Document:

March 12, 2001

Barrett Business Services, Inc.
March 12, 2001
Page 3

BARRETT BUSINESS SERVICES, INC.
4724 SW Macadam Avenue
Portland, OR  97201

Dear Mike:

      This letter amendment (this  "Amendment") is to confirm the changes agreed
upon  between  WELLS  FARGO  BANK,  NATIONAL  ASSOCIATION  ("Bank")  and BARRETT
BUSINESS SERVICES, INC. ("Borrower") to the terms and conditions of that certain
letter agreement  between Bank and Borrower dated as of May 31, 2000, as amended
from time to time (the "Agreement"). For valuable consideration, the receipt and
sufficiency  of which are hereby  acknowledged,  Bank and Borrower  hereby agree
that the Agreement shall be amended as follows to reflect said changes.

      1. The Agreement is hereby amended by deleting  "Fifteen  Million  Dollars
($15,000,000.00)"  as the maximum  principal  amount available under the Line of
Credit,   and  by  substituting  for  said  amount  "Thirteen   Million  Dollars
($13,000,000.00),"  with such  change to be  effective  upon the  execution  and
delivery to Bank of a  promissory  note  substantially  in the form of Exhibit A
attached  hereto (which  promissory note shall replace and be deemed the Line of
Credit  Note  defined  in and made  pursuant  to the  Agreement)  and all  other
contracts, instruments and documents required by Bank to evidence such change.

      2.    Paragraph I.4 is hereby amended by adding thereto the following,
as the first subparagraph thereof:

            "As security for all indebtedness of Borrower to Bank under the Line
      of Credit,  Borrower  hereby  grants to Bank a lien of not less than first
      priority  in all  its  rights  to  payment  from  customers  and  accounts
      receivable  arising from services  rendered or to be rendered,  whether or
      not the same  has  been  earned  by  performance,  all  rights  under  any
      contracts  it has  or  may  have  with  its  customers,  all  its  general
      intangibles  directly associated with only the foregoing,  and proceeds of
      all of the foregoing."

      3.    Paragraph V.9 is hereby deleted in its entirety, and the
following substituted therefor:

            "9.    Financial Condition.  Maintain Borrower's financial
                   -------------------
     condition as follows using generally accepted accounting principles
     consistently applied and used consistently with prior practices (except
     to the extent modified by the definitions herein):

            (a) Current  Ratio as of the end of each  fiscal  quarter not at any
     time less than 1.10 to 1.0, with "Current  Ratio"  defined as total current
     assets divided by total current liabilities.

            (b) EBITDA not less than  $5,750,000.00  as of each  fiscal  quarter
     end,  determined on a trailing four  quarters  basis  including the current
     quarter then ended,  with  "EBITDA"  defined as net income  before tax plus
     interest  expense  (net  of  capitalized

                                       1
<PAGE>
Barret Business Services, Inc.
March 12 2001
Page 2

     interest expense),  depreciation  expense and amortization  expense for the
     trailing four quarters, including the current quarter then ended.

            (c) Funded Debt to EBITDA Ratio not more than 2.25 to 1.0 as of each
     fiscal  quarter end, with "Funded Debt" defined as all borrowed  funds plus
     the amount of all capitalized  lease  obligations of Borrower,  "EBITDA" as
     defined  above,  and "Funded Debt to EBITDA  Ratio"  defined as Funded Debt
     divided by EBITDA.

            (d)  EBITDA  Coverage  Ratio  not less  than  1.50 to 1.0 as of each
     fiscal  quarter  end,  with  "EBITDA" as defined  above,  and with  "EBITDA
     Coverage  Ratio"  defined as EBITDA  divided by the  aggregate of (i) total
     interest  expense for the trailing  four  quarters,  including  the current
     quarter then ended,  plus (ii)  scheduled  principal  payments on long-term
     debt for the trailing four  quarters,  including  the current  quarter then
     ended.

            (e) Outstanding Line Liabilities not greater than sixty-five percent
     (65%) of Borrower's  trade  accounts  receivable as of each fiscal  quarter
     end, with "Outstanding Line Liabilities" defined as outstanding  borrowings
     under the Line of Credit  plus the face  amount of  outstanding  Letters of
     Credit ."

      4.    Paragraph V.10 is hereby deleted in its entirety, and the
following substituted therefor:

            "10. Other  Indebtedness.  Create,  incur, assume or permit to exist
      any  indebtedness  or  liabilities  resulting  from  borrowings,  loans or
      advances, whether secured or unsecured,  matured or unmatured,  liquidated
      or unliquidated,  joint or several, except (a) the liabilities of Borrower
      to Bank,  (b) any  other  liabilities  of  Borrower  existing  as of,  and
      disclosed to Bank prior to, the date hereof, (c) unsecured  liabilities of
      Borrower to sellers of companies acquired by Borrower,  the total of which
      shall not exceed an aggregate  of  $3,500,000.00,  and (d) purchase  money
      indebtedness for equipment or real estate."

      5.    Paragraph V.14 is hereby deleted in its entirety, and the
following substituted therefor:

            "14.  Pledge of Assets.  Not  mortgage,  pledge,  grant or permit to
      exist  a  security  interest  in,  or lien  upon,  all or any  portion  of
      Borrower's assets now owned or hereafter  acquired,  except (a) any of the
      foregoing in favor of Bank or which are  existing as of, and  disclosed to
      Bank in writing  prior to, the date hereof,  (b) purchase  money  security
      interests securing purchase money indebtedness  permitted  hereunder,  and
      (c) other security  interests for the purchase or lease of tangible assets
      securing an aggregate principal amount not to exceed $25,000.00."

