Document:

Exhibit 10.1

 

EXECUTION COPY

 

VOTING AGREEMENT

 

VOTING
AGREEMENT (this “Agreement”) dated as of May 10, 2006, is by and among KOOSHAREM
CORPORATION, a California corporation (“Parent”), RT ACQUISITION CORP.,
a Delaware corporation (“Merger Sub”), and each Person (as defined in
the Merger Agreement (as defined below)) listed on the signature page hereof as
a shareholder (each, a “Shareholder,” and collectively, the “Shareholders”).
For purposes of this Agreement, capitalized terms used and not defined herein
shall have the respective meanings ascribed to them in the Agreement and Plan
of Merger, dated as of the date hereof (the “Merger Agreement”), by and among
Parent, Merger Sub and RemedyTemp, Inc., a California corporation (the “Company”).

 

RECITALS

 

A.            Each Shareholder “beneficially owns”
(as such term is defined in Rule 13d-3 promulgated under the Securities
Exchange Act of 1934, as amended) and is entitled to dispose of (or to direct
the disposition of) and to vote (or to direct the voting of) the number of
shares of Class A Common Stock, par value $.01 per share, of the Company (the “Class
A Common Stock”) and Class B Common Stock, par value $.01 per share, of the
Company (the “Class B Common Stock” and, together with the Class A
Common Stock, the “Company Common Stock”) set forth opposite such
stockholder’s name on Schedule A hereto (such shares of Company Common
Stock, together with all other shares of capital stock of the Company acquired
by any Shareholder after the date hereof and during the term of this Agreement,
being collectively referred to herein as the “Subject Shares”).

 

B.            Concurrently with the execution and
delivery of this Agreement, Parent Merger Sub and the Company have entered into
the Merger Agreement providing for the merger of Merger Sub with and into the
Company, with the Company continuing as the surviving corporation in the Merger
(the “Merger”), all upon the terms and subject to the conditions set
forth therein.

 

C.            As a condition to entering into the Merger
Agreement, Parent and Merger Sub have required that the Shareholders enter into
this Agreement, and the Shareholders desire to enter into this Agreement to
induce Parent and Merger Sub to enter into the Merger Agreement.

 

D.            The Board of Directors of the
Company has taken all actions necessary and within its authority such that no
restrictive provision of any “fair price,” “moratorium,” “control share
acquisition,” “business combination,” “Shareholder protection,” “interested
shareholder” or other similar anti-takeover statute or regulation, any
restrictive provision of the Amended and Restated Articles of Incorporation or
Amended and Restated By-Laws of the Company or comparable organizational
documents of any of its Subsidiaries or the Rights Agreement is, or at the
Effective Time will be, applicable to the Company, its Subsidiaries, Parent,
Merger Sub, the Company 

 

 

Common
Stock, the Merger or any other transaction contemplated by this Agreement or
the Merger Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual premises,
representations, warranties, covenants and agreements contained herein, the
parties hereto, intending to be legally bound, hereby agree as follows:

 

1.             Representations
and Warranties of Each Shareholder.

 

Each Shareholder,
severally (and not jointly), hereby represents and warrants to Parent as
follows:

 

(a)       Due Authorization and Organization.
With respect to each Shareholder that is not a natural person, such Shareholder
is duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation or organization (as applicable) and with respect
to each Shareholder that is a natural person, such Shareholder has the
requisite capacity to enter into this Agreement. Such Shareholder has all
requisite legal power (corporate or other) and authority to execute and deliver
this Agreement and to consummate the transactions contemplated hereby. This
Agreement has been duly authorized, executed and delivered by such Shareholder
and constitutes a valid and binding obligation of such Shareholder enforceable
in accordance with its terms subject to (i) bankruptcy, insolvency, moratorium
and other similar laws now or hereafter in effect relating to or affecting
creditors’ rights generally, and (ii) general principles of equity (regardless
of whether considered in a proceeding at law or in equity).

