Document:

Exhibit 10.4

EXECUTIVE EMPLOYMENT AGREEMENT

This Agreement is between Derrek L. Gafford (“Executive”) and Labor
Ready, Inc. or the Labor Ready, Inc. subsidiary employing Executive (“Labor
Ready” or “Company”), and is effective as of December 31, 2006.

I.      COMPENSATION AND POSITION.

A.    Employment.

Executive
has served in a management or executive capacity with Labor Ready, Inc. since February
25, 2002 and as of the date of this Agreement serves in the role of Executive Vice
President, 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.  Executive
wishes to continue employment with Labor Ready and Labor Ready wishes to
continue to employ Executive Vice President, Chief Financial Officer under the
terms and conditions stated in this Agreement. 
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.  Valuable consideration,
including the mutual covenants and promises contained herein, including,
without limit, the terms of Section II(A)(2), is provided to Executive to enter
this Agreement, the sufficiency of which is expressly acknowledged.

B.    Effective Date.

The
terms and conditions of this Agreement shall become effective as of the date
written above, provided that Executive has voluntarily accepted and executed
Labor Ready’s Non-Competition Agreement (provided herewith).  Acceptance and execution of Labor Ready’s
Non-Competition Agreement is a condition of continued employment and is a
condition precedent to the enforceability of this Agreement.

C.    Compensation.

Executive’s
compensation, subject to the terms and conditions set forth in this Agreement,
is as follows:

1.             Annual Base Salary. 
Executive will receive a salary in the gross amount of $250,000.00 per
year.  This position is a salaried
position which is exempt under the Fair Labor Standards Act and relevant state
law. This salary is in compensation for all work performed by Executive.  Executive warrants and acknowledges that
Executive is not entitled to “overtime” pay. 
Company may withhold from any amounts payable under this Agreement all
federal, state, city or other taxes as Company is required to withhold pursuant
to any applicable law, regulation or ruling and other customary and usual
deductions.

2.             Bonus. Subject to the conditions set forth below, Executive
will be eligible for a bonus, under and subject to the bonus plan in effect for
executives for the relevant year (“Bonus Plan”).  Executive must be employed by Labor Ready on
date of payment and have met all of 

the requirements of the Bonus Plan to receive the bonus.  The Bonus Plan and all aspects of bonus
compensation may be changed at the discretion of the Compensation Committee
and/or the Board of Directors.

3.             Equity Awards.  Executive
will be eligible for awards in accordance with any applicable equity plan
approved by the Compensation Committee, provided that any equity awards shall
be subject to the discretion of the Compensation Committee and/or the Board of
Directors.

D.    Benefits.

1.             General.  Executive
shall be entitled to all benefits offered generally to executives of Company.

2.             Health & Welfare Benefits.  Executive
and Executive’s family may participate in benefits starting the first month
after Executive’s first 90 days of employment under this Agreement, subject to
plan terms and conditions, including eligibility requirements.

3.             Vacation.  Executive
shall be entitled each year during Executive’s employment to vacation days,
during which time Executive’s compensation shall be paid in full, in accordance
with policies in effect for executives to be established by the Company from
time to time.

II.    TERMS AND CONDITIONS.

A.    Employment at Will.

1.             Company
and Executive agree that Executive’s employment is not for any specific or
minimum term or duration, and that subject to Section II(A)(2) of this
Agreement, the continuation of Executive’s employment is subject to the mutual
consent of Company and Executive, and that it is terminable at will, meaning
that either 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, and that 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 creates any right, contract or guarantee of continued or a length of
term period of employment or gives Executive the right to any particular level
of compensation or benefits and nothing in this Agreement should be construed
as such.  The parties agree that any
decision maker who is charged with reviewing disputes surrounding Executive’s
employment shall reject any legal theory, whether in law or in equity, that is
claimed to alter at-will employment, unless such theory cannot be waived as a
matter of law.

2.             (a)           In the event of termination of
Executive’s employment for any or no reason or with or without Cause, by either
Company or Executive, or if Executive’s employment ends due to the death or
disability of Executive, Executive shall be paid unpaid wages and unused
vacation earned through the termination date.

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(b)           Provided
that Executive’s employment does not end due to Executive’s death or
disability, if Labor Ready terminates Executive’s employment without Cause as
defined in this Agreement, or Executive terminates employment with Good Reason
as defined in this Agreement, subject to the conditions set forth below, in
addition to the amounts described in Sections II(A)(2)(a) and VI H. 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”,
provided, however, that if at the time of the Executive’s termination of
employment the Executive is considered a “specified employee” subject to the
required six-month delay in benefit payments under Section 409A(a)(2)(B)(i) of
the Internal Revenue Code of 1986, as amended, then the separation payments
that would otherwise have been paid within the first six (6) months after the
Executive’s termination of employment shall instead be paid in a single lump
sum on (or within 15 days after) the six-month anniversary of such termination
of employment.  Payments for the remaining
six (6) months shall be made monthly after such six-month anniversary; and

(ii)           accelerated
vesting in any previously awarded stock options, restricted stock and other
equity awards as if Executive had worked for the Company for twelve (12) months
after Executive’s termination date, provided that any options or other equity
awards that are not exercised within the time periods for exercise set forth in
the applicable plan, sub-plan or grant agreement, shall expire in accordance
with the terms of such plan, sub-plan or grant agreement, as this accelerated
vesting will not extend or otherwise delay the time period for exercising an
option or other equity award.

