Document:

EXHIBIT 10.27

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

 

This Agreement is between Gary North (“Executive”) and Labor Ready,
Inc. or the Labor Ready, Inc. subsidiary employing Executive (“Labor Ready” or
the “Company”), and is effective as of March 21, 2005.

 

RECITALS

 

A.            Executive has served in a management or
executive capacity with Labor Ready since August 1999 and as of the date of
this Agreement serves in the role of Regional Vice President.  In this capacity, Executive has served a key
role on the executive team and has had 
company-wide management responsibility, including responsibility for
affiliates of Labor Ready.  Additionally,
Executive has had and is expected to continue to have access to confidential
and propriety information of Labor Ready which is vital to the ability of Labor
Ready and its affiliates to compete in all of its locations.  Executive’s entering into this Agreement is a
condition of continued employment and continued access to such materials.

 

B.            Executive and Labor Ready have entered
into a contract dated July 30, 1999 (“Previous Employment Agreement”).  The Previous Employment Agreement is of an
indeterminate term.

 

C.            Executive wishes to continue employment
with Labor Ready and Labor Ready wishes to continue to employ Executive under
the terms and conditions stated in this Agreement.

 

I.              COMPENSATION
AND POSITION.

 

A.            Employment. 
In consideration of payment to Executive in the amount of $200 and the
covenants and promises contained herein and other good and valuable
consideration, the Company hereby agrees to continue to employ Executive and
Executive hereby agrees to be employed by the Company, upon the terms and
conditions hereinafter set forth.

 

B.            Effective Date.  The terms and conditions of
this Agreement shall become effective as of the date written above.

 

C.            Position
and Compensation.  Executive’s position and compensation will be
set by the Board of Directors based on recommendations of the Compensation
Committee.  In addition to the foregoing,
the Company shall pay Executive the gross amount of $200 as consideration for
Executive’s entry into this Agreement.

 

D.            Benefits.

 

                1.             Executive shall be entitled to all benefits
offered generally to employees of the Company.

 

                2.             Executive shall be entitled each
year during the term of this Agreement to a vacation of twenty-five (25)
business days, no two of which need be consecutive, during which time his
compensation shall be paid in full.

 

                3.             To the fullest extent permitted by
law, Company shall indemnify and hold harmless Executive for any and all
losses, cost, damage and expense including attorneys’ fees and court costs
incurred or sustained by Executive, in accordance with the present provisions
Article 5G of the Company’s Articles of Incorporation.

 

 

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II.            TERMS
AND CONDITIONS.

 

A.            Employment
At Will.

 

                1.  The Company and Executive agree that
Executive’s employment is not for any specific or minimum term, and that
subject to Section II(A)(2) of this Agreement, the continuation of Executive’s
employment is subject to the mutual consent of the Company and Executive, and
that it is terminable at will, meaning that either the Company or Executive may
terminate the employment at any time, for any reason or no reason, with or
without cause, notice, pre-termination warning or discipline, or other pre- or
post-termination procedures of any kind. 
Executive acknowledges and agrees that any prior representations to the
contrary are void and superseded by this Agreement.  Executive may not rely on any future
representations to the contrary, whether written or verbal, express or implied,
by any statement, conduct, policy, handbook, guideline or practice of Labor
Ready or its employees or agents. 
Nothing in this Agreement should be construed as creating any right,
contract or guarantee of employment.

 

2.             (a)           In the event of termination of
Executive’s employment for any reason, Executive shall be paid unpaid wages and
unused vacation earned through the termination date.

 

                (b)           If Labor Ready terminates Executive’s
employment without Cause or Executive terminates employment with Good Reason as
defined in this Agreement, in addition to the amounts described in Section
II(A)(2)(a) Executive shall be provided with the following as the sole remedy
for such termination, subject to withholding:

 

                (i)            separation payments for twelve (12)
months from the termination date at the base monthly salary in effect for
Executive on the termination date, with the actual period of receipt of such
payments being referred to as the “Severance Period”; and

 

                (ii)           continued vesting for a period of
twelve (12) months past the Executive’s employment termination date of any
previously awarded stock options, restricted stock and other equity awards in
compliance with the terms of the relevant plan or plans, and any applicable
sub-plan or option agreement, provided that all vested awards shall be
exercised prior to the end of such twelve-month period.

 

                (c)           To be entitled to the benefits set
forth in Section II(A)(2)(b), Executive must (i) sign and deliver and not
revoke a release in the form of Exhibit A to this Agreement in accordance with
its terms; and (ii) be in full compliance with all provisions of Section III
and IV of this Agreement.

 

3.     (a)           For
the purpose of this Agreement, “Cause,” as used herein, means any of the
following: (i) any material breach of this Agreement by Executive which, if
curable, has not been cured within twenty (20) days after Executive has been
given written notice of the need to cure such breach, or which breach, if
previously cured, recurs; (ii) unauthorized use or disclosure of Confidential
Information, as defined in this Agreement; (iii) Executive’s continued failure
to satisfactorily perform Executive’s essential responsibilities, in the good
faith discretion of the Board, provided that Executive has been given at least
30 days’ written notice of the need to cure the failure and cure has not been
effected within that time period, or which failure, if previously cured,
recurs; (iv) material failure of Executive to comply with rules, policies or
procedures of the Company as they may be amended from time to time, provided
that Executive has been given at least 30 days’ written notice of the need to
cure the failure, if such failure is curable, and cure has not been effected
within that time period, or which failure, if previously cured, recurs; (v)
dishonesty, fraud or gross negligence related to the business; (vi) personal
conduct that is materially detrimental to the business; or (vii) conviction of
or plea of nolo contendere to a
felony.

 

        (b)           “Good Reason,” as used herein, means
(i) any material breach of this Agreement by the Company which, if curable, has
not been cured within 20 days after the Company has been given written notice
of the need to cure the breach, or which breach, if previously cured, recurs;
or (ii) assignment of Executive, without Executive’s consent, to a position
that is not a management position.

 

 

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B.            Arbitration. 
The Company and Executive agree that any claim arising out of or
relating to this Agreement, or the breach of this Agreement, or Executive’s
application, employment, or termination of employment, shall be submitted to
and resolved by binding arbitration under the Federal Arbitration Act.  The Company and Executive agree that all
claims shall be submitted to arbitration including, but not limited to, claims
based on any alleged violation of Title VII or any other federal or state laws;
claims of discrimination, harassment, retaliation, wrongful termination,
compensation due or violation of civil rights; or any claim based in tort,
contract, or equity.  Any arbitration
between the Company and Executive will be administered by the American
Arbitration Association under its Employment Arbitration Rules then in
effect.  The award entered by the
arbitrator will be based solely upon the law governing the claims and defenses
pleaded, and will be final and binding in all respects.  Judgment on the award may be entered in any
court having jurisdiction.  In any such
arbitration, neither Executive nor Company shall be entitled to join or
consolidate claims in arbitration or arbitrate any claim as a representative or
member of a class.  The Company agrees to
pay for the arbiter’s fees where required by law.  In any claim or jurisdiction where this
agreement to arbitrate is not enforced, the Company and Executive waive any
right either may have to bring or join a class action or representative action,
and further waive any right either may have under statute or common law to a
jury trial.

 

C.            Duty
of Loyalty.  Executive agrees during working hours to
devote his full and undivided time, energy, knowledge, skill and ability to the
Company’s business, to the exclusions of all other business and sideline
interests.  Executive also agrees not to
be employed elsewhere unless first authorized by the Company in writing.  In no event will Executive allow other
activities to interfere with Executive’s duties to the Company.  Executive agrees to faithfully and diligently
perform all duties to the best of Executive’s ability.  Executive recognizes that the services to be
rendered under this Agreement require certain training, skills and experience,
and that this Agreement is entered into for the purpose of obtaining such
service for the Company.  Upon request,
Executive agrees to provide the Company with any information which Executive
possesses and which will be of benefit to the Company.  Executive agrees to perform his duties in a
careful, safe, loyal and prudent manner. 
Executive agrees to conduct him/herself in a way which will be a credit
to Labor Ready’s reputation and interests.

