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                                                                     EXHIBIT 4.8

                                  HOTRAIL, INC.

                           1997 EQUITY INCENTIVE PLAN

                          AS ADOPTED JULY 10, 1997, AND
                    AMENDED ON SEPTEMBER 15, OCTOBER 15, 1997
                APRIL 29, 1999, JUNE 9, 1999 AND JANUARY 12, 2000

         1. PURPOSE. The purpose of this Plan is to provide incentives to
attract, retain and motivate eligible persons whose present and potential
contributions are important to the success of the Company, its Parent and
Subsidiaries, by offering them an opportunity to participate in the Company's
future performance through awards of Options and Restricted Stock. Capitalized
terms not defined herein are defined in Section 22. This Plan is intended to be
a written compensatory benefit plan within the meaning of Rule 701 promulgated
under the Securities Act.

         2. SHARES SUBJECT TO THE PLAN.

            2.1 Number of Shares Available. Subject to Sections 2.2 and 17, the
total number of Shares reserved and available for grant and issuance pursuant to
this Plan will be 4,525,000 Shares (post 3.0134347 forward stock split) or such
lesser number of Shares as permitted under Section 260.140.45 of Title 10 of the
California Code of Regulations. Subject to Sections 2.2 and 17, Shares will
again be available for grant and issuance in connection with future Awards under
this Plan that: (a) are subject to issuance upon exercise of an Option but cease
to be subject to such Option for any reason other than exercise of such Option,
(b) are subject to an Award that otherwise terminates without Shares being
issued or ( c) are purchased by the holder of the Award but are repurchased or
reacquired by the Company. At all times the Company will reserve and keep
available a sufficient number of Shares as will be required to satisfy the
requirements of all Awards granted under this Plan.

            2.2 Adjustment of Shares. In the event that the number of
outstanding shares of the Company's Common Stock is changed by a stock dividend,
recapitalization, stock split, reverse stock split, subdivision, combination,
reclassification or similar change in the capital structure of the Company
without consideration, then (a) the number of Shares reserved for issuance under
this Plan, (b) the Exercise Prices of and number of Shares subject to
outstanding Options and (c) the Purchase Prices of and number of Shares subject
to other outstanding Awards will be proportionately adjusted, subject to any
required action by the Board or the shareholders of the Company and compliance
with applicable securities laws; provided, however, that fractions of a Share
will not be issued but will either be paid in cash at Fair Market Value of such
fraction of a Share or will be rounded down to the nearest whole Share, as
determined by the Committee.

         3. ELIGIBILITY. ISOs (as defined in Section 5 below) may be granted
only to employees (including officers and directors who are also employees) of
the Company or of a Parent or Subsidiary of the Company. All other Awards may be
granted to employees, officers, directors and consultants of the Company or any
Parent or Subsidiary of the Company; provided such consultants render bona fide
services not in connection with the offer and sale of securities in a
capital-raising transaction. A person may be granted more than one Award under
this Plan.

         4. ADMINISTRATION.

            4.1 Committee Authority. This Plan will be administered by the
Committee or the Board acting as the Committee. Subject to the general purposes,
terms and conditions of this Plan, and to the direction of the Board, the
Committee will have full power to implement and carry out this Plan. Without
limitation, the Committee will have the authority to:

                (a) construe and interpret this Plan, any Award Agreement and
                    any other agreement or document executed pursuant to this
                    Plan;

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                (b) prescribe, amend and rescind rules and regulations relating
                    to this Plan;

                (c) select persons to receive Awards;

                (d) determine the form and terms of Awards;

                (e) determine the number of Shares or other consideration
                    subject to Awards;

                (f) determine whether Awards will be granted singly, in
                    combination with, in tandem with, in replacement of, or as
                    alternatives to, other Awards under this Plan or awards
                    under any other incentive or compensation plan of the
                    Company or any Parent or Subsidiary of the Company;

                (g) grant waivers of Plan or Award conditions;

                (h) determine the vesting, exercisability and payment of Awards;

                (i) correct any defect, supply any omission, or reconcile any
                    inconsistency in this Plan, any Award, any Award Agreement,
                    any Exercise Agreement or any Restricted Stock Purchase
                    Agreement;

                (j) determine whether an Award has been earned; and

                (k) make all other determinations necessary or advisable for the
                    administration of this Plan.