 

(b)       No Conflicts. (i) No filing by such
Shareholder with any Governmental Entity, and no authorization, consent or
approval of any other Person is necessary for the execution of this Agreement
by such Shareholder or the consummation by such Shareholder of the transactions
contemplated hereby and (ii) none of the execution and delivery of this
Agreement by such Shareholder, the consummation by such Shareholder of the
transactions contemplated hereby or compliance by such Shareholder with any of
the provisions hereof shall (A) conflict with or result in any breach of the
organizational documents of such Shareholder (if applicable), (B) result in, or
give rise to, a violation or breach of or a default under (with or without
notice or lapse of time, or both) any of the terms of any material contract,
trust agreement, loan or credit agreement, note, bond, mortgage, indenture,
lease, permit, understanding, agreement or other instrument or obligation to
which such Shareholder is a party or by which such Shareholder or any of its
Subject Shares or assets may be bound, or (C) violate any applicable order,
writ, injunction, decree, judgment, statute, rule or regulation, except for any
of the foregoing as would not reasonably be expected to prevent such
Shareholder from performing its obligations under this Agreement.

 

(c)       The Subject Shares. Schedule
A sets forth opposite such Shareholder’s name, the number of Subject Shares
over which such Shareholder has record or beneficial ownership as of the date
hereof. As of the date hereof, such Shareholder is the record or beneficial
owner of the Subject Shares denoted as being owned by such Shareholder on Schedule
A and has the sole power to vote (or cause to

 

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be voted) such Subject
Shares. Except as set forth on such Schedule A, neither such Shareholder
nor any affiliate of such Shareholder owns or holds any right to acquire any
additional shares of any class of capital stock of the Company or other
securities of the Company or any interest therein or any voting rights with
respect to any securities of the Company. Such Shareholder has good and valid
title to the Subject Shares denoted as being owned by such Shareholder on Schedule
A, free and clear of any and all pledges, mortgages, liens, charges, proxies,
voting agreements, encumbrances, adverse claims, options, security interests
and demands of any nature or kind whatsoever, other than those created by this
Agreement, as disclosed on Schedule A, or as would not prevent such Shareholder
from performing its obligations under this Agreement.

 

(d)       Reliance By Parent. Such Shareholder
understands and acknowledges that Parent is entering into the Merger Agreement
in reliance upon such Shareholder’s execution and delivery of this Agreement.

 

(e)       Litigation. As of the date hereof,
there is no action, proceeding or investigation pending or threatened against such
Shareholder that questions the validity of this Agreement or any action taken
or to be taken by such Shareholder in connection with this Agreement.

 

2.             Representations
and Warranties of Parent and Merger Sub. 

 

Parent
and Merger Sub hereby represent and warrant to the Shareholders as follows:

 

(a)       Due Organization, etc. Parent and
Merger Sub are each duly organized, validly existing and in good standing under
the laws of their respective jurisdictions of incorporation. Parent and Merger
Sub have all requisite corporate power and authority to execute and deliver
this Agreement and to consummate the transactions contemplated hereby. This
Agreement has been duly authorized, executed and delivered by Parent and Merger
Sub and constitutes a valid and binding obligation of Parent and Merger Sub enforceable
in accordance with its terms subject to (i) bankruptcy, insolvency,
moratorium and other similar laws now or hereafter in effect relating to or
affecting creditors’ rights generally, and (ii) general principles of equity
(regardless of whether considered in a proceeding at law or in equity).

 

(b)       Conflicts. (i) No filing by Parent
or Merger Sub with any Governmental Entity, and no authorization, consent or
approval of any other Person is necessary for the execution of this Agreement
by Parent or Merger Sub or the consummation by Parent or Merger Sub of the
transactions contemplated hereby and (ii) none of the execution and delivery of
this Agreement by Parent or Merger Sub, the consummation by Parent or Merger
Sub of the transactions contemplated hereby or compliance by Parent or Merger
Sub with any of the provisions hereof shall (A) conflict with or result in any
breach of the Articles of Incorporation or By-Laws of Parent or the comparable
organizational documents of Merger Sub, (B) result in, or give rise to, a
violation or breach of or a default under (with or without notice or lapse of
time, or both) any of the terms of any contract, loan or credit agreement,
note, bond, mortgage, indenture, lease, permit, understanding, agreement or
other instrument or

 

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obligation to which Parent
or Merger Sub is a party or by which Parent or Merger Sub or any of their
respective assets may be bound, or (C) violate any applicable order, writ,
injunction, decree, judgment, statute, rule or regulation, except for any of
the foregoing as would not prevent Parent or Merger Sub from performing their
respective obligations under this Agreement.