 

D.            Reimbursement. 
If Executive ever possesses any Labor Ready funds (including without
limitation cash and travel advances, overpayments made to Executive by Labor
Ready, amounts received by Executive due to Labor Ready’s error, unpaid credit
or phone charges, excess sick or vacation pay, or any debt owed Labor Ready for
any reason, including misuse or misappropriation of company assets), Executive
will remit them to Labor Ready corporate headquarters in Tacoma, Washington
daily unless directed otherwise in writing. 
If Executive’s employment ends, Executive will fully and accurately
account to Labor Ready for any Labor Ready funds and other property in
Executive’s possession.  If Executive
fails to do so, Executive hereby authorizes the Company (subject to any
limitations under applicable law) to make appropriate deductions from any
payment otherwise due Executive (including without limitation, Executive’s
paycheck, salary, bonus, commissions, expense reimbursements and benefits), in
addition to all other remedies available to the Company.

 

E.             Background
Investigation.  Executive agrees that at any time during
employment the Company may, subject to any applicable legal requirements,
investigate Executive’s background for any relevant information on any subject
which might have a bearing on job performance including, but not limited to,
employment history, education, financial integrity and credit worthiness, and
confirm that Executive has no criminal record during the last ten years.  Executive shall sign any and all documents
necessary for the Company to conduct such investigation.  For this purpose, Executive specifically authorizes
the Company to obtain any credit reports, background checks and other
information which may be useful. 
Executive acknowledges and, except as may be limited by applicable law,
agrees to abide at all times by the terms of Labor Ready’s drug and alcohol
policy.  Executive understands that
failure to comply with Labor Ready’s policies, including its drug and alcohol
policies may result in termination of employment.

 

 

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III.           NON-COMPETITION
AND NON-SOLICITATION.

 

A.            Non-Disclosure
of Confidential Information.

 

                1.             In
connection with Executive’s duties, Executive may have access to some or all of
Labor Ready’s “Confidential Information,” which includes the following, whether
recorded or mentally memorized: (i) the ideas, methods, techniques,
formats, specifications, procedures, designs, strategies, systems, processes,
data and software products which are unique to Labor Ready; (ii) all of
Labor Ready’s customers, marketing, pricing and financial information,
including the names, addresses and any other information concerning any
customer; (iii) the content of all of Labor Ready’s operations, sales and
training manuals; (iv) all other information now in existence or later
developed which is similar to the foregoing; and (v) all information which
is marked as confidential or explained to be confidential or which, by its
nature, is confidential.

 

                2.             Executive recognizes the importance
of protecting the confidentiality and secrecy of Confidential Information.  Executive agrees to use his best efforts to
protect Confidential Information from unauthorized disclosure to others.  Executive understands that protecting
Confidential Information from unauthorized disclosure is critically important
to Labor Ready’s success and competitive advantage, and that the unauthorized
disclosure of Confidential Information would greatly damage Labor Ready.  Executive recognizes and agrees that taking
and using a trade secret or Confidential Information by memory is no different
from taking it on paper or in some other tangible form.  Executive agrees that Executive will request
clarification from Labor Ready’s legal department if Executive is at all
uncertain as to whether any information or materials are “Confidential
Information.”

 

                3.             Executive agrees not to disclose
any Confidential Information to others, use any Confidential Information for
Executive’s own benefit or make copies of any Confidential Information without
the Company’s written consent, whether during or after Executive’s employment
with the Company.  Executive also agrees
to return all Confidential Information in his possession to the Company at
Labor Ready’s headquarters in Tacoma, Washington, immediately upon the Company’s
request.  If Executive ever believes that
any  person has received or disclosed or
intends to receive or disclose Confidential Information without the Company’s
consent, Executive agrees to immediately notify the Company.

 

                4.             If Executive’s employment with the
Company is terminated, Executive agrees to immediately return to Labor Ready,
at headquarters in Tacoma Washington, all manuals, mailing lists, customer
lists, supplies, equipment, checks, petty cash, and all other material and
records of any kind concerning Labor Ready’s business, that Executive may
possess.

 

B.            Non-Competition.

 

                1.             During the term of this Agreement
and for a period of two (2) years immediately following the termination of
employment with or without Cause or Good Reason, so long as Labor Ready
continues to carry on substantially the same business, Executive will not, for
any reason whatsoever, directly or indirectly, for Executive or on behalf of,
or in conjunction with, any other person(s), company, partnership, corporation
or business entity, engage in any of the following activities within the “Restricted
Area” (as hereinafter defined):  own,
manage, operate, control, be employed by, participate in, invest in, engage 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 at
the time of termination by Labor Ready, including, without limitation, the
solicitation of business or customers located within the Restricted Area.  For this purpose, the term “Restricted Area”
means a twenty-five (25) mile radius around each Labor Ready branch at the time
of termination and any location where Labor Ready has placed workers during
Executive’s employment.  This
non-competition agreement is enforceable whether Executive’s employment is
terminated by the Company or Executive.

 

                2.             Executive agrees that this covenant
is necessary to protect the intellectual property and trade secrets of the
Company in view of Executive’s key role with each branch of the Company and its
affiliates and the extent of confidential and proprietary information about the
entire Company and its affiliates to which Executive has information.  The
Company and Executive agree
that the provisions of this Section III(B) do not impose an undue hardship on Executive and are not injurious to the
public; that this provision is necessary to protect the business of 

 

4

 

the Company and its affiliates; that the nature of Executive’s responsibilities with the Company under this Agreement and Executive’s former responsibilities with
the Company provide and/or have provided Executive
with access to Confidential Information that is valuable and confidential to the Company; that the Company would not continue to employ Executive if Executive
did not agree to the provisions of this Section III(B); that this Section
III(B) is reasonable in terms of length of time and geographic scope; and that
consideration supports this Section III(B), including new provisions of a cash
payment of $200, which was not otherwise owed. 
In the event that a court or arbitrator determines that any provision of
this Section III(B) is unreasonably broad or extensive, including length of
time or geographic scope, Executive
agrees that such court or arbitrator should narrow such provision to the extent
necessary to make it reasonable and enforce the provision as narrowed.

 

C.            No
Employee Solicitation.  During the term of this
Agreement and for a period of two (2) years immediately following the
termination of employment, with or without Cause or Good Reason, so long as
Labor Ready continues to carry on substantially the same business, Executive
will not, for any reason whatsoever, directly or indirectly, for Executive or
on behalf of, or in conjunction with, any other person(s), company,
partnership, corporation or business entity, solicit, induce or otherwise
influence, or attempt to solicit, induce or otherwise influence, in any manner
any of Labor Ready’s employees to leave their employment with Labor Ready for
any reason, including for the purpose of becoming employed by Executive’s new
employer.

 

D.            No
Customer Solicitation.  Executive understands and
agrees that the methods employed in Labor Ready’s business will place Executive
in a close business and personal relationship with Labor Ready customers.  Thus, during the term of this Agreement and
for a period of two (2) years immediately following the termination of
employment with or without Cause or Good Reason, so long as Labor Ready
continues to carry on substantially the same business, Executive will not, for
any reason whatsoever, directly or indirectly, for Executive or on behalf of,
or in conjunction with, any other person(s), company, partnership, corporation
or business entity, contact, call upon, solicit, service, influence or attempt
to contact, call upon, solicit, service or influence any customers or potential
customers (prospects) of any branch where Executive was stationed within one
(1) year before termination of employment with the Company, or with whom Executive
had direct or indirect contact or for whom Executive had responsibility during
Executive’s tenure with the Company or otherwise assisted Labor Ready in
providing services to.

