Document:

Exhibit 4.2

 

FIRST AMENDMENT TO RIGHTS PLAN

AND

CONFIRMATION OF APPOINTMENT AS SUCCESSOR RIGHTS AGENT

 

 

REFERENCE IS MADE to that

certain Rights Agreement dated as of January 6, 1998 (the “Rights Plan”),

between Labor Ready, Inc., a Washington corporation (“the Company”), and

TranSecurities International, Inc.

 

WHEREAS the

Company has proposed to issue and sell Convertible Subordinated Notes due 2007

(the “Notes”) to qualified institutional buyers pursuant to Rule 144A under the

Securities Act of 1933 (the “Offering”); and

 

WHEREAS the

Company wishes to ratify and confirm Computershare Trust Company, Inc.

(“Computershare”) as the successor Rights Agent under the Rights Plan, and

Computershare is willing to confirm such successorship as Rights Agent;

 

NOW, THEREFORE,

in consideration of the foregoing, and for other good and valuable

consideration, receipt and sufficiency of which are hereby acknowledged, the

undersigned agree as follows:

 

1. Effective

as of the date hereof, the Company hereby ratifies and confirms Computershare

as Rights Agent under the Rights Plan, pursuant to Section 21 thereof.

Computershare hereby confirms such successorship as Rights Agent and agrees to

perform all of the duties and responsibilities of the Rights Agent under the

Rights Plan.

 

2. Pursuant to Section 27

thereof, Section 1 of the Rights Plan is hereby amended to add a new second

paragraph to the definition of “Acquiring Person” as follows:

 

“Any person or

entity that purchases the Convertible Subordinated Notes due 2007 (the “Notes”)

of the Company (a “Buyer”) will not be deemed to be an Acquiring Person solely

by virtue of their purchase of Notes in the offering thereof to qualified

institutional buyers pursuant to Rule 144A under the Securities Act of 1933

(the “Offering”) or by virtue of the conversion of the Notes into common stock

of the Company pursuant to their terms; provided, however, that if any Buyer is

or becomes the Beneficial Owner of 15% or more of the shares of the Company’s

common stock then outstanding at any time as a result of the acquisition of

Beneficial Ownership of common stock subsequent to the Offering, except for the

acquisition of Beneficial Ownership caused by conversion of the Notes acquired

in the Offering pursuant to their terms, then as of the date of such

acquisition such Buyer shall become an Acquiring Person for purposes of the

Rights Plan unless the Company’s board of directors otherwise determines or as

otherwise set forth in the Rights Plan.”

 

1

 

3. Except as expressly amended

hereby, the Rights Plan shall remain in full force and effect as by its terms

set forth.

 

DATED as of this 13th

day of June, 2002.

 

	

  LABOR READY,

  INC.

  	

  COMPUTERSHARE

  TRUST 

  COMPANY, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

   /s/

  	

   

  	

  By:

  	

   

  	

   /s/

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Its:

  	

   

  	

   

  	

  Its:

  	

   

  	

   

  

 

2EXECUTION COPY

 

Exhibit 4.3

 

Resale

Registration Rights Agreement

 

between

 

LABOR READY, INC.,

 

Lehman

Brothers Inc.,

 

Wells

Fargo Securities, LLC

 

and

 

Gerard

Klauer Mattison & Co., Inc.

 

 

 

 

 

Dated

as of June 19, 2002

 

 

TABLE OF CONTENTS

 

	

  1.

  	

  Definitions

  
	

   

  	

   

  
	

  2.

  	

  Shelf Registration

  
	

   

  	

   

  
	

  3.

  	

  Additional Amounts

  
	

   

  	

   

  
	

  4.

  	

  Registration Procedures

  
	

   

  	

   

  
	

  5.

  	

  Registration Expenses

  
	

   

  	

   

  
	

  6.

  	

  Indemnification and

  Contribution

  
	

   

  	

   

  
	

  7.

  	

  Rule 144A

  
	

   

  	

   

  
	

  8.

  	

  Participation

  in Underwritten Registrations

  
	

   

  	

   

  
	

  9.

  	

  Selection of Underwriters

  
	

   

  	

   

  
	

  10.

  	

  Miscellaneous

  

 

 

Resale

Registration Rights Agreement, dated as of June 19,

2002, among Labor Ready, Inc., a Washington corporation (together with any

successor entity, herein referred to as the “Issuer”),

and Lehman Brothers Inc., Wells Fargo Securities, LLC and Gerard Klauer

Mattison & Co., Inc. (the “Initial

Purchasers”).

 

Pursuant to the Purchase Agreement, dated

June 13, 2002, between the Issuer and the Initial Purchasers (the “Purchase Agreement”), the Initial

Purchasers have agreed to purchase from the Issuer $65,000,000 aggregate

principal amount of 6.5% Convertible Subordinated Notes due 2007 (the “Notes”) (including $10,000,000 aggregate

principal amount if the initial purchasers exercise their option to purchase

additional Notes, as set forth in the Purchase Agreement).  The Notes initially will be convertible into

fully paid, nonassessable common stock, no par value per share, of the

Issuer  (the “Common Stock”) on the terms, and subject to the conditions,

set forth in the Indenture (as defined herein).  To induce the Initial Purchasers to purchase the Notes, the

Issuer has agreed to provide the registration rights set forth in this

Agreement pursuant to the Purchase Agreement.

 

The parties hereby

agree as follows:

 

1.             Definitions.  As used in this Agreement, the following

capitalized terms shall have the following meanings:

 

Additional Amounts:  As defined in Section 3(a) hereof.

 

Additional Amounts Payment Date:  Each June 15 and December 15, commencing

December 15, 2002.

 

Agreement:  This Resale Registration Rights Agreement,

as amended, modified or otherwise supplemented from time to time in accordance

with the terms hereof.

 

Blue Sky Application:  As defined in Section 6(a) hereof.

 

Broker-Dealer: 

Any broker or dealer registered under the Exchange Act.

 

Business Day:  A day other than a Saturday or Sunday or any

day on which banking institutions in The City of New York are authorized or

obligated by law or executive order to close.

 

Closing Date:  The date of this Agreement.

 

Commission:  Securities and Exchange Commission.

 

Common Stock:  As

defined in the preamble hereto.

 

Effectiveness Period:  As defined in Section 2(a)(iii) hereof.

 

Effectiveness Target Date:  As defined in Section 2(a)(ii) hereof.

 

 

Exchange Act:  Securities Exchange Act of 1934, as amended,

and the rules and regulations of the Commission thereunder.