 

3.             Covenants
of Each Shareholder. 

 

Until
the termination of this Agreement in accordance with Section 5, each Shareholder,
in its capacity as such, agrees as follows:

 

(a)       At the Company Shareholders Meeting or at
any adjournment, postponement or continuation thereof or in any other
circumstances occurring prior to the Company Shareholders Meeting upon which a
vote or other approval with respect to the Merger and the Merger Agreement is
sought, each Shareholder shall vote (or cause to be voted) the Subject Shares
(and each class thereof) held by such Shareholder (i) in favor of the approval
of the Merger and the approval and adoption of the Merger Agreement; and (ii)
except with the written consent of Parent and Merger Sub, against any Company
Acquisition Proposal. Any such vote shall be cast in accordance with such
procedures relating thereto so as to ensure that it is duly counted for
purposes of determining that a quorum is present and for purposes of recording
the results of such vote. Each Shareholder agrees not to enter into any
agreement or commitment with any Person the effect of which would be
inconsistent with or violative of the provisions and agreements contained in
this Section 3(a).

 

(b)       Each Shareholder agrees not
to, directly or indirectly, (i) sell, transfer, tender, pledge, encumber,
assign or otherwise dispose of (collectively, a “Transfer”) or enter
into any agreement, option or other arrangement with respect to, or consent to
a Transfer of, or reduce his, her or its risk in a Constructive Sale (as
defined below) with respect to, any or all of the Subject Shares, other than in
accordance with the Merger Agreement, or (ii) grant any proxies (other than the
Company proxy card in connection with the Company Shareholders Meeting if and
to the extent such proxy is consistent with such Shareholder’s obligations
under Section 3(a) hereof), deposit any Subject Shares into any voting trust or
enter into any voting arrangement, whether by proxy, voting agreement or
otherwise, with respect to any of the Subject Shares, other than pursuant to
this Agreement or in a manner consistent with such Shareholder’s obligations
under Section 3(a) hereof. Such Shareholder further agrees not to, and shall
cause its affiliates not to, commit or agree to take any of the foregoing
actions or take any action that may reasonably be expected to have the effect
of preventing, impeding, interfering with or adversely affecting its ability to
perform its obligations under this Agreement. Notwithstanding the foregoing or anything to the contrary set forth in
this Agreement, each Shareholder may Transfer any or all of the Subject Shares
(i) by will, or by operation of law, in which case this Agreement shall bind
the transferee, or (ii) in connection with estate and charitable planning
purposes, including Transfers to relatives, trusts and charitable organizations
or by distribution to partners, members, shareholders or affiliates of the Shareholder,
so long as the transferee, prior to such Transfer, executes a counterpart of
this Agreement (with such modifications as Parent may reasonably request solely
to reflect such transfer). As used herein, the term “Constructive Sale” shall
mean a short sale with respect to any Subject Shares, entering

 

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into or acquiring an
offsetting derivative contract with respect to any Subject Shares, entering
into or acquiring a futures or forward contract to deliver any Subject Shares
or entering into any other or other derivative transaction that has the effect
of materially changing the economic benefits and risks of ownership.

 

(c)       Such Shareholder shall not, nor shall such
Shareholder permit any of its affiliates to, nor shall such Shareholder act in
concert with or permit any affiliate to act in concert with any Person to make,
or in any manner participate in, directly or indirectly, a “solicitation” (as
such term is used in the rules of the Securities and Exchange Commission) of
proxies or powers of attorney or similar rights to vote, or seek to advise or
influence any Person with respect to the voting of, any shares of Company Common
Stock intended to facilitate any Company Acquisition Proposal or to cause shareholders
of the Company not to vote to approve and adopt the Merger Agreement.

 

4.             Shareholder
Capacity.

 

No Person executing this
Agreement, nor any officer, director, partner, employee, agent or
representative of such Person, who is or becomes during the term of this
Agreement a director or officer of the Company shall be deemed to make any
agreement or understanding in this Agreement in such Person’s capacity as a
director or officer. Each Shareholder is entering into this Agreement solely in
his or her capacity as the record holder or beneficial owner of, or the trustee
of a trust whose beneficiaries are the beneficial owners of, such Shareholder’s
Subject Shares and nothing herein shall limit or affect any actions taken by a Shareholder
in his or her capacity as a director or officer of the Company.

