|[A
REQUEST FOR CONFIDENTIALITY HAS BEEN MADE.  THE INFORMATION DENOTED BY [REDACTED] HAS
BEEN OMITTED.]



MICROSOFT CORPORATION
AMENDMENT OF AUTHORIZED SOURCE AGREEMENT


Reference
is made to the Authorized Source Agreement made and entered into effective as of
July 1, 2000 (the Original Agreement), by and between MULTIPLE
ZONES INTERNATIONAL, INC., (the name of which is now ZONES, INC.) with offices at 707
South Grady Way, Renton, Washington 98055-3233, a Washington corporation (MZI
or Zones) and MICROSOFT CORPORATION, with offices at One Microsoft Way,
Redmond, Washington 98052-6399, a Washington corporation (Microsoft), for and
on behalf of itself and Related Parties as therein allowed.


Terms
which are defined in the Original Agreement shall have the same meaning in this Amendment
unless otherwise defined herein. The term Agreement as herein used
refers to  Original Agreement  as hereby amended, such amendments to be effective as
of January 1, 2002 (the Effective Date) except where another date is
specified; provided, however, that Microsoft hereby agrees that Zones has been and
continues to be in compliance with these amended terms since the Effective Date and
Microsoft agrees that it has no claim against Zones for noncompliance with these amended
terms since the Effective Date.



RECITALS


Whereas,
Microsoft now utilizes a direct order model for a large portion of its equipment purchases
from certain Original Equipment Manufacturers and others as may hereafter be in place from
time to time (OEMs);


Whereas,
the duties required of Zones as to such direct order Goods and Services should be updated
and reasonable distinctions should be established to identify which Goods and Services
are direct order and which are actually through Zones as a non-exclusive source;
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Whereas,
these substantial changes also require a restated compensation and payment arrangement as
well as other changes; and


Whereas,
Zones and Microsoft mutually accept and agree upon the changes of the above-referenced
agreement to be as stated in this Amendment and the Exhibits and Attachments hereto.



AGREEMENT


NOW,
THEREFORE, the parties amend the  Original Agreement in these respects:


1.           Business
Terms and Compensation Change; Transition Compensation. The           compensation
payable  under the Original Agreement was modified by mutual           agreement of the
parties. Zones acknowledges and agrees that it has been           paid  in full for Goods
andServices provided           under the Agreement up to April 1, 2002.


Further,
effective January 1, 2002, the performance compensation and effort and success
compensation, described respectively at subparts (iii) and (iv) of Section 6(c), no
longer apply and those provisions are deleted from the Agreement.


Beginning
on the Effective Date,and thereafter while the Agreement is in effect, Section
6(d) of the Original Agreement is renumbered as Section 6(e), and Sections 6(b) and (c)
of the Original Agreement are amended in their entirety to read as follows, including a
new subsection (d), (which shall be the soles basis for Zones compensation
and expense reimbursement under the Agreement):


(b)           Business
Terms. No invoice shall be submitted to Microsoft for any Goods           acquired
through Zones until Zones has in its possession the requisite signed
          Confirmation of Receipt. The invoice charge shall conform to the applicable
          agreed upon mark-up to Cost, in the case of Goods acquired through Zones,
stated           in subsection (d) of this Section 6.


The
following provisions also apply:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i)   Payment
        Terms. Upon receipt of a correct and undisputed invoice from Zones,
        Microsoft shall pay such invoice on either of the following payment terms:
        (i) net [REDACTED] on the invoiced amount.


      (ii)     MS
        Invoice. Zones shall invoice Microsoft for all amounts due under this
        Agreement via the MS Invoice online tool, in accordance with the then-current
        requirements set forth at http://invoice.microsoft.com. Without limitation,
        Zones invoices shall set forth all amounts due from Microsoft to
        Zones, and shall contain sufficient detail to allow Microsoft to determine
        the accuracy of the amount(s) billed. All invoices shall be expressed
        and payable in U.S. dollars.