            4.2 Committee Discretion. Any determination made by the Committee
with respect to any Award will be made in its sole discretion at the time of
grant of the Award or, unless in contravention of any express term of this Plan
or Award, and subject to Section 5.9, at any later time, and such determination
will be final and binding on the Company and on all persons having an interest
in any Award under this Plan. The Committee may delegate to one or more officers
of the Company the authority to grant an Award under this Plan to Participants
who are not Insiders of the Company.

         5. OPTIONS. The Committee may grant Options to eligible persons and
will determine whether such Options will be Incentive Stock Options within the
meaning of the Code ("ISOS") or Nonqualified Stock Options ("NQSOS"), the number
of Shares subject to the Option, the Exercise Price of the Option, the period
during which the Option may be exercised, and all other terms and conditions of
the Option, subject to the following.

            5.1 Form of Option Grant. Each Option granted under this Plan will
be evidenced by an Award Agreement which will expressly identify the Option as
an ISO or an NQSO ("STOCK OPTION AGREEMENT"), and will be in such form and
contain such provisions (which need not be the same for each Participant) as the
Committee may from time to time approve, and which will comply with and be
subject to the terms and conditions of this Plan.

            5.2 Date of Grant. The date of grant of an Option will be the date
on which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Stock Option Agreement and a copy of
this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

            5.3 Exercise Period. Options may be exercisable immediately (whether
or not subject to repurchase pursuant to Section 11 of this Plan) or may be
exercisable within the times or upon the events determined by the Committee as
set forth in the Stock Option Agreement governing such Option; provided,
however, that no Option will be exercisable after the expiration of ten (10)
years from the date the Option is granted; and provided further that no ISO
granted to a person who directly or by attribution owns more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or of any Parent or Subsidiary of the Company ("TEN PERCENT SHAREHOLDER") will
be exercisable after the expiration of five (5) years from the date the ISO is
granted. The Committee also may provide for Options to become exercisable at one
time or from time to time, periodically or otherwise, in such number of Shares
or percentage of Shares as the Committee determines. Subject to earlier
termination of the Option as provided herein, each Participant who

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is not an officer, director or consultant of the Company or of a Parent or
Subsidiary of the Company shall have the right to exercise an Option granted
hereunder at the rate of at least twenty percent (20%) per year over five (5)
years from the date such Option is granted.

            5.4 Exercise Price. The Exercise Price of an Option will be
determined by the Committee when the Option is granted and may not be less than
85% of the Fair Market Value of the Shares on the date of grant; provided that
(i) the Exercise Price of an ISO will not be less than 100% of the Fair Market
Value of the Shares on the date of grant and (ii) the Exercise Price of any
Option granted to a Ten Percent Shareholder will not be less than 110% of the
Fair Market Value of the Shares on the date of grant. Payment for the Shares
purchased must be made in accordance with Section 7 of this Plan.

            5.5 Method of Exercise. Options may be exercised only by delivery to
the Company of a written stock option exercise agreement (the "EXERCISE
AGREEMENT") in a form approved by the Committee (which need not be the same for
each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding Participant's investment
intent and access to information and other matters, if any, as may be required
or desirable by the Company to comply with applicable securities laws, together
with payment in full of the Exercise Price, and any applicable taxes, for the
number of Shares being purchased.

            5.6 Termination. Subject to earlier termination pursuant to Sections
17 and 18 and notwithstanding the exercise periods set forth in the Stock Option
Agreement, exercise of an Option will always be subject to the following:

                (a) If the Participant is Terminated for any reason except
                    death, Disability or for Cause, then the Participant may
                    exercise such Participant's Options only to the extent that
                    such Options are exercisable upon the Termination Date and
                    must be exercised no later than three (3) months after the
                    Termination Date (or within such shorter time period, not
                    less than thirty (30) days, or such longer time period not
                    exceeding five (5) years after the Termination Date as may
                    be determined by the Committee and set forth in the Stock
                    Option Agreement, with any exercise beyond three (3) months
                    after the Termination Date deemed to be an NQSO), but in any
                    event, no later than the expiration date of the Options.

