Document:

Prepared by MERRILL CORPORATION

Exhibit 10.3

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

	

                  This Executive Employment Agreement is made and entered into by and

  between Labor Ready, Inc., a Washington corporation, including its

  subsidiaries ("Company"), and Joseph P. Sambataro, Jr.

  ("Executive"), effective as of September 24, 2001.

  

 

RECITALS

 

                WHEREAS, Company believes that Executive's

experience, knowledge of corporate affairs, reputation and abilities are of

great value to Company's future growth and profits; and

 

                WHEREAS, Company wishes to employ Executive

and Executive is willing to be employed by Company; and

 

                WHEREAS, the Company’s Board of Directors has

elected Executive to the offices of President and Chief Executive Officer;

 

                NOW, THEREFORE, in consideration of the

mutual promises and covenants set forth herein, the Company and Executive agree

as follows:

 

                1.             Employment.  The Company agrees to and hereby does employ

Executive, and Executive hereby agrees to the employment of the Company,

subject to the supervision and direction of the Board of Directors.  Executive’s employment shall be for a period

commencing on September 24, 2001 and ending on December 31, 2004, unless such

period is extended by written agreement of the parties or is sooner terminated

pursuant to the provisions of Paragraphs 4, 13 or 14.

 

                2.             Duties of

Executive.  Executive

agrees to devote the necessary time, attention, skill and efforts to the

performance of his duties as President and Chief Executive Officer of the

Company and/or such other duties as may be assigned by the Board of Directors

in its discretion.

 

	

                  3.             Compensation.

  
	

   

  	

   

  	

   

  
	

                                  (a)           Executive's

  initial salary shall be at the rate of Five Hundred Thousand and No/100

  Dollars ($500,000.00) per year, payable biweekly, from September 24, 2001

  until changed by the Board of Directors as provided herein.

  
	

   

  	

   

  	

   

  
	

                                  (b)           Company,

  acting through its Board of Directors, may (but shall not be required to)

  increase, but may not decrease, Executive's compensation and award to

  Executive such bonuses as the board may see fit, in its sole and unrestricted

  discretion, commensurate with Executive's performance and the overall

  performance of the Company. Executive’s compensation shall be reviewed

  annually by the Compensation Committee of the Board of Directors.

  

 

 

                4.             Failure

to Pay Executive.  The

failure of Company to pay Executive his salary as provided in Paragraph 3 may,

in Executive's sole discretion, be deemed a breach of this Agreement and,

unless such breach is cured within fifteen days after written notice to

Company, this Agreement shall terminate. 

Executive’s claims against Company arising out of the nonpayment shall

survive termination of this Agreement.

 

                5.             Options

to Purchase Common Stock. 

Executive is granted unvested options to purchase 400,000 shares of the

Company’s common stock.  The terms and

conditions of the options are set forth in Exhibit A.

 

                6.             Reimbursement

for Expenses.  Company

shall reimburse Executive for reasonable out-of-pocket expenses that Executive

shall incur in connection with his services for Company contemplated by this

Agreement, on presentation by Executive of appropriate vouchers and receipts

for such expenses to Company.

 

                7.             Spousal

Travel Allowance.  Company shall reimburse Executive for

reasonable travel expenses incurred by Executive’s wife while accompanying

Executive on Company-related travel, up to a maximum of Fifteen Thousand

Dollars ($15,000.00) per year, on presentation by Executive of appropriate

vouchers and receipts for such expenses to Company.

 

                8.             Housing Allowance.  Company

shall reimburse Executive for reasonable housing expenses incurred by Executive

as a result of his need to be in Company’s Tacoma office, up to a

maximum of Two Thousand Dollars ($2,000.00) per month, on presentation by

Executive of appropriate evidence of such expenditures to Company. In the event

Company terminates this Agreement under Paragraph 13(b), Company shall

indemnify Executive with respect to any remaining liability on a residential

lease under this paragraph, up to a maximum of 12 months.

