Document:

ZONES,
        INC.

        STOCK
        OPTION AGREEMENT

      
	 
	             Zones,
      Inc. has granted to the individual (the “Optionee”)
      named in the Notice of Grant of Stock Option (the “Notice”)
      to which this Stock Option Agreement (the “Option Agreement”)
      is attached an option (the “Option”) to purchase
      certain shares of Stock upon the terms and conditions set forth in the Notice
      and this Option Agreement. The Option has been granted pursuant to and shall
      in all respects be subject to the terms and conditions of the Zones, Inc.
      2003 Equity Incentive Plan (the “Plan”), as amended
      to the Date of Option Grant, the provisions of which are incorporated herein
      by reference. By signing the Notice, the Optionee: (a) represents that
      the Optionee has received copies of, and has read and is familiar with the
      terms and conditions of, the Notice, the Plan and this Option Agreement,
      (b) accepts the Option subject to all of the terms and conditions of
      the Notice, the Plan and this Option Agreement, and (c) agrees to accept
      as binding, conclusive and final all decisions or interpretations of the
      Board upon any questions arising under the Notice, the Plan or this Option
      Agreement. 
	 
	 1.         DEFINITIONS
        AND CONSTRUCTION.

	 
	1.1        
        Definitions.  Unless otherwise defined herein,
        capitalized terms shall have the meanings assigned to such terms in the
        Notice or the Plan. 

	 
	1.2
                Construction.
         Captions and titles contained herein are for convenience only and
        shall not affect the meaning or interpretation of any provision of this
        Option Agreement. Except when otherwise indicated by the context, the
        singular shall include the plural and the plural shall include the singular.
        Use of the term “or” is not intended to be exclusive, unless
        the context clearly requires otherwise. 

	 
	2.
                 
        TAX CONSEQUENCES.

	 
	2.1
                Tax
        Status of Option.  This Option is intended to have the tax
        status designated in the Notice

	 
	(a)        
        Incentive Stock Option.  If the Notice so designates,
        this Option is intended to be an Incentive Stock Option within the meaning
        of Section 422(b) of the Code, but the Company does not represent
        or warrant that this Option qualifies as such. The Optionee should consult
        with the Optionee’s own tax advisor regarding the tax effects of
        this Option and the requirements necessary to obtain favorable income
        tax treatment under Section 422 of the Code, including, but not limited
        to, holding period requirements. (NOTE TO OPTIONEE: If the Option is exercised
        more than three (3) months after the date on which you cease to be an
        Employee (other than by reason of your death or permanent and total disability
        as defined in Section 22(e)(3) of the Code), the Option will be treated
        as a Nonstatutory Stock Option and not as an Incentive Stock Option to
        the extent required by Section 422 of the Code.) 

	 
	(b)        Nonstatutory
        Stock Option.  If the Notice so designates, this Option
        is intended to be a Nonstatutory Stock Option and shall not be treated
        as an Incentive Stock Option within the meaning of Section 422(b)
        of the Code. 

	 
	 

      
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	2.2
        
                ISO
        Fair Market Value Limitation.  If the Notice designates
        this Option as an Incentive Stock Option, then to the extent that
        the Option (together with all Incentive Stock Options granted to the Optionee
        under all stock option plans of the Participating Company Group, including
        the Plan) becomes exercisable for the first time during any calendar year
        for shares having a Fair Market Value greater than One Hundred Thousand
        Dollars ($100,000), the portion of such options which exceeds such amount
        will be treated as Nonstatutory Stock Options. For purposes of this Section 2.2,
        options designated as Incentive Stock Options are taken into account in
        the order in which they were granted, and the Fair Market Value of stock
        is determined as of the time the option with respect to such stock is
        granted. If the Code is amended to provide for a different limitation
        from that set forth in this Section 2.2, such different limitation
        shall be deemed incorporated herein effective as of the date required
        or permitted by such amendment to the Code. If the Option is treated as
        an Incentive Stock Option in part and as a Nonstatutory Stock Option in
        part by reason of the limitation set forth in this Section 2.2, the
        Optionee may designate which portion of such Option the Optionee is exercising.
        In the absence of such designation, the Optionee shall be deemed to have
        exercised the Incentive Stock Option portion of the Option first. Separate
        certificates representing each such portion shall be issued upon the exercise
        of the Option. (NOTE TO OPTIONEE: If the aggregate Exercise Price of the
        Option (that is, the Exercise Price multiplied by the Number of Option
        Shares) plus the aggregate exercise price of any other Incentive Stock
        Options you hold (whether granted pursuant to the Plan or any other stock
        option plan of the Participating Company Group) is greater than $100,000,
        you should contact the Chief Financial Officer of the Company to ascertain
        whether the entire Option qualifies as an Incentive Stock Option.) 

	 
	3.
                  ADMINISTRATION.
        

	 
	             All
      questions of interpretation concerning this Option Agreement shall be determined
      by the Board. All determinations by the Board shall be final and binding
      upon all persons having an interest in the Option. Any Officer shall have
      the authority to act on behalf of the Company with respect to any matter,
      right, obligation, or election which is the responsibility of or which is
      allocated to the Company herein, provided the Officer has apparent authority
      with respect to such matter, right, obligation, or election. 
	 
