Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - UltraGuard Water Systems Corp. - Exhibit 4.2

Exhibit 4.2

SECTION 10(A) PROSPECTUS
  OF 

  ULTRAGUARD WATER SYSTEMS CORP.
  

December 15, 2004: This document constitutes part of a prospectus covering securities of UltraGuard Water Systems Corp., a Nevada corporation (“Company”), that have been registered with the Securities and Exchange Commission
(“Commission”) under the Securities Act of 1933. This document, a Section 10(a) Prospectus, contains and constitutes four sections. The first and second sections "General Plan Information” and “Registrant Information and
Employee Plan Annual Information” are found in this Prospectus. The Company’s latest Form 10-KSB, for the fiscal year ended December 31, 2003, which is incorporated herein by this reference, comprises the third section of this
Prospectus, with which offerees are being constructively provided. The fourth section of this Prospectus contains a Stock Option Agreement and Notice of Exercise, which are provided to offerees of stock options, to be completed and submitted within
the time permitted, in conjunction with the tender of the appropriate consideration, by those who wish to exercise their options. 

Item 1. General Plan Information 

The Company’s board of directors (“Board”) has adopted a stock option plan for its employees and others entitled “The 2004Incentive Plan of UltraGuard Water Systems Corp.” (“Plan”). Pursuant to the Plan, the
Board can authorize the issuance of shares or options to purchase up to an aggregate of ten million (10,000,000) shares of the Company’s common stock, par value $0.001 per share, over a maximum five (5) year period, although the Board may
shorten this period. 

The Board adopted the Plan on December 3, 2004. The Plan is intended to aid the Company in maintaining and developing a quality management team, attracting qualified employees, consultants, and advisors who can contribute to the future success of
the Company, and in providing such individuals with an incentive to use their best efforts to promote the growth and profitability of the Company. 

The Plan is not subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), nor qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended (“Code”).
Administration of the Plan is the exclusive province of the Board. Board members are elected at each annual meeting of shareholders for a term of one year. Should the Company fail to hold an annual meeting, each member of the Board serves until
their replacements are elected and qualified.

As ultimate administrators of the Plan, the Board should be contacted with requests for additional Plan information. Alternatively, the Board may appoint a committee to administer the Plan (hereinafter the Board or its duly authorized committee
shall be referred to as “Plan Administrators”). Since the Board has authorized no committee, the current Board members are the Plan Administrators. The Board includes Ken Fielding, Erin Strench, and J R Gaetz. The address of the Board is
c/o the Company, 914 Sherwood Avenue, Coquitlam, British Columbia V3K 1A6, Canada, telephone number (604) 540-8282.

 In the event a vacancy in the Board arises, the vote of a majority of remaining
  directors may select a successor, or, if the remaining Board does not fill the
  vacancy, the vote of shareholders may also elect a successor to fill such vacancy.
  Board members may be removed from office by the vote of shareholders representing
  not less than two-thirds (2/3) of the shares entitled to vote on such removal.
  Plan Administrators who are not Board members can be removed or appointed at
  any time for any reason by the majority vote of Board members. 

The Plan Administrators shall interpret the Plan (which interpretation is binding on the participants absent demonstrable error), determine which employees or others shall receive shares or options, decide the number of shares or options to be
issued, and establish other terms related to the issuance or granting of shares or options not already established in the Company’s Plan. Information concerning changes in the Plan Administrators will be provided in the future either in the
Company's proxy statements, annual or other reports, or in amendments to this document. 

Securities to be Offered 

Shares and options providing for the issuance or purchase of common stock equaling a maximum of ten million (10,000,000) shares may be granted under the Plan. All options under the Plan are “non-qualified” stock options. The number of
shares issuable under the Plan is subject to adjustment in the event of changes in the outstanding shares resulting from stock dividends, stock splits, or recapitalization. 

Employees Who May Participate in the Plan 

The Board shall determine which of the Company’s employees are eligible for shares or options under the Plan. The term “Employee” includes any employee, director, officer, consultant or advisor of the Company or any of its
subsidiaries, provided that consultants and advisors render bona fide services and that such services are not in connection with the offer or sale of securities in a capital-raising transaction. 

Purchase of Securities Pursuant to the Plan and Payment for Securities Offered 

The Plan Administrators shall determine which employees shall receive shares or options. The Plan is not subject to ERISA. The securities are to be issued by the Company and not purchased on the open market or otherwise. 