 

5.             Termination. 

 

This
Agreement shall terminate (i) upon the approval and adoption of the Merger
Agreement at the Company Shareholders Meeting; 
(ii)  upon the termination of the
Merger Agreement in accordance with its terms; or (iii) at any time upon notice
by Parent to the Shareholders. No party hereto shall be relieved from any
liability for intentional breach of this Agreement by reason of any such
termination. Notwithstanding the foregoing, this Section 5 and Sections 7 and 8
of this Agreement shall survive the termination of this Agreement.

 

6.             Appraisal
Rights. 

 

To the
extent permitted by applicable law, each Shareholder hereby waives any rights
of appraisal or rights to dissent from the Merger that it may have under
applicable law.

 

7.             Publication. 

 

Each Shareholder
hereby authorizes Parent and the Company to publish and disclose in the Proxy
Statement (including any and all documents and schedules filed with the
Securities and Exchange Commission relating thereto) its identity and ownership

 

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of Subject Shares and the nature of its commitments,
arrangements and understandings pursuant to this Agreement.

 

8.             Waiver
of Jury Trial. 

 

EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND THEREFORE
EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH
PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A)
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH SUCH PARTY
UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH SUCH
PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH SUCH PARTY HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 8.

 

9.             Governing
Law; Jurisdiction.

 

This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware applicable to contracts
executed in and to be performed entirely within that State. Each party hereby
agrees and consents to be subject to the jurisdiction of the Court of Chancery
of the State of Delaware in and for New Castle County or, if the Court of
Chancery lacks subject matter jurisdiction, any court of the State of Delaware
situated in New Castle County or the United States District Court for the
District of Delaware in any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this
Agreement or the transactions contemplated hereby. Each party hereby irrevocably
consents to the service of any and all process in any such suit, action or
proceeding by the delivery of such process to such party at the address and in
the manner provided in Section 13 hereof. Each of the parties hereto
irrevocably and unconditionally waives any objection to the laying of venue of
any action, suit or proceeding arising out of this Agreement or the
transactions contemplated hereby in the Court of Chancery of the State of
Delaware in and for New Castle County or, if the Court of Chancery lacks
subject matter jurisdiction, any court of the State of Delaware situated in New
Castle County or the United States District Court for the District of Delaware,
and hereby further irrevocably and unconditionally waives and agrees not to
plead or claim in any such court that any such action, suit or proceeding
brought in any such court has been brought in an inconvenient forum.

 

10.           Specific
Performance.

 

Each party hereto acknowledges that money damages
would be both incalculable and an insufficient remedy for any breach of this
Agreement by such party and that any

 

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such breach would cause the other party hereto irreparable harm. Accordingly,
each party hereto also agrees that, in the event of any breach or threatened
breach of the provisions of this Agreement by such party, the other party
hereto shall be entitled to equitable relief without the requirement of posting
a bond or other security, including in the form of injunctions and orders for
specific performance.

 

11.           Amendment,
Waivers, Etc. 

 

This
Agreement may be amended by Parent, Merger Sub and the Shareholders at any time
before or after adoption of the Merger Agreement by the shareholders of the
Company; provided, however, that after such adoption, no amendment shall be
made that by law or in accordance with the rules of any relevant stock exchange
or automated inter-dealer quotation system requires further approval by such Shareholders
without such further approval. This Agreement may not be amended except by an
instrument in writing signed by Parent, Merger Sub and the Shareholders. At any
time prior to the Effective Time, Parent, Merger Sub and the Shareholders may,
to the extent legally allowed, (i) extend the time for the performance of any
of the obligations or acts of the other party; (ii) waive any inaccuracies in
the representations and warranties of the other party contained herein or in
any document delivered pursuant to this Agreement; and (iii) waive compliance
with any of the agreements or conditions of the other party contained herein;
provided, however, that no failure or delay by Parent, Merger Sub and the Shareholders
in exercising any right hereunder shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right hereunder. Any agreement on the part
of Parent or the Shareholders to any such extension or waiver shall be valid
only if set forth in an instrument in writing signed on behalf of such party.

