Document:

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                                                                   EXHIBIT 10.31

                                PROMISSORY NOTE

$__________                                                       ________, 2001
                                                       _____________, Washington

     FOR VALUE RECEIVED, _____________ ("Maker"), promises to pay to
ZymoGenetics, Inc. ("Payee"), the principal sum of _____________ ($________),
together with interest on the principal balance as provided below.

     1.  Payments; Maturity Date.  All outstanding principal shall be payable in
         -----------------------
full on the three-year anniversary of this Note (the "Maturity Date").  Accrued
interest shall be payable annually on each one-year anniversary of this Note
until the Maturity Date.  All payments shall be made by cash or check in
immediately available funds to Payee at its principal executive offices, or at
such other place as Payee may designate to Maker from time to time in writing.
If any payment on this Note is due on a day that is not a Business Day, such
payment shall be due on the next succeeding Business Day.  "Business Day" means
any day other than a Saturday, Sunday or legal holiday in the State of
Washington.  Payments shall first be applied to accrued interest and then to
principal.

     2.  Interest.  Interest shall accrue on the original principal balance at
         --------
the Applicable Federal Rate from the date hereof until the Maturity Date.
Interest shall be calculated on the basis of a 365/366-day year, as applicable,
and charged for the actual number of days elapsed.  All interest payments shall
be nonrefundable and nonprepayable.

     3.  Rights of Maker.  Maker shall be entitled to exercise any and all
         ---------------
voting and other consensual rights pertaining to the Pledged Shares (as defined
below); provided, however, that Maker may not make any sale, assignment or
transfer of any kind or nature of the Pledged Shares or any interest therein
prior to the payment in full of all principal and accrued interest hereunder.
Any purported sale, assignment to transfer prior to payment in full of all
principal and accrued interest hereunder shall be null and void and shall have
no force and effect and Payee shall have no obligation to effect such sale,
assignment or transfer in the stock records of Payee.

     4.  Limited Personal Recourse.  Maker's personal liability for payment of
         -------------------------
the obligations evidenced hereby and under the Pledge and Security Agreement of
even date herewith shall be limited to (a) 50% of the original principal balance
of the Note, (b) 100% of the accrued interest under the Note and (c) costs,
including attorneys' fees, due under the Note (collectively, the "Personal
Liability Amount").  Maker will in no event be personally liable to Payee
hereunder or under the Pledge and Security Agreement for any amount greater than
the Personal Liability Amount.  The fair market value of any Pledged Shares (as
defined below) used to satisfy Maker's payment obligations under the Note and
under the Pledge and Security Agreement shall be credited against Payee's
Personal Liability Amount. The limitation on Maker's personal liability for
payment set forth herein shall not in any way limit Payee's rights under the
pledge provisions of Section 5 hereof.

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     Maker agrees to pay all costs of collection, including reasonable
attorneys' fees (whether incurred at the trial or appellate level, in an
arbitration proceeding, in bankruptcy (including, without limitation, any
adversary proceeding, contested matter or motion) or otherwise) to the extent
provided in the preceding paragraph.

     5.  Pledge.  Maker hereby pledges to Payee, and grants to Payee a security
         ------
interest in, the shares of Common Stock issued pursuant to the terms of the Note
and any security or other property issued or issuable as a dividend or other
distribution with respect to, in exchange for or in replacement of the shares of
Common Stock referenced above and any certificates or other instruments
representing such shares (collectively, the "Pledged Shares").  The Pledged
Shares are security for the prompt payment of all amounts payable under this
Note (without regard to Maker's personal liability therefor).  All certificates
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or instruments representing the Pledged Shares shall be held by Payee together
with a stock power in appropriate form executed in blank by Maker.

     6.  Prepayment.  Principal amounts due under this Note may be prepaid at
         ----------
any time without penalty; provided, however, that interest shall continue to
accrue on the entire principal hereunder (regardless of any prepayment) and to
be payable as provided in Sections 1 and 2 above.  In the event of such
prepayment of principal, Payee shall retain, as security for the payment of all
interest due hereunder, 25% of the Pledged Shares.