 

E.             General
Provisions.

 

                1.             If Executive violates any of the
covenants in this Section III, the time period covered by the covenants
will automatically be extended by a length of time equal to the time period
during which such violation occurred.

 

                2.             The covenants set forth above are
independent of any other provision of this Agreement.  Executive agrees that they will be
enforceable whether or not Executive has any claim against the Company.

 

                3.             Executive acknowledges that if
Executive violates any of the foregoing covenants, the damage to the Company
will be such that the Company is not likely to be made whole with a monetary
award.  Therefore, Executive agrees that
if Executive violates any such covenant, the Company will be entitled to a
temporary restraining order, a preliminary injunction and/or a permanent
injunction, in addition to any and all other legal or equitable remedies
available under law and equity.

 

                4.             Executive represents and warrants
that Executive has been in full compliance with the provisions protecting Labor
Ready’s Confidential Information as set forth in the Previous Employment
Agreement.

 

                5.             For the purposes of this Section
III, all references to Confidential Information or Confidential Information of
Labor Ready also apply to Confidential Information belonging to any affiliate
of Labor Ready.  Executive’s covenants in
subsections (B), (C) and (D) of this Section III shall protect affiliates of
Labor Ready to the same extent that they protect Labor Ready.

 

 

5

 

F.             Other
Employers and Obligations.

 

                1.             Executive represents to the Company
that Executive is not subject to any restriction or duties under any agreement
with any third party or otherwise which will be breached by employment with the
Company, or which will conflict with the Company’s best interests or Executive
obligations under this Agreement. 
Executive agrees to notify Executive’s supervisor promptly in the event
Executive is solicited for employment by any competitor of Labor Ready.

 

                2.             Executive warrants that his
employment with the Company will not violate any contractual obligations with
other parties.  Executive will not use
during his employment with the Company nor disclose to the Company any
confidential or proprietary information or trade secrets from any former or
current employers, principals, partners, co-venturers, customers or suppliers,
and will not bring onto the Company’s premises any unpublished document or any
property belonging to any such person or entities without their consent.  Executive will honor any non-disclosure, proprietary
rights, or other contractual agreements with any other person or entity and has
disclosed to the Company any such agreements that may bear on employment with
the Company.  If employment with the
Company is terminated, Executive agrees to tell his new employer about this
Agreement and its terms at the time of re-employment.

 

IV.           ASSIGNMENT
OF INVENTIONS

A.            Assignment. 
Executive will make prompt and full disclosure to the Company, will hold
in trust for the sole benefit of the Company, and will assign exclusively to
the Company all right, title and interest in and to any and all inventions,
discoveries, designs, developments, improvements, copyrightable material and
trade secrets (collectively herein “Inventions”) that Executive solely or
jointly may conceive, develop, author, reduce to practice or otherwise produce
during his employment with the Company.

 

B.            Outside
Inventions.  Executive’s obligation to assign shall not
apply to any Invention about which Executive can prove all the following:  (a) it was developed entirely on
Executive’s own time; (b) no equipment, supplies, facility, services or
trade secret information of Labor Ready was used in its development;
(c) it does not relate (i) directly to the business of Labor Ready or
(ii) to the actual or demonstrably anticipated business, research or
development of Labor Ready; and (d) it does not result from any work
performed by Executive for Labor Ready. 
Executive shall attach a list of all existing Inventions meeting these
requirements to this Agreement.

 

V.            COMPLIANCE
WITH LAWS AND CODE OF CONDUCT

 

A.            Commitment
to Compliance.  The Company is committed to providing equal
employment opportunity for all persons regardless of race, color, gender,
creed, religion, age, marital or family status, national origin, citizenship,
mental or physical disabilities, veteran status, ancestry, citizenship, HIV or
AIDS, sexual orientation, on-the-job-injuries, or the assertion of any other
legally enforceable rights.  Equal opportunity
extends to all aspects of the employment relationship, including hiring,
transfers, promotions, training, termination, working conditions, compensation,
benefits, and other terms and conditions of employment.  The Company is likewise committed to ensuring
that employees are accurately paid for all hours worked.

 

B.            Duty
to Comply with the Law.  Executive agrees to comply
with all federal, state and local laws and regulations, including equal
employment opportunity laws and wage and hour laws.  Executive agrees to immediately notify the
Company if Executive becomes aware of a violation of the law, or suspects a
violation of the law has or will occur. 
Executive acknowledges that Executive may be held personally liable for
intentional violations.

 

C.            Duty
to Comply with Labor Ready’s Code of Conduct.  Executive
acknowledges and agrees that it is his duty to be familiar with Labor Ready’s
Code of Conduct, and to comply with all of its provisions.

 

VI.           MISCELLANEOUS.

 

A.            Integration. 
No promises or other communications made by either the Company or
Executive are intended to be binding unless they are set forth in this
Agreement.  This Agreement contains the
entire agreement between the parties and replaces and supersedes any prior
agreements, including the Previous Employment Agreement.  This 

 

 

6

 

Agreement may not be modified except by an instrument signed by an
officer of the Company.  This Agreement
will be binding upon Executive’s heirs, executors, administrators and other
legal representatives.

 

B.            Choice
of Law.  The Company and Executive agree that this
Agreement and all interpretations of the provisions of this Agreement will be
governed by the laws of the State of Washington, without regard to choice of
law principles.

 

C.            No
Waiver.  If the Company waives any condition or term
of this Agreement, the Company is not waiving any other condition or term, nor
is the Company waiving any rights with respect to any future violation of the
same condition or term.  If the Company
chooses to refrain from enforcing any condition or term, the Company does not
intend to waive the right to do so. 
Sections II(B), II(E), III and IV of this Agreement are to remain
in effect after termination of the remainder of this Agreement.

 

D.            Severability. 
The provisions of this Agreement are intended to be severable from each
other.  No provision will be invalid
because another provision is ruled invalid or unenforceable.  If any provision in this Agreement is held to
be unenforceable in any respect, such unenforceability shall not affect any
other provision of this Agreement and shall be re-written to provide the
maximum effect consistent with the intent of the provision.

 

E.             Assignment. 
The Company reserves the right to assign this Agreement to an affiliated
company or to any successor in interest to the Company’s business without
notifying Executive.  All terms and
conditions of this Agreement will remain in effect following any such
assignment.

 

F.             Venue. 
Where the parties have mutually waived their right to arbitration in
writing or have not yet sought to enforce their right to compel arbitration,
venue for any legal action in connection with this Agreement will be limited
exclusively to the Washington State Superior Court for Pierce County, or the
United States District Court for the Western District of Washington at
Tacoma.  Executive agrees to submit to
the personal jurisdiction of the courts identified herein, and agrees to waive
any objection to personal jurisdiction in these courts.

 

	
  LABOR READY, INC. 

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
  By:

  	
  s/
  Joesph P. Sambataro, Jr. 

  	
   

  	
  /s/
  Gary North 

  
	
   

  	
   

  	
  Gary North

  
	
  Name:. 

  	
  Joseph P.
  Sambataro, Jr

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  CEO and
  President

  	
   

  	
   

  
						

 

 

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EXHIBIT A

 

RELEASE OF CLAIMS

 

 

This Release of Claims (“Release”) is hereby executed by Gary North (“Executive”)
in accordance with the Employment Agreement between Executive and Labor Ready,
Inc. (“Employer”), dated March 21, 2005 (“Employment Agreement”).

