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<SEC-DOCUMENT>0000945234-05-000337.txt : 20050504
<SEC-HEADER>0000945234-05-000337.hdr.sgml : 20050504
<ACCEPTANCE-DATETIME>20050504095845
ACCESSION NUMBER:		0000945234-05-000337
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20050429
FILED AS OF DATE:		20050504
DATE AS OF CHANGE:		20050504

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:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12874
		FILM NUMBER:		05797162

	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>6-K
<SEQUENCE>1
<FILENAME>o15313e6vk.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 6-K</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">



<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

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

<P align="center" style="font-size: 18pt"><B>FORM 6-K</B>


<P align="center" style="font-size: 10pt">Report of Foreign Private Issuer



<P align="center" style="font-size: 10pt">Pursuant to Rule&nbsp;13a-16 or 15d-16 of<BR>
the Securities Exchange Act of 1934



<DIV align="center" style="font-size: 10pt"><HR size="1" noshade width="10%" align="center" color="#000000">
Date of report: May&nbsp;3, 2005
</DIV>


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


<DIV align="center" style="font-size: 10pt"><HR size="1" noshade width="80%" align="center" color="#000000">
(Exact name of Registrant as specified in its charter)</DIV>



<P align="center" style="font-size: 10pt">TK House<BR>
Bayside Executive Park<BR>
West Bay Street &#038; Blake Road<BR>
P.O. Box AP-59212, Nassau, The Bahamas


<DIV align="center" style="font-size: 10pt"><HR size="1" noshade width="50%" align="center" color="#000000">
(Address of principal executive office)</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or Form 40-F.&#093;

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="70%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Form&nbsp;20-F&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#254;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Form&nbsp;40- F&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation&nbsp;S-T Rule&nbsp;101(b)(1):<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="70%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">No&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#254;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation&nbsp;S-T Rule&nbsp;101(b)(7):<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="70%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">No&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#254;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Indicate by check mark whether the registrant by furnishing the information contained in this
Form is also thereby furnishing the information to the Commission pursuant to Rule&nbsp;12g3-2(b) under
the Securities Exchange Act of 1934.&#093;

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="70%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">No&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#254;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;If &#147;Yes&#148; is marked, indicate below the file number assigned to the registrant in connection
with Rule&nbsp;12g3-2(b):82-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</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">








<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 Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


<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" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">TEEKAY SHIPPING CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: May 3, 2005&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Peter Evensen
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Peter Evensen&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Executive Vice President<BR>and Chief Financial Officer<BR>
(Principal Financial and Accounting Officer)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</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>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <IMG src="o15313o1531302.gif" alt="(TEEKAY LOGO)"></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>TEEKAY SHIPPING CORPORATION<BR>
    TK House, Bayside Executive Park, West Bay Street &#38; Blake
    Road<BR>
    P.O. Box AP-59212, Nassau, The Bahamas</B></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="right" style="font-size: 9pt;">
<B>PHONE: (242)&nbsp;502-8820</B>
</DIV>

<DIV align="right" style="font-size: 9pt;">
<B>FAX: (242)&nbsp;502-8840</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
April&nbsp;29, 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Dear Shareholder:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On behalf of the Board of Directors, it is my pleasure to extend
to you an invitation to attend the 2005 Annual Meeting of
Shareholders of Teekay Shipping Corporation. The annual meeting
will be held at:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="5%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><B>Place:</B></TD>
    <TD align="left">
    The Park Suite <BR>
     The Dorchester Hotel <BR>
     Park Lane <BR>
     London, England</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Date:&nbsp;&nbsp;</B>Wednesday, June&nbsp;1, 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Time:&nbsp;&nbsp;</B>9:00&nbsp;a.m. (London time)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Notice of Annual Meeting and Proxy Statement is enclosed and
describes the business to be transacted at the annual meeting
and provides other information concerning Teekay. The principal
business to be transacted at the annual meeting will be
(1)&nbsp;the election of directors and (2)&nbsp;the ratification
of the selection of Ernst &#38; Young LLP, Chartered
Accountants, as Teekay&#146;s independent auditors for the
fiscal year ending December&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors unanimously recommends that shareholders
vote for the election of the nominated directors and for the
ratification of Ernst &#38; Young LLP, Chartered Accountants, as
Teekay&#146;s independent auditors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>We know that many of our shareholders will be unable to
attend the annual meeting. Proxies are solicited so that each
shareholder has an opportunity to vote on all matters that are
scheduled to come before the annual meeting. Whether or not you
plan to attend the annual meeting, we hope that you will have
your stock represented by completing, signing, dating and
returning your proxy card in the enclosed envelope as soon as
possible. You may, of course, attend the annual meeting and vote
in person even if you have previously returned your proxy
card.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Sincerely,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="o15313o1531303.gif" alt="-s- Bjorn Moller">
</DIV>

<DIV align="left" style="font-size: 10pt;">
BJORN MOLLER
</DIV>

<DIV align="left" style="font-size: 10pt;">
President and Chief Executive Officer
</DIV>

<P align="center" style="font-size: 10pt;">
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 10pt;">
<!-- TOC -->
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>2005 ANNUAL MEETING OF SHAREHOLDERS</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>NOTICE OF ANNUAL MEETING AND PROXY STATEMENT</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF CONTENTS</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Page</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#101'>NOTICE OF ANNUAL MEETING OF
    SHAREHOLDERS</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    1</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <B>&nbsp;<A HREF='#102'>QUESTIONS AND ANSWERS ABOUT THE PROXY
    MATERIALS AND THE ANNUAL&nbsp;MEETING</A></B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    2</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#103'>Why am I receiving these
    materials?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    2</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#104'>What information is contained in this
    proxy statement?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    2</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#105'>How may I obtain Teekay&#146;s annual
    report to shareholders?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    2</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#106'>How may I obtain Teekay&#146;s Annual
    Report on Form&nbsp;20-F filed with the SEC?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    2</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#107'>What items of business will be voted on
    at the annual meeting?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    2</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#108'>How does the Board recommend that I
    vote?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    2</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#109'>What shares can I vote?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    2</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#110'>What is the difference between holding
    shares as a shareholder of record and as a beneficial
    owner?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    3</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#111'>How can I attend the annual
    meeting?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    3</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#112'>How can I vote my shares in person at
    the annual meeting?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    3</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#113'>How can I vote my shares without
    attending the annual meeting?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    3</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#114'>Can I change my vote?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    4</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#115'>Is my vote confidential?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    4</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#116'>How many shares must be present or
    represented to conduct business at the annual meeting?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    4</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#117'>How are votes counted?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    4</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#118'>What is the voting requirement to
    approve each of the proposals?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    4</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#119'>Is cumulative voting permitted for the
    election of directors?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    5</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#120'>What happens if additional matters are
    presented at the annual meeting?.</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    5</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#121'>What should I do if I receive more than
    one set of voting materials?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    5</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#122'>How may I obtain a separate set of
    voting materials?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    5</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#123'>Who will bear the cost of soliciting
    votes for the annual meeting?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    5</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#124'>Where can I find the voting results of
    the annual meeting?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    5</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#125'>What is the deadline to propose actions
    for consideration at next year&#146;s annual meeting of
    shareholders or to nominate individuals to serve as
    directors?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    5</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>&nbsp;<A HREF='#126'>How may I communicate with Teekay&#146;s
    Board or the non-management directors on Teekay&#146;s
    Board?</A></I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    6</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#127'>CORPORATE GOVERNANCE PRINCIPLES AND
    BOARD MATTERS</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    7</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#128'>Board Independence</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    7</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#129'>Board Structure and Committee
    Composition</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    7</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#130'>Consideration of Director Nominees</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    9</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#131'>Executive Sessions</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    10</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#132'>Communications with the Board</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    10</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#133'>DIRECTOR COMPENSATION</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    11</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#134'>PROPOSALS TO BE VOTED ON</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    12</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#135'>PROPOSAL NO. 1: Election of Directors</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    12</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#136'>PROPOSAL NO. 2: Ratification of Independent
    Auditors</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    15</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#137'>COMMON STOCK OWNERSHIP OF CERTAIN
    BENEFICIAL OWNERS AND MANAGEMENT</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    16</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#138'>CERTAIN RELATIONSHIPS AND RELATED
    TRANSACTIONS</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    17</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#139'>EXECUTIVE OFFICERS</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    18</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#140'>EXECUTIVE COMPENSATION</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    20</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#141'>Summary Compensation Table</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    20</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#142'>Option/SAR Grants in Fiscal 2004</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    20</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#143'>Aggregated Fiscal 2004&nbsp;Year-End
    Options/SARs</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    20</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#144'>Report of the Compensation and Human
    Resources Committee of the Board of Directors on Executive
    Compensation</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    21</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#145'>STOCK PERFORMANCE GRAPH</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    23</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#146'>PRINCIPAL AUDITOR FEES AND
    SERVICES</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    24</TD>
</TR>

<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>&nbsp;<A HREF='#147'>REPORT OF THE AUDIT COMMITTEE OF THE
    BOARD OF DIRECTORS</A></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    25</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt;">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt;">i

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TEEKAY SHIPPING CORPORATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='101'></A>
</DIV>

<!-- link1 "NOTICE OF ANNUAL MEETING OF SHAREHOLDERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="16%"></TD>
    <TD width="1%"></TD>
    <TD width="83%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Time and Date</B></TD>
    <TD></TD>
    <TD valign="top">
    Wednesday, June&nbsp;1, 2005, 9:00&nbsp;a.m. (London time)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>Place</B></TD>
    <TD></TD>
    <TD valign="top">
    The Park Suite, The Dorchester Hotel, Park Lane, London, England</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>Items of Business</B></TD>
    <TD></TD>
    <TD valign="top">
    (1)&nbsp;To elect three directors to Teekay&#146;s Board of
    Directors for a term of three years</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    (2)&nbsp;To ratify the selection of Ernst &#38; Young LLP,
    Chartered Accountants, as Teekay&#146;s independent auditors for
    the fiscal year ending December&nbsp;31, 2005</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    (3)&nbsp;To transact such other business as may properly come
    before the annual meeting or any adjournment or postponement of
    the meeting</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>Adjournments and Postponements</B></TD>
    <TD></TD>
    <TD valign="top">
    Any action on the items of business described above may be
    considered at the annual meeting at the time and on the date
    specified above or at any time and date to which the annual
    meeting may be properly adjourned or postponed.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>Record Date</B></TD>
    <TD></TD>
    <TD valign="top">
    The record date for the annual meeting is April&nbsp;8, 2005.
    Only shareholders of record at the close of business on that
    date will be entitled to notice, and to vote at, the annual
    meeting or any adjournment or postponement of the meeting.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>Voting</B></TD>
    <TD></TD>
    <TD valign="top">
    <B>Your vote is very important. Whether or not you plan to
    attend the annual meeting, we encourage you to read this proxy
    statement and submit your proxy or voting instructions as soon
    as possible. You may submit your proxy for the annual meeting by
    completing, signing, dating and returning your proxy card in the
    enclosed envelope. For specific instructions on how to vote your
    shares, please refer to the section entitled Questions and
    Answers beginning on page&nbsp;2 of this proxy statement and the
    instructions on the proxy or voting instruction card.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
By Order of the Board of Directors
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="o15313o1531304.gif" alt="-s- Arthur J. Bensler">
</DIV>