Options granted under the Plan shall be exercisable as determined by the Plan Administrators. If an option granted under the Plan should expire or terminate for any reason without having been exercised in full, the shares that have not been
purchased, subject to that option, will again be available for grant under the Plan.

The exercise price payable to the Company for optioned shares shall be as set forth from time to time by the Plan Administrator. The exercise of any share option shall be contingent on receipt by the Company of the exercise price paid in either
cash, certified or personal check payable to the Company.

The shares subject to the Plan and the exercise price of outstanding options are subject to proportionate adjustment in the event of a stock dividend or a change in the number of issued and outstanding shares as a result of a stock split,
consolidation, or other recapitalization. Options and all other interests under the Plan shall be non-transferable, except by means of a will or the laws of descent and distribution. 

Amendments and Termination 

 The Plan may be abandoned or terminated at any time by the Plan Administrators
  except with respect to any options then outstanding under the Plan. The Plan
  shall otherwise terminate on the earlier of the date that is five years from
  the date first appearing in the Plan or the date on which a share or an option
  for the issuance of the two million four hundred thousandth share is granted
  under the Plan or the date on which the two million four hundred thousandth
  share is deregistered on a post-effective amendment on Form S-8 filed with the
  Commission. No options may be granted under the terms of the Plan after it has
  been terminated. The Board may alter or amend the Plan only once during any
  six month period, except as to comply with changes to the Code. No termination,
  suspension, alteration or amendment may adversely affect the rights of a holder
  of a previously issued option without the consent of that holder. 

 Resale of Common Stock 

 Shares issued under the Plan or purchased on exercise of options granted under
  the Plan shall have been initially registered pursuant to a Form S-8 Registration
  Statement filed by the Company. Subsequent resale of shares obtained pursuant
  to the Plan may be eligible for immediate resale depending on whether an exemption
  from registration is available or whether the shares are in fact registered.
  The Company makes no statement as to subsequent salability of specific shares
  obtained pursuant to the Plan and urges any persons seeking to sell shares so
  obtained to seek counsel from independent attorneys. 

As may be applicable for subsequent resale of shares obtained from the Plan, the Board believes that the Company has filed all reports and other materials required to be filed with the Commission during the preceding twelve months under the
Securities Exchange Act of 1934 as of November 20, 2003.

Tax Effects of Plan Participation & Nonstatutory Options 

The following discussion of the federal income tax consequences of participation in the Plan is only a summary, does not purport to be complete, and does not cover, among other things, state and local tax consequences. Additionally, differences in
participants' financial situations may cause federal, state, and local tax consequences of participation in the Plan to vary. Therefore, each participant in the Plan is urged to consult his or her own accountant, legal or other advisor regarding the
tax consequences of participation in the Plan. This discussion is based on the provisions of the Code as presently in effect. 

Under the current provisions of the Code, if shares are issued to the original holder of a non-qualified option granted and exercised under the Plan (assuming there is not an active trading market for options of the Company), (i) the option holder
(“Holder”) will not recognize income at the time of the grant of the option; (ii) on exercise of the option the Holder will recognize ordinary income in an amount equal to the excess of the fair market value of the shares acquired at the
time of exercise over the exercise price; (iii) upon the sale of the shares the Holder will recognize a short term or long term capital gain, or loss, as may be, in an amount equal to the difference between the amount he or she receives from the
sale of those shares and the Holder's tax basis in the shares (as described below); and (iv) the Company will be entitled to expense as compensation the amount of ordinary income that the holder recognized, as set forth in Clause (ii) above.

If the Holder pays the exercise price entirely in cash, the tax basis of the shares will be equal to the amount of the exercise price paid plus the ordinary income recognized by the Holder from exercising the options. This basis should equal the
fair market value of the shares acquired on the date of exercise. The holding period, if any, will begin on the day after the tax basis of the shares is determined.

The ordinary income received by the Holder on exercise of the option is considered to be compensation from the Company. As with other forms of compensation, withholding tax and other payments will be due with respect to the exercise of the options.
The Company will initially pay the optionee’s liability and will be reimbursed by optionee no later than six months after such liability arises. Optionee hereby agrees to such reimbursement terms.