(c)           As
a condition precedent to being entitled to receive the benefits set forth in
Section II(A)(2)(b), within twenty-one (21) days of Executive’s
termination, Executive must (i) sign and deliver and thereafter not revoke a
release in the form of Exhibit A to this Agreement in accordance with its terms
or a form otherwise acceptable to Company; (ii) be and remain in full
compliance with all provisions of Section III and IV of this Agreement; and
(iii) be and remain in full compliance with Labor Ready’s Non-Competition
Agreement and any other covenants with Company entered into by Executive.   Company shall have no obligation to make any
payments or provide any benefits to the Executive hereunder unless and until
the effective date of the waiver and release agreement, as defined therein.

3.             (a)           For
the purpose of this Agreement, “Cause,” as used herein, means any of the
following (alone or in combination):

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

(2)           Executive
has engaged in any of the following: (i) fraud, embezzlement, theft or other
dishonest acts, (ii) unprofessional conduct, (iii) gross negligence related to
the business or (iv) other conduct that is materially detrimental to the
business as determined in the reasonable business judgment of Company;

(3)           Executive
materially violates a significant Company policy (as they may be amended from
time to time), such as policies required by the Sarbanes-Oxley Act, Company’s
Drug Free Workplace Policy or Company’s EEO policies, and does not cure such
violation (if curable) within twenty (20) days after written notice from
Company;

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

(5)           Executive
fails to perform Executive’s duties in good faith or Executive persistently
fails to perform Executive’s duties, and does not cure such failures 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;

(6)           Executive
uses or discloses (or allows others to use or disclose) Confidential
Information, as defined in this Agreement, without authorization; or

(7)           Executive
breaches this Agreement in any material respect and does not cure such breach
(if curable) within twenty (20) days after written notice from Company or, if
notice and cure have previously taken place regarding a similar breach, if a
similar breach recurs.

(b)           For
the purpose of this Agreement, “Good Reason,” as used herein, means:

(1) any material breach of
this Agreement by Company which, if curable, has not been cured within twenty
(20) days after Company has been given written notice of the need to cure the
breach;

(2) a substantial reduction
of responsibilities assigned to Executive, provided that Company fails to
remedy such reduction within twenty (20) days after being provided written
notice thereof from Executive that Executive objects to the same; or

(3) a reduction in Executive’s
base salary, other than as part of an across-the-board salary reduction
generally imposed on executives of Company, provided that Company fails to
remedy such reduction(s) within twenty (20) days after being provided written
notice thereof from Executive that Executive objects to the same.

A termination of employment
by the Executive for one of the reasons set forth in Section II. 3(b) (1) — (3)
above will not constitute “Good Reason” unless, within the 60-day period
immediately following the occurrence of such Good Reason event, Executive has
given written notice to Company specifying in reasonable detail the event or
events relied upon for such termination and Company has not remedied such event
or events within twenty (20) days of the receipt of such notice.

B.    Dispute Resolution;
Arbitration; Exigent Relief.

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.  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 Company and Executive will be administered by the American Arbitration
Association under its Employment Arbitration Rules then in effect.  The award entered by the 

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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.  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, 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 or any
other legal doctrine to a jury trial.

Notwithstanding any other provisions of this
Agreement regarding dispute resolution, including this Section II B, Executive
agrees that Executive’s violation or breach, or threatened violation or breach,
of any provision of Section III of this Agreement (“Confidential Information”)
and/or Executive’s violation or breach, or threatened violation or breach, of
other provisions of this Agreement which otherwise place Company in peril that
cannot be readily remedied by monetary damages, would cause Company irreparable
harm which would not be adequately compensated by monetary damages and that a
temporary and/or preliminary or permanent injunction may be granted by any
court or courts having jurisdiction (subject to the venue provision of Section
VI F.), restraining the Executive from violation or breach of the terms of this
Agreement.  The preceding sentence shall
not be construed to limit Company from any other relief or damages to which it
may be entitled as a result of the Executive’s breach of any provision of this
Agreement.

C.    Duty of Loyalty.

Executive agrees to devote all time that is reasonably necessary to
execute and complete Executive’s duties to Company.  During the time necessary to execute
Executive’s duties, Executive agrees to devote Executive’s full and undivided
time, energy, knowledge, skill and ability to Company’s business, to the
exclusions of all other business and sideline interests.  Because of the agreement in the preceding
sentence, during Executive’s employment with Company, Executive also agrees not
to be employed or provide any type of services, whether as an advisor,
consultant, independent contractor or otherwise in any
capacity elsewhere unless first authorized, in writing, by a proper
representative of Company.  In no event
will Executive allow other activities to conflict or interfere with Executive’s
duties to 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 Company.  Upon
request, Executive agrees to provide Company with any information which
Executive possesses and which will be of benefit to Company.  Executive agrees to perform Executive’s
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, and to
otherwise fulfill all fiduciary and other duties Executive has to Company.

Executive represents and warrants that Executive has been in full
compliance with all prior covenants Executive has entered into protecting Labor
Ready’s Confidential Information.

D.    Reimbursement.

If Executive ever possesses or controls 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 

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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 for the entire
period of Executive’s possession or control of such Labor Ready funds unless
directed otherwise in writing.  At any
time upon request, and at the time when Executive’s employment ends for any
reason, even without request, Executive shall fully and accurately account to
Labor Ready for any Labor Ready funds and other property in Executive’s
possession or control.  If Executive
fails to do so, Executive hereby authorizes 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 Company.

E.    Background
Investigation and Review of Company Property.

1.             Executive
agrees that at any time during employment 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 Company to
conduct such investigation.  For this
purpose, Executive specifically authorizes 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.

2.             Executive
acknowledges and agrees that unless otherwise expressly prohibited by law,
Company has the complete right to review, inspect and monitor all Company
property, including, without limitation, email, voicemail, and computer
property of Company, and to review, inspect and monitor Executive’s use of the
internet or other computer related transmission of information, including,
without limitation, the identity and use of USB and other computer related
drives.  Executive acknowledges that
Executive has no expectation of privacy in Company’s property, including,
without limitation, email, voicemail, and computer property.