<DIV align="left" style="font-size: 10pt;">
ARTHUR J. BENSLER
</DIV>

<DIV align="left" style="font-size: 10pt;">
Secretary
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
April&nbsp;29, 2005
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 21pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>This notice of annual meeting and proxy statement and form of
proxy are being distributed on or about</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>April&nbsp;29, 2005.</I>
</DIV>

<P align="center" style="font-size: 10pt;">1

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

<DIV align="left" style="font-size: 10pt;">
<A name='102'></A>
</DIV>

<!-- link1 "QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND THE ANNUAL MEETING" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND THE
ANNUAL MEETING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='103'></A>
</DIV>

<!-- link1 "Q:Why am I receiving these materials?" -->

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B> <I>Q:</I></B></TD>
    <TD>
    <B><I>Why am I receiving these materials?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    The Board of Directors (or <I>Board</I>) of Teekay Shipping
    Corporation, a corporation organized in the Republic of the
    Marshall Islands (or <I>Teekay</I>), is providing these proxy
    materials for you in connection with Teekay&#146;s Annual
    Meeting of Shareholders, which will take place on June&nbsp;1,
    2005. As a shareholder, you are invited to attend the annual
    meeting and are entitled and requested to vote on the items of
    business described in this proxy statement.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='104'></A>
</DIV>

<!-- link1 "Q:What information is contained in this proxy statement?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B> <I>Q:</I></B></TD>
    <TD>
    <B><I>What information is contained in this proxy
    statement?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    The information included in this proxy statement relates to the
    proposals to be voted on at the annual meeting, the voting
    process, the compensation of directors and our most highly-paid
    executive officers, and certain other information about Teekay.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='105'></A>
</DIV>

<!-- link1 "Q:How may I obtain Teekay&#146;s annual report to shareholders?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B> <I>Q:</I></B></TD>
    <TD>
    <B><I>How may I obtain Teekay&#146;s annual report to
    shareholders?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    A copy of our annual report to shareholders is enclosed.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='106'></A>
</DIV>

<!-- link1 "Q:How may I obtain Teekay&#146;s Annual Report on Form 20-F filed with the SEC?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B> <I>Q:</I></B></TD>
    <TD>
    <B><I>How may I obtain Teekay&#146;s Annual Report on
    Form&nbsp;20-F filed with the SEC?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    Shareholders may request a free copy of our 2004 Annual Report
    on Form&nbsp;20-F from:</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Teekay Shipping Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Suite&nbsp;2000, Bentall 5</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>550 Burrard Street</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Vancouver, BC V6C&nbsp;2K2</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Attention: Investor Relations</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Telephone: (604)&nbsp;844-6654</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Email: investor.relations@teekay.com</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Teekay will also furnish any exhibit to the Form&nbsp;20-F if
    specifically requested. Copies of the 2004 Annual Report on
    Form&nbsp;20-F are also available under &#147;SEC Filings&#148;
    in the Investor Centre section of our website at www.teekay.com
    and at the SEC&#146;s EDGAR database on the SEC&#146;s website
    at www.sec.gov.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='107'></A>
</DIV>

<!-- link1 "Q:What items of business will be voted on at the annual meeting?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B> <I>Q:</I></B></TD>
    <TD>
    <B><I>What items of business will be voted on at the annual
    meeting?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    The items of business scheduled to be voted on at the annual
    meeting are:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    The election of three directors to Teekay&#146;s Board for a
    term of three years, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    The ratification of our independent auditors for the 2005 fiscal
    year.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will also consider any other business that properly comes
before the annual meeting.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='108'></A>
</DIV>

<!-- link1 "Q:How does the Board recommend that I vote?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B> <I>Q:</I></B></TD>
    <TD>
    <B><I>How does the Board recommend that I vote?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    Our Board recommends that you vote your shares &#147;FOR&#148;
    each of the nominees to the Board and &#147;FOR&#148; the
    ratification of the independent auditors for the 2005 fiscal
    year.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='109'></A>
</DIV>

<!-- link1 "Q:What shares can I vote?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B> <I>Q:</I></B></TD>
    <TD>
    <B><I>What shares can I vote?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    Each share of Teekay common stock issued and outstanding as of
    the close of business on April&nbsp;8, 2005, the <I>record
    date</I> for the annual meeting, is entitled to be voted on all
    items being voted upon at the annual meeting. The <I>record
    date</I> for the annual meeting is the date used to determine
    both the number of shares of Teekay&#146;s common stock that are
    entitled to be voted at the annual meeting and the identity of
    the <I>shareholders of record</I> and <I>beneficial owners</I>
    of those shares of common stock who are entitled to vote those
    shares at the annual meeting. On the <I>record date</I> for the
    annual meeting we had approximately 81,763,448&nbsp;shares of
    common stock issued and outstanding.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    You may vote all shares owned by you as of the <I>record
    date</I> for the annual meeting, including (1)&nbsp;shares held
    directly in your name as the <I>shareholder of record</I>,
    including shares purchased through Teekay&#146;s Dividend
    Reinvestment Plan, and (2)&nbsp;shares held for you as the
    <I>beneficial owner</I> through a broker, trustee or other
    nominee such as a bank.</TD>
</TR>

</TABLE>

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

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

<DIV align="left" style="font-size: 10pt;">
<A name='110'></A>
</DIV>

<!-- link1 "Q:What is the difference between holding shares as a shareholder of record and as a beneficial owner?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>What is the difference between holding shares as a
    shareholder of record and as a beneficial owner?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    Most Teekay shareholders hold their shares through a broker or
    other nominee rather than directly in their own name. As
    summarized below, there are some distinctions between shares
    held of record and those owned beneficially.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholder
of Record</I></B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    If your shares are registered directly in your name with
    Teekay&#146;s transfer agent, The Bank of New York, you are
    considered, with respect to those shares, the <I>shareholder of
    record</I>, and these proxy materials are being sent directly to
    you by Teekay. As the <I>shareholder of record</I>, you have the
    right to grant your voting proxy directly to Teekay or to vote
    in person at the meeting. Teekay has enclosed or sent a proxy
    card for you to use.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Beneficial
Owner</I></B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    If your shares are held in a brokerage account or by another
    nominee, you are considered the <I>beneficial owner</I> of
    shares held <I>in street name</I>, and these proxy materials are
    being forwarded to you together with a voting instruction card.
    As the beneficial owner, you have the right to direct your
    broker, trustee or nominee how to vote and are also invited to
    attend the annual meeting.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Since a beneficial owner is not the <I>shareholder of
    record</I>, you may not vote these shares in person at the
    meeting unless you obtain a &#147;legal proxy&#148; from the
    broker, trustee or nominee that holds your shares, giving you
    the right to vote the shares at the meeting. Your broker,
    trustee or nominee has enclosed or provided voting instructions
    for you to use in directing the broker, trustee or nominee how
    to vote your shares.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='111'></A>
</DIV>

<!-- link1 "Q:How can I attend the annual meeting?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>How can I attend the annual meeting?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    You are entitled to attend the annual meeting only if you were a
    Teekay shareholder as of the close of business on April&nbsp;8,
    2005 or you hold a valid proxy for the annual meeting. You
    should be prepared to present photo identification for
    admittance. In addition, if you are a shareholder of record,
    your name will be verified against the list of shareholders of
    record on the record date prior to your being admitted to the
    annual meeting. If you are not a shareholder of record but hold
    shares through a broker or nominee (<I>i.e.</I>, in street
    name), you should provide proof of beneficial ownership on the
    record date, such as your most recent account statement prior to
    the record date, a copy of the voting instruction card provided
    by your broker, trustee or nominee, or other similar evidence of
    ownership. If you do not provide photo identification or comply
    with the procedures outlined above upon request, you will not be
    admitted to the annual meeting. The meeting is scheduled to
    begin promptly at 9:00&nbsp;a.m., London time.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='112'></A>
</DIV>

<!-- link1 "Q:How can I vote my shares in person at the annual meeting?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>How can I vote my shares in person at the annual
    meeting?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    Shares held in your name as the shareholder of record may be
    voted in person at the annual meeting. Shares held beneficially
    in street name may be voted in person only if you obtain a legal
    proxy from the broker, trustee or nominee that holds your shares
    giving you the right to vote the shares. <I>Even if you plan to
    attend the annual meeting, we recommend that you also submit
    your proxy or voting instructions as described below so that
    your vote will be counted if you later decide not to attend the
    meeting.</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='113'></A>
</DIV>

<!-- link1 "Q:How can I vote my shares without attending the annual meeting?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>How can I vote my shares without attending the annual
    meeting?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    Whether you hold shares directly as the shareholder of record or
    beneficially in street name, you may direct how your shares are
    voted without attending the meeting. If you are a shareholder of
    record, you may vote by submitting a proxy. If you hold shares
    beneficially in street name, you may vote by submitting voting
    instructions to your broker, trustee or nominee.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Shareholders of record of Teekay common stock may submit proxies
    by completing, signing and dating their proxy cards and mailing
    them in the enclosed envelopes. Teekay shareholders who hold
    shares beneficially in street name may vote by completing,
    signing and dating the voting instruction cards provided and
    mailing them in the enclosed envelopes, or otherwise as directed
    in the voting instruction card provided by your broker, trustee
    or nominee.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">3
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='114'></A>
</DIV>

<!-- link1 "Q:Can I change my vote?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>Can I change my vote?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    You may change your vote at any time prior to the vote at the
    annual meeting. If you are the shareholder of record, you may
    change your vote by granting a new proxy bearing a later date
    (which automatically revokes the earlier proxy), by providing a
    written notice of revocation to the Teekay Corporate Secretary
    by mail received prior to your shares being voted, or by
    attending the annual meeting and voting in person. Attendance at
    the meeting will not cause your previously granted proxy to be
    revoked unless you specifically so request. For shares you hold
    beneficially in street name, you may change your vote by
    submitting new voting instructions to your broker, trustee or
    nominee, or, if you have obtained a legal proxy from your broker
    or nominee giving you the right to vote your shares, by
    attending the meeting and voting in person.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='115'></A>
</DIV>

<!-- link1 "Q:Is my vote confidential?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>Is my vote confidential?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A.</TD>
    <TD align="left">
    Proxy instructions, ballots and voting tabulations that identify
    individual shareholders are handled in a manner that protects
    your voting privacy. Your vote will not be disclosed either
    within Teekay or to third parties, except (1)&nbsp;as necessary
    to meet applicable legal requirements, (2)&nbsp;to allow for the
    tabulation of votes and certification of the vote and
    (3)&nbsp;to facilitate a successful proxy solicitation.
    Occasionally shareholders provide written comments on their
    proxy card, which are then forwarded to Teekay&#146;s management.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='116'></A>
</DIV>