      6. Except as specifically provided herein, all terms and conditions of the
Agreement remain in full force and effect,  without waiver or modification.  All
terms  defined in the  Agreement  shall have the same  meaning when used herein.
This Amendment and the Agreement shall be read together, as one document.

      7. Borrower hereby remakes all representations and warranties contained in
the Agreement and reaffirms all covenants set forth  therein.  Borrower  further
certifies that as of the date of Borrower's acknowledgment set forth below there
exists no  default  or  defined  event of  default  under the  Agreement  or any
promissory note or other contract, instrument or document

<PAGE>
Barret Business Services, Inc.
March 12 2001
Page 3

executed in connection therewith, nor any condition, act or event which with the
giving of notice or the passage of time or both would  constitute such a default
or defined event of default.

UNDER OREGON LAW, MOST  AGREEMENTS,  PROMISES AND COMMITMENTS MADE BY BANK AFTER
OCTOBER 3, 1989 CONCERNING  LOANS AND OTHER CREDIT  EXTENSIONS WHICH ARE NOT FOR
PERSONAL,  FAMILY OR  HOUSEHOLD  PURPOSES  OR SECURED  SOLELY BY THE  BORROWER'S
RESIDENCE MUST BE IN WRITING,  EXPRESS CONSIDERATION AND BE SIGNED BY BANK TO BE
ENFORCEABLE.

      Your  acknowledgment of this Amendment shall constitute  acceptance of the
foregoing terms and conditions.

                                      Sincerely,

                                      WELLS FARGO BANK,
                                         NATIONAL ASSOCIATION

                                      By: /s/ Julie Wilson
                                         ---------------------
                                         Julie Wilson
                                         Vice President

Acknowledged and accepted as of March 20, 2001:

BARRETT BUSINESS SERVICES, INC.

By: /s/ Michael D. Mulholland
   ----------------------------
   Michael D. Mulholland
   Vice President-Finance

<PAGE>

                          REVOLVING LINE OF CREDIT NOTE

$13,000,000.00                                                Portland, Oregon
                                                                March 12, 2001

FOR VALUE RECEIVED,  the undersigned BARRETT BUSINESS SYSTEMS, INC. ("Borrower")
promises to pay to the order of WELLS FARGO BANK, NATIONAL  ASSOCIATION ("Bank")
at its office at 1300 S. W. Fifth Avenue,  T-13,  Portland,  Oregon,  or at such
other place as the holder  hereof may  designate,  in lawful money of the United
States of America and in  immediately  available  funds,  the  principal  sum of
Thirteen Million Dollars ($13,000,000.00), or so much thereof as may be advanced
and be outstanding,  with interest thereon,  to be computed on each advance from
the date of its disbursement as set forth herein.

DEFINITIONS:

      As used  herein,  the  following  terms shall have the  meanings set forth
after each,  and any other term  defined in this Note shall have the meaning set
forth at the place defined:

      (a)  "Business  Day" means any day except a Saturday,  Sunday or any other
day on which  commercial  banks in Oregon are  authorized  or required by law to
close.

      (b) "Fixed  Rate Term"  means a period  commencing  on a Business  Day and
continuing for one (1), two (2), or three (3) months, as designated by Borrower,
during which all or a portion of the outstanding  principal balance of this Note
bears interest determined in relation to LIBOR;  provided however, that no Fixed
Rate Term may be selected for a principal amount less than Five Hundred Thousand
Dollars  ($500,000.00);  and  provided  further,  that no Fixed  Rate Term shall
extend beyond the scheduled  maturity date hereof.  If any Fixed Rate Term would
end on a day which is not a  Business  Day,  then such  Fixed Rate Term shall be
extended to the next succeeding Business Day.

      (c) "LIBOR" means the rate per annum (rounded upward, if necessary, to the
nearest whole 1/8 of 1%) and determined pursuant to the following formula:

                  LIBOR =           Base LIBOR
                          --------------------------------
                          100% - LIBOR Reserve Percentage

      (i)  "Base  LIBOR"  means  the rate per annum  for  United  States  dollar
deposits  quoted  by  Bank as the  Inter-Bank  Market  Offered  Rate,  with  the
understanding  that such rate is quoted by Bank for the  purpose of  calculating
effective rates of interest for loans making reference thereto, on the first day
of a Fixed  Rate  Term for  delivery  of funds on said date for a period of time
approximately  equal to the  number  of days in such  Fixed  Rate Term and in an
amount approximately equal to the principal amount to which such Fixed Rate Term
applies. Borrower understands and agrees that Bank may base its quotation of the
Inter-Bank  Market  Offered Rate upon such offers or other market  indicators of
the Inter-Bank Market as Bank in its discretion deems appropriate including, but
not  limited  to,  the rate  offered  for U.S.  dollar  deposits  on the  London
Inter-Bank Market.

      (ii) "LIBOR Reserve Percentage" means the reserve percentage prescribed by
the Board of  Governors of the Federal  Reserve  System (or any  successor)  for
"Eurocurrency

                                      -1-
<PAGE>

Liabilities"  (as defined in  Regulation  D of the  Federal  Reserve  Board,  as
amended),  adjusted  by Bank for  expected  changes in such  reserve  percentage
during the applicable Fixed Rate Term.

      (d) "Prime  Rate"  means at any time the rate of  interest  most  recently
announced  within  Bank at its  principal  office  as its Prime  Rate,  with the
understanding  that the Prime Rate is one of Bank's base rates and serves as the
basis upon which  effective  rates of interest  are  calculated  for those loans
making reference  thereto,  and is evidenced by the recording  thereof after its
announcement in such internal publication or publications as Bank may designate.