                (b) If the Participant is Terminated because of Participant's
                    death or Disability (or the Participant dies within three
                    (3) months after a Termination other than because of
                    Participant's Disability) and other than a Termination for
                    Cause, then Participant's Options may be exercised only to
                    the extent that such Options are exercisable by Participant
                    on the Termination Date and must be exercised by Participant
                    (or Participant's legal representative or authorized
                    assignee) no later than twelve (12) months after the
                    Termination Date (or within such shorter time period, not
                    less than six (6), or such longer time period not exceeding
                    five (5) years after the Termination Date, as may be
                    determined by the Committee and set forth in the Stock
                    Option Agreement, with any exercise beyond (a) three (3)
                    months after the Termination Date when the Termination is
                    for any reason other than the Participant's death or
                    disability, within the meaning of Section 22(e)(3) of the
                    Code, or (b) twelve (12) months after the Termination Date
                    when the Termination is for Participant's disability, within
                    the meaning of Section 22(e)(3) of the Code, deemed to be an
                    NQSO), but in any event no later than the expiration date of
                    the Options.

                (c) If the Participant is terminated for Cause, then
                    Participant's Options shall expire on such Participant's
                    Termination Date, or at such later time and on such
                    conditions as determined by the Committee.

            5.7 Limitations on Exercise. The Committee may specify a reasonable
minimum number of Shares that may be purchased on any exercise of an Option,
provided that such minimum number will not prevent Participant from exercising
the Option for the full number of Shares for which it is then exercisable.

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            5.8 Limitations on ISOs. The aggregate Fair Market Value (determined
as of the date of grant) of Shares with respect to which ISOs are exercisable
for the first time by a Participant during any calendar year (under this Plan or
under any other incentive stock option plan of the Company or any Parent or
Subsidiary of the Company) will not exceed $100,000. If the Fair Market Value of
Shares on the date of grant with respect to which ISOs are exercisable for the
first time by a Participant during any calendar year exceeds $100,000, then the
Options for the first $100,000 worth of Shares to become exercisable in such
calendar year will be ISOs and the Options for the amount in excess of $100,000
that become exercisable in that calendar year will be NQSOs. In the event that
the Code or the regulations promulgated thereunder are amended after the
Effective Date (as defined in Section 18 below) to provide for a different limit
on the Fair Market Value of Shares permitted to be subject to ISOs, then such
different limit will be automatically incorporated herein and will apply to any
Options granted after the effective date of such amendment.

            5.9 Modification, Extension or Renewal. The Committee may modify,
extend or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that any such action may not, without the
written consent of a Participant, impair any of such Participant's rights under
any Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h)
of the Code. The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;
provided, however, that the Exercise Price may not be reduced below the minimum
Exercise Price that would be permitted under Section 5.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

            5.10 No Disqualification. Notwithstanding any other provision in
this Plan, no term of this Plan relating to ISOs will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

         6. RESTRICTED STOCK. A Restricted Stock Award is an offer by the
Company to sell to an eligible person Shares that are subject to restrictions.
The Committee will determine to whom an offer will be made, the number of Shares
the person may purchase, the Purchase Price, the restrictions to which the
Shares will be subject, and all other terms and conditions of the Restricted
Stock Award, subject to the following:

            6.1 Form of Restricted Stock Award. All purchases under a Restricted
Stock Award made pursuant to this Plan will be evidenced by an Award Agreement
("RESTRICTED STOCK PURCHASE AGREEMENT") that will be in such form (which need
not be the same for each Participant) as the Committee will from time to time
approve, and will comply with and be subject to the terms and conditions of this
Plan. The Restricted Stock Award will be accepted by the Participant's execution
and delivery of the Restricted Stock Purchase Agreement and full payment for the
Shares to the Company within thirty (30) days from the date the Restricted Stock
Purchase Agreement is delivered to the person. If such person does not execute
and deliver the Restricted Stock Purchase Agreement along with full payment for
the Shares to the Company within thirty (30) days, then the offer will
terminate, unless otherwise determined by the Committee.

            6.2 Purchase Price. The Purchase Price of Shares sold pursuant to a
Restricted Stock Award will be determined by the Committee and will be at least
85% of the Fair Market Value of the Shares on the date the Restricted Stock
Award is granted or at the time the purchase is consummated, except in the case
of a sale to a Ten Percent Shareholder, in which case the Purchase Price will be
100% of the Fair Market Value on the date the Restricted Stock Award is granted
or at the time the purchase is consummated. Payment of the Purchase Price must
be made in accordance with Section 7 of this Plan.

            6.3 Restrictions. Restricted Stock Awards may be subject to the
restrictions set forth in Section 11 of this Plan or such other restrictions not
inconsistent with Section 25102(o) of the California Corporations Code.