 

                9.             Vacation.  Executive shall be entitled each year during

the term of this Agreement to a vacation of twenty (20) business days, no two

of which need be consecutive, during which time his compensation shall be paid

in full.  The length of annual vacation

time shall increase by one day for every year of service to the Company after

2001 to a maximum of 25 business days per year.

 

                10.           Change in

Ownership or Control.  In

the event of a change in the ownership of Company, effective control of

Company, or the ownership of a substantial portion of Company's assets, all

unvested stock options shall immediately vest.

 

                11.           Liability

Insurance and Indemnification. 

The Company shall procure and maintain throughout the term of this

Agreement a policy or policies of liability insurance for the protection and

benefit of directors and officers of the Company.  Such insurance shall have a combined limit of not less than

$10,000,000.00 and may have a deductible of not more than $100,000.00.  To the fullest extent permitted by law, Company

shall indemnify and hold harmless Executive for any and all loss, cost, damage

and expense including attorneys’ fees and court costs and any portion of the

insurance deductible incurred or sustained by Executive, arising out of the

proper discharge by Executive of his duties hereunder in good faith.

 

                12.           Other

Benefits.  Executive

shall be entitled to all benefits offered generally to employees of

Company.  Nothing in this Agreement

shall be construed as limiting or restricting any benefit to Executive under

any pension, profit-sharing or similar retirement plan, or under any group life

or group health or accident or other plan of the Company, for the benefit of

its employees generally or a group of them, now or hereafter in existence. In

addition, following expiration of this Agreement and until Executive and his

wife both reach the age of 65 or are eligible for Medicare, whichever is later,

Executive shall have the option of maintaining health insurance through the

Company’s employee health insurance plan covering Executive and his wife,

provided that Executive reimburses the Company therefor in an amount equal to

the then-applicable employee contribution for such insurance.

 

                13.           Termination

by Company.  Company may

terminate this Agreement under either of the following circumstances:

 

                                (a)           Company

may terminate this Agreement and

Executive’s employment for cause (as defined hereinbelow) at any time upon

written notice to Executive. The notice of termination must specify those

actions or inactions upon which the termination is based. Cause shall exist if

any of the following occurs:

 

	

  (i)

  	

   

  	

  Executive

  is convicted of a crime involving dishonesty, fraud or moral turpitude;

  
	

   

  	

   

  	

   

  
	

  (ii)

  	

   

  	

  Executive

  has engaged in fraud, embezzlement, theft or other dishonest acts;

  
	

   

  	

   

  	

   

  
	

  (iii)

  	

   

  	

  Executive

  violates Company’s Drug Free Workplace Policy;

  
	

   

  	

   

  	

   

  
	

  (iv)

  	

   

  	

  Executive

  takes any action intended to damage the assets (including tangible and

  intangible assets, such as name or reputation) of Company;

  
	

   

  	

   

  	

   

  
	

  (v)

  	

   

  	

  Executive

  fails to perform his duties in good faith, within ten (10) days after written

  notice from Company;

  
	

   

  	

   

  	

   

  
	

  (vi)

  	

   

  	

  Executive fails to commence implementation

  of actions approved by resolution of the board of directors, within ten (10)

  days after written notice from Company, or to thereafter diligently pursue

  the completion thereof; or

  
	

   

  	

   

  	

   

  
	

  (vii)

  	

   

  	

  Executive breaches this Agreement in any

  other material respect and does not cure such breach within ten (10) days

  after written notice from Company.

  

 

                                In the event of termination

under this subparagraph, Company shall pay Executive all amounts due hereunder

which are then accrued but unpaid, within thirty (30) days after Executive’s

last day of employment.

 

                                (b)           Company

shall have the right to terminate this Agreement at any time without cause by

written notice to Executive. In the event of termination under this

subparagraph, Company shall continue to pay Executive’s salary until the

earlier of (i) one (1) year after the date of such termination, or (ii) the

expiration date of this Agreement as provided in Paragraph 1 above.

