Exhibit 10.2


 


LABOR READY, INC.

2002 U.K. STOCK OPTION PLAN


 


1.              PURPOSE


 


The purpose of the Labor Ready, Inc. 2002 U.K. Stock
Option Plan (hereinafter the “Plan”) is to enhance the long-term shareholder
value of Labor Ready, Inc., a Washington corporation (hereinafter the
“Company”), by aligning the interests of employees of the Company and its
subsidiaries with the interests of its shareholders by offering opportunities
to all full-time employees of the Company and its Subsidiaries to own shares in
the Company and thereby participate in the Company’s growth and success, and to
encourage them to remain in the service of the Company and its subsidiaries.
This Plan is a “group plan” as contemplated by Schedule 9 of ICTA 1988 (as
defined below).


 


2.              DEFINITIONS


 


For purposes of the Plan, the following terms shall be
defined as set forth below:


 


2.1.                    “Board”
means the Board of Directors of the Company.


 


2.2.                    “Common
Stock” means the common stock of the Company.


 


2.3.                    “Corporate
Transaction” means any of the following events:


 


2.3.1.                     Consummation
of any merger or consolidation of the Company in which the Company is not the
continuing or surviving corporation, or pursuant to which shares of Common
Stock are converted into cash, securities, or other property, if following such
merger or consolidation the holders of the Company’s outstanding voting
securities immediately prior to such merger or consolidation own less than 50%
of the outstanding voting securities of the surviving corporation;


 


2.3.2.                     Consummation
of any sale, lease, exchange, or other transfer, in one transaction or a series
of related transactions, of all or substantially all of the Company’s assets,
other than a transfer of the Company’s assets to a majority-owned subsidiary
corporation of the Company; or


 


2.3.3.                     Approval by
the holders of the Common Stock of any plan or proposal for the liquidation or
dissolution of the Company.


 


Ownership of voting
securities shall take into account and shall include ownership as determined by
applying Rule 13d-3(d)(1)(i) (as in effect on the date of adoption of the Plan)
under the Exchange Act.


 


2.4.                    “Eligible
Employee” means any employee or director of the Company or any Subsidiary
who is required to devote to his or her duties not less than 25 hours per week


 


1

















 


(excluding meal breaks),
and who is not otherwise precluded from participating in the Plan by virtue of
holding a “material interest” in a close company as defined in Paragraph 8 of
Schedule 9 of the ICTA 1988.


 


2.5.                    “Exchange
Act” means the United States Securities Exchange Act of 1934, as amended.


 


2.6.                    “Fair
Market Value” shall mean the closing sale price for the Common Stock as
such price is officially quoted in the composite tape of the transactions on such
exchange for the date upon which the “Fair Market Value” is to be
determined.  If there is no such
reported price for the Common Stock for any date in question, then the reported
price available on the last trading day immediately preceding such date shall
be used to determine the “Fair Market Value.” 
If the Common Stock is not listed on the New York Stock Exchange then
the “Fair Market Value” shall be established in good faith by the Plan
Administrator.


 


2.7.                    “Grant Date”
means the date on which the Plan Administrator adopted the granting resolution
or a later date designated in a resolution of the Plan Administrator as the
date an Option is to be granted.


 


2.8.                    “ICTA 1988”
means the Income and Corporation Taxes Act 1988.


 


2.9.                    “Option”
means an approved stock option granted
under the Plan, which grants the recipient the right to purchase Common Stock.


 


2.10.              “Optionee”
means (i) the person to whom an Option is granted; (ii) for an Optionee who has
died, the personal representative of the Optionee’s estate, the person(s) to
whom the Optionee’s rights under the Option have passed by will or by the
application of laws of descent and distribution, or the beneficiary designated
in accordance with Section 8; or
(iii) person(s) to whom an Option has been transferred in accordance with
Section 8.


 


2.11.              “Option Exercise
Price” shall have the meaning set forth in Section 7.2.


 


2.12.              “Plan
Administrator” means the Board or any committee of the Board designated to
administer the Plan under Section 3.1


 


2.13                 “Schedule 9”
means Schedule 9 of the ICTA 1988.


 


2.14.              “Subsidiary”
means any entity that is directly or indirectly controlled by the Company or in
which the Company has a significant ownership interest, as determined by the
Plan Administrator, and any entity that may become a direct or indirect parent
of the Company.