Item 2. Registrant Information and Employee Plan Annual Information 

The Company will provide to any Employee upon request a copy, without charge, of the Company's periodic reports filed with the Commission, including its latest annual report on Form 10-KSB and its quarterly reports on Form 10-QSB. The Company will
also provide any Employee upon written or oral request a copy, without charge, of the documents incorporated by reference in Item 3 of Part II of the Form S-8 Registration Statement. These documents are also incorporated by reference into the
Section 10(a) Prospectus, of which this document is a part. Requests for such information should be directed to the Company 914 Sherwood Avenue, Coquitlam, British Columbia V3K 1A6, Canada.EXHIBIT 10.63

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This Executive Employment Agreement (“Agreement”) is
made and entered into by and between Labor Ready, Inc., a Washington
corporation (“Company”), and Joseph P. Sambataro, Jr. (“Executive”), effective
as of January 1, 2005.

 

RECITALS

 

WHEREAS, Company believes that Executive’s
experience, knowledge of corporate affairs, reputation and abilities are of
great value to the future growth and profits of Company and its current and
future subsidiaries (“Subsidiaries”); and

 

WHEREAS, Company wishes to employ Executive and
Executive is willing to be employed by Company; and

 

WHEREAS, Company’s Board of Directors has elected
Executive to the offices of President and Chief Executive Officer;

 

NOW, THEREFORE, in consideration of the mutual
promises and covenants set forth herein, Company and Executive agree as
follows:

 

1.                                       Employment. 
Company agrees to and hereby does continue to employ Executive, and
Executive hereby agrees to the employment of Company, subject to the supervision
and direction of the Board of Directors and the terms and conditions of this
Agreement.  Executive’s employment under
this Agreement shall be for a period commencing on January 1, 2005 and
ending on December 31, 2007, unless such period is extended pursuant to
Paragraph 2 or by written agreement of the parties or is sooner terminated
pursuant to the provisions of Paragraphs 4, 10 or 11.  Notwithstanding the foregoing, if Executive’s
employment extends beyond the term of this Agreement for any reason, such
employment shall be at-will and terminable by either party with or without
Cause or Good Reason, as defined in this Agreement, or advance notice, unless
the parties agree otherwise in writing.

 

2.                                       Duties of Executive.

 

(a)                                  Executive agrees to devote the necessary
time, attention, skill and efforts to the performance of his duties as
President and Chief Executive Officer of Company, including (i) oversight
of Subsidiaries, (ii) formulating a succession plan pertaining to his
departure from Company in accordance with this Agreement;
(iii) identifying and recruiting Executive’s successor;
(iv) formulating and implementing a transition plan pertaining to
Executive’s successor, culminating in the Board of Directors’s selection of a
new CEO (“CEO Selection Date”); and (v) such other duties as may be
assigned by the Board of Directors in its discretion.  Executive’s performance of his obligations
under subsections (ii), (iii) and (iv) shall be in accordance with a process
approved by the Board of Directors with the input of Executive.

 

(b)                                 If the CEO Selection Date does not occur
prior to December 31, 2007, the term of this Agreement shall be extended until
the actual CEO Selection Date, subject to earlier termination pursuant to the
provisions of Paragraphs 4, 10 or 11.

 

3.                                       Compensation.

 

(a)                                  Executive’s initial salary shall be at the
rate of Five Hundred Thirty-Five Thousand Dollars ($535,000) per year, payable
biweekly, unless and until changed by the Board of Directors as provided
herein.

 

(b)                                 Company, acting through its Board of
Directors, may (but shall not be required to) increase, but may not decrease,
Executive’s compensation and award to Executive such bonuses as the Board of
Directors may see fit, in its sole and unrestricted discretion, commensurate
with Executive’s performance and the

 

 

overall
performance of Company. Executive’s compensation shall be reviewed annually by
the Compensation Committee of the Board of Directors.

 

(c)                                  If the Board of Directors determines in its
good faith discretion that Executive has satisfactorily performed his duties
under this Agreement, including duties set forth in Paragraph 2, through the
CEO Selection Date, all unvested options to purchase common stock of the
Company held by the Executive at the CEO Selection Date, all unvested
restricted stock shares held by the Executive at the CEO Selection Date, and
any and all other unvested executive incentive awards held by the Executive at
the CEO Selection Date (collectively “Unvested Awards”) shall vest on the CEO
Selection Date, unless otherwise specifically prohibited under applicable laws,
or by the rules and regulations of any applicable governmental agencies or
national securities exchanges.