                14.           Termination by Executive.

 

                                (a) 

Executive may terminate this Agreement and his employment with Company at any time,

upon giving Company at least thirty (30) days prior written notice. In the event

of termination under this subparagraph 14(a), Company shall pay

Executive all amounts due hereunder which are then accrued but unpaid, within

thirty (30) days after Executive's last day of employment.

 

                                (b) 

Executive may terminate this Agreement for cause at any time upon

written notice to Company. Cause shall exist if Company has materially breached

this Agreement and such material breach has not been cured by Company within

ten (10) business days after receipt by Company of written notification from Executive

of the details of such breach. If termination of the Agreement occurs pursuant

to this subparagraph 14(b), Company shall continue to pay Executive’s salary

until the earlier of (i) one (1) year after the date of such termination, or

(ii) the expiration date of this Agreement as provided in Paragraph 1 above.

 

                15.           Communications

to Company.  Executive

shall communicate and channel to Company all knowledge, business, and customer

contacts and any other matters of information that could concern or be in any

way beneficial to the business of Company, whether acquired by Executive before

or during the term of this Agreement; provided, however, that nothing under

this Agreement shall be construed as requiring such communications where the

information is lawfully protected from disclosure as a trade secret of a third

party.

 

                16.           Binding

Effect.  This Agreement

shall be binding on and shall inure to the benefit of any successor or

successors of employer and the personal representatives of Executive.

 

                17.           Confidential

Information.

 

                                (a)           As

the result of his duties, Executive will necessarily have access to some or all

of the confidential information pertaining to Company's business.  It is agreed that "Confidential

Information" of Company includes:

 

(1)           The ideas, methods,

techniques, formats, specifications, procedures, designs, systems, processes,

data and software products which are unique to Company;

 

(2)           All customer,

marketing, pricing and financial information pertaining to the business of

Company;

 

(3)           All operations,

sales and training manuals;

 

(4)           All other

information now in existence or later developed which is similar to the

foregoing; and

 

(5)           All information

which is marked as confidential or explained to be confidential or which, by

its nature, is confidential.

 

(b)           Executive understands that he will

necessarily have access to some or all of the Confidential Information.  Executive recognizes the importance of

protecting the confidentiality and secrecy of the Confidential Information and,

therefore, agrees to use his best efforts to protect the Confidential

Information from unauthorized disclosure to other persons.  Executive understands that protecting the

Confidential Information from unauthorized disclosure is critically important

to the success and competitive advantage of Company and that the unauthorized

disclosure of the Confidential Information would greatly damage Company.

 

(c)           Executive agrees not to disclose any

Confidential Information to others or use any Confidential Information for his

own benefit.  Executive further agrees

that upon request of the Chairman of the Board or the Chief Executive Officer

of Company, he shall immediately return all Confidential Information, including

any copies of Confidential Information in his possession.

 

                18.           Covenants

Against Competition.  It

is understood and agreed that the nature of the methods employed in Company's

business is such that Executive will be placed in a close business and personal

relationship with the customers of Company. Thus, during the term of this

Agreement and for a period of two (2) years immediately following the

termination of Executive's employment, for any reason whatsoever, so long as

Company continues to carry on the same business, said Executive shall not, for

any reason whatsoever, directly or indirectly, for himself or on behalf of, or

in conjunction with, any other person, persons, company, partnership,

corporation or business entity:

 

(a)           Call upon, divert, influence or

solicit or attempt to call, divert, influence or solicit any customer or

customers of Company;

 

(b)           Divulge the names and addresses or

any information concerning any customer of Company;

 

(c)           Solicit, induce or otherwise

influence or attempt to solicit, induce or otherwise influence any employee of

the Company to leave his or her employment;

 

(d)           Own, manage, operate, control, be

employed by, participate in or be connected in any manner with the ownership,

management, operation or control of the same, similar, or related line of

business as that carried on by Company within a radius of twenty-five (25)

miles from any then existing or proposed office of Company; and

 

The time

period covered by the covenants contained herein shall not include any

period(s) of violation of any covenant or any period(s) of time required for

litigation to enforce any covenant.  If

the provisions set forth are determined to be too broad to be enforceable at

law, then the area and/or length of time shall be reduced to such area and time

and that shall be enforceable.

