Related Party Transactions and Outside Related Director Information

Team, Inc. (TMI)

8/26/2005 Proxy Information

Mr. Williams and Mr. Laborde are brothers-in-law.

Director Sidney B. Williams is the sole shareholder of a professional corporation that is a partner in the law firm of Chamberlain, Hrdlicka, White, Williams and Martin of Houston, Texas, which rendered services to the Company during fiscal 2005. Fees to the law firm did not exceed five percent (5%) of that law firm’s gross revenue for its last full fiscal year.

The Company and E. Patrick Manuel are parties to lease agreements under which the Company leases an office and shop building in Lafayette, Louisiana from Mr. Manuel for rental of $54,000 per year, and a smaller office and shop building in Sulphur, Louisiana for rental of $18,600 per year.

The Company and Emmett J. Lescroart are parties to a Consulting Agreement effective July 30, 2004 under which Mr. Lescroart will provide assistance to Company officers in operating the Company’s heat treating business from time to time as requested by Company management for base fees of $900 per day. Additionally, Mr. Lescroart will be eligible for discretionary performance bonuses, as determined by the Board of Directors, and he will be eligible for the grant of stock options as determined by the Board of Directors.

The Company encourages all directors to attend all meetings of shareholders, but does not have a mandatory requirement for this. All directors were in attendance at the last shareholder meeting.

In August of 2005, the Company was served in a lawsuit styled Paulette Barker, as named Executor for the Estate of Robert Barker, et. al. v. Emmett J. Lescroart, Michael Urban, Team, Inc. et. al., Case Number 355868-402 in the Probate Court #1, Harris County, Texas. Mr. Lescroart is on the Board of Directors of the Company and may have an interest that conflicts with the Company related to the matter. Apparently, the dispute arises out of the sale by the late Mr. Barker to Mr. Lescroart of his stock in Thermal Solutions, Inc. Subsequently, in April of 2004, all of the outstanding stock of Thermal Solutions, Inc. was acquired by the Company allegedly for a much higher price than Mr. Lescroart paid Mr. Barker in July of 2003. The Company does not believe that it has any legal liability under the allegations of the suit and, further, believes it is protected under the terms of the Stock Purchase Agreement (to which Mr. Lescroart is a party) related to the Company’s acquisition. Additionally, the Company believes that the director and officer insurance carrier of Thermal Solutions, Inc. will defend the Company’s interest in the matter.