     7.  Events of Acceleration of Principal Payments.  The entire unpaid
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principal sum under this Note shall become immediately due and payable if

     (a) Maker's employment, consulting or service relationship with the Company
or a Related Corporation terminates voluntarily or involuntarily for any reason
prior to payment in full of this Note;

     (b) Maker fails to pay when due the principal balance and the continuation
of such default for more than 30 days;

     (c) Maker becomes insolvent, begins an act of bankruptcy, executes a
general assignment for the benefit of creditors, or files a petition in
bankruptcy or a petition for relief (or such petition is filed against Maker)
under the provisions of the federal bankruptcy act or another state or federal
law for the relief of debtors and such petition continues without dismissal for
a period of 90 days or more; or

     (d) Maker breaches any terms of the Pledge and Security Agreement securing
this Note or any obligation secured thereby.

     Interest payments shall continue to accrue on the entire principal
hereunder (regardless of any acceleration of principal payments) and to be
payable as provided in Sections 1 and 2 above.

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     8.  Notices.  All notices required by this Note shall be in writing and
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shall be deemed delivered (a) if delivered personally, when delivered, (b) if
given by U.S. mail (certified and return-receipt requested), five business days
after being mailed, and (c) if given by nationally recognized overnight courier,
when received or personally delivered, addressed as follows:

     if to Maker to:  _________________
                      _________________
                      _________________

     if to Payee to:  ZymoGenetics, Inc.
                      1201 Eastlake Avenue East
                      Seattle, Washington 98102
                      Attention:  _____________

or to such other address as a party may from time to time designate in writing.

     9.  Governing Law.  This Note shall be governed by and construed and
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enforced in accordance with the laws of the State of Washington applicable to
contracts made and to be wholly performed within Washington by persons domiciled
in Washington, without reference to rules governing conflicts of law.

     10. Successors/Assignment.  This Note shall be binding upon Maker and its
         ---------------------
permitted successors and assigns and shall inure to the benefit of Payee and its
successors and assigns.  This Note shall not be assignable by Maker without
Payee's prior written consent.

     IN WITNESS WHEREOF, the undersigned has duly executed this PROMISSORY NOTE
as of the date first above written.

     ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO
FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON
LAW.

                                                ________________________________
                                                Signature

                                                ________________________________
                                                Printed Name

SCHEDULE A

Name                                               Amount
Bruce L.A. Carter                                  $400,000
James A. Johnson                                   $150,000
Patrick J. O'Hara                                  $ 25,000

                                       3<PAGE>

                                                                   EXHIBIT 10.32

                         PLEDGE AND SECURITY AGREEMENT

     This Pledge and Security Agreement (this "Pledge Agreement") is entered
into this ____ day of _________________ by and between ZymoGenetics, Inc., a
Washington corporation (the "Company"), and ________________ ("Purchaser").

                                    RECITALS

     In connection with Purchaser's exercise of an option to purchase shares of
the Company's Common Stock (the "Shares") pursuant to a Stock Option Grant
Notice and Stock Option Agreement dated _______________, _____, and an Early
Exercise Notice and Stock Purchase Agreement dated _______________, _____, (the
"Stock Purchase Agreement") between Purchaser and the Company, Purchaser is
delivering a promissory note of even date herewith (the "Note") in full or
partial payment of the exercise price for the Shares.  The Company requires that
the Note be secured by a pledge of the Shares on the terms set forth below.

                                   AGREEMENT

     In consideration of the Company's acceptance of the Note as full or partial
payment of the exercise price of the Shares, and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
agree as follows:

     1.  Payment Date.  The Note shall become payable in full at the time or
         ------------
times indicated in the Note.