 

4.                                       Failure to Pay Executive.  The
failure of Company to pay Executive his salary as provided in Paragraph 3 may,
in Executive’s sole discretion, be deemed a breach of this Agreement and,
unless such breach is cured within fifteen days after written notice to
Company, this Agreement shall terminate, subject to Paragraph 24 pertaining to
survival of certain terms.  Executive’s
claims against Company arising out of the nonpayment shall survive termination
of this Agreement.

 

5.                                       Reimbursement for Expenses. 
Company shall reimburse Executive for reasonable out-of-pocket expenses
that Executive shall incur in connection with his services for Company
contemplated by this Agreement, on presentation by Executive of appropriate
vouchers and receipts for such expenses to Company.

 

6.                                       Housing Allowance. Company shall promptly reimburse Executive
for reasonable housing expenses incurred by Executive as a result of his need
to be in Company’s Tacoma office, up to a maximum of Two Thousand Dollars
($2,000.00) per month, on presentation by Executive of appropriate evidence of
such expenditures to Company. In the event Company terminates this Agreement
under Paragraph 10(b), Company shall promptly indemnify Executive with respect
to any remaining liability for rental payments under a residential lease under
this paragraph, up to a maximum of 12 months.

 

7.                                       Vacation. 
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.

 

8.                                       Liability Insurance and
Indemnification.  Company shall procure and maintain throughout
the term of this Agreement a policy or policies of liability insurance for the
protection and benefit of directors and officers of Company.  To the fullest extent permitted by law, Company
shall indemnify and hold harmless Executive for any and all loss, cost, damage
and expense including attorneys’ fees and court costs and any portion of the
insurance deductible incurred or sustained by Executive, arising out of the
discharge by Executive of his duties hereunder in good faith.

 

9.                                       Other Benefits. 
Executive shall be entitled to all benefits offered generally to
employees of Company, subject to terms and conditions of the applicable plans
or arrangements.  Nothing in this
Agreement shall be construed as limiting or restricting any benefit to
Executive under any pension, profit-sharing or similar retirement plan, or
under any group life or group health or accident or other plan of Company, for
the benefit of its employees generally or a group of them, now or hereafter in
existence. In addition, following expiration or termination of this Agreement,
and until Executive and his wife both reach the age of 65 or are eligible for
Medicare, whichever is later, Executive shall have the option of maintaining
health insurance through the Company’s employee health insurance plan covering
Executive and his wife, provided that Executive reimburses the Company
therefore in an amount equal to the then-applicable employee contribution for
such insurance. The entitlement of Executive and Executive’s spouse under this
Paragraph 9 shall be conditioned upon (i) Executive’s compliance with his
obligations under the Agreement, and (ii) Executive’s and Executive’s
spouse’s not both being entitled to health insurance benefits under the plan of
another employer.

 

10.                                 Termination by Company. 
Company may terminate this Agreement under either of the following
circumstances:

 

 

(a)                                  Company may terminate this Agreement and
Executive’s employment for Cause (as defined herein below) at any time upon
written notice to Executive. The notice of termination must specify those
actions or inactions upon which the termination is based.  Cause shall exist if any of the following
occurs:

 

(i)                                     Executive is convicted of or takes a plea of nolo contendere to a crime involving dishonesty, fraud or
moral turpitude;

 

(ii)                                  Executive has engaged in fraud, embezzlement,
theft or other dishonest acts;

 

(iii)                               Executive
materially violates a significant company policy, such as policies required by
the Sarbanes-Oxley Act or Company’s Drug Free Workplace Policy, and does not cure such violation (if curable)
within ten (10) days after written

notice from Company;

 

(iv)                              Executive willfully takes any action that
materially damages the assets (including tangible and intangible assets, such
as name or reputation) of Company;

 

(v)                                 Executive fails to perform his duties in good
faith, within ten (10) days after written notice from Company or, if notice and
cure have previously taken place regarding a similar failure to perform, if the
circumstance recurs;

 

(vi)                              Executive fails to commence implementation of
actions approved by resolution of the board of directors, within ten (10) days
after written notice from Company, or to thereafter diligently pursue the completion
thereof; or

 

(vii)                           Executive breaches this Agreement in any
other material respect and does not cure such breach (if curable) within ten
(10) days after written notice from Company or, if notice and cure have
previously taken place regarding a similar breach, if the breach recurs.