INTEREST:

      (a) Interest.  The outstanding  principal  balance of this Note shall bear
interest  (computed on the basis of a 360-day year,  actual days elapsed) either
(i) at a fluctuating  rate per annum one and  seven-tenths  percent (1.7%) below
the Prime  Rate in effect  from time to time,  or (ii) at a fixed rate per annum
determined by Bank to be one percent (1%) above LIBOR in effect on the first day
of the  applicable  Fixed Rate Term.  When interest is determined in relation to
the Prime  Rate,  each  change in the rate of interest  hereunder  shall  become
effective  on the date each Prime Rate change is  announced  within  Bank.  With
respect to each LIBOR selection hereunder, Bank is hereby authorized to note the
date, principal amount, interest rate and Fixed Rate Term applicable thereto and
any payments  made thereon on Bank's  books and records  (either  manually or by
electronic  entry) and/or on any schedule attached to this Note, which notations
shall be prima facie evidence of the accuracy of the information noted.

      (b) Selection of Interest  Rate  Options.  At any time any portion of this
Note bears  interest  determined  in relation to LIBOR,  it may be  continued by
Borrower at the end of the Fixed Rate Term  applicable  thereto so that all or a
portion  thereof bears  interest  determined in relation to the Prime Rate or to
LIBOR for a new Fixed Rate Term designated by Borrower.  At any time any portion
of this Note bears interest  determined in relation to the Prime Rate,  Borrower
may convert all or a portion  thereof so that it bears  interest  determined  in
relation to LIBOR for a Fixed Rate Term designated by Borrower.  At such time as
Borrower  requests an advance  hereunder  or wishes to select a LIBOR option for
all or a portion of the outstanding  principal balance hereof, and at the end of
each Fixed Rate  Term,  Borrower  shall  give Bank  notice  specifying:  (i) the
interest rate option  selected by Borrower;  (ii) the principal  amount  subject
thereto; and (iii) for each LIBOR selection,  the length of the applicable Fixed
Rate Term.  Any such notice may be given by telephone (or such other  electronic
method as Bank may permit) so long as, with respect to each LIBOR selection, (A)
if requested by Bank, Borrower provides to Bank written confirmation thereof not
later than three (3)  Business  Days  after such  notice is given,  and (B) such
notice is given to Bank prior to 10:00  a.m.  on the first day of the Fixed Rate
Term,  or at a later time during any Business  Day if Bank,  at it's sole option
but without  obligation to do so, accepts  Borrower's  notice and quotes a fixed
rate to  Borrower.  If Borrower  does not  immediately  accept a fixed rate when
quoted by Bank,  the quoted rate shall expire and any  subsequent  LIBOR request
from Borrower  shall be subject to a  redetermination  by Bank of the applicable
fixed  rate.  If no  specific  designation  of  interest is made at the time any
advance is requested  hereunder  or at the end of any Fixed Rate Term,  Borrower
shall be deemed to have made a Prime Rate interest selection for such advance or
the principal amount to which such Fixed Rate Term applied.

      (c) Taxes and Regulatory  Costs.  Borrower  shall pay to Bank  immediately
upon demand,  in addition to any other  amounts due or to become due  hereunder,
any and all (i) withholdings,  interest equalization taxes, stamp taxes or other
taxes  (except  income and franchise  taxes)  imposed by any domestic or foreign
governmental  authority  and  related in any

                                      -2-
<PAGE>

manner to LIBOR,  and (ii) future,  supplemental,  emergency or other changes in
the LIBOR Reserve  Percentage,  assessment  rates imposed by the Federal Deposit
Insurance Corporation,  or similar requirements or costs imposed by any domestic
or foreign governmental  authority or resulting from compliance by Bank with any
request or  directive  (whether or not having the force of law) from any central
bank or other  governmental  authority and related in any manner to LIBOR to the
extent they are not included in the calculation of LIBOR.  In determining  which
of the  foregoing  are  attributable  to any LIBOR option  available to Borrower
hereunder,  any reasonable allocation made by Bank among its operations shall be
conclusive and binding upon Borrower.

      (d) Payment of Interest. Interest accrued on this Note shall be payable on
the first day of each month, commencing April 1, 2001.

      (e) Default  Interest.  From and after the maturity  date of this Note, or
such earlier date as all principal  owing  hereunder  becomes due and payable by
acceleration or otherwise,  the outstanding principal balance of this Note shall
bear interest until paid in full at an increased rate per annum (computed on the
basis of a 360-day year,  actual days elapsed)  equal to four percent (4%) above
the rate of interest from time to time applicable to this Note.

BORROWING AND REPAYMENT:

      (a)  Borrowing  and  Repayment.  Borrower may from time to time during the
term of this Note borrow,  partially or wholly repay its outstanding borrowings,
and reborrow,  subject to all of the  limitations,  terms and conditions of this
Note and of any document  executed in  connection  with or governing  this Note;
provided however,  that the total  outstanding  borrowings under this Note shall
not at any time exceed the principal  amount stated above.  The unpaid principal
balance  of this  obligation  at any time  shall be the total  amounts  advanced
hereunder by the holder hereof less the amount of principal payments made hereon
by or for any Borrower,  which balance may be endorsed  hereon from time to time
by the holder.  The outstanding  principal balance of this Note shall be due and
payable in full on May 31, 2001.