III.   CONFIDENTIAL INFORMATION.

A.    Non-Disclosure and Non-Use
and other Protection of Confidential Information.

1.             In connection with Executive’s duties, Executive may
have access to some or all of Labor Ready’s “Confidential Information,” whether
original, duplicated, computerized, memorized, handwritten, or in any other
form, and all information contained therein, including, without limitation:
(a) the ideas, methods, techniques, formats, specifications, procedures,
designs, strategies, systems, processes, data and software products which are
unique to Labor Ready; (b) all of Labor Ready’s business plans,  present, future or potential customers or
clients (including the names, addresses and any other information concerning
any customer or client), marketing, marketing strategies, pricing and financial
information, research, training, know-how, operations, processes, products,
inventions, business practices, databases and information contained therein,
its wage rates, margins, mark-ups, finances, banking, books, records,
contracts, agreements, principals, vendors, suppliers, contractors, employees,
applicants, Candidates, skill sets of applicants, skill sets of Candidates,
marketing methods, costs, prices, 

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price structures, methods for calculating
and/or determining prices, contractual relationships, business relationships,
compensation paid to employees and/or contractors, and/or other terms of
employment, employee evaluations, and/or employee skill sets; (c) the
content of all of Labor Ready’s operations, sales and training manuals;
(d) all other information now in existence or later developed which is
similar to the foregoing; (e) all information which is marked as
confidential or explained to be confidential or which, by its nature, is
confidential or otherwise constitutes the intellectual property or proprietary
information of Labor Ready; and/or (f) any of Labor Ready’s “trade secrets”.  For the purposes of this Section III, all
references to, and agreements regarding, Confidential Information or
Confidential Information of Labor Ready also apply to Confidential Information
belonging to any affiliate of Labor Ready, and to any confidential or
proprietary information of third party clients that Labor Ready has an
obligation to keep confidential.  Executive’s
covenants in this Section III shall protect affiliates and clients of Labor
Ready to the same extent that they protect Labor Ready. Confidential
Information shall not include any portion of the foregoing which (i) is or
becomes generally available to the public in any manner or form through no
fault of Employee, or (ii) is approved for Employee’s disclosure or use by
the express written consent of the Chief Executive Officer of Labor Ready, Inc.

2.             Executive
agrees and acknowledges that all Confidential Information is to be held in
confidence and is the sole and exclusive property of Labor Ready and/or its
affiliates or clients.  Executive
recognizes the importance of protecting the confidentiality and secrecy of
Confidential Information.  Executive
agrees to use Executive’s 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 use or disclosure of
Confidential Information would greatly damage Labor Ready.  Executive recognizes and agrees that taking
and using Confidential Information, including trade secrets, by memory is no different
from taking it on paper or in some other tangible form, and that all of such
conduct is prohibited.  Executive agrees
that, prior to use or disclosure, 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.             During
Executive’s employment and in perpetuity after the termination of Executive’s
employment for any or no cause or reason, Executive agrees:  (a) not to use (or allow others to wrongfully
use) any Confidential Information for the benefit of any person (including,
without limitation, Executive’s benefit) or entity other than Labor Ready; and
(b) not to, except as necessary or appropriate for Executive to perform
Executive’s job responsibilities, disclose (or allow others to wrongfully
disclose) any Confidential Information to others or download or make copies of
any Confidential Information without Company’s written consent, or remove any
such records from the offices of Labor Ready except for the sole purpose of
conducting business on behalf of Labor Ready.  
If at any time Executive ever believes that any person has received or
disclosed or intends to receive or disclose Confidential Information without
Company’s consent, Executive agrees to immediately notify Company.

4.             At
any time during Executive’s employment upon Company’s request, and at the end
of Executive’s employment with Company, even without Company’s request,
Executive covenants, agrees to, and shall immediately return to Labor Ready, at
its headquarters in Tacoma, Washington, all Confidential Information as defined
herein, and all other material and records of any kind concerning Labor Ready’s
business, and all other property of Company that Executive may possess or
control.

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5.             At
all times, Executive agrees not to directly or indirectly take, possess,
download, allow others to take or possess or download, provide to others,
delete or destroy or allow others to delete or destroy, any of Labor Ready’s
Confidential Information or other property, other than in the normal course of
business.

6.             Executive
agrees that these covenants are necessary to protect Company’s Confidential
Information, and Company’s legitimate business interests (including, without
limitation, the confidentiality of Labor Ready’s business information and other
legitimate interests), in view of Executive’s key role with each branch of
Company and its affiliates and the extent of confidential and proprietary
information about the entire Company and its affiliates and clients to which
Executive has information.  Company and Executive agree that the provisions of this Section III do not
impose an undue hardship on Executive
and are not injurious to the public; that they are necessary to protect the
business of Company and its affiliates and
clients; that the nature of Executive’s
responsibilities with Company under
this Agreement and Executive’s former
responsibilities with Company provide and/or have provided Executive with access to Confidential
Information that is valuable and confidential to Company; that Company
would not continue to employ Executive
if Executive did not agree to the
provisions of this Section III; that this Section III is reasonable in its
terms and that sufficient consideration supports this Agreement, including,
without limit, this Section III.

7.             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 Company.  Executive and Company agree that this
Agreement should be interpreted in the way that provides the maximum protection
to Company’s Confidential Information.

8.             Executive
acknowledges that if Executive violates any of the foregoing covenants, the
damage to Company will be such that Company is not likely to be made whole with
a monetary award.  Therefore, Executive
agrees that if Executive violates or threatens to violate any such covenant,
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.

