TEAM INC
RESTRICTED STOCK AWARD AGREEMENT
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>dex101.htm
<DESCRIPTION>RESTRICTED STOCK AWARD AGREEMENT
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<TITLE>Restricted Stock Award Agreement</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.1 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>RESTRICTED STOCK AWARD AGREEMENT </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">THIS RESTRICTED STOCK AWARD AGREEMENT (the &#147;Agreement&#148;) is entered into by and between Kenneth M. Tholan
(&#147;Tholan&#148;) and Team, Inc. (&#147;Company&#148;) effective September 23, 2004 (the &#147;Effective Date&#148;). </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Tholan is the president and a long time employee of the Company and has made critical contributions during the period of his employment toward
the Company&#146;s present success; and, </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Company
desires that Tholan continue as an employee of the Company at least through the fiscal year ending May 31, 2007 and Tholan has indicated that he presently intends to do so although neither Tholan nor the Company are under any legal obligation to the
other to continue such employment for any fixed period of time; </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">WHEREAS, the Company wishes to provide a special additional incentive for Tholan to assist the Company in attaining its financial performance goals during the next three fiscal years by awarding Tholan 15,000 restricted Shares of its common
stock pursuant to the Team, Inc. 2004 Restricted Stock Option and Award Plan. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">NOW, THEREFORE, in consideration of the above recitals and other good and valuable consideration, the receipt of which is acknowledged, the parties agree as follows: </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>1. Definitions</B>. For purposes of this Agreement the
following terms shall have the meanings set forth below: </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">1.1 &#147;Change of Control&#148; means the occurrence of any of the following: (i) Team, Inc. merges or consolidates with any other entity other than a merger or consolidation of Team, Inc. which would result in the
Voting Stock of Team, Inc. outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 70% of the total voting power represented by the
voting securities of Team, Inc. or such surviving entity immediately after, (ii) Team, Inc. sells all or substantially all of its assets to any other person or entity or group or persons acting in concert, or (iii) Team, Inc. is dissolved, or if
(iv) any third person or entity together with its affiliated or subsidiary entities shall become, directly or indirectly, the Beneficial Owner of at least 30% of the Voting Stock of Team, Inc. or if (v) the individuals who constituted the members of
Team, Inc.&#146;s Board of Directors as of the Effective Date (&#147;Incumbent Board&#148;) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director whose election or nomination or election by
Team&#146;s stockholders was approved by a vote of eighty percent (80%) of the directors comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of Team, Inc. in which such person is named as a nominee for
director, without objection to such nomination) shall be, for purposes of this clause (v), considered as though such person were a member of the Incumbent Board. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.2 &#147;Company&#148; means Team, Inc., a Texas corporation. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.3 &#147;Company&#146;s Auditor&#148; shall mean with respect to each Performance Year
the independent certified public accounting firm that shall be appointed to audit the Company&#146;s accounts for such Performance Year. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.4 &#147;EBIT&#148; means the consolidated earnings of the Company and its subsidiaries before provision for interest and taxes as
determined in accordance with GAAP by the Company&#146;s Auditor for each of the Performance Years. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.5 &#147;FY 05&#148; means the Company&#146;s fiscal year ending May 31, 2005. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.6 &#147;FY 06&#148; means the Company&#146;s fiscal year
ending May 31, 2006. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.7 &#147;FY 07&#148;
means the Company&#146;s fiscal year ending May 31, 2007. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">1.8 &#147;Performance Target&#148; means with respect to each Performance Year the following amount of EBIT subject however to the increases or decreases thereof from time to time as provided in Section 4 hereof:
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="61%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>FY05</B></FONT><BR><HR SIZE="1" NOSHADE COLOR="#000000"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>FY06</B></FONT><BR><HR SIZE="1" NOSHADE COLOR="#000000"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>FY07</B></FONT><BR><HR SIZE="1" NOSHADE COLOR="#000000"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">EBIT</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">13,411,000</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">23,000,000</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,300,000</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.9
&#147;Performance Year&#148; means each of the Company&#146;s Fiscal Years ending May 31, 2005, 2006 and 2007. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.10 &#147;Shares&#148; means the common shares, $0.30 par value, of Team, Inc. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.11 &#147;Tholan&#148; means Kenneth M. Tholan. </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.12 &#147;Vest&#148; means Tholan&#146;s ownership in
Shares becomes unqualified and absolute. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.13
&#147;Vested Shares&#148; means shares in which Tholan&#146;s ownership has become absolute. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.14 &#147;Vesting Date&#148; shall mean May 31 of each Performance Year provided that Tholan is employed by the Company as of such date.