<!-- link1 "Q:How many shares must be present or represented to conduct business at the annual meeting?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>How many shares must be present or represented to conduct
    business at the annual meeting?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    The general quorum requirement for holding the annual meeting
    and transacting business is that holders of a majority of shares
    of Teekay common stock entitled to vote must be present in
    person or represented by proxy. However, the number of shares
    required to be represented at the annual meeting to constitute a
    quorum is reduced from a majority to one-third of the shares
    entitled to vote on a specific matter if that matter is
    recommended by the <I>Continuing Directors</I> or, for purposes
    of voting on the election of directors, if all nominees are
    recommended by the <I>Continuing Directors</I>. <I>Continuing
    Directors</I> means the incumbent members of the Board of
    Directors that were members of the Board on June&nbsp;15, 1999
    and any persons who have been or are subsequently elected or
    appointed to the Board if such persons are recommended by a
    majority of the <I>Continuing Directors</I>. The <I>Continuing
    Directors</I> have recommended for election all the nominees for
    director set out in this proxy statement and have recommended
    ratification of the selection of Ernst&nbsp;&#38; Young LLP,
    Chartered Accountants, as Teekay&#146;s independent auditors for
    the 2005 fiscal year. Accordingly, the quorum for each of these
    matters will be one-third of the shares entitled to vote,
    present in person or represented by proxy. Both abstentions and
    broker non-votes are counted for the purpose of determining the
    presence of a quorum.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='117'></A>
</DIV>

<!-- link1 "Q:How are votes counted?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>How are votes counted?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A.</TD>
    <TD align="left">
    In the election of directors, you may vote &#147;FOR&#148; all
    of the nominees or your vote may be &#147;WITHHELD&#148; with
    respect to one or more of the nominees. For the other item of
    business, you may vote &#147;FOR,&#148; &#147;AGAINST&#148; or
    &#147;ABSTAIN.&#148; If you &#147;ABSTAIN,&#148; the abstention
    has the same effect as a vote &#147;AGAINST.&#148;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    If you provide specific instructions for a given item, your
    shares will be voted as you instruct on such item. If you sign
    your proxy card or voting instruction card without giving
    specific instructions, your shares will be voted in accordance
    with the recommendations of the Board (<I>i.e.</I>,
    &#147;FOR&#148; all of Teekay&#146;s nominees to the Board,
    &#147;FOR&#148; ratification of the independent auditors and in
    the discretion of the proxy holders on any other matters that
    properly come before the meeting).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    If you hold shares beneficially in street name and do not
    provide your broker with voting instructions, your shares may
    constitute &#147;broker non-votes.&#148; Generally, broker
    non-votes occur on a matter when a broker is not permitted to
    vote on that matter without instructions from the beneficial
    owner and instructions are not given. In tabulating the voting
    result for any particular proposal, shares that constitute
    broker non-votes are not considered entitled to vote on that
    proposal. Thus, broker non-votes will not affect the outcome of
    any matter being voted on at the meeting, assuming that a quorum
    is obtained.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='118'></A>
</DIV>

<!-- link1 "Q:What is the voting requirement to approve each of the proposals?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>What is the voting requirement to approve each of the
    proposals?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    In the election of directors, the three persons receiving the
    highest number of &#147;FOR&#148; votes at the annual meeting
    will be elected. The other proposal requires the affirmative
    &#147;FOR&#148; vote of a majority of those shares present in
    person or represented by proxy and entitled to vote on that
    proposal at the annual meeting.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">4

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

<DIV align="left" style="font-size: 10pt;">
<A name='119'></A>
</DIV>

<!-- link1 "Q:Is cumulative voting permitted for the election of directors?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>Is cumulative voting permitted for the election of
    directors?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    No.&nbsp;Teekay does not allow you to cumulate your vote in the
    election of directors. For all matters proposed for shareholder
    action at the annual meeting, each share of common stock
    outstanding as of the close of business on the record date is
    entitled to one vote.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='120'></A>
</DIV>

<!-- link1 "Q:What happens if additional matters are presented at the annual meeting?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>What happens if additional matters are presented at the
    annual meeting?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A.</TD>
    <TD align="left">
    Other than the two items of business described in this proxy
    statement, we are not aware of any business to be acted upon at
    the annual meeting. If you grant a proxy, the persons named as
    proxyholders, Bjorn Moller, Peter Evensen and Arthur
    J.&nbsp;Bensler, will have the discretion to vote your shares on
    any additional matters properly presented for a vote at the
    meeting. If for any unforeseen reason any of our nominees is not
    available as a candidate for director, the persons named as
    proxyholders will vote your proxy for such candidate or
    candidates as may be nominated by the Board, unless the Board
    chooses to reduce the number of directors serving on
    the&nbsp;Board.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='121'></A>
</DIV>

<!-- link1 "Q:What should I do if I receive more than one set of voting materials?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>What should I do if I receive more than one set of voting
    materials?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    You may receive more than one set of voting materials, including
    multiple copies of this proxy statement and multiple proxy or
    voting instruction cards. For example, if you hold your shares
    in more than one brokerage account, you may receive a separate
    voting instruction card for each brokerage account in which you
    hold shares. If you are a shareholder of record and your shares
    are registered in more than one name, you will receive more than
    one proxy card. Please complete, sign, date and return each
    proxy card and voting instruction card that you receive.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='122'></A>
</DIV>

<!-- link1 "Q:How may I obtain a separate set of voting materials?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>How may I obtain a separate set of voting
    materials?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    If you share an address with another shareholder, you may
    receive only one set of proxy materials (including our annual
    report to shareholders, our 2004 Annual Report on Form&nbsp;20-F
    and this proxy statement) unless you have provided contrary
    instructions. If you wish to receive a separate set of proxy
    materials now or in the future, you may contact us to request a
    separate copy of these materials at:</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Teekay Shipping Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Suite&nbsp;2000, Bentall 5</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>550 Burrard Street</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Vancouver, BC V6C&nbsp;2K2</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Attention: Investor Relations</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Telephone: (604)&nbsp;844-6654</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Email: investor.relations@teekay.com</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Similarly, if you share an address with another shareholder and
    have received multiple copies of our proxy materials, you may
    contact us as indicated above to request delivery of a single
    copy of these materials.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='123'></A>
</DIV>

<!-- link1 "Q:Who will bear the cost of soliciting votes for the annual meeting?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>Who will bear the cost of soliciting votes for the annual
    meeting?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    Teekay is making this solicitation and will pay the entire cost
    of preparing, assembling, printing, mailing and distributing
    these proxy materials and soliciting votes. In addition to the
    mailing of these proxy materials, the solicitation of proxies or
    votes may be made in person, by telephone or by electronic
    communication by our directors, officers and employees, who will
    not receive any additional compensation for such solicitation
    activities. Upon request, we will reimburse brokerage houses and
    other custodians, nominees and fiduciaries for forwarding proxy
    and solicitation materials to shareholders.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='124'></A>
</DIV>

<!-- link1 "Q:Where can I find the voting results of the annual meeting?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>Where can I find the voting results of the annual
    meeting?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    We intend to announce preliminary voting results at the annual
    meeting and publish final results in our report on Form&nbsp;6-K
    for the second quarter of fiscal 2005.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='125'></A>
</DIV>

<!-- link1 "Q:What is the deadline to propose actions for consideration at next year&#146;s annual meeting of shareholders or to nominate individuals to serve as directors?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>What is the deadline to propose actions for consideration
    at next year&#146;s annual meeting of shareholders or to
    nominate individuals to serve as&nbsp;directors?</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    You may submit proposals, including director nominations, for
    consideration at future shareholder meetings as indicated below.</TD>
</TR>

</TABLE>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholder
Proposals</I></B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    For a shareholder proposal to be considered for inclusion in
    Teekay&#146;s proxy statement for the annual meeting next year,
    the written proposal must be received by Teekay&#146;s Corporate
    Secretary at the address set forth below no later than
    December&nbsp;30, 2005. If the date of next year&#146;s annual
    meeting is moved more than 30&nbsp;days before or after the
    anniversary date of this year&#146;s annual meeting, the
    deadline for inclusion of proposals in Teekay&#146;s proxy
    statement will be instead a reasonable time before Teekay begins
    to print and mail its proxy materials. Such proposals also will
    need to comply with Teekay&#146;s bylaw provisions regarding
    business to be brought before a shareholder meeting. Proposals
    should be sent by mail or facsimile addressed to:</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Corporate Secretary</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Teekay Shipping Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Suite&nbsp;2000, Bentall 5</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>550 Burrard Street</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Vancouver, BC V6C&nbsp;2K2</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Facsimile: (604)&nbsp;609-6447</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    For a shareholder proposal that is not intended to be included
    in Teekay&#146;s proxy statement as described above, the
    shareholder must deliver a proxy statement and form of proxy to
    holders of a sufficient number of shares of Teekay common stock
    to approve that proposal, provide the information required by
    Teekay&#146;s bylaws and give timely notice to Teekay&#146;s
    Corporate Secretary in accordance with the bylaws, which, in
    general, require that the notice be received by the Corporate
    Secretary not less than 60&nbsp;days or more than 90&nbsp;days
    prior to the meeting date.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nomination
of Director Candidates</I></B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    You may propose director candidates for consideration by the
    Board&#146;s Nominating and Governance Committee. Any such
    recommendation should include the nominee&#146;s name and
    qualifications for Board membership and should be directed to
    Teekay&#146;s Corporate Secretary at the address set forth
    above. In addition, Teekay&#146;s bylaws permit shareholders to
    nominate directors for election at an annual shareholder
    meeting. To nominate a director, the shareholder must deliver a
    proxy statement and form of proxy to holders of a sufficient
    number of shares of Teekay common stock to elect such nominee
    and provide the information required by Teekay&#146;s bylaws, as
    well as a statement by the nominee acknowledging that he or she
    will owe a fiduciary obligation to Teekay and its shareholders.
    In addition, the shareholder must give timely notice to
    Teekay&#146;s Corporate Secretary in accordance with the bylaws,
    which, in general, require that the notice be received by the
    Corporate Secretary within the time period described above under
    &#147;Shareholder Proposals.&#148;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copy
of Bylaws Provisions</I></B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    You may contact Teekay&#146;s Corporate Secretary at the address
    set forth above for a copy of the relevant bylaws provisions
    regarding the requirements for making shareholder proposals and
    nominating director candidates. Teekay&#146;s bylaws are also
    available under &#147;Corporate Governance&#148; in the Investor
    Centre section of Teekay&#146;s website at www.teekay.com.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='126'></A>
</DIV>

<!-- link1 "Q:How may I communicate with Teekay&#146;s Board or the non-management directors on Teekay&#146;s Board?" -->

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>Q:</I></B></TD>
    <TD>
    <B><I>How may I communicate with Teekay&#146;s Board or the
    non-management directors on Teekay&#146;s Board?</I></B></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>A:</TD>
    <TD align="left">
    You may submit any communication intended for Teekay&#146;s
    Board or the non-management directors by directing the
    communication by mail or fax addressed as follows:</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Nominating and Governance Committee</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Teekay Shipping Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>TK House, Bayside Executive Park</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>West Bay Street &#38; Blake Road</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>P.O. Box AP-59212</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Nassau, The Bahamas</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Attention: Bruce C. Bell, Director</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Facsimile: (242)&nbsp;502-8840</B>
</DIV>

<P align="center" style="font-size: 10pt;">6

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

<DIV align="left" style="font-size: 10pt;">
<A name='127'></A>
</DIV>

<!-- link1 "CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CORPORATE GOVERNANCE PRINCIPLES AND BOARD MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Teekay is committed to sound corporate governance principles.
These principles contribute to Teekay&#146;s business success
and are essential to maintaining Teekay&#146;s integrity in the
marketplace. Teekay&#146;s Corporate Governance Guidelines and
Standards of Business Conduct are available under
&#147;Corporate Governance&#148; in the Investor Centre section
of its website at www.teekay.com.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='128'></A>
</DIV>