 

Holder:  A Person who owns, beneficially or

otherwise, Transfer Restricted Securities.

 

Holder Questionnaire:  As defined in Section 2(b) hereof.

 

Indemnified Holder:  As defined in Section 6(a) hereof.

 

Indenture:  The Indenture, dated as of June 19, 2002,

between the Issuer and The Bank of New York, as trustee (the “Trustee”), pursuant to which the Notes are

to be issued, as such Indenture is amended, modified or supplemented from time

to time in accordance with the terms thereof.

 

Initial Purchasers:  As defined in the preamble hereto.

 

Interest Payment Date:  Each June 15 and December 15 of each year,

commencing December 15, 2002.

 

Issuer:  As defined in the preamble hereto.

 

Majority of Holders:  Holders holding more than 50% of the

aggregate principal amount at maturity of Notes outstanding; provided that, for purpose of this

definition, a holder of shares of Common Stock which constitute Transfer

Restricted Securities when issued upon conversion of the Notes shall be deemed

to hold an aggregate principal amount at maturity of Notes (in addition to the

principal amount at maturity of Notes held by such holder) equal to $1,000

times the quotient of (x) the number of such shares of Common Stock received

upon conversion of the Notes and then held by such holder and (y) the

prevailing conversion rate, such prevailing conversion rate as determined in

accordance with the Indenture.

 

NASD:  National Association of Securities Dealers,

Inc.

 

Notes:  As defined in the preamble hereto.

 

Person:  An individual, partnership, corporation,

unincorporated organization, limited liability company, trust, joint venture or

a government or agency or political subdivision thereof.

 

Prospectus:  The prospectus included in a Shelf

Registration Statement, as amended or supplemented by any prospectus supplement

and by all other amendments thereto, including post-effective amendments, and

all material incorporated by reference into such Prospectus.

 

Purchase Agreement:  As defined in the preamble hereto.

 

Questionnaire Deadline:  As defined in Section 2(b) hereof.

 

2

 

Record Holder:  With respect to any Additional Amounts

Payment Date, each Person who is a Holder on the record date with respect to

the Interest Payment Date on which such Additional Amounts Payment Date shall

occur.  In the case of a Holder of

shares of Common Stock issued upon conversion of the Notes, “Record Holder”

shall mean each Person who is a Holder of shares of Common Stock which

constitute Transfer Restricted Securities on the 15th day preceding

the relevant Additional Amounts Payment Date.

 

Registration Default:  As defined in Section 3(a) hereof.

 

Sale Notice:  As defined in Section 4(d) hereof.

 

Securities Act:  Securities Act of 1933, as amended, and the

rules and resolutions of the Commission thereunder.

 

Shelf Filing Deadline:

As defined in Section 2(a)(i) hereof.

 

Shelf Registration Statement:  As defined in Section 2(a)(i) hereof.

 

Suspension Notice.  As defined in Section 4(c) hereof.

 

Suspension Period.  As defined in Section 4(b)(i) hereof.

 

TIA:  Trust Indenture Act of 1939, as amended, and

the rules and regulations of the Commission thereunder, in each case, as in

effect on the date the Indenture is qualified under the TIA.

 

Transfer Restricted Securities:  Each Note and each share of Common Stock

issued upon conversion of Notes until the earlier of:

 

(i)                    the date on

which such Note or such share of Common Stock issued upon conversion thereof

has been effectively registered under the Securities Act and disposed of in

accordance with the Shelf Registration Statement;

 

(ii)                   the date on

which such Note or such share of Common Stock issued upon conversion thereof is

transferred in compliance with Rule 144 under the Securities Act or may be sold

or transferred by a person who is not an affiliate of the Issuer pursuant to

Rule 144 under the Securities Act (or any other similar provision then in

force) without any volume or manner of sale restrictions thereunder; or

 

(iii)                  the date on

which such Note or such share of Common Stock issued upon conversion ceases to

be outstanding (whether as a result of redemption, repurchase and cancellation,

conversion or otherwise); provided that any Note and any Common Stock issued

upon conversion of such Note that is redeemed or repurchased by the Company

shall not be deemed Transfer Restricted Securities for purposes of this

Agreement upon resale by the Company.

 

3

 

Underwritten Registration or Underwritten

Offering:  A

registration in which Notes of the Issuer are sold to an underwriter for

reoffering to the public.

 

2.  Shelf Registration.        The Issuer shall:

 

(i)                    not later

than 90 days after the date hereof (the “Shelf Filing Deadline”), cause to be filed a registration

statement pursuant to Rule 415 under the Securities Act (together with any

amendments thereto, and including any documents incorporated by reference

therein, the “Shelf Registration Statement”), which

Shelf Registration Statement shall provide for resales of all Transfer

Restricted Securities held by Holders that have provided the information

required pursuant to the terms of Section 2(b) hereof;

 

(ii)                   use its

reasonable best efforts to cause the Shelf Registration Statement to be

declared effective by the Commission not later than 180 days after the date

hereof (the “Effectiveness Target Date”);

and

 

(iii)                  use its

reasonable best efforts to keep the Shelf Registration Statement continuously

effective, supplemented and amended as required by the provisions of Section

4(b) hereof to the extent necessary to ensure that (A) it is available for

resales by the Holders of Transfer Restricted Securities entitled to the

benefit of this Agreement and (B) conforms with the requirements of this

Agreement and the Securities Act for a period (the “Effectiveness Period”) of:

 

(1)           two

years following the last date of original issuance of Notes; or

 

(2)           such

shorter period that will terminate when (x) all of the Holders of Transfer

Restricted Securities are able to sell all Transfer Restricted Securities

immediately without restriction pursuant to Rule 144(k) under the Securities

Act or any successor rule thereto, (y) when all Transfer Restricted Securities

have ceased to be outstanding (whether as a result of redemption, repurchase

and cancellation, conversion or otherwise) or (z) all Transfer Restricted

Securities registered under the Shelf Registration Statement have been sold.