Even though the actual number of Shares that vest will not be known with respect to any performance Year until the Company&#146;s Auditor completes their determination of EBIT with respect to such year, those Shares will nevertheless vest as of the
Vesting Date. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>2. Award of Restricted
Shares</B>. Pursuant to the authorization and approval of the Company&#146;s Board of Directors on September 23, 2004, Tholan is hereby awarded 15,000 Restricted Shares, subject to the terms and restrictions of the Agreement. Although the Shares
will be issued in Tholan&#146;s name, the Shares are subject to forfeiture as provided herein until the Shares become Vested. <B></B> </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>3. Vesting.</B> Subject to the condition that Tholan be employed by the Company, the
number of Shares that shall Vest in Tholan as of each such Vesting Date shall be determined by applying Section 3.1 below as to each current Performance Year and then by applying Section 3.2 below to make any potential adjustments to a prior
Performance Year. The total Vested Shares are the sum of the Primary Vesting under Section 3.1 and the adjusted shares after any catch-up in Section 3.2 below. <B></B> </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.1 Primary Vesting. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">For each Performance Year during which the Company has EBIT that is equal to or greater than 100% of the Performance Target for such Performance Year, 5,000 Shares shall Vest as of
May 31 of such year. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">For each Performance Year during which the Company has EBIT that is equal to or greater than 90% (but less than 100%) of the Performance Target for such Performance Year, 2,500
Shares shall Vest as of May 31 of such year. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(c)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">For each Performance Year during which the Company has EBIT that is equal to or greater than 80% (but less than 90%) of the Performance Target for such Performance Year, 1,250
Shares shall Vest as of May 31 of such year. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">3.2 Catch-up Vesting. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">if less than 5,000 Shares have Vested in Performance Year 2005 under Section 3.1 above, and (i) the sum of the EBIT for Performance Years 2005 and 2006 is at least equal to the sum
of the Performance Targets for those two years or (ii) the sum of the EBIT for Performance Years 2005, 2006 and 2007 is at least equal to the sum of the Performance Targets for those three years &#150; then the number of Vested Shares for
Performance Year 2005 shall be 5,000. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">if less than 5,000 Shares have Vested in Performance Year 2005 under Section 3.1 above, and (i) the sum of the EBIT for Performance Years 2005 and 2006 is less than 100% but equal
to or greater than 90% of the sum of the Performance Targets for those two years or (ii) the sum of the EBIT for Performance Years 2005, 2006 and 2007 is less than 100% but equal to or greater than 90% of the sum of the Performance Targets for those
three years &#150; then the number of Vested Shares for Performance Year 2005 shall be 2,500. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(c)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">if less than 5,000 Shares have Vested in Performance Year 2006 under Section 3.1 above, and the sum of the EBIT for Performance Years 2006 and 2007 is at least equal to the sum of
the Performance Targets for those two years, then the number of Vested Shares for Performance Year 2006 shall be 5,000. </FONT></TD></TR></TABLE>

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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(d)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">if less than 5,000 Shares have Vested in Performance Year 2006 under Section 3.1 above, and the sum of the EBIT for Performance Years 2006 and 2007 is less than 100% but equal to or
greater than 90% of the sum of the Performance Targets for those two years, then the number of Vested Shares for Performance Year 2006 shall be 2,500. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.3 <U>Maximum Vesting</U>. Notwithstanding anything to the contrary contained herein, the maximum number of
Shares that can Vest pursuant to this Agreement shall be 15,000 Shares. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">3.4 <U>Accelerated Vesting.</U> Notwithstanding the preceding provisions of Section 3 above, in the event of the occurrence of a &#147;Change of Control&#148; as defined above while Tholan is employed by the Company,
all 15,000 Shares covered by this Agreement shall thereupon become Vested without further action. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.5 <U>Forfeitures.</U> In the event that Tholan ceases to be an employee of the Company prior to the date that all 15,000 Shares become