 


2.15.              “Subsisting
Option” means an Option granted under this Plan which has neither lapsed
nor been exercised


 


2

















 


3.              ADMINISTRATION


 


3.1.                    Plan Administrator.
The Plan shall be administered by the Board or a committee or committees (which
term includes subcommittees) appointed by and consisting of one or more members
of the Board.  The Board may delegate
the responsibility for administering the Plan with respect to designated
classes of eligible persons to different committees consisting of two or more
members of the Board, subject to such limitations as the Board deems
appropriate.  Committee members shall
serve for such term as the Board may determine, subject to removal by the Board
at any time.


 


3.2.                    Administration
and Interpretation by the Plan Administrator. Except for the terms and
conditions explicitly set forth in this Plan, the Plan Administrator shall have
exclusive authority, in its discretion, to determine all matters relating to
Options under the Plan, including the selection of Eligible Employees to be
granted Options, the number of shares of Common Stock subject to an Option, all
terms, conditions, restrictions, and limitation, if any, of an Option and the
terms of any instrument that evidences the Option.  The Plan Administrator shall also have exclusive authority to
interpret the Plan and may from time to time adopt, and change, rules and
regulations of general application for the Plan’s administration. The Plan
Administrator’ s interpretation of the Plan and its rules and regulation, and
all actions taken and determinations made by the Plan Administrator pursuant to
the Plan, shall be conclusive and binding on all parties involved or affected.
The Plan Administrator may delegate administrative duties to such of the
Company’s officers as it so determines.


 


4. STOCK SUBJECT TO THE PLAN


 


4.1.                    Authorized
Number of Shares.  Subject to
adjustment from time to time as provided in Section 9, a maximum of
200,000 shares of Common Stock (subject to appropriate adjustment in the case
of stock splits, stock dividends and the like) shall be available for issuance
under the Plan. Shares issued under the Plan shall be drawn from authorized and
unissued shares or shares now held or subsequently acquired by the Company.


 


4.2.                    Reuse of
Shares.  Any shares of Common Stock
that have been made subject to an Option but that cease to be subject to the
Option (other than by reason of exercise of the Option to the extent it is
exercised for shares) shall again be available for issuance in connection with
future grants of Options under the Plan


 


5.              ELIGIBILITY


 


5.1.                    Eligible
Employees.  Options may be granted
under the Plan to Eligible Employees as the Plan Administrator from time to
time selects.


 


5.2.                    Maximum
Value of Options.  Any Option
granted to an Eligible Employee shall be limited and take effect so that the
aggregate Option Exercise Price of the shares


 


3

















 


subject to that Option,
when aggregated with the Option Exercise Price of shares subject to Subsisting
Options, shall not exceed £30,000.


 


5.3.       No Material Interest.  No person shall be an Eligible Employee if,
at the time of grant or exercise of an Option said person has a “material
interest” in a close company as defined in Paragraph 8 of Schedule 9 of
the ICTA 1988.


 


6.              ACQUSITIONS


 


Notwithstanding anything
in the Plan to the contrary, the Plan Administrator may grant Options under the
Plan in substitution for awards issued under other plans, or assume under the
Plan awards issued under other plans, if the other plans are or were plans of
other acquired entities (“Acquired Entities”) (or the parent of the Acquired
Entity) and the new Option is substituted, or the old award is assumed, by
reason of a merger, consolidation, acquisition of property or of stock,
reorganization or liquidation (the “Acquisition Transaction”).  In the event that a written agreement
pursuant to which the Acquisition Transaction is completed is approved by the
Board and said agreement sets forth the terms and conditions of the
substitution for or assumption of outstanding awards of the Acquired Entity,
said terms and conditions shall be deemed to be the action of the Plan
Administrator without any further action by the Plan Administrator, and the
persons holding such awards shall be deemed to be Optionees.


 


7.              TERMS
AND CONDITIONS OF OPTIONS


 


7.1.                    Form and
Grant of Options.  The Plan
Administrator shall have the authority, in its sole discretion, to determine
the amount of Options to be made under the Plan. Options may be granted singly
or in combination.


 


7.2.                    Option
Exercise Price.  The exercise price
for shares purchased under an Option shall be as determined by the Plan
Administrator, but shall not be less than 100% of the Fair Market Value of the
Common Stock on the Grant Date.


 


7.3.                    Term of
Options. The term of each Option shall be as established by the Plan
Administrator or, if not so established, shall be five years from the Grant Date.


