Document:

Prepared by MerrillDirect

Exhibit 10.33

	
  AIU Insurance Company
  	
  American International
  Companies
  
	
  American Home Assurance
  Company
  	
  Principal Bond Office
  
	
  Granite State Insurance
  Company
  	
  175 Water Street, 6th Floor
  
	
  Illinois National Insurance
  Company
  	
  New York, N.Y. 10038
  
	
  The Insurance Company of the
  State of Pennsylvania
  	 
  
	
  National Union Fire Insurance
  Company of Pittsburgh, PA
  	 
  
	
  New Hampshire Insurance
  Company
  	 
  
	
  Commerce and Industry
  Insurance Company
  	 
  
	
  Commerce and Industry
  Insurance Company of Canada
  	 
  

CONTINUING
AGREEMENT OF INDEMNITY MISCELLANEOUS SURETY BONDS

THIS AGREEMENT is
made by the undersigned for the continuing benefit of AIU Insurance Company,
American Home Assurance Company, Granite State Insurance Company, Illinois
National Insurance Company, The Insurance Company of the State of Pennsylvania,
National Union Fire Insurance Company of Pittsburgh, Pa, New Hampshire
Insurance Company, Commerce and Industry Insurance Company, Commerce and
Industry Insurance Company of Canada (hereinafter referred to collectively as
the "SURETY") for the purpose of saving each and all of them harmless
and indemnifying each and all of them from all loss and expense in connection
with any Bonds executed on behalf of any one or more of the following persons,
firms or corporations:

Labor Ready, Inc.

(hereinafter
referred to as Applicant).

WITNESSETH,

WHEREAS,
the Applicant; individually; jointly with others or on behalf of any of its
subsidiaries, affiliates or divisions or their subsidiaries, affiliates or
divisions now in existence or hereafter formed or acquired; or on behalf of
individuals, partnerships or corporations, may desire or be required from time
to time to give certain bonds, undertakings, or instruments of guarantee (all
of which will hereinafter be included within the term "BOND" OR
"BONDS"), and

WHEREAS,
upon the express condition that this instrument be executed, the Surety has
executed or procured the execution of, or may from time to time hereafter
execute or procure the execution of such Bonds, and the Surety may continue the
Bond or Bonds heretofore executed and may forebear cancellation of such Bonds;

NOW,
THEREFORE, in consideration of the execution of any such bond or bonds or the
forbearance of cancellation of existing Bonds and as an inducement to such
execution or forbearance, we, the Undersigned, agree and bind ourselves, our
heirs, executors, administrators, successors and assigns, jointly and
severally, as follows:

FIRST:
To pay to the Surety in advance upon the execution of each Bond the initial
premium computed in accordance with the rates currently charged by the Surety
at the time such Bond is executed and the Undersigned will also pay all renewal
or additional premiums computed and such rates until proof is furnished
satisfactory to the Surety of its discharge from all liability under such Bond.

SECOND:
To indemnify, and keep indemnified, and hold and save harmless the Surety
against all demands, claims, loss, costs, damages, expenses and attorneys' fees
whatever, and any and all liability therefore, sustained or incurred by the
Surety by reason of executing or procuring the execution of any said Bond or
Bonds, or any other Bonds, which may be already or hereafter executed for or at
the request of the Undersigned, or renewal or continuation thereof, or
sustained or incurred by reason of making any investigation on account thereof,
prosecuting or defending any action brought in connection therewith, obtaining
a release therefrom, recovering or attempting to recover any salvage in
connection therewith or enforcing by litigation or otherwise any of the
agreements herein contained. Payment of amounts due Surety hereunder together
with legal interest shall be payable upon demand.