 

(b)   To have its Transfer Restricted Securities

included in the Shelf Registration Statement pursuant to this Agreement, each

Holder shall complete the Selling Securityholder Notice and Questionnaire, the

form of which is contained in Annex A to the Offering Memorandum relating to

the Notes (the “Questionnaire”).  The Issuer shall mail the Questionnaire not

less than 20 Business Days prior to the time the Company intends in good faith

to have the Shelf Registration Statement declared effective by the Commission.  Upon receipt of written request for

additional information from the Issuer, each Holder who intends to be named as

a selling securityholder in the Shelf Registration Statement shall furnish to

the Issuer in writing, within 20 Business Days after such Holder’s receipt of

such request, such additional information regarding such Holder and the

proposed distribution by such Holder of its Transfer Restricted Securities, in

connection with the Shelf Registration Statement or Prospectus

 

4

 

or Preliminary Prospectus included therein

and in any application to be filed with or under state securities law, as the

Issuer may reasonably request.  In

connection with all such requests for information from Holders of Transfer

Restricted Securities, the Issuer shall notify such Holders of the requirements

set forth in this paragraph regarding their obligation to provide the

information requested pursuant to this Section.  Holders who have not delivered a Questionnaire prior to the

effectiveness of the Shelf Registration Statement may receive a Questionnaire

from the Company upon request.  Upon

receipt of such a completed Questionnaire from a Holder following the

effectiveness of the Shelf Registration Statement, the Company shall, as

promptly as reasonably practicable, file such amendments to the Shelf

Registration Statement or supplements to a related Prospectus as are necessary

to permit such Holder to transfer its Transfer Restricted Securities pursuant

to the Shelf Registration Statement. 

Each Holder as to which the Shelf Registration Statement is being

effected agrees to furnish promptly to the Issuer all information required to

be disclosed in order to make information previously furnished to the Issuer by

such Holder not materially misleading.

 

3.     Additional Amounts.

 

(a)   If:

 

(i)                    the Shelf

Registration Statement is not filed with the Commission prior to or on the

Shelf Filing Deadline;

 

(ii)                   the Shelf

Registration Statement has not been declared effective by the Commission prior

to or on the Effectiveness Target Date;

 

(iii)                  except as

provided in Section 4(b)(i) hereof, the Shelf Registration Statement is filed

and declared effective but, during the Effectiveness Period, shall thereafter

cease to be effective or fail to be usable for its intended purpose without

being succeeded within five Business Days by a post-effective amendment to the

Shelf Registration Statement, a supplement to the Prospectus or a report filed

with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the

Exchange Act that cures such failure and, in the case of a post-effective

amendment, is itself immediately declared effective; or

 

(iv)                  (A)  prior to or on the 45th or 90th

day, as the case may be, of any Suspension Period, such suspension has not been

terminated or (B) Suspension Periods exceed an aggregate of 90 days in any 360

day period,

 

(each such event referred to in foregoing

clauses (i) through (iv), a “Registration

Default”), the Issuer hereby agrees to pay additional amounts (“Additional Amounts”) with respect to the

Transfer Restricted Securities from and including the day following the

Registration Default to but excluding the day on which the Registration Default

has been cured, accruing at a rate:

 

(A)          in

respect of the Notes, to each holder of Notes, (x) with respect to the first

90-day period during which a Registration Default shall have occurred and be

continuing, equal to 0.25% per annum of the principal amount of the Notes, and

(y) with respect to the period commencing on the 91st day following

the day the Registration Default shall have occurred and be continuing, equal

to

 

5

 

0.50% per annum of the principal amount of the Notes; provided that in no event shall Additional Amounts accrue at

a rate per year exceeding 0.50% of the Applicable Amount of the Notes; and

 

(B)           in

respect of any shares of Common Stock, to each holder of shares of Common Stock

issued upon conversion of Notes, (x) with respect to the first 90-day period in

which a Registration Default shall have occurred and be continuing, equal to

0.25% per annum of the Applicable Amount of the converted Notes, and (y) with

respect to the period commencing the 91st day following the day the

Registration Default shall have occurred and be continuing, equal to 0.50% per

annum of the Applicable Amount of the converted Notes; provided that in no event shall Additional Amounts accrue at

a rate per year exceeding 0.50% of the Applicable Amount of the converted

Notes.

 

(b)   All accrued Additional Amounts shall be paid

in arrears to Record Holders by the Issuer on each Additional Amounts Payment

Date by wire transfer of immediately available funds or by federal funds

check.  Following the cure of all

Registration Defaults relating to any particular Security or share of Common

Stock, the accrual of Additional Amounts with respect to such Security or share

of Common Stock will cease.  The Issuer agrees to deliver all notices,

certificates and other documents contemplated by the Indenture in connection

with the payment of Additional Amounts.

 

All obligations of the Issuer set forth in

this Section 3 that are outstanding with respect to any Transfer Restricted

Security at the time such security ceases to be a Transfer Restricted Security

shall survive until such time as all such obligations with respect to such

Transfer Restricted Security shall have been satisfied in full.

 

The Additional Amounts set forth above shall

be the exclusive monetary remedy available to the Holders of Transfer

Restricted Securities for such Registration Default.

 

4.     Registration

Procedures.

 

(a)   In connection with the Shelf Registration

Statement, the Issuer shall comply with all the provisions of Section 4(b)

hereof and shall use its reasonable best efforts to effect such registration to

permit the sale of the Transfer Restricted Securities being sold in accordance

with the intended method or methods of distribution thereof, and pursuant

thereto, shall prepare and file with the Commission a Shelf Registration

Statement relating to the registration on any appropriate form under the

Securities Act.

 

(b)   In connection with the Shelf Registration

Statement and any Prospectus required by this Agreement to permit the sale or

resale of Transfer Restricted Securities, the Issuer shall:

 

(i)                    Subject to

any notice by the Issuer in accordance with this Section 4(b) of the existence

of any fact or event of the kind described in Section 4(b)(iii)(D), use its

reasonable best efforts to keep the Shelf Registration Statement continuously

effective during the Effectiveness Period; upon the occurrence of any event

that would cause the Shelf Registration Statement or the

 

6

 

Prospectus

contained therein (A) to contain a material misstatement or omission or (B) not

be effective and usable for resale of Transfer Restricted Securities during the

Effectiveness Period, the Issuer shall file promptly an appropriate amendment

to the Shelf Registration Statement, a supplement to the Prospectus or a report

filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the

Exchange Act, in the case of clause (A), correcting any such misstatement or

omission, and, in the case of either clause (A) or (B), use its reasonable best

efforts to cause such amendment to be declared effective and the Shelf

Registration Statement and the related Prospectus to become usable for their

intended purposes as soon as reasonably practicable thereafter.  Notwithstanding the foregoing, the Issuer

may suspend the effectiveness of the Shelf Registration Statement by written

notice to the Holders for a period not to exceed an aggregate of 45 days in any

90-day period (each such period, a “Suspension

Period”) if:

 

(x)   an event occurs and is

continuing as a result of which the Shelf Registration Statement would, in the

Issuer’s reasonable judgment, contain an untrue statement of a material fact or

omit to state a material fact required to be stated therein or necessary to

make the statements therein not misleading; and

 

(y)   the Issuer reasonably

determines that the disclosure of such event at such time would have a material

adverse effect on the business of the Issuer (and its subsidiaries, if any,

taken as a whole);

 

provided that in the

event the disclosure relates to a previously undisclosed proposed or pending

material business transaction, the disclosure of which would impede the

Issuer’s ability to consummate such transaction, the Issuer may extend a

Suspension Period from 45 days to 90 days; provided,

however, that Suspension Periods shall not exceed an aggregate of 90

days in any 360-day period.

