Document:

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                                                                    EXHIBIT 10.9

                    FORM OF ADMINISTRATIVE SERVICES AGREEMENT

THIS AGREEMENT made effective the ____ day of December 2006;

BY AND BETWEEN:

      TEEKAY OFFSHORE PARTNERS L.P., a limited partnership duly organized and
      existing under the laws of the Marshall Islands with its registered office
      at Bayside House, Bayside Executive Park, West Bay Street & Blake Road,
      P.O. Box AP-59213, Nassau, The Bahamas.

      ("TKLP")

AND:

      TEEKAY SHIPPING LIMITED, a Bahamas company with its registered office at
      Bayside House, Bayside Executive Park, West Bay Street & Blake Road, P.O.
      Box AP-59212, Nassau, The Bahamas

      ("TK Bahamas")

WHEREAS:

      A.    TKLP, a limited partnership whose units are listed and will trade on
            the New York Stock Exchange, requires certain non-strategic
            administrative and clerical services; and

      B.    TKLP wishes to engage TK Bahamas to provide such non-strategic
            administrative and clerical services to TKLP on the terms set out
            herein;

NOW THEREFORE, the parties agree that, in consideration of the fees set forth in
Schedule "B" to this Agreement (the "Fees") and subject to the Terms and
Conditions attached hereto, TK Bahamas shall provide the non-strategic
administrative and clerical services set forth in Schedule "A" to this Agreement
(the "Services").

IN WITNESS WHEREOF the Parties have executed this Agreement by their duly
authorized signatories with effect on the date first above written.

TEEKAY OFFSHORE PARTNERS L.P.                    TEEKAY SHIPPING LIMITED
BY ITS GENERAL PARTNER
TEEKAY OFFSHORE GP L.L.C.

By: __________________________                   By: __________________________
Name:                                            Name:
Title:                                           Title:

<PAGE>

                              TERMS AND CONDITIONS

1.    DEFINITIONS

In this Agreement: the term:

"Change of Control" means with respect to any entity, an event in which
securities of any class entitling the holders thereof to elect a majority of the
members of the board of directors or other similar governing body of the entity
are acquired, directly or indirectly, by a person who did not immediately before
such acquisition own securities of the entity entitling such person to elect
such majority (and for the purpose of this definition, any such securities held
by another person who is related to such person shall be deemed to be owned by
such person);

"Limited Partnership Agreement" means the amended and restated agreement of
limited partnership of TKLP dated as of [DATE], as from time to time amended;

"TKGP" means Teekay GP L.L.C., a Marshall Islands limited liability company that
is the general partner of TKLP;

"TKLP Group" means TKLP, TKGP and subsidiaries of TKLP; and

"Unitholders" means holders of limited partnership units in TKLP.

2.    GENERAL

TK Bahamas shall provide all or such portion of the Services, in a commercially
reasonable manner, as TKLP, may from time to time reasonably request or direct,
all under the supervision of TKLP, as represented by TKGP in its capacity as the
general partner of TKLP.

3.    COVENANTS

During the term of this Agreement TK Bahamas shall:

(a)   diligently provide or subcontract for the provision of (in accordance with
      Section 18 hereof) the Services to TKLP (unless the provision of such
      Services would materially interfere with Teekay Shipping Corporation's
      operations) as an independent contractor, and be responsible to TKLP for
      the due and proper performance of same;

(b)   retain at all times a qualified staff so as to maintain a level of
      expertise sufficient to provide the Services; and

(c)   keep full and proper books, records and accounts showing clearly all
      transactions relating to its provision of Services in accordance with
      established general commercial practices and in accordance with United
      States generally accepted accounting principles, and allow TKLP and its
      representatives to audit and examine such books, records and accounts at
      any time during customary business hours.

                                       2
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4.    NON-EXCLUSIVITY

TK Bahamas and its employees may provide services of a nature similar to the
Services to any other person. There is no obligation for TK Bahamas to provide
the Services to TKLP on an exclusive basis.