9.             Executive
represents and warrants that Executive has been in full compliance with the
provisions protecting Labor Ready’s Confidential Information as set forth in any
previous agreement with the Company, as well as all other terms and conditions
of any previous agreement with the Company.

B.    Other Employers and
Obligations.

1.             Executive
represents to 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 Company, or which will conflict with Company’s best
interests or Executive’s obligations under this Agreement.  Executive agrees to notify Executive’s
supervisor promptly in the event Executive or other employees is/are solicited
for employment by any competitor of Labor Ready.

2.             Executive
warrants that Executive’s employment with Company will not violate any
contractual obligations with other parties. 
Executive will not use during Executive’s employment with Company nor
disclose to Company any confidential or proprietary information or trade
secrets from any former or current employers, principals, partners,
co-venturers, 

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customers or suppliers, and will not bring onto 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 Company any such agreements
that may bear on employment with Company. 
Executive agrees to tell any prospective new employer about this
Agreement and its terms.

IV.   ASSIGNMENT OF INVENTIONS.

A.            Inventions Assignment.

Executive will make prompt and full disclosure to Company, will hold in
trust for the sole benefit of Company, and does assign exclusively to 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
Executive’s employment with 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 its affiliates or
(ii) to the actual or demonstrably anticipated business, research or
development of Labor Ready or its affiliates; and (d) it does not result
from any work performed by Executive for Labor Ready or its affiliates.  Executive shall attach a list of all existing
Inventions meeting these requirements to this Agreement.

V.    COMPLIANCE WITH LAWS AND LABOR READY’S CODE
OF CONDUCT AND CORPORATE GOVERNANCE GUIDELINES.

A.            Commitment to Compliance.

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,
or other protected status under applicable law. 
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.  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 and shall comply with all federal, state and local
laws and regulations, including, without limit, equal employment opportunity
laws and wage and hour laws.  Executive
agrees to and shall immediately notify Company if Executive becomes aware of a
violation of 

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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, and Corporate Governance Guidelines.

Executive acknowledges and agrees that it is Executive’s duty to be
familiar with Labor Ready’s Code of Conduct and Labor Ready’s Corporate
Governance Guidelines, and to comply with all of their respective provisions.

VI.   MISCELLANEOUS.

A.    Integration.

Except with respect to Labor Ready’s Non-Competition Agreement, and the
Change in Control Agreement, (i) no promises or other communications made by
either Company or Executive are intended to be, or are, binding unless they are
set forth in this Agreement; and (ii) this Agreement contains the entire
agreement between the parties and replaces and supersedes any prior agreements,
including previous employment agreement(s). This Agreement may not be modified
except by a written instrument signed by an appropriate officer of Company and
by Executive.  This Agreement will be
binding upon Executive’s heirs, executors, administrators and other legal
representatives.

B.    Choice of Law.

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 Company waives any condition or term of this Agreement, Company is
not waiving any other condition or term, nor is Company waiving any rights with
respect to any future violation of the same condition or term.  If Company chooses to refrain from enforcing
any condition or term, Company does not intend to waive the right to do so.

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.

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

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F.    Venue and Consent to
Jurisdiction.

Where the parties have mutually waived their right to arbitration in
writing or have not yet sought to enforce their right to compel arbitration, or
where a temporary and/or preliminary or permanent injunction may be necessary
to protect the interests of Company, 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, or a proper superior court or United
State District Court in the jurisdiction in which Executive last worked, or
where Executive is engaged in violating the Agreement.  Executive and Company agree that the choice
of venue lies solely in the discretion of Company.  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, including but not limited to any
claim that any such suit, action or proceeding has been brought in an
inconvenient forum.

G.    Non-Disparagement.

At all times during the Executive’s employment with Company and
following termination of that employment by either Executive or Company,
Executive will not publicly disparage Company or its Subsidiaries or any of
their respective directors, officers or employees.   Executive will not be in breach of this
provision by providing information as required by law or legal compulsion.

H.    Survival.

Notwithstanding any provision of this Agreement to the contrary, the
parties’ respective rights and obligations under Sections II A., B. and
D., III, IV, and VI do and shall survive any termination of the Executive’s
employment and/or the assignment of this Agreement by Company to any successor
in interest or other assignee.

I.     Section 409A of the Code.

To the extent applicable, it is intended that this Agreement comply
with the provisions of Section 409A of the Code.  This Agreement will be administered in a
manner consistent with this intent, and any provision that would cause the
Agreement to fail to satisfy Section 409A of the Code will have no force
and effect until amended to comply with Section 409A of the Code (which
amendment may be retroactive to the extent permitted by Section 409A of
the Code and may be made by Company without the consent of the Executive).

J.     Other.

The headings used in this Agreement are intended for convenience or
reference only and will not in any manner amplify, limit, modify or otherwise
be used in the construction or interpretation of any provision of this
Agreement.  References to Sections are to
Sections of this Agreement.  Any
reference in this Agreement to a provision of a statute, rule or regulation
will also include any successor provision thereto.

 11
 

IN WITNESS WHEREOF, the parties have caused this
Agreement to be duly executed and delivered as of the date first above written.

LABOR READY, INC.

	
  

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ James E. Defebaugh

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  James E. Defebaugh

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Executive Vice
  President and General Counsel

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Derrek L. Gafford

  	
   

  	
   

  	
   

  
	
  EXECUTIVE

  	
   

  	
   

  	
   

  	 

								

 

By
signing this Agreement, I accept and acknowledge that I will abide by the terms
and conditions of this Agreement.  I
agree and understand that nothing in this Agreement shall confer any right with
respect to continuation of employment by Company, nor shall it interfere in any
way with my right or Company’s right to terminate my employment at any time,
with or without cause.