 

RECITALS

 

A.            Employer and
Executive are parties to the Employment Agreement.

 

B.            The Employment
Agreement provides for certain payments and benefits to Executive upon
termination of Executive’s employment under certain circumstances, provided
that Executive signs and delivers to Employer upon such termination a Release
in substantially the form of this Release.

 

C.            Executive desires
for Employer to make payments in accordance with the Employment Agreement and
therefore executes this Release.

 

TERMS

 

1.             Waiver, Release
and Covenant.  On behalf of Executive
and Executive’s marital community, heirs, executors, administrators and
assigns, Executive expressly waives, releases, discharges and acquits any and
all claims against Employer and its present, former and future affiliates,
related entities, predecessors, successors and assigns, and all of their
present, former and future officers, directors, stockholders, employees,
agents, partners, and members, in their individual and representative
capacities (collectively “Released Parties”) that arise from or relate to Executive’s
employment with Employer and/or the termination of such employment (“Released
Claims”).  This waiver and release
includes any and all Released Claims (including claims to attorneys’ fees),
damages, causes of action or disputes, whether known or unknown, based upon
acts or omissions occurring or that could be alleged to have occurred before
the execution of this Release.  Released
Claims include, without limitation, claims for wages, employee benefits, and
damages of any kind whatsoever arising out of any:  contract, express or implied; tort;
discrimination; wrongful termination; any federal, state, local or other
governmental statute or ordinance, including, without limitation, Title VII of
the Civil Rights Act of 1964, as amended; the Age Discrimination in Employment
Act, as amended (“ADEA”); the Employee Retirement Income Security Act of 1974;
and any other legal limitation on the employment relationship.  Executive also covenants and promises never
to file, press or join in any complaint or lawsuit for personal relief or any
amounts of any nature based on any Released Claim and agrees that any such
claim, if filed by Executive, shall be dismissed, except that this covenant and
promise does not apply to any claim of Executive challenging the validity of
this Release in connection with claims arising under the ADEA and/or the Older
Workers’ Benefit Protection Act of 1990 (“OWBPA”).  Executive represents and warrants that he is
the sole owner of all Released Claims and has not assigned, transferred, or
otherwise disposed of Executive’s right or interest in those matters.  Notwithstanding the foregoing, this waiver
and release does not apply to claims that arise after the date that the release
is executed, claims to vested benefits under ERISA, workers’ compensation
claims or any other claims that may not be released under this Release in
accordance with applicable law.

 

2.             Acknowledgment
of Sufficiency of Consideration. 
Executive acknowledges and agrees that in the absence of Executive’s
execution of this Release, Employer is not obligated to provide Executive with
the payment and benefits described in Section II(A)(2)(b) of the Employment
Agreement, and that the payment and benefits set forth in Section II(A)(2)(b)
of the Employment Agreement are adequate consideration for the covenants and
release herein.

 

3.             Covenants and
Obligations under Employment Agreement. 
Nothing in this Release supersedes or restricts any obligations that
Executive owes to Employer, including, without limitation, the obligation to
protect Employer’s 

 

 

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interests in confidential information and trade secrets and inventions
under the Employment Agreement and/or under applicable law.

 

4.             Review and
Revocation Period.  Executive has a
period of seven (7) calendar days after delivering the executed Release to
Employer to revoke the Release.  To
revoke, Executive must deliver a notice revoking his agreement to this Release
to the CEO of Employer.  This Release
shall become effective on the eighth day after delivery of this executed
Release by Executive to Employer (“Effective Date”), provided that Executive
has not revoked the Release.  Employer
shall have no obligation to provide Executive with any payment or benefits as
described in Section 6 of the Employment Agreement if Executive revokes this
Release.

 

5.             Governing Law.  This Release shall be interpreted in
accordance with the law of the State of Washington, without regard to the
conflicts of law provisions of such laws.

 

6.             Severability.  If any provision of this Release constitutes
a violation of any law or is or becomes unenforceable or void, then such
provision, to the extent only that it is in violation of law, unenforceable or
void, shall be deemed modified to the extent necessary so that it is no longer
in violation of law, unenforceable or void, and such provision will be enforced
to the fullest extent permitted by law. 
If such modification is not possible, such provision, to the extent that
it is in violation of law, unenforceable or void, shall be deemed severable
from the remaining provisions of this Release, which shall remain binding.

 

7.             Knowing and
Voluntary Agreement.  Executive
hereby warrants and represents that (a) Executive has carefully read this
Release and finds that it is written in a manner that he understands; (b)
Executive knows the contents hereof; (c) Executive has been advised to consult
with his personal attorney regarding the Release and its effects and has done
so; (d) Executive understands that he is giving up all Released Claims and
all damages and disputes that have arisen before the date of this Release,
except as provided herein; (e) Executive has had ample time to review and
analyze this entire Release; (f) Executive did not rely upon any representation
or statement concerning the subject matter of this Release, except as expressly
stated in the Release; (g) Executive has been given at least twenty-one
(21) days to consider this Release and seven (7) days to revoke this Release;
(h) Executive understands the Release’s final and binding effect;
(i) Executive has signed this Release as his free and voluntary act.

 

8.             Arbitration and Venue. 
Employer and Executive agree that any claim arising out of or relating
to this Agreement, or the breach of this Agreement shall be submitted to and
resolved by binding arbitration under the Federal Arbitration Act.  Employer and Executive agree that all claims
shall be submitted to arbitration including, but not limited to, claims based
on any alleged violation of Title VII or any other federal or state laws;
claims of discrimination, harassment, retaliation, wrongful termination,
compensation due or violation of civil rights; or any claim based in tort,
contract, or equity.  Any arbitration
between Employer and Executive will be administered by the American Arbitration
Association under its Employment Arbitration Rules then in effect.  The award entered by the arbitrator will be
based solely upon the law governing the claims and defenses pleaded, and will
be final and binding in all respects. 
Judgment on the award may be entered in any court having
jurisdiction.  In any such arbitration,
neither  nor Employer shall be entitled
to join or consolidate claims in arbitration or arbitrate any claim as a
representative or member of a class. 
Employer agrees to pay for the arbiter’s fees where required by
law.  In any claim or jurisdiction where
this agreement to arbitrate is not enforced, Employer and Executive waive any
right either may have to bring or join a class action or representative action,
and further waive any right either may have under statute or common law to a
jury trial. Where the parties have mutually waived their right to arbitration
in writing or have not yet sought to enforce their right to compel arbitration,
venue for any legal action in connection with this Agreement will be limited
exclusively to the Washington State Superior Court for Pierce County, or the
United States District Court for the Western District of Washington at Tacoma.  Executive agrees to submit to the personal
jurisdiction of the courts identified herein, and agrees to waive any objection
to personal jurisdiction in these courts.

 

	
  EXECUTED this 21st day of March, 2005.

  
	
   

  
	
  /s/
  Gary North

  
	
  Gary North

  

 

 

9EXHIBIT 10.28

EXECUTIVE EMPLOYMENT AGREEMENT

 

 

This Agreement is between Steven C. Cooper (“Executive”) and Labor
Ready, Inc. or the Labor Ready, Inc. subsidiary employing Executive (“Labor
Ready” or the “Company”), and is effective as of March 23, 2005.

 

RECITALS

 

A.            Executive has served in a management or
executive capacity with Labor Ready since January 2001 and as of the date of
this Agreement serves in the role of Executive Vice President and Chief
Financial Officer.  In this capacity,
Executive has served a key role on the executive team and has had company-wide
management responsibility, including responsibility for affiliates of Labor
Ready.  Additionally, Executive has had
and is expected to continue to have access to confidential and propriety information
of Labor Ready which is vital to the ability of Labor Ready and its affiliates
to compete in all of its locations. 
Executive’s entering into this Agreement is a condition of continued
employment and continued access to such materials.