5.    CONFIDENTIAL INFORMATION

TK Bahamas shall be obligated to keep confidential, both during and after the
term of this Agreement, all information it has acquired or developed in the
course of providing Services under this Agreement. TKLP shall be entitled to any
equitable remedy available at law or equity, including specific performance,
against a breach by TK Bahamas of this obligation. TK Bahamas shall not resist
such application for relief on the basis that TKLP has an adequate remedy at
law, and TK Bahamas shall waive any requirement for the securing or posting of
any bond in connection with such remedy.

6.    SERVICE FEE

In consideration for TK Bahamas providing the Services, TKLP shall pay TK
Bahamas the Fees as determined and by installments as set out in Schedule "B" to
this Agreement.

7.    GENERAL RELATIONSHIP BETWEEN THE PARTIES

The relationship between the parties is that of independent contractor. The
parties to this Agreement do not intend, and nothing herein shall be interpreted
so as, to create a partnership, joint venture, employee or agency relationship
between TK Bahamas and any one or more of TKLP, TKGP in its capacity as general
partner on behalf of TKLP or any member of the TKLP Group.

8.    INDEMNITY

TKLP shall indemnify and hold harmless TK Bahamas and its employees and agents
against all actions, proceedings, claims, demands or liabilities which may be
brought against them due to this Agreement including, without limitation, all
actions, proceedings, claims, demands or liabilities brought under the
environmental laws of any jurisdiction, and against and in respect of all costs
and expenses (including legal costs and expenses on a full indemnity basis) they
may suffer or incur due to defending or settling same, provided however that
such indemnity shall exclude any or all losses, actions, proceedings, claims,
demands, costs, damages, expenses and liabilities whatsoever which may be caused
by or due to the gross negligence or willful misconduct of TK Bahamas or its
employees or agents.

                                       3
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9.    TERM AND TERMINATION

This Agreement shall commence as of the date first above written and shall
continue for successive one year terms unless terminated by either party hereto
on not less than sixty (60) days notice. A party may at any time terminate this
Agreement forthwith if:

(a)   in the case of TKLP, there is a Change of Control of TK Bahamas and in the
      case of TK Bahamas, if there is a Change of Control of TKGP;

(b)   the other party breaches this Agreement;

(c)   a receiver is appointed for all or substantially all of the property of
      the other party;

(d)   an order is made to wind-up the other party;

(e)   a final judgment, order or decree which materially and adversely affects
      the ability of the other party to perform this Agreement shall have been
      obtained or entered against that party and such judgment, order or decree
      shall not have been vacated, discharged or stayed; or

(f)   the other party makes a general assignment for the benefit of its
      creditors, files a petition in bankruptcy or for liquidation, is adjudged
      insolvent or bankrupt, commences any proceeding for a reorganization or
      arrangement of debts, dissolution or liquidation under any law or statute
      or of any jurisdiction applicable thereto or if any such proceeding shall
      be commenced.

10.   FEES UPON TERMINATION

Upon termination of this Agreement, the Fee shall be adjusted as at the
effective date of termination. Any overpayment shall forthwith be refunded to
TKLP and any underpayment shall forthwith be paid to TK Bahamas.

11.   SURRENDER OF BOOKS AND RECORDS

Upon termination of this Agreement, TK Bahamas shall forthwith surrender to TKLP
any and all books, records, documents and other property in the possession or
control of TK Bahamas relating to this Agreement and to the business, finance,
technology, trademarks or affairs of TKLP and any member of the TKLP Group and,
except as required by law, shall not retain any copies of same.

12.   FORCE MAJEURE

Neither party shall be liable for any failure to perform this Agreement due to
any cause beyond its reasonable control.

13.   ENTIRE AGREEMENT

This Agreement forms the entire agreement between the parties with respect to
the subject matter hereof and supersedes and replaces all previous agreements,
written or oral, with respect to the subject matter hereof.

14.   SEVERABILITY

If any provision herein is held to be void or unenforceable, the validity and
enforceability of the remaining provisions herein shall remain unaffected and
enforceable.

15.   CURRENCY

Unless stated otherwise, all currency references herein are to United States
Dollars.