      (b) Advances. Advances hereunder, to the total amount of the principal sum
stated  above,  may be made by the holder at the oral or written  request of (i)
William W. Sherertz, Jr. or Michael D. Mulholland, any one acting alone, who are
authorized to request  advances and direct the disposition of any advances until
written  notice of the revocation of such authority is received by the holder at
the office  designated  above,  or (ii) any  person,  with  respect to  advances
deposited to the credit of any deposit account of any Borrower,  which advances,
when so deposited,  shall be  conclusively  presumed to have been made to or for
the benefit of each  Borrower  regardless  of the fact that  persons  other than
those  authorized  to request  advances may have  authority to draw against such
account.  The holder shall have no  obligation  to determine  whether any person
requesting an advance is or has been authorized by any Borrower.

      (c)  Application  of  Payments.  Each  payment  made on this Note shall be
credited  first,  to any  interest  then  due  and  second,  to the  outstanding
principal  balance hereof.  All payments  credited to principal shall be applied
first,  to the outstanding  principal  balance of this Note which bears interest
determined in relation to the Prime Rate, if any, and second, to the outstanding
principal  balance of this Note which bears  interest  determined in relation to
LIBOR, with such payments applied to the oldest Fixed Rate Term first.

                                      -3-
<PAGE>

PREPAYMENT:

      (a)   Prime Rate.  Borrower may prepay principal on any portion of this
            ----------
Note which bears interest determined in relation to the Prime Rate at any
time, in any amount and without penalty.

      (b)   LIBOR. Borrower may prepay principal on any portion of this Note
            -----
which  bears  interest  determined  in  relation to LIBOR at any time and in the
minimum amount of One Hundred Thousand Dollars ($100,000.00);  provided however,
that if the outstanding  principal  balance of such portion of this Note is less
than said amount,  the minimum prepayment amount shall be the entire outstanding
principal  balance  thereof.  In consideration of Bank providing this prepayment
option to  Borrower,  or if any such  portion of this Note shall  become due and
payable  at any time  prior to the last day of the Fixed  Rate  Term  applicable
thereto by  acceleration  or otherwise,  Borrower shall pay to Bank  immediately
upon demand a fee which is the sum of the  discounted  monthly  differences  for
each month from the month of  prepayment  through  the month in which such Fixed
Rate Term matures, calculated as follows for each such month:

        (i)    Determine  the amount of interest  which would have  accrued each
               month on the amount  prepaid at the interest  rate  applicable to
               such amount had it remained outstanding until the last day of the
               Fixed Rate Term applicable thereto.

       (ii)    Subtract  from the amount  determined  in (i) above the amount of
               interest  which  would  have  accrued  for the same  month on the
               amount  prepaid for the remaining term of such Fixed Rate Term at
               LIBOR in effect on the date of prepayment  for new loans made for
               such term and in a principal amount equal to the amount prepaid.

      (iii)    If the  result  obtained  in (ii) for any month is  greater  than
               zero, discount that difference by LIBOR used in (ii) above.

Each  Borrower  acknowledges  that  prepayment of such amount may result in Bank
incurring  additional  costs,  expenses  and/or  liabilities,  and  that  it  is
difficult  to  ascertain  the  full  extent  of  such  costs,   expenses  and/or
liabilities.  Each  Borrower,  therefore,  agrees  to  pay  the  above-described
prepayment fee and agrees that said amount  represents a reasonable  estimate of
the prepayment costs,  expenses and/or liabilities of Bank. If Borrower fails to
pay any  prepayment  fee when  due,  the  amount  of such  prepayment  fee shall
thereafter  bear interest  until paid at a rate per annum two percent (2%) above
the Prime Rate in effect from time to time  (computed  on the basis of a 360-day
year, actual days elapsed). Each change in the rate of interest on any such past
due prepayment fee shall become  effective on the date each Prime Rate change is
announced within Bank.

EVENTS OF DEFAULT:

      The  occurrence  of any of the  following  shall  constitute  an "Event of
Default" under this Note:

      (a) The failure to pay any principal, interest, fees or other charges when
due  hereunder  or under  any  contract,  instrument  or  document  executed  in
connection with this Note.

                                      -4-
<PAGE>

      (b) The filing of a petition by or against any Borrower,  any guarantor of
this Note or any general  partner or joint  venturer in any Borrower  which is a
partnership or a joint venture (with each such guarantor, general partner and/or
joint  venturer  referred  to  herein  as a "Third  Party  Obligor")  under  any
provisions of the Bankruptcy  Reform Act, Title 11 of the United States Code, as
amended  or  recodified  from time to time,  or under any  similar  or other law
relating to bankruptcy, insolvency,  reorganization or other relief for debtors;
the  appointment of a receiver,  trustee,  custodian or liquidator of or for any
part of the assets or property  of any  Borrower  or Third  Party  Obligor;  any
Borrower or Third Party Obligor becomes  insolvent,  makes a general  assignment
for the benefit of creditors or is generally not paying its debts as they become
due; or any  attachment  or like levy on any  property of any  Borrower or Third
Party Obligor.

      (c) The death or  incapacity  of any  individual  Borrower  or Third Party
Obligor,  or the  dissolution  or  liquidation  of any  Borrower  or Third Party
Obligor  which is a  corporation,  partnership,  joint  venture or other type of
entity.

      (d) Any default in the payment or  performance of any  obligation,  or any
defined event of default,  under any  provisions of any contract,  instrument or
document  pursuant to which any Borrower or Third Party Obligor has incurred any
obligation for borrowed money, any purchase  obligation,  or any other liability
of any kind to any person or entity,  including the holder;  provided,  however,
that any cure period applicable to such default has expired, and with respect to
a default  under any  obligation  to any person or entity  other than Bank,  the
amount of the debts or other liabilities in default exceeds $2,000,000.00 in the
aggregate.

      (e) Any  financial  statement  provided  by any  Borrower  or Third  Party
Obligor to Bank proves to be  incorrect,  false or  misleading  in any  material
respect.