vested, Tholan shall forfeit the right to receive any Shares that shall not have become Vested as of the date that his employment with the Company is terminated and all Shares that are not vested shall thereupon be cancelled. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>4. <U>Adjustment to Performance Targets. </U></B>In the
event that the Company disposes of a subsidiary corporation or other business entity during any Performance Year, a prospective adjustment shall be made to reduce the Performance Target for the Performance Year during which such disposition occurs
and for subsequent Performance Years by the amount of the EBIT that such subsidiary or other entity had during the fiscal year that immediately precedes the fiscal year during which such disposition occurs. In the event that the Company acquires a
subsidiary or other business entity during any Performance Year, the then existing Performance Target shall be increased for such Performance Year and each Performance Year thereafter by the product of the amount of the EBIT of such subsidiary or
other entity for the fiscal year that immediately precedes the date of such acquisition multiplied times that percentage of each Performance Year during which such subsidiary or other entity is owned by the Company. The Company&#146;s Auditor&#146;s
determinations of EBIT with respect to each Performance Year shall be final and binding on the Company and Tholan. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>5. </B><B><U>Stock Certificates, Dividends, and Voting of Restricted Shares</U>.</B>
Shares granted pursuant to this Agreement shall be represented by a stock certificate registered in Tholan&#146;s name. The certificate for Shares shall be retained by the Company until the Shares represented by such certificate either Vest or are
forfeited. Prior to Vesting, Tholan shall have the right to receive any dividends distributed with respect to the Shares, to vote the Shares, and to enjoy all other stockholder rights, except that (i) Tholan shall not be entitled to delivery of
stock certificates representing said Shares until such Shares have Vested, (ii) Company shall retain custody of the certificates for the Shares until they have vested, (iii) Tholan may not sell, transfer, pledge, exchange, hypothecate or otherwise
dispose of the Shares until the Shares have Vested. As and when the Shares Vest pursuant to this Agreement, a stock certificate for the number of Shares that have vested shall be delivered to Tholan and none of the restrictions set forth in this
Agreement shall thereafter apply to the Vested Shares. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><B>6. <U>Miscellaneous</U></B>. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.1
<U>No Employment Rights Conferred</U><B>. </B> </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><U>The Company</U><B>. </B>Nothing contained in this Agreement shall (i) confer upon Tholan any right with respect to continuation of employment with the Company or (ii) interfere
in any way with the right of the Company to terminate Tholan&#146;s employment at any time. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><U>Tholan.</U> Nothing contained in this Agreement shall be deemed to (i) require that Tholan continue his employment with the Company for any specific period of time or (ii)
interfere in any way with the right of Tholan to terminate his employment with the Company at any time. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.2 <U>Other Laws; Tax Withholding</U>. The Company shall not be obligated to deliver any restricted Shares pursuant to this Award that
are not registered under the securities laws unless such Shares can be legally issued in the opinion of counsel to the Company without registration under the Securities Act of 1933, as amended, and applicable state securities laws. In connection
with this Award, the Company shall have the right to deduct from Tholan&#146;s salary any taxes required by law to be withheld and/or to require payments from Tholan to enable the Company to satisfy its respective tax withholding obligations with
respect to Tholan. In addition, the Company shall have the right to require Tholan to pay to the Company the amount of withholding taxes required to be withheld by the Company with respect to Tholan and in turn paid over to the U.S. Internal Revenue
Service. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.3 <U>No Restriction on Corporate
Action</U>. Nothing contained in this Award shall be construed to prevent the Company from taking any corporate action which is deemed by the Company to be appropriate or in its best interest, whether or not such action would have an adverse effect
on Tholan and Tholan shall not have any claim against the Company as a result of any such action. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.4 <U>Governing Law</U><B>.</B> This Award shall be construed in accordance with the laws of the State of Texas. </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.5 <U>Notices.</U> All notices, consents, waivers, and other communications under this
Agreement must be in writing and will be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with written confirmation of receipt), provided that a copy is mailed by registered