                                       4
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16.   LAW AND ARBITRATION

This Agreement shall be governed by the laws of The Bahamas. Any dispute under
this Agreement shall be put to arbitration in The Bahamas, a jurisdiction to
which the parties hereby irrevocably submit.

17.   NOTICE

Notice under this Agreement shall be given (via hand delivery or facsimile) as
follows:

     If to TKLP:
     ----------
     Bayside House
     Bayside Executive Park
     West Bay Street & Blake Road
     P.O. Box AP-59212
     Nassau
     The Bahamas
     Attn: Teekay Offshore GP L.L.C., as represented by its Director
     ----

     Fax: +1 242 502 8840

     If to TK Bahamas:
     ----------------
     Bayside House
     Bayside Executive Park
     West Bay Street & Blake Road
     P.O. Box AP-59212
     Nassau
     The Bahamas
     Attn: Director
     ----
     Fax: +1 242 502 8840

18.   SUBCONTRACTING AND ASSIGNMENT

TK Bahamas shall not assign, sub-contract or sub-license or assign this
Agreement to any party that is not a subsidiary or affiliate of Teekay Shipping
Corporation except upon written consent of TKLP.

19.   WAIVER

The failure of either party to enforce any term of this Agreement shall not act
as a waiver. Any waiver must be specifically stated as such in writing.

20.   AFFILIATES

This Agreement shall be binding upon and inure to the benefit of the affiliates
of TKLP and/or TK Bahamas.

21.   COUNTERPARTS

This Agreement may be executed in one or more signed counterparts, facsimile or
otherwise, which shall together form one instrument.

                                       5
<PAGE>

                                   SCHEDULE A
                                    SERVICES

TK Bahamas shall provide such of the following non-strategic administrative and
clerical services (the "Services") to TKLP, as TKGP may from time to time
request and direct TK Bahamas to provide pursuant to Section 2:

      (a)   Keep and maintain at all times books, records and accounts which
            shall contain particulars of receipts and disbursements relating to
            the assets and liabilities of TKLP and such books, records and
            accounts shall be kept pursuant to normal commercial practices that
            will permit TKLP to prepare or cause to be prepared financial
            statements in accordance with US generally accepted accounting
            principles and in each case shall also be in accordance with those
            required to be kept by TKLP under applicable securities legislation
            in the US and as TKLP is required under the US Internal Revenue Code
            of 1986 and the regulations applicable with respect thereto, all as
            amended from time to time;

      (b)   Prepare all such returns, filings and documents, for review and
            approval by TKLP as may be required under the Limited Partnership
            Agreement together with such other returns, filings, documents and
            instruments as may from time to time be requested or instructed by
            TKLP;

      (c)   Provide, or arrange for the provision of, advisory services to TKLP
            with respect to TKLP's obligations under applicable securities
            legislation in the US and assist TKLP in arranging for compliance
            with continuous disclosure obligations under applicable securities
            legislation including the preparation for review, approval and
            filing by TKLP of reports and other documents with all applicable
            regulatory authorities, providing that nothing herein shall permit
            or authorize TK Bahamas to act for or on behalf of TKLP in its
            relationship with regulatory authorities except to the extent that
            specific authorization may from time to time be given by TKLP;

      (d)   Provide advisory and clerical services to assist and support TKLP in
            its communications with its Unitholders, as TKLP may from time to
            time request or direct, provided that nothing herein shall permit or
            authorize TK Bahamas to determine the content of any such
            communications by TKLP to its Unitholders;

      (e)   At the request and under the direction of TKLP, handle all
            administrative and clerical matters in respect of (i) the call and
            arrangement of all annual and/or special meetings of the Unitholders
            pursuant to the Limited Partnership Agreement, (ii) the preparation
            of all materials (including notices of meetings and information
            circulars) in respect thereof and (iii) the submission of all such
            materials to TKLP in sufficient time prior to the dates upon which
            they must be mailed, filed or otherwise relied upon so that TKLP has
            full opportunity to review them, approve them, execute them and
            return them to TK Bahamas for filing or mailing or other disposition
            as TKLP may require or direct;

