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<SEC-DOCUMENT>0000945234-04-000616.txt : 20041006
<SEC-HEADER>0000945234-04-000616.hdr.sgml : 20041006
<ACCEPTANCE-DATETIME>20041006143715
ACCESSION NUMBER:		0000945234-04-000616
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		5
FILED AS OF DATE:		20041006
DATE AS OF CHANGE:		20041006
EFFECTIVENESS DATE:		20041006

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TEEKAY SHIPPING CORP
		CENTRAL INDEX KEY:			0000911971
		STANDARD INDUSTRIAL CLASSIFICATION:	DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT [4412]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			1T
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-8
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-119564
		FILM NUMBER:		041068042

	BUSINESS ADDRESS:	
		STREET 1:		TK HOUSE, BAYSIDE EXECUTIVE PARK
		STREET 2:		WEST BAY ST & BLAKE RD, PO BOX AP-59213
		CITY:			NASSAU BAHAMAS
		STATE:			C5
		ZIP:			00000
		BUSINESS PHONE:		8093228020

	MAIL ADDRESS:	
		STREET 1:		SUITE 2000,  BENTALL 5
		STREET 2:		550 BURRARD STREET
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6C 2K2

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VIKING STAR SHIPPING INC
		DATE OF NAME CHANGE:	19930914
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>o14279sv8.htm
<DESCRIPTION>S-8
<TEXT>
<HTML>
<HEAD>
<TITLE>S-8</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<P align="center" style="font-size: 10pt"><B>As filed with the Securities and Exchange Commission on October&nbsp;6, 2004</B>



<DIV align="right" style="font-size: 10pt; margin-right: 70px"><B>Registration No.&nbsp;333-</B></DIV>



<HR size="4" noshade color="#000000" style="margin-top: -5px">
<HR size="1" noshade color="#000000" style="margin-top: -10px">





<DIV align="center" style="font-size: 14pt"><B>SECURITIES AND EXCHANGE COMMISSION</B></DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>


<P align="center" style="font-size: 10pt"><HR size="1" noshade width="15%" align="center">
<P>

<DIV align="center" style="font-size: 18pt"><B>FORM S-8</B></DIV>


<DIV align="center" style="font-size: 12pt"><B>REGISTRATION STATEMENT<BR>
UNDER<BR>
THE SECURITIES ACT OF 1933</B></DIV>



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="15%" align="center">


<P align="center" style="font-size: 24pt"><B>TEEKAY SHIPPING CORPORATION</B>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Republic of the Marshall Islands</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Not Applicable</B></TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top" nowrap>(State or other jurisdiction of incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification No.)</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><B>TK House<BR>
Bayside Executive Park<BR>
West Bay Street &#038; Blake Road<BR>
Nassau<BR>
THE BAHAMAS</B><BR>
(Address of principal executive offices, including zip code)



<P align="center" style="font-size: 10pt"><B>TEEKAY SHIPPING CORPORATION<BR>
AMENDED 1995 STOCK OPTION PLAN<BR>
2003 EQUITY INCENTIVE PLAN</B><BR>
(Full title of the plans)<BR><BR>

<B>LAWCO OF OREGON, INC.<BR>
Perkins Coie LLP<BR>
1120 N.W. Couch Street, 10<SUP>th</SUP> Floor<BR>
Portland, Oregon 97209<BR>
Attention: Debra L. Bergstrom<BR>
(503)&nbsp;727-2000</B><BR>
(Name, address and telephone number, including area code, of agent for service)



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="15%" align="center">



<P align="center" style="font-size: 10pt"><B>Copies to:</B>



<P align="center" style="font-size: 10pt"><B>DAVID S. MATHESON<BR>
DANIELLE BENDERLY<BR>
Perkins Coie LLP<BR>
1120 N.W. Couch Street, 10<SUP>th</SUP> Floor<BR>
Portland, Oregon 97209</B>



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="15%" align="center">



<P align="center" style="font-size: 10pt"><B>CALCULATION OF REGISTRATION FEE</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Title of Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number to Be</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>to Be Registered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Registered(1)(2)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering Price</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aggregate Offering Price</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Registration Fee(5)</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Common Stock, par
value $0.001 per
share, together
with associated
common stock
purchase rights,
subject to
outstanding options
issued under the
Amended 1995 Stock
Option Plan.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,245,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">19.529</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">24,321,455.66</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,081.528</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Common Stock, par
value $0.001 per
share, together
with associated
common stock
purchase rights,
subject to
outstanding options
issued under the
2003 Equity
Incentive Plan.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">815,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">33.688</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">27,470,542.72</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,480.518</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Common Stock, par
value $0.001 per
share, together
with associated
common stock
purchase rights,
issuable under the
2003 Equity
Incentive Plan.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,910,904</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">44.445</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">84,949,237.32</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,763.068</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,971,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">136,741,235.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,325.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<HR size="1" noshade color="#000000" style="margin-top: -2px">
<HR size="4" noshade color="#000000" style="margin-top: -10px">






<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">PART II INFORMATION REQUIRED IN REGISTRATION STATEMENT</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;3. Incorporation of Certain Documents by Reference</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">Item&nbsp;4. Description of Securities</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#003">Item&nbsp;5. Interests of Named Experts and Counsel</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#004">Item&nbsp;6. Indemnification of Directors and Officers</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#005">Item&nbsp;7. Exemption From Registration Claimed</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#006">Item&nbsp;8. Exhibits</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#007">Item&nbsp;9. Undertakings</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">INDEX TO EXHIBITS</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->





<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on shares subject to outstanding options pursuant to the Amended
1995 Stock Option Stock Plan (the &#147;1995 Plan&#148;) and shares subject to
outstanding options or reserved for future issuance pursuant to the 2003
Equity Incentive Plan (the &#147;2003 Plan&#148;), together with an indeterminate
number of additional shares which may be necessary to adjust the number of shares reserved for issuance pursuant to such employee benefit plans as
the result of any future stock split, stock dividend or similar adjustment
of the registrant&#146;s outstanding Common Stock.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Registrant suspended the 1995 Plan with respect to issuances of new
stock option grants thereunder, effective as of September&nbsp;10, 2003, and
adopted a new plan, the 2003 Plan, effective as of September&nbsp;10, 2003.
Pursuant to the terms of the 2003 Plan, 2,754,598 shares previously
available for issuance but not issued or subject to outstanding options
under the 1995 Plan may now be issued under the 2003 Plan in the future.
Shares subject to outstanding options under the 1995 Plan that cease to be
subject to such options in the future, other than by reason of exercise or
settlement of the options to the extent they are exercised for or settled
in shares, will no longer be available for issuance under the 1995 Plan
but will be available for issuance under the 2003 Plan, up to an aggregate
maximum of 5,153,356 shares, which includes 1,245,402 shares being
registered on this Registration Statement.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(c) under the Securities Act of 1933, as amended,
based on the weighted average exercise price per share covering issued but
unexercised options under the 1995 Plan and the 2003 Plan.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(c) under the Securities Act of 1933, as amended,
based on the average of the high ($45.20) and low ($43.71) sales prices
for the Common Stock on October&nbsp;4, 2004, as reported for such date on the
New York Stock Exchange.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The amount of the Registration fee was calculated pursuant to Section
6(b) of the Securities Act of 1933 which provides that the fee shall be
$126.70 per $1,000,000 of the proposed maximum aggregate offering price of
the securities proposed to be registered.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>

<!-- link1 "PART II INFORMATION REQUIRED IN REGISTRATION STATEMENT" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="center" style="font-size: 10pt"><B>PART II<BR>
INFORMATION REQUIRED IN REGISTRATION STATEMENT</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Registration Statement is filed with respect to 3,971,746 shares of
Common Stock, of which 1,245,402 shares may be issued under the Amended 1995
Stock Option Plan (the &#147;1995 Plan&#148;) and 2,726,344 shares may be issued under
the 2003 Equity Incentive Plan (the &#147;2003 Plan&#148;) of Teekay Shipping
Corporation (the &#147;Registrant&#148;). An aggregate of 16,597,142 shares of the
Registrant&#146;s Common Stock were previously authorized for issuance under the
1995 Plan (as adjusted for the Registrant&#146;s two-for-one stock split, effective
May&nbsp;2004), of which 12,597,142 shares were previously registered with the
Securities and Exchange Commission (the &#147;Commission&#148;) on the Registration
Statements on Form S-8, filed with the Commission on July&nbsp;28, 2000
(Registration Number 333-42434) and on October&nbsp;27, 1995. The Registrant
suspended the 1995 Plan with respect to issuances of new stock option grants
thereunder and adopted the 2003 Plan, effective as of September&nbsp;10, 2003.
Pursuant to the terms of the 2003 Plan, 2,754,598 shares previously available
for issuance but not issued or subject to outstanding options under the 1995
Plan may be issued under the 2003 Plan. Shares subject to outstanding options
under the 1995 Plan that cease to be subject to such options, other than by
reason of exercise or settlement of the options to the extent that they are
exercised for or settled in shares, will no longer be available for issuance
under the 1995 Plan but will be available under the 2003 Plan, up to an
aggregate maximum of 5,153,356 shares, which includes 1,245,402 shares being
registered on this Registration Statement.

<!-- link2 "Item&nbsp;3. Incorporation of Certain Documents by Reference" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;3. Incorporation of Certain Documents by Reference</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents filed with the Securities and Exchange Commission
are hereby incorporated by reference in this Registration Statement:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Annual Report of the Registrant on Form 20-F for the year ended
December&nbsp;31, 2003, which contains audited financial statements of the
registrant;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The description of the Registrant&#146;s Common Stock contained in the
Registration Statement on Form 20-F filed with the Commission on July&nbsp;10, 1995,
including any amendments or reports filed for the purpose of updating such
description; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All other reports filed by the registrant pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;),
since the end of the period covered by the Annual Report on Form 20-F
referenced above.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All documents filed by the registrant pursuant to Sections&nbsp;13(a), 13(c),
14 and 15(d) of the Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;), after the date hereof, and prior to the filing of a post-effective
amendment which indicates that the securities offered hereby have been sold or
which deregisters the securities covered hereby then remaining unsold, shall
also be deemed to be incorporated by reference into this Registration Statement
and to be a part hereof commencing on the respective dates on which such
documents are filed.

<!-- link2 "Item&nbsp;4. Description of Securities" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;4. Description of Securities</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.

<!-- link2 "Item&nbsp;5. Interests of Named Experts and Counsel" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;5. Interests of Named Experts and Counsel</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link2 "Item&nbsp;6. Indemnification of Directors and Officers" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;6. Indemnification of Directors and Officers</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Teekay Shipping Corporation is a Marshall Islands corporation. The
Marshall Islands Business Corporation Act (&#147;MIBCA&#148;) provides that a Marshall
Islands corporation shall have the power to indemnify any person who was or is
a party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding whether civil, criminal, administrative or
investigative (other than an action by or in the right of the corporation) by
reason of the fact that he is or was a director or officer of the corporation,
or is or was serving at the request of the corporation as a director or officer
of another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys&#146; fees, judgments, fines and amounts paid
in settlement) actually and reasonably incurred by him in connection with such
action, suit or proceeding if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
corporation, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful. The termination of any
action, suit or proceeding by judgment, order, settlement, conviction, or upon
a plea of no contest, or its equivalent, shall not, of itself, create a
presumption that the person did not act in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the
corporation, and, with respect to any criminal action or proceeding, had
reasonable cause to believe his conduct was unlawful.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Marshall Islands corporation also has the power to indemnify any person
who was or is a party or is threatened to be made a party to any threatened,
pending or completed action or suit by or in the right of the corporation to
procure a judgment in its favor by reason of the fact that he is or was a
director or officer of the corporation, or is or was serving at the request of
the corporation as a director or officer of another corporation, partnership,
joint venture, trust or other enterprise against expenses (including attorneys&#146;
fees) actually and reasonably incurred by him or in connection with the defense
or settlement of such action or suit if he acted in good faith and in a manner
he reasonably believed to be in or not opposed to the best interests of the
corporation and except that no indemnification shall be made in respect of any
claim, issue or matter as to which such person shall have been adjudged to be
liable for negligence or misconduct in the performance of his duty to the
corporation unless and only to the extent that the court in which such action
or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case,
such person is fairly and reasonably entitled to indemnity for such expenses
which the court shall deem proper.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that a director or officer of a Marshall Islands corporation
has been successful on the merits or otherwise in defense of any action, suit
or proceeding referred to in the preceding paragraphs, or in the defense of a
claim, issue or matter therein, he shall be indemnified against expenses
(including attorneys&#146; fees) actually and reasonably incurred by him in
connection therewith. Expenses incurred in defending a civil or criminal
action, suit or proceeding may be paid in advance of the final disposition of
such action, suit or proceeding as authorized by the board of directors in the
specific case upon receipt of an undertaking by or on behalf of the director or
officer to repay such amount unless it shall ultimately be determined that he
is entitled to be indemnified by the corporation as authorized in the MIBCA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, a Marshall Islands corporation has the power to purchase and
maintain insurance on behalf of any person who is or was a director or officer
of the corporation or is or was serving at the request of the corporation as a
director or officer against any liability asserted against him and incurred by
him in such capacity whether or not the corporation would have the power to
indemnify him against such liability under the provisions of the MIBCA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;F of the Registrant&#146;s Articles of Incorporation, as amended,
provides that to the fullest extent permitted under the MIBCA, a director of
the Registrant shall not be liable to the Registrant or its shareholders for
monetary damages for breach of fiduciary duty as a director. Section&nbsp;10.00 of
the


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">Registrant&#146;s Bylaws provides that any person who is made party to a
proceeding by virtue of being an officer or director of the Registrant or,
being or having been such a director or officer or an employee of the
Registrant, serving at the request of the Registrant as a director, officer,
employee or agent of another corporation or other enterprise, shall be
indemnified and held harmless to the fullest extent permitted by the MIBCA
against any and all expense, liability, loss (including attorneys&#146; fees,
judgments, fines or penalties and amounts paid in settlement) actually incurred
or suffered by such person in connection with the proceeding.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant maintains a directors&#146; and officers&#146; liability insurance
policy that, subject to the limitations and exclusions stated therein, covers
the Registrant&#146;s officers and directors for certain actions or inactions that
they may take or omit in their capacities as officers and directors of the
Registrant.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Registrant has entered into separate indemnification
agreements with some of its officers and directors. These indemnification
agreements provide for indemnification of the director or officer against all
expenses, judgments, fines and amounts paid in settlement actually and
reasonably incurred by him in connection with any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative, except to the extent that such person is otherwise
indemnified, such action, suit or proceeding arose out of such person&#146;s
intentional misconduct, knowing violation of law or out of a transaction in
which such director or officer is finally judicially determined to have derived
an improper personal benefit, or if it shall be determined by a final judgment
or other final adjudication that such indemnification was not lawful.