THIRD:
That if Surety shall be required or shall deem it reasonably necessary to set
up a reserve in any amount to cover any claim, demand, liability, expense,
suit, order, judgment or adjudication under or on any Bond or Bonds, to
immediately upon demand deposit with Surety an amount of money sufficient to
cover such reserve and any increase thereof, at anytime, in payment or
compromise of any liability, claims, demands, judgment, damages, fees and
disbursements or other expenses; and the Undersigned, in the event of their
failure to comply with such demand, hereby authorize and empower any attorney of
any court of record of the United States or any of its territories or
possessions, to appear for them or any of them in any suit by Surety and to
confess judgment against them or any of them for any sum or sums of money up to
the amount of any or all Bond or Bonds with costs, interest and reasonable
attorney’s fees; such judgment, however to be satistied upon the payment of any
and all such sums as may be found due by the Undersigned to Surety under the
terms of this agreement. The authority to confess judgment as set forth herein
shall not be exhausted by any one exercise thereof, but may be exercised from
time to time and more than one time until all liability of the Undersigned to
Surety shall have been paid in full. Demand shall be sufficient if sent by
registered or certified mail to the Undersigned at the address or addresses
given herein or last known to Surety, whether or not actually received. The
Surety shall notify the Undersigned in writing of its intent to seek a
confession of judgement against the Undersigned three days prior to going to
court and said notice shall contain the time, date and place in which the
confession of judgment will be sought . Furthermore, notice shall be sufficient
if sent by registered or certified mail, facsimile transmission, or electronic
mail to the Undersigned at the address or addresses given herein or last known
to the Surety and in no way is proof of receipt necessary prior to the Surety
commencing with said confession of judgement.

FOURTH: All collateral security held by
or assigned to the Surety may be used by the Surety at anytime in payment of
any claim, loss or expense which the Undersigned have agreed to pay hereby,
whether or not such claim, loss or expense arises out of or in connection with
such Bond under which such collateral is held. The Surety may sell or realize
upon any or all such collateral security, at public or private sale, with or
without notice to the Undersigned or any of them, and with the right to be
purchaser itself at any public sale, and shall be accountable to the
Undersigned only for such surplus or remainder of such collateral security or
the proceeds thereof as may be in the Surety's possession after it has been
fully indemnified as in this agreement provided. The Surety shall not be liable
for decrease in value or loss or destruction of or damage to such security,
however caused.

FIFTH:
The Surety shall have the right, at its option and in its sole discretion;

	
  (a)
  	
  To deem this Agreement breached should the
  Applicant become involved in any agreement or proceeding of liquidation,
  receivership, or bankruptcy, voluntarily or involuntarily, or should the
  Applicant, if an individual, die, be convicted of a felony, become a fugitive
  from justice, or for any reason disappear and cannot immediately be found by
  the Surety by use of usual methods.

  
	
  (b)
  	
  To adjust, settle or compromise any claim,
  demand, suit or judgment upon said Bond or Bonds, or any of them, unless the
  Undersigned shall request in writing the Surety to litigate such claim or demand,
  or defend such suit, or appeal from such judgment, and shall deposit with the
  Surety, at the time of such request, cash or collateral satisfactory to the
  Surety in kind and amount to be used in paying any judgment or judgments
  rendered with interest, costs and attorneys' fees.
  

All
damage, loss or expense of any nature which the Surety may incur under section
FIFTH shall be borne by the Undersigned.

SIXTH:
Each of the Undersigned expressly consent that in the event of any action
against the Surety arising out of its execution of such Bond or Bonds which is
not handled pursuant to the provisions of Section FIFTH subparagraph (b), the
Surety shall have the right to apply to the Court in which such action is
brought for an order making any one or more of them defendants and hereby
further consent to the granting of such application for making such order and
agree to become parties defendant.

SEVENTH:
The Surety shall have the exclusive right for itself and for the Undersigned to
decide and determine whether any claim, demand, suit or judgment upon said Bond
or Bonds shall, on the basis of liability, expediency or otherwise, be paid,
settled, defended or appealed, and its determination shall be final, conclusive
and binding upon the Undersigned (except as provided in Section FIFTH (b)
hereof); and any loss, costs, charges, expense or liability thereby sustained
or incurred, as well as any and all disbursements on account of costs,
expenses, and attorneys' fees, deemed necessary or advisable by the Surety, shall
be borne and paid immediately by the Undersigned, together with legal interest.
In the event of any payment, settlement, compromise or investigation, an
itemized statement of the payment, loss, costs, damages, expenses or attorneys'
fees, sworn to by any officer of the Surety or the voucher or vouchers or other
evidence of such payment, settlement or compromise shall be prima facie
evidence of the fact and extent of the liability of the Undersigned to the
Surety in any claim or suit hereunder and in any and all matters arising
between the Undersigned and the Surety.

EIGHTH:
Until the Surety shall have been furnished with competent legal evidence of its
discharge without loss from any and all Bonds, the Surety shall have the right
at all times to free access to the books, records and accounts of each of the
Undersigned for the purpose of examining the same. Each of Undersigned hereby
authorizes and requests any and all depositories in which funds of any of the
Undersigned may be deposited to furnish to the Surety the amount of such
deposits as of any date requested and any person, firm or corporation doing
business with the Undersigned is hereby authorized to furnish any information
requested by the Surety concerning pity
transaction.
The Surety may furnish copies of any and all statements, agreements and
financial statements and any information which it now has or may hereafter
obtain concerning each of the Undersigned, to other persons or companies for
the purpose of procuring co-suretyship or reinsurance or of advising interested
persons or companies.