      (f)   Provide or secure sufficient and necessary office space, equipment
            and personnel including all accounting, clerical, secretarial,
            corporate and administrative services as may be reasonably necessary
            for the performance of the Services;

      (g)   Arrange for the provision of such audit, accounting, engineering,
            legal, insurance and other professional services as are reasonably
            required by TKLP from time to time in connection with the discharge
            of its responsibilities under the Limited Partnership Agreement, to
            the extent such advice and analysis can be reasonably provided or
            arranged by TK Bahamas, provided that nothing herein shall permit TK
            Bahamas to select the auditor of TKLP, which shall be selected in
            accordance with the provisions for the appointment of the auditor
            pursuant to the Limited Partnership Agreement or as otherwise be
            required by law governing TKLP, or to communicate with the auditor
            other than in the ordinary course of making such books and records
            available for review as the auditors may require and to respond to
            queries from the auditors with respect to the accounts and
            statements prepared by, or arranged by, TK Bahamas, and in
            particular TK Bahamas will not have any of the authorities, rights
            or responsibilities of the audit committee of TKGP, but shall
            provide information to such committee as may from time to time be
            required or requested; and provided further that nothing herein
            shall entitled TK Bahamas to retain legal counsel for TKLP unless
            such selection is specifically approved by TKGP;

                                       6
<PAGE>

      (h)   Provide such assistance and support as TKLP may from time to time
            request in connection with any new or existing financing for TKLP,
            such assistance and support to be provided in accordance with the
            direction, and under the supervision of TKLP, as represented by TKGP
            in its capacity as the general partner of TKLP;

      (i)   Provide such administrative and clerical services as may be required
            by TKLP to support and assist TKLP in considering any future
            acquisitions or divestments of assets of TKLP, all under the
            direction and under the supervision of TKLP, as represented by TKGP
            in its capacity as the general partner of TKLP;

      (j)   Provide such support and assistance to TKLP as TKLP may from time to
            time request in connection with any future offerings of Units that
            TKLP may at any time determine is desirable for TKLP, all under the
            direction and supervision of TKLP, as represented by TKGP, in its
            capacity as the general partner of TKLP;

      (k)   Provide, at the request and under the direction of TKLP, such
            communications to the transfer agent for TKLP as may be necessary or
            desirable;

      (l)   Prepare and provide regular cash reports and other accounting
            information for review by TKLP, so as to permit and enable TKLP to
            make all determinations of financial matters required to be made
            pursuant to the Limited Partnership Agreement, including the
            determination of amounts available for distribution by TKLP to its
            Unitholders, and to assist TKLP in making arrangements with the
            transfer agent for TKLP for the payment of distributions to the
            Unitholders in accordance with the Limited Partnership Agreement;

      (m)   Provide such assistance to TKLP as TKLP may request or direct with
            respect to the performance of the obligations to the Unitholders
            under the Limited Partnership Agreement and to provide monitoring of
            various obligations and rights under agreements entered into by TKLP
            and provide advance reports on a timely basis to TKLP advising of
            steps, procedures and compliance issues under such agreements, so as
            to enable TKLP, through its general partner to make all such
            decisions as would be necessary or desirable thereunder; and

      (n)   Provide such additional administrative and clerical services
            pertaining to TKLP, the assets and liabilities of TKLP and the
            Unitholders and matters incidental thereto as may be reasonably
            requested by TKLP from time to time.

      TK Bahamas shall provide quarterly reports to TKLP outlining the nature
      and details of the foregoing services that have been provided.

                                       7
<PAGE>

                                   SCHEDULE B

                                      FEES

In consideration for the provision of services by TK Bahamas to TKLP, TKLP shall
pay TK Bahamas an annual Fee for each calendar year during the term of this
Agreement divided into twelve (12) equal monthly installments payable in advance
and which is equal to the annual aggregate amount of such costs and expenses
(the "Costs and Expenses") as TK Bahamas may reasonably incur in connection with
the provision of the Services plus a reasonable profit mark-up to be agreed upon
and reviewed annually by the parties and which shall be consistent with the
Organization for Economic Development's guidelines for transfer pricing levels
as well as local rules and regulations.