mail, return receipt requested, or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and numbers set forth below (or to such other
addresses and facsimile numbers as a party may designate by notice to the other parties): </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="60%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="79%"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">If&nbsp;to&nbsp;the&nbsp;Company:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Team, Inc.</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">PO Box 123</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Alvin, TX 75011-0123</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">If to Tholan:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Mr. Kenneth M. Tholan</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">3503 Pickering Lane</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Pearland, TX 77584</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.6
<U>Arbitration.</U> Any controversy or claim arising pursuant to this Agreement shall be submitted to and resolved by a single arbitrator (the &#147;Arbitrator&#148;) who shall be selected by the Houston, Texas office of the American Arbitration
Association. The arbitration proceeding will be conducted pursuant to the then current commercial rules of the American Arbitration Association. The arbitration proceeding shall be held in Houston, Texas unless the parties to the arbitration
proceeding agree in writing to the contrary. The determination of the Arbitrator shall be conclusive upon the parties to the arbitration and the parties to the arbitration agree to act in compliance therewith, and judgment upon the same may be
entered in any court having jurisdiction thereof. The Arbitrator shall give written notice to the parties to the arbitration stating the Arbitrator&#146;s determination and shall furnish to each party to the arbitration a signed copy of such
determination. In addition: </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">The Arbitrator, as expeditiously as reasonably possible, shall reach and render a written decision with respect to any conflict submitted to it as contemplated hereby, and such
decision shall be final and binding upon all interested parties; and </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">All reasonable arbitration fees, costs and expenses, including reasonably attorneys fees (collectively, &#147;Arbitration Costs&#148;), shall be paid in accordance with the decision
of the Arbitrator unless such decision is silent as to Arbitration Costs, in which event the nonprevailing party shall pay all Arbitration Costs incurred by all Parties in connection with such arbitration proceeding. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Notwithstanding anything in this Section 6.6 to the contrary, each Party shall be entitled to
seek injunctive or other equitable relief in any court of competent jurisdiction located in Brazoria County, Texas, without first seeking or obtaining any decision of the Arbitrator, even if a similar or related matter has already been referred to
arbitration in accordance with the terms of this Section. With </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">respect to any such action seeking injunctive or other equitable relief, each Party hereto, by its/his execution hereof
(i) hereby irrevocably submits to the exclusive jurisdiction of the District Court of Brazoria County, Texas or the United States District Court for the Southern District of Texas, and (ii) agrees not to assert, by way of motion, as a defense or
otherwise, in any such proceeding, any claim that such Party is not subject personally to the jurisdiction of the above-named courts, that any such proceeding brought in one of the above-named courts is brought in an inconvenient forum, that the
venue of any such proceeding brought in one of the above-named courts is improper, or that this Agreement, or the subject matter hereof, may not be enforced in or by such court. Each Party agrees that it/he may be served by any method of process
described in the Texas or Federal Rules of Civil Procedure, as the case may be. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">EXECUTED on this the 20</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> day of November, 2004 to be effective as of the Effective
Date. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="7%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="92%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>TEAM, INC.</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">/s/ Philip J. Hawk</FONT></P><HR SIZE="1" NOSHADE COLOR="#000000"></TD></TR>
<TR>
<TD VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"><B>PHILIP J. HAWK, CHAIRMAN</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">/s/ Kenneth M. Tholan</FONT></P><HR SIZE="1" NOSHADE COLOR="#000000"></TD></TR>
<TR>
<TD VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"><B>KENNETH M. THOLAN</B></FONT></TD></TR>
</TABLE></DIV>
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