesund in the English language in accordance with the Norwegian Arbitration Act. The arbitration tribunal shall consist of three arbitrators, of which the Buyer shall appoint one
arbitrator and the Seller shall appoint one arbitrator. The arbitrators so appointed shall appoint the third arbitrator, who shall be the chairman of the arbitration tribunal. In the event of failure by a Party to appoint its arbitrator within 30
days after the request for arbitration first is given, or the failure by the first two arbitrators to appoint the third arbitrator within 30 days after appointment of the last of the first two arbitrators to be appointed, such arbitrator or
arbitrators shall be appointed by the district judge (No: “Sorenskriver”) of Haugesund District Court. Any Party may seek judgement upon any award in any court having jurisdiction, or an application may be made to such court for the
judicial acceptance of the award and for an order of enforcement. 

  
 18 

 Notwithstanding the above, either Party may bring an action in any court of competent jurisdiction (a) for
provisional relief pending the outcome of arbitration, including, without limitation, provisional injunctive relief or pre-judgement attachment of assets, or (b) to compel arbitration or enforce any arbitral award. For purposes of any
proceeding authorised by this Clause 17, each Party hereby consents to the non-exclusive jurisdiction of Haugesund, Norway. 
 * * * 

  
 19 

 This Agreement has been executed in two original copies, of which each Party has retained one copy. 

 

									
	 Knutsen NYK Offshore Tankers AS
	 		 	KNOT Shuttle Tankers AS
					
	By:	 	 /s/ ØYSTEIN M. KALLEKLEV
	 		 	By: 	 	 /s/ ØYSTEIN M. KALLEKLEV

	Name:	 	 Øystein M. Kalleklev
	 		 	Name:	 	 Øystein M. Kalleklev

	Title:	 	 Attorney-in-fact
	 		 	Title: 	 	 Attorney-in-fact

					
	By:	 	  
	 		 		 	
	Name:	 	  
	 		 		 	
	Title:	 	  
	 		 		 	

  
 20 

 Schedule 1 

FORM OF LOAN AGREEMENT 

SELLER’S CREDIT 
 THE
UNDERSIGNED, KNOT SHUTTLE TANKERS AS, of Smedasundet 40, 5529 Haugesund, Norway, a company registered in Norway with registration number 998 942 829 (the “Borrower”) 

HEREBY ACKNOWLEDGES that it owes to KNUTSEN NYK OFFSHORE TANKERS AS, of Smedasundet 40, 5529 Haugesund, Norway, a company registered in Norway with
registration number 995 221 713 (the “Creditor”) 
 THE INITIAL PRINCIPAL AMOUNT of USD [—] (the “Loan Amount”), pursuant to the terms and conditions of this seller’s credit (the “Seller’s Credit”) as set out below: 

 

			
	Interpretation:	  	Capitalised terms not otherwise defined in this Seller’s Credit shall have the meanings ascribed to them in Schedule 1.
		
	Undertaking to pay:	  	The Borrower irrevocably and unconditionally undertakes to pay to the Creditor the Loan Amount together with any other amount outstanding under this Seller’s Credit on the Maturity Date.
		
	Maturity Date:	  	The date falling 5 years after the date of signing of this Seller’s Credit, or such other date as mutually agreed between the Borrower and the Creditor.
		
	Interest:	  	 Until this Seller’s Credit is repaid in accordance with the terms set out herein, interest shall accrue on the Loan Amount and be
payable in accordance with the following conditions:
  

a)      Interest shall accrue during the period from and including Closing (as defined
in the SPA) and ending on the day preceding the due date for repayment of this Seller’s Credit.
  

b)      The interest on the Loan Amount is fixed semi-annually based on the 6 months
forward swap LIBOR, plus a margin fixed to 450 bps (4.50%) per annum.
  

c)      Accrued interest on the Loan Amount shall accumulate, be compounded with the
Loan Amount at the end of each consecutive six month period (the first of which starting on the date on which the Loan is made available to the Borrower) and be payable at the end of each such consecutive six month period.

 
 d)      Interest is
calculated from day to day on the basis of the actual number of days elapsed and a year of 360 days.

  
 21 

			
		  	 e)      Interest ceases to accrue on this Seller’s Credit as from the date on which this
Seller’s Credit is fully repaid.

		
	Default interest:	  	If the Borrower fails to pay any amount payable by it under this Seller’s Credit, or if an Event of Default occurs, the applicable interest on the overdue Loan Amount and accrued interest upon such failure to pay or Event of
Default shall accrue at a rate of eight per cent. (8.00%) per annum from the due date or the date an Event of Default occurred (as the case may be), to the date of actual payment.
		