      (iii)      Payment
        Method. Payments by Microsoft shall be made according to Microsofts
        then-current payment policies, which may include payment via ACH electronic
        payment to Zones financial institution pursuant to instructions
        supplied to Microsoft by Zones in Microsofts ACH Electronic Payment
        form.


      (iv)     Disputed
        Amounts. Microsoft shall dispute any payable amount by notice to Zones
        orally or in writing within [REDACTED] Microsofts receipt of the
        invoice, which claim of dispute may concern not only the accuracy of the
        charge itself, but also any claim of deficient services or performance,
        or any other claim of breach of this Agreement that relates to the specific
        charges in the invoice. Any partial payment of an invoice shall be deemed
        notice by Microsoft of the disputed amount. All disputed amounts that
        Microsoft subsequently agrees in writing to pay, or that are required
        to be paid pursuant to a proper court order or award from any mutually
        submitted arbitration, shall be paid on the payment terms set forth in
        subsection (a) above. Payment of an invoice without asserting
        a dispute is not a waiver of any claim or right. Failure by Microsoft
        to dispute any invoiced amount within the periods set forth above shall
        not be deemed a waiver of any claims that were unknown to Microsoft at
        the time.


(c)                 Expense
Reimbursement. To defray Zones costs and expenses to provide the
          Services, Microsoft agrees to pay, subject to the payment terms stated at
          subsection (b) of this Section 6, and consistent with Exhibit C,
          upon a properly submitted electronic invoice, an expense reimbursement charge
          each month consisting of:

***[REDACTED]-Confidential treatment
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|(ii)
          [REDACTED]


(i)
          [REDACTED]



(ii)
[REDACTED]


(d)
        Price
Margins. For Goods acquired by purchase from Zones (which does not include           the
Direct Order Goods) Zones shall charge prices calculated as Cost plus the
          relevant agreed margin of price mark-up stated below, payable subject to the
          payment terms described above at subsection (b) of this
          Section 6. The agreed price margins chargeable above Cost for Goods
          acquired by purchase from Zones are as stated on Exhibit C-3.


The
Exhibit C-3 price mark-up, as to Goods acquired through Zones, together with the limited
expense reimbursement stated in subsection (c) of this Section 6, are the only
compensation due to Zones in relation to all the Services, Handling Services, Recycle
Delivery and other Zones performance obligations required under this Agreement. A Pricing
Exhibit to reflect additional details as to pricing is attached to this Agreement as
Exhibit C-3.


2.                 Revised
Definition. The definition of Cost is revised to be as           follows:


Costwhen
used in relation to Goods which are Microsoft Standards, shall mean the actual, true,
direct cost paid by Zones, without duplication, for the Goods purchased after any
applicable rebates or discounts, without any markup, fee or administrative cost or
burden, [REDACTED].


When
used in relation to Goods which are not Microsoft Standards, the term Costmeans
[REDACTED].


If,
during a calendar quarter, as to items of Goods which are not Microsoft Standards, more
than [REDACTED] of the number of one or more of the items (or all items collectively)
ordered during the quarter is fulfilled from a Zones distribution center, such as Ohio, or
otherwise from Zones inventory, the parties shall reassess the definition of Cost as to
such items or all of the items which are Goods which are not Microsoft Standards, as the
case may be, and the mutually agreed upon changes shall be effective for the succeeding
quarter and thereafter.

***[REDACTED]-Confidential treatment
requested***
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|3. New
Definitions. These defined terms are added:


      Direct
        Order Goods shall mean those Goods which Microsoft or its Related
        Parties order directly from an OEM initially including Dell, Compaq and
        Toshiba, but also including other OEMs hereafter named by Microsoft.
        Zones duties as to Direct Order Goods shall consist solely of the
        Services described at Section 3(m)


Handling
Services shall mean Zones duties as to Direct Order Goods as described at
Section 3(m).


Recycle
Delivery shall mean Zones duties upon request of Microsoft employees to pick
up and deliver, or hold for delivery, used equipment to be processed by Redemtech, Inc.,
or a succeeding vendor of this service under agreement with Microsoft.