 

(ii)                   Prepare and

file with the Commission such amendments and post-effective amendments to the

Shelf Registration Statement as may be necessary to keep the Shelf Registration

Statement effective during the Effectiveness Period; cause the Prospectus to be

supplemented by any required Prospectus supplement, and as so supplemented to

be filed pursuant to Rule 424 under the Securities Act, and to comply fully

with the applicable provisions of Rules 424 and 430A under the Securities Act

in a timely manner; and comply with the provisions of the Securities Act with

respect to the disposition of all Transfer Restricted Securities covered by the

Shelf Registration Statement during the applicable period in accordance with

the intended method or methods of distribution by the sellers thereof set forth

in the Shelf Registration Statement or supplement to the Prospectus.

 

(iii)                  Advise the

underwriter(s), if any, and selling Holders promptly (but in any event within

five Business Days) and, if requested by such Persons, to confirm such advice

in writing:

 

7

 

(A)  when

the Prospectus or any Prospectus supplement or post-effective amendment has

been filed, and, with respect to the Shelf Registration Statement or any

post-effective amendment thereto, when the same has become effective,

 

(B)   of

any request by the Commission for amendments to the Shelf Registration

Statement or amendments or supplements to the Prospectus or for additional

information relating thereto,

 

(C)   of

the issuance by the Commission of any stop order suspending the effectiveness

of the Shelf Registration Statement under the Securities Act or of the

suspension by any state securities commission of the qualification of the

Transfer Restricted Securities for offering or sale in any jurisdiction, or the

initiation of any proceeding for any of the preceding purposes, or

 

(D)  of

the existence of any fact or the happening of any event, during the Effectiveness

Period, that makes any statement of a material fact made in the Shelf

Registration Statement, the Prospectus, any amendment or supplement thereto, or

any document incorporated by reference therein untrue, or that requires the

making of any additions to or changes in the Shelf Registration Statement or

the Prospectus in order to make the statements therein not misleading.

 

If at any time the Commission shall issue any

stop order suspending the effectiveness of the Shelf Registration Statement, or

any state securities commission or other regulatory authority shall issue an

order suspending the qualification or exemption from qualification of the

Transfer Restricted Securities under state securities or Blue Sky laws, the

Issuer shall use its reasonable best efforts to obtain the withdrawal or

lifting of such order at the earliest possible time and will provide to the

Initial Purchasers and each Holder who is named in the Shelf Registration

Statement prompt notice of the withdrawal of any such order.

 

(iv)                  Furnish to

each of the selling Holders and each of the underwriter(s), if any, before

filing with the Commission, a copy of the Shelf Registration Statement and

copies of any Prospectus included therein or any amendments or supplements to

the Shelf Registration Statement or Prospectus (other than documents

incorporated by reference after the initial filing of the Shelf Registration

Statement), which documents will be subject to the review of such holders and

underwriter(s), if any, for a period of at least five Business Days (in the

case of the Shelf Registration Statement and Prospectus) and one Business Day

(in the case of any amendment or supplement thereto), and the Issuer will not

file the Shelf Registration Statement or Prospectus or any amendment or

supplement to the Shelf Registration Statement or Prospectus (other than

documents incorporated by reference) to which a selling Holder of Transfer

Restricted Securities covered by the Shelf Registration Statement or the

 

8

 

underwriter(s),

if any, shall reasonably object prior to the filing thereof.  A selling Holder or underwriter, if any,

shall be deemed to have reasonably objected to such filing if the Shelf

Registration Statement, amendment, Prospectus or supplement, as applicable, as

proposed to be filed, contains a material misstatement or omission.

 

(v)                   Make

available at reasonable times for inspection by one or more representatives of

the selling Holders, designated in writing by a Majority of Holders whose

Transfer Restricted Securities are included in the Shelf Registration

Statement, any underwriter participating in any distribution pursuant to the

Shelf Registration Statement, and any attorney or accountant retained by such

selling Holders or any of the underwriter(s), all financial and other records,

pertinent corporate documents and properties of the Issuer as shall be

reasonably necessary to enable them to exercise any applicable due diligence

responsibilities, and cause the Issuer’s officers, directors, managers and

employees to supply all information reasonably requested by any such

representative or representatives of the selling Holders, underwriter, attorney

or accountant in connection with the Shelf Registration Statement after the

filing thereof and before its effectiveness, provided, however, that any information designated by the

Issuer as confidential at the time of delivery of such information shall be

kept confidential by the recipient thereof.

 

(vi)                  If requested

by any selling Holders or the underwriter(s), if any, promptly incorporate in

the Shelf Registration Statement or Prospectus, pursuant to a supplement or

post–effective amendment if necessary, such information as such selling

Holders and underwriter(s), if any, may reasonably request to have included

therein, including, without limitation: (1) information relating to the “Plan

of Distribution” of the Transfer Restricted Securities, (2) information with

respect to the principal amount of Notes or number of shares of Common Stock

being sold to such underwriter(s), (3) the purchase price being paid therefor

and (4) any other terms of the offering of the Transfer Restricted Securities

to be sold in such offering; and make all required filings of such Prospectus

supplement or post–effective amendment as soon as reasonably practicable

after the Issuer is notified of the matters to be incorporated in such

Prospectus supplement or post–effective amendment.

 

(vii)                 Furnish to

each selling Holder and each of the underwriter(s), if any, without charge, at

least one copy of the Shelf Registration Statement, as first filed with the

Commission, and of each amendment thereto (and any documents incorporated by

reference therein or exhibits thereto (or exhibits incorporated in such

exhibits by reference) as such Person may request).

 

(viii)                Deliver to

each selling Holder and each of the underwriter(s), if any, without charge, as

many copies of the Prospectus (including each preliminary prospectus) and any

amendment or supplement thereto as such Persons reasonably may request; subject

to any notice by the Issuer in accordance with this Section 4(b) of the

existence of any fact or event of the kind described in

 

9

 

Section

4(b)(iii) (D), the Issuer hereby consents to the use of the Prospectus and any

amendment or supplement thereto by each of the selling Holders and each of the

underwriter(s), if any, in connection with the offering and the sale of the

Transfer Restricted Securities covered by the Prospectus or any amendment or

supplement thereto.