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         7. PAYMENT FOR SHARE PURCHASES.

            7.1 Payment. Payment for Shares purchased pursuant to this Plan may
be made in cash (by check) or, where expressly approved for the Participant by
the Committee and where permitted by law:

                (a) by cancellation of indebtedness of the Company to the
                    Participant;

                (b) provided that a public market for the Company's stock
                    exists, by surrender of shares that either: (1) have been
                    owned by Participant for more than six (6) months and have
                    been paid for within the meaning of SEC Rule 144 (and, if
                    such shares were purchased from the Company by use of a
                    promissory note, such note has been fully paid with respect
                    to such shares); or (2) were obtained by Participant in the
                    public market;

                (c) by waiver of compensation due or accrued to the Participant
                    for services rendered;

                (d) with respect only to purchases upon exercise of an Option,
                    and provided that a public market for the Company's stock
                    exists:

                    (1) through a "same day sale" commitment from the
                        Participant and a broker-dealer that is a member of the
                        National Association of Securities Dealers (an "NASD
                        DEALER") whereby the Participant irrevocably elects to
                        exercise the Option and to sell a portion of the Shares
                        so purchased to pay for the Exercise Price, and whereby
                        the NASD Dealer irrevocably commits upon receipt of such
                        Shares to forward the Exercise Price directly to the
                        Company; or

                    (2) through a "margin" commitment from the Participant and
                        an NASD Dealer whereby the Participant irrevocably
                        elects to exercise the Option and to pledge the Shares
                        so purchased to the NASD Dealer in a margin account as
                        security for a loan from the NASD Dealer in the amount
                        of the Exercise Price, and whereby the NASD Dealer
                        irrevocably commits upon receipt of such Shares to
                        forward the Exercise Price directly to the Company;

                (e) for stock purchases described in Section 6 above and for
                    options that are exercisable in full on the date of the
                    grant and subject to repurchase by the Company in whole or
                    in part, by tender of a full recourse promissory note having
                    such terms as may be approved by the Committee and bearing
                    interest at a rate sufficient to avoid imputation of income
                    under Sections 483 and 1274 of the Code; provided, however,
                    that Participants who are not employees or directors of the
                    Company will not be entitled to purchase Shares with a
                    promissory note unless the note is adequately secured by
                    collateral other than the Shares; or

                (f) by any combination of the foregoing.

            7.2 Loan Guarantees. The Committee may help the Participant pay for
Shares purchased under this Plan by authorizing a guarantee by the Company of a
third-party loan to the Participant.

         8. WITHHOLDING TAXES.

            8.1 Withholding Generally. Whenever Shares are to be issued in
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an
amount sufficient to satisfy federal, state, and local withholding tax
requirements.

            8.2 Stock Withholding. When, under applicable tax laws, a
Participant incurs tax liability in connection with the exercise or vesting of
any Award that is subject to tax withholding and the Participant is obligated to
pay the Company the amount required to be withheld, the Committee may in its
sole discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that number of Shares having a Fair Market Value equal to the minimum

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amount required to be withheld, determined on the date that the amount of tax to
be withheld is to be determined. All elections by a Participant to have Shares
withheld for this purpose will be made in accordance with the requirements
established by the Committee for such elections and be in writing in a form
acceptable to the Committee.

         9. PRIVILEGES OF STOCK OWNERSHIP.

            9.1 Voting and Dividends. No Participant will have any of the rights
of a shareholder with respect to any Shares until the Shares are issued to the
Participant. After Shares are issued to the Participant, the Participant will be
a shareholder and have all the rights of a shareholder with respect to such
Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
Restricted Stock; provided, further, that the Participant will have no right to
retain such stock dividends or stock distributions with respect to Unvested
Shares that are repurchased pursuant to Section 11. The Company will comply with
Section 260.140.1 of Title 10 of the California Code of Regulations with respect
to the voting rights of Common Stock.

            9.2 Financial Statements. The Company will provide financial
statements to each Participant prior to such Participant's purchase of Shares
under this Plan, and to each Participant annually during the period such
Participant has Awards outstanding, or as otherwise required or permitted under
Section 260.140.46 of Title 10 of the California Code of Regulations.
Notwithstanding the foregoing, the Company will not be required to provide such
financial statements to Participants whose services in connection with the
Company assure them access to equivalent information.