      (f) Any sale or transfer of all or a  substantial  or material part of the
assets of any Borrower or Third Party Obligor other than in the ordinary  course
of its business.

      (g) Any  violation or breach of any  provision of, or any defined event of
default  under,  any  addendum  to this  Note or any loan  agreement,  guaranty,
security  agreement,  deed of trust,  mortgage  or other  document  executed  in
connection  with or securing this Note,  which,  if such  violation or breach is
curable,  in not cured  within  the  earlier  to occur of (i) 30 days  after the
occurrence thereof or (ii) any applicable cure period expressly provided in such
document.

MISCELLANEOUS:

      (a) Remedies.  Upon the occurrence of any Event of Default,  the holder of
this Note,  at the  holder's  option,  may  declare  all sums of  principal  and
interest  outstanding  hereunder  to be  immediately  due  and  payable  without
presentment,  demand,  notice of nonperformance,  notice of protest,  protest or
notice of dishonor,  all of which are expressly waived by each Borrower, and the
obligation,  if any, of the holder to extend any further credit  hereunder shall
immediately  cease  and  terminate.  Each  Borrower  shall  pay  to  the  holder
immediately  upon demand the full  amount of all  payments,  advances,  charges,
costs and expenses,  including  reasonable  attorneys'  fees (to include outside
counsel fees and all allocated costs of the holder's in-house counsel), expended
or incurred by the holder in  connection  with the  enforcement  of the holder's
rights and/or the collection of any amounts which become due to the holder under
this Note,  and the  prosecution  or defense of any action in any way related to
this Note,  including  without  limitation,  any action for declaratory  relief,
whether incurred at the trial or appellate  level, in an arbitration  proceeding
or otherwise, and including any of the

                                      -5-
<PAGE>

foregoing  incurred in  connection  with any  bankruptcy  proceeding  (including
without limitation, any adversary proceeding, contested matter or motion brought
by Bank or any other  person)  relating to any  Borrower or any other  person or
entity.

      (b)   Obligations Joint and Several.  Should more than one person or
            -----------------------------
entity sign this Note as a Borrower, the obligations of each such Borrower
shall be joint and several.

      (c)   Governing Law.  This Note shall be governed by and construed in
            -------------
accordance with the laws of the State of Oregon.

UNDER OREGON LAW, MOST  AGREEMENTS,  PROMISES AND COMMITMENTS MADE BY BANK AFTER
OCTOBER 3, 1989 CONCERNING  LOANS AND OTHER CREDIT  EXTENSIONS WHICH ARE NOT FOR
PERSONAL,  FAMILY OR  HOUSEHOLD  PURPOSES  OR SECURED  SOLELY BY THE  BORROWER'S
RESIDENCE MUST BE IN WRITING,  EXPRESS CONSIDERATION AND BE SIGNED BY BANK TO BE
ENFORCEABLE.

      IN WITNESS WHEREOF,  the undersigned has executed this Note as of the date
first written above.

BARRETT BUSINESS SERVICES, INC.

By: /s/ Michael D. Mulholland
   --------------------------
   Michael D. Mulholland
   Vice President-Finance

<PAGE>

                         CONTINUING SECURITY AGREEMENT:
                                RIGHTS TO PAYMENT

        1. GRANT  OF  SECURITY  INTEREST.  For  valuable   consideration,    the
undersigned  BARRETT  BUSINESS  SERVICES,  INC.  ("Debtor"),  hereby  grants and
transfers to WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank") a security interest
in all its rights to payment from customers and accounts receivable arising from
services rendered or to be rendered,  whether or not the same has been earned by
performance,  all  rights  under  any  contracts  it has or may  have  with  its
customers,  and all its general  intangibles  directly  associated with only the
foregoing  (collectively  called  "Collateral"),  now  existing  or at any  time
hereafter and prior to the termination hereof arising, together with whatever is
receivable or received when any of the Collateral or proceeds  thereof are sold,
collected,  exchanged or  otherwise  disposed of,  whether such  disposition  is
voluntary or involuntary,  including without  limitation,  all rights to payment
with  respect  to any  cause  of  action  affecting  or  relating  to any of the
foregoing (hereinafter called "Proceeds").

        2. OBLIGATIONS  SECURED.  The obligations secured hereby are the payment
and performance  of: (a) all present and future  Indebtedness of Debtor to Bank;
(b) all obligations of Debtor and rights of Bank under this  Agreement;  and (c)
all present and future  obligations  of Debtor to Bank of other kinds.  The word
"Indebtedness" is used herein in its most  comprehensive  sense and includes any
and all advances,  debts, obligations and liabilities of Debtor, or any of them,
heretofore,  now or hereafter made,  incurred or created,  whether  voluntary or
involuntary and however arising, whether due or not due, absolute or contingent,
liquidated or unliquidated,  determined or undetermined,  and whether Debtor may
be liable  individually  or jointly with others,  or whether  recovery upon such
Indebtedness may be or hereafter becomes unenforceable.

        3. TERMINATION.  This Agreement will terminate upon the  performance  of
all obligations of Debtor to Bank, including without limitation,  the payment of
all  Indebtedness  of Debtor to Bank, and the  termination of all commitments of
Bank to extend  credit to Debtor,  existing  at the time Bank  receives  written
notice from Debtor of the termination of this Agreement.

        4. OBLIGATIONS OF BANK.  Bank   has  no  obligation  to  make  any loans
hereunder.  Any money  received  by Bank in  respect  of the  Collateral  may be
deposited,  at Bank's  option,  into a non-interest  bearing  account over which
Debtor shall have no control,  and the same shall,  for all purposes,  be deemed
Collateral hereunder.