NINTH:
Each of the Undersigned does hereby waive all right to claim any property,
including homestead as exempt from levy, execution, sale or other legal process
under the law of any state, province or other government as against the rights
of the surety to proceed against the same for indemnity hereunder. The
Undersigned hereby waive all notice of any default or any other act or acts
giving rise to any claim under any said Bond or Bonds, and waive notice of any
and all liability of the Surety under any said Bond or Bonds or any and all
liability on the part of the Undersigned to the effect and end, that each of
the Undersigned shall be and continue liable to the Surety hereunder
notwithstanding any notice of any kind to which the Undersigned might have been
or be entitled and notwithstanding any defenses which the Undersigned might
have been or entitled to make.

TENTH: The Surety shall have every right
and remedy which a personal surety without compensation would have,
including the right to secure its discharge from the suretyship, and nothing
herein contained shall be considered or construed to waive, abridge or diminish
any right or remedy which the Surety might have if this instrument were not
executed. The Undersigned will, on request of the Surety procure the discharge
of the Surety from any bonds, and all liability by reason thereof. Separate
suits may be brought hereunder as causes of action may accrue, and the pendency
or termination of any such suit shall not bar any subsequent action. The Surety
shall be notified immediately by the Undersigned of any claim or action which
may result in a claim against the Surety, such notice to be given by registered
mail to the Surety at its Home Office, In the event of legal proceedings
against the Surety, upon or on account of any said Bond or Bonds, the Surety
may apply for a court order making any or all of the Undersigned parties
defendants, and such Undersigned hereby consents to the granting of such
application and agrees to become such a party defendant and to allow judgment,
in the event of judgment against the Surety, to be rendered also against such
Undersigned in like amount and in favor of the Surety, if the Surety so
desires.

ELEVENTH:
The Surety may decline to execute any Bond herein applied for and it shall not
be liable to the Undersigned and the Undersigned shall make no claim for any
damages alleged to arise from such declination nor shall it be liable to the
Undersigned should its Bond or Bonds not be accepted. Furthermore, the Surety
shall have the absolute right to cancel any Bond in accord with any
cancellation provision contained therein, to procure its release from any Bond
under any law for the release of sureties: and the Surety is hereby released
from any liability for expense, cost of damage alleged to be sustained by the
Undersigned by reason of such cancellation or release of bond obligation.

TWELFTH:
The Agreement shall, in all its terms and agreements, be for the benefit of and
protect any person or company joining with the Surety in executing said Bond or
Bonds, or any of them or executing at the request of the Surety said Bond or
Bonds, or any of them as well as any company or companies assuming
co-suretyship or reinsurance thereon.

THIRTEENTH:
The Undersigned warrant that each of them is specifically and beneficially
interested in the obtaining of each Bond. Failure to execute, or defective
execution, by any party, shall not affect the validity of this obligation as to
any other. party executing the same and each such other party shall remain
fully bound and liable hereunder. Invalidity of any portion or provision of
this Agreement by reason of the laws of any state or for any other reason shall
not render the other provisions or portion hereof invalid. Execution of any
application for any Bond by the Applicant, or of any other indemnity agreement
by any Undersigned for the Applicant shall in no way abrogate, waive or
diminish any rights of Surety under this Agreement. The undersigned acknowledge
that the execution of this Agreement and the undertaking of indemnity was not
made in reliance upon any representation concerning the financial
responsibility of any Undersigned, or concerning the competence of the
Applicant to perform.

FOURTEENTH:
Each of the Undersigned expressly recognizes and covenants that this Agreement
is a continuing obligation applying to and indemnifying the Surety as to any
and all Bonds (whether or not covered by any application signed by
Applicant-such application to be considered between the parties hereto as
merely supplemental to this Continuing Agreement of Indemnity) heretofore or
hereafter executed by Surety on behalf of Applicant (whether acting alone or as
a Co-venturer) until this Agreement shall be canceled in the manner hereinafter
provided. Any of the Undersigned may notify the Surety at its Home Office, of
such Undersigned's withdrawal from this Agreement; such notice shall be sent by
certified or registered mail and shall state when, not less than thirty days after
receipt of such notice by the Surety, such withdrawal shall be effective. Such
,Undersigned will not be liable under this Agreement as to any Bonds executed
by the Surety after the effective date of such notice; provided, that as to any
and all such Bonds executed or authorized by the Surety prior to effective date
of such notice and as to all, and all renewals, continuations and extensions
thereof or substitutions, therefore, regardless of when the same are executed,
such Undersigned shall be and remain fully liable hereunder, as if said notice
had not been served. Such withdrawal by any Undersigned shall in no way affect
the obligation of any other Undersigned who has given no such notice of
termination.