                19.           Enforcement of Covenants.

 

(a)           The covenants set forth herein on the

part of Executive shall be construed as an agreement independent of any other

provision in this Agreement and the existence of any claim or cause of action

of Executive against Company, whether predicated on this Agreement or

otherwise, shall not constitute a defense to the enforcement by Company of the

covenants contained herein.

 

(b)           Executive acknowledges that

irreparable damage will result to Company in the event of the breach of any covenant

contained herein and Executive agrees that in the event of any such breach,

Company shall be entitled, in addition to any and all other legal or equitable

remedies and damages, to a temporary and/or permanent injunction to restrain

the violation thereof by Executive and all of the persons acting for or with

Executive.

 

                20.           Law to

Govern Contract.  It is

agreed that this Agreement shall be governed by, construed and enforced in

accordance with the laws of the State of Washington.

 

                21.           Arbitration.  Company and Executive agree with each other

that any claim of Executive or Company arising out of or relating to this

Agreement or the breach of this Agreement or Executive’s employment by Company,

including, without limitation, any claim for compensation due, wrongful

termination and any claim alleging discrimination or harassment in any form

shall be resolved by binding arbitration, except for claims in which injunctive

relief is sought and obtained.  The

arbitration shall be administered by the American Arbitration Association under

its Employment Arbitration Rules at the American Arbitration Association Office

nearest the place of employment.  The

award entered by the arbitrator shall be final and binding in all respects and

judgment thereon may be entered in any Court having jurisdiction.

 

                22.           Entire

Agreement.  This

Agreement shall constitute the entire agreement between the parties and any

prior understanding or representation of any kind preceding the date of this

Agreement shall not be binding upon either party except to the extent

incorporated in this Agreement.

 

                23.           Modification

of Agreement.  Any

modification of this Agreement or additional obligation assumed by either party

in connection with this Agreement shall be binding only if evidenced in writing

signed by each party or an authorized representative of each party.

 

                24.           No Waiver.  The failure of either party to this

Agreement to insist upon the performance of any of the terms and conditions of

this Agreement, or the waiver of any breach of any of the terms and conditions

of this Agreement, shall not be construed as thereafter waiving any such terms

and conditions, but the same shall continue and remain in full force and effect

as if no such forbearance or waiver had occurred.

 

                25.           Attorneys’

Fees.  In the event that

any action (including arbitration pursuant to Paragraph 21 above) is filed in

relation to this Agreement, the unsuccessful party in the action shall pay to

the successful party, in addition to all other required sums, a reasonable sum

for the successful party's attorneys' fees.

 

                26.           Notices.  Any notice provided for or concerning this

Agreement shall be in writing and shall be personally delivered or sent by

certified or registered mail, return receipt requested, to the respective

address of each party as set forth below, or such other address as each party

shall designate by written notice. 

Notice shall be deemed delivered upon actual receipt.

 

                27.           Survival

of Certain Terms.  The

terms and conditions set forth in Paragraphs 17 through 22 and Paragraph 25 of

this Agreement shall survive termination of the remainder of this Agreement.

 

                                IN WITNESS WHEREOF, each party to this

Agreement has caused it to be executed on the date indicated below.

 

	

  EXECUTIVE:

  	

   

  	

  COMPANY:

  
	

   

  	

   

  	

   

  
	

  Joseph P. Sambataro,

  Jr.