	4.         
        EXERCISE OF THE OPTION. 

	 
	4.1        Right
        to Exercise.  Except as otherwise provided herein,
        the Option shall be exercisable on and after the Date of Option Grant
        and prior to the termination of the Option (as provided in Section 6)
        in an amount not to exceed the number of Vested Shares less the number
        of shares previously acquired upon exercise of the Option. In no event
        shall the Option be exercisable for more shares than the Number of Option
        Shares. 

	 
	4.2        
        Method of Exercise.  Exercise of the Option
        shall be by written notice to the Company which must state the election
        to exercise the Option, the number of whole shares of Stock for which
        the Option is being exercised and such other representations and agreements
        as to the Optionee’s investment intent with respect to such shares
        as may be required pursuant to the provisions of this Option Agreement.
        The written notice must be signed by the Optionee and must be delivered
        in person, by certified or registered mail, return receipt requested,
        by confirmed facsimile transmission, or by such other means as the Company
        may permit, to the Chief Financial Officer of the Company, or other authorized
        representative of the Participating Company Group, prior to the termination
        of the Option as set forth in Section 6, accompanied by full payment
        of the aggregate Exercise Price for the number of shares of Stock being
        purchased. The Option shall be deemed to be exercised upon receipt by
        the Company of such written notice and the aggregate Exercise Price. 

	 

      
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	4.3        
        Payment of Exercise Price. 

	 
	(a)        Forms
        of Consideration Authorized.  Except as otherwise provided
        below, payment of the aggregate Exercise Price for the number of shares
        of Stock for which the Option is being exercised shall be made (i) in
        cash, by check, or cash equivalent, (ii) by tender to the Company,
        or attestation to the ownership, of whole shares of Stock owned by the
        Optionee having a Fair Market Value not less than the aggregate Exercise
        Price, (iii) by means of a Cashless Exercise, as defined in Section 4.3(b),
        or (iv) by any combination of the foregoing. 

	 
	(b)        Limitations
        on Forms of Consideration. 

	 
	(i)              Tender
        of Stock.  Notwithstanding the foregoing, the Option may
        not be exercised by tender to the Company, or attestation to the ownership,
        of shares of Stock to the extent such tender or attestation would constitute
        a violation of the provisions of any law, regulation or agreement restricting
        the redemption of the Company’s stock. The Option may not be exercised
        by tender to the Company, or attestation to the ownership, of shares of
        Stock unless such shares either have been owned by the Optionee for more
        than six (6) months (and not used for another option exercise by attestation
        during such period). The Company reserves, at any and all times, the right,
        in the Company’s sole and absolute discretion, to refuse to allow
        the exercise by tender to the Company, or attestation to the ownership,
        of shares of Stock. 

	 
	(ii)            Cashless
        Exercise.  A “Cashless Exercise”
        means the delivery of a properly executed notice together with irrevocable
        instructions to a broker in a form acceptable to the Company providing
        for the assignment to the Company of the proceeds of a sale or loan with
        respect to some or all of the shares of Stock acquired upon the exercise
        of the Option pursuant to a program or procedure approved by the Company
        (including, without limitation, through an exercise complying with the
        provisions of Regulation T as promulgated from time to time by the
        Board of Governors of the Federal Reserve System). The Company reserves,
        at any and all times, the right, in the Company’s sole and absolute
        discretion, to decline to approve or terminate any such program or procedure.
        Cashless exercise shall not be permitted if the exercise by means of a
        Cashless Exercise would be a violation of any law, including Sarbanes-Oxley
        Act of 2002, which prohibits public companies from making personal loans
        to any director or executive officer. 

	 
	4.4        Tax
        Withholding.  At the time the Option is exercised,
        in whole or in part, or at any time thereafter as requested by the Company,
        the Optionee hereby authorizes withholding from payroll and any other
        amounts payable to the Optionee, and otherwise agrees to make adequate
        provision for (including by means of a Cashless Exercise to the extent
        permitted by the Company), any sums required to satisfy the federal, state,
        local and foreign tax withholding obligations of the Participating Company
        Group, if any, which arise in connection with the Option, including, without
        limitation, obligations arising upon (i) the exercise, in whole or
        in part, of the Option, (ii) the transfer, in whole or in part, of
        any shares acquired upon exercise of the Option, (iii) the operation
        of any law or regulation providing for the imputation of interest, or
        (iv) the lapsing of any restriction with respect to any shares acquired
        upon exercise of the Option. The Option is not exercisable unless the
        tax withholding obligations of the Participating Company Group are satisfied.
        Accordingly, the Company shall have no obligation to deliver shares of
        Stock until the tax withholding obligations of the Participating Company
        Group have been satisfied by the Optionee. 

	 

      
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	4.5        Certificate
        Registration.   Except in the event the Exercise
        Price is paid by means of a Cashless Exercise, the certificate for the
        shares as to which the Option is exercised shall be registered in the
        name of the Optionee, or, if applicable, in the names of the heirs of
        the Optionee. 