 

B.            Executive and Labor Ready have entered
into a contract dated January 9, 2001 (“Previous Employment Agreement”).  The Previous Employment Agreement expires on
January 8, 2006, unless sooner terminated, subject to the survival of certain
provisions.

 

C.            Executive wishes to continue employment
with Labor Ready and Labor Ready wishes to continue to employ Executive under
the terms and conditions stated in this Agreement.

 

I.              COMPENSATION
AND POSITION.

 

A.            Employment. 
In consideration of payment to Executive in the amount of $200 and the
covenants and promises contained herein and other good and valuable
consideration, the Company hereby agrees to continue to employ Executive and
Executive hereby agrees to be employed by the Company, upon the terms and
conditions hereinafter set forth.

 

B.            Effective Date.

 

1.             Except as noted in Section 1(B)(2), the terms and
conditions of this Agreement shall become effective upon the expiration of the
Previous Employment Agreement on January 8, 2006, provided that Executive
remains employed with Labor Ready as of that date.

 

2.             Notwithstanding the foregoing, as of the date of this
Agreement, the Previous Employment Agreement is amended as follows:

 

(a)           The following new provision is added as new Paragraph 23
of the Previous Employment Agreement:

 

In the event of termination of Executive’s employment
other than for cause under Paragraph 11(a), the Company shall pay to Executive
the following amount, which, except as set forth in Exhibit A regarding certain
stock option grants, shall be Executive’s exclusive remedy for such
termination, subject to withholding:

 

(i)  unpaid wages and unused vacation earned
through the termination date; and

 

1

 

(ii)  separation payments for twelve (12) months
from the termination date at the based monthly salary in effect for Executive
on the termination date.

 

To be entitled to the benefits set forth in this
Paragraph 23(b), Executive must sign and deliver and not revoke a release in
the form of Exhibit C to this Agreement in accordance with its terms and be in
full compliance with Paragraphs 15 and 16 of this Agreement.

 

(b)           Exhibit A of this Agreement shall become Exhibit C to the
Previous Employment Agreement, as amended.

 

C.            Position
and Compensation.  Executive’s position and compensation will be
set by the Board of Directors based on recommendations of the Compensation
Committee.  In addition to the foregoing,
the Company shall pay Executive the gross amount of $200 as consideration for
Executive’s entry into this Agreement.

 

D.            Benefits.

 

                1.             Executive shall be entitled to all benefits
offered generally to employees of the Company.

 

                2.             Executive shall be entitled each
year during the term of this Agreement to a vacation of twenty-five (25)
business days, no two of which need be consecutive, during which time his
compensation shall be paid in full.

 

                3.             To the fullest extent permitted by
law, Company shall indemnify and hold harmless Executive for any and all
losses, cost, damage and expense including attorneys’ fees and court costs
incurred or sustained by Executive, in accordance with the present provisions
Article 5G of the Company’s Articles of Incorporation.

 

II.            TERMS
AND CONDITIONS.

 

A.            Employment
At Will.

 

                1.  The Company and Executive agree that Executive’s
employment is not for any specific or minimum term, and that subject to Section
II(A)(2) of this Agreement, the continuation of Executive’s employment is
subject to the mutual consent of the Company and Executive, and that it is
terminable at will, meaning that either the Company or Executive may terminate
the employment at any time, for any reason or no reason, with or without cause,
notice, pre-termination warning or discipline, or other pre- or
post-termination procedures of any kind. 
Executive acknowledges and agrees that any prior representations to the
contrary are void and superseded by this Agreement.  Executive may not rely on any future
representations to the contrary, whether written or verbal, express or implied,
by any statement, conduct, policy, handbook, guideline or practice of Labor
Ready or its employees or agents. 
Nothing in this Agreement should be construed as creating any right,
contract or guarantee of employment.

 

2.             (a)           In the event of termination of
Executive’s employment for any reason, Executive shall be paid unpaid wages and
unused vacation earned through the termination date.

 

                (b)           If Labor Ready terminates Executive’s
employment without Cause or Executive terminates employment with Good Reason as
defined in this Agreement, in addition to the amounts described in Section
II(A)(2)(a) Executive shall be provided with the following as the sole remedy
for such termination, subject to withholding:

 

                (i)            separation payments for twelve (12)
months from the termination date at the base monthly salary in effect for
Executive on the termination date, with the actual period of receipt of such
payments being referred to as the “Severance Period”; and

 

2

 

                (ii)           continued vesting for a period of
twelve (12) months past the Executive’s employment termination date of any
previously awarded stock options, restricted stock and other equity awards in
compliance with the terms of the relevant plan or plans, and any applicable
sub-plan or option agreement, provided that all vested awards shall be
exercised prior to the end of such twelve-month period.

 

        (c)           To be entitled to the benefits set
forth in Section II(A)(2)(b), Executive must (i) sign and deliver and not
revoke a release in the form of Exhibit A to this Agreement in accordance with
its terms; and (ii) be in full compliance with all provisions of Section III
and IV of this Agreement.

 

3.     (a)           For the purpose of this Agreement, “Cause,”
as used herein, means any of the following: (i) any material breach of this
Agreement by Executive which, if curable, has not been cured within twenty (20)
days after Executive has been given written notice of the need to cure such
breach, or which breach, if previously cured, recurs; (ii) unauthorized use or disclosure
of Confidential Information, as defined in this Agreement; (iii) Executive’s
continued failure to satisfactorily perform Executive’s essential
responsibilities, in the good faith discretion of the Board, provided that
Executive has been given at least 30 days’ written notice of the need to cure
the failure and cure has not been effected within that time period, or which
failure, if previously cured, recurs; (iv) material failure of Executive to
comply with rules, policies or procedures of the Company as they may be amended
from time to time, provided that Executive has been given at least 30 days’
written notice of the need to cure the failure, if such failure is curable, and
cure has not been effected within that time period, or which failure, if previously
cured, recurs; (v) dishonesty, fraud or gross negligence related to the
business; (vi) personal conduct that is materially detrimental to the business;
or (vii) conviction of or plea of nolo
contendere to a felony.

 

        (b)           “Good Reason,” as used herein, means
(i) any material breach of this Agreement by the Company which, if curable, has
not been cured within 20 days after the Company has been given written notice
of the need to cure the breach, or which breach, if previously cured, recurs;
or (ii) assignment of Executive, without Executive’s consent, to a position
that is not a management position.

 

B.            Arbitration. 
The Company and Executive agree that any claim arising out of or
relating to this Agreement, or the breach of this Agreement, or Executive’s
application, employment, or termination of employment, shall be submitted to
and resolved by binding arbitration under the Federal Arbitration Act.  The Company and Executive agree that all
claims shall be submitted to arbitration including, but not limited to, claims
based on any alleged violation of Title VII or any other federal or state laws;
claims of discrimination, harassment, retaliation, wrongful termination,
compensation due or violation of civil rights; or any claim based in tort,
contract, or equity.  Any arbitration
between the Company and Executive will be administered by the American
Arbitration Association under its Employment Arbitration Rules then in
effect.  The award entered by the
arbitrator will be based solely upon the law governing the claims and defenses
pleaded, and will be final and binding in all respects.  Judgment on the award may be entered in any
court having jurisdiction.  In any such
arbitration, neither  Executive nor
Company shall be entitled to join or consolidate claims in arbitration or
arbitrate any claim as a representative or member of a class.  The Company agrees to pay for the arbiter’s
fees where required by law.  In any claim
or jurisdiction where this agreement to arbitrate is not enforced, the Company
and Executive waive any right either may have to bring or join a class action
or representative action, and further waive any right either may have under
statute or common law to a jury trial.