In respect of each calendar year during the term of this Agreement, TK Bahamas
shall prepare an estimate of the Costs and Expenses it reasonably expects to
incur during such year and shall submit such estimate to TKLP within ten (10)
Bahamian banking days of the last day of the immediately preceding year.

The calculation of TK Bahamas' aforesaid estimated Costs and Expenses may be
adjusted from time to time by agreement between the parties, and the Fee payable
by TKLP shall be re-calculated accordingly.

Within sixty (60) Bahamian banking days (or such longer period as the parties
shall agree) after the end of each year, TK Bahamas shall submit to TKLP an
accounting of the Costs and Expenses it has incurred in that year (the "actual
Costs and Expenses").

Ten (10) Bahamian banking days (or such longer period as the parties shall
agree) after the date on which TK Bahamas delivers such accounting of its actual
Costs and Expenses:

      (a)   where the aggregate of all Fees paid in the relevant year is less
            than the agreed mark-up of the actual Costs and Expenses, TKLP shall
            pay an Adjustment to TK Bahamas; and

      (b)   where the aggregate of all Fees paid in the relevant year is greater
            than the agreed mark-up of the actual Costs and Expenses, TK Bahamas
            shall pay an Adjustment to TKLP.

Where the aggregate of all Fees paid in a year is equal to the agreed mark-up of
the actual Costs and Expenses, no Adjustment is payable.

For the purposes hereof "ADJUSTMENT" means a payment (made in accordance with
the foregoing) in the amount of the difference between the aggregate of all Fees
paid in a year and the agreed mark-up of the actual Costs and Expenses incurred
in that year.

                                       8Exhibit 10.19

 

EXHIBIT 10.19

FORM OF BOND

THIS BOND IS NOT TRANSFERABLE, EXCEPT BY DELIVERY TO THE WASHINGTON ECONOMIC DEVELOPMENT FINANCE
AUTHORITY, AS REGISTRAR, FOR REISSUANCE TO A NEW REGISTERED OWNER.

			
	 
	R-1
	 	 $1,600,000

UNITED STATES OF AMERICA

STATE OF WASHINGTON

WASHINGTON ECONOMIC DEVELOPMENT FINANCE AUTHORITY

ECONOMIC DEVELOPMENT REVENUE BOND,

SERIES 2006I (ABSORPTION CORP. PROJECT)

MATURITY
DATE: April 1, 2014

DATED: September 14, 2006

PRINCIPAL AMOUNT: $1,600,000

INTEREST
RATE: 5.70%

REGISTERED
OWNER: GE Capital Public Finance, Inc.

     The Washington Economic Development Finance Authority, a public body and instrumentality of
the State of Washington (the “Authority”), for value received, hereby promises to pay (but only out
of the Loan Payments pledged therefor as hereinafter mentioned) to the Registered Owner identified
above, or registered assigns, the Principal Amount identified above in lawful money of the United
States of America; and to pay interest on the Principal Amount hereof in like lawful money from the
date of initial authentication and delivery hereof, such interest to be at the rates, and all such
payments of interest, principal or interest and principal to be payable at the time and place, in
the amounts and in accordance with the terms set forth in that certain Loan Agreement dated as of
September 1, 2006 (the “Loan Agreement”) among the Authority, the Registered Owner and Absorption
Corp. (the “Borrower”).

     This Bond is payable as to principal and prepayment premium, if any, solely from Loan Payments
to be made by the Borrower and is secured by, among other things, a lien on the Equipment financed
pursuant to the Loan Agreement.

