Exhibit 10.4
EXECUTIVE EMPLOYMENT AGREEMENT
This Agreement is between Derrek L. Gafford ("Executive") and Labor Ready, Inc.
or the Labor Ready, Inc. subsidiary employing Executive ("Labor Ready" or
"Company"), and is effective as of December 31, 2006.
I.
COMPENSATION AND POSITION.
A.
EMPLOYMENT.
EXECUTIVE HAS SERVED IN A MANAGEMENT OR EXECUTIVE CAPACITY WITH LABOR READY,
INC. SINCE FEBRUARY 25, 2002 AND AS OF THE DATE OF THIS AGREEMENT SERVES IN THE
ROLE OF EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER.
IN THIS CAPACITY,
EXECUTIVE HAS SERVED A KEY ROLE ON THE EXECUTIVE TEAM AND HAS HAD COMPANY-WIDE
MANAGEMENT RESPONSIBILITY, INCLUDING RESPONSIBILITY FOR AFFILIATES OF LABOR
READY.
EXECUTIVE WISHES TO CONTINUE EMPLOYMENT WITH LABOR READY AND LABOR READY
WISHES TO CONTINUE TO EMPLOY EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER
UNDER THE TERMS AND CONDITIONS STATED IN THIS AGREEMENT.
ADDITIONALLY,
EXECUTIVE HAS HAD AND IS EXPECTED TO CONTINUE TO HAVE ACCESS TO CONFIDENTIAL AND
PROPRIETY INFORMATION OF LABOR READY WHICH IS VITAL TO THE ABILITY OF LABOR
READY AND ITS AFFILIATES TO COMPETE IN ALL OF ITS LOCATIONS.
EXECUTIVE'S
ENTERING INTO THIS AGREEMENT IS A CONDITION OF CONTINUED EMPLOYMENT AND
CONTINUED ACCESS TO SUCH MATERIALS.
VALUABLE CONSIDERATION, INCLUDING THE
MUTUAL COVENANTS AND PROMISES CONTAINED HEREIN, INCLUDING, WITHOUT LIMIT, THE
TERMS OF SECTION II(A)(2), IS PROVIDED TO EXECUTIVE TO ENTER THIS AGREEMENT, THE
SUFFICIENCY OF WHICH IS EXPRESSLY ACKNOWLEDGED.
B.
EFFECTIVE DATE.
THE TERMS AND CONDITIONS OF THIS AGREEMENT SHALL BECOME EFFECTIVE AS OF THE DATE
WRITTEN ABOVE, PROVIDED THAT EXECUTIVE HAS VOLUNTARILY ACCEPTED AND EXECUTED
LABOR READY'S NON-COMPETITION AGREEMENT (PROVIDED HEREWITH).
ACCEPTANCE AND
EXECUTION OF LABOR READY'S NON-COMPETITION AGREEMENT IS A CONDITION OF CONTINUED
EMPLOYMENT AND IS A CONDITION PRECEDENT TO THE ENFORCEABILITY OF THIS AGREEMENT.
C.
COMPENSATION.
EXECUTIVE'S COMPENSATION, SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THIS
AGREEMENT, IS AS FOLLOWS:
1.
Annual Base Salary.
Executive will receive a salary in the gross
amount of $250,000.00 per year.
This position is a salaried position which is
exempt under the Fair Labor Standards Act and relevant state law. This salary is
in compensation for all work performed by Executive.
Executive warrants and
acknowledges that Executive is not entitled to "overtime" pay.
Company may
withhold from any amounts payable under this Agreement all federal, state, city
or other taxes as Company is required to withhold pursuant to any applicable
law, regulation or ruling and other customary and usual deductions.
2.
Bonus. Subject to the conditions set forth below, Executive will
be eligible for a bonus, under and subject to the bonus plan in effect for
executives for the relevant year ("Bonus Plan").
Executive must be employed by
Labor Ready on date of payment and have met all of
the requirements of the Bonus Plan to receive the bonus.
The Bonus Plan and all
aspects of bonus compensation may be changed at the discretion of the
Compensation Committee and/or the Board of Directors.
3.
Equity Awards.
Executive will be eligible for awards in
accordance with any applicable equity plan approved by the