<!-- link1 "Board Independence" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Board Independence</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board has determined that each of our directors, other than
Bjorn Moller, our President and Chief Executive Officer, and C.
Sean Day, our Chair of the Board, has no material relationship
with Teekay (either directly or as a partner, shareholder or
officer of an organization that has a relationship with Teekay)
and is <I>independent</I> within the meaning of Teekay&#146;s
director independence standards, which reflect the New York
Stock Exchange (or <I>NYSE</I>) director independence standards,
as currently in effect and as they may be changed from time to
time. In making this determination the Board considered the
relationships of Bruce C. Bell, Thomas Kuo-Yuen Hsu and Axel
Karlshoej with our largest shareholder and concluded these
relationships do not materially affect their independence as
directors. Please read &#147;Certain Relationships and Related
Transactions&#148; for additional information. Other than Bjorn
Moller, each of the current directors standing for re-election
at the annual meeting is an independent director.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board has determined that each member of each of
Teekay&#146;s Board committees has no material relationship with
Teekay (either directly or as a partner, shareholder or officer
of an organization that has a relationship with Teekay) and is
<I>independent</I> within the meaning of Teekay&#146;s director
independence standards. In addition, the Board has determined
that each member of the Audit Committee also satisfies
Teekay&#146;s Audit Committee member independence standards,
which reflect applicable NYSE and SEC audit committee member
independence standards.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='129'></A>
</DIV>

<!-- link1 "Board Structure and Committee Composition" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Board Structure and Committee Composition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of the date of this proxy statement, our Board has nine
directors and the following three committees: (1)&nbsp;Audit,
(2)&nbsp;Compensation and Human Resources, and
(3)&nbsp;Nominating and Governance. The function of each of the
committees is described below. Each of the committees operates
under a written charter adopted by the Board. All of the
committee charters are available under &#147;Corporate
Governance&#148; in the Investor Centre section of Teekay&#146;s
website at www.teekay.com. During fiscal 2004, the Board held
nine meetings. Each director attended all Board meetings, except
for two Board meetings at which one director was absent from
each. Each director attended all applicable committee meetings.
The membership of each of the committees for fiscal 2005 and the
number of meetings of each held in fiscal 2004 are as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>

    <TD width="66%">&nbsp;</TD>

    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>

    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Compensation and</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Nominating and</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Name of Director</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Audit</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Human Resources</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Governance</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Non-Employee Directors:</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

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

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ian D. Blackburne</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>X</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>X</TD>
    <TD align="left" valign="bottom" nowrap>*</TD>
</TR>

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

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Leif O. H&#246;egh</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>X</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

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

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thomas Kuo-Yuen Hsu</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>X</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>X</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Eileen A. Mercier</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>X</TD>
    <TD align="left" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>X</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tore I. Sandvold</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>X</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Employee Directors:</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

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

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Number of Meetings in Fiscal 2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>X&nbsp;</TD>
    <TD align="left">
    = Committee member</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    = Chair</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">7
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Audit Committee</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Teekay&#146;s Audit Committee is composed entirely of directors
who satisfy applicable NYSE and SEC audit committee independence
standards. All members of the committee are financially literate
and the Board has determined that Eileen A. Mercier qualifies as
an audit committee financial expert.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee assists the Board in fulfilling its
responsibilities for general oversight of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the integrity of Teekay&#146;s financial statements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    Teekay&#146;s compliance with legal and regulatory requirements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the independent auditors&#146; qualifications and independence;
    and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the performance of Teekay&#146;s internal audit function and
    independent auditors.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Specific duties of the Audit Committee include, among others:
preparing an Audit Committee report for inclusion in the annual
proxy statement; annually reviewing the Audit Committee charter
and the Committee&#146;s performance; appointing, evaluating and
compensating Teekay&#146;s independent auditors; pre-approving
the retention of the independent auditors for all audit and
permitted non-audit services; reviewing Teekay&#146;s financial
statements; reviewing Teekay&#146;s internal controls, internal
audit function and corporate policies with respect to financial
information; overseeing the establishment of procedures for
handling complaints concerning financial, accounting, internal
accounting controls and auditing matters; overseeing the
development of, periodically reviewing and monitoring compliance
with and the effectiveness of Teekay&#146;s Standards of
Business Conduct; and periodically reviewing risks that may have
a significant impact on Teekay&#146;s financial statements. The
Audit Committee works closely with Teekay&#146;s management,
internal auditors and independent auditors. The Audit Committee
has the authority to obtain advice and assistance from, and
receive appropriate funding from Teekay for, outside legal,
accounting and other advisors as the Audit Committee deems
necessary to fulfill its duties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The report of the Audit Committee is included on page&nbsp;25 of
this proxy statement. The Committee&#146;s charter is available
under &#147;Corporate Governance&#148; in the Investor Centre
section of Teekay&#146;s website at www.teekay.com.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Compensation and Human Resources Committee</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Compensation and Human Resources Committee:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    reviews and approves corporate goals and objectives relevant to
    the Chief Executive Officer&#146;s compensation, evaluates the
    Chief Executive Officer&#146;s performance in light of these
    goals and objectives and determines the Chief Executive&#146;s
    compensation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    reviews and approves the evaluation process and compensation
    structure for executives, other than the Chief Executive
    Officer, evaluates their performance and sets their compensation
    based on this evaluation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    reviews and makes recommendations to the Board regarding
    compensation for directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    establishes and administers long-term incentive compensation and
    equity-based plans; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    oversees Teekay&#146;s other compensation plans, policies and
    programs.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Specific duties of the Compensation and Human Resources
Committee include, among others: developing an executive
compensation philosophy and annually reviewing executive
compensation programs and practices; approving special
employment, severance, change-in-control and retirement
agreements or arrangements for executive officers; monitoring
director and executive stock ownership; and annually evaluating
the Committee&#146;s performance and its charter. The
Compensation and Human Resources Committee has the authority to
retain compensation consultants and other compensation experts
in fulfilling its duties and to compensate these advisors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The report of the Compensation and Human Resources Committee is
included beginning on page&nbsp;21 of this proxy statement. The
Committee&#146;s charter is available under &#147;Corporate
Governance&#148; in the Investor Centre section of Teekay&#146;s
website at www.teekay.com.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Nominating and Governance Committee</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nominating and Governance Committee:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    identifies individuals qualified to become Board members;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    selects and recommends to the Board director and committee
    member candidates;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">8

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

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    develops and recommends to the Board corporate governance
    principles and policies applicable to Teekay, monitors
    compliance with these principles and policies and recommends to
    the Board appropriate changes; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    oversees the evaluation of the Board and management.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Specific duties of the Nominating and Governance Committee
include, among others: annually assessing the size and
composition of the Board; periodically reviewing director
qualification criteria; annually reviewing and, as appropriate,
recommending directors for continued service; overseeing the
Board&#146;s committee structure; recommending Board committee
assignments; monitoring compliance with Board and Board
committee membership criteria; developing procedures for
selecting the Chair of the Board; determining the method of
communication between employees, shareholders and others
interested parties and non-management directors; and annually
evaluating the Committee&#146;s performance and its charter. The
Committee has the authority to obtain assistance from outside
advisors in fulfilling its duties and to compensate these
advisors. A member of the Nominating and Governance Committee
receives communications directed to non-management directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee&#146;s charter is available under &#147;Corporate
Governance&#148; in the Investor Centre section of Teekay&#146;s
website at www.teekay.com.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='130'></A>
</DIV>

<!-- link1 "Consideration of Director Nominees" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Consideration of Director Nominees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Shareholder Nominees</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The policy of the Nominating and Governance Committee is to
consider properly submitted shareholder nominations for Board of
Directors candidates as described below under &#147;Identifying
and Evaluating Nominees for Directors.&#148; In evaluating these
nominations, the Committee considers the balance of knowledge,
experience and capability on the Board and the membership
guidelines set forth below under &#147;Director
Qualifications.&#148; Any shareholder nominations proposed for
consideration by the Committee should include the nominee&#146;s
name and qualifications for Board membership and should be
mailed, addressed to:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Corporate Secretary</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Teekay Shipping Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Suite&nbsp;2000, Bentall 5</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>550 Burrard Street</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Vancouver, BC V6C&nbsp;2K2</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, Teekay&#146;s bylaws permit shareholders to
nominate directors for consideration at an annual shareholder
meeting. For a description of the process for nominating
directors in accordance with Teekay&#146;s bylaws, see
<I>&#147;Questions and Answers about the Proxy Materials and the
Annual Meeting&nbsp;&#151; What is the deadline to propose
actions for consideration at next year&#146;s annual meeting of
shareholders or to nominate individuals to serve as
directors?&#148;</I> on page&nbsp;5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Director Qualifications</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Teekay&#146;s Corporate Governance Guidelines include Board
membership guidelines that the Nominating and Governance
Committee should consider in reviewing and in recommending to
the Board director nominees. Under these guidelines, members of
the Board should have high standards of personal and
professional ethics, integrity and values. Among other things
the Nominating and Governance Committee should consider are the
nominee&#146;s training, experience and ability in making and
overseeing policy in business, government or education sectors;
willingness and availability to carry out his or her duties
effectively; and commitment to act in the best interests of
Teekay and its stakeholders and to assess objectively Board,
committee and management performance. In evaluating director
nominees, the Nominating and Governance Committee also assesses
an individual&#146;s qualifications, skills, experience,
background and knowledge in light of the overall composition of
the existing Board. Teekay&#146;s Corporate Governance
Guidelines, which include a more detailed discussion of desired
director qualifications, are available under &#147;Corporate
Governance&#148; in the Investor Centre section of its website
at www.teekay.com.
</DIV>

<P align="center" style="font-size: 10pt;">9

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Identifying and Evaluating Nominees for Directors</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nominating and Governance Committee uses a variety of
methods for identifying and evaluating director nominees for
recommendation to the Board for approval. The Nominating and
Governance Committee regularly assesses the appropriate size of
the Board, and whether any vacancies on the Board are expected
due to retirement or otherwise. In the event that vacancies are
anticipated or otherwise arise, the Nominating and Governance
Committee considers potential director candidates. Candidates
may come to the attention of the Nominating and Governance
Committee through current Board members, professional search
firms, shareholders or others. These candidates are evaluated at
regular or special meetings of the Nominating and Governance
Committee, and may be considered at any time during the year. As
described above, the Nominating and Governance Committee
considers properly submitted shareholder nominations for
candidates for the Board. Following verification of the
shareholder status of persons proposing candidates, any
recommendations are aggregated and considered by the Nominating
and Governance Committee at a regularly scheduled meeting. If
any materials are provided by a shareholder in connection with
the nomination of a director candidate, these materials are
forwarded to the Nominating and Governance Committee. The
Nominating and Governance Committee also reviews materials
provided by professional search firms or other parties in
connection with a nominee who is not proposed by a shareholder.
In evaluating these nominations, the Nominating and Governance
Committee seeks to achieve a balance of knowledge, experience
and capability on the Board.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='131'></A>
</DIV>

<!-- link1 "Executive Sessions" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Executive Sessions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Teekay&#146;s non-management directors hold at least four
executive sessions each year at which the non-management
directors meet without management directors or other executives
present. The sessions are scheduled and chaired by the Chair of
the Board. Any non-management director can request that
additional executive sessions be scheduled.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='132'></A>
</DIV>