 

12.           Assignment;
No Third Party Beneficiaries. 

 

Neither
this Agreement nor any of the rights, benefits or obligations hereunder may be
assigned by any of the parties hereto (whether by operation of law or
otherwise) without the prior written consent of all of the other parties. Subject
to the preceding sentence, this Agreement will be binding upon, inure to the
benefit of and be enforceable by the parties hereto and their respective
successors and permitted assigns. Nothing in this Agreement, express or
implied, is intended to or shall confer upon any Person (other than Parent,
Merger Sub and the Shareholders and their respective successors and permitted
assigns) any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement, and no Person (other than as
so specified) shall be deemed a third party beneficiary under or by reason of
this Agreement.

 

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13.           Notices.
All notices and other communications given or made pursuant hereto shall be in
writing and shall be deemed to have been duly given or made (i) as of the date
delivered if delivered personally or on the date of confirmation of receipt if
sent by facsimile and (ii) on the third business day after deposit in the U.S.
mail, if mailed by registered or certified mail (postage prepaid, return
receipt requested), in each case to the parties at the following addresses (or
at such other address for a party as shall be specified by like notice, except
that notices of changes of address shall be effective upon receipt):

 

if
to Parent, to:

 

Koosharem
Corporation

3820
State Street 

Santa
Barbara, California 93105

Attention:      D. Stephen Sorensen

Telephone:    (805) 882-2202 (not official notice)

Facsimile:       (805) 898-7111

 

If to any Shareholder, at the address set forth under such Shareholder’s
name on Schedule A hereto or to such other address as the party to whom notice
is to be given may have furnished to the other parties in writing in accordance
herewith.

 

14.           Severability.

 

If any
term or other provision of this Agreement is invalid, illegal or incapable of
being enforced by any rule of law, or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner adverse to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner to the end that transactions contemplated
hereby are fulfilled to the maximum extent possible.

 

15.           Integration.

 

This
Agreement (together with the Merger Agreement to the extent referenced herein),
including Schedule A hereto, constitutes the full and entire
understanding and agreement of the parties with respect to the subject matter
hereof and thereof and supersedes any and all prior understandings or
agreements relating to the subject matter hereof and thereof.

 

16.           Mutual
Drafting. 

 

Each
party hereto has participated in the drafting of this Agreement, which each
party acknowledges is the result of extensive negotiations between the parties.

 

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17.           Section
Headings. 

 

The
section headings of this Agreement are for convenience of reference only and
are not to be considered in construing this Agreement.

 

18.           Counterparts.

 

This
Agreement may be executed in one or more counterparts and by different parties
hereto in separate counterparts, and of which when executed shall be deemed to
be an original but all which shall constitute one and the same agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN
WITNESS WHEREOF, the parties hereto have executed this Voting Agreement as of
the day and date first above written.

 

	
   

  	
  KOOSHAREM CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  RT ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

10

 

	
   

  	
  SHAREHOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

11

 

SCHEDULE
A

 

SHAREHOLDERS

 

	
  SHAREHOLDERS

  	
   

  	
  SUBJECT SHARES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

12Exhibit
10.2

 

 

CONFIDENTIALITY AND NON-SOLICITATION AGREEMENT

 

 

                This
CONFIDENTIALITY AND NON-SOLICITATION AGREEMENT (the “Agreement”) is between
RemedyTemp, Inc. (including all subsidiaries, parents and related entities and
divisions, including but not limited to Remedy Intelligent Staffing, Inc.,
Remedy Temporary Services, Inc., RemX and any of their affiliated or related
companies) (“REMEDY”), a California corporation with its principal place of
business in California and Greg Palmer (“Colleague”), effective the 10th day of
May, 2006.

 

In consideration of the
mutual promises and obligations in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby mutually
acknowledged, REMEDY and Colleague agree as follows:

 

 

1.             Confidentiality of Trade Secrets and Confidential
Information

 

During
the term of Colleague’s employment, Colleague has and will have access to and
become familiar with various Trade Secrets and other Confidential
Information.  The term “Trade Secrets and
Confidential Information” includes, but is not limited to, any and all
formulas, processes, product research, lists or other identifications of
customers or prospective customers of REMEDY, key customer contacts,
manufacturing and other techniques, marketing plans, pricing strategies, fees
charged or to be charged, proposals, financial plans and projections, inventory
planning, and compilations of confidential information, data, and software and
other information that is used in REMEDY’s business and which gives REMEDY an
opportunity to obtain an advantage over its competition. These Trade Secrets
and Confidential Information are peculiar to REMEDY, the disclosure of which
would cause REMEDY great and irreparable harm. 
REMEDY has also invested a great deal of time and money in developing
relationships with its customers, clients and Colleagues.