4.
Handling
Services. The following subparagraph is added to the Agreement as           Section 3(m).


(1)                 Handling
Services. Zones duties as to Direct Order Goods, in each instance           in
conformance with the Statements of Work applicable Direct Order Goods           (Exhibits
A and B hereto as applicable) shall consist of receipt of the Direct           Order
Goods on behalf of Microsoft, inspections for damage to the extent           indicated
without opening or unpacking the package, opening packages with           visible damage
and testing as specified in the Statement of Work, delivery to           the pertinent
Microsoft location or employee and obtaining upon such delivery a           Confirmation
of Receipt, and such other duties as are stated in such Exhibits A           and B, as
applicable. Zones is accountable for such Direct Order Goods as a           handler or
custodian while the Direct Order Goods are in its possession, but           Zones does
not purchase or sell the same. The Handling Services are described in           further
detail in the Statement of Work attached to this Agreement as Exhibits A           and B,
as applicable.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|As
the Direct Order Goods Statement of Work was not finished and accepted by the Effective
Date of this Amendment, which is January 1, 2002, the parties have worked on such
Direct Order Goods Statement of Work cooperatively and in good faith and the same is now
complete and attached hereto as Exhibits A and B, as applicable. In the meantime,
effective January 1, 2002, Handling Services have been provided on the basis of the
provisions which are now reflected in the Exhibits of this Agreement.


5.                 Recycle
Delivery. The following paragraph is added to the Agreement as section 3           (n).


(n)
          Recycle Delivery. Zones, upon receipt of Microsoft employees consistent with
          authorization limits or other instructions Microsoft provides from time to
time,           shall pick up used equipment from Microsoft locations and transport it to
the           On-Site Facility, and then turn it over to Redemtech, Inc., or such other
          succeeding recycle vendor as Microsoft may designate. Zones is accountable for
          this for this equipment as a handler and not as a purchaser or disposition
          vendor.


Exhibit
E of this Agreement deals with the detailed services of the Recycle Delivery in greater
detail.


6.
         Revised Statement of Work. The revised Statement of Work as to Goods acquired
          through Zones (not including Direct Order Goods) is attached to this Amendment
          as Exhibit B and replaces the corresponding Statement of Work heretofore in
          effect. As such revised Statement of Work wasnt finalized and agreed upon
          by the Effective Date of this Amendment, which is January 1, 2002, the
          parties have worked on such revised Statement of Work cooperatively and in good
          faith and the same is now complete and attached hereto as Exhibit B. In the
          meantime, effective January 1, 2002, such Services have been provided on
          the basis of the provisions which are now reflected in the Exhibits of this
          Agreement.


      7.Risk of Loss.


(a)
          Title and risk of loss for all Goods purchased by Zones for subsequent delivery
          to Microsoft shall remain with Zones until the sale of such Goods occurs.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b)
          The risk of loss for Direct Order Goods shall be with Zones for the period
          during which the Direct Order Goods are within its possession and control
except           for items missing from unopened boxes, which includes the period of its
          possession and control at the On-Site Facility located at [REDACTED].


(c)
Zones
agrees to take reasonable precautions to protect, and shall have an           maintain
property insurance for, the Goods in its inventory and the Direct Order           Goods
under its custody and control from loss, damage, theft or disappearance           while
in its care, custody and control. Zones responsibility for loss or           damage
shall be as follows:


(i)
         [REDACTED] of loss or damage for loss resulting from theft, or the negligent or
          willful acts of any Zones employees or subcontractors;


(ii)
          [REDACTED] of loss or damage from any other cause (except for the loss or
damage           caused by acts of terrorism, Microsoft and/or its subcontractors or
applicable           deductibles resulting from floods and other acts of god). Microsoft
shall           provide assistance to Zones as needed to support insurance claims under
          applicable insurance policies;


(iii)
          as to Direct Order Goods, Zones responsibility is limited to the period
of           its care, custody and control and it is not responsible for damage occurring
          prior to or after the earlier of (A) such time of possession or (B) until sale
          and the parties shall resolve in good faith any uncertainty as to the time of
          damage, if any;


(d)
          [REDACTED]


8.
          Miscellaneous Further Provisions.


(a)
          The time for payment of disputed amounts after resolution, at Section 7(d),
          is changed to be [REDACTED], to conform to the payment terms above in this
          Amendment.


