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<SEC-DOCUMENT>0000945234-07-000325.txt : 20070507
<SEC-HEADER>0000945234-07-000325.hdr.sgml : 20070507
<ACCEPTANCE-DATETIME>20070507092711
ACCESSION NUMBER:		0000945234-07-000325
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20070410
FILED AS OF DATE:		20070507
DATE AS OF CHANGE:		20070507

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:		07822420

	BUSINESS ADDRESS:	
		STREET 1:		BAYSIDE HOUSE, BAYSIDE EXECUTIVE PARK
		STREET 2:		WEST BAY ST & BLAKE RD, PO BOX AP-59212
		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>o35737e6vk.htm
<DESCRIPTION>PROXY STATEMENT DATED APRIL 10, 2007
<TEXT>
<HTML>
<HEAD>
<TITLE>Proxy Statement Dated April 10, 2007</TITLE>
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<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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



<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: 12pt"><B>Report of Foreign Private Issuer</B>



<P align="center" style="font-size: 12pt; margin-top: 9pt"><B>Pursuant to Rule&nbsp;13a-16 or 15d-16 of<BR>
the Securities Exchange Act of 1934</B>



<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><HR size="1" noshade width="20%" align="center" color="#000000">
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Date
of report:&nbsp;&nbsp;May 3, 2007</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 9pt"><B>Commission file number:&nbsp;&nbsp;1-12874</B>

</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="70%" align="center" color="#000000">
(Exact name of Registrant as specified in its charter)</DIV>



<P align="center" style="font-size: 10pt; margin-top: 18pt">Bayside 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="32%" 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="50%">
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<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;

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<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="50%">
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    <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="50%">
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<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="50%">
<!-- 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>

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


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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1 &#151; Information Contained in this Form&nbsp;6-K Report</B>
</DIV>


<DIV align="left" style="margin-top: 12pt; margin-left: 8%; margin-right:20%; font-size: 10pt">Attached
as Exhibit&nbsp;I is a copy of the 2007 Proxy Statement of Teekay
Shipping Corporation (the&nbsp;&#147;Company&#148;), dated
April&nbsp;10, 2007.
</DIV>


<P align="center" style="font-size: 10pt; margin-top: 30pt"><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, 2007</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Vincent Lok&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Vincent Lok&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Senior Vice President 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>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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    <TD width="87%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <IMG src="o35737o3573702.gif" alt="" ><FONT style="font-size: 10pt">
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B><FONT style="font-size: 18pt">TEEKAY SHIPPING CORPORATION<BR>
    </FONT><FONT style="font-size: 9pt">Bayside House, Bayside
    Executive Park, West Bay Street&#160;&#38; Blake Road<BR>
    P.O. Box&#160;AP-59212, Nassau, The
    Bahamas</FONT></B><FONT style="font-size: 9pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;10, 2007
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dear Shareholder:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On behalf of the Board of Directors, it is my pleasure to extend
    to you an invitation to attend the 2007 Annual Meeting of
    Shareholders of Teekay Shipping Corporation. The annual meeting
    will be held at:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="7%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <B>Place:&#160;</B>
</TD>
    <TD align="left">
    Private Suite&#160;3&#160;<BR>
    Mayfair Radisson Edwardian Hotel<BR>
    Stratton Street<BR>
    London, England<BR>
    W1J 8LT
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Date:&#160;</B>Tuesday, May&#160;29, 2007
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Time:&#160;</B>9:00&#160;a.m. (London time)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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)&#160;the election of directors (2)&#160;approval of an
    amendment to Teekay&#146;s Amended and Restated Articles of
    Incorporation changing Teekay&#146;s name to &#147;Teekay
    Corporation&#148;, and (3)&#160;the ratification of the
    selection of Ernst&#160;&#38; Young LLP, Chartered Accountants,
    as Teekay&#146;s independent auditors for the fiscal year ending
    December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors unanimously recommends that shareholders
    vote for the election of the nominated directors, for the
    amendment to Teekay&#146;s Articles of Incorporation and for the
    ratification of Ernst&#160;&#38; Young LLP, Chartered
    Accountants, as Teekay&#146;s independent auditors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <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 style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="o35737o3573703.gif" alt="-s- Bjorn Moller" >
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    BJORN MOLLER
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    President and Chief Executive Officer
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">2007
    ANNUAL MEETING OF SHAREHOLDERS</FONT></B>
</DIV>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NOTICE OF ANNUAL MEETING AND PROXY STATEMENT</B>
</DIV>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>TABLE OF CONTENTS</B>
</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'><B><FONT style="font-size: 10pt">NOTICE OF ANNUAL
    MEETING OF SHAREHOLDERS</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">1
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'><B><FONT style="font-size: 10pt">QUESTIONS AND
    ANSWERS ABOUT THE PROXY MATERIALS AND THE ANNUAL
    MEETING</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">2
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#103'><I><FONT style="font-size: 10pt">Why am I
    receiving these materials?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">2
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#104'><I><FONT style="font-size: 10pt">What information
    is contained in this proxy statement?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">2
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#105'><I><FONT style="font-size: 10pt">How may I obtain
    Teekay&#146;s annual report to shareholders?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">2
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#106'><I><FONT style="font-size: 10pt">How may I obtain
    Teekay&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    filed with the SEC?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">2
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#107'><I><FONT style="font-size: 10pt">What items of
    business will be voted on at the annual meeting?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">2
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#108'><I><FONT style="font-size: 10pt">How does the
    Board recommend that I vote?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">2
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#109'><I><FONT style="font-size: 10pt">What shares can
    I vote?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">2
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#110'><I><FONT style="font-size: 10pt">What is the
    difference between holding shares as a shareholder of record and
    as a beneficial owner?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">3
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#111'><I><FONT style="font-size: 10pt">How can I attend
    the annual meeting?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">3
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#112'><I><FONT style="font-size: 10pt">How can I vote
    my shares in person at the annual meeting?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">3
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#113'><I><FONT style="font-size: 10pt">How can I vote
    my shares without attending the annual meeting?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">3
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#114'><I><FONT style="font-size: 10pt">Can I change my
    vote?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">4
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#115'><I><FONT style="font-size: 10pt">Is my vote
    confidential?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">4
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#116'><I><FONT style="font-size: 10pt">How many shares
    must be present or represented to conduct business at the annual
    meeting?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">4
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#117'><I><FONT style="font-size: 10pt">How are votes
    counted?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">4
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#118'><I><FONT style="font-size: 10pt">What is the
    voting requirement to approve each of the
    proposals?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">5
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#119'><I><FONT style="font-size: 10pt">Is cumulative
    voting permitted for the election of directors?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">5
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#120'><I><FONT style="font-size: 10pt">What happens if
    additional matters are presented at the annual
    meeting?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">5
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#121'><I><FONT style="font-size: 10pt">What should I do
    if I receive more than one set of voting
    materials?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">5
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#122'><I><FONT style="font-size: 10pt">How may I obtain
    a separate set of voting materials?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">5
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#123'><I><FONT style="font-size: 10pt">Who will bear
    the cost of soliciting votes for the annual
    meeting?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">5
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#124'><I><FONT style="font-size: 10pt">Where can I find
    the voting results of the annual meeting?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">5
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#125'><I><FONT style="font-size: 10pt">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?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">5
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#126'><I><FONT style="font-size: 10pt">How may I
    communicate with Teekay&#146;s Board or the non-management
    directors on Teekay&#146;s Board?</FONT></I></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">6
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#127'><B><FONT style="font-size: 10pt">CORPORATE
    GOVERNANCE PRINCIPLES AND BOARD MATTERS</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">7
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#128'><FONT style="font-size: 10pt">Board
    Independence</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">7
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#129'><FONT style="font-size: 10pt">Board Structure and
    Committee Composition</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">7
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#130'><FONT style="font-size: 10pt">Consideration of
    Director Nominees</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">11
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#131'><FONT style="font-size: 10pt">Executive
    Sessions</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">12
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#132'><FONT style="font-size: 10pt">Communications with
    the Board</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">12
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#133'><B><FONT style="font-size: 10pt">DIRECTOR
    COMPENSATION</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">13
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#134'><B><FONT style="font-size: 10pt">PROPOSALS TO BE
    VOTED ON</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">14
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#135'><FONT style="font-size: 10pt">PROPOSAL NO.&#160;1
    &#151; ELECTION OF DIRECTORS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">14
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#136'><FONT style="font-size: 10pt">PROPOSAL NO.&#160;2
    &#151; APPROVAL OF AMENDMENT TO AMENDED AND RESTATED
    ARTICLES&#160;OF INCORPORATION</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">17
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#137'><FONT style="font-size: 10pt">PROPOSAL NO.&#160;3
    &#151; RATIFICATION OF INDEPENDENT AUDITORS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">18
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#138'><B><FONT style="font-size: 10pt">COMMON STOCK
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">19
    </FONT>
</TD>
<TD>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    i
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#139'><B><FONT style="font-size: 10pt">CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">20
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#140'><B><FONT style="font-size: 10pt">EXECUTIVE
    OFFICERS</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">21
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#141'><B><FONT style="font-size: 10pt">EXECUTIVE
    COMPENSATION</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#142'><FONT style="font-size: 10pt">Summary
    Compensation Table</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#143'><FONT style="font-size: 10pt">Option Grants In
    Fiscal 2006</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <A HREF='#144'><FONT style="font-size: 10pt">Aggregated Fiscal
    2006&#160;Year-End Options</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#145'><B><FONT style="font-size: 10pt">PRINCIPAL
    AUDITOR FEES AND SERVICES</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">24
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#146'><B><FONT style="font-size: 10pt">REPORT OF THE
    AUDIT COMMITTEE OF THE BOARD OF DIRECTORS</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">25
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -55pt; margin-left: 55pt">
    <A HREF='#147'><B><FONT style="font-size: 10pt">Exhibit A &#151;
    ARTICLES OF AMENDMENT TO AMENDED AND RESTATED ARTICLES OF
    INCORPORATION OF TEEKAY SHIPPING CORPORATION</FONT></B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">26
    </FONT>
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    ii
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TEEKAY
    SHIPPING CORPORATION</FONT></B>
</DIV>
<A name='101'>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTICE OF
    ANNUAL MEETING OF SHAREHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="18%"></TD>
    <TD width="1%"></TD>
    <TD width="81%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Time and Date</B> </TD>
    <TD></TD>
    <TD valign="top">
    Tuesday, May&#160;29, 2007, 9:00&#160;a.m. (London time)</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Place</B> </TD>
    <TD></TD>
    <TD valign="top">
    Private Suite&#160;3, Mayfair Radisson Edwardian Hotel, Stratton
    Street, London, England</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Items of Business</B> </TD>
    <TD></TD>
    <TD valign="top">
<DIV style="text-indent: -17pt; margin-left: 17pt">
    (1)&#160;To elect three directors to Teekay&#146;s Board of
    Directors for a term of three years.</DIV>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
<DIV style="text-indent: -17pt; margin-left: 17pt">
    (2)&#160;To approve an amendment to Teekay&#146;s Amended and
    Restated Articles of Incorporation changing Teekay&#146;s name
    to &#147;Teekay Corporation&#148;.</DIV>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
<DIV style="text-indent: -17pt; margin-left: 17pt">
    (3)&#160;To ratify the selection of Ernst&#160;&#38; Young LLP,
    Chartered Accountants, as Teekay&#146;s independent auditors for
    the fiscal year ending December&#160;31, 2007.</DIV>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
<DIV style="text-indent: -17pt; margin-left: 17pt">
    (4)&#160;To transact such other business as may properly come
    before the annual meeting or any adjournment or postponement of
    the meeting.</DIV>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&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 style="line-height: 6pt; font-size: 1pt"><TD>&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&#160;5, 2007.
    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 style="line-height: 6pt; font-size: 1pt"><TD>&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&#160;2 of this proxy statement and the
    instructions on the proxy or voting instruction card.</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By Order of the Board of Directors
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="o35737o3573704.gif" alt="-s- Arthur J. Bensler" >
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    ARTHUR J. BENSLER
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Secretary
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;10, 2007
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; 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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>April&#160;10, 2007.</I>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">QUESTIONS
    AND ANSWERS ABOUT THE PROXY MATERIALS AND THE ANNUAL
    MEETING</FONT></B>
</DIV>
</A>
<A name='103'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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 May&#160;29,
    2007. 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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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 Teekay&#146;s most
    highly-paid executive officers, and certain other information
    about Teekay.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