 

(ix)                   The Issuer

shall:

 

(A)          upon request, furnish

to each selling Holder and each underwriter, if any, in such substance and

scope as they may reasonably request and as are customarily made by issuers to

underwriters in primary underwritten offerings for selling security holders,

upon the date of closing of any sale of Transfer Restricted Securities in an

Underwritten Registration:

 

(1)           a

certificate, dated the date of such closing, signed by the Chief Financial

Officer of the Issuer confirming, as of the date thereof, the matters set forth

in Section 5(g) of the Purchase Agreement and such other matters as such

parties may reasonably request;

 

(2)           opinions,

each dated the date of such closing, of counsel to the Issuer covering such of

the matters as are customarily covered in legal opinions to underwriters in

connection with underwritten offerings of securities; and

 

(3)           customary

comfort letters, dated the date of such closing, from the Issuer’s independent

accountants in the customary form and covering matters of the type customarily

covered in comfort letters to underwriters in connection with underwritten

offerings of securities;

 

(B)           set forth in full in

the underwriting agreement, if any, indemnification provisions and procedures

which provide rights no less protective than those set forth in Section 6

hereof with respect to all parties to be indemnified; and

 

(C)           deliver such other

documents and certificates as may be reasonably requested by such parties to

evidence compliance with clause (A) above and with any customary conditions

contained in the underwriting agreement or other agreement entered into by the

selling Holders pursuant to this clause (ix).

 

(x)                    Before any

public offering of Transfer Restricted Securities, cooperate with the selling

Holders, the underwriter(s), if any, and their respective counsel in connection

with the registration and qualification of the Transfer Restricted Securities

under the securities or Blue Sky laws of such jurisdictions in the United

States as the selling Holders or underwriter(s), if any, may reasonably request

and do any and all other acts or things necessary or advisable to enable the

disposition in such jurisdictions of the Transfer Restricted Securities covered

by the Shelf Registration Statement; provided,

however, that the Issuer shall not be required (A) to register or

qualify as a foreign corporation or a dealer of securities

 

10

 

 

where it is

not now so qualified or to take any action that would subject it to the service

of process in any jurisdiction where it is not now so subject or (B) to subject

itself to taxation in any such jurisdiction if it is not now so subject.

 

(xi)                   Cooperate

with the selling Holders and the underwriter(s), if any, to facilitate the

timely preparation and delivery of certificates representing Transfer

Restricted Securities to be sold and not bearing any restrictive legends

(unless required by applicable securities laws); and enable such Transfer

Restricted Securities to be in such denominations and registered in such names

as the Holders or the underwriter(s), if any, may request at least two Business

Days before any sale of Transfer Restricted Securities made by such

underwriter(s).

 

(xii)                  Use its

reasonable best efforts to cause the Transfer Restricted Securities covered by

the Shelf Registration Statement to be registered with or approved by such

other U.S. governmental agencies or authorities as may be necessary to enable

the seller or sellers thereof or the underwriter(s), if any, to consummate the

disposition of such Transfer Restricted Securities; provided however, that the

Issuer shall not be required to subject itself to taxation in any such

jurisdiction if it is not now so subject..

 

(xiii)                 Subject to

Section 4(b)(i) hereof, if any fact or event contemplated by Section

4(b)(iii)(D) hereof shall exist or have occurred, use its reasonable best

efforts to prepare a supplement or post–effective amendment to the Shelf

Registration Statement or related Prospectus or any document incorporated

therein by reference or file any other required document so that, as thereafter

delivered to the purchasers of Transfer Restricted Securities, the Prospectus

will not contain an untrue statement of a material fact or omit to state any

material fact required to be stated therein or necessary to make the statements

therein, in light of the circumstances in which they were made, not misleading.

 

(xiv)                Provide CUSIP

numbers for all Transfer Restricted Securities not later than the effective

date of the Shelf Registration Statement and provide the Trustee under the

Indenture with certificates for the Notes that are in a form eligible for

deposit with The Depository Trust Company.

 

(xv)                 Cooperate and

assist in any filings required to be made with the NASD and in the performance

of any due diligence investigation by any underwriter that is required to be

retained in accordance with the rules and regulations of the NASD.

 

(xvi)                Otherwise use

its reasonable best efforts to comply with all applicable rules and regulations

of the Commission and all reporting requirements under the Exchange Act.

 

(xvii)               Cause the

Indenture to be qualified under the TIA not later than the effective date of

the Shelf Registration Statement required by this Agreement, and, in connection

therewith, cooperate with the Trustee and the holders of Notes

 

11

 

to effect such

changes to the Indenture as may be required for such Indenture to be so

qualified in accordance with the terms of the TIA; and execute and use its best

efforts to cause the Trustee thereunder to execute all documents that may be

required to effect such changes and all other forms and documents required to

be filed with the Commission to enable such Indenture to be so qualified in a

timely manner.

 

(xviii)              Cause all

shares of Common Stock covered by the Shelf Registration Statement to be listed

or quoted, as the case may be, on each securities exchange or automated

quotation system on which similar securities issued by the Issuer are then

listed or quoted.

 

(xix)                 Provide to

each Holder upon written request each document filed with the Commission

pursuant to the requirements of Section 13 and Section 15 of the Exchange Act

after the effective date of the Shelf Registration Statement.

 

(xx)                  If requested

by the underwriters, make appropriate officers of the Issuer available to the

underwriters for meetings with prospective purchasers of the Transfer

Restricted Securities and prepare and present to potential investors customary

“road show” or marketing materials in a manner consistent with other new

issuances of other securities similar to the Transfer Restricted Securities.

 

(c)   Each Holder agrees by acquisition of a

Transfer Restricted Security that, upon receipt of any notice (a “Suspension Notice”) from the Issuer of the existence of any

fact of the kind described in Section 4(b)(iii)(D) hereof, such Holder will,

and will use its reasonable best efforts to cause any underwriter(s) in an

Underwritten Offering to, forthwith discontinue disposition of Transfer

Restricted Securities pursuant to the Shelf Registration Statement until:

 

(i)                    such Holder

has received copies of the supplemented or amended Prospectus contemplated by

Section 4(b)(xiii) hereof; or

 

(ii)                   such Holder

is advised in writing by the Issuer that the use of the Prospectus may be

resumed, and has received copies of any additional or supplemental filings that

are incorporated by reference in the Prospectus.