  	

   

  	

  Labor Ready,

  Inc., a Washington corporation

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

  Date:

  	

   

  	

   

  	

  Date:

  	

   

  
						

 

EXHIBIT A

Stock Option Grant

GRANT DATE:    October 2, 2001

 

GRANT PRICE:    Closing price on the Grant Date

 

TOTAL NUMBER OF SHARES:       400,000

 

VESTING SCHEDULE:        Options for the specified number of

shares shall vest on the

                                                following dates:

 

	

  DATE

  	

   

  	

  NUMBER OF SHARES

  
	

  October 2, 2001

  	

   

  	

  100,000

  
	

  October 2, 2002

  	

   

  	

  100,000

  
	

  October 2, 2003

  	

   

  	

  100,000

  
	

  October 2, 2004

  	

   

  	

  100,000

  

 

TERMS AND CONDITIONS OF THE

STOCK OPTION GRANT:

 

1.             Except as otherwise provided

herein, all unexercised options shall expire five (5) years after the Grant

Date. The foregoing notwithstanding,

 

(a)   If this Agreement is

terminated by Company for cause pursuant to Paragraph 13(a) hereof, all

unexercised options shall expire upon the date of termination;

 

(b)   If this Agreement is

terminated by Company pursuant to Paragraph 13(b) hereof, all options shall

immediately vest and will not expire until five (5) years after the Grant Date;

and

 

(c)   If this Agreement is

terminated by Executive pursuant to Paragraph 14 hereof, all unexercised

options shall expire ninety (90) days after the date of termination.

 

2.             The options are categorized as

non-qualified stock options.  A

non-qualified stock option requires payment of income taxes on the difference

between the option price and the market value on the date of exercise.  Executive shall be responsible for any

income tax consequences and expense associated with the grant or exercise of

the options, and is responsible for consulting his individual tax advisor.

 

3.             Payment for shares purchased

through the exercise of options may be made either in cash or its equivalent or

by tendering previously acquired shares at market value, or both.

 

                The closing price on October 2, 2001 was

$3.05.Prepared by MERRILL CORPORATION

Exhibit 10.4

 

THIRD AMENDMENT TO SECURITIZATION

AGREEMENTS

THIS

THIRD AMENDMENT TO SECURITIZATION AGREEMENTS (this “Amendment”), is made and entered into as of

November 8, 2001 (the “Effective Date”),

by and among LABOR READY, INC., a Washington corporation (the “Parent”),

each of the Parent’s Subsidiaries listed on the signature pages hereto as a

“Selling Subsidiary” (each, a “Selling Subsidiary”; Parent and each

Selling Subsidiary are hereinafter sometimes referred to individually as an “Originator”

and collectively as the “Originators”), LABOR READY FUNDING CORPORATION,

a Delaware corporation (the “Buyer”; Buyer and each Originator are

hereinafter sometimes referred to individually as a “Company” and collectively as

the “Companies”),

REDWOOD

RECEIVABLES CORPORATION, a Delaware corporation (“Redwood”),

as Conduit Lender (in such capacity, the “Conduit Lender”), and GENERAL ELECTRIC CAPITAL CORPORATION,

a Delaware corporation (“GE Capital”), as Committed Lender (in such

capacity, the “Committed Lender”; together with the Conduit Lender referred

to herein collectively as the “Lenders”), as Administrative Agent for the

Lenders (in such capacity, the “Administrative Agent”), as Collateral Agent

for the Conduit Lender and the Conduit Lender Secured Parties (in such

capacity, the “Collateral Agent”), as Operating Agent for Redwood (in such

capacity, the “Operating Agent”), and as Liquidity Agent for the Liquidity

Lenders (in such capacity, the “Liquidity Agent”).

W  I 

T  N  E 

S  S  T 

H :  

 

WHEREAS, each of the Selling Subsidiaries and

the Parent are parties to a certain Receivables Sale Agreement, dated as of

March 1, 2001 (as amended to the date hereof, the “Receivables Sale Agreement”;

capitalized terms used herein and not otherwise defined herein shall have the

meanings given such terms in Annex X to the Receivables Sale Agreement

as amended by this Amendment), whereby each Selling Subsidiary has agreed to sell or otherwise transfer

to the Parent, and the Parent has agreed to purchase or otherwise acquire from

such Selling Subsidiaries, all of the right, title and interest of such Selling

Subsidiaries in the Receivables; and

WHEREAS, the Parent and the Buyer are parties to

a certain Receivables Sale and Contribution Agreement, dated as of March 1,

2001 (as amended to the date hereof, the “Transfer Agreement”), whereby the Parent