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

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B><I>Q: </I></B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B><I>How may I obtain Teekay&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    filed with the SEC?</I></B></TD>
</TR>

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Shareholders may request a free copy of our 2006 Annual Report
    on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    from:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Teekay
    Shipping Corporation</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Suite&#160;2000, Bentall 5</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>550 Burrard Street</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Vancouver, BC V6C 2K2</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Attention: Investor Relations</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Telephone:
    <FONT style="white-space: nowrap">(604)&#160;844-6654</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Email: investor.relations@teekay.com</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Teekay will also furnish any exhibit to the
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    if specifically requested. Copies of the 2006 Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

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

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The election of three directors to Teekay&#146;s Board for a
    term of three years,
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    An amendment to Teekay&#146;s Amended and Restated Articles of
    Incorporation to change Teekay&#146;s name to &#147;Teekay
    Corporation&#148;,&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The ratification of our independent auditors for the 2007 fiscal
    year.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will also consider any other business that properly comes
    before the annual meeting.
</DIV>
<A name='108'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    The Board recommends that you vote your shares &#147;FOR&#148;
    each of the nominees to the Board, &#147;FOR&#148; the approval
    of the amendment to Teekay&#146;s Amended and Restated Articles
    of Incorporation to change Teekay&#146;s name to &#147;Teekay
    Corporation&#148; and &#147;FOR&#148; the ratification of the
    independent auditors for the 2007 fiscal year.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Each share of Teekay common stock issued and outstanding as of
    the close of business on April&#160;5, 2007, 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
    72,832,000&#160;shares of common stock issued and outstanding.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    You may vote all shares owned by you as of the <I>record date
    </I>for the annual meeting, including (1)&#160;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)&#160;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; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='110'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <B><I>Shareholder of Record</I></B></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <B><I>Beneficial Owner</I></B></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    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 style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    You are entitled to attend the annual meeting only if you were a
    Teekay shareholder as of the close of business on April&#160;5,
    2007 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&#160;a.m., London time.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    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; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='114'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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)&#160;as necessary
    to meet applicable legal requirements, (2)&#160;to allow for the
    tabulation of votes and certification of the vote and
    (3)&#160;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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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 May&#160;31, 2006
    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
    approval of the amendment to Teekay&#146;s Amended and Restated
    Articles of Incorporation and the ratification of the selection
    of Ernst&#160;&#38; Young LLP, Chartered Accountants, as
    Teekay&#146;s independent auditors for the 2007 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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    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; approval of the amendment to Teekay&#146;s
    Amended and Restated Articles of Incorporation, &#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 style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='118'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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 proposals require 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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    No.&#160;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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Other than the three 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. 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 are 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 Board.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    If you share an address with another shareholder, you may
    receive only one set of proxy materials (including our annual
    report to shareholders, our 2006 Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    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 style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Teekay
    Shipping Corporation</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Suite&#160;2000, Bentall 5</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>550 Burrard Street</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Vancouver, BC V6C 2K2</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Attention: Investor Relations</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Telephone:
    <FONT style="white-space: nowrap">(604)&#160;844-6654</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Email: investor.relations@teekay.com</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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.
</DIV>
<A name='123'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

