THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Temple-Inland Inc. (TIN)

3/22/2006 Proxy Information

There is no family relationship between any of the nominees, continuing directors and executive officers of the Company. Arthur Temple III and Larry E. Temple are not related.

The Board of Directors has determined that the following Directors meet its independence standards, which are set forth in the Governance Guidelines on the Company’s website at www.templeinland.com: Afsaneh M. Beschloss, Donald M. Carlton, Cassandra C. Carr, E. Linn Draper, Jr., Larry R. Faulkner, James T. Hackett, Jeffrey M. Heller, James A. Johnson, W. Allen Reed, Arthur Temple III, and Larry E. Temple. Mr. Jastrow, the Company’s Chairman, does not meet the independence standards because he is an employee of the Company. The Board defines independence as meeting the requirements to be considered independent directors as defined under the rules of the New York Stock Exchange (NYSE), as they may be amended from time to time. The Board has established the following additional guidelines to assist it in determining director independence:

1. If not otherwise prohibited by the rules of the NYSE, the following commercial or charitable relationships will not be considered material relationships that would impair a Director’s independence: any relationship that is not required to be reported in the Company’s proxy statement to stockholders under applicable securities laws.

2. To serve as a member of any committee of the Board, the Director must meet any additional requirements of independence set forth in the committee’s charter or applicable law.

From time to time, the Company’s mortgage lending subsidiary and/or its Bank may have made, in the ordinary course of business, mortgage loans and/or home equity lines of credit to directors, executive officers, or their immediate families. Such mortgage loans and/or home equity lines of credit were made on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the time for comparable transactions with other persons, and did not involve more than the normal risk of collectibility or present other unfavorable features. The Company may sell these mortgage loans and/or home equity lines of credit into the secondary market in the ordinary course of business.

There are no material relationships between the Company and any director.

3/25/2005 Proxy Information

From time to time, the Company's mortgage lending subsidiary and/or its Bank may have made, in the ordinary course of business, mortgage loans and/or home equity lines of credit to directors, executive officers, or their immediate families. Such mortgage loans and/or home equity lines of credit were made on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the time for comparable transactions with other persons, and did not involve more than the normal risk of collectibility or present other unfavorable features. The Company may sell these mortgage loans and/or home equity lines of credit into the secondary market in the ordinary course of business.

3/19/2004 Proxy Information

Charlotte Temple is the sister of director Arthur Temple.

Mr. Temple III is a director of Balcones Recycling, Inc. ("Balcones"). Mr. Temple III's father is a partner in a family limited partnership which owns 30.6% of Balcones. During 2003, a subsidiary of the Company bought recycled fiber from Balcones at an aggregate cost of $503,591. The actual price paid for the recycled fiber was a price negotiated between Balcones and a subsidiary of the Company and based on purchases from similar vendors in the region of the country where the mill is located.

TIN - Mr. Temple III is also a director of Contractor's Supplies, Inc. ("Contractor's"). Mr. Temple III, members of his family, a family partnership, and trusts of which Mr. Temple III is a trustee own approximately 11% of Contractor's outstanding capital stock. During 2003, subsidiaries of the Company purchased concrete from Contractor's at an aggregate price of $115,098 in the ordinary course of business. It is expected that subsidiaries of the Company will continue to purchase concrete from Contractor's and its subsidiaries in the future.

3/31/2003 Proxy Information

Mr. Temple III is a director, officer and 66 2/3% stockholder of Demco Manufacturing Company ("Demco"). During 2002, Demco performed machinery repair services for Temple-Inland Forest Products Corporation ("Forest Products"), a wholly-owned subsidiary of the Company, in the ordinary course of business at an aggregate cost to Forest Products of $75,401. It is expected that Demco will continue to perform services for subsidiaries of the Company in the future.

Mr. Temple III is a director of Balcones Recycling, Inc. ("Balcones") and a family limited partnership in which the father of Mr. Temple III is a partner owns 30.6% of Balcones. During 2002, Inland Paperboard & Packaging, Inc. ("Inland"), a wholly owned subsidiary of the Company, bought recycled fiber from Balcones at an aggregate cost to Inland of $564,708. The price paid for the recycled fiber was determined using a price published by a third party survey of similar purchases in the region of the country where the Inland mill is located.

Until such time as Mr. Temple III has no further potential conflicts of interest, the Board of Directors has determined (with Mr. Temple's consent) that Mr. Temple III shall not serve on any committee of the Board.

Mr. Larry Temple and Mr. Temple III also serve on the board of Guaranty Bank, a wholly-owned subsidiary of the Company. Guaranty's board is composed of a majority of independent directors. For serving on Guaranty's board, non-management directors in 2003 will receive the following fees: $48,000 annual retainer for service on Guaranty's board, $10,000 annual retainer for service on the audit committee, $10,000 annual retainer for service as chairman of the audit committee, $10,000 annual retainer for service on the executive committee, and $8,000 annual retainer for service on the loan committee.