 

If so directed by the Issuer, each Holder

will deliver to the Issuer (at the Issuer’s expense) all copies, other than

permanent file copies then in such Holder’s possession, of the Prospectus

covering such Transfer Restricted Securities that was current at the time of

receipt of such notice of suspension.

 

(d)   Upon the effectiveness of the Shelf

Registration Statement, each Holder shall notify the Issuer at least three

Business Days prior to any intended distribution of Transfer Restricted

Securities pursuant to the Shelf Registration Statement (a “Sale Notice”), which notice shall be effective for five

Business Days.  Each Holder of Transfer

Restricted Securities, by accepting the same, agrees to hold any communication

by the Issuer in response to a Sale Notice in confidence.

 

12

 

5.  Registration Expenses.  All expenses incident to the Issuer’s performance of

or compliance with this Agreement shall be borne by the Issuer regardless of

whether a Shelf Registration Statement becomes effective, including, without

limitation:

 

(i)                    all

registration and filing fees and expenses (including filings, if any, required

to be made by any Initial Purchasers or Holders with the NASD);

 

(ii)                   all fees

and expenses of compliance with federal securities and state Blue Sky or

securities laws;

 

(iii)                  all

expenses of printing (including printing of Prospectuses and certificates for

the Common Stock to be issued upon conversion of the Notes) and the Issuer’s

expenses for messenger and delivery services and telephone;

 

(iv)                  all fees and

disbursements of counsel to the Issuer and, subject to Section 5(b) below, the

Holders of Transfer Restricted Securities;

 

(v)                   all

application and filing fees in connection with listing (or authorizing for

quotation) the Common Stock on a national securities exchange or automated

quotation system pursuant to the requirements hereof; and

 

(vi)                  all fees and

disbursements of independent certified public accountants of the Issuer

(including the expenses of any special audit and comfort letters required by or

incident to such performance).

 

The Issuer shall bear its internal expenses

(including, without limitation, all salaries and expenses of its officers and

employees performing legal, accounting or other duties), the expenses of any

annual audit and the fees and expenses of any Person, including special

experts, retained by the Issuer.

 

(b)   In connection with the Shelf Registration

Statement required by this Agreement, including any amendment or supplement

thereto, and any other documents delivered to any Holders, the Issuer shall

reimburse the Initial Purchasers and the Holders of Transfer Restricted

Securities being registered pursuant to the Shelf Registration Statement, as

applicable, for the reasonable fees and disbursements (not to exceed $15,000)

of not more than one counsel, which shall be Simpson Thacher & Bartlett, or

such other counsel as may be chosen prior to the initial filing of the Shelf

Registration Statement by a Majority of Holders for whose benefit the Shelf

Registration Statement is being prepared.

 

6.  Indemnification and Contribution.  The Issuer shall indemnify and hold harmless

each Holder, such Holder’s officers, directors, partners and employees and each

person, if any, who controls such Holder within the meaning of the Securities

Act (each, an “Indemnified Holder”),

from and against any loss, claim, damage or liability, joint or several, or any

action in respect thereof (including, but not limited to, any loss, claim,

damage, liability or action relating to resales of the Transfer Restricted

Securities), to which such Indemnified Holder may become subject, insofar as

any such loss, claim, damage, liability or action arises out of, or is based

upon:

 

13

 

(i)                    any untrue

statement or alleged untrue statement of a material fact contained in (A) the

Shelf Registration Statement or Prospectus or any amendment or supplement

thereto or (B) any blue sky application or other document or any amendment or

supplement thereto prepared or executed by the Issuer (or based upon written

information furnished by or on behalf of the Issuer expressly for use in such

blue sky application or other document or amendment on supplement) filed in any

jurisdiction specifically for the purpose of qualifying any or all of the

Transfer Restricted Securities under the securities law of any state or other

jurisdiction (such application or document being hereinafter called a “Blue Sky Application”); or

 

(ii)                   the

omission or alleged omission to state in the Shelf Registration Statement,

Prospectus or any amendment or supplement thereto, or in any Blue Sky

Application, any material fact required to be stated therein or necessary to

make the statements therein, in the light of the circumstances under which they

were made, not misleading,

 

and shall reimburse each Indemnified Holder

promptly upon demand for any legal or other expenses reasonably incurred by

such Indemnified Holder in connection with investigating or defending or

preparing to defend against any such loss, claim, damage, liability or action

as such expenses are incurred; provided,

however, that the Issuer shall not be liable in any such case to the

extent that any such loss, claim, damage, liability or action arises out of, or

is based upon, any untrue statement or alleged untrue statement or omission or

alleged omission made in the Shelf Registration Statement or Prospectus or

amendment or supplement thereto or Blue Sky Application in reliance upon and in

conformity with written information furnished to the Issuer.  The foregoing indemnity agreement is in

addition to any liability which the Issuer may otherwise have to any

Indemnified Holder.

 

(b)   Each Holder, severally and not jointly, shall

indemnify and hold harmless the Issuer, its officers, directors and employees

and each person, if any, who controls the Issuer within the meaning of the

Securities Act, from and against any loss, claim, damage or liability, joint or

several, or any action in respect thereof, to which the Issuer or any such

officer, director, employee or controlling person may become subject, insofar

as any such loss, claim, damage or liability or action arises out of, or is

based upon:

 

(i)                    any untrue

statement or alleged untrue statement of any material fact contained in the

Shelf Registration Statement or Prospectus or any amendment or supplement

thereto or any Blue Sky Application; or

 

(ii)                   the

omission or the alleged omission to state in the Shelf Registration Statement,

Prospectus or any amendment or supplement thereto, or in any Blue Sky

Application, any material fact required to be stated therein or necessary to

make the statements therein, in light of the circumstances under which they

were made, not misleading,

 

but in each case only to the extent that such

untrue statement or alleged untrue statement or omission or alleged omission

was made in reliance upon and in conformity with written information furnished

to the Issuer by or on behalf of such Holder (or its related Indemnified

 

14

 

Holder) specifically for use therein, and

shall reimburse the Issuer and any such officer, employee or controlling person

promptly upon demand for any legal or other expenses reasonably incurred by the

Issuer or any such officer, employee or controlling person in connection with

investigating or defending or preparing to defend against any such loss, claim,

damage, liability or action as such expenses are incurred.  The foregoing indemnity agreement is in

addition to any liability which any Holder may otherwise have to the Issuer and

any such officer, employee or controlling person.