 

C.            Duty
of Loyalty.  Executive agrees during working hours to
devote his full and undivided time, energy, knowledge, skill and ability to the
Company’s business, to the exclusions of all other business and sideline
interests.  Executive also agrees not to
be employed elsewhere unless first authorized by the Company in writing.  In no event will Executive allow other
activities to interfere with Executive’s duties to the Company.  Executive agrees to faithfully and diligently
perform all duties to the best of Executive’s ability.  Executive recognizes that the services to be
rendered under this Agreement require certain training, skills and experience,
and that this Agreement is entered into for the purpose of obtaining such
service for the Company.  Upon request,
Executive agrees to provide 

 

3

 

the Company with any information which Executive possesses and which
will be of benefit to the Company. 
Executive agrees to perform his duties in a careful, safe, loyal and
prudent manner.  Executive agrees to
conduct him/herself in a way which will be a credit to Labor Ready’s reputation
and interests.

 

D.            Reimbursement. 
If Executive ever possesses any Labor Ready funds (including without
limitation cash and travel advances, overpayments made to Executive by Labor
Ready, amounts received by Executive due to Labor Ready’s error, unpaid credit
or phone charges, excess sick or vacation pay, or any debt owed Labor Ready for
any reason, including misuse or misappropriation of company assets), Executive
will remit them to Labor Ready corporate headquarters in Tacoma, Washington
daily unless directed otherwise in writing. 
If Executive’s employment ends, Executive will fully and accurately
account to Labor Ready for any Labor Ready funds and other property in
Executive’s possession.  If Executive
fails to do so, Executive hereby authorizes the Company (subject to any
limitations under applicable law) to make appropriate deductions from any
payment otherwise due Executive (including without limitation, Executive’s
paycheck, salary, bonus, commissions, expense reimbursements and benefits), in
addition to all other remedies available to the Company.

 

E.             Background
Investigation.  Executive agrees that at any time during
employment the Company may, subject to any applicable legal requirements, investigate
Executive’s background for any relevant information on any subject which might
have a bearing on job performance including, but not limited to, employment
history, education, financial integrity and credit worthiness, and confirm that
Executive has no criminal record during the last ten years.  Executive shall sign any and all documents
necessary for the Company to conduct such investigation.  For this purpose, Executive specifically
authorizes the Company to obtain any credit reports, background checks and
other information which may be useful. 
Executive acknowledges and, except as may be limited by applicable law,
agrees to abide at all times by the terms of Labor Ready’s drug and alcohol
policy.  Executive understands that
failure to comply with Labor Ready’s policies, including its drug and alcohol
policies may result in termination of employment.

 

III.           NON-COMPETITION AND NON-SOLICITATION.

 

A.            Non-Disclosure
of Confidential Information.

 

                1.             In connection with Executive’s
duties, Executive may have access to some or all of Labor Ready’s “Confidential
Information,” which includes the following, whether recorded or mentally
memorized: (i) the ideas, methods, techniques, formats, specifications,
procedures, designs, strategies, systems, processes, data and software products
which are unique to Labor Ready; (ii) all of Labor Ready’s customers,
marketing, pricing and financial information, including the names, addresses
and any other information concerning any customer; (iii) the content of
all of Labor Ready’s operations, sales and training manuals; (iv) all
other information now in existence or later developed which is similar to the
foregoing; and (v) all information which is marked as confidential or
explained to be confidential or which, by its nature, is confidential.

 

                2.             Executive recognizes the importance
of protecting the confidentiality and secrecy of Confidential Information.  Executive agrees to use his best efforts to
protect Confidential Information from unauthorized disclosure to others.  Executive understands that protecting
Confidential Information from unauthorized disclosure is critically important
to Labor Ready’s success and competitive advantage, and that the unauthorized
disclosure of Confidential Information would greatly damage Labor Ready.  Executive recognizes and agrees that taking
and using a trade secret or Confidential Information by memory is no different
from taking it on paper or in some other tangible form.  Executive agrees that Executive will request
clarification from Labor Ready’s legal department if Executive is at all
uncertain as to whether any information or materials are “Confidential
Information.”

 

                3.             Executive agrees not to disclose
any Confidential Information to others, use any Confidential Information for Executive’s
own benefit or make copies of any Confidential Information without the Company’s
written consent, whether during or after Executive’s employment with the
Company.  Executive also agrees to return
all Confidential Information in his possession to the Company at Labor Ready’s
headquarters in Tacoma, Washington, immediately upon the Company’s
request.  If Executive ever believes that
any  person has received or 

 

4

 

disclosed or intends to receive or disclose Confidential Information
without the Company’s consent, Executive agrees to immediately notify the
Company.

 

                4.             If Executive’s employment with the
Company is terminated, Executive agrees to immediately return to Labor Ready,
at headquarters in Tacoma Washington, all manuals, mailing lists, customer
lists, supplies, equipment, checks, petty cash, and all other material and
records of any kind concerning Labor Ready’s business, that Executive may
possess.

 

B.            Non-Competition.

 

                1.             During the term of this Agreement
and for a period of two (2) years immediately following the termination of
employment with or without Cause or Good Reason, so long as Labor Ready
continues to carry on substantially the same business, Executive will not, for
any reason whatsoever, directly or indirectly, for Executive or on behalf of,
or in conjunction with, any other person(s), company, partnership, corporation
or business entity, engage in any of the following activities within the “Restricted
Area” (as hereinafter defined):  own,
manage, operate, control, be employed by, participate in, invest in, engage 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 at
the time of termination by Labor Ready, including, without limitation, the
solicitation of business or customers located within the Restricted Area.  For this purpose, the term “Restricted Area”
means a twenty-five (25) mile radius around each Labor Ready branch at the time
of termination and any location where Labor Ready has placed workers during
Executive’s employment.  This
non-competition agreement is enforceable whether Executive’s employment is
terminated by the Company or Executive.

 

                2.             Executive agrees that this covenant
is necessary to protect the intellectual property and trade secrets of the
Company in view of Executive’s key role with each branch of the Company and its
affiliates and the extent of confidential and proprietary information about the
entire Company and its affiliates to which Executive has information.  The
Company and Executive agree
that the provisions of this Section III(B) do not impose an undue hardship on Executive and are not injurious to the
public; that this provision is necessary to protect the business of the Company and its affiliates; that the
nature of Executive’s
responsibilities with the Company
under this Agreement and Executive’s
former responsibilities with the Company provide and/or have provided Executive with access to Confidential
Information that is valuable and confidential to the Company; that the
Company would not continue to employ Executive
if Executive did not agree to the
provisions of this Section III(B); that this Section III(B) is reasonable
in terms of length of time and geographic scope; and that consideration
supports this Section III(B), including new provisions of a cash payment of
$200, which was not otherwise owed.  In
the event that a court or arbitrator determines that any provision of this
Section III(B) is unreasonably broad or extensive, including length of time and
geographic scope, Executive agrees
that such court or arbitrator should narrow such provision to the extent
necessary to make it reasonable and enforce the provision as narrowed.

 

C.            No
Employee Solicitation.  During the term of this
Agreement and for a period of two (2) years immediately following the
termination of employment, with or without Cause or Good Reason, so long as
Labor Ready continues to carry on substantially the same business, Executive
will not, for any reason whatsoever, directly or indirectly, for Executive or
on behalf of, or in conjunction with, any other person(s), company,
partnership, corporation or business entity, solicit, induce or otherwise
influence, or attempt to solicit, induce or otherwise influence, in any manner
any of Labor Ready’s employees to leave their employment with Labor Ready for
any reason, including for the purpose of becoming employed by Executive’s new
employer.