 

In the event of termination under this subparagraph,
Company shall pay Executive all amounts due hereunder which are then accrued
but unpaid, within thirty (30) days after Executive’s last day of employment.

 

(b)                                 Company shall have the right to terminate
this Agreement at any time without Cause by written notice to Executive. In the
event of termination under this subparagraph, Company shall pay Executive all
amounts due hereunder which are then accrued but unpaid, within thirty (30)
days after Executive’s last day of employment. 
Additionally, provided that no Cause exists and Executive provides
Company with a full release of all claims in a form acceptable to Company,
Company shall provide to Executive payments equal to his salary at the time of
termination through December 31, 2007. 
Such payments shall be made on Company’s normal pay days.

 

(c)                                  Except as provided in Paragraphs 10(a)
and (b) no other amounts are owed to Executive upon termination of his
employment by Executive.

 

11.                                 Termination by Executive.

 

(a)                                  Executive may terminate this Agreement and
his employment with Company at any time, upon giving Company at least one (1)
year prior written notice. In the event of termination under this
subparagraph 11(a), Company shall pay Executive all amounts due hereunder
which are then accrued but unpaid, within thirty (30) days after Executive’s
last day of employment.

 

(b)                                 Subject to Paragraph 4, Executive may
terminate this Agreement for Good Reason at any time upon written notice to
Company.  Good Reason shall exist if (i)
Company has materially breached this Agreement and such material breach has not
been cured by Company within ten (10) business days after receipt by Company of
written notification from Executive of the details of such breach, or, if
notice and cure have previously taken place regarding a similar breach, if the
breach recurs or (ii) after completion of a transition plan as approved by the
Board with the input of Executive there is a material reduction in the
Executive’s authority, responsibilities or scope of employment.  If termination of the Agreement occurs
pursuant to this subparagraph 11(b), Company shall

 

 

provide
to Executive payments equal to salary at the time of termination through
December 31, 2007, provided that no Cause exists and Executive provides Company
with a final release of claims in a form acceptable to Company.  Such payments shall be made on Company’s
normal pay days.

 

(c)                                  Except as provided in Paragraphs 11(a)
and (b), no other amounts are owed to Executive upon termination of his
employment by Executive.

 

12.                               Stock Options and Excess
Parachute Provision.

 

(a)                                  In addition to any payments to which
Executive may be entitled under Paragraphs 10(b) and 11(b), if Company
terminates the employment of Executive without Cause or if Executive terminates
employment with Good Reason, all of Executive’s Unvested Awards shall vest on
the termination date, unless otherwise specifically prohibited under applicable
laws, or by the rules and regulations of any applicable governmental agencies
or national securities exchanges, provided that Executive provides Company with
a final release of claims in a form acceptable to Company.

 

(b)  If
Executive is deemed to receive an “excess parachute payment” as defined in
Section 280G of the Internal Revenue Code 0f 1986 by reason of his or her
vesting of the Unvested Awards pursuant to Section 12(a) of this Agreement,
(taking into account any other compensation paid or deemed paid to Executive),
the amount of such payments or deemed payments shall be reduced, or,
alternatively the provisions of Section 12(a) shall not act to vest Unvested
Awards to Executive, so that no such payments or deemed payments shall
constitute excess parachute payments. 
The determination of whether a payment or deemed payment constitutes an
excess parachute payment shall be in the sole discretion of the Board of
Directors.

 

13.                                 Intellectual Property/Communications.

 