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

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    We intend to announce preliminary voting results at the annual
    meeting and publish final results in our report on
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    for the second quarter of fiscal 2007.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B><I>Q: </I></B></TD>
    <TD></TD>
    <TD valign="bottom">
    <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 directors?</I></B></TD>
</TR>

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <B><I>Shareholder Proposals</I></B></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    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&#160;31, 2007. If the date of next year&#146;s annual
    meeting is moved more than 30&#160;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 bylaws provisions regarding
    business to be brought before a shareholder meeting. Proposals
    should be sent by mail or facsimile addressed to:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Secretary</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Teekay Shipping Corporation</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Suite&#160;2000, Bentall 5</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>550 Burrard Street</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Vancouver, BC V6C 2K2</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Facsimile:
    <FONT style="white-space: nowrap">(604)&#160;609-6447</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    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&#160;days or more than 90&#160;days
    prior to the meeting date.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <B><I>Nomination of Director Candidates</I></B></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <B><I>Copy of Bylaws Provisions</I></B></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    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>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B><I>Q: </I></B></TD>
    <TD></TD>
    <TD valign="bottom">
    <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>

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

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    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 style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Teekay
    Shipping Corporation<BR>
    Bayside House, Bayside Executive Park<BR>
    West Bay Street&#160;&#38; Blake Road<BR>
    P.O. Box&#160;AP-59212<BR>
    Nassau, The Bahamas<BR>
    Attention: Chairman<BR>
    <BR>
    Facsimile:
    <FONT style="white-space: nowrap">(242)&#160;502-8840</FONT></FONT></B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='127'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CORPORATE
    GOVERNANCE PRINCIPLES AND BOARD MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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>
<A name='128'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board
    Independence</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board has determined that each of our directors, other than
    Bjorn Moller, our President and Chief Executive Officer, 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. In making this
    determination, the Board considered the relationships of 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. Each of the current directors standing for
    re-election at the annual meeting is an independent director.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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>
<A name='129'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board
    Structure and Committee Composition</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the date of this proxy statement, the Board has nine
    directors and the following three committees: (1)&#160;Audit,
    (2)&#160;Compensation and Human Resources, and
    (3)&#160;Nominating and Governance. The function of each of the
    committees is described later in this section. 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 2006,
    the Board held seven meetings. Each director attended all Board
    meetings, except for one Board meeting at which one director was
    absent. Each director attended all applicable committee
    meetings. The membership of each of the committees for fiscal
    2006, and as of the date of this proxy statement, and the number
    of meetings of each committee held in fiscal 2006 are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Nominating and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Director</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Audit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Human Resources</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Governance</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I><FONT style="font-size: 10pt">Non-Employee
    Directors:</FONT></I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Ian D. Blackburne
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">James R. Clark
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">C. Sean Day
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Peter S. Janson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Axel Karlshoej
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Thomas Kuo-Yuen Hsu
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Eileen A. Mercier
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Tore I. Sandvold
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    X
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I><FONT style="font-size: 10pt">Employee
    Directors:</FONT></I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Bjorn Moller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Number of Meetings in Fiscal
    2006</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=528 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    X&#160;</TD>
    <TD align="left">
    = Committee member
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    *&#160;</TD>
    <TD align="left">
    = Chair
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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&#160;A. Mercier
    qualifies as an audit committee financial expert.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee assists the Board in fulfilling its
    responsibilities for general oversight of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the integrity of Teekay&#146;s financial statements;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Teekay&#146;s compliance with legal and regulatory requirements;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the independent auditors&#146; qualifications and
    independence;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the performance of Teekay&#146;s internal audit function and
    independent auditors.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 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; 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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The report of the Audit Committee is included on page&#160;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 style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    and Human Resources Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Teekay&#146;s executive compensation program is administered by
    the Compensation and Human Resources Committee of the Board of
    Directors (or the <I>Compensation Committee</I>). The
    Compensation 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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</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 style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</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 style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviews and makes recommendations to the Board regarding
    compensation for directors;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    establishes and administers long-term incentive compensation and
    equity-based plans;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    oversees Teekay&#146;s other compensation plans, policies and
    programs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Specific duties of the Compensation Committee include, among
    others: developing an executive compensation philosophy and
    annually reviewing executive compensation programs and
    practices; approving special employment, severance,
    <FONT style="white-space: nowrap">change-in-control</FONT>
    and retirement agreements or arrangements for executive
    officers; monitoring director and executive stock ownership; and
    annually evaluating the Compensation Committee&#146;s
    performance and its charter. The Compensation Committee has the
    authority to retain compensation consultants and experts in
    fulfilling its duties and to compensate these advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee&#146;s charter is available under
    &#147;Corporate Governance&#148; in the Investor Centre section
    of Teekay&#146;s website at <U>www.teekay.com</U>.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
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<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee met three times during fiscal 2006.
    The Compensation Committee has retained the services of an
    external executive compensation consultant, Hewitt Associates.
    The consultant assists the Compensation Committee in its review
    of executive compensation, including assessing the
    competitiveness of pay levels, executive compensation design
    issues, market trends, and technical considerations. The nature
    and scope of services rendered by Hewitt Associates on the
    Compensation Committee&#146;s behalf is described below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Providing competitive market pay analyses and market trend
    information relevant to executive and Board compensation;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Advising as to recent relevant regulatory, technical, and
    accounting considerations impacting executive compensation and
    executive benefit programs;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Assisting with the design or redesign of any executive
    compensation or executive benefit programs, if
    requested;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Preparing for and attending selected management and Compensation
    Committee meetings.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee did not direct Hewitt Associates to
    perform the above services in any particular manner or under any
    particular method. The Compensation Committee has the final
    authority to hire and terminate the consultant, and the
    Compensation Committee evaluates the consultant periodically.
    The Compensation Committee approves all invoices for executive
    compensation work performed by the consultant. The consultant
    may perform other services for Teekay.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Report on Executive Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee has furnished the following report on
    executive compensation for fiscal 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Executive Compensation Philosophy.</I>&#160;&#160;Employees
    are the key to Teekay&#146;s success. The goals of Teekay&#146;s
    compensation programs are to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    balance Teekay&#146;s need to attract and retain key talent as