(b)
          Provisions of the Agreement pertinent to other forms of insurance (not covering
          Goods) apply as to Zones entire performance of the Agreement and risk of
          loss provisions as to Goods acquired through Zones apply as before.

***[REDACTED]-Confidential treatment
requested***
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c)
          Exhibit D, Performance Metrics, is revised and amended to be the Exhibit D
          as attached to this Amendment, and thereby replaces the corresponding
          Exhibit D heretofore in effect.


(d)
          The Agreements provisions remain in effect except as amended or replaced
          in this Amendment, and unless precluded by the context thereof, apply as to
          Zones entire performance of the Agreement.


(e)
          The following Exhibits attached to this Agreement replace and supersede prior
          Exhibits of the Agreement as to the subject matter of each Exhibit attached
          hereto:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | A | Statement of Work-Receiving,
      Delivering, Warehousing, Recycles, Returns
| |  | - | -----------------------------------------------------------------------------

| |  | B | Statement
      of Work-Customer Service, Order Processing, Configuration, Asset Tagging,
      Invoicing, Returns, Replacements, Procurement Process
| |  | - | -----------------------------------------------------------------------------------------------------------------------------------------------------

| |  | C-l | Employee
Count and Costs
| |  | --- | ------------------------

| |  | C-2 | Cost
Summary
| |  | --- | ------------

| |  | C-3 | Product
Pricing Definitions and Allowed Margins
| |  | --- | -----------------------------------------------

| |  | C-4 | Additional
Expense Itemization
| |  | --- | ------------------------------

| |  | D | Performance
Standards and Key Performance Indicators (Part 1)
| |  | - | -------------------------------------------------------------

| |  | E | Zones
Inc. PC Recycle Process Including PC Recycle Sweeps
| |  | - | ---------------------------------------------------------

| |  | F | Zones
Inc. Shipping Process-Driver and STS 1.8
| |  | - | ----------------------------------------------

|IN
WITNESS WHEREOF, the parties execute this Amendment of Authorized Source Agreement to be
effective January 1, 2002.
|----------------------------------------------------------------------------------------------------------------------

|
|

|MICROSOFT CORPORATION
      /s/ JOHN CONNORS |  | ZONES,
      INC./s/ FIROZ LALJI
|-------------------------------------------- |  | --------------------------------

|By
      Name: John Connors
      Title: Senior VP Finance & Administration
      Date: August 26, 2002 |  | By
      Name: Firoz Lalji
      Title: President and Chief Executive Officer
      Date: June 25, 2002
|------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------

|EXHIBIT C-1EMPLOYEE COUNT
AND COSTS



[REDACTED]



EXHIBIT C-2 COST SUMMARY



[REDACTED]



EXHIBIT C-3 PRODUCT PRICING
DEFINITIONS AND ALLOWED MARGINS



Standard Peripherals
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Microsoft
Standard Peripheral Product (all peripheral products as currently listed on MS Market)
| | - | ------------------------------------------------------------------------------------------------

| |  | This
is to exclude any and all product from DELL, COMPAQ, TOSHIBA and HP.
| | - | -------------------------------------------------------------------------

| |  | Profit
margin not to [REDACTED]
| | - | -------------------------------

|Non-Standard Peripherals
|------------------------

| |  | Non-standard
(peripheral products not currently listed on MS Market) from Microsoft CORE VENDORS*
| | - | -------------------------------------------------------------------------------------------------

| |  | Profit
margin not to [REDACTED]
| | - | -------------------------------

|***[REDACTED]-Confidential treatment
requested***
|-------------------------------------------------

|Special Orders /
One-offs
|---------------------------

| |  | Non-standard
(peripheral products not currently listed on MS Market) and supplied or manufactured by a
non-core vendor
| | - | ----------------------------------------------------------------------------------------------------------------------

| |  | Profit
margin range shall be [REDACTED]. This is not to exceed [REDACTED] margin on a monthly
basis.
| | - | ----------------------------------------------------------------------------------------------------

|Non-Standard OEM Products
|-------------------------

| |  | ALL
Non-Standard Dell, Compaq, Toshiba, and Hewlett Packard Products
| | - | --------------------------------------------------------------------

| |  | Profit
margin not to [REDACTED]
| | - | -------------------------------

|* CORE VENDOR is any Company
who currently has product listed on MS Market or identified on the Vendor Master List as
provided by Microsoft.