<!-- link1 "Communications with the Board" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Communications with the Board</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Individuals may communicate with the Board by writing to
Teekay&#146;s Board by mail or fax addressed to:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Teekay Shipping Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>TK House, Bayside Executive Park</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>West Bay Street &#38; Blake Road</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>P.O. Box AP-59212</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Nassau, The Bahamas</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Attention: Bruce C. Bell, Director</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Facsimile: (242)&nbsp;502-8840</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Communications that are intended specifically for non-management
directors should be addressed to the Nominating and Governance
Committee and sent to the above address.
</DIV>

<P align="center" style="font-size: 10pt;">10

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

<DIV align="left" style="font-size: 10pt;">
<A name='133'></A>
</DIV>

<!-- link1 "DIRECTOR COMPENSATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DIRECTOR COMPENSATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides information on Teekay&#146;s
compensation and reimbursement practices during fiscal 2004 for
non-employee directors, as well as the range of compensation
paid to non-employee directors who served during fiscal 2004.
Teekay&#146;s employee directors do not receive any separate
compensation for their Board activities.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>NON-EMPLOYEE DIRECTOR COMPENSATION TABLE</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>FOR FISCAL 2004</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Annual cash retainer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$&nbsp;36,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Annual retainer paid in Teekay securities&nbsp;(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$&nbsp;50,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additional retainer paid in Teekay securities to Chair of the
    Board&nbsp;(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$228,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additional cash retainer for:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;Chair of the Board</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$164,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;Chair of the Audit Committee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$&nbsp;16,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;Member of Audit Committee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$&nbsp;&nbsp;8,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reimbursement for expenses attendant to Board membership</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>Yes</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Range of total compensation earned by directors (for the year)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>$86,000 to $478,000</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    Each director may elect to receive the securities portion of the
    annual retainer by a grant of restricted stock or stock options,
    valued using the Black-Scholes valuation model, under
    Teekay&#146;s 2003 Equity Incentive Plan. During 2004, certain
    of the directors elected to receive this annual retainer in the
    form of stock options to purchase an aggregate of 14,400 shares
    of our common stock at an exercise price of $33.63 per share.
    These options expire March&nbsp;9, 2014, ten years after the
    date of the grant, and vest with respect to 1/3 of the shares on
    each of the first three anniversaries of the grant date. Certain
    other directors elected to receive this annual retainer in the
    form of an aggregate of 14,260&nbsp;shares of restricted stock,
    which also vest with respect to 1/3 of the shares on each of the
    first three anniversaries of the grant date.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
Each director is expected to acquire at least 10,000 shares of
Teekay&#146;s common stock by no later than May&nbsp;14, 2008 or
the fifth anniversary of the date on which the director joined
the Board, whichever is later.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As at December&nbsp;31, 2004, the non-employee directors held
stock options to purchase a total of 536,022&nbsp;shares of
Teekay&#146;s common stock at exercise prices ranging from
$8.4375 to $33.625 per share and with expiration dates between
May&nbsp;28, 2006 and March&nbsp;9, 2014, ten years after each
option&#146;s respective grant date.
</DIV>

<P align="center" style="font-size: 10pt;">11

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<DIV align="left" style="font-size: 10pt;">
<A name='134'></A>
</DIV>

<!-- link1 "PROPOSALS TO BE VOTED ON" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROPOSALS TO BE VOTED ON</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='135'></A>
</DIV>

<!-- link1 "PROPOSAL NO. 1" -->

<DIV align="center" style="font-size: 10pt;">
<B>PROPOSAL NO.&nbsp;1</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>ELECTION OF DIRECTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Teekay&#146;s Board of Directors currently consists of nine
directors divided into three classes: Class&nbsp;I,
Class&nbsp;II and Class&nbsp;III. The number of directors in
each class is required to be as nearly equal as possible. At the
2005 annual meeting, three Class&nbsp;III directors will be
elected to serve for three-year terms until the 2008 annual
meeting and until their successors are elected. The remaining
six directors are divided into two classes of three Class&nbsp;I
directors and three Class&nbsp;II directors, whose terms expire
in 2006 and 2007, respectively. Votes may not be cast for a
greater number of director nominees than three.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information regarding the business experience of each nominee is
provided below. There are no family relationships among
Teekay&#146;s executive officers and directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you sign your proxy or voting instruction card but do not
give instructions for the voting of directors, your shares will
be voted &#147;FOR&#148; the three persons recommended by the
Board. If you wish to give specific instructions for the voting
of directors, you may do so by indicating your instructions on
your proxy or voting instruction card.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The three persons receiving the highest number of
&#147;FOR&#148; votes represented by shares of Teekay common
stock, present in person or represented by proxy and entitled to
be voted at the annual meeting, will be elected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board expects that all of the nominees will be available to
serve as directors. If for any unforeseen reason any of the
Board&#146;s nominees is not available as a candidate for
director, the proxyholders, Bjorn Moller, Peter Evensen and
Arthur J. Bensler, will vote your proxy for such other candidate
or candidates as may be nominated by the Board, unless the Board
chooses to reduce the number of directors serving on the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Our Board recommends a vote FOR the election to the Board
of the each of the following nominees.</I></B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INFORMATION ABOUT THE DIRECTOR NOMINEES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Class&nbsp;III Directors (terms would expire in 2008)</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="24%"></TD>
    <TD width="1%"></TD>
    <TD width="75%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Thomas Kuo-Yuen Hsu</B> <BR>
     Director since 1993 <BR>
     Age 58</TD>
    <TD></TD>
    <TD valign="top">
    Mr.&nbsp;Kuo-Yuen Hsu has served 30&nbsp;years with, and is
    presently a director of, CNC Industries, an affiliate of the
    Expedo Group of Companies that manages a fleet of nine vessels
    ranging in size from 30,000&nbsp;dead weight tonnes (dwt) to
    150,000&nbsp;dwt. He has been a Committee Director of the
    Britannia Steam Ship Insurance Association Limited since 1988.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>Axel Karlshoej</B> <BR>
     Director since 1989 <BR>
     Age 64</TD>
    <TD></TD>
    <TD valign="top">
    Mr.&nbsp;Karlshoej was Chair of the Teekay Board from June 1994
    to September 1999, and has been Chair Emeritus since stepping
    down as Chair. Mr.&nbsp;Karlshoej is President and serves on the
    compensation committee of Nordic Industries, a California
    general construction firm with which he has served for the past
    30&nbsp;years. He is the older brother of the late
    J.&nbsp;Torben Karlshoej, Teekay&#146;s founder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>Bjorn Moller</B> <BR>
     Director since April 1998 <BR>
     Age 47</TD>
    <TD></TD>
    <TD valign="top">
    Mr.&nbsp;Moller became Teekay&#146;s President and Chief
    Executive Officer in April 1998. Mr.&nbsp;Moller has served as
    Vice Chair and a Director of Teekay&nbsp;GP L.L.C., a wholly
    owned subsidiary of Teekay and the general partner of Teekay LNG
    Partners L.P., another wholly owned subsidiary of Teekay, since
    it was formed in November 2004. Mr.&nbsp;Moller has over
    20&nbsp;years&#146; experience in shipping and has served in
    senior management positions with Teekay for more than
    15&nbsp;years. He has headed Teekay&#146;s overall operations
    since January 1997, following his promotion to the position of
    Chief Operating Officer. Prior to this, Mr.&nbsp;Moller headed
    Teekay&#146;s global chartering operations and business
    development activities.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">12

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INFORMATION ABOUT DIRECTORS CONTINUING IN OFFICE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Class&nbsp;I Directors (terms expire in 2006)</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="24%"></TD>
    <TD width="1%"></TD>
    <TD width="75%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Bruce C. Bell</B> <BR>
     Director since 2000 <BR>
     Age 57</TD>
    <TD></TD>
    <TD valign="top">
    Mr.&nbsp;Bell is the Managing Director of Oceanic Bank and Trust
    Limited, a Bahamian bank and trust company, a position he has
    held since March 1994. Prior to joining Oceanic Bank and Trust,
    Mr.&nbsp;Bell was engaged in the private practice of law in
    Canada, specializing in corporate/ commercial, banking and
    international business transactions. From May 2000 until May
    2003, Mr.&nbsp;Bell served as Teekay&#146;s Corporate Secretary.
    Mr.&nbsp;Bell has served as the Secretary of Teekay GP L.L.C.
    since it was formed in November 2004. Mr.&nbsp;Bell is a
    director and the Vice President of Resolute Investments, Inc.,
    our largest shareholder. Please read &#147;Certain Relationships
    and Related Transactions.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>Dr.&nbsp;Ian D. Blackburne</B> <BR>
     Director since 2000 <BR>
     Age 59</TD>
    <TD></TD>
    <TD valign="top">
    Dr.&nbsp;Blackburne has over 25&nbsp;years&#146; experience in
    petroleum refining and marketing, and in March 2000 he retired
    as Managing Director and Chief Executive Officer of Caltex
    Australia Limited, a large petroleum refining and marketing
    conglomerate based in Australia. He is currently serving as
    Chairman of CSR Limited and is a director of Suncorp-Metway Ltd.
    and Mayne Group Limited, Australian public companies in the
    diversified industrial and financial sectors.
    Dr.&nbsp;Blackburne is also the Chairman of the Australian
    Nuclear Science and Technology Organization.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>C. Sean Day</B> <BR>
     Director since 1998 <BR>
     Age 55</TD>
    <TD></TD>
    <TD valign="top">
    Mr.&nbsp;Day has served as Teekay&#146;s Chair of the Board
    since September 1999. Mr.&nbsp;Day has also served as Chair of
    Teekay GP L.L.C.&#146;s board of directors since it was formed
    in November 2004. From 1989 to 1999, he was President and Chief
    Executive Officer of Navios Corporation, a large bulk shipping
    company based in Stamford, Connecticut. Prior to this,
    Mr.&nbsp;Day held a number of senior management positions in the
    shipping and finance industry. He is currently serving as a
    director of Kirby Corporation. Mr.&nbsp;Day also serves as the
    Chair of the Board of Resolute Investments, Inc., our largest
    shareholder. Please read &#147;Certain Relationships and Related
    Transactions.&#148;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Class&nbsp;II Directors (terms expire in 2007)</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="24%"></TD>
    <TD width="1%"></TD>
    <TD width="75%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Leif O. H&#246;egh</B> <BR>
     Director since 1999 <BR>
     Age 41</TD>
    <TD></TD>
    <TD valign="top">
    Mr.&nbsp;H&#246;egh was appointed as a director in June 1999 in
    connection with Teekay&#146;s acquisition of Bona Shipholding
    Ltd. He served as a director of Bona from November 1993 to June
    1999 and as its Chairman from June 1998 to June 1999.
    Mr.&nbsp;H&#246;egh is the joint controlling shareholder and
    Deputy Chairman of Leif H&#246;egh and Co. Ltd., a shipping
    company. He also serves as a director of NeoMed Management Ltd.
    and as the Chairman of H&#246;egh Capital Partners, Inc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>Eileen A. Mercier</B> <BR>
     Director since 2000 <BR>
     Age 57</TD>
    <TD></TD>
    <TD valign="top">
    Ms.&nbsp;Mercier has over 34&nbsp;years&#146; experience in a
    wide variety of financial and strategic planning positions,
    including Senior Vice President and Chief Financial Officer for
    AbitibiPrice Inc. from 1990 to 1995. She formed her own
    consulting company, Finvoy Management Inc. and acted as
    president from 1995-2003. She currently serves as a director for
    Hydro One Inc., ING Bank of Canada, the Ontario Teachers&#146;
    Pension Plan, Quebecor World Inc., York University, and the
    University Health Network, and as a director and audit committee
    member for CGI Group Inc., ING Canada Inc., Shermag Inc. and
    Winpak Ltd.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B>Tore I. Sandvold</B> <BR>
     Director since 2003 <BR>
     Age 58</TD>
    <TD></TD>
    <TD valign="top">
    Mr.&nbsp;Sandvold has over 30&nbsp;years&#146; experience in the
    oil and energy industry. From 1973 to 1987 he served in the
    Norwegian Ministry of Industry, Oil&nbsp;&#38; Energy, in a
    variety of positions in the area of domestic and international
    energy policy. From 1987 to 1990 he served as the Counselor for
    Energy in the Norwegian Embassy in Washington,&nbsp;D.C. From
    1990 to 2001 Mr.&nbsp;Sandvold served as Director General of the
    Norwegian Ministry of Oil&nbsp;&#38; Energy, with overall responsibility for Norway&#146;s national and
    international oil and gas policy.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">13