	 
	4.6        
        Restrictions on Grant of the Option and Issuance of Shares.  
        The grant of the Option and the issuance of shares of Stock upon exercise
        of the Option shall be subject to compliance with all applicable requirements
        of federal, state or foreign law with respect to such securities. The
        Option may not be exercised if the issuance of shares of Stock upon exercise
        would constitute a violation of any applicable federal, state or foreign
        securities laws or other law or regulations or the requirements of any
        stock exchange or market system upon which the Stock may then be listed.
        In addition, the Option may not be exercised unless (i) a registration
        statement under the Securities Act shall at the time of exercise of the
        Option be in effect with respect to the shares issuable upon exercise
        of the Option or (ii) in the opinion of legal counsel to the Company,
        the shares issuable upon exercise of the Option may be issued in accordance
        with the terms of an applicable exemption from the registration requirements
        of the Securities Act. THE OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT
        BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY,
        THE OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN
        THOUGH THE OPTION IS VESTED. The inability of the Company to obtain from
        any regulatory body having jurisdiction the authority, if any, deemed
        by the Company’s legal counsel to be necessary to the lawful issuance
        and sale of any shares subject to the Option shall relieve the Company
        of any liability in respect of the failure to issue or sell such shares
        as to which such requisite authority shall not have been obtained. As
        a condition to the exercise of the Option, the Company may require the
        Optionee to satisfy any qualifications that may be necessary or appropriate,
        to evidence compliance with any applicable law or regulation and to make
        any representation or warranty with respect thereto as may be requested
        by the Company. 

	 
	4.7        
        Fractional
        Shares.  The Company shall not be required to issue
        fractional shares upon the exercise of the Option.

	 
	5.         
        NONTRANSFERABILITY OF THE OPTION.

	 
	             The
      Option may be exercised during the lifetime of the Optionee only by the
      Optionee or the Optionee’s guardian or legal representative and may
      not be assigned or transferred in any manner except by will or by the laws
      of descent and distribution. Following the death of the Optionee, the Option,
      to the extent provided in Section 7, may be exercised by the Optionee’s
      legal representative or by any person empowered to do so under the deceased
      Optionee’s will or under the then applicable laws of descent and distribution.
      

	 

      
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	6.         
        TERMINATION OF THE OPTION. 

	 
	             The
      Option shall terminate and may no longer be exercised after the first to
      occur of (a) the Option Expiration Date, (b) the last date for
      exercising the Option following termination of the Optionee’s Service
      as described in Section 7, or (c) a Change in Control to the extent
      provided in Section 8. 
	 
	7.
                  EFFECT OF TERMINATION
        OF SERVICE. 

	 
	7.1        
        Option Exercisability. 

	 
	(a)       Disability.
         If the Optionee’s Service terminates because of the Disability
        of the Optionee, the Option, to the extent unexercised and exercisable
        on the date on which the Optionee’s Service terminated, may be exercised
        by the Optionee (or the Optionee’s guardian or legal representative)
        at any time prior to the expiration of twelve (12) months after the date
        on which the Optionee’s Service terminated, but in any event no later
        than the Option Expiration Date. 

	 
	(b)       Death. 
        If the Optionee’s Service terminates because of the death of the
        Optionee, the Option, to the extent unexercised and exercisable on the
        date on which the Optionee’s Service terminated, may be exercised
        by the Optionee’s legal representative or other person who acquired
        the right to exercise the Option by reason of the Optionee’s death
        at any time prior to the expiration of twelve (12) months after the date
        on which the Optionee’s Service terminated, but in any event no later
        than the Option Expiration Date. The Optionee’s Service shall be
        deemed to have terminated on account of death if the Optionee dies within
        three (3) months after the Optionee’s termination of Service (other
        than a termination for Cause). 

	 
	(c)       Termination
        After Change in Control.  If the Optionee’s
        Service ceases as a result of Termination After Change in Control (as
        defined below), (i) the Option, to the extent unexercised and exercisable
        on the date on which the Optionee’s Service terminated, may be exercised
        by the Optionee (or the Optionee’s guardian or legal representative)
        at any time prior to the expiration of eighteen (18) months after the
        date on which the Optionee’s Service terminated, but in any event
        no later than the Option Expiration Date, and (ii) the Option shall
        become immediately exercisable in full and the Vested Ratio shall be deemed
        to be 1/1 as of the date on which the Optionee’s Service terminated.
        

	 
	(d)       Termination
        for Cause.  Notwithstanding any other provision of
        this Option Agreement, if the Optionee’s Service is terminated for
        Cause, the Option shall terminate and cease to be exercisable on the effective
        date of such termination of Service. Unless otherwise defined in a contract
        of employment or service between the Optionee and a Participating Company,
        for purposes of this Option Agreement “Cause”
        shall mean any of the following: (i) the Optionee’s theft, dishonesty,
        or falsification of any Participating Company documents or records; (ii) the
        Optionee’s improper use or disclosure of a Participating Company’s
        confidential or proprietary information; (iii) any action by the
        Optionee which has a detrimental effect on a Participating Company’s
        reputation or business; (iv) the Optionee’s failure or inability
        to perform any reasonable assigned duties after written notice from a
        Participating Company of, and a reasonable opportunity to cure, such failure
        or inability; (v) any material breach by the Optionee of any employment
        agreement between the Optionee and a Participating Company, which breach
        is not cured pursuant to the terms of such agreement; or (vi) the
        Optionee’s conviction (including any plea of guilty or nolo contendere)
        of any criminal act which impairs the Optionee’s ability to perform
        his or her duties with a Participating Company. 

	 

      
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	(e)       Other
        Termination of Service.  If the Optionee’s Service
        terminates for any reason, except Disability, death, Termination after
        Change in Control, or Cause, the Option, to the extent unexercised and
        exercisable by the Optionee on the date on which the Optionee’s Service
        terminated, may be exercised by the Optionee at any time prior to the
        expiration of three (3) months (or such other longer period of time as
        determined by the Board, in its discretion) after the date on which the
        Optionee’s Service terminated, but in any event no later than the
        Option Expiration Date.