<!-- link2 "Item&nbsp;7. Exemption From Registration Claimed" -->
<DIV align="left"><A NAME="005"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;7. Exemption From Registration Claimed</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.

<!-- link2 "Item&nbsp;8. Exhibits" -->
<DIV align="left"><A NAME="006"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;8. Exhibits</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Number</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Description</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">5.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Watson, Farley &#038;
Williams regarding legality of the Common Stock being registered</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">23.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Ernst &#038; Young, Chartered Accountants</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">23.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Watson, Farley &#038; Williams (included in opinion filed as Exhibit 5.1)</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">24.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (see signature page)</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">99.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Teekay Shipping Corporation Amended 1995 Stock Option Plan</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">99.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Teekay Shipping Corporation 2003 Equity Incentive Plan</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<!-- link2 "Item&nbsp;9. Undertakings" -->
<DIV align="left"><A NAME="007"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;9. Undertakings</B>



<P align="left" style="font-size: 10pt">A. The undersigned registrant hereby undertakes:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;To include any prospectus required by Section&nbsp;10(a)(3) of the
Securities Act of 1933, as amended (the &#147;Securities Act&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;To reflect in the prospectus any facts or events arising after the
effective date of this Registration Statement (or the most recent
post-effective amendment thereof) which, individually or


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">in the aggregate, represent a fundamental change in the information set
forth in this Registration Statement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;To include any material information with respect to the plan of
distribution not previously disclosed in this Registration Statement or any
material change to such information in this Registration Statement.

<P align="left" style="font-size: 10pt">Provided, however, that paragraphs (A)(1)(a) and (A)(1)(b) of this section do
not apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in periodic reports filed by the
registrant pursuant to Section&nbsp;13 or Section 15(d) of the Exchange Act of 1934
that are incorporated by reference in this Registration Statement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the termination of
the offering.

<P align="left" style="font-size: 10pt">B. The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act, each filing of the
registrant&#146;s annual report pursuant to Section 13(a) or 15(d) of the Exchange
Act (and, where applicable, each filing of an employee benefits plan&#146;s annual
report pursuant to Section 15(d) of the Exchange Act) that is incorporated by
reference in this Registration Statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.


<P align="left" style="font-size: 10pt">C. Insofar as indemnification for liabilities arising under the Securities Act
may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Commission such indemnification is
against public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other
than the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of
any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the Securities Act and will be governed by the final adjudication
of such issue.



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="008"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Vancouver, Province of British Columbia, on the 6th
day of October, 2004.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3">TEEKAY SHIPPING CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">/s/ Bjorn Moller
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">Bjorn Moller&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">President and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt"><B>POWER OF ATTORNEY</B>




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each person whose individual signature appears below hereby authorizes
Bjorn Moller and Peter Evensen, or either of them, as attorneys-in-fact with
full power of substitution, to execute in the name and on the behalf of each
person, individually and in each capacity stated below, and to file, any and
all amendments to this Registration Statement, including any and all
post-effective amendments.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities indicated below on the 6th day of October, 2004.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Signature</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Title</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" align="center">/s/ Bjorn Moller<BR>
<HR size="1" noshade width="100%" align="left">
Bjorn Moller
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Chief Executive Officer and Director
(Principal Executive Officer)</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top" align="center">/s/ Peter Evensen<BR>
<HR size="1" noshade width="100%" align="left">
Peter Evensen
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief
Financial Officer (Principal Financial and
Accounting&nbsp;Officer)</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top" align="center">/s/ C. Sean Day
<HR size="1" noshade width="100%" align="left">
C. Sean Day
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director and Chairman of the Board</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top" align="center">/s/ Axel Karlshoej<BR>
<HR size="1" noshade width="100%" align="left">
Axel Karlshoej
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director and Chairman Emeritus</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top" align="center">/s/ Bruce C. Bell
<HR size="1" noshade width="100%" align="left">
Bruce C. Bell
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director and Secretary</TD>

</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top" align="center">/s/ Dr.&nbsp;Ian Blackburne
<HR size="1" noshade width="100%" align="left">
Dr.&nbsp;Ian Blackburne
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top" align="center">/s/ Eileen Mercier<BR>
<HR size="1" noshade width="100%" align="left">
Eileen Mercier
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top" align="center">/s/ Thomas Kuo-Yuen Hsu<BR>
<HR size="1" noshade width="100%" align="left">
Thomas Kuo-Yuen Hsu
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top" align="center">/s/ Leif O. H&#246;egh
<HR size="1" noshade width="100%" align="left">
Leif O. H&#246;egh
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top" align="center">/s/ Tore I. Sandvold
<HR size="1" noshade width="100%" align="left">
Tore I. Sandvold
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "INDEX TO EXHIBITS" -->
<DIV align="left"><A NAME="009"></A></DIV>

<P align="center" style="font-size: 10pt"><B>INDEX TO EXHIBITS</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Number</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Description</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Watson, Farley &#038; Williams regarding legality of the Common Stock
being registered</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Ernst &#038; Young, Chartered Accountants</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Watson, Farley &#038; Williams (included in opinion filed as Exhibit&nbsp;5.1)</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">24.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (see signature page)</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Teekay Shipping Corporation Amended 1995 Stock Option Plan</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-right:30px; text-indent: 0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Teekay Shipping Corporation 2003 Equity Incentive Plan</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>2
<FILENAME>o14279exv5w1.htm
<DESCRIPTION>OPINION OF WATSON, FARLEY & WILLIAMS
<TEXT>
<HTML>
<HEAD>
<TITLE>Opinion of Watson, Farley & Williams</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;5.1</B>



<P align="left" style="font-size: 10pt">October&nbsp;4, 2004



<P align="left" style="font-size: 10pt">Teekay Shipping Corporation<BR>
TK House, Bayside Executive Park<BR>
West Bay Street and Blake Road<BR>
Nassau, Commonwealth of the Bahamas


<P align="left" style="font-size: 10pt">Dear Sirs:



<P align="left" style="font-size: 10pt"><B>Teekay Shipping
Corporation - Registration Statement on Form&nbsp;S-8</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have acted as special counsel as to matters of the law of the Republic
of The Marshall Islands (&#147;Marshall Islands Law&#148;) for Teekay Shipping
Corporation, a Marshall Islands corporation (the &#147;Company&#148;), in connection with
the preparation of a Registration Statement on Form S-8 (the &#147;Registration
Statement&#148;) filed by the Company with the Securities and Exchange Commission
pursuant to the Securities Act of 1933, as amended, and the rules and
regulations thereunder, with respect to (i)&nbsp;1,245,402 shares of the Company&#146;s
common stock, $0.001 par value per share, which are currently reserved for
issuance and subject to outstanding options under the Company&#146;s 1995 Stock
Option Plan (the &#147;1995 Plan&#148;), and will become reserved for issuance under the
Company&#146;s 2003 Equity Incentive Plan, as amended to date (the &#147;2003 Plan&#148;), to
the extent that such options under the 1995 Plan are cancelled or terminated
without shares being issued under the 1995 Plan, (ii)&nbsp;815,440 shares of the
Company&#146;s common stock, $0.001 par value per share, which are currently
reserved for issuance and subject to outstanding options under the 2003 Plan
and (iii)&nbsp;1,910,904 shares of the Company&#146;s common stock, par value $0.001 per
share, which may be issued pursuant to the 2003 Plan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In so acting, we have examined originals, or copies, certified to our
satisfaction, of (i)&nbsp;the Articles of Incorporation of the Company, as amended
to date, (ii)&nbsp;the By-Laws of the Company, as amended to date, (iii)&nbsp;resolutions
adopted by the Board of Directors of the Company on September&nbsp;10, 2003, (iv)
the Registration Statement, (v)&nbsp;the 1995 Plan, (vi)&nbsp;the 2003 Plan and (vii)
originals, or copies certified to our satisfaction, of all such corporate
records of the Company, agreements and other documents, certificates of public
officials and officers and representatives of the Company and other appropriate
persons, and such other documents as we have deemed necessary as a basis for
the opinions hereinafter expressed. In such examinations, we have assumed
without independent investigation, (i)&nbsp;the genuineness of all signatures, the
authenticity of all documents submitted to us as originals, the conformity to
original documents of all documents submitted to us as photostatic or facsimile
copies, and the authenticity of the originals of such copies and (ii)&nbsp;the
accuracy of the factual representations made to us by officers and other
representatives of the Company, whether evidenced by certificates or otherwise.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This opinion is limited to the Marshall Islands law. In rendering this
opinion, we have relied on opinions of counsel in the Marshall Islands rendered
in transactions which we consider to be sufficiently similar to the issuance
and sale contemplated by the Registration Statement in order to afford a
satisfactory basis for such opinion, and upon our independent examination of
the Associations Law of the Republic of the Marshall Islands and our knowledge
and interpretation of analogous laws of the United States.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on the foregoing and having regard to legal considerations which we
deem relevant, we are of the opinion that any shares of the Company&#146;s common
stock that may be issued pursuant to the 1995 Plan and the 2003 Plan have been
duly authorized and that, upon the execution by the proper officers of the
Company and the registration by its registrar of such shares, the sale thereof
by the Company in accordance with the terms of the 1995 Plan or the 2003 Plan,
as the case may be, the receipt of consideration therefor in accordance with
the terms of the 1995 Plan or the 2003 Plan, as the case may be, such shares
will be validly issued, fully paid and non-assessable.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our opinion is as of the date hereof and we have no responsibility to
update this opinion for events and circumstances occurring after the date
hereof or as to facts relating to prior events that are subsequently brought to
our attention. We disavow any undertaking to advise you of any changes in law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consent to the filing of this opinion as an exhibit to the Registration
Statement. In giving such consent, we do not admit that we are in the category
of persons whose consent is required under Section&nbsp;7 of the Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This opinion is solely for the benefit of and may be relied upon by the
Company. This opinion may not be relied upon by any other person or entity
without the prior written approval of the undersigned.