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

<TR>
    <TD width="24%"></TD>
    <TD width="1%"></TD>
    <TD width="75%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    From 2001 to 2002 he served as
    Chairman of the Board of Petoro, the Norwegian state-owned oil
    company that is the largest oil asset manager on the Norwegian
    continental shelf. From 2002 to the present, Mr.&nbsp;Sandvold,
    through his company, Sandvold Energy AS, has acted as advisor to
    companies and advisory bodies in the energy industry.
    Mr.&nbsp;Sandvold serves on other boards, including those of
    Schlumberger Limited., E.&nbsp;on Ruhrgas Norge AS, Lambert
    Energy Advisory Ltd., University of Stavanger, Offshore Northern
    Seas, and the Energy Policy Foundation of Norway.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">14

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<DIV align="left" style="font-size: 10pt;">
<A name='136'></A>
</DIV>

<!-- link1 "PROPOSAL NO. 2" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROPOSAL NO. 2</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>RATIFICATION OF INDEPENDENT AUDITORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee of the Board has appointed Ernst&nbsp;&#38;
Young LLP, Chartered Accountants, to examine the financial
statements of Teekay for the fiscal year ending
December&nbsp;31, 2005. Ernst&nbsp;&#38; Young LLP, Chartered
Accountants, examined the financial statements of Teekay for the
fiscal year ended December&nbsp;31, 2004 and also provided
certain tax and other audit-related services during fiscal 2004.
See &#147;Principal Auditor Fees and Services&#148; on
page&nbsp;24.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Our Board recommends a vote FOR the ratification of the
selection of Ernst &#38; Young LLP, Chartered Accountants, as
Teekay&#146;s independent auditors for fiscal 2005.</B> If the
appointment is not ratified, Teekay&#146;s Audit Committee will
consider whether it should select this firm as Teekay&#146;s
independent auditors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Vote Required</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ratification of the appointment of Ernst&nbsp;&#38; Young LLP,
Chartered Accountants, as Teekay&#146;s independent auditors for
fiscal 2005 requires the affirmative vote of a majority of the
shares of Teekay common stock present in person or represented
by proxy and entitled to be voted at the meeting.
</DIV>

<P align="center" style="font-size: 10pt;">15

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<DIV align="left" style="font-size: 10pt;">
<A name='137'></A>
</DIV>

<!-- link1 "COMMON STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>COMMON STOCK OWNERSHIP OF CERTAIN</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>BENEFICIAL OWNERS AND MANAGEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth information regarding beneficial
ownership, as of April&nbsp;8, 2005, of Teekay common stock by:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    each person or entity known by Teekay to beneficially own more
    than 5% of Teekay&#146;s common stock; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    all current Teekay directors and executive officers as a group.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information provided in the table is based on information
filed with the SEC and information provided to Teekay.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The number of shares beneficially owned by each person, entity,
director or executive officer is determined under SEC rules and
the information is not necessarily indicative of beneficial
ownership for any other purpose. Under SEC rules a person or
entity beneficially owns any shares as to which the person or
entity has or shares voting or investment power. In addition a
person or entity beneficially owns any shares that the person or
entity has the right to acquire as of June&nbsp;7, 2005
(60&nbsp;days after April&nbsp;8, 2005) through the exercise of
any stock option or other right. Unless otherwise indicated,
each person or entity has sole voting and investment power (or
shares such powers with his or her spouse) with respect to the
shares set forth in the following table.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Beneficial Ownership Table</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="71%">&nbsp;</TD>

    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Amount of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Percent of</B></TD>
</TR>

<TR style="font-size: 8pt;">

<TD colspan="2" align="left" nowrap><DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"><B>Name
and Address of Beneficial Owner</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000"><B>Beneficially Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000"><B>Class</B></TD>
</TR>


<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Resolute Investments, Inc.&nbsp;(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,631,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39.9%</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <I>TK House, Bayside Executive Park<BR>
    West Bay Street &#38; Blake Road<BR>
    P.O. Box AP-59212<BR>
    Nassau, The Bahamas</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    FMR Corp., Edward C. Johnson 3rd, and Abigail P. Johnson, as a
    group&nbsp;(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,554,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.1%</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <I>82 Devonshire Street<BR>
    Boston, Massachusetts 02109</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Neuberger Berman, Inc. and Neuberger Berman, LLC, as a
    group&nbsp;(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,338,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.2%</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <I>605 Third Avenue<BR>
    New York, New York 10158-3698</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All current directors and executive officers, as a group
    (17&nbsp;persons)&nbsp;(4)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,152,530</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.4%</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    This information is based on the Schedule&nbsp;13D/A filed with
    the SEC on March&nbsp;31, 2005. Please read &#147;Certain
    Relationships and Related Transactions.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)</TD>
    <TD align="left">
    Includes sole voting power as to 330,922 shares and sole
    dispositive power as to 11,554,017 shares. This information is
    based on the Schedule&nbsp;13G/A filed by this group with the
    SEC on February&nbsp;14, 2005.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)</TD>
    <TD align="left">
    Includes sole voting power as to 5,532,750 shares, shared voting
    power as to 1,274,100 shares and shared dispositive power as to
    8,338,419&nbsp;shares. Neuberger Berman, LLC and Neuberger
    Berman Management Inc. both have shared voting and dispositive
    power. Neuberger Berman, LLC and Neuberger Berman Management
    Inc. serve as sub-adviser and investment manager, respectively,
    of Neuberger Berman, Inc.&#146;s mutual funds. This information
    is based on the Schedule&nbsp;13G/A filed by this group with the
    SEC on February&nbsp;15, 2005.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)</TD>
    <TD align="left">
    Includes 1,017,758 shares of common stock subject to stock
    options exercisable by June&nbsp;7, 2005 (60&nbsp;days after
    April&nbsp;8, 2005). Excludes shares beneficially owned by
    Resolute Investments, Inc. Please read &#147;Certain
    Relationships and Related Transactions.&#148;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">16
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='138'></A>
</DIV>

<!-- link1 "CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As at December&nbsp;31, 2004, Resolute Investments, Inc. (or
<I>Resolute</I>) owned 39.5% of Teekay&#146;s outstanding common
stock. Two of Teekay&#146;s directors, C.&nbsp;Sean Day, who is
also chair of Teekay&#146;s Board, and Bruce Bell, are directors
and the Chairman and Vice President, respectively, of Resolute.
Two additional Teekay directors, Thomas Kuo-Yuen Hsu and Axel
Karlshoej, are among the Managing Directors of The Kattegat
Trust Company Limited, which is the trustee of the trust that
owns all of Resolute&#146;s outstanding equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Bruce Bell is also Manager Director of Oceanic Bank and Trust
Limited. Payments made by Teekay to Oceanic Bank and Trust
Limited for corporate administration fees and shared office
costs for fiscal 2004 totaled approximately $0.5&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November 2004, Teekay&#146;s wholly owned subsidiary, Teekay
LNG Partners L.P., filed a registration statement with the
U.S.&nbsp;Securities and Exchange Commission for an initial
public offering of its common units. Teekay LNG Partners L.P. is
a Marshall Islands limited partnership recently formed by Teekay
as part of its strategy to expand its operations in the LNG
sector. Upon the closing of the offering, Teekay LNG Partners
L.P. will provide liquid natural gas and crude oil marine
transportation services through a fleet of LNG carriers and
Suezmax class crude oil tankers, primarily consisting initially
of vessels Teekay obtained through its acquisition in April 2004
of Naviera F. Tapias S.A., which has since been reconstituted
and renamed Teekay Shipping Spain S.L. Teekay GP L.L.C. is a
wholly owned subsidiary of Teekay Shipping Corporation and the
general partner of Teekay LNG Partners L.P.
</DIV>