 


7.4.                    Exercise of
Options.  The Plan Administrator
shall establish and set forth in each instrument that evidences an Option the
time at which or the installments in which the Option shall become exercisable,
which provisions may be waived or modified by the Plan Administrator at any
time.  If not so established in the
instrument evidencing the Option, the Option will become exercisable according
to the following schedule, which may be waived or modified by the Plan
Administrator at any time:


 


4

















 


	
  Period of Holder’s Continuous

  Employment or Service With

  the Company or Its

  Subsidiaries From the Option

  Grant Date

  	
   

  	
  Percent of
  Total Option

  That is Exercisable

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  After One Year

  	
   

  	
  25%

  	
   

  
	
  Each one year
  period of continuous service completed thereafter

  	
   

  	
  An additional
  25%

  	
   

  
	
  After four years
  of continuous service

  	
   

  	
  100%

  	
   

  



 


To the extent that the
right to purchase shares has accrued thereunder, an Option may be exercised
from time to time by written notice to the Company, in accordance with
procedures established by the Plan Administrator, setting forth the number of
shares with respect to which the Option is being exercised and accompanied by
payment in full as described in Section 7.5.


 


7.5.                    Payment of
Exercise Price.                                        The
exercise price for shares purchased under an Option shall be paid in full to
the Company by delivery of consideration equal to the product of the Option
Exercise Price and the number of shares purchased.  Such consideration must be paid in cash or by check or, unless
the Plan Administrator in its sole discretion determines otherwise, either at
the time the Option is granted or at any time before it is exercised, a
combination of cash and/or check and if and so long as the Common Stock is
registered under Section 12(b) or 12(g) of the Exchange Act, delivery of a
properly executed exercise notice, together with irrevocable instruction, to
(i) a brokerage firm designated by the Company to deliver promptly to the
Company the aggregate amount of sale or loan proceeds to pay the Option
Exercise Price and any withholding tax obligations that may arise in connection
with the exercise and (ii) the Company to deliver the certificates for such
purchased shares directly to such brokerage firm, all in accordance with the
regulations of the Federal Reserve Board and Inland Revenue.  In addition, the exercise price for shares
purchased under an Option may be paid, either singly or in combination with one
or more of the alternative forms of payment authorized by this Section 7.5
or by such other consideration as the Plan Administrator may permit.


 


7.6.                    Post-Termination Exercises.  The Plan Administrator
shall establish and set forth in each instrument that evidences an Option
whether the Option will continue to be exercisable, and the terms and
conditions of such exercise, if an Optionee ceases to be employed by, or to
provide services to, the Company or its Subsidiaries, which provisions may be
waived or modified by the Plan Administrator at any time.  If not so established in the instrument
evidencing the Option, the Option will be exercisable according to the
following terms and conditions, which may be waived or modified by the Plan
Administrator at any time.


 


5

















 


Any portion of an Option
that has not been exercised shall terminate ninety (90) days after the date of
termination of the Optionee’s employment or services.  A transfer of employment or services between or among the Company
and its Subsidiaries shall not be considered a termination of employment or
services.  The effect of a
Company–approved leave of absence on the terms and conditions of an Option
shall be determined by the Plan Administrator, in its sole discretion.


 


8.              ASSIGNABILITY


 


8.1.                    No
Assignment.  No Option granted under
the Plan may be assigned, pledged or transferred by the Optionee other than by
will or by the applicable laws of descent and distribution, and during the
Optionee’s lifetime, such Option may be exercised only by the Optionee or a
permitted assignee or transferee of the Optionee (as provided below)


 


8.2.                    Exercise
Upon Death of Optionee. 
Section 8.1 notwithstanding, any Option not exercised on the first
anniversary of an Optionee’s death shall immediately terminate.


 


9.              ADJUSTMENTS


 


9.1.                              Adjustment
of Shares.  In the event that, at
any time or from time to time, a stock dividend, stock split, spin-off,
combination or exchange of shares, recapitalization, merger, consolidation,
distribution to shareholders other than a normal cash dividend, or other change
in the Company’s corporate or capital structure results in (a) the
outstanding shares, or any securities exchanged therefor or received in their
place, being exchanged for a different number or class of securities of the
Company or of any other corporation or (b) new, different or additional
securities of the Company or of any other corporation being received by the
holders of shares of Common Stock of the Company, then the Plan Administrator
shall make proportional adjustments in (i) the maximum number and kind of
securities subject to the Plan as set forth in Section 4.1 and
(ii) the number and kind of securities that are subject to any outstanding
Option and the per share price of such securities, without any change in the
aggregate price to be paid therefor. 
The determination by the Plan Administrator as to the terms of any of
the foregoing adjustments shall be conclusive and binding.