         10. TRANSFERABILITY. Awards granted under this Plan, and any interest
therein, will not be transferable or assignable by Participant, and may not be
made subject to execution, attachment or similar process, otherwise than by will
or by the laws of descent and distribution. During the lifetime of the
Participant an Award will be exercisable, and any elections with respect to an
Award may be made, only by the Participant.

         11. RESTRICTIONS ON SHARES. At the discretion of the Committee, the
Company may reserve to itself and/or its assignee(s) in the Award Agreement (a)
a right of first refusal to purchase all Shares that a Participant (or a
subsequent transferee) may propose to transfer to a third party, unless
otherwise not permitted by Section 25102(o) of the California Corporations Code,
provided, that such right of first refusal terminates upon the Company's initial
public offering of Common Stock pursuant an effective registration statement
filed under the Securities Act and/or (b) a right to repurchase Shares held by a
Participant for cash and/or cancellation of purchase money indebtedness
following such Participant's Termination at any time within the later of ninety
(90) days after Participant's Termination Date and the date the Participant
purchases shares under the Plan, at: (A) with respect to Vested Shares, the Fair
Market Value of such Shares on Participant's Termination Date, provided, that
such right of repurchase terminates when the Company's securities become
publicly traded; or (B) with respect to Unvested Shares, the Participant's
Exercise Price or Purchase Price, as the case may be, provided, that unless the
Participant is an officer, director or consultant of the Company or of a Parent
or Subsidiary of the Company, such right of repurchase at the Exercise Price or
Purchase Price, as the case may be, lapses at the rate of at least twenty
percent (20%) per year over five (5) years from: (i) the date of grant of the
Option or (ii) in the case of Restricted Stock, the date the Participant
purchases the Shares.

         12. CERTIFICATES. All certificates for Shares or other securities
delivered under this Plan will be subject to such stock transfer orders, legends
and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable securities law, or any rules,
regulations and other requirements of the SEC or any stock exchange or automated
quotation system upon which the Shares may be listed or quoted.

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         13. ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a
Participant's Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause a
legend or legends referencing such restrictions to be placed on the
certificates. Any Participant who is permitted to execute a promissory note as
partial or full consideration for the purchase of Shares under this Plan will be
required to pledge and deposit with the Company all or part of the Shares so
purchased as collateral to secure the payment of Participant's obligation to the
Company under the promissory note; provided, however, that the Committee may
require or accept other or additional forms of collateral to secure the payment
of such obligation and, in any event, the Company will have full recourse
against the Participant under the promissory note notwithstanding any pledge of
the Participant's Shares or other collateral. In connection with any pledge of
the Shares, Participant will be required to execute and deliver a written pledge
agreement in such form as the Committee will from time to time approve. The
Shares purchased with the promissory note may be released from the pledge on a
pro rata basis as the promissory note is paid.

         14. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or
from time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards. The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, shares of Common
Stock of the Company or other consideration, based on such terms and conditions
as the Committee and the Participant may agree.

         15. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. This Plan is
intended to comply with Section 25102(o) of the California Corporations Code.
Any provision of the Plan which is inconsistent with Section 25102(o) shall,
without further act or amendment by the Company or the Board, be reformed to
comply with the requirements of Section 25102(o). An Award will not be effective
unless such Award is in compliance with all applicable federal and state
securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance. Notwithstanding
any other provision in this Plan, the Company will have no obligation to issue
or deliver certificates for Shares under this Plan prior to (a) obtaining any
approvals from governmental agencies that the Company determines are necessary
or advisable, and/or (b) compliance with any exemption, completion of any
registration or other qualification of such Shares under any state or federal
law or ruling of any governmental body that the Company determines to be
necessary or advisable. The Company will be under no obligation to register the
Shares with the SEC or to effect compliance with the exemption, registration,
qualification or listing requirements of any state securities laws, stock
exchange or automated quotation system, and the Company will have no liability
for any inability or failure to do so.

         16. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted
under this Plan will confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary of the Company or limit in any way the right
of the Company or any Parent or Subsidiary of the Company to terminate
Participant's employment or other relationship at any time, with or without
Cause.