<P align="center" style="font-size: 10pt;">17

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

<DIV align="left" style="font-size: 10pt;">
<A name='139'></A>
</DIV>

<!-- link1 "EXECUTIVE OFFICERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXECUTIVE OFFICERS</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="41%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"><B>Name</B></div></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"><B>Age</B></div></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="left" nowrap><DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"><B>Position</B></div></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Moller, Bjorn*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, President and Chief Executive Officer</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Antturi, Peter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President, Teekay Navion Shuttle Tankers, a division of Teekay
    Shipping Corporation</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Bensler, Arthur</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    SVP, General Counsel and Secretary</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Evensen, Peter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    EVP and Chief Financial Officer</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Glendinning, David</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President, Teekay Gas and Offshore, a division of Teekay
    Shipping Corporation</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gordon, Jennifer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    SVP, Corporate Resources</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lok, Vincent</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    SVP and Treasurer</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Westgarth, Graham</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President, Teekay Marine Services, a division of Teekay Shipping
    Corporation</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Wogan, Paul</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President, Teekay Tanker Services, a division of Teekay Shipping
    Corporation</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    For information regarding Mr.&nbsp;Moller, please read
    &#147;Proposal No.&nbsp;1: Election of Directors&nbsp;&#151;
    Information About the Director Nominees&#148; above.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Peter Antturi</I></B> joined Teekay in September 1991.
Since then, he has held a number of finance and accounting
positions, including Controller from March 1992 until his
promotion to the position of Senior Vice President, Treasurer
and Chief Financial Officer in October 1997. In 2003 he became
President of Navion AS upon the closing of Teekay&#146;s
acquisition of Navion. In November 2003 Mr.&nbsp;Antturi was
appointed President of our Teekay Navion Shuttle Tankers
division, which is responsible for the shuttle tanker activities
and projects of our two wholly owned subsidiaries, Navion AS and
Ugland Nordic Shipping AS. Prior to joining Teekay,
Mr.&nbsp;Antturi held various accounting and finance roles in
the shipping industry since 1985.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Arthur Bensler</I></B> joined Teekay in September 1998 as
General Counsel. He was promoted to the position of Vice
President in March 2002 and became the corporate Secretary of
Teekay in May 2003. He was appointed Senior Vice President in
February 2004. Prior to joining Teekay, Mr.&nbsp;Bensler was a
partner in a large Vancouver, Canada law firm, where he
practiced corporate, commercial and maritime law from 1986 until
joining Teekay.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Peter Evensen</I></B> joined Teekay in May 2003 as Senior
Vice President, Treasurer and Chief Financial Officer. He was
appointed Executive Vice President and Chief Financial Officer
in February 2004. Mr.&nbsp;Evensen has served as the Chief
Executive Officer and Chief Financial Officer of Teekay GP
L.L.C. since it was formed in November 2004 and as a Director of
Teekay GP&nbsp;L.L.C. since January 2005. Mr.&nbsp;Evensen has
over 20&nbsp;years&#146; experience in banking and shipping
finance. Prior to joining Teekay, Mr.&nbsp;Evensen was Managing
Director and Head of Global Shipping at J.P. Morgan Securities
Inc. and worked in other senior positions for its predecessor
firms. His international industry experience includes positions
in New York, London and Oslo.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>David Glendinning</I></B> joined Teekay in January 1987.
Since then, he has held a number of senior positions, including
Vice President, Marine and Commercial Operations from January
1995 until his promotion to the position of Senior Vice
President, Customer Relations and Marine Project Development in
February 1999. In November 2003 Mr.&nbsp;Glendinning was
appointed President of our Teekay Gas and Offshore division,
which is responsible for our initiatives in the liquefied
natural gas (LNG) business and other areas of gas activity as
well as building on our international presence in the floating
storage and offtake (FSO) business and related offshore
activities. Prior to joining Teekay, Mr.&nbsp;Glendinning, who
is a Master Mariner, had 18&nbsp;years&#146; sea service on oil
tankers of various types and sizes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Jennifer Gordon</I></B> joined Teekay in April 2004 as
Senior Vice President, Corporate Resources. Prior to joining
Teekay, Ms.&nbsp;Gordon had since 1999 been with Placer Dome
Inc., an international gold, silver and copper mining company
where she held several human resources management positions and
was promoted to the position of Senior Vice President, Human
Resources in 2002. Her experience prior to 1999 includes
positions in human resources management at Finning International
Inc., Colgate-Palmolive Canada Inc. and Suncor Energy Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Vincent Lok</I></B> joined Teekay in June 1993. Since
then, he has held a number of finance and accounting positions,
including Controller from 1997 until his promotion to the
position of Vice President, Finance in March
</DIV>

<P align="center" style="font-size: 10pt;">18
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
2002. He was appointed Senior Vice President and Treasurer in
February 2004. Prior to joining Teekay, Mr.&nbsp;Lok worked in
the Vancouver, Canada audit practice of Deloitte &#38; Touche.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Graham Westgarth</I></B> joined Teekay in February 1999 as
Vice President, Marine Operations. He was promoted to the
position of Senior Vice President, Marine Operations in December
1999. In November 2003 Mr.&nbsp;Westgarth was appointed
President of our Teekay Marine Services division, which is
responsible for all of Teekay&#146;s marine and technical
operations as well as marketing a range of services and products
to third parties, such as marine consulting services and
computer-based marine training software. He has extensive
shipping industry experience. Prior to joining Teekay,
Mr.&nbsp;Westgarth was General Manager of Maersk Company (UK),
where he joined as Master in 1987. His international industry
experience includes 18&nbsp;years&#146; sea service, with five
years in a command position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I>Paul Wogan</I></B> joined Teekay in November 2000 as
Managing Director of the London office. He was promoted to the
position of Vice President, Business Development in March 2002.
In November 2003 Mr.&nbsp;Wogan was appointed President of our
Teekay Tanker Services division, which is responsible for the
commercial management of our conventional crude oil and product
tanker transportation services. Prior to joining Teekay,
Mr.&nbsp;Wogan was with the chartering arm of a major crude oil
and product carrier fleet controlled by the Ceres Hellenic Group
(Livanos), which subsequently founded Seachem Tankers Ltd., a
chemical tanker company, where he served as the Chief Executive
Officer from 1997 until joining Teekay.
</DIV>

<P align="center" style="font-size: 10pt;">19

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

<DIV align="left" style="font-size: 10pt;">
<A name='140'></A>
</DIV>

<!-- link1 "EXECUTIVE COMPENSATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXECUTIVE COMPENSATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table discloses compensation earned during fiscal
2004 by Teekay&#146;s Chief Executive Officer and Teekay&#146;s
four other most highly paid executive officers (together with
the Chief Executive Officer, the <I>named executive
officers</I>), as well as their compensation earned from Teekay
for each of fiscal 2003 and 2002.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='141'></A>
</DIV>

<!-- link1 "Summary Compensation Table (1)" -->

<DIV align="center" style="font-size: 8pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><FONT style="font-size: 10pt">Summary Compensation
Table</FONT></B>&nbsp;(1)
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="30%">&nbsp;</TD>

    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>

    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="center" nowrap><B>Annual Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="center" nowrap><B>Long-Term Compensation</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Restricted</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Options/SARs</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>All Other</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap style="border-bottom: 1pt solid #000000;"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000;"><B>Salary</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000;"><B>Bonus&nbsp;</B>(2)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000;"><B>Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000;"><B>(#)&nbsp;</B>(3)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000;"><B>Compensation</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,995,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,616,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,796,220</TD>
    <TD align="left" valign="bottom" nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>257,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,804,551</TD>
    <TD align="left" valign="bottom" nowrap>(5)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,768,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,688,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,450,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>377,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>747,854</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,376,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>895,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#150;0&#150;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>156,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>226,819</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    Cash amounts set forth in this table were paid primarily in
    Canadian Dollars, but are reported here in U.S.&nbsp;Dollars
    using an exchange rate of 1.20 Canadian Dollars for each
    U.S.&nbsp;Dollar for 2004; 1.30 Canadian Dollars for each
    U.S.&nbsp;Dollar for 2003; and 1.57 Canadian Dollars for each
    U.S.&nbsp;Dollar for 2002. The actual U.S.&nbsp;Dollar
    equivalent amounts recognized by us were significantly lower
    than the amounts indicated for 2003, due to a more favorable
    exchange rate resulting from our currency hedging activities
    related to these compensation payments.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)</TD>
    <TD align="left">
    Bonus payments relate to the performance of the individual and
    Teekay in the given year.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)</TD>
    <TD align="left">
    These numbers have been revised to reflect the May 2004 stock
    split.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)</TD>
    <TD align="left">
    Consists of $521,000 in value of restricted stock units that
    vest fully on December&nbsp;31, 2006 and $9,275,220 in value of
    restricted stock units, granted as special bonus payments not
    related to a specific fiscal year, that vest with respect to 1/3
    of the shares on each of March&nbsp;31, 2006, March&nbsp;31,
    2007 and November&nbsp;30, 2007. The named executive officers
    hold a total of 74,800&nbsp;shares of restricted stock and
    236,070 restricted stock units. The restricted stock units are
    payable in cash or shares of Teekay&#146;s common stock
    (purchased on the open market), at the election of
    the&nbsp;grantee.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)</TD>
    <TD align="left">
    Consists of $4,388,078 as the cash portion of special bonus
    payments not related to a specific fiscal year, $394,544 for the
    payment of employer contributions to pension plans, and $21,929
    for the payment of life insurance premiums. In addition the
    Company pays for parking, tax planning services and annual
    medical checkups for the named executive officers, which in the
    aggregate amounts to less than&nbsp;$30,000.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='142'></A>
</DIV>

<!-- link1 "Option/SAR Grants In Fiscal 2004" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Option/SAR Grants In Fiscal 2004</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides information regarding aggregate
option/ stock appreciation right (or <I>SAR</I>) grants in
fiscal 2004 by Teekay to the named executive officers. Teekay
granted stock appreciation rights to one named executive officer
during fiscal 2004.
</DIV>

<CENTER>
<TABLE width="65%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="20%">&nbsp;</TD>

    <TD width="7%">&nbsp;</TD>

    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>

    <TD width="7%">&nbsp;</TD>

    <TD width="6%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>

    <TD width="7%">&nbsp;</TD>

    <TD width="5%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Percent of Total</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Number of Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Options/SARs</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Granted to</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Options/SARs</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Employees in Fiscal</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Exercise Price</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap style="border-bottom: 1pt solid #000000;"><B>Granted&nbsp;</B>(1)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000"><B>Year&nbsp;</B>(2)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000"><B>($/Share)</B></TD>
    <TD>&nbsp;</TD>
<TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000"><B>Expiration Date</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap>&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    257,800</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="center" valign="top" nowrap>29.7%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">$</TD>
    <TD align="center" valign="top" nowrap>33.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="top" nowrap>March&nbsp;9, 2014</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    All options and SARs granted in fiscal 2004 are exercisable in
    equal 1/3&nbsp;amounts after each of the first three
    anniversaries of the grant date. The SARs only permit settlement
    in cash, and will not result in the issuance of any shares of
    Teekay&#146;s common stock.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)</TD>
    <TD align="left">
    In fiscal 2004, Teekay granted options to employees and
    directors to purchase an aggregate of 833,840 shares of common
    stock and SARs with respect to 33,200 shares of common stock.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt;">
<A name='143'></A>
</DIV>

<!-- link1 "Aggregated Fiscal 2004 Year-End Options/SARs" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Aggregated Fiscal 2004&nbsp;Year-End Options/SARs</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides information on the aggregate named
executive officers&#146; unexercised options/SARs at
December&nbsp;31, 2004.
</DIV>

<CENTER>
<TABLE width="40%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="10%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="7" align="center" nowrap><B>Number of Securities Underlying</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="7" align="center" nowrap><B>Unexercised Options/SARs at</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="7" align="center" nowrap><B>Fiscal Year-End</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="7" align="center" nowrap style="border-top: 1pt solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap style="border-bottom: 1pt solid #000000"><B>Exercisable</B></TD>
    <TD>&nbsp;</TD>

<TD colspan="3" align="center" nowrap  style="border-bottom: 1pt solid #000000"><B>Unexercisable</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR>
    <TD colspan="3" align="center" valign="top" nowrap>553,740</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>464,194</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">20
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<DIV align="left" style="font-size: 10pt;">
<A name='144'></A>
</DIV>