 

Colleague
recognizes that the methods utilized by REMEDY in the conduct of its business (“REMEDY’s
Business”) and any list or compilation of REMEDY’s customers, prospects and
Colleagues, as they may exist from time to time, are valuable, special and
unique assets of REMEDY.  Colleague
further acknowledges that said business methods and lists were acquired and/or
developed and will continue to be acquired and/or developed at considerable
expense to REMEDY.

 

REMEDY agrees to provide
Colleague access to many of its Trade Secrets and much of its Confidential
Information, introduce Colleague to many of its clients and customers, and
provide Colleague with specialized training in REMEDY’s Business.

 

Colleague agrees that in
rendering services to REMEDY, Colleague will be exposed to and learn much
information about REMEDY’s Business, including valuable Trade Secrets and
Confidential Information, which Colleague would not have access to if not for
Colleague’s employment with REMEDY and which it would be unfair to disclose to
others, or to use to REMEDY’s disadvantage.

 

Colleague agrees that REMEDY
may introduce Colleague to prospective and existing customers and clients of
REMEDY, with whom Colleague would not meet or become acquainted if not for
Colleague’s employment with REMEDY.

 

REMEDY and Colleague agree
that the restrictions contained in this Agreement are necessary and reasonable
to protect REMEDY’s legitimate business interests in its Trade Secrets and
Confidential Information, relationships with its Colleagues, relationships and
goodwill with its existing and prospective customers and clients, and the
specialized training that REMEDY will provide to Colleague.

 

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Colleague agrees that
Colleague’s skills, education and training qualify Colleague to work and obtain
employment which does not violate this Agreement, and that the restrictions in
this Agreement have been crafted as narrowly as possible to protect REMEDY’s
legitimate business interests in its Trade Secrets, Confidential Information,
relationships with its Colleagues, relationships and goodwill with its existing
and prospective customers and clients, and the specialized training which
REMEDY will provide to Colleague.

 

Accordingly, Colleague
agrees that during Colleague’s employment with REMEDY and at any time after the
termination of Colleague’s employment with REMEDY for any reason, Colleague
will not use for Colleague’s own benefit or the benefit of others, or publish,
disclose, divulge or convey to others, any Trade Secret or Confidential
Information, knowledge or data of REMEDY, REMEDY’s Business or that of third
parties obtained by Colleague in the course of Colleague’s employment with
REMEDY.

 

 

2.             Maintenance and
Return of Trade Secret/Confidential Information and Equipment

 

All documents, reports,
notes or other materials incorporating or reflecting, in any way, any Trade
Secrets or Confidential Information and all other materials and all copies
(whether in hard copy or electronic form) thereof relating in any way to REMEDY’s
Business and in any way obtained by Colleague during the period of Colleague’s
employment with REMEDY which are in Colleague’s possession or control shall
remain the exclusive property of REMEDY and shall not be removed from REMEDY’s
premises under any circumstances whatsoever without the prior written consent
of REMEDY.

 

Upon termination of
Colleague’s employment with REMEDY or at any other time at REMEDY’s request,
Colleague agrees to deliver promptly to REMEDY any and all of the foregoing
documents.  Colleague further agrees not
to make or retain any copies of any of the foregoing and will so represent to
REMEDY upon termination of employment. 
Colleague further agrees to return to REMEDY all equipment and other
things belonging to REMEDY in his/her possession.

 

 

3.             Non-Solicitation
of Colleagues

 

Colleague agrees that during
Colleague’s employment with REMEDY and for a period of one year after
termination of Colleague’s employment with REMEDY for any reason, Colleague
shall not solicit or recruit, or attempt to solicit or recruit, directly or by
assisting others, any REMEDY Colleague to work, either for him/herself or for
any other person, firm or corporation in competition with REMEDY.

 

 

4.             Non-Solicitation
of Customers

 

Colleague agrees that during
Colleague’s employment with REMEDY and thereafter, Colleague shall not solicit
or recruit, or attempt to solicit or recruit, directly or by assisting others,
the business of any REMEDY customers, either for him/herself or for any other
person, firm or corporation in competition with REMEDY.