     IN ACCORDANCE WITH RCW 43.163.140(1), THIS BOND SHALL NOT BE DEEMED TO CONSTITUTE A DEBT,
LIABILITY OR GENERAL OBLIGATION OF THE AUTHORITY, THE STATE OF WASHINGTON OR ANY POLITICAL
SUBDIVISION THEREOF, OR A PLEDGE OF THE FAITH AND CREDIT OF THE AUTHORITY, THE STATE OF WASHINGTON
OR ANY SUCH POLITICAL SUBDIVISION, BUT IS A SPECIAL OBLIGATION PAYABLE SOLELY FROM THE REVENUES AND
PROCEEDS PROVIDED THEREFOR. NEITHER THE AUTHORITY, THE STATE OF WASHINGTON OR ANY POLITICAL
SUBDIVISION THEREOF SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF, INTEREST OR PREMIUM, IF ANY, ON
THIS BOND, AND NEITHER THE FAITH AND CREDIT NOR ANY TAXING POWER OF THE STATE OF WASHINGTON OR ANY
POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, THE INTEREST OR
PREMIUM, IF ANY, ON THIS BOND. THE AUTHORITY HAS NO TAXING POWER.

     This Bond is a duly authorized bond of the Authority and is designated as “Washington Economic
Development Finance Authority Economic Development Revenue Bond, Series 2006I (Absorption Corp.
Project)” (the “Bond”), issued in the aggregate principal amount of $1,600,000 pursuant to
Resolution No. W-2006-016 adopted by the Authority on September 12, 2006 (the “Resolution”), and
pursuant to the Loan Agreement. The Bond is issued for

 

 

the purpose of making loans for economic development activities to the Borrower pursuant to the
Loan Agreement for the purposes and on the terms and conditions set forth therein.

     Reference is hereby made to the Escrow Agreement (copies of which are on file at the corporate
trust office of the Escrow Agent in Minneapolis, Minnesota) and all agreements supplemental thereto
and to the Resolution for a description of the rights thereunder of the Registered Owner of the
Bond, of the nature and extent of the security, of the rights, duties and immunities of the Escrow
Agent and of the rights and obligations of the Authority thereunder, to all the provisions of which
Escrow Agreement the Registered Owner of this Bond, by acceptance hereof, assents and agrees.

     This Bond is subject to redemption prior to maturity as provided in the Loan Agreement.

     This Bond is a private activity bond. This Bond has not been designated as a “qualified
tax-exempt obligation” under Section 265(b) of the Internal Revenue Code of 1986, as amended.

     The Escrow Agreement and the rights and obligations of the Authority and of the Registered
Owner and the Escrow Agent may be modified or amended from time to time and at any time in the
manner, to the extent, and upon the terms provided in the Escrow Agreement.

     It is hereby certified, recited and declared that all acts, conditions and things required to
exist to happen and to be performed precedent to and in the issuance of this Bond exist, have
happened and have been performed in regular and due form and time as required by the Constitution
and laws of the State applicable thereto and that the issuance of this Bond is in full compliance
with all constitutional and statutory limitations, provisions and restrictions. This Bond shall
not be entitled to any benefit under the Loan Agreement, or become valid or obligatory for any
purpose, until the certificate of authentication and registration hereon endorsed shall have been
signed by the Registrar.

     IN WITNESS WHEREOF, the Washington Economic Development Finance Authority has caused this Bond
to be executed in its name and in its behalf by the manual or facsimile signature of its Chair,
attested by the manual or facsimile signature of its Secretary, initially all as of the date of
original issuance and thereafter as provided in the Loan Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	WASHINGTON ECONOMIC DEVELOPMENT FINANCE AUTHORITY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Robert P. Meredith
 

Chair
	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	          /s/ Jonathan A. Hayes
 

Executive Director

	 	 	 	 	 	 	 	 

CERTIFICATE OF AUTHENTICATION AND REGISTRATION

Date of Authentication: September _14th _, 2006.

     This is the Washington Economic Development Finance Authority Economic Development Revenue
Bond, Series 2006I (Absorption Corp. Project), described in the within-mentioned Loan Agreement.

	 	 	 	 	 	 	 
	 	 	WASHINGTON ECONOMIC DEVELOPMENT FINANCE AUTHORITY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jonathan A. Hayes
 

	 	 
	 	 	Executive Director

2

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