FIFTEENTH:
The Surety shall have the right, and is hereby authorized and empowered but not
required: (a) To increase or decrease the penalty or penalties of any such Bond
or Bonds, to change the obligee or obligees therein, to execute any
continuations, enlargements, modifications and renewals thereof or substitute
therefore with the same or different conditions, provisions and obligees, and
with the same or larger or smaller penalties, it being agreed that this
instrument shall apply to and cover such new or changed bonds or renewals even
though the consent of the Surety may or does substantially increase the
liability of the Applicant and the Undersigned; (b) to take such steps as it
may deem necessary or proper to obtain release from liability under any such
Bond or Bonds.

SIXTEENTH:
The foregoing indemnity shall apply as to all Bonds as aforesaid unless the
Undersigned herein shall specifically designate in this paragraph the Bond to
which his indemnity shall be limited and affix his signature following that
designation.

BOND DESCRIPTION:                   N/ A

SIGNATURE:                N/A

SEVENTEENTH:
The Surety shall be entitled to enforce the obligations hereof directly against
any and all Undersigned without the necessity of first proceeding against the
Applicant.

EIGHTEENTH:
This Agreement or a carbon, photographic, xerographic or other reproduction or
copy of this Agreement shall constitute a Security Agreement to Surety and also
a Financing Statement, both in accordance with the provisions of the Uniform
Commercial Code of every jurisdiction wherein such Code is in effect, but the
filing or recording of this Agreement shall be solely at the option of Surety
and the failure to do so shall not release or impair any of the obligations of
the Applicant or the Undersigned under this Agreement or otherwise arising, nor
shall such failure be in any manner in derogation of the rights of Surety under
this Agreement or otherwise.

NINETEENTH:
The rights of indemnification of each Surety signatory to this Agreement shall
be individual and not joint with those of the other signatory Sureties as
respects any bond issued by it, to any Applicant and shall be enforceable
against the Undersigned as to any and all bonds issued to any Applicant
hereunder.

TWENTIETH:
PLACE IN FUNDS – Where under the terms of any Bond or Bonds the surety is
required to make payment upon receipt of a first written or simple demand
without proof or condition, the Undersigned will immediately upon the Surety's
first written request or simple demand (which shall be conclusive evidence that
such sums is due and payable) pay to the Surety or place with the Surety
(subject to the Bond amount and additional costs or liquidated damages, if any)
the sum required to make such payment without any question or delay and whether
or not such demand is in the Undersigned's opinion a proper demand.

Signed,
sealed and dated this 6th day of
April, 2000.

	
  Labor Ready, Inc.
  	
  Attest:
  
	 
  	 
  
	
  By /s/ Joseph P. Sambataro
  	
  /s/ Ronald L. Junckl
  
	
  Joseph P. Sambataro, Executive Vice
  	
  Ronald L. Junck, General Counsel and
  
	
  President, CFO and Treasurer
  	
  SecretaryPrepared by MerrillDirect

Exhibit 10.34

LABOR READY, INC..

2000 STOCK OPTION PLAN

(AS AMENDED FEBRUARY 20, 2001)

SECTION 1.

PURPOSE

          The purpose
of the 2000 Stock Option Plan (the “Plan”) is to enhance the long-term
shareholder value of Labor Ready, Inc., a Washington corporation (the
“Company”), by aligning the interests of its employees with those of its
shareholders by offering opportunities to all full-time employees of the
Company and its Subsidiaries (as defined in Section 2) 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.  Officers and Directors of
the Company are not eligible to participate in this Plan.

SECTION 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.    “Code” means the Internal Revenue Code of
1986, as amended from time to time.

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

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

                    2.4.1. 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;

                    2.4.2. 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

                    2.4.3. 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.

          2.5
    "Director" means an
individual duly elected or appointed to the Company's board of directors.

          2.6     “Disability” means “permanent and total
disability” as that term is defined for purposes of Section 22(e)(3) of the
Code.