    it becomes an increasingly visible, global corporation against
    the need for compensation that is weighted towards pay for
    performance;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    support the achievement of Teekay&#146;s business strategies and
    the enhancement of shareholder value;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    encourage Teekay&#146;s executives to work together as &#147;One
    Teekay&#148; over the longer-term and to accept direct
    responsibility for their individual business goals.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Executive Compensation Program and
    Practices.</I>&#160;&#160;There are five main program elements:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Base salary, which acknowledges the market value of the
    particular executive role, internal pay equity, and each
    individual executive&#146;s ability to sustain performance;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Annual incentive, which communicates critical corporate success
    factors, links all executives to the results of Teekay, reflects
    individual performance for the year, and motivates executives to
    achieve higher levels of success with an &#145;uncapped&#146;
    formula;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Pensions, benefits, and perquisites, which are provided at
    competitive levels to attract and retain key talent;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Long-term Incentive Plan, which focuses on the returns realized
    by the shareholders, acknowledges and assists in retaining those
    executives who can influence the long-term performance of Teekay
    by rewarding them for delivering corporate results. The
    Long-Term Incentive Plan provides a balance against short-term
    decisions and encourages a longer time horizon for
    decisions;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Vision Incentive Plan (or <I>VIP</I>), which rewards exceptional
    corporate performance and shareholder return in the successful
    transformation of Teekay (to be assessed until the end of 2010);
    the VIP is a discrete plan that expires after 2010 and is not a
    permanent element of Teekay&#146;s Executive Compensation
    Program.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The
    <FONT style="white-space: nowrap">pay-for-performance</FONT>
    elements of Teekay&#146;s Executive Compensation Program
    (excluding the VIP) are expected to be greater than 50% of total
    compensation, and longer-term incentive compensation should
    provide greater opportunity for reward than annual cash
    compensation at target.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee believes that there is not a strong
    comparator group for Teekay due to its unique business mix of
    spot revenues and longer-term fixed rate contract revenues.
    Therefore, total executive compensation (excluding the VIP) is
    targeted against a blended comparator group calculated using the
    average of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    executive compensation of publicly-traded U.S.&#160;oil and gas
    corporations with revenues of $1&#160;billion to
    $10&#160;billion;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    executive compensation of publicly-traded Canadian oil and gas
    corporations with revenues of $2&#160;billion to
    $11&#160;billion.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As some of these oil and gas comparator corporations have
    greater revenues than Teekay, targets are set up to the median
    total compensation of the blended comparator group. The decision
    to target up to the median, as opposed to at the median or
    higher, provides room for increasing Teekay&#146;s executive
    compensation as Teekay grows. In addition, a group of
    U.S.&#160;marine transportation companies is used as a secondary
    reference as these companies are considered competitors for
    talent, especially at the executive level.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Executive
    Compensation for 2006</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Base Salary.</I>&#160;&#160;Base salary is targeted up to the
    median of the comparator group and is determined by individual
    performance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Annual Incentive Plan.</I>&#160;&#160;Teekay&#146;s annual
    short term incentive program for executives is linked to both
    company performance and individual performance. In 2006,
    two-thirds of the annual incentive award was based on
    Teekay&#146;s corporate performance and one-third was based on
    each executive&#146;s individual performance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Teekay&#146;s corporate performance was measured using the
    following financial measures:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    return on invested capital for its spot tanker segment relative
    to its spot tanker peer group;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    return on invested capital for each of its segments relative to
    their weighted-average cost of capital;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    total shareholder return relative to Teekay&#146;s peer group.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2006, Teekay&#146;s spot tanker segment generated the highest
    return on invested capital compared to the companies in its spot
    tanker peer group. In addition, each of Teekay&#146;s segments
    generated returns in excess of their weighted-average cost of
    capital, thereby generating economic value for Teekay&#146;s
    shareholders. Due to Teekay&#146;s strategy of growing its
    long-term fixed rate business to create sustainable earnings
    throughout the shipping cycles, Teekay had relatively less
    exposure to the strong spot market in 2006. This resulted in a
    relatively lower total shareholder return for Teekay in 2006
    compared to its peer group, which is more heavily focused on the
    spot tanker market. However, overall, 2006 was a strong
    financial year for Teekay.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Long-term Incentive Programs.</I>&#160;&#160;For 2006,
    Teekay&#146;s 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, Teekay also grants shares of restricted
    stock or restricted stock units to reward exceptional
    performance and encourage retention.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2005, Teekay adopted the VIP 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 senior management based on two measures:
    (a)&#160;economic profit from 2005 to 2010; and (b)&#160;the
    increase in market value added <I>(MVA) </I>from 2001 to 2010.
    The VIP terminates on December&#160;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 MVA contribution will be made to the VIP award
    pool if two threshold requirements are met: (a)&#160;shares of
    Teekay&#146;s common stock must have a market value at that time
    equal to at least 120% of Teekay&#146;s book value per share;
    and (b)&#160;Teekay&#146;s total shareholder return (or
    <I>TSR</I>) for the period from the beginning of 2001 to the end
    of 2010 must be above the
    25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;percentile
    relative to the TSR of the S&#38;P 500 (as calculated in
    accordance with U.S.&#160;securities regulations) during the
    same period. If both of the threshold requirements are met, then
    a MVA contribution will be made to the award pool. The amount of
    this MVA contribution will range from a low of 1.5% of
    Teekay&#146;s increase in MVA, for TSR performance between the
    25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;and
    50<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;percentiles
    relative to the S&#38;P 500, to a maximum of 6% of Teekay&#146;s
    increase in MVA, for TSR performance above the
    90<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;percentile
    relative to the S&#38;P 500; the increase in Teekay&#146;s MVA
    being calculated for the period from the beginning of 2001 to
    the end of 2010.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Individual awards relating to increases in MVA are capped at ten
    times the individual&#146;s annual base salary and target annual
    incentive award.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008, if the VIP&#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 VIP award pool will be
    distributed to the participants. Fifty 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 years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Executive Share Ownership Guidelines.</I>&#160;&#160;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 times base salary for the Chief
    Executive Officer, two times base salary for Presidents and
    Executive Vice Presidents, and one times base salary for Senior
    Vice Presidents. The guidelines should be achieved by March 2010
    or, for executives subsequently joining Teekay or achieving a
    position covered by the guidelines, within five years after the
    guidelines become applicable to them.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Nominating
    and Governance Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Nominating and Governance Committee:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    identifies individuals qualified to become Board members;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    selects and recommends to the Board director and committee
    member candidates;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</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 style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    oversees the evaluation of the Board and its committees.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 other
    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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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>
<A name='130'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consideration
    of Director Nominees</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Shareholder
    Nominees</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Secretary<BR>
    Teekay Shipping Corporation<BR>
    Suite&#160;2000, Bentall 5<BR>
    550 Burrard Street<BR>
    Vancouver, BC V6C 2K2</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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&#160;&#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&#160;5.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Director
    Qualifications</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Identifying
    and Evaluating Nominees for Directors</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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. 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>
<A name='131'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Executive
    Sessions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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>
<A name='132'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Communications
    with the Board</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Individuals may communicate with the Board by writing to
    Teekay&#146;s Board by mail or fax addressed to:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Teekay
    Shipping Corporation<BR>
    Bayside House, Bayside Executive Park<BR>