 12Exhibit 10.5

EXECUTIVE EMPLOYMENT AGREEMENT

This Agreement is between Christian D. Burger (“Executive”) and Labor
Ready, Inc. or the Labor Ready, Inc. subsidiary employing Executive (“Labor
Ready” or “Company”), and is effective as of December 31, 2006.

I.      COMPENSATION AND POSITION.

A.    Employment.

Executive
has served in a management or executive capacity with Labor Ready, Inc. since
August 18, 2003 and as of the date of this Agreement serves in the role of Senior
Vice President, Operations.  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.  Executive wishes to
continue employment with Labor Ready and Labor Ready wishes to continue to
employ Executive as Senior Vice President, Operations under the terms and
conditions stated in this Agreement. 
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.  Valuable consideration,
including the mutual covenants and promises contained herein, including,
without limit, the terms of Section II(A)(2), is provided to Executive to enter
this Agreement, the sufficiency of which is expressly acknowledged.

B.    Effective Date.

The
terms and conditions of this Agreement shall become effective as of the date
written above, provided that Executive has voluntarily accepted and executed
Labor Ready’s Non-Competition Agreement (provided herewith).  Acceptance and execution of Labor Ready’s
Non-Competition Agreement is a condition of continued employment and is a
condition precedent to the enforceability of this Agreement.

C.    Compensation.

Executive’s
compensation, subject to the terms and conditions set forth in this Agreement,
is as follows:

1.             Annual Base Salary.  Executive
will receive a salary in the gross amount of $250,000.00 per year.  This position is a salaried position which is
exempt under the Fair Labor Standards Act and relevant state law. This salary
is in compensation for all work performed by Executive.  Executive warrants and acknowledges that
Executive is not entitled to “overtime” pay. 
Company may withhold from any amounts payable under this Agreement all
federal, state, city or other taxes as Company is required to withhold pursuant
to any applicable law, regulation or ruling and other customary and usual
deductions.

2.             Bonus. Subject to the conditions set forth below, Executive
will be eligible for a bonus, under and subject to the bonus plan in effect for
executives for the relevant year (“Bonus Plan”).  Executive must be employed by Labor Ready on
date of payment and have met all of 

the requirements of the Bonus Plan to receive the bonus.  The Bonus Plan and all aspects of bonus
compensation may be changed at the discretion of the Compensation Committee
and/or the Board of Directors.

3.             Equity Awards.  Executive
will be eligible for awards in accordance with any applicable equity plan
approved by the Compensation Committee, provided that any equity awards shall
be subject to the discretion of the Compensation Committee and/or the Board of
Directors.

D.    Benefits.

1.             General.  Executive
shall be entitled to all benefits offered generally to executives of Company.

2.             Health & Welfare Benefits.  Executive
and Executive’s family may participate in benefits starting the first month
after Executive’s first 90 days of employment under this Agreement, subject to
plan terms and conditions, including eligibility requirements.

3.             Vacation.  Executive
shall be entitled each year during Executive’s employment to vacation days,
during which time Executive’s compensation shall be paid in full, in accordance
with policies in effect for executives to be established by the Company from
time to time.

II.    TERMS AND CONDITIONS.

A.    Employment at Will.

1.             Company
and Executive agree that Executive’s employment is not for any specific or
minimum term or duration, and that subject to Section II(A)(2) of this
Agreement, the continuation of Executive’s employment is subject to the mutual
consent of Company and Executive, and that it is terminable at will, meaning
that either 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, and that 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 creates any right, contract or guarantee of continued or a length of
term period of employment or gives Executive the right to any particular level
of compensation or benefits and nothing in this Agreement should be construed
as such.  The parties agree that any
decision maker who is charged with reviewing disputes surrounding Executive’s
employment shall reject any legal theory, whether in law or in equity, that is
claimed to alter at-will employment, unless such theory cannot be waived as a
matter of law.

2.             (a)           In the event of termination of
Executive’s employment for any or no reason or with or without Cause, by either
Company or Executive, or if Executive’s employment ends due to the death or
disability of Executive, Executive shall be paid unpaid wages and unused
vacation earned through the termination date.

 2
 

(b)           Provided
that Executive’s employment does not end due to Executive’s death or
disability, if Labor Ready terminates Executive’s employment without Cause as
defined in this Agreement, or Executive terminates employment with Good Reason
as defined in this Agreement, subject to the conditions set forth below, in
addition to the amounts described in Sections II(A)(2)(a) and VI H. 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”,
provided, however, that if at the time of the Executive’s termination of
employment the Executive is considered a “specified employee” subject to the
required six-month delay in benefit payments under Section 409A(a)(2)(B)(i) of
the Internal Revenue Code of 1986, as amended, then the separation payments
that would otherwise have been paid within the first six (6) months after the
Executive’s termination of employment shall instead be paid in a single lump
sum on (or within 15 days after) the six-month anniversary of such termination
of employment.  Payments for the
remaining six (6) months shall be made monthly after such six-month
anniversary; and

(ii)           accelerated
vesting in any previously awarded stock options, restricted stock and other
equity awards as if Executive had worked for the Company for twelve (12) months
after Executive’s termination date, provided that any options or other equity
awards that are not exercised within the time periods for exercise set forth in
the applicable plan, sub-plan or grant agreement, shall expire in accordance
with the terms of such plan, sub-plan or grant agreement, as this accelerated
vesting will not extend or otherwise delay the time period for exercising an
option or other equity award.