        5. REPRESENTATIONS  AND WARRANTIES.  Debtor  represents and warrants to
Bank  that:  (a)  Debtor is the  owner  and has  possession  or  control  of the
Collateral and Proceeds;  (b) Debtor has the right to grant a security  interest
in the  Collateral  and Proceeds;  (c) all  Collateral and Proceeds are genuine,
free from liens,  adverse claims,  setoffs,  default,  prepayment,  defenses and
conditions precedent of any kind or character, except the lien created hereby or
as otherwise agreed to by Bank, or as heretofore disclosed by Debtor to Bank, in
writing;  (d) all  statements  contained  herein and, where  applicable,  in the
Collateral  are true and  complete in all  material  respects;  (e) no financing
statement  covering any of the  Collateral  or Proceeds,  and naming any secured
party  other  than  Bank,  is on  file in any  public  office;  (f) all  persons
appearing to be obligated on Collateral and Proceeds

                                      -1-
<PAGE>

have  authority and capacity to contract and are bound as they appear to be; and
(g) all Collateral and Proceeds comply with all applicable laws concerning form,
content and manner of preparation  and  execution,  including  where  applicable
Federal Reserve Regulation Z and any State consumer credit laws.

        6.  COVENANTS OF DEBTOR

        (a) Debtor agrees in general:  (i) to pay  Indebtedness  secured  hereby
when  due;  (ii)  to  indemnify  Bank  against  all  losses,  claims,   demands,
liabilities and expenses of every kind caused by property subject hereto;  (iii)
to pay all costs and expenses, including reasonable attorneys' fees, incurred by
Bank in the perfection  and  preservation  of the Collateral or Bank's  interest
therein  and/or the  realization,  enforcement  and  exercise of Bank's  rights,
powers and remedies  hereunder;  (iv) to permit Bank to exercise its powers; (v)
to execute and deliver such documents as Bank deems necessary to create, perfect
and continue the security interests  contemplated hereby; and (vi) not to change
its  chief  place of  business  or the  places  where  Debtor  keeps  any of the
Collateral or Debtor's  records  concerning the Collateral and Proceeds  without
first giving Bank written notice of the address to which Debtor is moving same.

        (b) Debtor agrees with regard to the  Collateral  and  Proceeds,  unless
Bank agrees otherwise in writing: (i) where applicable, to insure the Collateral
with Bank as loss payee,  in form,  substance  and  amounts,  under  agreements,
against risks and  liabilities,  and with insurance  companies  satisfactory  to
Bank; (ii) not to permit any lien on the Collateral or Proceeds, except in favor
of Bank; (iii) not to sell,  hypothecate or otherwise dispose of, nor permit the
transfer  by  operation  of law of, any of the  Collateral  or  Proceeds  or any
interest therein; (iv) to keep, in accordance with generally accepted accounting
principles, complete and accurate records regarding all Collateral and Proceeds,
and to permit Bank to inspect the same and make copies thereof at any reasonable
time;  (v) if  requested  by Bank,  to receive and use  reasonable  diligence to
collect  Proceeds,  in trust and as the  property  of Bank,  and to  immediately
endorse as appropriate and deliver such Proceeds to Bank daily in the exact form
in  which  they  are  received   together  with  a  collection  report  in  form
satisfactory  to  Bank;  (vi)  not  to  commingle  Collateral  or  Proceeds,  or
collections  thereunder,  with other property (except that prior to any Event of
Default  hereunder  Debtor  shall be  permitted  to deposit  collections  in its
general bank accounts;  (vii) to give only normal  allowances and credits and to
advise Bank  thereof  immediately  in writing if they affect any  Collateral  or
Proceeds in any material  respect;  (viii) from time to time,  when requested by
Bank, to prepare and deliver a schedule of all Collateral  and Proceeds  subject
to this  Agreement  and to assign in writing  and  deliver  to Bank all  related
contracts,  documents and other evidences thereof; (ix) in the event Bank elects
to receive  payments of  Collateral or Proceeds  hereunder,  to pay all expenses
incurred by Bank in  connection  therewith,  including  expenses of  accounting,
correspondence,  collection  efforts,  reporting to account or contract debtors,
filing,  recording,  record keeping and expenses incidental thereto;  and (x) to
provide  any service  and do any other acts which may be  necessary  to keep all
Collateral  and Proceeds  free and clear of all  defenses,  rights of offset and
counterclaims.

        7. POWERS OF BANK.  Debtor  appoints  Bank its true  attorney in fact to
perform any of the  following  powers,  which are coupled with an interest,  are
irrevocable  until  termination of this Agreement and may be exercised from time
to time by Bank's officers and employees,  or any of them, whether or not Debtor
is in default:  (a) to perform any  obligation  of Debtor  hereunder in Debtor's
name or  otherwise;  (b) to give  notice to account  debtors or others of Bank's
rights in the  Collateral  and Proceeds,  to enforce the same and make extension
agreements with respect thereto;  (c) to release persons liable on Collateral or
Proceeds  and to