    West Bay Street&#160;&#38; Blake Road<BR>
    P.O. Box&#160;AP-59212<BR>
    Nassau, The Bahamas<BR>
    Attention: Chairman</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Facsimile:
    <FONT style="white-space: nowrap">(242)&#160;502-8840</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='132'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DIRECTOR
    COMPENSATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides information on Teekay&#146;s
    compensation and reimbursement practices during fiscal 2006 for
    non-employee directors, as well as the range of compensation
    paid to non-employee directors who served during fiscal 2006.
    Teekay&#146;s employee directors do not receive any separate
    compensation for their Board activities.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NON-EMPLOYEE
    DIRECTOR COMPENSATION TABLE</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>FOR FISCAL 2006</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="80%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="18%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Annual cash retainer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">$&#160;50,000
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Additional cash retainer for:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">&#149;&#160;Chair of the Board
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">$&#160;228,000
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">&#149;&#160;Chair of the Audit
    Committee
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">$&#160;16,000
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">&#149;&#160;Member of Audit
    Committee
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">$&#160;&#160;8,000
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">&#149;&#160;Member of Compensation
    and Human Resources Committee
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">$&#160;&#160;5,000
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">&#149;&#160;Member of Nominating
    and Governance Committee
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">$&#160;5,000
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Annual retainer paid in Teekay
    securities (1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">$&#160;70,000
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Additional retainer paid in Teekay
    securities to Chair of the Board (1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">$319,000
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Reimbursement for expenses
    attendant to Board membership
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">Yes
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Range of total compensation earned
    by directors (for the year)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">$125,000 to $667,000
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=528 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">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 2006, certain of the directors elected to
    receive this annual retainer in the form of stock options to
    purchase an aggregate of 13,800&#160;shares of our common stock
    at an exercise price of $38.94&#160;per share. These options
    expire March&#160;7, 2016, ten years after the date of their
    grant, and vest as to 1/3 of the shares on each of the first
    three anniversaries of their grant date. The other directors
    elected to receive this annual retainer in the form of
    20,090&#160;shares of restricted stock (18,990&#160;shares of
    restricted stock on March&#160;7, 2006 and 1,100&#160;shares of
    restricted stock on June&#160;1, 2006), which also vest with
    respect to 1/3 of the shares on each of the first three
    anniversaries of their respective grant dates.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each director is expected to acquire shares having a value of at
    least four times the value of the annual cash retainer paid to
    them for their Board service (excluding fees for Chair or
    Committee service) no later than May&#160;14, 2008 or the fifth
    anniversary of the date on which the director joined the Board,
    whichever is later.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As at December&#160;31, 2006, the non-employee directors held
    stock options to purchase a total of 478,090&#160;shares of
    Teekay&#146;s common stock at exercise prices ranging from
    $8.4375 to $47.13&#160;per share and with expiration dates
    between June&#160;13, 2008 and March&#160;7, 2016, ten years
    after each option&#146;s respective grant date.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSALS&#160;TO
    BE VOTED ON<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;NO.&#160;1<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ELECTION
    OF DIRECTORS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Teekay&#146;s Board of Directors currently consists of nine
    directors divided into three classes: Class&#160;I,
    Class&#160;II and Class&#160;III. The number of directors in
    each class is required to be as nearly equal as possible. At the
    2007 annual meeting, three Class&#160;II directors will be
    elected to serve for three-year terms until the 2010 annual
    meeting and until their successors are elected. The remaining
    six directors are divided into two classes of three
    Class&#160;III directors and three Class&#160;I directors, whose
    terms expire in 2008 and 2009, respectively. Votes may not be
    cast for a greater number of director nominees than three.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>The Board recommends a vote&#160;FOR the election to the
    Board of the each of the following nominees.</I></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    ABOUT THE DIRECTOR NOMINEES</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Class&#160;II
    Directors (terms would expire in 2010)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="31%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="67%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">Peter S. Janson<BR>
    </FONT></B><FONT style="font-size: 10pt">Director since 2005
    Age&#160;59
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Mr. Janson was appointed as a
    director in July 2005. From 1999 to 2002, Mr.&#160;Janson was
    the Chief Executive Officer of Amec Inc. (formerly Agra Inc.), a
    publicly traded engineering and construction company. Prior to
    joining Amec Inc., he served as the President and Chief
    Executive Officer of Canadian operations for Asea Brown Boveri
    Inc. from 1986 to 1994, and as its Chief Executive Officer of
    U.S.&#160;Operations from 1996 to 1999. Mr.&#160;Janson has also
    served as a member of the Business Round Table in the United
    States, and as a member of the National Advisory Board on
    Science and Technology in Canada. He is also a director of Terra
    Industries Inc., Tembec Inc. and ATS Automation Tooling Systems
    Inc.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">Eileen A. Mercier<BR>
    </FONT></B><FONT style="font-size: 10pt">Director since 2000<BR>
    Age&#160;59
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Ms. Mercier has over 34&#160;years
    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 to 2003. She currently serves as Chairman of
    the Ontario Teachers&#146; Pension Plan, director for ING Bank
    of Canada, York University and the University Health Network,
    and as a director and audit committee member for CGI Group Inc.,
    ING Canada Inc. and Shermag Inc.
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="31%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="67%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">Tore I. Sandvold<BR>
    </FONT></B><FONT style="font-size: 10pt">Director since 2003 <BR>
    Age&#160;59
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Mr. Sandvold has over
    30&#160;years&#146; experience in the oil and energy industry.
    From 1973 to 1987 he served in the Norwegian Ministry of
    Industry, Oil&#160;&#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,&#160;D.C. From 1990 to 2001
    Mr.&#160;Sandvold served as Director General of the Norwegian
    Ministry of Oil&#160;&#38; Energy, with overall responsibility
    for Norway&#146;s national and international oil and gas policy.
    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.&#160;Sandvold, through his company, Sandvold
    Energy AS, has acted as advisor to companies and advisory bodies
    in the energy industry. Mr.&#160;Sandvold serves on other
    boards, including those of Schlumberger Limited., E. on Ruhrgas
    Norge AS, Lambert Energy Advisory Ltd., University of Stavanger,
    Offshore Northern Seas, and the Energy Policy Foundation of
    Norway.
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    ABOUT DIRECTORS CONTINUING IN OFFICE</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Class&#160;III
    Directors (terms expire in 2008)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="31%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="67%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">Thomas Kuo-Yuen
    Hsu</FONT></B><FONT style="font-size: 10pt"> <BR>
    Director since 1993<BR>
    Age&#160;60
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Mr. Kuo-Yuen Hsu is a director of,
    CNC Industries, an affiliate of the Expedo Group of Companies
    that manages a fleet of seven vessels ranging in size from
    30,000 dead weight tones <I>(dwt)</I> to 70,000 dwt. He has been
    a Committee Director of the Britannia Steam Ship Insurance
    Association Limited since 1988. Please read &#145;&#145;Certain
    Relationships and Related Transactions.&#148;
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">Axel Karlshoej<BR>
    </FONT></B><FONT style="font-size: 10pt">Director since 1989 <BR>
    Age&#160;66
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Mr. Karlshoej was Chair of the
    Teekay Board from June 1994 to September 1999, and has been
    Chair Emeritus since stepping down as Chair. Mr.&#160;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&#160;years. He is the older brother
    of the late J. Torben Karlshoej, Teekay&#146;s founder. Please
    read &#145;&#145;Certain Relationships and Related
    Transactions.&#148;
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">Bjorn Moller<BR>
    </FONT></B><FONT style="font-size: 10pt">Director since April
    1998 <BR>
    Age&#160;49
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Mr. Moller became Teekay&#146;s
    President and Chief Executive Officer in April 1998.
    Mr.&#160;Moller has served as Vice Chair and a Director of
    Teekay GP L.L.C., a wholly owned subsidiary of Teekay and the
    general partner of Teekay LNG Partners L.P., a publicly traded
    entity controlled by Teekay, since Teekay GP L.L.C. was formed
    in November 2004. As well, he has served as Vice Chair and a
    Director of Teekay Offshore GP L.L.C., a wholly owned subsidiary
    of Teekay and the general partner of Teekay Offshore Partners
    L.P., a publicly traded entity controlled by Teekay, since
    Teekay Offshore GP L.L.C. was formed in August 2006. Mr. Moller
    has over 25&#160;years&#146; experience in the shipping industry
    and in December 2006 he was appointed Chairman of the
    International Tanker Owners Pollution Federation. He has served
    in senior management positions with Teekay for more than
    15&#160;years and has headed Teekay&#146;s overall operations