 

D.            No
Customer Solicitation.  Executive understands and
agrees that the methods employed in Labor Ready’s business will place Executive
in a close business and personal relationship with Labor Ready customers.  Thus, during the term of this Agreement and
for a period of two (2) years immediately following the termination of
employment with or without Cause or Good Reason, so long as Labor Ready
continues to carry on substantially the same business, Executive will not, for
any reason whatsoever, directly or indirectly, for Executive or on behalf of,
or in conjunction with, any other person(s), company, partnership, corporation
or business entity, contact, call upon, solicit, service, influence or attempt
to contact, call upon, solicit, service or influence any customers or potential

 

5

 

customers (prospects) of any branch where Executive was stationed
within one (1) year before termination of employment with the Company, or with
whom Executive had direct or indirect contact or for whom Executive had
responsibility during Executive’s tenure with the Company or otherwise assisted
Labor Ready in providing services to.

 

E.             General
Provisions.

 

                1.             If Executive violates any of the
covenants in this Section III, the time period covered by the covenants will
automatically be extended by a length of time equal to the time period during
which such violation occurred.

 

                2.             The covenants set forth above are
independent of any other provision of this Agreement.  Executive agrees that they will be
enforceable whether or not Executive has any claim against the Company.

 

                3.             Executive acknowledges that if
Executive violates any of the foregoing covenants, the damage to the Company
will be such that the Company is not likely to be made whole with a monetary
award.  Therefore, Executive agrees that
if Executive violates any such covenant, the Company will be entitled to a
temporary restraining order, a preliminary injunction and/or a permanent
injunction, in addition to any and all other legal or equitable remedies available
under law and equity.

 

                4.             Executive represents and warrants
that Executive has been in full compliance with the provisions protecting Labor
Ready’s Confidential Information as set forth in the Previous Employment
Agreement.

 

                5.             For the purpose of this Section
III, all references to Confidential Information or Confidential Information of
Labor Ready also apply to Confidential Information belonging to any affiliate
of Labor Ready.  Executive’s covenants in
subsections (B), (C) and (D) of this Section III shall protect affiliates of
Labor Ready to the same extent that they protect Labor Ready.

 

F.             Other
Employers and Obligations.

 

                1.             Executive represents to the Company
that Executive is not subject to any restriction or duties under any agreement
with any third party or otherwise which will be breached by employment with the
Company, or which will conflict with the Company’s best interests or Executive
obligations under this Agreement. 
Executive agrees to notify Executive’s supervisor promptly in the event
Executive is solicited for employment by any competitor of Labor Ready.

 

                2.             Executive warrants that his
employment with the Company will not violate any contractual obligations with
other parties.  Executive will not use
during his employment with the Company nor disclose to the Company any
confidential or proprietary information or trade secrets from any former or
current employers, principals, partners, co-venturers, customers or suppliers,
and will not bring onto the Company’s premises any unpublished document or any
property belonging to any such person or entities without their consent.  Executive will honor any non-disclosure,
proprietary rights, or other contractual agreements with any other person or entity
and has disclosed to the Company any such agreements that may bear on
employment with the Company.  If
employment with the Company is terminated, Executive agrees to tell his new
employer about this Agreement and its terms at the time of re-employment.

 

IV.           ASSIGNMENT
OF INVENTIONS.

 

A.            Assignment. 
Executive will make prompt and full disclosure to the Company, will hold
in trust for the sole benefit of the Company, and will assign exclusively to
the Company all right, title and interest in and to any and all inventions,
discoveries, designs, developments, improvements, copyrightable material and
trade secrets (collectively herein “Inventions”) that Executive solely or
jointly may conceive, develop, author, reduce to practice or otherwise produce
during his employment with the Company.

 

6

 

B.            Outside
Inventions.  Executive’s obligation to assign shall not
apply to any Invention about which Executive can prove all the following:  (a) it was developed entirely on
Executive’s own time; (b) no equipment, supplies, facility, services or
trade secret information of Labor Ready was used in its development;
(c) it does not relate (i) directly to the business of Labor Ready or
(ii) to the actual or demonstrably anticipated business, research or
development of Labor Ready; and (d) it does not result from any work
performed by Executive for Labor Ready. 
Executive shall attach a list of all existing Inventions meeting these
requirements to this Agreement.

 

V.            COMPLIANCE
WITH LAWS AND CODE OF CONDUCT.

 

A.            Commitment
to Compliance.  The Company is committed to providing equal
employment opportunity for all persons regardless of race, color, gender,
creed, religion, age, marital or family status, national origin, citizenship,
mental or physical disabilities, veteran status, ancestry, citizenship, HIV or
AIDS, sexual orientation, on-the-job-injuries, or the assertion of any other
legally enforceable rights.  Equal
opportunity extends to all aspects of the employment relationship, including
hiring, transfers, promotions, training, termination, working conditions,
compensation, benefits, and other terms and conditions of employment.  The Company is likewise committed to ensuring
that employees are accurately paid for all hours worked.

 

B.            Duty
to Comply with the Law.  Executive agrees to comply
with all federal, state and local laws and regulations, including equal
employment opportunity laws and wage and hour laws.  Executive agrees to immediately notify the
Company if Executive becomes aware of a violation of the law, or suspects a
violation of the law has or will occur. 
Executive acknowledges that Executive may be held personally liable for
intentional violations.

 

C.            Duty
to Comply with Labor Ready’s Code of Conduct.  Executive
acknowledges and agrees that it is his duty to be familiar with Labor Ready’s
Code of Conduct, and to comply with all of its provisions.

 

VI.           MISCELLANEOUS.

 

A.            Integration. 
No promises or other communications made by either the Company or
Executive are intended to be binding unless they are set forth in this
Agreement.  This Agreement contains the
entire agreement between the parties and replaces and supersedes any prior
agreements, including the Previous Employment Agreement, except
as noted herein.  This Agreement may not
be modified except by an instrument signed by an officer of the Company.  This Agreement will be binding upon Executive’s
heirs, executors, administrators and other legal representatives.

 

B.            Choice
of Law.  The Company and Executive agree that this
Agreement and all interpretations of the provisions of this Agreement will be
governed by the laws of the State of Washington, without regard to choice of
law principles.

 

C.            No
Waiver.  If the Company waives any condition or term
of this Agreement, the Company is not waiving any other condition or term, nor
is the Company waiving any rights with respect to any future violation of the
same condition or term.  If the Company
chooses to refrain from enforcing any condition or term, the Company does not
intend to waive the right to do so. 
Sections II(B), II(E), III and IV of this Agreement are to remain
in effect after termination of the remainder of this Agreement.

 

D.            Severability. 
The provisions of this Agreement are intended to be severable from each
other.  No provision will be invalid
because another provision is ruled invalid or unenforceable.  If any provision in this Agreement is held to
be unenforceable in any respect, such unenforceability shall not affect any
other provision of this Agreement and shall be re-written to provide the
maximum effect consistent with the intent of the provision.

 

E.             Assignment. 
The Company reserves the right to assign this Agreement to an affiliated
company or to any successor in interest to the Company’s business without
notifying Executive.  All terms and
conditions of this Agreement will remain in effect following any such
assignment.

 

7

 

F.             Venue. 
Where the parties have mutually waived their right to arbitration in
writing or have not yet sought to enforce their right to compel arbitration,
venue for any legal action in connection with this Agreement will be limited
exclusively to the Washington State Superior Court for Pierce County, or the
United States District Court for the Western District of Washington at
Tacoma.  Executive agrees to submit to
the personal jurisdiction of the courts identified herein, and agrees to waive
any objection to personal jurisdiction in these courts.