<P align="left" style="font-size: 10pt">Very truly yours,



<P align="left" style="font-size: 10pt"><B>WATSON, FARLEY &#038; WILLIAMS</B>

<P align="left" style="font-size: 10pt">/s/ WATSON FARLEY &#38;
WILLIAMS


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>o14279exv23w1.htm
<DESCRIPTION>CONSENT OF ERNST & YOUNG LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>Consent of Ernst & Young LLP</TITLE>
</HEAD>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;23.1</B>



<P align="center" style="font-size: 10pt"><B>CONSENT OF INDEPENDENT CHARTERED ACCOUNTANTS</B>



<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We consent to the incorporation by reference in the Registration Statement
pertaining to the Amended 1995 Stock Option Plan and 2003 Equity Incentive Plan
of Teekay Shipping Corporation of our report dated February&nbsp;18, 2004 (except
for Note 20(b) which is as of March&nbsp;15, 2004), with respect to the consolidated
financial statements and the financial schedule listed in Index: Item&nbsp;18 of
Teekay Shipping Corporation and its subsidiaries included in the Annual Report
(Form 20-F) for the year ended December&nbsp;31, 2003.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="46%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Vancouver, Canada,
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Ernst &#038; Young LLP</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">October&nbsp;4, 2004
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chartered Accountants</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>o14279exv99w1.htm
<DESCRIPTION>AMENDED 1995 STOCK OPTION PLAN
<TEXT>
<HTML>
<HEAD>
<TITLE>Amended 1995 Stock Option Plan</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;99.1</B>



<P align="center" style="font-size: 10pt"><B>TEEKAY SHIPPING CORPORATION</B>



<P align="center" style="font-size: 10pt"><B>1995 STOCK OPTION PLAN<BR>
(as amended through May&nbsp;2004)</B>



<P align="left" style="font-size: 10pt"><B>1. Purpose</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">1.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The purpose of the 1995 Stock Option Plan (the &#147;Plan&#148;) is to provide an
effective long term incentive for selected key employees, directors,
officers and consultants of Teekay Shipping Corporation and related
companies including Teekay Shipping Limited (including its affiliates,
&#147;Teekay Shipping&#148;), which provides management services to Teekay Shipping
Corporation, to foster a greater proprietary interest in the continued
success of the Company.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>2. Definitions</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">2.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In this Plan:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Board&#148; means the Board of Directors of Teekay Shipping
Corporation;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Company&#148; means Teekay Shipping Corporation, or any successor
corporation;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Committee&#148; means the committee of the Board charged with the
responsibility of administering the Plan or, failing the designation
of a committee, Committee means the Board;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Consultant&#148; means any person who acts as a consultant,
advisor or independent contractor to the Company or a Participating
Related or Subsidiary Company;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Director&#148; means a member of the Board of Directors of Teekay
Shipping Corporation or a Participating Related or Subsidiary
Company. A Director who is an Employee will be governed by the Plan
as an Employee and will not be subject to any provisions which would
otherwise apply to Directors. In no event will benefits under the
Plan for a Director be additive to benefits for an Employee (or vice
versa) who is the same person;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Employee&#148; means any person who is a full-time or permanent
part-time salaried employee on the payroll of Teekay Shipping
Corporation or any Participating Related or Subsidiary Company, but
shall specifically exclude temporary, seasonal or contract help;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Officer&#148; means any person who is appointed as an Officer by
the Board of Directors of the Company or of a Participating Related
or Subsidiary company;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Options&#148; means the rights granted to an Officer, Employee,
Director or Consultant to purchase Shares in accordance with the
terms of the Plan;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Participant&#148; means an Officer, Employee, Director or
Consultant who has been granted Options to purchase Shares of the
Company in accordance with the terms of the Plan;</TD>
</TR>



</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Participating Related or Subsidiary Company&#148; means a
subsidiary of Teekay Shipping Corporation or a related company
designated by the Board as having Officers, Employees, Directors or
Consultants eligible under the Plan;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Plan&#148; means this 1995 Stock Option Plan of Teekay Shipping
Corporation;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Retirement&#148; or &#147;Retires&#148; means the early or normal
retirement of an Employee within the retirement policy of the
Company, whether or not such Employee is a member of or entitled to
benefits under any retirement plan of the Company. With respect to
a Director, retirement means cessation of such person&#146;s term as a
Director upon the scheduled end of such term or earlier upon
resignation;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Shares&#148; or &#147;Stock&#148; means common shares of Teekay Shipping
Corporation;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Share Appreciation Rights (SAR)&#148; means the increase in fair
market value of the common shares of Teekay Shipping Corporation
from the date of grant to date of exercise; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Total Disability&#148; means solely because of disease or injury,
an Employee is deemed by a qualified physician selected by the
Company to be unable to work at any occupation which the Employee is
reasonably qualified to perform. In the case of a Director, total
disability means solely because of disease or injury, a Director is
deemed by a qualified physician selected by the Company to be unable
to carry out his or her responsibilities as a Director.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>3. Administration</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">3.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Plan shall be administered by the Committee.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">3.02</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Committee shall:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>formulate guidelines and administrative provisions to
implement and run he Plan;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>decide all matters relating to the administration of the Plan
including the interpretation of the terms of the Plan. Any decision
of the Committee shall be conclusive unless otherwise determined by
the Board;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>design and approve any forms and agreements required to carry
out the provisions of the Plan;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>delegate to any person or persons administrative duties as
the Committee considers appropriate;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>determine the time at which Options shall be granted, the
number of Shares subject to each Option, the price at which the
Option may be exercised, the term during which the Option may be
exercised and any restrictions which limit exercise; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>designate those individuals, subject to section 4.01, to whom
Stock Options may be granted.</TD>
</TR>




</TABLE>

<P align="center" style="font-size: 10pt">-2-
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="left" style="font-size: 10pt"><B>4. Eligibility</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">4.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless expressly excluded herein, Officers, Employees, Directors and
Consultants of Teekay Shipping Corporation and Related or Subsidiary
Companies shall be eligible to become Participants.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>5. Shares Subject to the Plan and Duration of the Plan</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">5.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of Shares reserved and available for Options under the Plan
shall be 16,597,142 shares.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">5.02</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No increase in the number of Shares reserved for issuance under the Plan
is allowed without approval of the Board.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">5.03</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Shares which are subject to Options which are cancelled or forfeit
shall be available for the granting of Options thereafter under the Plan.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">5.04</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Plan shall be effective upon the Initial Public Offering of the
Company and shall continue as long as Options under the Plan are
available.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>6. Share Appreciation Rights</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">6.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In tandem with each Option granted under the Plan, the Committee may
grant an equal number of Share Appreciation Rights (SAR). SAR&#146;s are
subject to the same provisions covering price, vesting, term, exercise and
termination of employment as apply to the Options to which each is
contingently attached.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">6.02</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The purpose of the SAR&#146;s is to increase the flexibility of the
Participant and the Company in the exercise of an Option and the
administration of the Plan. The granting of an SAR in tandem with an
Option is not intended to increase the compensation Participants would
otherwise earn through the Plan. The exercise of either one automatically
cancels the right to exercise the other.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">6.03</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each SAR carries with it the right of a Participant to receive payment
from the Company equal to the gain that would have been realized if the
related Share Option had been exercised and the shares resold at fair
market value on the date of exercise.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">6.04</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Participant may elect to exercise an SAR if his or her intent is not to
retain ownership of the shares being exercised. At the time of exercise
the Participant is required to notify the Company of his or her intention
on the prescribed form.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">6.05</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Participant may elect to receive an SAR award in cash, Shares or any
combination of the two.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>7. Terms and Conditions of Options</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">7.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Option granted under the Plan shall be evidenced by a written
agreement between the Company and the Participant. The agreements shall
include the substance of the following provisions:</TD>
</TR>



</TABLE>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of Shares for which the Options (and SAR&#146;s &#091;if
any&#093; granted in tandem) are granted;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the price at which the Options (or SAR&#146;s) may be exercised;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unless otherwise specified by the Committee, 25% of the
Options (or SAR&#146;s) granted will vest and be exercisable the day
following one year from the date of the grant of the Options, with a
further 25% of the Options (or SAR&#146;s) vesting and becoming
exercisable the day following each subsequent year from the date of
the grant;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an expiry date determined by the Committee which under no
circumstances will be later than ten years after the grant of the
Options (and SAR&#146;s granted in tandem);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Options (or SAR&#146;s) may be exercised only upon submitting
written notice of exercise, accompanied by payment in full of the
Option price (if the Option is being exercised). Payment on
exercise of an Option may be made by the Participant in cash or
certified cheque, or such other forms of payment as may be permitted
by the Committee at any time prior to exercise of the Option; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" nowrap align="right">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Options and the rights and privileges conferred by the Plan
may not be transferred, assigned, pledged or hypothecated in any
manner (whether by operation of law or otherwise) other than by will
or by the applicable laws of descent and distribution and shall not
be subject to execution, attachment or similar process. Any attempt
to transfer, assign, pledge, hypothecate or otherwise dispose of any
Option, or of any right or privilege conferred hereby, contrary to
the provisions of this Plan, or the sale or levy or any attachment
or similar process upon the rights and privileges conferred hereby
shall be null and void. Notwithstanding the foregoing, if the
Committee permits, a Participant may, during the Participant&#146;s
lifetime, designate a person who may exercise the Option after the
Participant&#146;s death by giving written notice of such designation to
the Committee. Such designation may be changed from time to time by
a Participant by giving written notice to the Committee revoking any
earlier designation and making a new designation.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">7.02</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a change in the Shares of Teekay Shipping Corporation occurs by reason
of subdivision, split, reverse split, stock dividend, or similar
recapitalization, then an equitable adjustment shall be made by the Board
for outstanding Options.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>8. Effect of Liquidation, Reorganization or Acquisition</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">8.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as provided in section 8.02, upon a merger (other than a merger of
the Company in which the holders of Stock immediately prior to the merger
have the same proportionate ownership of Stock in the surviving
corporation immediately after the merger), consolidation, acquisition of
property or stock, separation, reorganization (other than a mere
re-incorporation or the creation of a holding company) or liquidation of
the Company, as a result of which the shareholders of the Company receive
cash, stock or other property in exchange for or in connection with their shares of Stock, any Option shall terminate, but the Participant shall
have the right immediately prior to any
such merger, consolidation, acquisition of property or stock, separation,
reorganization or liquidation to exercise such Participant&#146;s option in
whole or in part whether or not the vesting requirements set forth in the
agreement relating to such Option have been satisfied.</TD>
</TR>



</TABLE>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">8.02</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If all the shareholders of the Company receive capital stock of another
corporation (&#147;Exchange Stock&#148;) in exchange for their shares of Stock in
any transaction involving a merger, consolidation, acquisition of property
or stock, separation or reorganization, all Options granted hereunder
shall be converted into options to purchase shares of Exchange Stock
unless the Company and the corporation issuing the Exchange Stock, in
their sole discretion, determine that any or all such options granted
hereunder shall not be converted into options to purchase shares of
Exchange Stock but instead shall terminate in accordance with the
provisions of section 8.01. The amount and price of converted options
shall be determined by adjusting the amount and price of the Options
granted hereunder in the same proportion as used for determining the
number of shares of Exchange Stock the holders receive in such merger,
consolidation, acquisition of property or stock, separation or
reorganization. Unless accelerated by the Board, the vesting schedule set
forth in the Option agreement shall continue to apply to the options
granted for the Exchange Stock.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="left">8.03</TD>
    <TD width="1%">(a)</TD>
    <TD>&nbsp;A Participant shall have the right, upon and after the
making of an Offer, to exercise such Participant&#146;s Options
(or related SAR&#146;s) in whole or in part whether or not the
vesting requirements set forth in the Plan or in the
agreement relating to the Options (or related SAR&#146;s) have
been satisfied. In the case of Options (or related SAR&#146;s)
where such vesting requirements have not been satisfied, the
exercise shall be solely for the purpose of permitting the
Participant to tender the Shares received upon such exercise
pursuant to the Offer.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">(b)</TD>
    <TD>&nbsp;&#147;Offer&#148; means an offer:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" nowrap align="right">(i)&nbsp;&nbsp;&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>made generally to the holders of the Company&#146;s
voting securities, to the Participant or to a class of
security holders which include the Participant, in one or more
jurisdictions to purchase directly or indirectly voting
securities of the Company or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">(ii)&nbsp;&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which is a tender offer, exchange offer or
take-over bid in any applicable jurisdiction (disregarding for
that purpose any minimum percentage of shares to be acquired
to constitute such offer or bid in such jurisdictions)</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:6%; font-size: 10pt">where the voting securities which are the subject of the Offer,
together with the offeror&#146;s then presently beneficially owned
voting securities, would in the aggregate exceed 25% of the
outstanding voting securities of the Company. If two or more
persons, corporations or entities make offers jointly or in concert
or intend to exercise jointly or in concert any voting rights
attaching to the securities to be acquired, then the voting
securities beneficially owned by each of them shall be included in
the calculation of the percentage of the outstanding voting
securities of the Company beneficially owned by each of them.



<P align="left" style="margin-left:6%; font-size: 10pt">Notwithstanding the foregoing, Offer does not include an Offer made
by the Company, any subsidiary or related company with the approval
of the Board or any employee benefit plan sponsored by the Company.



<P align="left" style="margin-left:6%; font-size: 10pt">In this Section&nbsp;8.03 and in Section&nbsp;8.04, &#147;beneficial ownership&#148;,
&#147;beneficially owned&#148;, and words of similar import shall have the
meaning, with necessary grammatical changes, in Rule&nbsp;13d-3 of the
<I>Securities Exchange Act </I>of 1934, as amended.