                                      -2-
<PAGE>

give receipts and acquittances and compromise disputes in connection  therewith;
(d) to release security; (e) to resort to security in any order; (f) to prepare,
execute,  file,  record or deliver notes,  assignments,  schedules,  designation
statements,   financing   statements,   continuation   statements,   termination
statements,  statements of assignment,  applications  for  registration  or like
papers to perfect,  preserve or release  Bank's  interest in the  Collateral and
Proceeds;  (g) to receive,  open and read mail addressed to Debtor;  (h) to take
cash,  instruments  for the payment of money and other property to which Bank is
entitled;  (i) to verify facts concerning the Collateral and Proceeds by inquiry
of obligors thereon, or otherwise,  in its own name or a fictitious name; (j) to
endorse,  collect, deliver and receive payment under instruments for the payment
of money constituting or relating to Proceeds; (k) to prepare,  adjust, execute,
deliver  and  receive  payment  under  insurance   claims  directly  related  to
Collateral,  and to collect and receive payment of and endorse any instrument in
payment of loss or  returned  premiums or any other  insurance  refund or return
directly  related to Collateral,  and to apply such amounts received by Bank, at
Bank's sole option,  toward repayment of the  Indebtedness;  (l) to exercise all
rights,  powers and remedies  which Debtor would have,  but for this  Agreement,
with respect to all Collateral and Proceeds  subject  hereto;  and (m) to do all
acts and things and execute all  documents  in the name of Debtor or  otherwise,
deemed by Bank as  necessary,  proper  and  convenient  in  connection  with the
preservation, perfection or enforcement of its rights hereunder.

        8. PAYMENT OF PREMIUMS,  TAXES, CHARGES,  LIENS AND ASSESSMENTS.  Debtor
agrees to pay, prior to delinquency,  all insurance  premiums,  taxes,  charges,
liens and assessments against the Collateral,  if applicable,  and Proceeds, and
upon the  failure of Debtor to do so, Bank at its option may pay any of them and
shall be the sole  judge of the  legality  or  validity  thereof  and the amount
necessary  to  discharge  the  same.  Any such  payments  made by Bank  shall be
obligations of Debtor to Bank, due and payable immediately upon demand, together
with interest at a rate  determined in accordance with the provisions of Section
15 hereof,  and shall be secured by the Collateral and Proceeds,  subject to all
terms and conditions of this Agreement.

        9. EVENTS OF  DEFAULT.  The  occurrence  of any of the  following  shall
constitute an "Event of Default"  under this  Agreement:  (a) any default in the
payment or performance of any obligation, or any defined event of default, under
(i) any contract or instrument  evidencing any  Indebtedness,  or (ii) any other
agreement  between any Debtor and Bank,  including  without  limitation any loan
agreement, relating to or executed in connection with any Indebtedness;  (b) any
representation  or  warranty  made  by  any  Debtor  herein  shall  prove  to be
incorrect, false or misleading in any material respect when made; (c) any Debtor
shall fail to observe or perform any obligation or agreement  contained  herein;
(d) any attachment or like levy on any property of any Debtor;  and (e) Bank, in
good  faith,  believes  any or all of the  Collateral  and/or  Proceeds to be in
danger of misuse, dissipation,  commingling, loss, theft, damage or destruction,
or otherwise in jeopardy or unsatisfactory in character or value.

        10.  REMEDIES.  Upon the occurrence of any Event of Default,  Bank shall
have the right to declare  immediately  due and payable all or any  Indebtedness
secured  hereby and to  terminate  any  commitments  to make loans or  otherwise
extend credit to Debtor.  Bank shall have all other rights,  powers,  privileges
and remedies  granted to a secured party upon default  under the Oregon  Uniform
Commercial Code or otherwise provided by law, including without limitation,  the
right to contact all persons  obligated to Debtor on any  Collateral or Proceeds
and to instruct such persons to deliver all Collateral  and/or Proceeds directly
to  Bank.  All  rights,  powers,  privileges  and  remedies  of  Bank  shall  be
cumulative. No delay, failure or discontinuance of Bank in exercising any right,
power, privilege or remedy hereunder shall affect

                                      -3-
<PAGE>

or operate as a waiver of such right, power,  privilege or remedy; nor shall any
single  or  partial  exercise  of any such  right,  power,  privilege  or remedy
preclude, waive or otherwise affect any other or further exercise thereof or the
exercise of any other right,  power,  privilege or remedy.  Any waiver,  permit,
consent or approval of any kind by Bank of any  default  hereunder,  or any such
waiver of any provisions or conditions  hereof,  must be in writing and shall be
effective  only to the extent set forth in writing.  It is agreed that public or
private sales,  for cash or on credit,  to a wholesaler or retailer or investor,
or user of property of the types subject to this  Agreement,  or public auction,
are all commercially  reasonable since differences in the sales prices generally
realized  in  the  different  kinds  of  sales  are  ordinarily  offset  by  the
differences  in the  costs and  credit  risks of such  sales.  While an Event of
Default exists:  (a) Debtor will deliver to Bank from time to time, as requested
by Bank,  current  lists of all  Collateral  and  Proceeds;  (b) Debtor will not
dispose of any of the  Collateral or Proceeds  except on terms approved by Bank;
and (c) at Bank's  request,  Debtor will assemble and deliver all Collateral and
Proceeds,  and books and records  pertaining  thereto,  to Bank at a  reasonably
convenient place designated by Bank.

        11. DISPOSITION OF COLLATERAL AND PROCEEDS.  Upon the transfer of all or
any  part  of the  Indebtedness,  Bank  may  transfer  all or  any  part  of the
Collateral  or  Proceeds  and  shall be  fully  discharged  thereafter  from all
liability  and   responsibility   with  respect  to  any  of  the  foregoing  so
transferred,  and the  transferee  shall be vested with all rights and powers of
Bank  hereunder  with respect to any of the foregoing so  transferred;  but with
respect to any Collateral or Proceeds not so transferred,  Bank shall retain all
rights,  powers,  privileges  and  remedies  herein  given.  Any proceeds of any
disposition  of any of the Collateral or Proceeds,  or any part thereof,  may be
applied by Bank to the payment of expenses  incurred by Bank in connection  with
the foregoing,  including  reasonable  attorneys'  fees, and the balance of such
proceeds may be applied by Bank toward the payment of the  Indebtedness  in such
order of application as Bank may from time to time elect.