(c)           As a condition
precedent to being entitled to receive the benefits set forth in
Section II(A)(2)(b), within twenty-one (21) days of Executive’s
termination, Executive must (i) sign and deliver and thereafter not revoke a
release in the form of Exhibit A to this Agreement in accordance with its terms
or a form otherwise acceptable to Company; (ii) be and remain in full
compliance with all provisions of Section III and IV of this Agreement; and
(iii) be and remain in full compliance with Labor Ready’s Non-Competition
Agreement and any other covenants with Company entered into by Executive.   Company shall have no obligation to make any
payments or provide any benefits to the Executive hereunder unless and until
the effective date of the waiver and release agreement, as defined therein.

3.             (a)           For
the purpose of this Agreement, “Cause,” as used herein, means any of the
following (alone or in combination):

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

(2)           Executive
has engaged in any of the following: (i) fraud, embezzlement, theft or other
dishonest acts, (ii) unprofessional conduct, (iii) gross negligence related to
the business or (iv) other conduct that is materially detrimental to the
business as determined in the reasonable business judgment of Company;

(3)           Executive
materially violates a significant Company policy (as they may be amended from
time to time), such as policies required by the Sarbanes-Oxley Act, Company’s
Drug Free Workplace Policy or Company’s EEO policies, and does not cure such
violation (if curable) within twenty (20) days after written notice from
Company;

 3
 

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

(5)           Executive
fails to perform Executive’s duties in good faith or Executive persistently
fails to perform Executive’s duties, and does not cure such failures 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;

(6)           Executive
uses or discloses (or allows others to use or disclose) Confidential
Information, as defined in this Agreement, without authorization; or

(7)           Executive
breaches this Agreement in any material respect and does not cure such breach
(if curable) within twenty (20) days after written notice from Company or, if
notice and cure have previously taken place regarding a similar breach, if a
similar breach recurs.

(b)           For
the purpose of this Agreement, “Good Reason,” as used herein, means:

(1) any material breach of this Agreement by Company
which, if curable, has not been cured within twenty (20) days after Company has
been given written notice of the need to cure the breach;

(2) a substantial reduction of responsibilities
assigned to Executive, provided that Company fails to remedy such reduction
within twenty (20) days after being provided written notice thereof from
Executive that Executive objects to the same; or

(3) a reduction in Executive’s base salary, other
than as part of an across-the-board salary reduction generally imposed on
executives of Company, provided that Company fails to remedy such reduction(s)
within twenty (20) days after being provided written notice thereof from
Executive that Executive objects to the same.

A termination of employment
by the Executive for one of the reasons set forth in Section II. 3(b) (1) — (3)
above will not constitute “Good Reason” unless, within the 60-day period
immediately following the occurrence of such Good Reason event, Executive has
given written notice to Company specifying in reasonable detail the event or
events relied upon for such termination and Company has not remedied such event
or events within twenty (20) days of the receipt of such notice.

B.    Dispute Resolution; Arbitration;
Exigent Relief.

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.  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 Company and Executive will be administered by the American
Arbitration Association under its Employment Arbitration Rules then in
effect.  The award entered by the 

 4
 

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. 
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, 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 or any
other legal doctrine to a jury trial.

Notwithstanding any other provisions of this
Agreement regarding dispute resolution, including this Section II B, Executive
agrees that Executive’s violation or breach, or threatened violation or breach,
of any provision of Section III of this Agreement (“Confidential Information”)
and/or Executive’s violation or breach, or threatened violation or breach, of
other provisions of this Agreement which otherwise place Company in peril that
cannot be readily remedied by monetary damages, would cause Company irreparable
harm which would not be adequately compensated by monetary damages and that a
temporary and/or preliminary or permanent injunction may be granted by any
court or courts having jurisdiction (subject to the venue provision of Section
VI F.), restraining the Executive from violation or breach of the terms of this
Agreement.  The preceding sentence shall
not be construed to limit Company from any other relief or damages to which it
may be entitled as a result of the Executive’s breach of any provision of this
Agreement.

C.    Duty of Loyalty.

Executive agrees to devote all time that is reasonably necessary to
execute and complete Executive’s duties to Company.  During the time necessary to execute
Executive’s duties, Executive agrees to devote Executive’s full and undivided
time, energy, knowledge, skill and ability to Company’s business, to the
exclusions of all other business and sideline interests.  Because of the agreement in the preceding
sentence, during Executive’s employment with Company, Executive also agrees not
to be employed or provide any type of services, whether as an advisor,
consultant, independent contractor or otherwise in any
capacity elsewhere unless first authorized, in writing, by a proper
representative of Company.  In no event
will Executive allow other activities to conflict or interfere with Executive’s
duties to 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 Company.  Upon
request, Executive agrees to provide Company with any information which
Executive possesses and which will be of benefit to Company.  Executive agrees to perform Executive’s
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, and to
otherwise fulfill all fiduciary and other duties Executive has to Company.

Executive represents and warrants that Executive has been in full
compliance with all prior covenants Executive has entered into protecting Labor
Ready’s Confidential Information.

D.    Reimbursement.

If Executive ever possesses or controls 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 

 5
 

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 for the entire
period of Executive’s possession or control of such Labor Ready funds unless
directed otherwise in writing.  At any
time upon request, and at the time when Executive’s employment ends for any
reason, even without request, Executive shall fully and accurately account to
Labor Ready for any Labor Ready funds and other property in Executive’s
possession or control.  If Executive
fails to do so, Executive hereby authorizes 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 Company.

E.    Background
Investigation and Review of Company Property.

1.             Executive
agrees that at any time during employment 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 Company to
conduct such investigation.  For this
purpose, Executive specifically authorizes 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.

2.             Executive
acknowledges and agrees that unless otherwise expressly prohibited by law,
Company has the complete right to review, inspect and monitor all Company
property, including, without limitation, email, voicemail, and computer
property of Company, and to review, inspect and monitor Executive’s use of the
internet or other computer related transmission of information, including,
without limitation, the identity and use of USB and other computer related
drives.  Executive acknowledges that
Executive has no expectation of privacy in Company’s property, including,
without limitation, email, voicemail, and computer property.