    since January 1997, following his promotion to the position of
    Chief Operating Officer. Prior to this, Mr.&#160;Moller headed
    Teekay&#146;s global chartering operations and business
    development activities.
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Class&#160;I
    Directors (terms expire in 2009)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="31%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="67%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">Dr.&#160;Ian D.
    Blackburne</FONT></B><FONT style="font-size: 10pt"> <BR>
    Director since 2000<BR>
    Age&#160;61
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Dr. Blackburne has over
    25&#160;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 Symbion Health
    Limited, Australian public companies in the diversified
    industrial and financial sectors. Dr.&#160;Blackburne was also
    previously the Chairman of the Australian Nuclear Science and
    Technology Organization.
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="31%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="67%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">J. Rod Clark<BR>
    </FONT></B><FONT style="font-size: 10pt">Director since 2006<BR>
    Age&#160;56
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Mr. Clark has been President and
    Chief Operating Officer of Baker Hughes Incorporated since
    February 2004, prior to which he was Vice President, Marketing
    and Technology from 2003 to 2004 having joined Baker Hughes
    Incorporated in 2001 as Vice President and President of Baker
    Petrolite Corporation. Mr.&#160;Clark was President and Chief
    Executive Officer of Consolidated Equipment Companies, Inc. from
    2000 to 2001 and President of Sperry-Sun, a Halliburton company,
    from 1996 to 1999. He has also held financial, operational and
    leadership positions with FMC Corporation, Schlumberger Limited
    and Grace Energy Corporation.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B><FONT style="font-size: 10pt">C. Sean Day<BR>
    </FONT></B><FONT style="font-size: 10pt">Director since 1998<BR>
    Age&#160;57
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Mr. Day has served as Chair of the
    Board of Teekay Shipping Corporation since September 1999.
    Mr.&#160;Day has also served as Chairman of Teekay GP L.L.C.,
    the general partner of Teekay LNG Partners L.P., since it was
    formed in November 2004, and as Chairman of Teekay Offshore GP
    L.L.C., the general partner of Teekay Offshore Partners L.P.,
    since it was formed in August 2006. 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.&#160;Day held a number of senior management
    positions in the shipping and financing industry. He is
    currently serving as a director of Kirby Corporation and
    Chairman of Compass Diversified Trust.
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;NO.&#160;2<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPROVAL
    OF AMENDMENT TO AMENDED AND RESTATED ARTICLES&#160;OF
    INCORPORATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors has determined that an amendment to
    Teekay&#146;s Amended and Restated Articles of Incorporation, to
    change the company&#146;s name to &#147;Teekay
    Corporation&#148;, is advisable and has voted unanimously that
    the proposed amendment be put before Teekay&#146;s shareholders
    for approval at the annual meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since its inception, Teekay has focused primarily on shipping
    crude oil on owned and in-chartered vessels for its customers.
    In recent years, Teekay has been systematically expanding its
    service offerings and integrating into its customers&#146;
    energy chain, transforming Teekay into the &#147;Marine
    Midstream Company&#148;. With Teekay&#146;s recent entry into
    the floating production, storage and offloading <I>(FPSO)</I>
    market through its acquisition of a majority stake in Petrojarl
    ASA, Teekay has moved further up the energy chain and is now a
    producer, not just a shipper of oil. Teekay is now servicing its
    customers&#146; energy production and transportation needs from
    the wellhead to the refinery, and intends to grow by focusing on
    becoming a project management organization. Management and the
    Board believe that now is the appropriate time to change
    Teekay&#146;s name to &#147;Teekay Corporation&#148; to reflect
    this transformation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board recommends a vote&#160;FOR the approval of the
    Amendment to Teekay&#146;s Amended and Restated Articles of
    Incorporation in the form attached as Exhibit&#160;A to this
    Proxy Statement.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Vote
    Required</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Approval of the Amendment to Teekay&#146;s Amended and Restated
    Articles of Incorporation to change the Teekay&#146;s name to
    &#147;Teekay Corporation&#148; requires the affirmative vote of
    the 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; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;NO.&#160;3<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RATIFICATION
    OF INDEPENDENT AUDITORS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee of the Board has appointed Ernst&#160;&#38;
    Young LLP, Chartered Accountants, to examine the financial
    statements of Teekay for the fiscal year ending
    December&#160;31, 2007. Ernst&#160;&#38; Young LLP, Chartered
    Accountants, examined the financial statements of Teekay for the
    fiscal year ended December&#160;31, 2006 and also provided
    certain tax and other audit-related services during fiscal 2006.
    Please see &#147;Principal Auditor Fees and Services&#148; on
    page&#160;24.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board recommends a vote&#160;FOR the ratification of the
    selection of Ernst&#160;&#38; Young LLP, Chartered Accountants,
    as Teekay&#146;s independent auditors for fiscal
    2007.</B>&#160;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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Vote Required</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ratification of the appointment of Ernst&#160;&#38; Young LLP,
    Chartered Accountants, as Teekay&#146;s independent auditors for
    fiscal 2007 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; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMMON
    STOCK OWNERSHIP OF CERTAIN<BR>
    BENEFICIAL OWNERS AND MANAGEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information regarding beneficial
    ownership, as of April&#160;10, 2007 (except as otherwise
    noted), of Teekay common stock by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each person or entity known by Teekay to beneficially own more
    than 5% of Teekay&#146;s common stock;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all current Teekay directors and executive officers as a group.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information provided in the table is based on information
    filed with the SEC and information provided to Teekay.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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&#160;10, 2007
    (60&#160;days after April&#160;10, 2007)&#160;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 style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Beneficial
    Ownership Table</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Amount of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent of <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<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="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Beneficially Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Resolute Investments, Inc.
    </FONT><FONT style="font-size: 8pt">(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,631,380
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    <I><FONT style="font-size: 10pt">Bayside House, Bayside
    Executive Park<BR>
    West Bay Street&#160;&#38; Blake Road <BR>
    P.O. Box&#160;AP-59214<BR>
    Nassau, The Bahamas</FONT></I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">FMR Corp., Edward C. Johnson
    3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP>,
    and Abigail P Johnson, as a group
    </FONT><FONT style="font-size: 8pt">(2)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,186,875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    <I><FONT style="font-size: 10pt">82 Devonshire Street<BR>
    Boston, Massachusetts 02109</FONT></I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Iridian Asset Management, LLC
    </FONT><FONT style="font-size: 8pt">(3)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,012,965
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    <I><FONT style="font-size: 10pt">276 Post Road West <BR>
    West Port, Connecticut
    <FONT style="white-space: nowrap">06880-4704</FONT></FONT></I><FONT style="font-size: 10pt">
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">All current directors and
    executive officers, as a group (17 persons)
    </FONT><FONT style="font-size: 8pt">(4)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,330,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=528 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">This information is based on the
    Schedule&#160;13D/A filed with the SEC on March&#160;31, 2006.
    Please read &#147;Certain Relationships and Related
    Transactions.&#148;
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes sole voting power as to
    92,000&#160;shares and sole dispositive power as to
    11,186,875&#160;shares. This information is based on the
    Schedule&#160;13G/A filed by this group with the SEC on
    February&#160;14, 2007.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes shared voting power and
    share dispositive power as to 8,012,965&#160;shares. This
    information is based on the Schedule&#160;13G filed by this
    investor with the SEC on February&#160;5, 2007.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 1,183,962&#160;shares of
    common stock subject to stock options exercisable by
    June&#160;10, 2007 (60&#160;days after April&#160;10,
    2007)&#160;and 14,986&#160;shares of restricted stock subject to
    vesting by June&#160;10, 2007. Excludes shares beneficially
    owned by Resolute Investments, Inc. Please see &#147;Certain
    Relationships and Related Transactions&#148;.
    </FONT></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='139'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As at December&#160;31, 2006, Resolute Investments, Inc. (or
    <I>Resolute</I>) owned 44.6% of Teekay&#146;s outstanding common
    stock. Two 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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='140'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXECUTIVE
    OFFICERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="56%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Age</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Position</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Moller, Bjorn*
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">49
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Director, President and Chief
    Executive Officer
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Bensler, Arthur
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">49