(a)                                  As
used in this Agreement, “Intellectual Property” shall include without
limitation ideas, discoveries, developments, concepts, inventions, trademarks,
processes, improvements to existing processes, products, and all other matters
ordinarily intended by the words “intellectual property,” whether or not
patentable, copyrightable, or otherwise able to be registered. Executive
understands and agrees that all Confidential Information, as defined below, and
Intellectual Property developed, created, conceived of or reduced to practice
by Executive, alone or with others, during the term of Executive’s employment
with Company, whether or not during working hours, that are within the scope of
the business of Company or Subsidiaries are the exclusive property of Company (“Company
Intellectual Property”). In recognition of Company’s ownership of all Company
Intellectual Property, Executive agrees to disclose promptly to Company any and
all Company Intellectual Property that Executive may conceive of or reduce to
practice from the beginning of Executive’s employment until termination,
whether such Company Intellectual Property is made solely by Executive or
jointly with others. Executive agrees and acknowledges that all authored works
created in the course of Executive’s employment with Company are “works for
hire” and property of Company. To the extent that any Company Intellectual
Property is not “works for hire,” Executive hereby assigns to Company Executive’s
entire right, title and interest in and to any and all Company Intellectual
Property. Executive further agrees to cooperate with Company as may be
necessary or useful to obtain copyright, patent, and other proprietary property
rights protection for Company Intellectual Property and to execute and deliver
to Company such instruments as may reasonably be required to carry out the intent
and purpose of this Agreement. 
Notice:  Notwithstanding the
foregoing, Executive has no obligation to assign to Company, any invention for
which no Company trade secrets, equipment, supplies, or facilities were used
and that was developed entirely on Executive’s own time, unless the
invention:  (i) relates directly to the
business of Company, (ii) relates to actual or demonstrably anticipated
research or development work of Company, or (iii) results from any work
performed by the Executive for Company.

 

(b)                                 Executive
shall communicate and channel to Company all knowledge, business, and customer
contacts and any other matters of information that could concern or be in any
way beneficial to the business of Company, whether acquired by Executive before
or during the term of this Agreement; provided, however, that nothing under
this Agreement shall be construed as requiring such communications where the
information is lawfully protected from disclosure as a trade secret of a third
party.

 

 

14.                                 Confidential Information.

 

(a)                                  As the result of his duties, Executive will
necessarily have access to some or all of the confidential information
pertaining to the business of Company and Subsidiaries.  It is agreed that “Confidential Information”
of Company and Subsidiaries includes:

 

(i)                                     The ideas, methods, techniques, formats,
specifications, procedures, designs, systems, processes, data and software
products which are unique to Company or Subsidiaries;

 

(ii)                                  All customer, marketing, pricing and
financial information pertaining to the business of Company or Subsidiaries,
including customer names and customer lists;

 

(iii)                               All 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.

 

(b)                                 Executive understands that he will
necessarily have access to some or all of the Confidential Information.  Executive recognizes the importance of
protecting the confidentiality and secrecy of the Confidential Information and,
therefore, agrees to use his best efforts to protect the Confidential
Information from unauthorized disclosure to other persons.  Executive understands that protecting the
Confidential Information from unauthorized disclosure and use is critically
important to the success and competitive advantage of Company and Subsidiaries
and that the unauthorized disclosure or use of the Confidential Information would
greatly damage Company or Subsidiaries.

 

(c)                                  Executive agrees not to disclose any
Confidential Information to others or use any Confidential Information for his
own benefit or for the benefit of any parties other than Company and
Subsidiaries.  Executive further agrees
that upon request of the Chairman of the Board, the Chief Executive Officer or
other executive officer of Company, he shall immediately return all
Confidential Information, including any copies of Confidential Information in
his possession.

 

15.                                 Covenants Against
Competition.  It is understood and agreed that the nature
of the methods employed in Company’s business is such that Executive will be
placed in a close business and personal relationship with the customers of
Company and Subsidiaries and will have access to Confidential Information
critical to the ability to compete with Company and/or its Subsidiaries.  Thus, during the term of this Agreement and
for a period of two (2) years immediately following the termination of
Executive’s employment, for any reason whatsoever, so long as Company or
Subsidiaries continue to carry on the same business, said Executive shall not,
for any reason whatsoever, directly or indirectly, for himself or on behalf of,
or in conjunction with, any other person, persons, company, partnership,
corporation or business entity:

 

(a)                                  Call upon, divert, influence or solicit or
attempt to call, divert, influence or solicit any customer or customers of
Company or Subsidiaries;

 

(b)                                 Divulge the names and addresses or any
information concerning any customer of Company or any of its Subsidiaries;

 

(c)                                  Solicit, induce or otherwise influence or
attempt to solicit, induce or otherwise influence any employee of Company or
Subsidiaries to leave his or her employment; and

 

(d)                                 Own, manage, operate, control, be employed
by, participate in or be connected in any manner with the ownership,
management, operation or control of the same, similar, or related line of
business as that carried on by Company or any Subsidiary within any state where
Company or any Subsidiary performs business operations or provides labor or
services to customers.