<!-- link1 "REPORT OF THE COMPENSATION AND HUMAN RESOURCES COMMITTEE OF THE BOARD OF DIRECTORS ON EXECUTIVE COMPENSATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>REPORT OF THE COMPENSATION AND HUMAN RESOURCES COMMITTEE</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>OF THE BOARD OF DIRECTORS ON EXECUTIVE COMPENSATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Teekay&#146;s executive compensation program is administered by
the Compensation and Human Resources Committee of the Board of
Directors (or <I>Committee</I>). The Committee is composed
entirely of non-employee directors who are independent, as
determined by the Board, within the meaning of applicable NYSE
standards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee is responsible for:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    determining and approving compensation for Teekay&#146;s Chief
    Executive Officer, directors and other executive officers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    making recommendations to the Board regarding incentive
    compensation and equity-based plans; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    providing general oversight of other Teekay compensation plans,
    policies and programs.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The specific duties and responsibilities of the Committee are
described above under &#147;Corporate Governance Principles and
Board Matters&nbsp;&#151; Board Structure and Committee
Composition&nbsp;&#151; Compensation and Human Resources
Committee&#148; and in the Committee&#146;s charter, which is
available under &#147;Corporate Governance&#148; in the Investor
Centre section of Teekay&#146;s website at www.teekay.com.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee met four times during fiscal 2004. The Committee
has direct access to independent compensation consultants and
other experts for information as it deems appropriate, and used
independent consultants from time to time during the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee has furnished the following report on executive
compensation for fiscal 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Executive Compensation Philosophy</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Employees are the key to our success. The goals of Teekay&#146;s
compensation programs are to:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    attract, retain and motivate a high-caliber executive leadership
    team;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    pay competitively and consistently within an appropriately
    defined market;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    align executive compensation with shareholder interests; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    link pay to Teekay and individual performance.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Executive Compensation Practices</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each year, we survey the executive compensation practices of our
industry peer groups. Our practice is to target our program for
executive compensation at approximately the median percentile of
equivalent programs of our industry peer groups.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Components of Executive Compensation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Base Pay</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Base pay is baseline cash compensation and is determined by the
competitive market and individual performance. In general, base
pay for each executive officer is established annually based on
(1)&nbsp;a compensation range which corresponds to the
executive&#146;s job responsibilities and (2)&nbsp;the executive
officer&#146;s overall individual job performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Annual Bonus</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our annual bonus programs focus on matching reward with the
individual&#146;s performance and Teekay&#146;s financial
performance in the fiscal year through comparison to established
targets and the financial performance of peer companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Long-term Incentive Programs</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Teekay&#146;s long-term incentive programs are designed to focus
management on the creation of long-term, sustained performance
that achieves growth, improved returns on investment and
effective capital management, resulting in the creation of
long-term value for our shareholders. They are also designed to
encourage employee retention and equity ownership. The programs
utilize stock option grants, stock appreciation rights and
restricted stock awards, which can be denominated in&nbsp;units.
</DIV>

<P align="center" style="font-size: 10pt;">21

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For fiscal 2004, our executive officers received stock option
grants under Teekay&#146;s 2003 Equity Incentive Plan. Each
stock option grant allows the executive officer to acquire
shares of Teekay&#146;s common stock, subject to the completion
of a three-year vesting period and continued employment with
Teekay. These shares may be acquired at a fixed price per share
(i.e., the fair market value on the grant date) and have a
ten-year term. From time to time, we also grant shares of
restricted stock or restricted stock units to reward exceptional
performance and encourage retention.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 2005, Teekay adopted the Vision Incentive Plan to reward
exceptional corporate performance and shareholder returns and to
reward a shift away from cycle-dependent results. This plan will
result in an award pool for participants based on two measures:
(a)&nbsp;economic profit from 2005 to 2010; and
(b)&nbsp;increases to shareholder value from 2001 to 2010. The
Vision Incentive Plan terminates on December&nbsp;31, 2010. From
2005 to 2010, annual economic profit contributions will be made
to the award pool based upon the degree to which Teekay&#146;s
annual return on invested capital exceeds its weighted average
cost of capital. Each contribution may be positive or negative.
At the end of 2010, a shareholder value contribution will be
made to the Vision Incentive Plan award pool if two threshold
requirements are met: (a)&nbsp;shares of Teekay&#146;s common
stock must have a market value at that time equal to at least
120% of their book value; and (b)&nbsp;Teekay&#146;s cumulative
total shareholder return for the period from 2001 to 2010 must
be above the 25th percentile relative to the total shareholder
return of the S&#38;P&nbsp;500 (as calculated in accordance with
U.S.&nbsp;securities regulations) during the same period. If
both of the threshold requirements are met, then a shareholder
value contribution will be made to the award pool. The amount of
this shareholder value contribution will range from a low of
1.5% of Teekay&#146;s cumulative total shareholder return for
performance between the 25th and 50th percentiles, to a maximum
of 6% of Teekay&#146;s cumulative total shareholder return for
performance above the 90th percentile, depending on the
cumulative total shareholder return of Teekay&#146;s shares for
the period from 2001 to 2010 relative to the S&#38;P&nbsp;500
(as calculated in accordance with U.S.&nbsp;securities
regulations) during the same period. Individual awards relating
to increases in shareholder value are capped at ten&nbsp;times
the individual&#146;s annual base salary and target annual
incentive award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 2008, if the Vision Incentive Plan&#146;s award pool has a
cumulative positive balance based on economic profit
contributions for the preceding three years, then an interim
distribution may be made to participants in an amount not
greater than half of the award pool. In 2011, the balance of the
Vision Incentive Plan award pool will be distributed to the
participants. Fifty&nbsp;percent of any distribution from the
award pool, in 2008 and in 2011, must be paid in a form that is
equity-based, with vesting on half of this percentage deferred
for one year and vesting on the remaining half of this
percentage deferred for two&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Executive Share Ownership Guidelines</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 2005, we implemented share ownership guidelines for the
executives of Teekay. The guidelines are for common share
holdings with an aggregate value of three&nbsp;times base salary
for the CEO, two&nbsp;times base salary for Presidents and
Executive Vice Presidents, and one&nbsp;times base salary for
Senior Vice Presidents. The guidelines should be achieved by
March&nbsp;2010 or, for executives subsequently joining Teekay
or achieving a position covered by the guidelines, within
five&nbsp;years after the guidelines become applicable
to&nbsp;them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned members of the Compensation and Human Resources
Committee have submitted this Report to the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Axel Karlshoej, Chair
</DIV>

<DIV align="left" style="font-size: 10pt;">
Ian D. Blackburne
</DIV>

<DIV align="left" style="font-size: 10pt;">
Thomas Kuo-Yuen Hsu
</DIV>

<P align="center" style="font-size: 10pt;">22

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<DIV align="left" style="font-size: 10pt;">
<A name='145'></A>
</DIV>

<!-- link1 "STOCK PERFORMANCE GRAPH" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>STOCK PERFORMANCE GRAPH</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The graph below shows the cumulative total shareholder return
assuming the investment of $100 on December&nbsp;31, 1999 (and
the reinvestment of dividends after such date) in each of Teekay
common stock, the Dow Jones Marine Transportation Index and the
S&#38;P 500 Index. Past performance is not necessarily an
indicator of future results.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="o15313o1531301.gif" alt="(PERFORMANCE LINE GRAPH)">
</DIV>

<P align="center" style="font-size: 10pt;">23

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

<DIV align="left" style="font-size: 10pt;">
<A name='146'></A>
</DIV>

<!-- link1 "PRINCIPAL AUDITOR FEES AND SERVICES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PRINCIPAL AUDITOR FEES AND SERVICES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee has appointed Ernst &#38; Young LLP,
Chartered Accountants, as Teekay&#146;s independent auditors for
fiscal 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Fees Incurred by Teekay for Ernst &#38; Young LLP Services</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows the fees paid or accrued by Teekay for
audit and other services provided by Ernst &#38; Young LLP,
Chartered Accountants, for fiscal 2004 and 2003.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="69%">&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="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Fees</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Audit Fees&nbsp;(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>907,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>454,780</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Audit-Related Fees&nbsp;(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>395,176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>76,120</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="white">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tax Fees&nbsp;(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>232,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>329,570</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other Fees&nbsp;(4)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,605</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="white">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,537,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>862,075</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>(1)</TD>
    <TD align="left">
    Audit fees represent fees for professional services provided in
    connection with the audit of Teekay&#146;s consolidated
    financial statements and review of its quarterly consolidated
    financial statements and audit services provided in connection
    with other statutory or regulatory filings.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)</TD>
    <TD align="left">
    Audit-related fees consisted primarily of accounting
    consultations, employee benefit plan audits, services related to
    business acquisitions and divestitures and other attestation
    services.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)</TD>
    <TD align="left">
    For fiscal 2004 and 2003, respectively, tax fees principally
    included international tax planning fees of $62,455 and
    $175,290, corporate tax compliance fees of $38,849 and $67,070
    and personal and expatriate tax services fees of $131,336 and
    $87,210.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)</TD>
    <TD align="left">
    All other fees principally include subscription fees to an
    internet database of accounting information.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee has the authority to pre-approve permissible
audit-related and non-audit services to be performed by
Teekay&#146;s independent auditors and associated fees.
Engagements for proposed services either may be separately
pre-approved by the Audit Committee or entered into pursuant to
detailed pre-approval policies and procedures established by the
Audit Committee, as long as the Audit Committee is informed on a
timely basis of any engagement entered into on that basis. The
Audit Committee separately pre-approved all engagements and fees
paid to Teekay&#146;s independent auditor in fiscal 2004.
</DIV>

<P align="center" style="font-size: 10pt;">24

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

<DIV align="left" style="font-size: 10pt;">
<A name='147'></A>
</DIV>

<!-- link1 "REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>REPORT OF THE AUDIT COMMITTEE OF</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>THE BOARD OF DIRECTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee assists the Board in fulfilling its
responsibilities for oversight of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the integrity of Teekay&#146;s financial statements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    Teekay&#146;s compliance with legal and regulatory requirements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the independent auditors&#146; qualifications and independence;
    and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the performance of Teekay&#146;s internal audit function and
    independent auditors.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee manages Teekay&#146;s relationship with its
internal auditors and its independent auditors, who both report
directly to the Audit Committee. The Audit Committee has the
authority to obtain advice and assistance from outside legal,
accounting or other advisors as the Audit Committee deems
necessary to carry out its duties and to receive appropriate
funding, as determined by the Audit Committee, from Teekay for
such advice and assistance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Teekay&#146;s management has primary responsibility for
preparing Teekay&#146;s consolidated financial statements and
Teekay&#146;s financial reporting process. Teekay&#146;s
independent auditors, Ernst &#38; Young LLP, Chartered
Accountants, are responsible for expressing an opinion on the
conformity of Teekay&#146;s audited consolidated financial
statements with accounting principles generally accepted in the
United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In this context, the Audit Committee reports as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>1.</TD>
    <TD align="left">
    The Audit Committee has reviewed and discussed the audited
    consolidated financial statements for fiscal 2004 with
    Teekay&#146;s management.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>2.</TD>
    <TD align="left">
    The Audit Committee has discussed with the independent auditors
    the matters required to be discussed by Statement of Auditing
    Standards No.&nbsp;61, as amended or modified.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>3.</TD>
    <TD align="left">
    The Audit Committee has received the letter and written
    disclosures from the independent auditors required by
    Independence Standards Board Standard No.&nbsp;1,
    <I>Independence Discussions with Audit Committees,</I> and has
    discussed the matter of independence with the independent
    auditors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>4.</TD>
    <TD align="left">
    Based on the review and discussions referred to in
    paragraphs&nbsp;(1) through&nbsp;(3) above, the Audit Committee
    has recommended to Teekay&#146;s Board of Directors, and the
    Board has approved, that Teekay&#146;s audited consolidated
    financial statements be included in Teekay&#146;s Annual Report
    on Form&nbsp;20-F for fiscal 2004, for filing with the SEC.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The undersigned members of the Audit Committee have submitted
this Report to the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Eileen A. Mercier, Chair
</DIV>

<DIV align="left" style="font-size: 10pt;">
Leif O. H&#246;egh
</DIV>

<DIV align="left" style="font-size: 10pt;">
Tore I. Sandvold
</DIV>

<P align="center" style="font-size: 10pt;">25
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!.S\_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