	 
	7.2        
        Extension if Exercise Prevented by Law
          Notwithstanding the foregoing, if the exercise of the Option
        within the applicable time periods set forth in Section 7.1 is prevented
        by the provisions of Section 4.6, the Option shall remain exercisable
        until three (3) months after the date the Optionee is notified by the
        Company that the Option is exercisable, but in any event no later than
        the Option Expiration Date.

	 
	7.3        
        Extension
        if Optionee Subject to Section 16(b).   Notwithstanding
        the foregoing, if a sale within the applicable time periods set forth
        in Section 7.1 of shares acquired upon the exercise of the Option
        would subject the Optionee to suit under Section 16(b) of the Exchange
        Act, the Option shall remain exercisable until the earliest to occur of
        (i) the tenth (10th) day following the date on which a sale of such
        shares by the Optionee would no longer be subject to such suit, (ii) the
        one hundred and ninetieth (190th) day after the Optionee’s termination
        of Service, or (iii) the Option Expiration Date. 

	 
	7.4
                
        Certain
        Definitions. 

	 
	(a)       “Termination
        After Change in Control” shall mean either of the following
        events occurring within eighteen (18) months after a Change in Control:
        

	 
	(i)              termination
        by the Participating Company Group of the Optionee’s Service with
        the Participating Company Group for any reason other than for Cause (as
        defined below); or 

	 
	(ii)            the
        Optionee’s resignation for Good Reason (as defined below) from all
        capacities in which the Optionee is then rendering Service to the Participating
        Company Group within a reasonable period of time following the event constituting
        Good Reason.

	 
	Notwithstanding any
      provision herein to the contrary, Termination After Change in Control shall
      not include any termination of the Optionee’s Service with the Participating
      Company Group which (1) is for Cause (as defined below); (2) is a result
      of the Optionee’s death or Disability; (3) is a result of the
      Optionee’s voluntary termination of Service other than for Good Reason;
      or (4) occurs prior to the effectiveness of a Change in Control. 

	 

      
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	(b)       “Cause”
        shall have the same meaning given such term in Section 7.1(d) hereof.
        

	 
	(c)       “Good
        Reason” shall mean any one or more of the following: 

	 
	(i)            without
        the Optionee’s express written consent, the assignment to the Optionee
        of any duties, or any limitation of the Optionee’s responsibilities,
        substantially inconsistent with the Optionee’s positions, duties,
        responsibilities and status with the Participating Company Group immediately
        prior to the date of the Change in Control; 

	 
	(ii)            
        without the Optionee’s express written consent, the relocation of
        the principal place of the Optionee’s Service to a location that
        is more than fifty (50) miles from the Optionee’s principal place
        of Service immediately prior to the date of the Change in Control, or
        the imposition of travel requirements substantially more demanding of
        the Optionee than such travel requirements existing immediately prior
        to the date of the Change in Control; 

	 
	(iii)            any
        failure by the Participating Company Group to pay, or any material reduction
        by the Participating Company Group of, (1) the Optionee’s base
        salary in effect immediately prior to the date of the Change in Control
        (unless reductions comparable in amount and duration are concurrently
        made for all other employees of the Participating Company Group with responsibilities,
        organizational level and title comparable to the Optionee’s), or
        (2) the Optionee’s bonus compensation, if any, in effect immediately
        prior to the date of the Change in Control (subject to applicable performance
        requirements with respect to the actual amount of bonus compensation earned
        by the Optionee); or 

	 
	(iv)            any
        failure by the Participating Company Group to (1) continue to provide
        the Optionee with the opportunity to participate, on terms no less favorable
        than those in effect for the benefit of any employee or service provider
        group which customarily includes a person holding the employment or service
        provider position or a comparable position with the Participating Company
        Group then held by the Optionee, in any benefit or compensation plans
        and programs, including, but not limited to, the Participating Company
        Group’s life, disability, health, dental, medical, savings, profit
        sharing, stock purchase and retirement plans, if any, in which the Optionee
        was participating immediately prior to the date of the Change in Control,
        or their equivalent, or (2) provide the Optionee with all other fringe
        benefits (or their equivalent) from time to time in effect for the benefit
        of any employee or service provider group which customarily includes a
        person holding the employment or service provider position or a comparable
        position with the Participating Company Group then held by the Optionee.

	 

      
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	8.
                 CHANGE
        IN CONTROL. 

	 
	8.1
                Definitions.
        

	 
	(a)       An
        “Ownership Change Event” shall be deemed to have
        occurred if any of the following occurs with respect to the Company: (i) the
        direct or indirect sale or exchange in a single or series of related transactions
        by the shareholders of the Company of more than fifty percent (50%) of
        the voting stock of the Company; (ii) a merger or consolidation in
        which the Company is a party; (iii) the sale, exchange, or transfer
        of all or substantially all of the assets of the Company; or (iv) a
        liquidation or dissolution of the Company. 