Profit Margin is determined by a
percentage of allowed margin on the cost per item.


EXHIBIT C-4


ADDITIONAL EXPENSE
ITEMS



[REDACTED]



EXHIBIT D


PERFORMANCE STANDARDS
AND KEY PERFORMANCE INDICATORS (PART1)


Performance Standards
and Key Performance Indicators (Part 1)


The following tables indicate which
Key Performance Indicators (KPIs) are required to be reported in the Dashboard
reporting format as described within this exhibit, the frequency of reporting, and
contractual performance standards related to the respective metric.



[REDACTED]

***[REDACTED]-Confidential treatment
requested***
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|Performance Standards
and Key Performance Indicators (Part 2)



Company Dashboard
|----------------------------------------------------------------------------------

|                                 |  | Week 1 |  | Week 2 |  | Week 3 |  | Week 4 |  | Month
      Final
|-------------------------------- |  | ------ |  | ------ |  | ------ |  | ------ |  | -----------------
|Total
      Revenue Run Rate     |  |        |  |        |  |        |  |        |  |                  
|Overall
      Fill Rate          | 
|Standard
      - [REDACTED]      |  |        |  |        |  |        |  |        |  |                  
|Non
      Stand - [REDACTED]     |  |        |  |        |  |        |  |        |  |                  
|Expedite
      - [REDACTED]      |  |        |  |        |  |        |  |        |  |                  
|SLA
      Performance            | 
|Returns                          | 
|Returns
      $                  |  |        |  |        |  |        |  |        |  |                  
|Returns
      %                  |  |        |  |        |  |        |  |        |  |                  
|Defective
      Product on Hand  |  |        |  |        |  |        |  |        |  |                  
|Restock
      Fees $             |  |        |  |        |  |        |  |        |  |                  
|Restock
      Fees %             |  |        |  |        |  |        |  |        |  |                  
|Customer
      Service           | 
|PC
      Quote [REDACTED]        |  |        |  |        |  |        |  |        |  |                  
|same
      med. As rec'd         |  |        |  |        |  |        |  |        |  |                  
|Phone
        Queue              |  |        |  |        |  |        |  |        |  |                  
|[REDACTED]                       |  |        |  |        |  |        |  |        |  |                  
|PC
      Expedite Box            |  |        |  |        |  |        |  |        |  |                  
|[REDACTED]                       | 
|Purchasing                       | 
|Backorders
      $               |  |        |  |        |  |        |  |        |  |                  
|Turns                            |  |        |  |        |  |        |  |        |  |                  
|PO
      % past due              |  |        |  |        |  |        |  |        |  |                  
|Standards
      Stock            |  |        |  |        |  |        |  |        |  |                  
|Availability                     |  |        |  |        |  |        |  |        |  |                  
|Accurate
      ETA's             |  |        |  |        |  |        |  |        |  |                  
|Standards
      pricing accuracy |  |        |  |        |  |        |  |        |  |                  
|Warehouse                        | 
|On-Time
      Delivery           |  |        |  |        |  |        |  |        |  |                  
|Same
      Day OP                |  |        |  |        |  |        |  |        |  |                  
|Delivery
      Accuracy          |  |        |  |        |  |        |  |        |  |                  
|Same
      Day Config            |  |        |  |        |  |        |  |        |  |                  
|POD
      recovery               |  |        |  |        |  |        |  |        |  |                  
|[REDACTED]                       |  |        |  |        |  |        |  |        |  |                  

|* Does not
include Zero stock items due lack of run rates



Reporting Requirements



[REDACTED]

***[REDACTED]-Confidential treatment
requested***
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