 

(c)   Promptly after receipt by an indemnified

party under this Section 6 of notice of any claim or the commencement of any

action, the indemnified party shall, if a claim in respect thereof is to be

made against the indemnifying party under this Section 6, notify the

indemnifying party in writing of the claim or the commencement of that action; provided, however, that the failure to

notify the indemnifying party shall not relieve it from any liability which it

may have under this Section 6 except to the extent it has been materially

prejudiced by such failure and, provided,

further, that the failure to notify the indemnifying party shall not

relieve it from any liability which it may have to an indemnified party

otherwise than under this Section 6.  If

any such claim or action shall be brought against an indemnified party, and it

shall notify the indemnifying party thereof, the indemnifying party shall be

entitled to participate therein and, to the extent that it wishes, jointly with

any other similarly notified indemnifying party, to assume the defense thereof

with counsel satisfactory to the indemnified party.  After notice from the indemnifying party to the indemnified party

of its election to assume the defense of such claim or action, the indemnifying

party shall not be liable to the indemnified party under this Section 6 for any

legal or other expenses subsequently incurred by the indemnified party in

connection with the defense thereof other than reasonable costs of

investigation; provided, however,

that a Majority of Holders shall have the right to employ a single counsel to

represent jointly a Majority of Holders and their respective officers,

directors, partners, employees and controlling persons who may be subject to

liability arising out of any claim in respect of which indemnity may be sought

by a Majority of Holders against the Issuer under this Section 6, and, if a

Majority of Holders seeking indemnification shall have been advised by legal

counsel that there may be one or more legal defenses available to them and

their respective officers, employees and controlling persons that are different

from or additional to those available to the Issuer and its officers,

directors, employees and controlling persons, the fees and expenses of a single

separate counsel shall be paid by the Issuer. 

No indemnifying party shall:

 

(i)                    without the

prior written consent of the indemnified parties (which consent shall not be

unreasonably withheld) settle or compromise or consent to the entry of any

judgment with respect to any pending or threatened claim, action, suit or

proceeding in respect of which indemnification or contribution may be sought

hereunder (whether or not the indemnified parties are actual or potential

parties to such claim or action) unless such settlement, compromise or consent

includes an unconditional release of each indemnified party from all liability

arising out of such claim, action, suit or proceeding, or

 

(ii)                   be liable

for any settlement of any such action effected without its written consent

(which consent shall not be unreasonably withheld), but if settled with its

written consent or if there be a final judgment for the plaintiff in any such

action, the

 

15

 

indemnifying

party agrees to indemnify and hold harmless any indemnified party from and

against any loss or liability by reason of such settlement or judgment.

 

(d)   If the indemnification provided for in this

Section 6 shall for any reason be unavailable or insufficient to hold harmless

an indemnified party under Section 6(a) or 6(b) in respect of any loss, claim,

damage or liability (or action in respect thereof) referred to therein, each

indemnifying party shall, in lieu of indemnifying such indemnified party,

contribute to the amount paid or payable by such indemnified party as a result

of such loss, claim, damage or liability (or action in respect thereof):

 

(i)                    in such

proportion as is appropriate to reflect the relative benefits received by the

Issuer from the offering and sale of the Transfer Restricted Securities on the

one hand and a Holder with respect to the sale by such Holder of the Transfer

Restricted Securities on the other, or

 

(ii)                   if the

allocation provided by clause (6)(d)(i) is not permitted by applicable law, in

such proportion as is appropriate to reflect not only the relative benefits

referred to in clause 6(d)(i) but also the relative fault of the Issuer on the one

hand and the Holders on the other in connection with the statements or

omissions or alleged statements or alleged omissions that resulted in such

loss, claim, damage or liability (or action in respect thereof), as well as any

other relevant equitable considerations.

 

The relative benefits received by the Issuer

on the one hand and a Holder on the other with respect to such offering and

such sale shall be deemed to be in the same proportion as the total net

proceeds from the offering of the Notes purchased under the Purchase Agreement

(before deducting expenses) received by the Issuer on the one hand, bear to the

total proceeds received by such Holder with respect to its sale of Transfer

Restricted Securities on the other.  The

relative fault of the parties shall be determined by reference to whether the

untrue or alleged untrue statement of a material fact or the omission or

alleged omission to state a material fact relates to information supplied by

the Issuer on the one hand or the Holders on the other, the intent of the

parties and their relative knowledge, access to information and opportunity to

correct or prevent such statement or omission. 

The Issuer and each Holder agree that it would not be just and equitable

if the amount of contribution pursuant to this Section 6(d) were determined by pro rata allocation or by any other method

of allocation that does not take into account the equitable considerations

referred to in the first sentence of this paragraph (d).  The amount paid or payable by an indemnified

party as a result of the loss, claim, damage or liability, or action in respect

thereof, referred to above in this Section 6 shall be deemed to include, for

purposes of this Section 6, any legal or other expenses reasonably incurred by

such indemnified party in connection with investigating or defending or

preparing to defend any such action or claim. 

Notwithstanding the provisions of this Section 6, no Holder shall be

required to contribute any amount in excess of the amount by which the total

price at which the Transfer Restricted Securities purchased by it were resold

exceeds the amount of any damages which such Holder has otherwise been required

to pay by reason of any untrue or alleged untrue statement or omission or

alleged omission.  No person guilty of

fraudulent misrepresentation (within the meaning of Section 11(f) of the

Securities Act) shall be entitled to contribution from any person who was not

guilty of such fraudulent misrepresentation. 

The Holders’ obligations to contribute as provided in this Section 6(d)

are several and not joint.

 

16

 

7.  Rule 144A.  In the event the Issuer is not subject to

Section 13 or 15(d) of the Exchange Act, the Issuer hereby agrees with each

Holder, for so long as any Transfer Restricted Securities remain outstanding,

to make available to any Holder or beneficial owner of Transfer Restricted

Securities in connection with any sale thereof and any prospective purchaser of

such Transfer Restricted Securities from such Holder or beneficial owner, the

information required by Rule 144A(d)(4) under the Securities Act in order to

permit resales of such Transfer Restricted Securities pursuant to Rule 144A.

 

8.  Participation

in Underwritten Registrations.  No Holder may participate in any Underwritten

Registration hereunder unless such Holder:

 

(i)                    agrees to

sell such Holder’s Transfer Restricted Securities on the basis provided in any

underwriting arrangements approved by the Persons entitled hereunder to approve

such arrangements; and

 

(ii)                   completes

and executes all reasonable questionnaires, powers of attorney, indemnities,

underwriting agreements, lock-up letters and other documents required under the

terms of such underwriting arrangements.