III.   CONFIDENTIAL INFORMATION.

A.    Non-Disclosure and Non-Use
and other Protection of Confidential Information.

1.             In connection with Executive’s duties, Executive may
have access to some or all of Labor Ready’s “Confidential Information,” whether
original, duplicated, computerized, memorized, handwritten, or in any other
form, and all information contained therein, including, without limitation:
(a) the ideas, methods, techniques, formats, specifications, procedures,
designs, strategies, systems, processes, data and software products which are
unique to Labor Ready; (b) all of Labor Ready’s business plans,  present, future or potential customers or
clients (including the names, addresses and any other information concerning
any customer or client), marketing, marketing strategies, pricing and financial
information, research, training, know-how, operations, processes, products,
inventions, business practices, databases and information contained therein,
its wage rates, margins, mark-ups, finances, banking, books, records,
contracts, agreements, principals, vendors, suppliers, contractors, employees,
applicants, Candidates, skill sets of applicants, skill sets of Candidates,
marketing methods, costs, prices, 

 6
 

price structures, methods for calculating
and/or determining prices, contractual relationships, business relationships,
compensation paid to employees and/or contractors, and/or other terms of
employment, employee evaluations, and/or employee skill sets; (c) the
content of all of Labor Ready’s operations, sales and training manuals;
(d) all other information now in existence or later developed which is
similar to the foregoing; (e) all information which is marked as
confidential or explained to be confidential or which, by its nature, is
confidential or otherwise constitutes the intellectual property or proprietary
information of Labor Ready; and/or (f) any of Labor Ready’s “trade secrets”.  For the purposes of this Section III, all
references to, and agreements regarding, Confidential Information or
Confidential Information of Labor Ready also apply to Confidential Information
belonging to any affiliate of Labor Ready, and to any confidential or
proprietary information of third party clients that Labor Ready has an
obligation to keep confidential. 
Executive’s covenants in this Section III shall protect affiliates and
clients of Labor Ready to the same extent that they protect Labor Ready.
Confidential Information shall not include any portion of the foregoing which
(i) is or becomes generally available to the public in any manner or form
through no fault of Employee, or (ii) is approved for Employee’s
disclosure or use by the express written consent of the Chief Executive Officer
of Labor Ready, Inc.

2.             Executive
agrees and acknowledges that all Confidential Information is to be held in
confidence and is the sole and exclusive property of Labor Ready and/or its
affiliates or clients.  Executive
recognizes the importance of protecting the confidentiality and secrecy of
Confidential Information.  Executive
agrees to use Executive’s 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 use or disclosure of
Confidential Information would greatly damage Labor Ready.  Executive recognizes and agrees that taking
and using Confidential Information, including trade secrets, by memory is no
different from taking it on paper or in some other tangible form, and that all
of such conduct is prohibited.  Executive
agrees that, prior to use or disclosure, 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.             During
Executive’s employment and in perpetuity after the termination of Executive’s
employment for any or no cause or reason, Executive agrees:  (a) not to use (or allow others to wrongfully
use) any Confidential Information for the benefit of any person (including,
without limitation, Executive’s benefit) or entity other than Labor Ready; and
(b) not to, except as necessary or appropriate for Executive to perform
Executive’s job responsibilities, disclose (or allow others to wrongfully
disclose) any Confidential Information to others or download or make copies of
any Confidential Information without Company’s written consent, or remove any
such records from the offices of Labor Ready except for the sole purpose of
conducting business on behalf of Labor Ready.  
If at any time Executive ever believes that any person has received or
disclosed or intends to receive or disclose Confidential Information without
Company’s consent, Executive agrees to immediately notify Company.

4.             At
any time during Executive’s employment upon Company’s request, and at the end
of Executive’s employment with Company, even without Company’s request,
Executive covenants, agrees to, and shall immediately return to Labor Ready, at
its headquarters in Tacoma, Washington, all Confidential Information as defined
herein, and all other material and records of any kind concerning Labor Ready’s
business, and all other property of Company that Executive may possess or
control.

 7
 

5.             At
all times, Executive agrees not to directly or indirectly take, possess,
download, allow others to take or possess or download, provide to others,
delete or destroy or allow others to delete or destroy, any of Labor Ready’s
Confidential Information or other property, other than in the normal course of
business.

6.             Executive
agrees that these covenants are necessary to protect Company’s Confidential
Information, and Company’s legitimate business interests (including, without
limitation, the confidentiality of Labor Ready’s business information and other
legitimate interests), in view of Executive’s key role with each branch of
Company and its affiliates and the extent of confidential and proprietary
information about the entire Company and its affiliates and clients to which
Executive has information.  Company and Executive agree that the provisions of this Section III do not
impose an undue hardship on Executive
and are not injurious to the public; that they are necessary to protect the
business of Company and its affiliates and
clients; that the nature of Executive’s
responsibilities with Company under
this Agreement and Executive’s former
responsibilities with Company provide and/or have provided Executive with access to Confidential
Information that is valuable and confidential to Company; that Company
would not continue to employ Executive
if Executive did not agree to the
provisions of this Section III; that this Section III is reasonable in its
terms and that sufficient consideration supports this Agreement, including,
without limit, this Section III.

7.             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 Company.  Executive and Company agree that this Agreement
should be interpreted in the way that provides the maximum protection to
Company’s Confidential Information.

8.             Executive
acknowledges that if Executive violates any of the foregoing covenants, the
damage to Company will be such that Company is not likely to be made whole with
a monetary award.  Therefore, Executive
agrees that if Executive violates or threatens to violate any such covenant,
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.