<P align="center" style="font-size: 10pt">-5-
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company shall, immediately upon receipt of notice of the
Offer, notify each Participant of full particulars of the Offer.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In lieu of or in combination with (but not in duplication of)
the right set out in Section&nbsp;8.03(a), a Participant shall also have
the right, exercisable during the 30 (thirty)&nbsp;days after the Offer
has been consummated by the offeror taking up and paying for Shares
pursuant to the Offer, to surrender such Participant&#146;s Options (or
related SAR&#146;s) in whole or in part to the Company (whether or not
the Options (or related SAR&#146;s) are otherwise vested at the time).
The Participant shall in return be entitled to a cash distribution
from the Company in an amount equal to the excess of (i)&nbsp;the
Take-Over Price of the Shares at the time subject to such
surrendered Option (or related SAR) (or surrendered portion of such
Option (or related SAR)) over (ii)&nbsp;the aggregate exercise price
payable for such Shares. Such cash distribution shall be made
within five (5)&nbsp;days following the Option (or related SAR) surrender
date. Upon receipt of such cash distribution, the Option (or
related SAR) shall be cancelled with respect to the Shares subject
to the surrendered Option (or related SAR) (or surrendered portion
of such Option (or related SAR)) and the Participant shall cease to
have any further right to acquire Shares pursuant thereto. The
Option (or related SAR) shall however remain outstanding for the
balance of the Shares and the Company shall issue a new agreement
for those remaining Shares.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Take-Over Price&#148; shall mean the greater of (i)&nbsp;the Fair Market
Value per Share on the date the Option (or related SAR) is
surrendered to the Company in connection with the Offer and (ii)
the highest reported price per Share paid by the offeror in
effecting such Offer.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Fair Market Value&#148; per Share on any relevant date shall mean the
closing selling price per Share on the date in question on the
stock exchange or quotation system which is the primary market for
the Shares. If there is no closing selling price for the Shares on
the date in question, then the Fair Market Value shall mean the
closing selling price on the last preceding date for which such
quotation exists, if any, or as shall be determined by the Board
based on the advice of an independent investment banker.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If, after consummation of the Offer by the offeror taking up
and paying for Shares pursuant to the Offer, there is an Involuntary
Termination of a Participant who holds Options (or related SAR&#146;s) in
respect of which Shares were not tendered or taken up and paid for
pursuant to the Offer nor surrendered pursuant to Section&nbsp;8.03(d),
such Participant shall be entitled, notwithstanding Section&nbsp;9.01, to
exercise such Options (or related SAR&#146;s) for a period of five years,
or such longer period as may be determined by the Board, following
Involuntary Termination, provided that such exercise may not be made
after the expiration of the right to exercise such Options (or
related SAR&#146;s) for any reason other than Involuntary Termination.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Involuntary Termination&#148; means the termination of a Participant&#146;s
service by reason of:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Participant&#146;s involuntary dismissal or discharge
for reasons other than Misconduct; or</TD>
</TR>



</TABLE>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" nowrap align="right">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Participant&#146;s voluntary resignation following (a)
a change in Participant&#146;s position which materially reduces
Participant&#146;s level of responsibility (b)&nbsp;a reduction in
Participant&#146;s level of compensation (including base salary,
fringe benefits or participation in any corporate performance
based bonus or incentive programs) by more than 15% or (c)&nbsp;a
relocation of Participant&#146;s place of employment by more than
50 miles, provided and only if such change, reduction or
relocation is effected without the Participant&#146;s consent.</TD>
</TR>

</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Misconduct&#148; shall mean the commission of any act of fraud,
embezzlement or dishonesty by Participant, or unauthorized use or
disclosure by Participant of confidential information or trade
secretes of the Company (or any subsidiary or related company), or
any intentional misconduct by Participant adversely affecting the
business or affairs of the Company (or any subsidiary or related
company) in a material manner. The foregoing definition shall not
be deemed to be inclusive of all the acts or omissions which the
Company (or any subsidiary or related company) may consider as
grounds for the dismissal or discharge of Participant or any other
person in the service of the Company (or subsidiary or related
company).

</TABLE>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.04</TD>
    <TD width="1%">(a)</TD>
    <TD>&nbsp;A Participant shall have the right, upon and after a Board Change or
a Control Purchase, to exercise such Participant&#146;s Options (or related
SAR&#146;s) in whole or in part whether or not the vesting requirements set
forth in the Plan or in the agreement relating to the Options (or related
SAR&#146;s) have been satisfied.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">(b)</TD>
    <TD>&nbsp;&#147;Board Change&#148; means, during any period of two consecutive
years or less, persons who at the beginning of such period
constituted the entire Board of Directors ceased for any reason to
constitute a majority thereof unless the election or appointment, or
the nomination for election by the Company&#146;s shareholders, of each
new Director was approved by a vote of at least two-thirds of the
Directors then still in office who were Directors at the beginning
of the period.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">(c)</TD>
    <TD>&nbsp;&#147;Control Purchase&#148; means any transaction in which any person,
corporation or entity shall become the beneficial owner directly or
indirectly of more than 25% of the outstanding voting securities of
the Company, and such person, corporation or entity shall vote any
of such securities at any meeting of the shareholders of the Company
in favour of a resolution passed at such meeting which was not
recommended by a majority of the &#147;Continuing Directors&#148; (as defined
in the Amended and Restated Articles of Incorporation of the
Company). If two or more persons, corporations or entities jointly
or in concert beneficially own the securities or intend to exercise
jointly or in concert any voting rights attaching to the securities,
then the voting securities beneficially owned by each of them shall
be included in the calculation of the percentage of the outstanding
voting securities of the Company beneficially owned by each of them.
The foregoing definition does not apply to beneficial ownership by
the Company, any subsidiary or related company with the approval of
the Board or any employee benefit plan sponsored by the Company.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">8.05</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding anything to the contrary in the Plan or in the agreement
relating to the Options (or related SAR&#146;s), the Board or the Committee,
may, in its discretion, at any time, determine that a
Participant shall have the right to exercise such Participant&#146;s Options
(or related SAR&#146;s) in whole or in part whether or not the vesting
requirements set forth in the Plan or in the agreement relating to the
Options (or related SAR&#146;s) have been satisfied; and may, in its
discretion rescind</TD>
</TR>





</TABLE>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such determination made by it but without depriving a
Participant of the benefits to which he or she would otherwise be
entitled as a result of having exercised the Options (or related SAR&#146;s)
before the rescission of the determination.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>9. Termination of Employment or Ceasing to be a Director</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">9.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a Participant ceases to be an Officer, Employee, Director or
Consultant for any reason other than Disability, Retirement or Death, then
all options not yet vested shall immediately expire on the date the
Participant ceases to be an Officer, Employee, Director or Consultant and
any unexercised Options which are vested pursuant to the provisions of
section 7.01(c) must be exercised in accordance with terms of the granting
of the Options except that such exercise shall be, unless otherwise
provided by the Committee, on or before the earlier of the expiration of
90&nbsp;days immediately following the date of ceasing to be an Officer,
Employee, Director or Consultant or the expiration date of such Options
pursuant to section 7.01(d), and thereafter any Options not exercised
shall expire.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">9.02</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a Participant Retires or becomes Totally Disabled after the granting
of the Options, all vesting periods set forth in section 7.01(c) will be
waived and the Options will be exercisable at any time up to the earlier
of five years from the date of Retirement or Disability or the expiration
dates of such Options in accordance with the terms of the granting of the
Options, and thereafter any Options not exercised shall expire.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">9.03</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a Participant dies during active service following the granting of
Options, all vesting periods set forth in section 7.01(c) will be waived
and such Options will expire two years from the date of death or the
expiration of the Options, whichever is earlier, and thereafter all
Options expire.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>10. Amendment and Termination</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">10.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Board may at any time amend, suspend or terminate the Plan in whole
or in part provided that no amendment, suspension or termination shall
adversely affect the vested rights of any Participant without the consent
of such Participant.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">10.02</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any amendment, suspension or termination of the Plan shall be
communicated to all participants within thirty (30)&nbsp;days of such
amendment, suspension or termination.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">10.03</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No amendment, suspension or termination of the Plan may contravene the
requirements of any securities commission, stock exchange, or regulatory
body of any jurisdiction to which the Plan or Teekay Shipping Corporation
is now or may hereafter be subject to.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>11. General</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">11.01</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Plan and any agreement entered into pursuant to section 7 hereof
shall be construed and interpreted according to the laws of the
Commonwealth of the Bahamas.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">11.02</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any provision in this Plan is void, the remaining provisions shall be
binding as though the void parts were deleted.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">11.03</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Participation in the Plan does not confer upon the Officer, Employee,
Director or Consultant any right to continued employment (Employee),
status as a Director (Director), or appointment as an Officer or
Consultant. Participation in the Plan does not create any rights or
privileges of a</TD>
</TR>




</TABLE>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shareholder of the Company with respect to any Shares
issuable upon exercise of any Option unless and until such Option has been
exercised.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">11.04</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purposes of the Plan, unless the context otherwise requires,
words importing the singular include the plural and vice versa, and words
importing the male gender include the female gender and vice versa.</TD>
</TR>

</TABLE>



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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>5
<FILENAME>o14279exv99w2.htm
<DESCRIPTION>2003 EQUITY INCENTIVE PLAN
<TEXT>
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<TITLE>2003 Equity Incentive Plan</TITLE>
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<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;99.2</B>



<P align="center" style="font-size: 10pt"><B>TEEKAY SHIPPING CORPORATION</B>



<P align="center" style="font-size: 10pt"><B>2003 EQUITY INCENTIVE PLAN</B>


<P align="left" style="font-size: 10pt"><B>SECTION 1. PURPOSE</B>


<P align="left" style="font-size: 10pt">The purpose of the Teekay Shipping Corporation 2003 Equity Incentive Plan is to
attract, retain and motivate employees, officers, directors, consultants,
agents, advisors and independent contractors of Teekay Shipping Corporation and
its Related Companies by providing them the opportunity to acquire a
proprietary interest in the Company and to link their interests and efforts to
the long-term interests of the Company&#146;s shareholders.


<P align="left" style="font-size: 10pt"><B>SECTION 2. DEFINITIONS</B>


<P align="left" style="font-size: 10pt">As used in the Plan,


<P align="left" style="font-size: 10pt"><B>&#147;Acquired Entity&#148; </B>means any entity acquired by the Company or a Related Company
or with which the Company or a Related Company merges or combines.


<P align="left" style="font-size: 10pt"><B>&#147;Acquisition Price&#148; </B>means the higher of (a)&nbsp;the highest reported sales price,
regular way, of a share of Common Stock in any transaction reported on the New
York Stock Exchange Composite Tape or other national exchange on which the
Common Stock is listed or on Nasdaq during the 60-day period prior to and
including the date of a Company Transaction or Change in Control or (b)&nbsp;if the
Company Transaction or Change in Control is the result of a tender or exchange
offer or a negotiated acquisition of the Company&#146;s Common Stock, the highest
price per share of Common Stock paid in such tender or exchange offer or
acquisition. To the extent that the consideration paid in any such transaction
described above consists all or in part of securities or other noncash
consideration, the value of such securities or other noncash consideration
shall be determined by the Board in its sole discretion.


<P align="left" style="font-size: 10pt"><B>&#147;Award&#148; </B>means any Option, Stock Appreciation Right, Restricted Stock, Stock
Unit, Performance Stock, Performance Unit, dividend equivalent, cash-based
award or other incentive payable in cash or in shares of Common Stock as may be
designated by the Committee from time to time.


<P align="left" style="font-size: 10pt"><B>&#147;Board&#148; </B>means the Board of Directors of the Company.


<P align="left" style="font-size: 10pt"><B>&#147;Cause</B>,<B>&#148; </B>unless otherwise defined in the instrument evidencing the Award or in
a written employment, services or other agreement between the Participant and
the Company or a Related Company, means dishonesty, fraud, serious misconduct,
unauthorized use or disclosure of confidential information or trade secrets, or
conduct prohibited by criminal law (except minor violations), in each case as
determined by the Company&#146;s chief human resources officer or other person
performing that function or, in the case of directors and executive officers,
the Committee, whose determination shall be conclusive and binding.


<P align="left" style="font-size: 10pt"><B>&#147;Change in Control</B>,<B>&#148; </B>unless the Committee determines otherwise with respect to
an Award at the time the Award is granted, means the happening of any of the
following events:


<P align="left" style="font-size: 10pt">(a)&nbsp;an acquisition by any individual, entity or group (within the meaning of
Section&nbsp;13(d)(3) of the Exchange Act) (an &#147;Entity&#148;) of beneficial ownership
(within the meaning of Rule&nbsp;13d-3 promulgated under the Exchange Act) of 25% or
more of either (1)&nbsp;the then outstanding shares of common stock of



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<P align="left" style="font-size: 10pt">the Company (the &#147;Outstanding Company Common Stock&#148;) or (2)&nbsp;the combined voting
power of the then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the &#147;Outstanding Company Voting
Securities&#148;), excluding, however, the following (i)&nbsp;any acquisition directly
from the Company, other than an acquisition by virtue of the exercise of a
conversion privilege where the security being so converted was not acquired
directly from the Company by the party exercising the conversion privilege,
(ii)&nbsp;any acquisition by the Company, (iii)&nbsp;any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
Related Company, or (iv)&nbsp;a Related Party Transaction; or


<P align="left" style="font-size: 10pt">(b)&nbsp;a change in the composition of the Board during any two-year period such
that the individuals who, as of the beginning of such two-year period,
constitute the Board (the &#147;Incumbent Board&#148;) cease for any reason to constitute
at least a majority of the Board; provided, however, that for purposes of this
definition, any individual who becomes a member of the Board subsequent to the
beginning of the two-year period, whose election, or nomination for election by
the Company&#146;s shareholders, was approved by a vote of at least two-thirds of
those individuals who are members of the Board and who were also members of the
Incumbent Board (or deemed to be such pursuant to this proviso) shall be
considered as though such individual were a member of the Incumbent Board; and
provided further, however, that any such individual whose initial assumption of
office occurs as a result of or in connection with an actual or threatened
solicitation of proxies or consents by or on behalf of an Entity other than the
Board shall not be considered a member of the Incumbent Board.