        12. STATUTE OF LIMITATIONS.  Until all Indebtedness shall have been paid
in full and all  commitments  by Bank to  extend  credit  to  Debtor  have  been
terminated,  the  power of sale and all other  rights,  powers,  privileges  and
remedies  granted to Bank hereunder shall continue to exist and may be exercised
by Bank at any time  and from  time to time  irrespective  of the fact  that the
Indebtedness  or any part  thereof  may have  become  barred by any  statute  of
limitations,  or that the personal  liability of Debtor may have ceased,  unless
such liability shall have ceased due to the payment in full of all  Indebtedness
secured hereunder.

        13. MISCELLANEOUS.  (a) The obligations of Debtor are joint and several;
(b) Debtor hereby  waives any right (i) to require Bank to make any  presentment
or demand, or give any notice of nonpayment or nonperformance,  protest,  notice
of protest or notice of dishonor  hereunder,  (ii) to direct the  application of
payments  or  security  for any  Indebtedness  of  Debtor,  or  indebtedness  of
customers  of  Debtor,  or (iii) to  require  proceedings  against  others or to
require  exhaustion of security;  and (c) Debtor hereby  consents to extensions,
forbearances  or  alterations  of the  terms of  Indebtedness,  the  release  or
substitution of security,  and the release of any guarantors;  provided however,
that in each  instance,  Bank believes in good faith that the action in question
is commercially reasonable in that it does not unreasonably increase the risk of
nonpayment  of  the  Indebtedness  to  which  the  action  applies.   Until  all
Indebtedness  shall  have been paid in full,  no Debtor  shall have any right of
subrogation  or  contribution,  and each Debtor  hereby waives any benefit of or
right to  participate in any of the Collateral or Proceeds or any other security
now or hereafter held by Bank.

                                      -4-
<PAGE>

        14.  NOTICES.  All  notices,  requests and demands  required  under this
Agreement must be in writing,  addressed to Bank at the address specified in any
other loan  documents  entered into between Debtor and Bank and to Debtor at the
address of its chief  executive  office (or personal  residence,  if applicable)
specified  below or to such other  address as any party may designate by written
notice to each  other  party,  and shall be deemed to have been given or made as
follows: (a) if personally delivered,  upon delivery;  (b) if sent by mail, upon
the  earlier of the date of receipt or three (3) days after  deposit in the U.S.
mail,  first  class  and  postage  prepaid;  and (c) if sent by  telecopy,  upon
receipt.

        15.  COSTS,  EXPENSES  AND  ATTORNEYS'  FEES.  Debtor  shall pay to Bank
immediately  upon demand the full  amount of all  payments,  advances,  charges,
costs and expenses,  including  reasonable  attorneys'  fees (to include outside
counsel fees and all allocated  costs of Bank's in-house  counsel),  expended or
incurred by Bank in exercising any right,  power,  privilege or remedy conferred
by this Agreement or in the enforcement  thereof,  whether incurred at the trial
or appellate level, in an arbitration proceeding or otherwise, and including any
of  the  foregoing  incurred  in  connection  with  any  bankruptcy   proceeding
(including without  limitation,  any adversary  proceeding,  contested matter or
motion  brought by Bank or any other  person)  relating  to Debtor or in any way
affecting any of the  Collateral or Bank's ability to exercise any of its rights
or remedies with respect  thereto.  All of the foregoing shall be paid by Debtor
with  interest  from the date of demand  until  paid in full at a rate per annum
equal to the  greater of ten percent  (10%) or Bank's  Prime Rate in effect from
time to time.

        16.  SUCCESSORS; ASSIGNS; AMENDMENT.  This Agreement shall be binding
upon and inure to the  benefit of the heirs,  executors,  administrators,  legal
representatives,  successors  and assigns of the parties,  and may be amended or
modified only in writing signed by Bank and Debtor.

        17.  OBLIGATIONS OF MARRIED  PERSONS.  Any married person who signs this
Agreement as Debtor hereby expressly agrees that recourse may be had against his
or her separate  property for all his or her Indebtedness to Bank secured by the
Collateral and Proceeds under this Agreement.

        18. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall
be held to be  prohibited  by or invalid under  applicable  law, such  provision
shall be  ineffective  only to the  extent of such  prohibition  or  invalidity,
without invalidating the remainder of such provision or any remaining provisions
of this Agreement.

        19. GOVERNING LAW.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Oregon.

        Debtor warrants that its chief executive office (or personal residence,
if applicable) is located at the following  address:  4724 S.W.  Macadam Avenue,
Portland Oregon 97201.

                                      -5-
<PAGE>

        IN WITNESS  WHEREOF,  this  Agreement has been duly executed as of March
12, 2001.

BARRETT BUSINESS SERVICES, INC.

By: /s/ Michael D. Mulholland
   --------------------------
   Michael D. Mulholland
   Vice President-Finance<PAGE>   1
                                  EXHIBIT 10-g

As a taxable executive benefit, the Company pays the premiums for life insurance
policies on the lives of non-employee Directors and certain key executives. The
executive or Board member has the right to designate the beneficiary under the
applicable life insurance policy. Messrs. Alter and Rosoff are each covered by a
$5,000,000 policy. Each non-employee Director is covered by a $500,000 policy.
All of the life insurance policies are owned by the Company. Upon termination of
employment, each executive is entitled to acquire the insurance policy from the
Company upon payment to the Company of an amount equal to the cash value of the
policy at that time. The policies insuring the non-employee Directors are term
life insurance policies, on which there is no build-up in cash value.

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