     2.  Delivery of Shares.  Purchaser shall deliver to the Secretary of the
         ------------------
Company, or his or her designee (hereinafter referred to as the "Pledge
Holder"), all certificates representing the Shares, together with an Assignment
Separate From Certificate in the form attached to the Stock Purchase Agreement
as Exhibit C executed by Purchaser and by Purchaser's spouse (if required for
transfer), in blank, for use in transferring all or a portion of the Shares to
the Company if, as and when required pursuant to this Pledge Agreement.  In
addition, if Purchaser is married, Purchaser's spouse shall execute this Pledge
Agreement.

     3.  Grant of Security Interest.  As security for the payment of the Note
         --------------------------
and any renewal, extension or modification of the Note, Purchaser hereby grants
to the Company a security interest in, and pledges to the Company, (a) the
Shares; (b) any new, additional or different securities or other property
subsequently distributed with respect to the Shares that are to be delivered to
and deposited with the Company pursuant to the requirements of this Pledge
Agreement; (c) any and all other property and money that is delivered to or
comes into the possession of the Company pursuant to the terms and provisions of
this Pledge Agreement and the Note; and (d) the proceeds of any sale, exchange
or disposition of the property and securities described in this Paragraph 2
(sometimes referred to herein collectively as the "Collateral").

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     4.  Warranties.  Purchaser hereby warrants that Purchaser is the owner of
         ----------
the Collateral and has the right to pledge the Collateral and that the
Collateral is free from all liens, claims, encumbrances and other security
interests (other than those created hereby).

     5.  Sale or Repurchase of Shares.  In the event of any foreclosure of the
         ----------------------------
security interest created by this Pledge Agreement, the Company may sell the
Shares at a private sale or may repurchase the Shares itself.  The parties agree
that, prior to the establishment of a public market for the Shares of the
Company, the securities laws affecting sale of the Shares make a public sale of
the Shares commercially unreasonable.  The parties further agree that the
repurchase of such Shares by the Company, or by any person to whom the Company
may have assigned its rights under this Pledge Agreement, is commercially
reasonable if made at a price determined by the Company's Board of Directors in
its discretion, fairly exercised, representing what would be the Fair Market
Value of the Shares reduced by any limitation on transferability, whether due to
the size of the block of shares or the restrictions of applicable securities
laws.

     6.  Rights Upon Default.  In the event of default in payment when due of
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any indebtedness under the Note, the Company may elect then, or at any time
thereafter, to exercise all rights available to a secured party under the
Washington Commercial Code, including the right to sell the Collateral at a
private or public sale or repurchase the Shares as provided above.  The proceeds
of any sale shall be applied in the following order:

         (a)  To the extent necessary, proceeds shall be used to pay all
reasonable expenses of the Company in enforcing this Pledge Agreement and the
Note, including, without limitation, reasonable attorneys' fees and legal
expenses incurred by the Company.

         (b)  To the extent necessary, proceeds shall be used to satisfy any
remaining indebtedness under the Note.

         (c)  Any remaining proceeds shall be delivered to Purchaser.

     7.  Release of Collateral.  Promptly after full payment by Purchaser of all
         ---------------------
principal, accrued interest and other amounts outstanding under the Note, Pledge
Holder shall deliver to Purchaser all Shares in Pledge Holder's possession
belonging to Purchaser, and Pledge Holder shall thereupon be discharged of all
further obligations under this Pledge Agreement; provided, however, that Pledge
Holder shall nevertheless retain the Shares as escrow agent if at the time of
full payment by Purchaser said Shares are still subject to a Repurchase Right
for Unvested Shares (as defined in Purchaser's Early Exercise Notice and Stock
Purchase Agreement) in favor of the Company.

     8.  Duty to Deliver.  Any new, additional or different securities that may
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now or hereafter become distributable with respect to the Collateral by reason
of (a) any stock dividend, stock split or reclassification of the capital stock
of the Company or (b) any merger, consolidation or other reorganization
affecting the capital structure of the Company

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shall be promptly delivered to and deposited with the Company as part of the
Collateral hereunder. Such securities shall be accompanied by one or more stock
power assignments executed by Purchaser and by Purchaser's spouse (if required
for transfer), in blank.