<P align="left" style="font-size: 10pt"><B>&#147;Committee&#148; </B>has the meaning set forth in Section&nbsp;3.1.


<P align="left" style="font-size: 10pt"><B>&#147;Common Stock&#148; </B>means the common stock, par value $0.001 per share, of the
Company.


<P align="left" style="font-size: 10pt"><B>&#147;Company&#148; </B>means Teekay Shipping Corporation, a Republic of the Marshall Islands
corporation.


<P align="left" style="font-size: 10pt"><B>&#147;Company Transaction</B>,<B>&#148; </B>unless otherwise defined in the instrument evidencing
the Award or in a written employment, services or other agreement between the
Participant and the Company or a Related Company, means consummation of:


<P align="left" style="font-size: 10pt">(a)&nbsp;a merger or consolidation of the Company with or into any other company or
other entity;


<P align="left" style="font-size: 10pt">(b)&nbsp;a sale in one transaction or a series of transactions undertaken with a
common purpose of at least 50% of the Company&#146;s outstanding voting securities,
or


<P align="left" style="font-size: 10pt">(c)&nbsp;a sale, lease, exchange or other transfer in one transaction or a series of
related transactions undertaken with a common purpose of all or substantially
all of the Company&#146;s assets.


<P align="left" style="font-size: 10pt">Where a series of transactions undertaken with a common purpose is deemed to be
a Company Transaction, the date of such Company Transaction shall be the date
on which the last of such transactions is consummated.


<P align="left" style="font-size: 10pt"><B>&#147;Disability</B>,<B>&#148; </B>unless otherwise defined by the Committee or in the instrument
evidencing the Award or in a written employment, services or other agreement
between the Participant and the Company or a Related Company, means a mental or
physical impairment of the Participant that is expected to result in death or
that has lasted or is expected to last for a continuous period of 12&nbsp;months or
more and that causes the Participant to be unable to perform his or her
material duties for the Company or a Related Company and to be engaged in any
substantial gainful activity, in each case as determined by the Company&#146;s chief



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<P align="left" style="font-size: 10pt">human resources officer or other person performing that function or, in the
case of directors and executive officers, the Committee, whose determination
shall be conclusive and binding.


<P align="left" style="font-size: 10pt"><B>&#147;Effective Date&#148; </B>has the meaning set forth in Section&nbsp;16.


<P align="left" style="font-size: 10pt"><B>&#147;Eligible Person&#148; </B>means any person eligible to receive an Award as set forth in
Section&nbsp;5.


<P align="left" style="font-size: 10pt"><B>&#147;Exchange Act&#148; </B>means the U.S. Securities Exchange Act of 1934, as amended from
time to time.


<P align="left" style="font-size: 10pt"><B>&#147;Fair Market Value&#148; </B>means the average of the high and low trading prices for
the Common Stock on any given date during regular trading, or if not trading on
that date, such price on the last preceding date on which the Common Stock was
traded, unless determined otherwise by the Committee using such methods or
procedures as it may establish, including an average of trading days not to
exceed 30&nbsp;days from the Grant Date.


<P align="left" style="font-size: 10pt"><B>&#147;Good Reason</B>,<B>&#148; </B>unless otherwise defined by the Committee or in the instrument
evidencing the Award or in a written employment, services or other agreement
between the Participant and the Company or a Related Company, means the
Participant&#146;s voluntary resignation following any of the following events or
conditions and the failure of the Successor Company to cure such event or
condition within 30&nbsp;days after receipt of written notice from the Participant:
(a)&nbsp;a change in the Participant&#146;s position which materially reduces the
Participant&#146;s level of responsibility; (b)&nbsp;a reduction in the Participant&#146;s
level of compensation (including base salary, fringe benefits or participation
in any corporate performance based bonus or incentive programs) by more than
15%; or (c)&nbsp;a relocation of the Participant&#146;s place of employment by more than
50 miles; provided and only if such change, reduction or relocation is effected
without the Participant&#146;s consent.


<P align="left" style="font-size: 10pt"><B>&#147;Grant Date&#148; </B>means the later of (a)&nbsp;the date on which the Committee completes
the corporate action authorizing the grant of an Award or such later date
specified by the Committee or (b)&nbsp;the date on which all conditions precedent to
the Award have been satisfied, provided that conditions to the exercisability
or vesting of Awards shall not defer the Grant Date.


<P align="left" style="font-size: 10pt"><B>&#147;Option&#148; </B>means a right to purchase shares of Common Stock granted under Section
7.


<P align="left" style="font-size: 10pt"><B>&#147;Participant&#148; </B>means any Eligible Person to whom an Award is granted.


<P align="left" style="font-size: 10pt"><B>&#147;Performance Stock&#148; </B>means an Award granted under Section&nbsp;10.1.


<P align="left" style="font-size: 10pt"><B>&#147;Performance Unit&#148; </B>means an Award granted under Section&nbsp;10.2.


<P align="left" style="font-size: 10pt"><B>&#147;Plan&#148; </B>means the Teekay Shipping Corporation 2003 Equity Incentive Plan.


<P align="left" style="font-size: 10pt"><B>&#147;Related Company&#148; </B>means any entity that is directly or indirectly controlled
by the Company.


<P align="left" style="font-size: 10pt"><B>&#147;Related Party Transaction&#148; </B>means a Company Transaction pursuant to which:


<P align="left" style="font-size: 10pt">(a)&nbsp;all or substantially all of the individuals and entities who are the
beneficial owners of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Company Transaction will
beneficially own, directly or indirectly, more than 50% of the outstanding
shares of common stock, and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors of
the company resulting from such



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<P align="left" style="font-size: 10pt">Company Transaction (including a company or
other entity which as a result of such transaction owns the Company or all or
substantially all of the Company&#146;s assets either directly or through one or
more subsidiaries (a &#147;Parent Company&#148;)) in substantially the same proportions
as their ownership, immediately prior to such Company Transaction, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities;


<P align="left" style="font-size: 10pt">(b)&nbsp;no Entity (other than the Company, any employee benefit plan (or related
trust) of the Company or a Related Company, the company resulting from such
Company Transaction or, if reference was made to equity ownership of any Parent
Company for purposes of determining whether clause (a)&nbsp;above is satisfied in
connection with the applicable Company Transaction, such Parent Company) will
beneficially own, directly or indirectly, 40% or more of, respectively, the
outstanding shares of common stock of the company resulting from such Company
Transaction or the combined voting power of the outstanding voting securities
of such company entitled to vote generally in the election of directors unless
such ownership resulted solely from ownership of securities of the Company
prior to the Company Transaction; and


<P align="left" style="font-size: 10pt">(c)&nbsp;individuals who were members of the Incumbent Board will immediately after
the consummation of the Company Transaction constitute at least a majority of
the members of the board of directors of the company resulting from such
Company Transaction (or, if reference was made to equity ownership of any
Parent Company for purposes of determining whether clause (a)&nbsp;above is
satisfied in connection with the applicable Company Transaction, of the Parent
Company).


<P align="left" style="font-size: 10pt"><B>&#147;Restricted Stock&#148; </B>means an Award of shares of Common Stock granted under
Section&nbsp;9, the rights of ownership of which may be subject to restrictions
prescribed by the Committee.


<P align="left" style="font-size: 10pt"><B>&#147;Retirement</B>,<B>&#148; </B>unless otherwise defined in the instrument evidencing the Award
or in a written employment, services or other agreement between the Participant
and the Company or a Related Company, means &#147;Retirement&#148; as defined for
purposes of the Plan by the Committee or the Company&#146;s chief human resources
officer or other person performing that function or, if not so defined, means
Termination of Service on or after the date the Participant reaches the
Company&#146;s normal retirement age.


<P align="left" style="font-size: 10pt"><B>&#147;Securities Act&#148; </B>means the U.S. Securities Act of 1933, as amended from time to
time.


<P align="left" style="font-size: 10pt"><B>&#147;Stock Appreciation Right&#148; </B>has the meaning set forth in Section&nbsp;8.1.


<P align="left" style="font-size: 10pt"><B>&#147;Stock Unit&#148; </B>means an Award granted under Section&nbsp;9 denominated in units of
Common Stock.


<P align="left" style="font-size: 10pt"><B>&#147;Substitute Awards&#148; </B>means Awards granted or shares of Common Stock issued by
the Company in assumption of, or in substitution or exchange for, awards
previously granted by a company acquired by the Company or with which the
Company combines.


<P align="left" style="font-size: 10pt"><B>&#147;Successor Company&#148; </B>means the surviving company, the successor company or the
Parent Company, as applicable, in connection with a Company Transaction.


<P align="left" style="font-size: 10pt"><B>&#147;Termination of Service&#148; </B>means a termination of employment or service
relationship with the Company or a Related Company for any reason, whether
voluntary or involuntary, including by reason of death, Disability or
Retirement. Any question as to whether and when there has been a Termination
of Service for the purposes of an Award and the cause of such Termination of
Service shall be determined by the Company&#146;s chief human resources officer or
other person performing that function or by the Committee with respect to
directors and executive officers, whose determination shall be conclusive and



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<P align="left" style="font-size: 10pt">binding. Transfer of a Participant&#146;s employment or service relationship
between the Company and any Related Company shall not be considered a
Termination of Service for purposes of an Award. Unless the Committee
determines otherwise, a Termination of Service shall be deemed to occur if the
Participant&#146;s employment or service relationship is with an entity that has
ceased to be a Related Company.


<P align="left" style="font-size: 10pt"><B>&#147;Vesting Commencement Date&#148; </B>means the Grant Date or such other date selected by
the Committee as the date from which the Option begins to vest for purposes of
Section&nbsp;7.4.


<P align="left" style="font-size: 10pt"><B>SECTION 3. ADMINISTRATION</B>


<P align="left" style="font-size: 10pt"><B>3.1 Administration of the Plan</B>


<P align="left" style="font-size: 10pt">The Plan shall be administered by a committee or committees (which term
includes subcommittees) appointed by, and consisting of two or more members of,
the Board, or if no such committee has been appointed, by the Board. All
references in the Plan to the &#147;Committee&#148; shall be, as applicable, to the
Committee appointed by the Board pursuant to this Section&nbsp;3.1, to the Board, if
no committee has been appointed, or to any other committee or any officer to
whom the Board or the Committee has delegated authority to administer the Plan.
Members of the Committee shall serve for such term as the Board may determine,
subject to removal by the Board at any time. To the extent consistent with
applicable law, the Board or the Committee may authorize one or more officers
of the Company to grant Awards to designated classes of Eligible Persons,
within limits specifically prescribed by the Board or the Committee; provided,
however, that no such officer shall have or obtain authority to grant Awards to
himself or herself.


<P align="left" style="font-size: 10pt"><B>3.2 Administration and Interpretation by Committee</B>


<P align="left" style="font-size: 10pt">Except for the terms and conditions explicitly set forth in the Plan, the
Committee shall have full power and exclusive authority, subject to such orders
or resolutions not inconsistent with the provisions of the Plan as may from
time to time be adopted by the Board, to: (a)&nbsp;select the Eligible Persons to
whom Awards may from time to time be granted under the Plan; (b)&nbsp;determine the
type or types of Awards to be granted to each Participant under the Plan; (c)
determine the number of shares of Common Stock to be covered by each Award
granted under the Plan; (d)&nbsp;determine the terms and conditions of any Award
granted under the Plan; (e)&nbsp;approve the forms of agreements for use under the
Plan; (f)&nbsp;determine whether, to what extent and under what circumstances Awards
may be settled in cash, shares of Common Stock or other property, or canceled
or suspended; (g)&nbsp;determine whether, to what extent and under what
circumstances cash, shares of Common Stock, other property and other amounts
payable with respect to an Award shall be deferred either automatically or at
the election of the Participant; (h)&nbsp;interpret and administer the Plan and any
instrument evidencing an Award or agreement entered into under the Plan; (i)
establish such rules and regulations as it shall deem appropriate for the
proper administration of the Plan; (j)&nbsp;delegate ministerial duties to such of
the Company&#146;s officers as it so determines; and (k)&nbsp;make any other
determination and take any other action that the Committee deems necessary or
desirable for administration of the Plan.


<P align="left" style="font-size: 10pt">Decisions of the Committee shall be final, conclusive and binding on all
persons, including the Company, any Participant, any shareholder and any
Eligible Person. A majority of the members of the Committee may determine its
actions and fix the time and place of its meetings.