has agreed to sell, contribute or otherwise transfer to Buyer, and Buyer has

agreed to purchase or otherwise acquire from the Parent, all of the right,

title and interest of the Parent in the Receivables; and

WHEREAS, the Buyer, the Lenders and the

Administrative Agent are parties to a certain Receivables Funding Agreement,

dated as of March 1, 2001 (as amended to the date hereof, the “Funding

Agreement”), pursuant to which, among other things, the Lenders have

agreed, subject to certain terms and conditions, to make Advances to the Buyer

to fund its purchases of the Receivables; and

WHEREAS, Redwood and GE Capital, as Liquidity

Agent, Initial Liquidity Lender, Collateral Agent and Operating Agent are

parties to a certain Liquidity Loan and Asset Purchase Agreement, dated as of

March 1, 2001 (the “Liquidity Loan Agreement”; the Receivables

Sale Agreement, the Transfer Agreement, the Funding Agreement and the Liquidity

Loan Agreement, together with all exhibits and annexes thereto, are referred to

herein collectively as the “Securitization Agreements”), pursuant to

which, among other things, the Liquidity Lenders have agreed, subject to

certain terms and conditions, to make Liquidity Loans to Redwood; and

WHEREAS,

the Companies

have requested that the Securitization Agreements be amended in certain

respects, and the Lenders, the Administrative Agent and the Collateral Agent

are willing to agree to such amendments subject to the terms and conditions of

this Amendment.

NOW

THEREFORE, in

consideration of the premises and mutual covenants contained herein, and other

good and valuable consideration, the receipt and sufficiency of which are

hereby acknowledged, the parties hereto agree as follows:

1.             Amendments of

Securitization Agreements.  Subject to

the terms and conditions of this Amendment, including without limitation the

fulfillment of the conditions precedent specified in Section 6 below,

the Funding Agreement shall be amended as follows:

1.1           The

Minimum Fixed Charge Coverage Ratio covenant set forth in paragraph (a) to Annex

G to the Funding Agreement is hereby deleted in its entirety, and the

following new covenant is substituted in lieu thereof:

(a)        Minimum

Fixed Charge Coverage Ratio.  The

Parent and its Subsidiaries shall have on a consolidated basis for each fiscal

quarter set forth below and for the Rolling Period then ended a Fixed Charge

Coverage Ratio of not less than the ratio set forth below:

 

	

   

  	

  Fiscal Quarter

  	

   

  	

  Fixed Charge Coverage Ratio

  	

   

  
	

   

  	

  The first fiscal

  quarter of fiscal year 2001

  	

   

  	

  1.25

  to 1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The second fiscal

  quarter of fiscal year 2001

  	

   

  	

  1.30

  to 1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The third fiscal

  quarter of fiscal year 2001

  	

   

  	

  1.00

  to 1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The fourth fiscal

  quarter of fiscal year 2001

  	

   

  	

  1.05

  to 1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The first fiscal

  quarter of fiscal year 2002

  	

   

  	

  1.05

  to 1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The second fiscal

  quarter of fiscal year 2002

  	

   

  	

  1.14

  to 1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The third fiscal

  quarter of fiscal year 2002

  	

   

  	

  1.14

  to 1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The fourth fiscal

  quarter of fiscal year 2002

  	

   

  	

  1.14

  to 1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The first fiscal

  quarter of fiscal year 2003 and each fiscal quarter thereafter

  	

   

  	

  1.20

  to 1.00

  	

   

  

 

 

1.2           The

Minimum EBITDA covenant set forth in paragraph (b) to Annex G to the

Funding Agreement is hereby deleted in its entirety, and the following new

covenant is substituted in lieu thereof:

(b)           Minimum

EBITDA.  Parent and its Subsidiaries

shall have on a consolidated basis for each fiscal quarter set forth below an

EBITDA for the Rolling Period then ended of not less that the following:

 

	

   

  	

  Fiscal Quarter

  	

   

  	

  Minimum EBITDA

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The first fiscal

  quarter of fiscal year 2001

  	

   

  	

  $20,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  second fiscal quarter of fiscal year 2001

  	

   

  	

  $20,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The third fiscal quarter of

  fiscal year 2001

  	

   

  	

  $22,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  fourth fiscal quarter of fiscal year 2001

  	

   

  	

  $22,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  first fiscal quarter of fiscal year 2002

  	

   

  	

  $22,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  second fiscal quarter of fiscal year 2002

  	

   

  	

  $22,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  third fiscal quarter of fiscal year 2002

  	

   

  	

  $22,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  fourth fiscal quarter of fiscal year 2002

  	

   

  	

  $22,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The first fiscal quarter of fiscal year 2003

  	

   

  	

  $22,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  second fiscal quarter of fiscal year 2003

  	

   

  	

  $22,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  third fiscal quarter of fiscal year 2003

  	

   

  	

  $22,500,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  fourth fiscal quarter of fiscal year 2003

  	

   

  	

  $23,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  first fiscal quarter of fiscal year 2004

  	

   

  	

  $24,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  second fiscal quarter of fiscal year 2004

  	

   

  	

  $25,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  third fiscal quarter of fiscal year 2004

  	

   

  	

  $26,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  fourth fiscal quarter of fiscal year 2004

  	

   

  	

  $27,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  first fiscal quarter of fiscal year 2005

  	

   

  	

  $28,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  second fiscal quarter of fiscal year 2005

  	

   

  	

  $29,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  third fiscal quarter of fiscal year 2005

  	

   

  	

  $30,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  The

  fourth fiscal quarter of fiscal year 2005

  	

   

  	

  $31,000,000

  	

   

  

 

2.             No Other Amendments.  Except for the amendments expressly set

forth and referred to in Section 1 above, the Securitization Agreements

shall remain unchanged and in full force and effect.

3.             Representations and

Warranties. 

Each Company hereby represents and warrants to the Lenders, the

Administrative Agent and the Collateral Agent that (a) this Amendment has been

duly authorized, executed and delivered by each Company, (b) after giving

effect to this Amendment, no Termination Event, Incipient Termination Event,

Event of Servicer Termination or Incipient Servicer Termination Event has

occurred and is continuing as of this date, and (c) after giving effect to this

Amendment, all of the representations and warranties made by each Company in

the Securitization Agreements are true and correct in all material respects on

and as of the date of this Amendment (except to the extent that any such

representations or warranties expressly referred to a specific prior

date).  Any breach in any material

respect by any Company of any of its representations and warranties contained

in this Section 3 shall be a Termination Event and an Event of Servicer

Termination for all purposes of the Securitization Agreements.

4.             Ratification.  Each Company hereby ratifies and reaffirms

each and every term, covenant and condition set forth in the Securitization

Agreements and all other documents delivered by such Company in connection

therewith (including without limitation the other Related Documents to which

each Company is a party), effective as of the date hereof.

5.             Estoppel.  To induce the Lenders and the Administrative

Agent to enter into this Amendment, each Company hereby acknowledges and agrees

that, as of the date hereof, there exists no right of offset, defense or

counterclaim in favor of any Company as against any Lender, the Administrative

Agent or the Collateral Agent with respect to the obligations of any Company to

any Lender, the Administrative Agent or the Collateral Agent under the

Securitization Agreements or the other Related Documents, either with or

without giving effect to this Amendment.

6.             Conditions to Effectiveness.  This Amendment shall be effective as of the

Effective Date upon the satisfaction of the following conditions: (i) receipt

by the Administrative Agent of this Amendment, duly executed, completed and

delivered by each of the Companies, each Lender, the Administrative Agent and

the Collateral Agent and (ii) receipt by the Administrative Agent of an

amendment fee in the amount of $100,000 payable by Borrower to Administrative

Agent (the “Amendment Fee”).  The Amendment Fee shall be fully earned and

non-refundable when paid.