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">EVP, General Counsel and Secretary
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Chan, Bruce
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">34
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">SVP, Corporate Resources
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Evensen, Peter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">48
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">EVP and Chief&#160;Strategy Officer
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Glendinning, David
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">53
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">President, Teekay Gas and
    Offshore, a division of Teekay Shipping Corporation
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Hvid, Kenneth
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">38
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">President, Teekay Navion Shuttle
    Tankers, a division of Teekay Shipping Corporation
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Lok, Vincent
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">39
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">SVP and Chief Financial Officer
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Westgarth, Graham
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">52
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">President, Teekay Marine Services,
    a division of Teekay Shipping Corporation
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Wogan, Paul
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">45
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">President, Teekay Tanker Services,
    a division of Teekay Shipping Corporation
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=528 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT style="font-size: 8pt">*&#160;
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">For information regarding
    Mr.&#160;Moller, please see &#147;Proposal&#160;No.&#160;1:
    Election of Directors&#160;&#151; Information About Directors
    Continuing in Office&#148; above.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <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 and Executive Vice President in January 2006.
    Prior to joining Teekay, Mr.&#160;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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Bruce Chan </I></B>joined Teekay in September
    1995.&#160;&#160;Since then, in addition to spending a year in
    Teekay&#146;s London office, Mr.&#160;Chan has held a number of
    finance and accounting positions with the Company, including
    Vice President, Strategic Development from February 2004 until
    his promotion to the position of Senior Vice President,
    Corporate Resources in September 2005. Prior to joining Teekay,
    Mr.&#160;Chan worked as a Chartered Accountant in the Vancouver,
    Canada office of Ernst&#160;&#38; Young.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <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 and as Chief Strategy Officer in November 2006.
    Mr.&#160;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 L.L.C. since
    January 2005. Mr.&#160;Evensen has served as Chief Executive
    Officer, Chief Financial Officer and a Director of Teekay
    Offshore GP L.L.C. since it was formed in August 2006.
    Mr.&#160;Evensen has over 20&#160;years&#146; experience in
    banking and shipping finance. Prior to joining Teekay,
    Mr.&#160;Evensen was Managing Director and Head of Global
    Shipping at J.P.&#160;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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>David Glendinning </I></B>joined Teekay in January
    1987.&#160;&#160;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.&#160;Glendinning was appointed President of Teekay&#146;s
    Gas and Offshore division, and was responsible for our
    initiatives in the liquefied natural gas <I>(LNG)</I> business
    and other areas of gas activity, as well as building an
    international presence in the floating storage and offtake
    business and related offshore activities. In 2006, he was
    appointed President, Teekay Gas Services, to recognize
    Teekays&#146; growing presence in this area. Prior to joining
    Teekay, Mr.&#160;Glendinning, who is a Master Mariner, had
    18&#160;years&#146; sea service on oil tankers of various types
    and sizes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Kenneth Hvid </I></B>joined Teekay in October 2000 and was
    responsible for leading Teekay&#146;s global procurement
    activities until he was promoted in 2004 to Senior Vice
    President, Gas Services. During this time, Mr.&#160;Hvid was
    involved in leading Teekay through its entry and growth in the
    LNG business. He held this position until the beginning of 2006,
    when he was appointed President of Teekay&#146;s Navion Shuttle
    Tankers and Offshore division. In this role he is responsible
    for global shuttle tanker business as well as initiatives in the
    floating production, storage and offtake business and related
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    offshore activities. Mr.&#160;Hvid has 18&#160;years of global
    shipping experience, 12 of which were spent with A.P. Moller in
    Copenhagen, San&#160;Francisco and Hong Kong.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Vincent Lok </I></B>joined Teekay in June
    1993.&#160;&#160;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
    2002. He was appointed Senior Vice President and Treasurer in
    February 2004 and was promoted to Chief Financial Officer in
    November 2006. Prior to joining Teekay, Mr.&#160;Lok worked in
    the Vancouver, Canada audit practice of Deloitte&#160;&#38;
    Touche.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <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.&#160;Westgarth was appointed
    President of our Teekay&#146;s 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.&#160;Westgarth was General Manager of Maersk Company (UK),
    where he joined as Master in 1987. He has 35&#160;years of
    industry experience, which includes 18&#160;years of sea
    service, with five years in a command position.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <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.&#160;Wogan was appointed President of the
    Company&#146;s Teekay Tanker Services division, which is
    responsible for the commercial management of Teekay&#146;s
    conventional crude oil and product tanker transportation
    services. Prior to joining Teekay, Mr.&#160;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; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='141'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXECUTIVE
    COMPENSATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table discloses compensation earned during fiscal
    2006 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 2005 and 2004.
</DIV>
<A name='142'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Compensation Table
    </FONT></B><FONT style="font-family: 'Times New Roman', Times">(1)
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="35%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Annual Compensation</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Long-Term Compensation</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Restricted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underlying Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Salary</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bonus</B> (2)
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Awards</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    (#) (3)
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Compensation</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2006
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,216,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,023,255
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#150;0&#150;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    376,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    470,522<FONT style="font-size: 8pt">(4
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 8pt">)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2005
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,065,808
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,375,032
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#150;0&#150;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    155,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    561,847<FONT style="font-size: 8pt">(5
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 8pt">)
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2004
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,995,290
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,616,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,796,220<FONT style="font-size: 8pt">(6
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 8pt">)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    257,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,804,551<FONT style="font-size: 8pt">(7
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 8pt">)
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=528 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Cash amounts set forth in this
    table were paid primarily in Canadian Dollars, but are reported
    here in U.S.&#160;Dollars using an exchange rate of 1.17
    Canadian Dollars for each U.S.&#160;Dollar for 2006; 1.16
    Canadian Dollars for each U.S.&#160;Dollar for 2005; 1.20
    Canadian Dollars for each U.S.&#160;Dollar for 2004.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Bonus payments relate to the
    performance of the individual and Teekay in the given year.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">These numbers have been revised to
    reflect the May 2004 stock split.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Consists of $406,439 for the
    payment of employer contributions to pension plans, and $64,083
    for the payment of life insurance premiums. In addition, Teekay
    paid for parking, financial and tax planning services, annual
    medical checkups and other fitness-related benefits for the
    named executive officers, which in the aggregate amounted to
    less than $40,000.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Consists of $517,783 for the
    payment of employer contributions to pension plans, and $44,064
    for the payment of life insurance premiums. In addition, Teekay
    paid for parking, tax planning services and annual medical
    checkups for the named executive officers, which in the
    aggregate amounted to approximately $30,000.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Consists of $521,000 in value of
    restricted stock units that vested fully on December&#160;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&#160;31, 2006, March&#160;31, 2007 and November&#160;30,
    2007. The named executive officers hold a total of
    74,800&#160;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 grantee.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(7)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">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, Teekay paid for parking, tax planning
    services and annual medical checkups for the named executive
    officers, which in the aggregate amounted to less than $30,000.
    </FONT></TD>
</TR>