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<P align="left" style="font-size: 10pt"><B>SECTION 4. SHARES SUBJECT TO THE PLAN</B>


<P align="left" style="font-size: 10pt"><B>4.1 Authorized Number of Shares</B>


<P align="left" style="font-size: 10pt">Subject to adjustment from time to time as provided in Section&nbsp;13.1, the number
of shares of Common Stock available for issuance under the Plan shall be the
total number of authorized shares (i)&nbsp;reserved for issuance under the Company&#146;s
1995 Stock Option Plan (the &#147;Prior Plan&#148;), but not issued or subject to
outstanding awards on the Effective Date, and (ii)&nbsp;any shares subject to
outstanding awards under the Prior Plan on such date that cease to be subject
to such awards (other than by reason of exercise or settlement of the awards to
the extent they are exercised for or settled in shares), up to an aggregate
maximum of 10,684,138 shares, which shares shall cease, as of such date, to be
available for grant and issuance under the Prior Plan, but shall be available
for issuance under the Plan.


<P align="left" style="font-size: 10pt">Shares issued under the Plan shall be drawn from authorized and unissued shares
or shares now held or subsequently acquired by the Company.


<P align="left" style="font-size: 10pt"><B>4.2 Share Usage</B>


<P align="left" style="font-size: 10pt">(a)&nbsp;Shares of Common Stock covered by an Award shall not be counted as used
unless and until they are actually issued and delivered to a Participant. If
any Award lapses, expires, terminates or is canceled prior to the issuance of
shares thereunder or if shares of Common Stock are issued under the Plan to a
Participant and thereafter are forfeited to or otherwise reacquired by the
Company, the shares subject to such Awards and the forfeited or reacquired
shares shall again be available for issuance under the Plan. Any shares of
Common Stock (i)&nbsp;tendered by a Participant or retained by the Company as full
or partial payment to the Company for the purchase price of an Award or to
satisfy tax withholding obligations in connection with an Award or (ii)&nbsp;covered
by an Award that is settled in cash shall be available for Awards under the
Plan. The number of shares available for issuance under the Plan shall not be
reduced to reflect any dividends or dividend equivalents that are reinvested
into additional shares or credited as additional Restricted Stock, Stock Units,
Performance Stock or Performance Units.


<P align="left" style="font-size: 10pt">(b)&nbsp;The Committee shall have the authority to grant Awards as an alternative to
or as the form of payment for grants or rights earned or due under other
compensation plans or arrangements of the Company.


<P align="left" style="font-size: 10pt">(c)&nbsp;Substitute Awards shall not reduce the number of shares authorized for
issuance under the Plan. In the event that an Acquired Entity has shares
available for awards or grants under one or more preexisting plans not adopted
in contemplation of such acquisition or combination, then, to the extent
determined by the Board or the Committee, the shares available for grant
pursuant to the terms of such preexisting plans (as adjusted, to the extent
appropriate, using the exchange ratio or other adjustment or valuation ratio or
formula used in such acquisition or combination to determine the consideration
payable to holders of common stock of the entities who are parties to such
acquisition or combination) may be used for Awards under the Plan and shall not
reduce the number of shares of Common Stock authorized for issuance under the
Plan; provided, however, that Awards using such available shares shall not be
made after the date awards or grants could have been made under the terms of
such preexisting plans, absent the acquisition or combination, and shall only
be made to individuals who were not employees or nonemployee directors of the
Company or a Related Company prior to such acquisition or combination.
Notwithstanding anything in the Plan to the contrary, the Committee may grant
Substitute Awards under the Plan. In the event that a written agreement
between the Company and an Acquired Entity pursuant to which a merger or
consolidation is completed is approved by the Board and said agreement sets
forth the terms and conditions of the substitution for or assumption of
outstanding awards of the Acquired Entity,



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<P align="left" style="font-size: 10pt">said terms and conditions shall be
deemed to be the action of the Committee without any further action by the
Committee and the persons holding such awards shall be deemed to be
Participants.


<P align="left" style="font-size: 10pt"><B>SECTION 5. ELIGIBILITY</B>


<P align="left" style="font-size: 10pt">An Award may be granted to any employee, officer or director of the Company or
a Related Company whom the Committee from time to time selects. An Award may
also be granted to any consultant, agent, advisor or independent contractor for
bona fide services rendered to the Company or any Related Company that (a)&nbsp;are
not in connection with the offer and sale of the Company&#146;s securities in a
capital-raising transaction and (b)&nbsp;do not directly or indirectly promote or
maintain a market for the Company&#146;s securities.


<P align="left" style="font-size: 10pt"><B>SECTION 6. AWARDS</B>


<P align="left" style="font-size: 10pt"><B>6.1 Form, Grant and Settlement of Awards</B>


<P align="left" style="font-size: 10pt">The Committee shall have the authority, in its sole discretion, to determine
the type or types of Awards to be granted under the Plan. Such Awards may be
granted either alone, in addition to, or in tandem with, any other type of
Award. Any Award settlement may be subject to such conditions, restrictions
and contingencies as the Committee shall determine.


<P align="left" style="font-size: 10pt"><B>6.2 Evidence of Awards</B>


<P align="left" style="font-size: 10pt">Awards granted under the Plan shall be evidenced by a written (including
electronic) instrument that shall contain such terms, conditions, limitations
and restrictions as the Committee shall deem advisable and that are not
inconsistent with the Plan.


<P align="left" style="font-size: 10pt"><B>6.3 Vesting of Awards</B>


<P align="left" style="font-size: 10pt">The effect on the vesting of an Award of a Company-approved leave of absence or
a Participant&#146;s working less than full-time shall be determined by the
Company&#146;s chief human resources officer or other person performing that
function or, with respect to directors or executive officers, by the Committee
or the Board, whose determination shall be final.


<P align="left" style="font-size: 10pt"><B>6.4 Deferrals</B>


<P align="left" style="font-size: 10pt">The Committee may permit or require a Participant to defer receipt of the
payment of any Award. If any such deferral election is permitted or required,
the Committee, in its sole discretion, shall establish rules and procedures for
such payment deferrals, which may include the grant of additional Awards or
provisions for the payment or crediting of interest or dividend equivalents,
including converting such credits to deferred share unit equivalents.


<P align="left" style="font-size: 10pt"><B>SECTION 7. OPTIONS</B>


<P align="left" style="font-size: 10pt"><B>7.1 Grant of Options</B>


<P align="left" style="font-size: 10pt">The Committee may grant Options.


<P align="left" style="font-size: 10pt"><B>7.2 Option Exercise Price</B>


<P align="left" style="font-size: 10pt">The exercise price for shares purchased under an Option shall be as determined by the Committee.



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<P align="left" style="font-size: 10pt"><B>7.3 Term of Options</B>


<P align="left" style="font-size: 10pt">Subject to earlier termination in accordance with the terms of the Plan and the
instrument evidencing the Option, the maximum term of an Option shall be as
established for that Option by the Committee or, if not so established, shall
be ten years from the Grant Date.


<P align="left" style="font-size: 10pt"><B>7.4 Exercise of Options</B>


<P align="left" style="font-size: 10pt">The Committee shall establish and set forth in each instrument that evidences
an Option the time at which, or the installments in which, the Option shall
vest and become exercisable, any of which provisions may be waived or modified
by the Committee at any time. If not so established in the
instrument evidencing the Option, the Option shall vest and become exercisable
according to the following schedule, which may be waived or modified by the
Committee at any time:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Period of Participant&#146;s Continuous</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Employment or Service With the Company</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>or Its Related Companies From the Vesting</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Portion of Total Option</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Commencement Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>That Is Vested and Exercisable</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">After 1&nbsp;year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1/3</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:10px; text-indent:-10px">After each additional year of continuous
service completed thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">An additional 1/3</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">After 3&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">100%</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">To the extent an Option has vested and become exercisable, the Option may be
exercised in whole or from time to time in part by delivery to the Company of a
properly executed option exercise agreement or notice, in a form and in
accordance with procedures established by the Committee, setting forth the
number of shares with respect to which the Option is being exercised, the
restrictions imposed on the shares purchased under such exercise agreement, if
any, and such representations and agreements as may be required by the
Committee, accompanied by payment in full as described in Section&nbsp;7.5. An
Option may be exercised only for whole shares and may not be exercised for less
than a reasonable number of shares at any one time, as determined by the
Committee.


<P align="left" style="font-size: 10pt"><B>7.5 Payment of Exercise Price</B>


<P align="left" style="font-size: 10pt">The exercise price for shares purchased under an Option shall be paid in full
to the Company by delivery of consideration equal to the product of the Option
exercise price and the number of shares purchased. Such consideration must be
paid before the Company will issue the shares being purchased and must be in a
form or a combination of forms acceptable to the Committee for that purchase,
which forms may include:


<P align="left" style="font-size: 10pt">(a)&nbsp;cash;


<P align="left" style="font-size: 10pt">(b)&nbsp;check or wire transfer;


<P align="left" style="font-size: 10pt">(c)&nbsp;tendering (either actually or, if the Common Stock is registered under
Section 12(b) or 12(g) of the Exchange Act, by attestation) shares of Common
Stock already owned by the Participant for at least six months (or any shorter
period necessary to avoid a charge to the Company&#146;s earnings for financial



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<P align="left" style="font-size: 10pt">reporting purposes) that on the day prior to the exercise date have a Fair
Market Value equal to the aggregate exercise price of the shares being
purchased under the Option;


<P align="left" style="font-size: 10pt">(d)&nbsp;if the Common Stock is registered under Section 12(b) or 12(g) of the
Exchange Act and to the extent permitted by law, delivery of a properly
executed exercise notice, together with irrevocable instructions to a brokerage
firm designated by the Company to deliver promptly to the Company the aggregate
amount of sale or loan proceeds to pay the Option exercise price and any
withholding tax obligations that may arise in connection with the exercise, all
in accordance with the regulations of the Federal Reserve Board; or


<P align="left" style="font-size: 10pt">(e)&nbsp;such other consideration as the Committee may permit.


<P align="left" style="font-size: 10pt"><B>7.6 Post-Termination Exercise</B>


<P align="left" style="font-size: 10pt">The Committee shall establish and set forth in each instrument that evidences
an Option whether the Option shall continue to be exercisable, and the terms
and conditions of such exercise, after a Termination of Service, any of which
provisions may be waived or modified by the Committee at any time. If not so
established in the instrument evidencing the Option, the Option shall be
exercisable according to the following terms and conditions, which may be
waived or modified by the Committee at any time:


<P align="left" style="font-size: 10pt">(a)&nbsp;Any portion of an Option that is not vested and exercisable on the date of
a Participant&#146;s Termination of Service shall expire on such date.


<P align="left" style="font-size: 10pt">(b)&nbsp;Any portion of an Option that is vested and exercisable on the date of a
Participant&#146;s Termination of Service shall expire on the earliest to occur of



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;if the Participant&#146;s Termination of Service occurs for reasons other
than Cause, Retirement, Disability or death, the date that is three months
after such Termination of Service;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;if the Participant&#146;s Termination of Service occurs by reason of
Retirement or Disability, the five-year anniversary of such Termination of
Service;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;if the Participant&#146;s Termination of Service occurs by reason of
death, the two-year anniversary of such Termination of Service; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;the last day of the maximum term of the Option (the &#147;Option
Expiration Date&#148;).

<P align="left" style="font-size: 10pt">Notwithstanding the foregoing, if a Participant dies after his or her
Termination of Service but while an Option is otherwise exercisable, the
portion of the Option that is vested and exercisable on the date of such
Termination of Service shall expire upon the earlier to occur of (y)&nbsp;the Option
Expiration Date and (z)&nbsp;the two-year anniversary of the date of death, unless
the Committee determines otherwise.


<P align="left" style="font-size: 10pt">Also notwithstanding the foregoing, in case a Participant&#146;s Termination of
Service occurs for Cause, all Options granted to the Participant shall
automatically expire upon first notification to the Participant of such
termination, unless the Committee determines otherwise. If a Participant&#146;s
employment or service relationship with the Company is suspended pending an
investigation of whether the Participant shall be terminated for Cause, all the
Participant&#146;s rights under any Option shall likewise be suspended during the
period of investigation. If any facts that would constitute termination for
Cause are discovered after a Participant&#146;s Termination of Service, any Option
then held by the Participant may be immediately terminated by the Committee, in
its sole discretion.



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<P align="left" style="font-size: 10pt">(c)&nbsp;A Participant&#146;s change in status from an employee to a consultant, advisor
or independent contractor or a change in status from a consultant, advisor or
independent contractor to an employee shall not be considered a Termination of
Service for purposes of this Section&nbsp;7.6.


<P align="left" style="font-size: 10pt"><B>SECTION 8. STOCK APPRECIATION RIGHTS</B>


<P align="left" style="font-size: 10pt"><B>8.1 Grant of Stock Appreciation Rights</B>


<P align="left" style="font-size: 10pt">The Committee may grant share appreciation rights (&#147;Stock Appreciation Rights&#148;
or &#147;SARs&#148;) to Participants at any time. An SAR may be granted in tandem with
an Option or alone (&#147;freestanding&#148;). The grant price of a tandem SAR shall be
equal to the exercise price of the related Option, and the grant price of a
freestanding SAR shall be equal to the Fair Market Value of the Common Stock on
the Grant
Date. An SAR may be exercised upon such terms and conditions and for such term
as the Committee determines in its sole discretion; provided, however, that,
subject to earlier termination in accordance with the terms of the Plan and the
instrument evidencing the SAR, the term of a freestanding SAR shall be as
established for that SAR by the Committee or, if not so established, shall be
ten years, and in the case of a tandem SAR, (a)&nbsp;the term shall not exceed the
term of the related Option and (b)&nbsp;the tandem SAR may be exercised for all or
part of the shares subject to the related Option upon the surrender of the
right to exercise the equivalent portion of the related Option, except that the
tandem SAR may be exercised only with respect to the shares for which its
related Option is then exercisable.