	 
	(b)       A
        “Change in Control” shall mean an Ownership Change
        Event or a series of related Ownership Change Events (collectively, a
        “Transaction”) wherein the shareholders
        of the Company immediately before the Transaction do not retain immediately
        after the Transaction, in substantially the same proportions as their
        ownership of shares of the Company’s voting stock immediately before
        the Transaction, direct or indirect beneficial ownership of more than
        fifty percent (50%) of the total combined voting power of the outstanding
        voting securities of the Company or, in the case of a Transaction described
        in Section 8.1(a)(iii), the corporation or other business entity
        to which the assets of the Company were transferred (the “Transferee”),
        as the case may be. For purposes of the preceding sentence, indirect beneficial
        ownership shall include, without limitation, an interest resulting from
        ownership of the voting securities of one or more corporations or other
        business entities which own the Company or the Transferee, as the case
        may be, either directly or through one or more subsidiary corporations
        or other business entities. The Board shall have the right to determine
        whether multiple sales or exchanges of the voting securities of the Company
        or multiple Ownership Change Events are related, and its determination
        shall be final, binding and conclusive. 

	 
	8.2
                 Effect
        of Change in Control on Option.  In the event
        of a Change in Control, the surviving, continuing, successor, or purchasing
        corporation or other business entity or parent thereof, as the case may
        be (the “Acquiring Corporation”), may,
        without the consent of the Optionee, either assume the Company’s
        rights and obligations under the Option or substitute for the Option a
        substantially equivalent option (as determined by the Board) for the Acquiring
        Corporation’s stock. The Option shall terminate and cease to be outstanding
        effective as of the date of the Change in Control to the extent that the
        Option is neither assumed or substituted for by the Acquiring Corporation
        in connection with the Change in Control nor exercised as of the date
        of the Change in Control. Notwithstanding the foregoing, shares acquired
        upon exercise of the Option prior to the Change in Control and any consideration
        received pursuant to the Change in Control with respect to such shares
        shall continue to be subject to all applicable provisions of this Option
        Agreement except as otherwise provided herein. Furthermore, notwithstanding
        the foregoing, if the corporation the stock of which is subject to the
        Option immediately prior to an Ownership Change Event described in Section 8.1(a)(i)
        constituting a Change in Control is the surviving or continuing corporation
        and immediately after such Ownership Change Event less than fifty percent
        (50%) of the total combined voting power of its voting stock is held by
        another corporation or by other corporations that are members of an affiliated
        group within the meaning of Section 1504(a) of the Code without regard
        to the provisions of Section 1504(b) of the Code, the Option shall
        not terminate unless the Board otherwise provides in its discretion. The
        Board may, in its discretion, determine that upon a Change in Control
        the Option shall be canceled in exchange for payment with respect to each
        Vested Share subject to such Option immediately prior to its cancellation
        in (a) cash, (b) stock of the Company or the Acquiring Corporation or
        (c) other property which, in any such case, shall be in an amount having
        a Fair Market Value equal to the excess of the Fair Market Value of the
        consideration to be paid per share of Stock in the Change in Control over
        the Exercise Price per share under the Option (subject to any required
        tax withholding). Such payment shall be made as soon as practicable following
        the Change in Control. 

	 

      
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	9.
                  ADJUSTMENTS
        FOR CHANGES IN CAPITAL STRUCTURE. 

	 
	             In
      the event of any stock dividend, stock split, reverse stock split, recapitalization,
      combination, reclassification, or similar change in the capital structure
      of the Company, appropriate adjustments shall be made in the number, Exercise
      Price and class of shares of stock subject to the Option. If a majority
      of the shares which are of the same class as the shares that are subject
      to the Option are exchanged for, converted into, or otherwise become (whether
      or not pursuant to an Ownership Change Event) shares of another corporation
      (the “New Shares”), the Board may unilaterally amend
      the Option to provide that the Option is exercisable for New Shares. In
      the event of any such amendment, the Number of Option Shares and the Exercise
      Price shall be adjusted in a fair and equitable manner, as determined by
      the Board, in its discretion. Notwithstanding the foregoing, any fractional
      share resulting from an adjustment pursuant to this Section 9 shall
      be rounded down to the nearest whole number, and in no event may the Exercise
      Price be decreased to an amount less than the par value, if any, of the
      stock subject to the Option. The adjustments determined by the Board pursuant
      to this Section 9 shall be final, binding and conclusive. 
	 
	10.
                  RIGHTS
        AS A SHAREHOLDER, EMPLOYEE OR CONSULTANT. 

	 
	             The
      Optionee shall have no rights as a shareholder with respect to any shares
      covered by the Option until the date of the issuance of a certificate for
      the shares for which the Option has been exercised (as evidenced by the
      appropriate entry on the books of the Company or of a duly authorized transfer
      agent of the Company). No adjustment shall be made for dividends, distributions
      or other rights for which the record date is prior to the date such certificate
      is issued, except as provided in Section 9. If the Optionee is an Employee,
      the Optionee understands and acknowledges that, except as otherwise provided
      in a separate, written employment agreement between a Participating Company
      and the Optionee, the Optionee’s employment is “at will”
      and is for no specified term. Nothing in this Option Agreement shall confer
      upon the Optionee any right to continue in the Service of a Participating
      Company or interfere in any way with any right of the Participating Company
      Group to terminate the Optionee’s Service as an Employee or Consultant,
      as the case may be, at any time. 

	 

      
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	11.
                  NOTICE
        OF SALES UPON DISQUALIFYING DISPOSITION. 