7.             Reimbursement of

Expenses.  Each Company hereby agrees that it shall reimburse the

Administrative Agent on demand for all costs and expenses (including without

limitation reasonable attorney’s fees) incurred by such parties in connection

with the negotiation, documentation and consummation of this Amendment and the

other documents executed in connection herewith and therewith and the

transactions contemplated hereby and thereby.

8.             Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND

CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK FOR CONTRACTS

TO BE PERFORMED ENTIRELY WITHIN SAID STATE.

9.             Severability of

Provisions. 

Any provision of this Amendment which is prohibited or unenforceable in

any jurisdiction shall, as to such jurisdiction, be ineffective to the extent

of such prohibition or unenforceability without invalidating the remaining

provisions hereof or affecting the validity or enforceability of such provision

in any other jurisdiction.  To the

extent permitted by Applicable Law, each Company hereby waives any provision of

law that renders any provision hereof prohibited or unenforceable in any

respect.

 

10.           Counterparts. 

This Amendment may be executed in any number of several counterparts,

all of which shall be deemed to constitute but one original and shall be

binding upon all parties, their successors and permitted assigns.

11.           Entire Agreement. 

The Securitization Agreements as amended by this Amendment embody the

entire agreement between the parties hereto relating to the subject matter

hereof and supersede all prior agreements, representations and understandings,

if any, relating to the subject matter hereof.

12.           Parent and GECC’s

Capacities.  The Parent is executing and delivering this Amendment

both in its capacity as an Originator under the Transfer Agreement and as the

Servicer under the Funding Agreement, and all references herein to the “Parent”

shall be deemed to include the Parent in both such capacities unless otherwise

expressly indicated.  GECC is executing

and delivering this Amendment both in its capacity as a Lender and as the

Administrative Agent for the Lenders and the Collateral Agent for the Conduit

Lender and the Conduit Lender Secured Parties, and all references herein to

“GECC” shall be deemed to include it in both such capacities unless otherwise

expressly indicated.

 

[Remainder

of page intentionally blank; next page is signature page]

IN WITNESS WHEREOF,

the parties have caused this Third Amendment to Securitization Agreements to be

duly executed by their respective officers thereunto duly authorized, as of the

date first above written.

 

	

   

  	

  REDWOOD

  RECEIVABLES CORPORATION, as the Conduit

  Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  GENERAL ELECTRIC CAPITAL CORPORATION, as Committed Lender, Administrative Agent and

  Collateral Agent

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Its Duly Authorized

  Signatory

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY FUNDING CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  

 

 

	

   

  	

  SELLING

  SUBSIDARIES:

  
	

   

  	

   

  
	

   

  	

  LABOR READY CENTRAL, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY CENTRAL II, LLC

  
	

   

  	

   

  
	

   

  	

   

  
	 
	

   

  	

  By:  Labor Ready Central, Inc., as its sole

  Member

  	 

	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY CENTRAL III, LP

  
	

   

  	

   

  
	 
	

   

  	

  By:  Labor Ready Central, Inc., as its sole

  General Partner

  	 

	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY GP CO., INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
					

 

 

	

   

  	

  LABOR

  READY MID-ATLANTIC, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY MID-ATLANTIC II, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY MID-ATLANTIC III, LP

  
	

   

  	

   

  
	

   

  	

  By:  Labor Ready GP Co., Inc., as its sole

  General Partner

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY MIDWEST, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY NORTHEAST, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  

 

	

   

  	

  LABOR

  READY NORTHWEST, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY SOUTHEAST, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY SOUTHEAST II, INC.

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY SOUTHEAST III, LP

  
	

   

  	

   

  
	

   

  	

  By:

  	

  Labor Ready GP Co.,

  Inc., as its sole General Partner

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY SOUTHWEST, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LABOR READY PUERTO RICO, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name

  
	

   

  	

  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]