<P align="left" style="font-size: 10pt"><B>8.2 Payment of SAR Amount</B>


<P align="left" style="font-size: 10pt">Upon the exercise of an SAR, a Participant shall be entitled to receive payment
from the Company in an amount determined by multiplying (a)&nbsp;the difference
between the Fair Market Value of the Common Stock on the date of exercise over
the grant price by (b)&nbsp;the number of shares with respect to which the SAR is
exercised. At the discretion of the Committee as set forth in the instrument
evidencing the Award, the payment upon exercise of an SAR may be in cash, in
shares of equivalent value, in some combination thereof or in any other manner
approved by the Committee in its sole discretion.


<P align="left" style="font-size: 10pt"><B>SECTION 9. RESTRICTED STOCK AND STOCK UNITS</B>


<P align="left" style="font-size: 10pt"><B>9.1 Grant of Restricted Stock and Stock Units</B>


<P align="left" style="font-size: 10pt">The Committee may grant Restricted Stock and Stock Units on such terms and
conditions and subject to such repurchase or forfeiture restrictions, if any
(which may be based on continuous service with the Company or a Related Company
or the achievement of any performance criteria, as the Committee shall
determine in its sole discretion), which terms, conditions and restrictions
shall be set forth in the instrument evidencing the Award.


<P align="left" style="font-size: 10pt"><B>9.2 Issuance of Shares; Settlement of Awards</B>


<P align="left" style="font-size: 10pt">Upon the satisfaction of any terms, conditions and restrictions prescribed with
respect to Restricted Stock or Stock Units, or upon a Participant&#146;s release
from any terms, conditions and restrictions of Restricted Stock or Stock Units,
as determined by the Committee, and subject to the provisions of Section&nbsp;11,
(a)&nbsp;the shares of Restricted Stock covered by each Award of Restricted Stock
shall become freely transferable by the Participant and (b)&nbsp;Stock Units shall
be paid in shares of Common Stock or, if set forth in the instrument evidencing
the Awards, in a combination of cash and shares of Common Stock as the
Committee shall determine in its sole discretion. Any fractional shares
subject to such Awards shall be paid to the Participant in cash.



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<P align="left" style="font-size: 10pt"><B>9.3 Dividends and Distributions</B>


<P align="left" style="font-size: 10pt">Participants holding shares of Restricted Stock or Stock Units may, if the
Committee so determines, be credited with dividends paid with respect to the
underlying shares or dividend equivalents while they are so held in a manner
determined by the Committee in its sole discretion. The Committee may apply
any restrictions to the dividends or dividend equivalents that the Committee
deems appropriate. The Committee, in its sole discretion, may determine the
form of payment of dividends or dividend equivalents, including cash, shares of
Common Stock, Restricted Stock or Stock Units.


<P align="left" style="font-size: 10pt"><B>9.4 Waiver of Restrictions</B>


<P align="left" style="font-size: 10pt">Notwithstanding any other provisions of the Plan, the Committee, in its sole
discretion, may waive the repurchase or forfeiture period and any other terms,
conditions or restrictions on any Restricted Stock or Stock Unit under such
circumstances and subject to such terms and conditions as the Committee shall
deem appropriate.


<P align="left" style="font-size: 10pt"><B>SECTION 10. PERFORMANCE STOCK AND PERFORMANCE UNITS</B>


<P align="left" style="font-size: 10pt"><B>10.1 Grant of Performance Stock</B>


<P align="left" style="font-size: 10pt">The Committee may grant Awards of Performance Stock and designate the
Participants to whom Performance Stock is to be awarded and determine the
number of shares of Performance Stock, the length of the performance period and
the other terms and conditions of each such Award. Each Award of Performance
Stock shall entitle the Participant to a payment in the form of Common Stock,
cash or a combination, as the Committee may determine, upon the attainment of
performance goals and other terms and conditions specified by the Committee.
Notwithstanding the satisfaction of any performance goals, the number of shares
to be issued or the amount of cash to be paid under an Award of Performance
Stock may be adjusted on the basis of such further consideration as the
Committee shall determine in its sole discretion.


<P align="left" style="font-size: 10pt"><B>10.2 Grant of Performance Units</B>


<P align="left" style="font-size: 10pt">The Committee may grant Awards of Performance Units and designate the
Participants to whom Performance Units are to be awarded and determine the
number of Performance Units, the length of the performance period and the terms
and conditions of each such Award. Each Award of Performance Units shall
entitle the Participant to a payment in the form of Common Stock, cash or a
combination, as the Committee may determine, upon the attainment of performance
goals and other terms and conditions specified by the Committee.
Notwithstanding the satisfaction of any performance goals, the number of shares
to be issued or the amount of cash to be paid under an Award of Performance
Units may be adjusted on the basis of such further consideration as the
Committee shall determine in its sole discretion.


<P align="left" style="font-size: 10pt"><B>SECTION 11. WITHHOLDING</B>


<P align="left" style="font-size: 10pt">The Company may require a Participant to pay to the Company the amount of (a)
any taxes that the Company is required by applicable law to withhold with
respect to the grant, vesting or exercise of an Award (&#147;tax withholding
obligations&#148;) and (b)&nbsp;any amounts due from the Participant to the Company or to
any Related Company (&#147;other obligations&#148;). The Company shall not be required
to issue any shares of Common Stock or otherwise settle an Award under the Plan
until such tax withholding obligations and other obligations are satisfied.



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<P align="left" style="font-size: 10pt">The Committee may permit or require a Participant to satisfy all or part of the
Participant&#146;s tax withholding obligations and other obligations by (a)&nbsp;paying
cash to the Company, (b)&nbsp;having the Company withhold an amount from any cash
amounts otherwise due or to become due from the Company to the Participant, (c)
having the Company withhold a number of shares of Common Stock that would
otherwise be issued to the Participant (or become vested in the case of
Restricted Stock) having a Fair Market Value equal to the tax withholding
obligations and other obligations, or (d)&nbsp;surrendering a number of shares of
Common Stock the Participant already owns having a value equal to the tax
withholding obligations and other obligations. The value of the shares so
withheld may not exceed the employer&#146;s minimum required tax withholding rate,
and the value of the shares so tendered may not exceed such rate
to the extent the Participant has owned the tendered shares for less than six
months, if such limitation is necessary to avoid a charge to the Company for
financial reporting purposes.


<P align="left" style="font-size: 10pt"><B>SECTION 12. ASSIGNABILITY</B>


<P align="left" style="font-size: 10pt">No Award or interest in an Award may be sold, assigned, pledged (as collateral
for a loan or as security for the performance of an obligation or for any other
purpose) or transferred by a Participant or made subject to attachment or
similar proceedings otherwise than by will or by the applicable laws of descent
and distribution, except to the extent the Participant designates one or more
beneficiaries on a Company-approved form who may exercise the Award or receive
payment under the Award after the Participant&#146;s death. During a Participant&#146;s
lifetime, an Award may be exercised only by the Participant. Notwithstanding
the foregoing, the Committee, in its sole discretion, may permit a Participant
to assign or transfer an Award; provided, however, that any Award so assigned
or transferred shall be subject to all the terms and conditions of the Plan and
the instrument evidencing the Award.


<P align="left" style="font-size: 10pt"><B>SECTION 13. ADJUSTMENTS</B>


<P align="left" style="font-size: 10pt"><B>13.1 Adjustment of Shares</B>


<P align="left" style="font-size: 10pt">In the event, at any time or from time to time, a stock dividend, stock split,
spin-off, combination or exchange of shares, recapitalization, merger,
consolidation, distribution to shareholders other than a normal cash dividend,
or other change in the Company&#146;s corporate or capital structure results in (a)
the outstanding shares of Common Stock, or any securities exchanged therefor or
received in their place, being exchanged for a different number or kind of
securities of the Company or any other company or (b)&nbsp;new, different or
additional securities of the Company or any other company being received by the
holders of shares of Common Stock, then the Committee shall make proportional
adjustments in (i)&nbsp;the maximum number and kind of securities available for
issuance under the Plan; and (ii)&nbsp;the number and kind of securities that are
subject to any outstanding Award and the per share price of such securities,
without any change in the aggregate price to be paid therefor.


<P align="left" style="font-size: 10pt">The determination by the Committee as to the terms of any of the foregoing
adjustments shall be conclusive and binding.


<P align="left" style="font-size: 10pt">Notwithstanding the foregoing, the issuance by the Company of shares of any
class, or securities convertible into shares of any class, for cash or
property, or for labor or services rendered, either upon direct sale or upon
the exercise of rights or warrants to subscribe therefor, or upon conversion of
shares or obligations of the Company convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof shall be made
with respect to, outstanding Awards. Also notwithstanding the foregoing, a
dissolution or liquidation of the Company or a Company Transaction or Change in
Control shall not be governed by this Section&nbsp;13.1 but shall be governed by
Sections&nbsp;13.2 and 13.3, respectively.



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<P align="left" style="font-size: 10pt"><B>13.2 Dissolution or Liquidation</B>


<P align="left" style="font-size: 10pt">To the extent not previously exercised or settled, and unless otherwise
determined by the Committee in its sole discretion, Options, Stock Appreciation
Rights and Stock Units shall terminate immediately prior to the dissolution or
liquidation of the Company. To the extent a forfeiture provision or repurchase
right applicable to an Award has not been waived by the Committee, the Award
shall be forfeited immediately prior to the consummation of the dissolution or
liquidation.


<P align="left" style="font-size: 10pt"><B>13.3 Company Transaction; Change in Control</B>


<P align="left" style="font-size: 10pt"><B>13.3.1 Effect of a Company Transaction That Is Not a Change in Control or a
Related Party Transaction. </B>Notwithstanding any other provision of the Plan to
the contrary, unless the Committee shall determine otherwise at the time of
grant with respect to a particular Award, in the event of a Company Transaction
that is not a Change in Control or a Related Party Transaction:


<P align="left" style="font-size: 10pt">(a)&nbsp;All outstanding Awards, other than Performance Stock and Performance Units,
shall become fully and immediately exercisable, and all applicable deferral and
restriction limitations shall lapse immediately prior to the Company
Transaction, unless such Awards are converted, assumed, or replaced by the
Successor Company. Notwithstanding the foregoing, with respect to Options or
Stock Appreciation Rights, the Committee, in its sole discretion, may instead
provide that a Participant&#146;s outstanding Options shall terminate upon
consummation of such Company Transaction and that each such Participant shall
receive, in exchange therefor, a cash payment equal to the amount (if any) by
which (a)&nbsp;the Acquisition Price multiplied by the number of shares of Common
Stock subject to such outstanding Options or SARs (whether or not then
exercisable) exceeds (b)&nbsp;the aggregate exercise price for such Options or SARs.


<P align="left" style="font-size: 10pt">For the purposes of this Section&nbsp;13.3.1, an Award shall be considered assumed
or substituted for if following the Company Transaction the option or right
confers the right to purchase or receive, for each Common Share subject to the
Award immediately prior to the Company Transaction, the consideration (whether
stock, cash, or other securities or property) received in the Company
Transaction by holders of Common Stock for each share held on the effective
date of the transaction (and if holders were offered a choice of consideration,
the type of consideration chosen by the holders of a majority of the
outstanding shares); provided, however, that if such consideration received in
the Company Transaction is not solely common stock of the Successor Company,
the Committee may, with the consent of the Successor Company, provide for the
consideration to be received upon the exercise of the Option, for each share of
Common Stock subject thereto, to be solely common stock of the Successor
Company substantially equal in fair market value to the per share consideration
received by holders of Common Stock in the Company Transaction. The
determination of such substantial equality of value of consideration shall be
made by the Committee and its determination shall be conclusive and binding.


<P align="left" style="font-size: 10pt">(b)&nbsp;All Performance Stock or Performance Units earned and outstanding as of the
date the Company Transaction is determined to have occurred shall be payable in
full in accordance with the payout schedule pursuant to the Award agreement.
Any remaining Performance Stock or Performance Units (including any applicable
performance period) for which the payout level has not been determined shall be
prorated at the target payout level up to and including the date of such
Company Transaction and shall be payable in full in accordance with the payout
schedule pursuant to the Award agreement.


<P align="left" style="font-size: 10pt">Any existing deferrals or other restrictions shall remain in effect. If the
Participant&#146;s employment is terminated without Cause following the Company
Transaction, any Awards remaining to be paid will be paid in accordance with
the employment termination provision of the Award agreement. If the



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<P align="left" style="font-size: 10pt">Participant&#146;s employment is terminated for Good Reason following the Company
Transaction, any Awards remaining to be paid will be paid in accordance with
the payout schedule pursuant to the Award agreement.