	 
	             The
      Optionee shall dispose of the shares acquired pursuant to the Option only
      in accordance with the provisions of this Option Agreement. In addition,
      if the Notice designates this Option as an Incentive Stock Option,
      the Optionee shall (a) promptly notify the Chief Financial Officer
      of the Company if the Optionee disposes of any of the shares acquired pursuant
      to the Option within one (1) year after the date the Optionee exercises
      all or part of the Option or within two (2) years after the Date of Option
      Grant and (b) provide the Company with a description of the circumstances
      of such disposition. Until such time as the Optionee disposes of such shares
      in a manner consistent with the provisions of this Option Agreement, unless
      otherwise expressly authorized by the Company, the Optionee shall hold all
      shares acquired pursuant to the Option in the Optionee’s name (and
      not in the name of any nominee) for the one-year period immediately after
      the exercise of the Option and the two-year period immediately after Date
      of Option Grant. At any time during the one-year or two-year periods set
      forth above, the Company may place a legend on any certificate representing
      shares acquired pursuant to the Option requesting the transfer agent for
      the Company’s stock to notify the Company of any such transfers. The
      obligation of the Optionee to notify the Company of any such transfer shall
      continue notwithstanding that a legend has been placed on the certificate
      pursuant to the preceding sentence. 
	 
	12.         
        LEGENDS.  

	 
	             The
      Company may at any time place legends referencing any applicable federal,
      state or foreign securities law restrictions on all certificates representing
      shares of stock subject to the provisions of this Option Agreement. The
      Optionee shall, at the request of the Company, promptly present to the Company
      any and all certificates representing shares acquired pursuant to the Option
      in the possession of the Optionee in order to carry out the provisions of
      this Section. Unless otherwise specified by the Company, legends placed
      on such certificates may include, but shall not be limited to, the following:
      
	 
	12.1
                 
        “THE SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY THE CORPORATION
        TO THE REGISTERED HOLDER UPON EXERCISE OF AN INCENTIVE STOCK OPTION AS
        DEFINED IN SECTION 422 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
        (“ISO”). IN ORDER TO OBTAIN THE PREFERENTIAL TAX TREATMENT
        AFFORDED TO ISOs, THE SHARES SHOULD NOT BE TRANSFERRED PRIOR TO [INSERT
        DISQUALIFYING DISPOSITION DATE HERE]. SHOULD THE REGISTERED HOLDER
        ELECT TO TRANSFER ANY OF THE SHARES PRIOR TO THIS DATE AND FOREGO ISO
        TAX TREATMENT, THE TRANSFER AGENT FOR THE SHARES SHALL NOTIFY THE CORPORATION
        IMMEDIATELY. THE REGISTERED HOLDER SHALL HOLD ALL SHARES PURCHASED UNDER
        THE INCENTIVE STOCK OPTION IN THE REGISTERED HOLDER’S NAME (AND NOT
        IN THE NAME OF ANY NOMINEE) PRIOR TO THIS DATE OR UNTIL TRANSFERRED AS
        DESCRIBED ABOVE.” 

	 

      
       10
      

      
 

      
                       
    
    
	13.         
        MISCELLANEOUS PROVISIONS. 

	 
	13.1
                 
        Binding Effect.  Subject to the restrictions on transfer
        set forth herein, this Option Agreement shall inure to the benefit of
        and be binding upon the parties hereto and their respective heirs, executors,
        administrators, successors and assigns. 

	 
	13.2
                 Termination
        or Amendment.  The Board may terminate or amend the Plan
        or the Option at any time; provided, however, that except as provided
        in Section 8.2 in connection with a Change in Control, no such termination
        or amendment may adversely affect the Option or any unexercised portion
        hereof without the consent of the Optionee unless such termination or
        amendment is necessary to comply with any applicable law or government
        regulation or is required to enable the Option, if designated an Incentive
        Stock Option in the Notice, to qualify as an Incentive Stock Option. No
        amendment or addition to this Option Agreement shall be effective unless
        in writing. 

	 
	13.3
                 
        Notices.  Any notice required or permitted hereunder
        shall be given in writing and shall be deemed effectively given (except
        to the extent that this Option Agreement provides for effectiveness only
        upon actual receipt of such notice) upon personal delivery or upon deposit
        in the United States Post Office, by registered or certified mail, with
        postage and fees prepaid, addressed to the other party at the address
        shown below that party’s signature on the Notice or at such other
        address as such party may designate in writing from time to time to the
        other party. 

	 
	13.4
                 
        Integrated Agreement.  The Notice, this Option Agreement
        and the Plan constitute the entire understanding and agreement of the
        Optionee and the Participating Company Group with respect to the subject
        matter contained herein or therein and supersedes any prior agreements,
        understandings, restrictions, representations, or warranties among the
        Optionee and the Participating Company Group with respect to such subject
        matter other than those as set forth or provided for herein or therein.
        To the extent contemplated herein or therein, the provisions of the Notice
        and the Option Agreement shall survive any exercise of the Option and
        shall remain in full force and effect. 

	 
	13.5
                 Applicable
        Law.  This Option Agreement shall be governed by the laws
        of the State of Washington as such laws are applied to agreements between
        Washington residents entered into and to be performed entirely within
        the State of Washington. 

	 
	13.6
                 Counterparts.
          The Notice may be executed in counterparts, each of which
        shall be deemed an original, but all of which together shall constitute
        one and the same instrument. 