         17. CORPORATE TRANSACTIONS.

             17.1 Assumption or Replacement of Awards by Successor. In the event
of (a) a dissolution or liquidation of the Company, (b) a merger or
consolidation in which the Company is not the surviving corporation (other than
a merger or consolidation with a wholly-owned subsidiary, a reincorporation of
the Company in a different jurisdiction, or other transaction in which there is
no substantial change in the shareholders of the Company or their relative stock
holdings and the Awards granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all
Participants), (c) a merger in which the Company is the surviving corporation
but after which the shareholders of the Company immediately prior to such merger
(other than any shareholder which merges, or which owns or controls another
corporation which merges, with the Company in such merger) cease to own their
shares or

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other equity interests in the Company, (d) the sale of substantially all of the
assets of the Company in one transaction or series of related transactions or
(e) the sale by the shareholders of the Company of at least 90% of the
outstanding shares of capital stock of the Company in one transaction or series
of related transactions, then any or all outstanding Awards may be assumed,
converted or replaced by the successor corporation (if any), which assumption,
conversion or replacement will be binding on all Participants. In the
alternative, the successor corporation may substitute equivalent Awards or
provide substantially similar consideration to Participants as was provided to
shareholders (after taking into account the existing provisions of the Awards).
The successor corporation may also issue, in place of outstanding Shares of the
Company held by the Participant, substantially similar shares or other property
subject to repurchase restrictions and other provisions no less favorable to the
Participant than those which applied to such outstanding Shares immediately
prior to such transaction described in this Subsection 17.1. In the event such
successor corporation (if any) does not assume or substitute Awards, as provided
above, pursuant to a transaction described in this Subsection 17.1, then
notwithstanding any other provision in this Plan to the contrary, the vesting of
such Awards will accelerate and the Options will vest and become exercisable as
to one (1) year in addition to the amount of vesting that would have been
applicable in the absence of such accelerated vesting, which vesting shall
accelerate prior to the consummation of such corporate transaction at such times
and on such conditions as the Committee determines, and if such Options are not
exercised prior to the consummation of the corporate transaction, they shall
terminate at such consummation in accordance with the provisions of this Plan.

             17.2 Other Treatment of Awards. Subject to any greater rights
granted to Participants under the foregoing provisions of this Section 17, in
the event of the occurrence of any transaction described in Section 17.1, any
outstanding Awards will be treated as provided in the applicable agreement or
plan of merger, consolidation, dissolution, liquidation or sale of assets.

             17.3 Assumption of Awards by the Company. The Company, from time to
time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either (a) granting an Award under this Plan in substitution of
such other company's award or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option rather than assume an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

         18. ADOPTION AND SHAREHOLDER APPROVAL. This Plan will become effective
on the date that it is adopted by the Board (the "EFFECTIVE DATe"). This Plan
will be approved by the shareholders of the Company (excluding Shares issued
pursuant to this Plan), consistent with applicable laws, within twelve (12)
months before or after the Effective Date. Upon the Effective Date, the Board
may grant Awards pursuant to this Plan; provided, however, that no Option may be
exercised prior to shareholder approval of this Plan. In the event that initial
shareholder approval is not obtained within twelve (12) months before or after
the date this Plan is adopted by the Board, all Awards granted hereunder will be
canceled, any Shares issued pursuant to any Award will be canceled and any
purchase of Shares hereunder will be rescinded.

         19. TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided
herein, this Plan will terminate ten (10) years from the Effective Date or, if
earlier, the date of shareholder approval. This Plan and all agreements
hereunder shall be governed by and construed in accordance with the laws of the
State of California.

         20. AMENDMENT OR TERMINATION OF PLAN. Subject to Section 5.9, the Board
may at any time terminate or amend this Plan in any respect, including without
limitation amendment of any form of Award Agreement or instrument to be executed
pursuant to this Plan; provided, however, that the Board will

                                       8

<PAGE>   9

not, without the approval of the shareholders of the Company, amend this Plan in
any manner that requires such shareholder approval pursuant to Section 25102(o)
of the California Corporations Code or the Code or the regulations promulgated
thereunder as such provisions apply to ISO plans.

         21. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by
the Board, the submission of this Plan to the shareholders of the Company for
approval, nor any provision of this Plan will be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options otherwise than under this Plan, and such arrangements
may be either generally applicable or applicable only in specific cases.

         22. DEFINITIONS. As used in this Plan, the following terms will have
the following meanings:

             "AWARD" means any award under this Plan, including any Option or
Restricted Stock Award.

             "AWARD AGREEMENT" means, with respect to each Award, the signed
written agreement between the Company and the Participant setting forth the
terms and conditions of the Award.