<P align="left" style="font-size: 10pt"><B>13.3.2 Effect of a Change in Control. </B>Notwithstanding any other provision of
the Plan to the contrary, unless the Committee shall determine otherwise at the
time of grant with respect to a particular Award, in the event of a Change in
Control:


<P align="left" style="font-size: 10pt">(a)&nbsp;any Options and Stock Appreciation Rights outstanding as of the date such
Change in Control is determined to have occurred, and which are not then
exercisable and vested, shall become fully exercisable and vested to the full
extent of the original grant;


<P align="left" style="font-size: 10pt">(b)&nbsp;any restrictions and deferral limitations applicable to any Restricted
Stock or Stock Units shall lapse, and such Restricted Stock or Stock Units
shall become free of all restrictions and limitations and become fully vested
and transferable to the full extent of the original grant;


<P align="left" style="font-size: 10pt">(c)&nbsp;all Performance Stock and Performance Units shall be considered to be
earned and payable in full, and any deferral or other restriction shall lapse
and such Performance Stock and Performance Units shall be immediately settled
or distributed; and


<P align="left" style="font-size: 10pt">(d)&nbsp;any restrictions and deferral limitations and other conditions applicable
to any other Awards shall lapse, and such other Awards shall become free of all
restrictions, limitations or conditions and become fully vested and
transferable to the full extent of the original grant.


<P align="left" style="font-size: 10pt"><B>13.3.3 Change in Control Cash-Out. </B>Notwithstanding any other provision of the
Plan, during the 60-day period from and after a Change in Control (the
&#147;Exercise Period&#148;), if the Committee shall so determine at, or at any time
after, the time of grant, a Participant holding an Option or SAR shall have the
right, whether or not the Option or SAR is fully exercisable and in lieu of the
payment of the purchase price for the shares of Common Stock being purchased
under the Option, and by giving notice to the Company, to elect (within the
Exercise Period) to surrender all or part of the Option or SAR to the Company
and to receive cash, within 30&nbsp;days of such notice, in an amount equal to the
amount by which the Acquisition Price per share of Common Stock on the date of
such election shall exceed the exercise price per share of Common Stock under
the Option or SAR multiplied by the number of shares of Common Stock granted
under the Option or SAR as to which the right granted under this Section&nbsp;13.3.3
shall have been exercised.


<P align="left" style="font-size: 10pt"><B>13.3.4 Acceleration and Exercise Following a Company Transaction. </B>If following
a Change in Control or a Company Transaction that is not a Related Party
Transaction, a Participant&#146;s employment is subsequently terminated without
Cause or for Good Reason within 24&nbsp;months of the Change in Control or Company
Transaction, any such Awards (other than Performance Awards) that remain
unvested shall become fully and immediately exercisable upon the date of the
Participant&#146;s termination, all applicable deferral and restriction limitations
shall lapse, and an Award that is an Option or a Stock Appreciation Right shall
remain exercisable until the later of the date five years after the date of
such termination and the date the Award would have expired by its terms if the
Participant&#146;s employment had not been terminated.


<P align="left" style="font-size: 10pt"><B>13.4 Further Adjustment of Awards</B>


<P align="left" style="font-size: 10pt">Subject to Sections&nbsp;13.2 and 13.3, the Committee shall have the discretion,
exercisable at any time before a sale, merger, consolidation, reorganization,
liquidation, dissolution or change of control of the



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<P align="left" style="font-size: 10pt">Company, as defined by the
Committee, to take such further action as it determines to be necessary or
advisable with respect to Awards. Such authorized action may include (but
shall not be limited to) establishing, amending or waiving the type, terms,
conditions or duration of, or restrictions on, Awards so as to provide for
earlier, later, extended or additional time for exercise, lifting restrictions
and other modifications, and the Committee may take such actions with respect
to all Participants, to certain categories of Participants or only to
individual Participants. The Committee may take such action before or after
granting Awards to which the action relates and before or after any public
announcement with respect to such sale, merger, consolidation, reorganization,
liquidation, dissolution or change of control that is the reason for such
action.


<P align="left" style="font-size: 10pt"><B>13.5 No Limitations</B>


<P align="left" style="font-size: 10pt">The grant of Awards shall in no way affect the Company&#146;s right to adjust,
reclassify, reorganize or otherwise change its capital or business structure or
to merge, consolidate, dissolve, liquidate or sell or transfer all or any part
of its business or assets.


<P align="left" style="font-size: 10pt"><B>13.6 Fractional Shares</B>


<P align="left" style="font-size: 10pt">In the event of any adjustment in the number of shares covered by any Award,
each such Award shall cover only the number of full shares resulting from such
adjustment.


<P align="left" style="font-size: 10pt"><B>SECTION 14. AMENDMENT AND TERMINATION</B>


<P align="left" style="font-size: 10pt"><B>14.1 Amendment, Suspension or Termination</B>


<P align="left" style="font-size: 10pt">The Board may amend, suspend or terminate the Plan or any portion of the Plan
at any time and in such respects as it shall deem advisable; provided, however,
that, to the extent required by applicable law, regulation or stock exchange
rule, shareholder approval shall be required for any amendment to the Plan.
Subject to Section&nbsp;14.3, the Board may amend the terms of any outstanding
Award, prospectively or retroactively.


<P align="left" style="font-size: 10pt"><B>14.2 Term of the Plan</B>


<P align="left" style="font-size: 10pt">Unless sooner terminated as provided herein, the Plan shall terminate ten years
from the Effective Date. After the Plan is terminated, no future Awards may be
granted, but Awards previously granted shall remain outstanding in accordance
with their applicable terms and conditions and the Plan&#146;s terms and conditions.


<P align="left" style="font-size: 10pt"><B>14.3 Consent of Participant</B>


<P align="left" style="font-size: 10pt">The amendment, suspension or termination of the Plan or a portion thereof or
the amendment of an outstanding Award shall not, without the Participant&#146;s
consent, materially adversely affect any rights under any Award theretofore
granted to the Participant under the Plan. Notwithstanding the foregoing, any
adjustments made pursuant to Section&nbsp;13 shall not be subject to these
restrictions.


<P align="left" style="font-size: 10pt"><B>SECTION 15. GENERAL</B>


<P align="left" style="font-size: 10pt"><B>15.1 No Individual Rights</B>


<P align="left" style="font-size: 10pt">No individual or Participant shall have any claim to be granted any Award under
the Plan, and the Company has no obligation for uniformity of treatment of
Participants under the Plan.



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<P align="left" style="font-size: 10pt">Furthermore, nothing in the Plan or any Award granted under the Plan shall be
deemed to constitute an employment contract or confer or be deemed to confer on
any Participant any right to continue in the employ of, or to continue any
other relationship with, the Company or any Related Company or limit in any way
the right of the Company or any Related Company to terminate a Participant&#146;s
employment or other relationship at any time, with or without cause.


<P align="left" style="font-size: 10pt"><B>15.2 Issuance of Shares</B>


<P align="left" style="font-size: 10pt">Notwithstanding any other provision of the Plan, the Company shall have no
obligation to issue or deliver any shares of Common Stock under the Plan or
make any other distribution of benefits under the Plan unless, in the opinion
of the Company&#146;s counsel, such issuance, delivery or distribution would comply
with all applicable laws (including, without limitation, the requirements of
the Securities Act or the laws of any state or foreign jurisdiction) and the
applicable requirements of any securities exchange or similar entity.


<P align="left" style="font-size: 10pt">The Company shall be under no obligation to any Participant to register for
offering or resale or to qualify for exemption under the Securities Act, or to
register or qualify under the laws of any state or foreign jurisdiction, any
shares of Common Stock, security or interest in a security paid or issued
under, or created by, the Plan, or to continue in effect any such registrations
or qualifications if made.


<P align="left" style="font-size: 10pt">As a condition to the exercise of an Option or any other receipt of Common
Stock pursuant to an Award under the Plan, the Company may require (a)&nbsp;the
Participant to represent and warrant at the time of any such exercise or
receipt that such shares are being purchased or received only for the
Participant&#146;s own account and without any present intention to sell or
distribute such shares and (b)&nbsp;such other action or agreement by the
Participant as may from time to time be necessary to comply with the federal,
state and foreign securities laws. At the option of the Company, a
stop-transfer order against any such shares may be placed on the official stock
books and records of the Company, and a legend indicating that such shares may
not be pledged, sold or otherwise transferred, unless an opinion of counsel is
provided (concurred in by counsel for the Company) stating that such transfer
is not in violation of any applicable law or regulation, may be stamped on
stock certificates to ensure exemption from registration. The Committee may
also require the Participant to execute and deliver to the Company a purchase
agreement or such other agreement as may be in use by the Company at such time
that describes certain terms and conditions applicable to the shares.


<P align="left" style="font-size: 10pt">To the extent the Plan or any instrument evidencing an Award provides for
issuance of stock certificates to reflect the issuance of shares of Common
Stock, the issuance may be effected on a noncertificated basis, to the extent
not prohibited by applicable law or the applicable rules of any stock exchange.


<P align="left" style="font-size: 10pt"><B>15.3 Indemnification</B>


<P align="left" style="font-size: 10pt">Each person who is or shall have been a member of the Board, or a committee
appointed by the Board, or an officer of the Company to whom authority was
delegated in accordance with Section&nbsp;3 shall be indemnified and held harmless
by the Company against and from any loss, cost, liability or expense that may
be imposed upon or reasonably incurred by such person in connection with or
resulting from any claim, action, suit or proceeding to which such person may
be a party or in which such person may be involved by reason of any action
taken or failure to act under the Plan and against and from any and all amounts
paid by such person in settlement thereof, with the Company&#146;s approval, or paid
by such person in satisfaction of any judgment in any such claim, action, suit
or proceeding against such person; provided, however, that such person shall
give the Company an opportunity, at its own expense, to handle and defend the
same before such person undertakes to handle and defend it on such person&#146;s own



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<P align="left" style="font-size: 10pt">behalf, unless such loss, cost, liability or expense is a result of such
person&#146;s own willful misconduct or except as expressly provided by statute.


<P align="left" style="font-size: 10pt">The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such person may be entitled under the
Company&#146;s certificate of incorporation or bylaws, as a matter of law, or
otherwise, or of any power that the Company may have to indemnify or hold
harmless.


<P align="left" style="font-size: 10pt"><B>15.4 No Rights as a Shareholder</B>


<P align="left" style="font-size: 10pt">Unless otherwise provided by the Committee or in the instrument evidencing the
Award or in a written employment, services or other agreement, no Option, Stock
Appreciation Right, or Award denominated in units shall entitle the Participant
to any cash dividend, voting or other right of a shareholder unless and until
the date of issuance under the Plan of the shares that are the subject of such
Award.


<P align="left" style="font-size: 10pt"><B>15.5 Global Participants</B>


<P align="left" style="font-size: 10pt">The Committee shall have the authority to adopt such modifications, procedures
and subplans as may be necessary or desirable to comply with provisions of the
laws of any countries in which the Company or any Related Company may operate,
to ensure the viability of the benefits from Awards granted to Participants
employed in such countries, to comply with applicable laws and to meet the
objectives of the Plan.


<P align="left" style="font-size: 10pt"><B>15.6 No Trust or Fund</B>


<P align="left" style="font-size: 10pt">The Plan is intended to constitute an &#147;unfunded&#148; plan. Nothing contained
herein shall require the Company to segregate any monies or other property, or
shares of Common Stock, or to create any trusts, or to make any special
deposits for any immediate or deferred amounts payable to any Participant, and
no Participant shall have any rights that are greater than those of a general
unsecured creditor of the Company.


<P align="left" style="font-size: 10pt"><B>15.7 Successors</B>


<P align="left" style="font-size: 10pt">All obligations of the Company under the Plan with respect to Awards shall be
binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger,
consolidation, or otherwise, of all or substantially all the business and/or
assets of the Company.


<P align="left" style="font-size: 10pt"><B>15.8 Severability</B>


<P align="left" style="font-size: 10pt">If any provision of the Plan or any Award is determined to be invalid, illegal
or unenforceable in any jurisdiction, or as to any person, or would disqualify
the Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to applicable laws,
or, if it cannot be so construed or deemed amended without, in the Committee&#146;s
determination, materially altering the intent of the Plan or the Award, such
provision shall be stricken as to such jurisdiction, person or Award, and the
remainder of the Plan and any such Award shall remain in full force and effect.


<P align="left" style="font-size: 10pt"><B>15.9 Choice of Law</B>


<P align="left" style="font-size: 10pt">The Plan, all Awards granted thereunder and all determinations made and actions
taken pursuant hereto shall be governed by the laws of the Commonwealth of the
Bahamas.



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<P align="left" style="font-size: 10pt"><B>SECTION 16. EFFECTIVE DATE</B>


<P align="left" style="font-size: 10pt">The effective date (the &#147;Effective Date&#148;) is the date on which the Plan is
adopted by the Board.




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