 

 

The time period covered by the covenants contained
herein shall not include any period(s) of violation of any covenant or any
period(s) of time required for litigation to enforce any covenant.  If the provisions set forth are determined to
be too broad to be enforceable at law, then the area and/or length of time
shall be reduced to such area and time and that shall be enforceable.

 

16.                                 Enforcement of Covenants.

 

(a)                                  The covenants set forth herein on the part of
Executive shall be construed as an agreement independent of any other provision
in this Agreement and the existence of any claim or cause of action of
Executive against Company or any Subsidiary, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement by
Company or any Subsidiary of the covenants contained herein.

 

(b)                                 Executive acknowledges that irreparable
damage will result to Company or its Subsidiaries in the event of the breach of
any covenant contained herein and Executive agrees that in the event of any
such breach or threatened breach, Company and Subsidiaries shall be entitled,
in addition to any and all other legal or equitable remedies and damages, to a
temporary and/or permanent injunction to restrain the violation thereof by
Executive and all of the persons acting for or with Executive.

 

17.                                 Law to Govern Contract.  It
is agreed that this Agreement shall be governed by, construed and enforced in
accordance with the laws of the State of Washington, excluding its choice of
law rules.

 

18.                                 Arbitration. 
Company and Executive agree with each other that any claim of Executive
or Company arising out of or relating to this Agreement or the breach of this
Agreement or Executive’s employment by Company, including, without limitation,
any claim for compensation due, wrongful termination and any claim alleging
discrimination or harassment in any form shall be resolved by binding
arbitration, except for claims in which injunctive relief is sought and
obtained.  The arbitration shall be
administered by the American Arbitration Association under its Employment
Arbitration Rules at the American Arbitration Association Office nearest the
place of employment.  The award entered
by the arbitrator shall be final and binding in all respects and judgment
thereon may be entered in any Court having jurisdiction.

 

19.                                 Entire Agreement.  This
Agreement shall constitute the entire agreement between the parties and any
prior understanding or representation of any kind preceding the date of this
Agreement shall not be binding upon either party except to the extent
incorporated in this Agreement.

 

20.                                 Modification of Agreement.  Any
modification of this Agreement or additional obligation assumed by either party
in connection with this Agreement shall be binding only if evidenced in writing
signed by each party or an authorized representative of each party.

 

21.                                 No Waiver.  The
failure of either party to this Agreement to insist upon the performance of any
of the terms and conditions of this Agreement, or the waiver of any breach of
any of the terms and conditions of this Agreement, shall not be construed as
thereafter waiving any such terms and conditions, but the same shall continue
and remain in full force and effect as if no such forbearance or waiver had
occurred.

 

22.                                 Attorneys’ Fees.  In
the event that any action (including arbitration pursuant to Paragraph 18
above) is filed in relation to this Agreement, the unsuccessful party in the
action shall pay to the successful party, in addition to all other required
sums, a reasonable sum for the successful party’s attorneys’ fees.

 

23.                                 Notices.  Any
notice provided for or concerning this Agreement shall be in writing and shall
be personally delivered or sent by certified or registered mail, return receipt
requested, to the respective address of each party as set forth below, or such
other address as each party shall designate by written notice.  Notice shall be deemed delivered upon actual
receipt.

 

24.                                 Survival of Certain Terms.  The
terms and conditions set forth in Paragraphs 9 through Paragraph 25 of
this Agreement shall survive termination of the remainder of this Agreement.

 

 

25.                                 Third Party
Beneficiaries/Assignment.  Subsidiaries are third-party beneficiaries of
this Agreement.  In the event of a sale
of Company or substantially all of its assets, Company may assign this
Agreement, including without limitation Paragraphs 13, 14, 15 and 16, to the
successor or surviving entity.

 

IN
WITNESS WHEREOF, each party to this Agreement has caused it to be executed on
the date indicated below.

 

	
  EXECUTIVE:

  	
   

  	
  COMPANY:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Joseph
  P. Sambataro, Jr.

  	
   

  	
  LABOR
  READY, INC., a Washington

  corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   s/
  Joseph P. Sambataro, Jr.

  	
   

  	
  By:

  	
  s/
  Robert Sullivan, Chairman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  12-15-04

  	
   

  	
  Date:

  	
  12-15-04

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]