9.             Executive
represents and warrants that Executive has been in full compliance with the
provisions protecting Labor Ready’s Confidential Information as set forth in any
previous agreement with the Company, as well as all other terms and conditions
of any previous agreement with the Company.

B.    Other Employers and
Obligations.

1.             Executive
represents to 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 Company, or which will conflict with Company’s best interests
or Executive’s obligations under this Agreement.  Executive agrees to notify Executive’s supervisor
promptly in the event Executive or other employees is/are solicited for
employment by any competitor of Labor Ready.

2.             Executive
warrants that Executive’s employment with Company will not violate any
contractual obligations with other parties. 
Executive will not use during Executive’s employment with Company nor
disclose to Company any confidential or proprietary information or trade
secrets from any former or current employers, principals, partners,
co-venturers, 

 8
 

customers or suppliers, and will not bring onto 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 Company any such
agreements that may bear on employment with Company.  Executive agrees to tell any prospective new
employer about this Agreement and its terms.

IV.   ASSIGNMENT OF INVENTIONS.

A.            Inventions Assignment.

Executive will make prompt and full disclosure to Company, will hold in
trust for the sole benefit of Company, and does assign exclusively to 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
Executive’s employment with 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 its affiliates or
(ii) to the actual or demonstrably anticipated business, research or
development of Labor Ready or its affiliates; and (d) it does not result
from any work performed by Executive for Labor Ready or its affiliates.  Executive shall attach a list of all existing
Inventions meeting these requirements to this Agreement.

V.    COMPLIANCE WITH LAWS AND LABOR READY’S CODE
OF CONDUCT AND CORPORATE GOVERNANCE GUIDELINES.

A.            Commitment to Compliance.

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,
or other protected status under applicable law. 
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.  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 and shall comply with all federal, state and local
laws and regulations, including, without limit, equal employment opportunity
laws and wage and hour laws.  Executive
agrees to and shall immediately notify Company if Executive becomes aware of a
violation of 

 9
 

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, and Corporate Governance Guidelines.

Executive acknowledges and agrees that it is Executive’s duty to be
familiar with Labor Ready’s Code of Conduct and Labor Ready’s Corporate
Governance Guidelines, and to comply with all of their respective provisions.

VI.   MISCELLANEOUS.

A.    Integration.

Except with respect to Labor Ready’s Non-Competition Agreement, and the
Change in Control Agreement, (i) no promises or other communications made by
either Company or Executive are intended to be, or are, binding unless they are
set forth in this Agreement; and (ii) this Agreement contains the entire
agreement between the parties and replaces and supersedes any prior agreements,
including previous employment agreement(s). This Agreement may not be modified
except by a written instrument signed by an appropriate officer of Company and
by Executive.  This Agreement will be
binding upon Executive’s heirs, executors, administrators and other legal
representatives.

B.    Choice of Law.

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 Company waives any condition or term of this Agreement, Company is
not waiving any other condition or term, nor is Company waiving any rights with
respect to any future violation of the same condition or term.  If Company chooses to refrain from enforcing
any condition or term, Company does not intend to waive the right to do so.

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.

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

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F.    Venue and Consent to
Jurisdiction.

Where the parties have mutually waived their right to arbitration in
writing or have not yet sought to enforce their right to compel arbitration, or
where a temporary and/or preliminary or permanent injunction may be necessary
to protect the interests of Company, 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, or a proper superior court or United
State District Court in the jurisdiction in which Executive last worked, or
where Executive is engaged in violating the Agreement.  Executive and Company agree that the choice
of venue lies solely in the discretion of Company.  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, including but not limited to any
claim that any such suit, action or proceeding has been brought in an
inconvenient forum.

G.    Non-Disparagement.

At all times during the Executive’s employment with Company and
following termination of that employment by either Executive or Company,
Executive will not publicly disparage Company or its Subsidiaries or any of
their respective directors, officers or employees.   Executive will not be in breach of this
provision by providing information as required by law or legal compulsion.

H.    Survival.

Notwithstanding any provision of this Agreement to the contrary, the
parties’ respective rights and obligations under Sections II A., B. and
D., III, IV, and VI do and shall survive any termination of the Executive’s
employment and/or the assignment of this Agreement by Company to any successor
in interest or other assignee.

I.     Section 409A of the Code.

To the extent applicable, it is intended that this Agreement comply
with the provisions of Section 409A of the Code.  This Agreement will be administered in a
manner consistent with this intent, and any provision that would cause the
Agreement to fail to satisfy Section 409A of the Code will have no force
and effect until amended to comply with Section 409A of the Code (which amendment
may be retroactive to the extent permitted by Section 409A of the Code and
may be made by Company without the consent of the Executive).

J.     Other.

The headings used in this Agreement are intended for convenience or
reference only and will not in any manner amplify, limit, modify or otherwise
be used in the construction or interpretation of any provision of this
Agreement.  References to Sections are to
Sections of this Agreement.  Any
reference in this Agreement to a provision of a statute, rule or regulation
will also include any successor provision thereto.

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IN WITNESS WHEREOF, the parties have caused this
Agreement to be duly executed and delivered as of the date first above written.

LABOR READY, INC.

	
  

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ James E. Defebaugh

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  James E. Defebaugh

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Executive Vice
  President and General Counsel

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Chris D. Burger

  	
   

  	
   

  	
   

  
	
  EXECUTIVE

  	
   

  	
   

  	
   

  	 

								

 

By
signing this Agreement, I accept and acknowledge that I will abide by the terms
and conditions of this Agreement.  I
agree and understand that nothing in this Agreement shall confer any right with
respect to continuation of employment by Company, nor shall it interfere in any
way with my right or Company’s right to terminate my employment at any time,
with or without cause.

 12

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