</TABLE>
<A name='143'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Option
    Grants In Fiscal 2006</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides information regarding aggregate
    option grants in fiscal 2006 by Teekay to the named executive
    officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="26%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Percent of Total <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Options Granted to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Underlying Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Employees in <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Exercise Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Granted</B> (1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal Year </B>(2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($/Share)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Expiration Date</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">376,800
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">36%
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">$38.94
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">March&#160;7, 2016
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=528 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">All options granted in fiscal 2006
    are exercisable in equal one-third amounts after each of the
    first three anniversaries of the grant.
    </FONT></TD>
</TR>

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

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">In fiscal 2006, Teekay granted
    options to employees and directors to purchase an aggregate of
    1,045,200&#160;shares of common stock.
    </FONT></TD>
</TR>

</TABLE>
<A name='144'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aggregated
    Fiscal 2006&#160;Year-End Options</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides information on the aggregate named
    executive officers&#146; unexercised options at
    December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="45%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of Securities Underlying Unexercised Options at<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Fiscal Year-End</B>
</DIV>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Exercisable</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Unexercisable</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">629,037
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">548,930
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='145'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRINCIPAL
    AUDITOR FEES AND SERVICES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee has appointed Ernst&#160;&#38; Young LLP,
    Chartered Accountants, as Teekay&#146;s independent auditors for
    fiscal 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Fees
    Incurred by Teekay for Ernst&#160;&#38; Young LLP
    Services</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows the fees billed for audit and other
    services provided by Ernst&#160;&#38; Young LLP, Chartered
    Accountants, for fiscal 2006 and 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Fees</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Audit Fees
    </FONT><FONT style="font-size: 8pt">(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,561,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,353,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Audit-Related Fees
    </FONT><FONT style="font-size: 8pt">(2)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128,781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Tax Fees
    </FONT><FONT style="font-size: 8pt">(3)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    226,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    242,509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">All Other Fees
    </FONT><FONT style="font-size: 8pt">(4)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Total
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,891,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,727,007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=528 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">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. Audit fees for 2006 and 2005 include
    $334,400 and $293,225, respectively, of fees paid to
    Ernst&#160;&#38; Young LLP by Teekay LNG Partners L.P. <I>(or
    Teekay LNG)</I>, a publicly traded entity controlled by Teekay,
    that were approved by the Audit Committee of the Board of
    Directors of Teekay LNG. Audit fees for 2006 include
    approximately $575,400 of fees paid to Ernst&#160;&#38; Young by
    our subsidiary, Teekay Offshore Partners L.P. <I>(Teekay
    Offshore) </I>that were approved by the Audit Committee of the
    Board of Directors of Teekay Offshore.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Audit related fees consisted
    primarily of accounting consultations, employee benefit plan
    audits, services related to business acquisitions, divestitures
    and other attestation services.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">For 2006 and 2005, respectively,
    tax fees principally included international tax planning fees of
    $14,700 and $2,100, corporate tax compliance fees of $90,200 and
    $52,600 and personal and expatriate tax services fees of
    $121,600 and $157,809.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">All other fees principally include
    subscription fees to an internet database of accounting
    information.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee has the authority to pre-approve permissible
    audit-related and non-audit services not prohibited by law 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 2006.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='146'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">REPORT OF
    THE AUDIT COMMITTEE OF<BR>
    THE BOARD OF DIRECTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee assists the Board in fulfilling its
    responsibilities for oversight of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the integrity of Teekay&#146;s financial statements;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Teekay&#146;s compliance with legal and regulatory requirements;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the independent auditors&#146; qualifications and
    independence;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the performance of Teekay&#146;s internal audit function and
    independent auditors.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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&#160;&#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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this context, the Audit Committee reports as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;The Audit Committee has reviewed and discussed the
    audited consolidated financial statements for fiscal 2006 with
    Teekay&#146;s management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;The Audit Committee has discussed with the independent
    auditors the matters required to be discussed by Statement of
    Auditing Standards No. 61, as amended or modified.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;The Audit Committee has received the letter and written
    disclosures from the independent auditors required by
    Independence Standards Board Standard No.&#160;1,
    <I>Independence Discussions with Audit Committees</I>, and has
    discussed the matter of independence with the independent
    auditors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Based on the review and discussions referred to in
    paragraphs&#160;(1)&#160;through (3)&#160;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
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for fiscal 2006, for filing with the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned members of the Audit Committee have submitted
    this Report to the Board of Directors.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Eileen A. Mercier, Chair
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Peter S. Janson
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    J. Rod Clark
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->
<A name='147'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit&#160;A</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLES&#160;OF
    AMENDMENT<BR>
    TO<BR>
    AMENDED AND RESTATED ARTICLES&#160;OF INCORPORATION<BR>
    OF<BR>
    TEEKAY SHIPPING CORPORATION<BR>
    <BR>
    PURSUANT TO SECTION&#160;86, 88(1) AND 90 OF THE MARSHALL
    ISLANDS<BR>
    BUSINESS CORPORATIONS ACT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    TEEKAY SHIPPING CORPORATION, a corporation domesticated in and
    existing under the law of the Republic of the Marshall Islands
    (the <B>&#147;Corporation&#148;</B>), hereby certifies as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The name of the Corporation is &#147;TEEKAY SHIPPING
    CORPORATION&#148;. The Corporation was originally incorporated
    under the law of the Republic of Liberia on February&#160;9,
    1979 under the name Viking Star Shipping Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Pursuant to Articles of Domestication dated
    December&#160;7, 1999, the Corporation domesticated in the
    Republic of the Marshall Islands on December&#160;20, 1999 on
    which date the Corporation&#146;s original Articles of
    Incorporation and all amendments thereto were filed in the
    Office of the Registrar of Corporations of the Republic of The
    Marshall Islands as an annex to the Articles of Domestication.
    Amended and Restated Articles of Incorporation (the
    <B>&#147;Amended and Restated Articles of
    Incorporation&#148;</B>) were filed with the Office of the
    Registrar of Corporations of the Republic of the Marshall
    Islands on June&#160;6, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;This amendment affects Section&#160;A of the Amended
    and Restated Articles of the Incorporation, which is hereby
    amended to change the name of the Corporation to &#147;TEEKAY
    CORPORATION&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;This Amendment to the Amended and Restated Articles of
    Incorporation was duly adopted in accordance with
    Section&#160;88(1) of the Marshall Islands Business Corporations
    Act (the <B>&#147;BCA&#148;</B>). On March&#160;12, 2007, the
    Board of Directors of the Corporation adopted resolutions in
    accordance with Section&#160;55(2) of the BCA setting forth and
    declaring advisable that this amendment to the Amended and
    Restated Articles of Incorporation be adopted by the
    shareholders of the Corporation. Pursuant to Section&#160;88(1)
    of the BCA, the shareholders of the Corporation authorized the
    adoption of this amendment to the Amended and Restated Articles
    of Incorporation by vote of the holders of a majority of all
    outstanding shares entitled to vote thereon at the Annual
    General Meeting of the shareholders on May&#160;29, 2007 and
    such authorization has been field with the minutes of the
    proceedings of shareholders of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    IN WITNESS WHEREOF, the Corporation has caused these Articles of
    Amendment to Amended and Restated Articles of Incorporation to
    be signed as of the&#160;&#160;&#160;&#160;&#160;day
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, by its Secretary, who hereby affirms and acknowledges,
    under penalty of perjury, that these Articles of Amendment to
    Amended and Restated Articles of Incorporation are the act and
    deed of the Corporation and that the facts stated herein are
    true.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 45%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    TEEKAY SHIPPING CORPORATION
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="45%"></TD>
    <TD width="2%"></TD>
    <TD width="53%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:
</TD>
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</TD>
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<DIV style="font-size: 2pt; margin-left: 47%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=528 length=0 -->

<DIV align="left" style="margin-left: 47%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;Arthur J. Bensler
</DIV>

<DIV align="left" style="margin-left: 47%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;Corporate Secretary
</DIV>

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    <BR>
    26
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