 

 

5.             Non-Disparagement

 

Colleague agrees that during
Colleague’s employment with REMEDY and thereafter, Colleague will not take any
action or make any statement which disparages REMEDY or its practices or which
disrupts or impairs its normal operations. Nothing in this provision shall
limit any common law or statutory rights of REMEDY or obligations of Colleague.

 

 

2

 

6.             Other
Employment

 

To
the fullest extent permitted by law, Colleague agrees that while employed by
REMEDY, Colleague shall devote Colleague’s entire productive time, ability, and
attention to the business of REMEDY. 
Colleague further agrees that during his/her employment with REMEDY,
he/she will not directly or indirectly (whether as an employer, agent,
consultant, holder of a beneficial interest, creditor, or in any other
capacity), engage in any employment or business or venture which engages
directly or indirectly in competition with REMEDY’s Business, or have any
interest in any person, firm, corporation, or venture which engages directly or
indirectly in competition with REMEDY’s Business.

 

 

7.             No
Improper Use of Information of Prior Employers and Others

 

Colleague
agrees that during his/her employment by REMEDY, he/she will not improperly use
or disclose any trade secrets or confidential business information, if any, of
any former employer or any other person to whom he/she has an obligation of
confidentiality, and will not bring onto the premises of REMEDY any unpublished
documents or any property belonging to his/her former employer or any other
person to whom he/she has an obligation of confidentiality unless consented to
in writing by that former employer or person. 
Colleague further agrees that he/she will use in the performance of
his/her duties only information which is generally known and used by persons
with training and experience comparable to his/her own, which is common
knowledge in the industry or which is otherwise provided or developed by
REMEDY.

 

 

8.             Compensation

 

                Colleague
and REMEDY each hereby acknowledge and agree that this Agreement is being
entered into in contemplation of the execution of the Agreement and Plan of
Merger, dated of even date herewith (the “Merger Agreement”), by and among
REMEDY, Koosharem Corporation, a California corporation (“Parent”), and RT
Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of
Parent (“Merger Sub”), pursuant to which, among others, Merger Sub will be
merged with and into REMEDY (the “Merger”), with REMEDY continuing as a the
surviving corporation and a wholly owned subsidiary of Parent, all upon the terms
and subject to the conditions set forth therein.  Colleague and REMEDY each hereby further
acknowledge and agree that the execution by Parent and Merger Sub of the Merger
Agreement is conditioned upon, and subject to, the execution of this Agreement
by Colleague.  In consideration of the
foregoing, and the covenants and agreements of Colleague set forth herein, upon
consummation of the Merger, (i) at the Closing (as defined in the Merger
Agreement), REMEDY shall pay to Colleague a lump-sum payment in the amount of
$400,000; and (ii) REMEDY shall pay to Colleague the aggregate sum of $600,000
in twelve (12) equal monthly installments over the twelve-month period
commencing on the one-month anniversary of the Closing; provided, however,
that REMEDY’s obligations under this Paragraph 8 shall terminate in the event
of a material breach of this Agreement by Colleague; and provided  further,
that any payments to be made to Colleague shall be net of any applicable tax or
other withholdings required by applicable law.

 

9.             Future
Employers

 

REMEDY may notify anyone
employing Colleague or evidencing an intention to employ Colleague as to the
existence and provisions of this Agreement and may provide any such person or
organization a copy of this Agreement. 
Colleague agrees that for a period of one year after termination of
Colleague’s employment with REMEDY for any reason, Colleague will provide
REMEDY the identity of any employer Colleague goes to work for along with
Colleague’s job title and anticipated job duties with any such employer.  Colleague further agrees to provide a copy of
this Agreement to anyone who employs Colleague within one year of the
termination of Colleague’s employment with REMEDY.

 

 

3

 

10.          Equitable
Relief

 

Colleague acknowledges that the services to be rendered by Colleague
are of a special and intellectual character, which gives them a peculiar value,
that Colleague possesses unique skills, knowledge and ability, and that any
breach of the provisions of this Agreement would cause REMEDY irreparable
injury which would not reasonably or adequately be compensated by damages in an
action at law. Therefore, Colleague agrees that REMEDY shall be entitled, in
addition to any other remedies it may have under this Agreement, at law, or
otherwise, to immediate injunctive and other equitable relief in a court of
competent jurisdiction, without posting of any bond, to prevent or curtail any
breach of this Agreement by Colleague. Nothing in this Agreement shall prohibit
REMEDY from seeking or recovering any legal or monetary damages to which it may
be entitled if Colleague breaches this Agreement.