 

9.  Selection of Underwriters.  The Holders of Transfer Restricted

Securities covered by the Shelf Registration Statement who desire to do so may

sell such Transfer Restricted Securities in an Underwritten Offering if

approved by the Issuer.  In any such

Underwritten Offering, the investment banker or investment bankers and manager

or managers that will administer the offering will be selected by a Majority of

Holders whose Transfer Restricted Securities are included in such offering; provided, that such investment bankers and

managers must be reasonably satisfactory to the Issuer.

 

10.  Miscellaneous.

 

(a)   Remedies.  The Issuer acknowledges and agrees that any

failure by the Issuer to comply with its obligations under Section 2 hereof may

result in material irreparable injury to the Initial Purchasers or the Holders

for which there is no adequate remedy at law, that it will not be possible to

measure damages for such injuries precisely and that, in the event of any such

failure, the Initial Purchasers or any Holder may obtain such relief as may be

required to specifically enforce the Issuer’s obligations under Section 2

hereof.

 

(b)   Actions Affecting

Transfer Restricted Securities.  The Issuer shall not take any action with the

purpose of adversely affecting the ability of the Holders of the Transfer

Restricted Securities as a class to include such Transfer Restricted Securities

in a registration undertaken pursuant to this Agreement.

 

(c)   No Inconsistent Agreements.  The Issuer will not, on or after the date of

this Agreement, enter into any agreement with respect to its securities that is

inconsistent with the rights granted to the Holders in this Agreement or

otherwise conflicts with the provisions hereof.  In addition, the Issuer shall not grant to any of its security

holders (other than the Holders of Transfer Restricted Securities in such

capacity) the right to include any of its securities in the Shelf Registration

Statement provided for in this Agreement other than the Transfer Restricted

Securities.  The Issuer has not previously

entered into any agreement (which has not expired or

 

17

 

been terminated) granting any registration

rights with respect to its securities to any Person which rights conflict with

the provisions hereof.

 

(d)   Amendments and Waivers.  This Agreement may not be amended, modified

or supplemented, and waivers or consents to or departures from the provisions

hereof may not be given, unless the Issuer has obtained the written consent of

a Majority of Holders or such greater percentage of the Holders as required by

the Indenture.

 

(e)   Notices.  All notices and other communications

provided for or permitted hereunder shall be made in writing by hand–delivery,

first–class mail (registered or certified, return receipt requested),

telex, facsimile transmission, or air courier guaranteeing overnight delivery:

 

(i)                    if to a

Holder, at the address set forth on the records of the registrar under the

Indenture or the transfer agent of the Common Stock, as the case may be; and

 

(ii)                   if to the

Issuer:

 

Labor Ready,

Inc.

1015 A Street

Tacoma,

WA  98402

Attention:  Tim Adams

Fax: (800) 587-9257

Telephone: (253) 680-8471

 

With a copy to:

 

Preston, Gates

& Ellis LLP

701 Fifth

Avenue, Suite 5000

Seattle,

WA  98104

Attention:  Gary J. Kocher

Fax: (206) 623-7022

Telephone: (206) 467-2709

 

All such notices and communications shall be

deemed to have been duly given: at the time delivered by hand, if personally

delivered; five Business Days after being deposited in the mail, postage prepaid,

if mailed; when answered back, if telexed; when receipt acknowledged, if

transmitted by facsimile; and on the next Business Day, if timely delivered to

an air courier guaranteeing overnight delivery.

 

(f)    Successors and Assigns.  This Agreement shall inure to the benefit of

and be binding upon the successors and assigns of each of the parties,

including without limitation and without the need for an express assignment,

subsequent Holders of Transfer Restricted Securities; provided, however, that (i) this Agreement

shall not inure to the benefit of or be binding upon a successor or assign of a

Holder unless and to the extent such successor or assign acquired Transfer

Restricted Securities from such Holder and (ii) nothing contained herein shall

be deemed to permit any assignment, transfer or other disposition of Transfer

Restricted 

 

18

 

Securities in violation of the terms of the

Purchase Agreement or the Indenture.  If

any transferee of any Holder shall acquire Transfer Restricted Securities, in

any manner, whether by operation of law or otherwise, such Transfer Restricted

Securities shall be held subject to all of the terms of this Agreement, and by

taking and holding such Transfer Restricted Securities such person shall be

conclusively deemed to have agreed to be bound by and to perform all of the

terms and provisions of this Agreement.

 

(g)   Counterparts.  This Agreement may be executed in any number

of counterparts and by the parties hereto in separate counterparts, each of

which when so executed shall be deemed to be an original and all of which taken

together shall constitute one and the same agreement.

 

(h)   Securities Held by the Issuer or

Its Affiliates.  Whenever

the consent  or approval of Holders of a specified

percentage of Transfer Restricted Securities is required hereunder, Transfer

Restricted Securities held by the Issuer or its “affiliates” (as such term is

defined in Rule 405 under the Securities Act) shall not be counted in

determining whether such consent or approval was given by the Holders of such

required percentage.

 

(i)    Headings.  The headings in this Agreement are for

convenience of reference only and shall not limit or otherwise affect the

meaning hereof.

 

(j)    Governing Law.  This Agreement shall be governed by, and

construed in accordance with, the law of the State of New York.

 

(k)   Severability.  If any one or more of the provisions

contained herein, or the application thereof in any circumstance, is held

invalid, illegal or unenforceable, the validity, legality and enforceability of

any such provision in every other respect and of the remaining provisions

contained herein shall not be affected or impaired thereby.

 

(l)    Entire Agreement.  This Agreement is intended by the parties as

a final expression of their agreement and intended to be a complete and

exclusive statement of the agreement and understanding of the parties hereto in

respect of the subject matter contained herein.  There are no restrictions, promises, warranties or undertakings,

other than those set forth or referred to herein with respect to the

registration rights granted by the Issuer with respect to the Transfer

Restricted Securities.  This Agreement

supersedes all prior agreements and understandings between the parties with

respect to such subject matter.

 

19

 

In Witness Whereof,

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

 

	

   

  	

  Labor

  Ready, Inc.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

    /s/

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Lehman

  Brothers Inc.

  
	

   

  	

  Wells

  Fargo Securities, LLC

  
	

   

  	

  Gerard

  Klauer Mattison & Co., Inc.

  
	

   

  	

   

  
	

   

  	

  By:  Lehman Brothers Inc.

  
	

   

  	

   

  
	

   

  	

  By

  	

    /s/

  	

   

  
	

   

  	

  Authorized

  Representative

  
					

 

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