     9.   Payment of Taxes and Other Charges.  Purchaser shall pay, prior to the
          ----------------------------------
delinquency date, all taxes, liens, assessments and other charges against the
Collateral, and in the event of the Purchaser's failure to do so, the Company
may at its election pay any or all of such taxes and charges without contesting
the validity or legality thereof.  Any payments so made by the Company shall
become part of the indebtedness secured hereunder and until paid shall bear
interest at the minimum per annum rate, compounded annually, required to avoid
the imputation of interest income to the Company and compensation income to
Purchaser under the federal tax laws.

     10.  Transfer of Collateral.  In connection with the transfer or assignment
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of the Note (whether by negotiation, discount or otherwise), the Company may
transfer all or any part of the Collateral, and the transferee shall thereupon
succeed to all the rights, powers and remedies granted the Company hereunder
with respect to the Collateral so transferred.  Upon such transfer, the Company
shall be fully discharged from all liability and responsibility for the
transferred Collateral.

     11.  Costs and Expenses.  All costs and expenses (including reasonable
          ------------------
attorneys' fees) incurred by the Company in the exercise or enforcement of any
right, power or remedy granted it under this Pledge Agreement shall become part
of the indebtedness secured hereunder and shall constitute a personal liability
of Purchaser payable immediately upon demand and bearing interest until paid at
the Company's bank interest rate then being earned by the Company on its
deposits.

     12.  Severability.  Any provision of this Pledge Agreement that is deemed
          ------------
invalid or unenforceable shall be ineffective to the extent of such invalidity
or unenforceability, without rendering invalid or unenforceable the remaining
provisions of this Pledge Agreement.

     13.  Waiver.  No provision of this Pledge Agreement shall be deemed to have
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been waived unless such waiver is in writing signed by the waiving party.  No
failure by any party to insist upon the strict performance of any provision of
this Pledge Agreement, or to exercise any right or remedy consequent upon a
breach thereof, shall constitute a waiver of any such breach, of such provision
or of any other provision.  No waiver of any provision of this Pledge Agreement
shall be deemed a waiver of any other provision of this Pledge Agreement or a
waiver of such provision with respect to any subsequent breach, unless expressly
provided in writing.

     14.  Counterparts.  This Pledge Agreement may be executed in any number of
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counterparts, all of which when taken together shall constitute one agreement
binding on all parties, notwithstanding that all parties are not signatories to
the same counterpart.  This Pledge Agreement may be executed with signatures
transmitted among the parties by facsimile, and no party shall deny the validity
of a signature or this Pledge Agreement signed and transmitted by facsimile on
the ground that a signature is represented by facsimile rather than an original.

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     15.  Further Assurances.  Each party agrees, at the request of the other
          ------------------
party, at any time and from time to time after the date hereof, promptly to
execute and deliver all such further documents, and promptly to take and forbear
from all such action, as may be reasonably necessary or appropriate in order
more effectively to confirm or carry out the provisions of this Pledge
Agreement.

     The parties have executed this Pledge Agreement as of the date first set
forth above.

                                            ZYMOGENETICS, INC.

                                            By: ______________________________
                                            Title: ___________________________

                                            PURCHASER

                                            __________________________________
                                            Printed Name: ____________________

By his or her signature below, the spouse of Purchaser, if such Purchaser is
legally married as of the date of Purchaser's execution of this Agreement,
acknowledges that he or she has read this Agreement and is familiar with the
terms and provisions of this Agreement, and agrees to be bound by all the terms
and conditions of this Agreement.

                                            Dated: ___________________________

                                            __________________________________
                                            Spouse's Signature

                                            __________________________________
                                            Printed Name

By his or her signature below, Purchaser represents that he or she is not
legally married as of the date of executing this Agreement.

                                            Dated: ___________________________

                                            __________________________________
                                            Purchaser's Signature

SCHEDULE A

Name
James A. Johnson
Patrick J. O'Hara

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