 

	
  LABOR READY, INC.

  	
  EXECUTIVE 

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Joseph P. Sambataro, Jr.

  	
   

  	
  /s/ Steven C. Cooper

  
	
   

  	
   

  	
   

  	
  Steven C. Cooper

  
	
  Name: 

  	
  Joseph P. Sambataro, Jr.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  President and CEO

  	
   

  	
   

  

 

8

 

EXHIBIT A

 

RELEASE OF CLAIMS

 

 

This Release of Claims (“Release”) is hereby executed by Steven C.
Cooper (“Executive”) in accordance with the Employment Agreement between
Executive and Labor Ready, Inc. (“Employer”), dated                     
(“Employment Agreement”).

 

RECITALS

 

A.            Employer and
Executive are parties to the Employment Agreement.

 

B.            The Employment
Agreement provides for certain payments and benefits to Executive upon
termination of Executive’s employment under certain circumstances, provided
that Executive signs and delivers to Employer upon such termination a Release
in substantially the form of this Release.

 

C.            Executive desires
for Employer to make payments in accordance with the Employment Agreement and
therefore executes this Release.

 

TERMS

 

1.             Waiver, Release
and Covenant.  On behalf of Executive
and Executive’s marital community, heirs, executors, administrators and
assigns, Executive expressly waives, releases, discharges and acquits any and
all claims against Employer and its present, former and future affiliates,
related entities, predecessors, successors and assigns, and all of their
present, former and future officers, directors, stockholders, employees,
agents, partners, and members, in their individual and representative
capacities (collectively “Released Parties”) that arise from or relate to
Executive’s employment with Employer and/or the termination of such employment
(“Released Claims”).  This waiver and
release includes any and all Released Claims (including claims to attorneys’
fees), damages, causes of action or disputes, whether known or unknown, based
upon acts or omissions occurring or that could be alleged to have occurred
before the execution of this Release. 
Released Claims include, without limitation, claims for wages, employee
benefits, and damages of any kind whatsoever arising out of any:  contract, express or implied; tort;
discrimination; wrongful termination; any federal, state, local or other
governmental statute or ordinance, including, without limitation, Title VII of
the Civil Rights Act of 1964, as amended; the Age Discrimination in Employment
Act, as amended (“ADEA”); the Employee Retirement Income Security Act of 1974;
and any other legal limitation on the employment relationship.  Executive also covenants and promises never
to file, press or join in any complaint or lawsuit for personal relief or any
amounts of any nature based on any Released Claim and agrees that any such
claim, if filed by Executive, shall be dismissed, except that this covenant and
promise does not apply to any claim of Executive challenging the validity of
this Release in connection with claims arising under the ADEA and/or the Older
Workers’ Benefit Protection Act of 1990 (“OWBPA”).  Executive represents and warrants that he is
the sole owner of all Released Claims and has not assigned, transferred, or
otherwise disposed of Executive’s right or interest in those matters.  Notwithstanding the foregoing, this waiver
and release does not apply to claims that arise after the date that the release
is executed, claims to vested benefits under ERISA, workers’ compensation claims
or any other claims that may not be released under this Release in accordance
with applicable law.

 

2.             Acknowledgment
of Sufficiency of Consideration. 
Executive acknowledges and agrees that in the absence of Executive’s
execution of this Release, Employer is not obligated to provide Executive with
the payment and benefits described in Section II(A)(2)(b) of the Employment
Agreement, and that the payment and benefits set forth in Section II(A)(2)(b)
of the Employment Agreement are adequate consideration for the covenants and
release herein.

 

3.             Covenants and
Obligations under Employment Agreement. 
Nothing in this Release supersedes or restricts any obligations that
Executive owes to Employer, including, without limitation, the obligation to
protect Employer’s interests in confidential information and trade secrets and
inventions under the Employment Agreement and/or under applicable law.

 

9

 

4.             Review and
Revocation Period.  Executive has a
period of seven (7) calendar days after delivering the executed Release to
Employer to revoke the Release.  To
revoke, Executive must deliver a notice revoking his agreement to this Release
to the CEO of Employer.  This Release
shall become effective on the eighth day after delivery of this executed
Release by Executive to Employer (“Effective Date”), provided that Executive
has not revoked the Release.  Employer
shall have no obligation to provide Executive with any payment or benefits as
described in Section 6 of the Employment Agreement if Executive revokes this
Release.

 

5.             Governing Law.  This Release shall be interpreted in
accordance with the law of the State of Washington, without regard to the
conflicts of law provisions of such laws.

 

6.             Severability.  If any provision of this Release constitutes
a violation of any law or is or becomes unenforceable or void, then such
provision, to the extent only that it is in violation of law, unenforceable or
void, shall be deemed modified to the extent necessary so that it is no longer
in violation of law, unenforceable or void, and such provision will be enforced
to the fullest extent permitted by law. 
If such modification is not possible, such provision, to the extent that
it is in violation of law, unenforceable or void, shall be deemed severable
from the remaining provisions of this Release, which shall remain binding.

 

7.             Knowing and
Voluntary Agreement.  Executive
hereby warrants and represents that (a) Executive has carefully read this
Release and finds that it is written in a manner that he understands; (b)
Executive knows the contents hereof; (c) Executive has been advised to consult
with his personal attorney regarding the Release and its effects and has done
so; (d) Executive understands that he is giving up all Released Claims and
all damages and disputes that have arisen before the date of this Release,
except as provided herein; (e) Executive has had ample time to review and
analyze this entire Release; (f) Executive did not rely upon any representation
or statement concerning the subject matter of this Release, except as expressly
stated in the Release; (g) Executive has been given at least twenty-one
(21) days to consider this Release and seven (7) days to revoke this Release;
(h) Executive understands the Release’s final and binding effect;
(i) Executive has signed this Release as his free and voluntary act.

 

8.             Arbitration
and Venue.  Employer and Executive
agree that any claim arising out of or relating to this Agreement, or the
breach of this Agreement shall be submitted to and resolved by binding
arbitration under the Federal Arbitration Act. 
Employer and Executive agree that all claims shall be submitted to
arbitration including, but not limited to, claims based on any alleged
violation of Title VII or any other federal or state laws; claims of
discrimination, harassment, retaliation, wrongful termination, compensation due
or violation of civil rights; or any claim based in tort, contract, or
equity.  Any arbitration between Employer
and Executive will be administered by the American Arbitration Association
under its Employment Arbitration Rules then in effect.  The award entered by the arbitrator will be
based solely upon the law governing the claims and defenses pleaded, and will
be final and binding in all respects. 
Judgment on the award may be entered in any court having
jurisdiction.  In any such arbitration,
neither  nor Employer shall be entitled
to join or consolidate claims in arbitration or arbitrate any claim as a
representative or member of a class.  Employer
agrees to pay for the arbiter’s fees where required by law.  In any claim or jurisdiction where this
agreement to arbitrate is not enforced, Employer and Executive waive any right
either may have to bring or join a class action or representative action, and
further waive any right either may have under statute or common law to a jury
trial. Where the parties have mutually waived their right to arbitration in
writing or have not yet sought to enforce their right to compel arbitration,
venue for any legal action in connection with this Agreement will be limited
exclusively to the Washington State Superior Court for Pierce County, or the
United States District Court for the Western District of Washington at
Tacoma.  Executive agrees to submit to
the personal jurisdiction of the courts identified herein, and agrees to waive
any objection to personal jurisdiction in these courts.

 

EXECUTED this 23rd day of March, 2005.

 

 

 

 

	
  /s/ Steven C. Cooper

  
	
  Steven C. Cooper

  

 

10

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