          2.7     “Early Retirement” means early retirement
as that term is defined by the Plan Administrator from time to time for
purposes of the Plan.

          2.8
    "Employee"
means a person continuously employed for not less than one month by the Company
or by any current or future Subsidiary of the Company on a regular basis.

          2.9     “Exchange Act” means the Securities
Exchange Act of 1934, as amended.

          2.10   “Fair Market Value” shall be as
established in good faith by the Plan Administrator or (a) if the Common
Stock is listed on the Nasdaq National Market, the closing sale price for the
Common Stock as reported by the Nasdaq National Market for the date upon which
the “Fair Market Value” is to be determined, or (b) if the Common Stock is
listed on the New York Stock Exchange or the American Stock Exchange, the
closing sale price for the Common Stock as such price is officially quoted in
the composite tape of 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.

          2.11   “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.

          2.12   "Officer" means the Chief
Executive Officer, President, Vice-President, Chief Financial Officer and such
other executive management persons designated by the Board of Directors from
time to time, all in conformity with NYSE rule 312.03.

          2.13   “Option” means a nonqualified stock
option granted under this Plan, which grants the recipient the right to
purchase Common Stock.

          2.14   “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 applicable laws of
descent and distribution, or the beneficiary designated in accordance with
Section 9; or (iii) person(s) to whom an Option has been transferred in
accordance with Section 9.

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

          2.16   “Retirement” means retirement as of the
individual’s normal retirement date as that term is defined by the Plan
Administrator from time to time for purposes of the Plan.

          2.17   “Securities Act” means the Securities Act
of 1933, as amended.

          2.18   “Subsidiary”, except as provided in
Section 8.3 in connection with Incentive Stock Options, 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.

          2.19   “Successor Corporation” has the meaning
set forth under Section 10.2.

SECTION 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 the 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 Employees to be granted Options, the number of shares of Common
Stock subject to an Option, all terms, conditions, restrictions and
limitations, 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
regulations, 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.

SECTION 4.

STOCK SUBJECT TO THE PLAN

          4.1.    Authorized Number of Shares.  Subject to adjustment from time to time as
provided in Section 10.1, a maximum of 3,000,000 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.

SECTION
5.

ELIGIBILITY

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

SECTION 6.

ACQUISITIONS

          6.1.             Acquired Company Option Awards.   
  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.

SECTION 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 5 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:

 

	

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
  1 year

  	

25%

  
	

Each
  l year period of continuous service completed thereafter

  	

An
  additional 25%

  
	

After
  4 years

  	

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 instructions, 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. 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.

          Any portion
of an Option that is not exercisable on the date of termination of the
Optionee’s employment or services shall terminate on such date. 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.

SECTION 8.

ASSIGNABILITY

          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).

SECTION 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 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.

SECTION 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 other amounts due from the Optionee to the Company or a
Subsidiary.

SECTION 11.

AMENDMENT AND TERMINATION OF PLAN

          11.1   Amendment of Plan.  The Plan may be amended only by 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 no
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.

SECTION 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
from time to time.

          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 a 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 monies 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   Golden Parachute Taxes.  In the event that any amounts paid or deemed
paid to an employee under this Plan are deemed to constitute “excess parachute
payments” as defined in Section 280G of the Code (taking into account any other
payments made under this Plan and any other compensation paid or deemed paid to
an employee), or if any employee is deemed to receive an “excess parachute
payment” by reason of his or her vesting of Options pursuant to Section 10
hereof, the amount of such payments or deemed payments shall be reduced (or,
alternatively the provisions of Section 10 shall not act to vest options to
such employee), so that no such payments or deemed payments shall constitute
excess parachute payments.  The
determination of whether a payment or deemed payment constitutes an excess
parachute payment shall be in the sole discretion of the Plan Administrator.

          12.7   Foreign Employees.  Without amending the Plan, the Board may
authorize the Plan Administrator to grant options to eligible employees who are
foreign nationals on such terms and conditions different from those specified
in this Plan as may in the judgment of the Board be necessary or desirable to
foster and promote achievement of the purposes of the Plan, and, in furtherance
of such purposes the Board may make such modifications, amendments, procedures,
subplans, and the like as may be necessary or advisable to comply with the
provisions of the laws in other countries in which the Company operates or has
employees.

          12.8    Governing
Law.  This Plan shall be governed by
and construed in accordance with the laws of the State of Washington.

          12.9    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.

SECTION 15.

EFFECTIVE DATE

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

Adopted by the Board on 14 March, 2000 and as amended on
February 20, 2001

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