	 

      
       11
      

      
 

      
                       
    
    

 

	TM Incentive
      Stock Option 	 	Optionee:
      _________________________ 
	 	 	 
	TM Nonstatutory
      Stock Option Date:	 	 	Date:____________________

 

	 STOCK
        OPTION EXERCISE NOTICE 

	 
	Zones, Inc.
      
	Attention:
      Chief Financial Officer 
	_______________________	 
	_______________________	 
	 
	Ladies and
      Gentlemen: 
	 
	1.
                Option. 
        I was granted an option (the “Option”) to purchase
        shares of the common stock (the “Shares”) of Zones,
        Inc. (the “Company”) pursuant to the Company’s
        2003 Equity Incentive Plan (the “Plan”), my Notice
        of Grant of Stock Option (the “Notice”) and my
        Stock Option Agreement (the “Option Agreement”)
        as follows: 

	 	Grant
      Number:	 	_______________________
	 	 	 	 
	 	Date of Option Grant:
      	 	_______________________
	 	 	 	 
	 	 Number of Option
      Shares: 	 	_______________________
	 	 	 	 
	 	Exercise Price per
      Share:	 	$_________________________

	 
	2.
                
        Exercise of Option. I hereby elect to
        exercise the Option to purchase the following number of Shares, all of
        which are Vested Shares in accordance with the Notice and the Option Agreement:

	 

	 	Total
      Shares Purchased: 	 	______________________
	 	 	 	 
	 	Total Exercise
      Price (Total Shares X Price per Share)	$________________________

	 
	3.
                
        Payments. I enclose payment in full of the total
        exercise price for the Shares in the following form(s), as authorized
        by my Option Agreement:

	 

	 	TM Cash: 	 	$________________________
	 	 	 	 
	 	TM Check:	 	$________________________
	 	 	 	 
	 	TM Tender
      of Company Stock:	 	Contact Plan Administrator
	 	 	 	 
	 	TM Cashless
      Exercise:	 	Contact Plan Administrator

	 

      
       1
      

      
 

      
                       
    
    

	4.
                
        Tax Withholding.    I authorize payroll withholding
        and otherwise will make adequate provision for the federal, state, local
        and foreign tax withholding obligations of the Company, if any, in connection
        with the Option. If I am exercising a Nonstatutory Stock Option, I enclose
        payment in full of my withholding taxes, if any, as follows: 

	 
	(Contact
      Plan Administrator for amount of tax due.) 

	 	 	 	 
	 	TM
      Cash: 	 	$ ________________________
	 	 	 	 
	 	TM Check:	 	$ ________________________

	 
	5.
                
        Optionee Information. 

	 	 
	 	 My address is:	________________________________________________
	 	 	 
	 	 	________________________________________________

	 	 
	 	 My Social Security
      Number is:___________________________________________

	 
	6.
                
        Notice of Disqualifying Disposition.   If the
        Option is an Incentive Stock Option, I agree that I will promptly notify
        the Chief Financial Officer of the Company if I transfer any of the Shares
        within one (1) year from the date I exercise all or part of the Option
        or within two (2) years of the Date of Option Grant.

	 
	7.
                
        Binding Effect.   I agree that the Shares are
        being acquired in accordance with and subject to the terms, provisions
        and conditions of the Option Agreement, to all of which I hereby expressly
        assent. This Agreement shall inure to the benefit of and be binding upon
        my heirs, executors, administrators, successors and assigns. 

	 
	I
        understand that I am purchasing the Shares pursuant to the terms of the
        Plan, the Notice and my Option Agreement, copies of which I have received
        and carefully read and understand. 

	 

	 	Very truly
      yours, 
	 	 
	 	 
	 	
 
	 	(Signature)

	 	 
	Receipt
      of the above is hereby acknowledged. 	 
	 	 
	Zones, Inc.	 
	 	 
	By:______________________________________	 
	 	 
	Title:_____________________________________	 
	 	 
	Dated:____________________________________	 

	 

      
       2Exhibit 10.12(d)(iii)
                                                                   E-1

                                                                January 21, 2004

Dear Fellow Employee:

         As a key employee of Cytec Industries Inc. (the "Company"), or of a
subsidiary of the Company, you have been granted by the Compensation and
Management Development Committee (the "Committee") of the Company's Board of
Directors a non-qualified stock option to purchase not more than the aggregate
number of shares of the Common Stock of the par value of $.01 each of the
Company ("Common Stock") set forth above at the per share purchase price set
forth above, all subject to the terms and conditions hereof and of the Company's
1993 Stock Award and Incentive Plan, as amended (the "Plan"). A copy of the
Plan, under which this option is granted to you, will be made available to you
on request by contacting the undersigned.

         The date of grant of this option is the date of this letter, which is
the date on which the Committee voted to grant the option. The purchase price
represents 100% of the Fair Market Value per share of the Common Stock on the
date of the grant, as determined under the Plan.

         Upon receipt by the Company of notification of exercise of option in
the form prescribed from time to time by the Committee and upon receipt of the
purchase price per share multiplied by the number of shares being purchased
pursuant to such exercise, the Company will cause a certificate or certificates
for such shares then purchased to be delivered to the person entitled thereto.

         Certain restrictions with respect to this option include, but are not
limited to, the following:

         (1) This option must be exercised if at all and to the extent
exercised, no later than ten years from the date of grant, and then only (except
as provided in paragraphs (5)and(6) below) if you are then an employee of the
Company or of a company which on the date of exercise is a subsidiary or
Affiliate (as defined in the Plan) of the Company.