 


9.2.                              Adjustment
of Options.  The Plan Administrator
shall have the discretion, exercisable at any time before a sale, merger,
consolidation, reorganization, liquidation, or change in control of the
Company, as defined by the Plan Administrator, to take such further action as
it determines to be necessary or advisable, and fair and equitable to
Optionees, with respect to Options. 
Such authorized action may include (but shall not be limited to)
establishing, amending or waiving the type, terms, conditions or duration of,
or restrictions on, Options so as to provide for earlier, later, extended or
additional time for exercise and other modifications, and the Plan
Administrator may take such actions with respect to all Optionees, to certain
categories of Optionees or only to individual Optionees.  The Plan Administrator may take such action
before or after granting Options to which the action relates and before or
after any public announcement with respect to


 


6

















 


such sale, merger,
consolidation, reorganization, liquidation, or change in control that is the
reason for such action.


 


9.3.                              Limitations.
The grant of Options will in no way affect the Company’s right to adjust,
reclassify, reorganize, or otherwise change its capital or business structure
or to merge, consolidate, dissolve, liquidate or sell or transfer all or any
part of its business or assets.


 


10.                               WITHHOLDING


 


The Company may require
the Optionee to pay to the Company the amount of any withholding taxes that the
Company is required to withhold with respect to the grant or exercise of any
Option.  Subject to the Plan and
applicable law, the Plan Administrator may, in its sole discretion, permit the
Optionee to satisfy withholding obligations, in whole or in part, by paying
cash, by electing to have the Company withhold shares of Common Stock or by
transferring shares of Common Stock to the Company, in such amounts as are
equivalent to the Fair Market Value of the withholding obligation.  The Company shall have the right to withhold
from any shares of Common Stock issuable pursuant to an Option or from any cash
amounts otherwise due or to become due from the Company to the Optionee an
amount equal to such taxes.  The Company
may also deduct from any Option any the amounts due from the Optionee to the
Company or a Subsidiary.


 


11.  AMENDMENT AND
TERMINATION OF PLAN


 


11.1.              Amendment of Plan.  The Plan may be amended only the Board in
such respects as it shall deem advisable


 


11.2.              Termination of
Plan.  The Board may suspend or
terminate the Plan at any time.  The
Plan will have not fixed expiration date.


 


11.3.              Consent of
Optionee.  The amendment or
termination of the Plan shall not, without the consent of the Optionee, impair
or diminish any rights or obligations under any Option theretofore granted
under the Plan


 


11.4.              Approval of Plan
Amendments by Inland Revenue.   If
an alteration is made at any time to the Plan after Inland Revenue has approved
this Plan, the approval shall not have effect after the date of the alteration
unless Inland Revenue has approved the alteration(s).


 


11.5.              No adjustments or
alterations shall be made to Subsisting Options without the prior approval of
such adjustments by Inland Revenue.


 


12.       GENERAL


 


12.1.              Option
Agreements.  Options granted under the
Plan shall be evidenced by a written grant in such form as approved by the Plan
Administrator.  In any event, the form


 


7

















 


approved by the Plan
Administrator shall state the Option Exercise Price and be issued under the
corporate seal.


 


12.2.              Continued
Employment or Services; Rights in Options. 
None of the Plan, participation in the Plan, or any action of the Plan
Administrator taken under the Plan shall be construed as giving any person any
right to be retained in the employ of the Company or limit the Company’s right
to terminate the employment or services of any person.


 


12.3.              No Rights as a
Shareholder.  No Option shall
entitle the Optionee to any dividend, voting, or other right of shareholder
unless and until the date of issuance under the Plan of the shares that are the
subject of such Option, free of all applicable restrictions.


 


12.4.              No Trust or Fund.  The Plan is intended to constitute an
“unfunded” plan.  Nothing contained
herein shall require the Company to segregate any moneys or other property, or
shares of Common Stock, or to create any trusts, or to make any special
deposits for any immediate or deferred amounts payable to any Optionee, and no
Optionee shall have any rights that are greater than those of a general
unsecured creditor of the Company.


 


12.5.              Costs and
Expenses. Except as provided herein with respect to the payment of taxes,
all costs and expenses of administering the Plan shall be borne by the Company
and shall not be charged to any grant nor any employee receiving a grant.


 


12.6.              Severability.  If any provision of the Plan or any Option
is determined to be invalid, illegal or unenforceable in any jurisdiction, or
as to any person, or would disqualify the Plan or any Option under any law
deemed applicable by the Plan Administrator, such provision shall be construed
or deemed amended to conform to applicable laws, or, if it cannot be so
construed or deemed amended without, in the Plan Administrator’s determination,
materially altering the intent of the Plan or the Option, such provision shall
be stricken as to such jurisdiction, person or Option, and the remainder of the
Plan and any such Option shall remain in full force and effect.


 


13.       EFFECTIVE DATE


 


The effective date of the
Plan is the date on which it is adopted by the Board.


 


8