Document:

Prepared by MERRILL CORPORATION

Exhibit

10.1

 

SEPARATION AGREEMENT AND

GENERAL RELEASE

 

	

   

  	

   

  	

   

  	

   

  	

   

  
	

  This Agreement is

  entered into between Richard L. King (“Mr. King”) and Labor Ready, Inc.

  (together with its subsidiaries, the “Company”) as of this 9th day

  of October, 2001, in order to sever their employment relationship.  In consideration of the mutual promises

  below, the Company and Mr. King agree as follows:

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  1.              Termination of Employment.  Mr. King’s employment with the Company,

  and that certain Executive Employment Agreement between the Company and Mr.

  King dated May 16, 2000 (the “Employment Agreement”), were terminated

  effective as of September 20, 2001.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  2.              Compensation.  Subject to Mr. King’s compliance with all

  of the terms and conditions of this Agreement and as a material inducement to

  Mr. King to enter into this Agreement, the Company shall pay Mr. King the sum

  of One Hundred Thousand Dollars ($100,000.00) on or before seven (7) days

  after mutual execution hereof.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  3.              Continuation of Health

  Insurance.  Subject to Mr. King’s

  compliance with all of the terms and conditions of this Agreement and as a

  material inducement to Mr. King to enter into this Agreement, the Company

  shall continue to provide the health insurance coverage currently provided to

  Mr. King and his wife, until the earlier of (a) the date Mr. King secures

  employment with another employer, or (b) one (1) year after the date hereof.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  4.              Termination of Stock Options.           The parties acknowledge that the

  following represent all stock options granted Mr. King by the Company to

  date, and that no such options have heretofore been exercised:

  

 

	

   

  	

  Option Grant

  	

   

  	

  Grant Date

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  350,000 shares

  	

   

  	

  May 16, 2000

  
	

   

  	

  150,000 shares

  	

   

  	

  August 1, 2000

  
	

   

  	

  12,000 shares

  	

   

  	

  February 21, 2001

  
					

 

All said options shall be deemed terminated and of no further force or

effect as of the date hereof.

 

	

  5.              Additional Terms and

  Conditions. Mr. King expressly agrees to all of the following terms and

  conditions:

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  a)

  	

  Mr. King shall not issue or make any written or

  verbal statement to anyone which addresses the Company or his employment with

  the Company in a negative or derogatory manner.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  b)

  	

  Mr. King shall comply with all of the surviving

  covenants and provisions set forth in his Employment Contract.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  c)

  	

  Mr. King shall reasonably cooperate with the Company

  on an as-requested basis in any pending matters which in the Company’s

  reasonable judgment require Mr. King’s involvement.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  6.              Waiver and Release by Mr.

  King.     Mr. King expressly

  acknowledges that the payment and benefits provided for hereinabove

  constitutes sufficient consideration for any and all compensation and

  benefits due Mr. King as well as Mr. King’s promises set forth herein and the

  settlement, waiver, release and discharge of any and all claims arising under

  the Employment Agreement, common law, any federal, state and local statue or

  regulation, or otherwise. Mr. King represents that he has not filed any

  complaint, charge or action against the Company, its officers, agents or

  employees with any local, state or federal agency or court arising from his

  employment relationship with the Company. 

  Mr. King represents that he will not seek damages, monetary or

  otherwise, or any other type of relief through any such complaint at any time

  in the future. Mr. King, for himself and his successors and assigns, waives,

  releases and forever discharges the Company, its officers, directors, agents

  and employees of and from any and all claims, causes of action, rights,

  demands, debts, damages and actions of whatever nature arising from or

  relating to Mr. King’s employment relationship with the Company, including

  the termination of such relationship and the Employment Agreement, and also

  including any cause of action pertaining to employment discrimination based

  on age, race, creed, color, religion, sex, national origin or disability.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  7.              Opportunity to Review;

  Revocation.     Mr. King expressly

  acknowledges that the Company has encouraged and given him the opportunity to

  thoroughly discuss all aspects of this Agreement with his attorney or other

  advisor before signing and that he has thoroughly discussed or in the

  alternative has freely elected to waive any further opportunities to

  thoroughly discuss this Agreement with his attorney or other advisor.  Mr. King understands that he has fourteen

  (14) days to review this Agreement and determine whether or not to sign.  Signature prior to the expiration of 14

  days waives the remaining consideration period.  Mr. King has seven (7) days from the date this Agreement is

  executed to revoke the waiver of any claim under the Age Discrimination in

  Employment Act.  If Mr. King does not

  revoke the Agreement within the seven-day period, the Agreement shall become

  fully effective and the payment terms referred to herein shall become

  effective.  If Mr. King does revoke

  this Agreement, the Company’s payment obligation under this Agreement shall

  be null and void.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  8.              Knowing and Voluntary.     Mr. King expressly acknowledges that he

  understands all of the provisions of this Agreement, and that he is knowingly

  and voluntarily entering into this Agreement.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  9.              Governing Law.     This Agreement is made and entered into

  in the State of Washington and shall in all respects be interpreted, enforced

  and governed under the laws of this state.