	No set-off by Borrower:	  	All payments to be made by the Borrower under this Seller’s Credit shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim, unless explicitly agreed in a separate
agreement.
		
	Repayment:	  	 Unless previously repaid, the Borrower shall repay this Seller’s Credit in full on the Maturity Date at par together with accrued
interest up to (but excluding) the Maturity Date.
  
 The Borrower may at any time,
prepay in whole or in part this Seller’s Credit with five (5) Business Days notice. No prepayment fee applies to any such early prepayment.
  

All payments under this Seller’s Credit shall be made to such account as the Creditor from time to time notifies to the Borrower.

		
	Priority and subordination:	  	 This Seller’s Credit shall constitute senior debt obligations of the Borrower and has priority over any shareholder loans (to the
Borrower) and equity provided by its owners.
  
 Notwithstanding the foregoing, the
obligations of the Borrower and the claims of the Creditor under this Seller’s Credit shall – if the Borrower, the Guarantor or the Target becomes insolvent or enters into bankruptcy proceedings – be fully subordinated to claims of
the Senior Banks in respect of the Senior Bank Debt Guarantee Obligations.

		
	 Guarantee:
	  	The obligations of the Borrower under this Seller’s Credit shall at all times until the Loan Amount, together with any and all amounts outstanding hereunder are repaid in full, be fully and irrevocably guaranteed by KNOT
Offshore Partners LP, a Marshall Islands limited partnership (the “Guarantor”). Such guarantee shall be made by the Guarantor’s co-signature on this Seller’s Credit.
		
	 Events of Default:
	  	 The Loan Amount becomes immediately and automatically due for payment in full (together with accrued interest) upon the occurrence of an
Event of Default, where “Event of Default” means:
  

a)      any non-payment by the Borrower under this Seller’s Credit;
or

  
 22 

			
		  	 b)      upon the Borrower becoming insolvent or entering into
bankruptcy proceedings, any liquidator or trustee in bankruptcy or similar officer is appointed in respect of the Borrower or any of its assets, any preparations are taken by its shareholders, directors or other officers for its winding up or
dissolution.
 For the avoidance of doubt, the provisions regarding subordination set forth in paragraph “Priority and subordination” applies in
case of an Event of Default as set out in item b) above.

		
	 Transferability:
	  	 The Borrower may not transfer this Seller’s Credit (or any of its obligations and liabilities hereunder) to any third party.

 
 The Creditor may transfer this Seller’s Credit, subject to the Borrower’s
consent.

		
	Governing law and enforcement:	  	This Seller’s Credit shall be governed by the laws of Norway, with the courts of Haugesund, Norway as legal venue.

 THIS SELLER’S CREDIT has been entered into on
[        date        ] 2013. 
  

			
	KNOT SHUTTLE TANKERS AS
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	KNUTSEN NYK OFFSHORE TANKERS AS
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 23 

 Guarantee 

By our co-signature on this Seller’s Credit we, KNOT Offshore Partners LP, hereby unconditionally and irrevocably guarantees, as primary obligor as and
for its own debt and not merely as surety to the Creditor the due and punctual payment by the Borrower of any and all sums which are now or at any time hereafter will be payable by the Borrower under or in respect of the Seller’s Credit. 

If and whenever the Borrower shall make default in the payment of any sums due and payable under the terms of the Seller’s Credit, we shall forthwith,
following demand by Creditor to us, pay to the Creditor in such manner as notified by the Creditor the moneys in regard to which such default has been made, with the default interest (if any) thereon. 

Our total liability under this Guarantee shall, in the aggregate, always be limited to the Loan Amount plus all unpaid interest and default interest. 

 

			
	KNOT OFFSHORE PARTNERS LP
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 24 

 Schedule 1: Definitions 

 

			
		
	Business Day:	  	Any day on which banks are generally open for commercial business in Norway.
		
	Senior Banks:	  	DNB BANK ASA, NORDEA BANK NORGE ASA, ABN AMRO BANK N.V., OSLO BRANCH, and CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK and/or such other banks as may become creditors in respect of the Senior Bank Debt from time to time.
		
	Senior Bank Debt:	  	A USD 93,000,000.- Term Loan Facility Agreement dated dated 11 July 2011 entered into between i.a. the Target as borrower, DNB BANK ASA, NORDEA BANK NORGE ASA, ABN AMRO BANK N.V., OSLO BRANCH, and CREDIT AGRICOLE CORPORATE AND
INVESTMENT BANK, as lenders and mandated lead arrangers (as amended, supplemented or varied from time to time).
		
