Executive Employment Agreement – Costco

1.

Employment. The Company employs you as its Chief
Executive Officer.

2.

Employment Term. The terms of this letter agreement
cover one year, beginning August 30, 2010, and coinciding with the Company153s
fiscal year 2011, unless otherwise terminated as provided below. The parties may
renew this letter agreement from year-to-year upon agreement.

3.

Salary and Benefits.

(a)

You will receive a base salary of $350,000 for fiscal year
2011. The base salary will be paid to you in accordance with the Company153s
standard payroll practices.

(b)

You will be eligible for a bonus of up to $200,000. The
amount of any bonus will be determined by the Board of Directors or the
Compensation Committee, and will be paid to you in accordance with the Company153s
standard practices.

(c)

You will be eligible for an equity award under the Company153s
Fourth Restated 2002 Stock Incentive Plan or its successor plan. The Board of
Directors or the Compensation Committee will determine the amount of any grant.

(d)

All payments to you will be subject to withholding for taxes
and other applicable withholding requirements.

(e)

You will be eligible to participate in the Company153s employee
benefit programs, in accordance with the terms and conditions of those programs.

4.

Termination. The Company will have the right to
terminate your employment at any time for “cause,” as determined under
applicable law and policies of the Company. You may terminate your employment at
any time upon not less than sixty (60) days prior written notice.

5.

Miscellaneous. This letter agreement represents our
complete agreement on these subjects. We can only amend this letter agreement by
signing a written amendment. This letter will be governed by Washington law in
all respects.

Sincerely,

Compensation Committee of the

Board of Directors of

Costco Wholesale Corporation

By:

/s/ BENJAMIN S. CARSON, SR., M.D.

Benjamin S. Carson, Sr., M.D., Chair

/s/ JAMES D. SINEGAL

Jim Sinegal

Dated:

October 6, 2010