  
							

 

	

  10.            Severability.     Should any provision of this Agreement

  be declared or be determined by any court of competent jurisdiction to be

  illegal, invalid, void or unenforceable, the legality, validity and

  enforceability of the remaining parts, terms or provisions shall not be

  affected thereby and any such illegal, unenforceable or invalid part, term or

  provision shall be deemed to be revised in the legal, enforceable and valid

  manner which most closely reflects the intention of the parties.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  11.            Entire Agreement.     This Agreement, along with all of the

  ongoing covenants of the Employment Contract, set forth the entire agreement

  between the parties and supersede any and all prior agreements or

  understandings between these parties pertaining to the subject matter hereof.

  

 

 

LABOR READY, INC.

 

 

	

  By:

  	

   

  	

   

  	

   

  
	

   

  	

  Joseph P. Sambataro, Jr

  	

  Richard L. King

  
	

   

  	

  President and Chief Executive OfficerPrepared by MERRILL CORPORATION

Exhibit

10.2

 

CONSULTING AGREEMENT

 

 

 

THIS AGREEMENT is made

and entered into as of October 9, 2001 by and between Labor Ready, Inc., a

Washington corporation (the “Company”), and Richard L. King (“Mr. King”).

 

WHEREAS Mr. King was President and Chief Executive Officer of the

Company from May, 2000 until September, 2001; and

 

WHEREAS, as a result of his experience with the Company and in previous

positions, Mr. King has developed certain valuable knowledge and expertise; and

 

WHEREAS the Company wishes to retain the services of Mr. King in a

consulting capacity, on the terms and conditions set forth below: and

 

WHEREAS King is willing to provide said services, on the terms and

conditions set forth below;

 

NOW, THEREFORE, in consideration of the foregoing, and for other good

and valuable consideration, receipt and sufficiency of which are hereby

acknowledged, the parties agree as follows:

 

	

  1.

  	

   

  	

  Consultation Services. Mr. King

  agrees to provide consultation to the Company during the term of this

  Agreement. Such consultation shall consist of communicating with, providing

  information to, advising and assisting the Company’s executive officers, upon

  the reasonable request of such officers from time to time. Such communication

  shall be primarily by telephone, e-mail and fax. However, it is further

  contemplated that Mr. King may travel to the Company’s headquarters to the

  extent necessary from time to time. The Company understands that Mr. King may

  relocate from the Tacoma area and/or obtain other employment, and recognizes

  that his availability for communication with and travel to the Company may be

  thereby constrained. However, Mr. King agrees to make reasonable efforts to

  accommodate the Company so as to provide the services contemplated hereby.

  
	

   

  	

   

  	

   

  
	

  2.

  	

   

  	

  Consulting Fee. As consideration

  for Mr. King’s agreement to provide consultation as set forth herein, the

  Company shall pay Mr. King a fee (the “Consulting Fee”) in the total amount

  of Three Hundred Twenty Five Thousand Dollars ($325,000.00), payable in equal

  bi-weekly installments throughout the term hereof. In addition, the Company

  shall reimburse Mr. King for all reasonable travel, telephone, postage and

  other out-of-pocket expenses incurred by Mr. King in providing services to

  the Company hereunder.

  

 

	

  3.

  	

   

  	

  Term. The term of this Agreement

  shall be for twelve months, commencing October 1, 2001 and expiring September

  30, 2002.

  
	

   

  	

   

  	

   

  
	

  4.

  	

   

  	

  Relationship of Parties. The

  parties intend that Mr. King shall be an independent contractor, and nothing

  herein shall be construed as an agreement for employment or any other

  relationship between the Company and Mr. King. Mr. King shall be responsible

  for all taxes and any other governmental assessments with respect to the

  Consulting Fee.

  
	

   

  	

   

  	

   

  
	

  5.

  	

   

  	

  Miscellaneous. This Agreement

  represents the entire agreement of the parties with respect to the subject

  matter hereof, and may only be amended in writing. Both parties acknowledge

  they have had the opportunity to seek the advice of independent legal counsel

  with respect to this Agreement. This Agreement shall be binding upon the

  parties hereto and their respective heirs, successors and assigns; provided,

  however, that Mr. King shall not assign any obligations hereunder. In the

  event of any legal action arising in connection with this Agreement, the

  prevailing party shall be entitled to its reasonable costs and attorneys fees

  from the other party. This Agreement shall be governed by the laws of the

  State of Washington without regard to choice of law principles. Venue for any

  such action shall be limited exclusively to the Washington State Superior

  Courts for Pierce County, or the United States District Court for the Western

  District of Washington at Tacoma.

  
	

   

  	

   

  	

   

  

 

IN WITNESS WHEREOF

the parties have executed this Agreement as of the date first set forth above.

 

LABOR READY, INC.

 

 

	

  By:

  	

   

  	

   

  	

   

  
	

   

  	

  Joseph P. Sambataro, Jr.

  	

   

  	

  Richard L. King

  
	

   

  	

  President and Chief Executive Officer

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