 

 

11.          Severability

 

Colleague and REMEDY expressly agree that if any provision in this
Agreement is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remaining provisions shall nevertheless continue in full
force without being impaired or invalidated in any way.

 

 

12.          Waiver

 

The waiver by REMEDY of a
breach of any provision of this Agreement by Colleague shall not operate or be
construed as a waiver of any subsequent or previous breach by Colleague or of
any of REMEDY’s rights hereunder.

 

 

13.          Entire
Agreement

 

This Agreement contains the
entire agreement between the parties with respect to the subject matters
contained in the Agreement. It may not be changed orally, but only by an
agreement in writing duly signed by REMEDY and Colleague. This Agreement
supersedes any prior or contemporaneous discussions, negotiations,
understandings, arrangements, or agreements between REMEDY and Colleague with
respect to the subject matters contained in this Agreement.

 

 

14.          Attorneys’
Fees and Costs

 

Should any party sue to
enforce this Agreement, the prevailing party shall be entitled to recover costs
and expenses, including reasonable attorneys’ fees, incurred in the action in
addition to all other damages and redress available in equity or in law.

 

 

15.          Binding
Effect

 

Colleague and REMEDY agree
that this Agreement is personal in nature and may not be assigned by the
Colleague.  It may, however, be assigned
by REMEDYTEMP, INC. to any REMEDY division or affiliate or any successor
thereof.

 

4

 

16.          Employment
At-Will Relationship

 

Colleague and REMEDY agree that nothing in this Agreement alters the
at-will nature of Colleague’s employment relationship with REMEDY and that
either Colleague or REMEDY may terminate the employment relationship at any
time for any reason.  Colleague further
agrees that nothing in this Agreement limits REMEDY’s right to alter or modify
Colleague’s job title or job duties and responsibilities any time at REMEDY’s
discretion.

 

17.          Arbitration

 

Except as set forth in Paragraph 10, any dispute, claim or controversy
arising out of or relating to this Agreement or breach, termination,
enforcement, interpretation or validity thereof, including the determination of
the scope or applicability of this Agreement to arbitrate, shall be determined
by arbitration in Orange County, California before a sole arbitrator, in
accordance with the laws of the State of California for agreements made in and
to be performed in that State. The arbitration shall be administered by JAMS
pursuant to its then existing Arbitration Rules and Procedures for Employment
Disputes. In the event of such an arbitration proceeding, the Administrator of
JAMS will appoint the arbitrator. Judgment on the arbitrator’s award may be
entered in any court having jurisdiction. If the arbitrator determines that any
term or other provision of this Agreement is invalid, illegal, or incapable of
being enforced, the arbitrator shall have the authority to modify the provision
or term to the minimum extent required to permit enforcement. The arbitrator
shall, in the award, allocate all of the costs of the arbitration, including
the fees of the arbitrator and the reasonable attorneys’ fees of the prevailing
party, against the party who did not prevail.

 

18.          Effectiveness

 

Except for Paragraph 10 of this Agreement, which shall be effective as
of the date hereof, this Agreement will take effect only upon, and subject to,
the Effective Time (as such term is defined in the Merger Agreement) of the
Merger.

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

5

 

REMEDY and Colleague have executed this Agreement as of the 10th
day of May 2006.

 

 

	
  REMEDYTEMP, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Monty
  A. Houdeshell

  	
   

  	
  /s/ Monty A. Houdeshell

  
	
  Supervisor Print Name

  	
   

  	
  Supervisor Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Colleague:

  	
  Gregory D. Palmer

  	
   

  	
  /s/
  Gregory D. Palmer

  
	
  Colleague Print Name

  	
   

  	
  Colleague Signature

  
	
   

  	
   

  	
   

  
					

 

Acknowledged and agreed

as of the 10th day of May 2006:

 

 

	
  By:

  	
  /s/
  D. Stephen Sorensen

  	
   

  
	
   

  	
  D. Stephen Sorensen

  	
   

  
	
   

  	
  President and Chief
  Executive Officer

  	
   

  

 

 

6

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