Company: TISI
Filing Date: 2025-06-20
Form Type: 11-K
Source: 0000318833-25-000050
Chunk: 6

Company: TEAM INC
Filing Date: 2025-06-20
Form: 11-K
Chunk 6
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 | 100 |   |

Years of service with predecessor employers acquired by Team are recognized for vesting service, as defined in the Plan document.

Forfeited balances of terminated participants are used to reduce future matching and non-elective employer contributions or to pay administrative expenses of the Plan. At December 31, 2024 and 2023, forfeited nonvested accounts totaled approximately $163,000 and $1,038,000, respectively. Forfeitures utilized to reduce matching employer contributions and pay administrative expenses totaled approximately $2,054,000 and $0, respectively, in 2024.

(g) Notes Receivable from Participants

Participants may borrow from their account balance up to a maximum of $50,000, less the participant’s highest outstanding loan balance during the preceding 12 months, or 50% of their vested account balance, whichever is less. The minimum loan amount is $1,000, and only one outstanding loan is allowed per participant at any given time. The loans are secured by the balance in the participant’s account and bear interest at rates commensurate with local prevailing rates of Prime plus 1% at the time of the loan and are charged a one-time fee of $125. All loans must be repaid through payroll deductions within five years, except where a loan is used to purchase a principal residence, which is payable within ten years. Principal and interest are paid ratably through payroll deductions. Interest rates range from 4.25% to 9.50% and maturity dates range from January 2025 to September 2034 on loans outstanding at December 31, 2024. Merged plans may include loans that are payable in a time period that is greater than ten years.

(h) Payment of Benefits

On termination of service due to death, total disability or retirement, a participant becomes fully vested and may elect to receive the balance in his or her account. Normal retirement age under the Plan is 60. For termination of service for other reasons, a participant may receive the value of the vested interest in his or her account. Upon reaching age 59 1/2, a participant may elect a withdrawal from the participant’s employee deferral account and vested employer account. Upon furnishing proof of financial necessity, a participant is eligible for a hardship withdrawal from the participant’s employee deferral account. Benefits are payable in a lump-sum amount.

The Plan requires automatic distribution of participant account balances, upon a participant’s termination, if account balances are less than $5