	 Senior Bank Debt
 Guarantee
Obligations:
	  	The Borrower’s and the Guarantor’s payment obligations under two guarantee agreement dated 11 July 2013, whereby the Borrower and the Guarantor i.a. guarantees the Target’s fulfilment of its obligations under the
Senior Bank Debt.
		
	SPA:	  	The share purchase agreement entered into between the Borrower and the Creditor dated 11 July 2013, whereby the Borrower agreed to purchase and the Creditor agreed to sell all shares in Target.
		
	Target:	  	Knutsen Shuttle Tankers 13 AS, of Smedasundet 40, 5529 Haugesund, Norway a company registered in Norway with registration number 996 661 016.

  
 25 

 Schedule 2 

INSURANCES 
  

							
	 Insurance Policies (all quoted values are USD)

	 Hull & Machinery
	 		  		  	
	 Hull
	 		  	Insured Value: $100,000,000	  	Policy Renewal: 1/10/2013
	 Hull Interest
	 		  	Insured Value: $25,000,000	  	Policy Renewal: 1/10/2013
	 Freight Interest
	 		  	Insured Value: $25,000,000	  	Policy Renewal: 1/10/2013
	
	 Loss of Hire (14-day deductible, 180-day maximum single claim, 180-day maximum sum of all claims paid)

	 Daily Amount: $56,000
	 		  	Insured Value: $10,080,000	  	Policy Renewal: 1/10/2013
				
	 P&I Insurance
	 		  		  	
	 Gross Tonnage: 82,803
	 		  		  	Policy Renewal: 20/02/2014
				
	 War Risk
	 		  		  	
		 		  	Insured Value: $150,000,000	  	Policy Renewal: 01/01/2014

 Hull & Machinery 
  

					
	 Norwegian Hull Club Assuranseforening, Bergen
	  	 	12,5	% 
	 Gard AS
	  	 	9,5	% 
	 Codan Marine Services AS, on behalf of Codan Forsikring AS, Copenhagen
	  	 	2,0	% 
	 XL London Market Ltd (XL Synd 1209)
	  	 	10,0	% 
	 Arch Insurance Company (Europa) Ltd
	  	 	5,0	% 
	 Catlin Insurance Co (UK) Ltd (SJC Synd. No.2003)
	  	 	5,0	% 
	 W.R. Berkely Insurance Norway NUF
	  	 	6,5	% 
	 International Insurance Company of Hannover
	  	 	2,5	% 
	 Skuld 1897
	  	 	5,0	% 
	 Mitsui Sumitomo Insurance Company Ltd
	  	 	3,0	% 
	 Chaucer Underwriting AS
	  	 	5,0	% 
	 Alandia Insurance
	  	 	5,0	% 
	 Aspen Insurance
	  	 	2,0	% 
	 Tokio Marine & Nichido Fire Insurance Company
	  	 	10,0	% 
	 Warta Insurance and Reinsurance Company S.A.
	  	 	1,5	% 
	 Ingosstrakh
	  	 	3,0	% 
	 Swedish Club
	  	 	2,5	% 
	 ACR via HSBC Insurance
	  	 	3,8	% 
	 India International Insurance
	  	 	4,0	% 
	 Vienna Insurance Group
	  	 	2,25	% 
		  	 	100,0	% 

  
 26 

			
	Hull Interest/Freight Interest
	19.0%	  	Gard AS
	20.0%	  	Norwegian Hull Club Assuranseforening, Bergen
	10.0%	  	XL London Market Ltd
	18.0%	  	Codan Marine Services AS, Codan Forsikring AS, Copenhagen
	5.0%	  	Catlin Insurance Company (UK) Ltd
	2.5%	  	International Insurance Company of Hannover
	3.0%	  	Skuld 1897
	2.0	  	Chaucer Underwriting AS
	2.5%	  	Alandia Insurance
	1.5%	  	Warta Insurance and Reinsurance Company S.A.
	6.5%	  	Tokio Marine & Nichido Fire Insurance Co.Ltd
	5.0%	  	Arch Insurance Comp. (Europe) Ltd.
	5.0%	  	Swedish Club
		
	Loss of Hire	  	
	20%	  	Norwegian Hull Club Assuranseforening
	32.0%	  	Gard AS
	30.0%	  	Codan Marine Services AS
	15.0%	  	Tokio Marine & Nichido Fires Insurance
	3.0%	  	Mitsui Sumitomo Insurance Company Ltd.
		
	War Risk	  	
	100%	  	The Norwegian War Risks Club
		
	P&I	  	
	100%	  	Skuld (Gjensidig)
		
	FDD	  	
	100%	  	Nordisk Skipsrederforening

  

  
 27 

 Schedule 3 

ACCOUNTS 
 [Separate
attachment] 

  
 28

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