         (2) This option shall vest and be exercisable in cumulative
installments over a period of three years as follows: to the extent of not more
than one-third of the number of shares subject hereto, at any time after the
expiration of the first year of the term hereof; to the extent of not more than
an additional one-third of such shares, at any time after the expiration of the
second year of such term; and to the extent of the remainder of such shares, at
any time after the expiration of the third year of such term; provided that, as
specified in Section 7 of the Plan, this option shall be immediately exercisable
in full upon a Change of Control (as defined in the Plan).

                                  Page 1 of 3

<PAGE>

         (3) This option is not transferable otherwise than by will or by the
laws of descent and distribution or, if then permitted under Rule 16b-3 under
the Securities Exchange Act of 1934, pursuant to a qualified domestic relations
order as defined under the Internal Revenue Code and it may be exercised during
your lifetime, only by you or your guardian or legal representative.
Notwithstanding the prior sentence, you may transfer this option, in whole or in
part, to (i) your spouse, (ii) your child or children, (iii) your grandchild or
grandchildren or (iv) a trust for any of the foregoing; provided that the
transfer shall be subject to all of the terms of the Plan and this grant letter
and, in addition, (A) the transferred option may not be retransferred except to
you, (B) you remain liable for all withholding taxes payable on account of this
option, (C) the Company may place transfer restrictions against any shares of
Common Stock issued to a transferee upon exercise of this option in order to
assure compliance with the Securities Act of 1933, as amended, (D) you give
prompt written notice of the transfer to the Secretary of the Committee
including name, address, tax I.D. number and date of birth of the transferee,
number of shares subject to the transfer, and such other information as the
Company may require and (E) this option shall be exercisable by the transferee
only to the extent that it would be exercisable by you if it had not been so
transferred.

         (4) In the event of termination of your employment, this option, to the
extent not theretofore exercised, shall forthwith terminate unless such
termination of employment shall be by reason of a cause described in paragraph
(5) or (6) below, in which case the provisions of paragraph (5) or (6) below, as
the case may be, shall be applicable.

         (5) In the event that your employment with the Company or a subsidiary
of the Company terminates by reason of (i) your death, (ii) your disability or
(iii) your retirement on or after your 55th birthday with ten or more year's
service credited under the Company's pension plans, and the date of such
termination is eight months or more after the date of grant of this option, this
option may be exercised by you, by your estate, by any transferee under
Paragraph 3 above, or by any person who acquires the right to exercise this
option by reason of your death, until one year after the last date on which any
options granted to you by the Company, which are not subsequently cancelled,
become fully exercisable (subject to installment exercise provisions of
Paragraph 2, above), but not after ten years from the date of grant, to the
extent of the total shares subject to this option.

         (6) In the event that the Company or a subsidiary of the Company
terminates your employment (except for dishonesty or other good cause, in which
case this option expires), you may exercise this option at any time within one
year after any such termination, but not after ten years from the date of grant,
to the extent of the number of shares subject to this option which were
purchasable by you at the date of such termination of your employment.

         (7) The Company, with the approval of an officer, may, at any time and
without cause, suspend the exercisability of this option if it becomes aware of
information that indicates that there may be grounds to terminate your
employment for dishonesty or other good cause. If upon conclusion of the
investigation the Company determines that it has not discovered grounds to
terminate your employment for dishonesty or other good cause, the suspension
shall be terminated.

                                  Page 2 of 3

<PAGE>

         (8) Nothing in this option shall confer on you any right to continue in
the employ of the Company or any of its subsidiaries or affiliates or interfere
in any way with the right of the Company or any subsidiary or affiliate to
terminate your employment at any time.

         (9) Subject to such limitations, if any, as the Committee may
establish, you may satisfy your mandatory federal and state income tax
withholding obligations resulting from the exercise of this option by requesting
the Company to withhold shares of Common Stock having a fair market value, as
determined under the Plan, equal to the withholding obligations. In order to
prevent fractional shares, the number of shares withheld shall be rounded up to
the nearest whole share, with the value of the fraction, at the option of the
Company, being either paid to you in cash or retained as additional optional
withholding.

         Your exercise of this option, in whole or in part, constitutes your
agreement (i) to pay the Company promptly, on demand, any withholding taxes due
in respect of the exercise of this stock option and (ii) that the Company, its
subsidiaries and affiliates may deduct an amount equal to such withholding taxes
from any amounts owing to you by the Company and/or any of such subsidiaries or
affiliate.

         The Company reserves the right to require this option to be exercised
only within the United States and to require stock certificates issuable to you
upon such exercise to be delivered only within the United States to you or to
such person who is appropriately authorized by you.

         Prior to the earliest time that this option may be exercised by you,
the Company will deliver to you a prospectus which meets the requirements of the
Securities Act of 1933, as amended, and which further describes the Plan and
options granted thereunder.

         In no event is the grant of this option to you to be deemed, directly
or indirectly, a recommendation by the Company that you at any time exercise
this option.

         In the event of any conflict between the terms of this option and the
provisions of the Plan, the provisions of the Plan shall govern.

                                               Very truly yours,

                                               CYTEC INDUSTRIES INC.

                                               BY:______________________
                                                  Joseph E. Marosits
                                                  Secretary-Compensation
                                                  and Management
                                                  Development Committee

Enc.
Grant Ltr-E 1

                                  Page 3 of 3

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