             "BOARD" means the Board of Directors of the Company.

             "CAUSE" means Termination because of (i) any willful material
violation by the Participant of any law or regulation applicable to the business
of the Company or a Parent or Subsidiary of the Company, the Participant's
conviction of, or guilty plea to, a felony or a crime involving moral turpitude,
any willful perpetration by the Participant of a common law fraud, (ii) the
Participant's commission of an act of personal dishonesty which involves
personal profit in connection with the Company or any other entity having a
business relationship with the Company, (iii) any material breach by the
Participant of any provision of any agreement or understanding between the
Company, or any Parent or Subsidiary of the Company and the Participant
regarding the terms of the Participant's service as an employee, director or
consultant to the Company or a Parent or Subsidiary of the Company, including
without limitation, the willful and continued failure or refusal of the
Participant to perform the material duties required of such Participant as an
employee, director or consultant of the Company or a Parent or Subsidiary of the
Company, other than as a result of having a Disability, or a breach of any
applicable invention assignment and confidentiality agreement or similar
agreement between the Company and the Participant, (iv) Participant's disregard
of the policies of the Company, or any Parent or Subsidiary of the Company, so
as to cause loss, damage or injury to the property, reputation or employees of
the Company or a Parent or Subsidiary of the Company, or (v) any other
misconduct by the Participant which is materially injurious to the financial
condition or business reputation of, or is otherwise materially injurious to,
the Company or a Parent or Subsidiary of the Company.

             "CODE" means the Internal Revenue Code of 1986, as amended.

             "COMMITTEE" means the committee appointed by the Board to
administer this Plan, or if no committee is appointed, the Board.

             "COMPANY" means HotRail, Inc., or any successor corporation.

             "DISABILITY" means a disability, whether temporary or permanent,
partial or total, as determined by the Committee.

             "EXERCISE PRICE" means the price at which a holder of an Option may
purchase the Shares issuable upon exercise of the Option.

                                       9

<PAGE>   10

             "FAIR MARKET VALUE" means, as of any date, the value of a share of
the Company's Common Stock determined as follows:

             (a) if such Common Stock is then quoted on the Nasdaq National
                 Market, its closing price on the Nasdaq National Market on the
                 date of determination as reported in The Wall Street Journal;

             (b) if such Common Stock is publicly traded and is then listed on a
                 national securities exchange, its closing price on the date of
                 determination on the principal national securities exchange on
                 which the Common Stock is listed or admitted to trading as
                 reported in The Wall Street Journal;

             (c) if such Common Stock is publicly traded but is not quoted on
                 the Nasdaq National Market nor listed or admitted to trading on
                 a national securities exchange, the average of the closing bid
                 and asked prices on the date of determination as reported by
                 The Wall Street Journal (or, if not so reported, as otherwise
                 reported by any newspaper or other source as the Board may
                 determine); or

             (d) if none of the foregoing is applicable, by the Committee in
                 good faith.

             "INSIDER" means an officer or director of the Company or any other
person whose transactions in the Company's Common Stock are subject to Section
16 of the Securities and Exchange Act of 1934, as amended.

             "OPTION" means an award of an option to purchase Shares pursuant to
Section 5.

             "PARENT" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if each of such
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

             "PARTICIPANT" means a person who receives an Award under this Plan.

             "PLAN" means this 1997 Equity Incentive Plan, as amended from time
to time.

             "PURCHASE PRICE" the price at which a Participant may purchase
Restricted Stock.

             "RESTRICTED STOCK" means Shares purchased pursuant to a Restricted
Stock Award.

             "RESTRICTED STOCK AWARD" means an award of Shares pursuant to
Section 6.

             "SEC" means the Securities and Exchange Commission.

             "SECURITIES ACT" means the Securities Act of 1933, as amended.

             "SHARES" means shares of the Company's Common Stock reserved for
issuance under this Plan, as adjusted pursuant to Sections 2 and 17, and any
successor security.

             "SUBSIDIARY" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

             "TERMINATION" or "TERMINATED" means, for purposes of this Plan with
respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director or consultant to the Company
or a Parent or Subsidiary of the Company. An employee will not be deemed to have
ceased to provide services in the case of (i) sick leave, (ii) military leave,
or (iii) any other leave of absence approved by the Committee, provided that
such leave is for a period of not more than ninety (90) days unless
reinstatement (or, in the case of an employee with an ISO, reemployment) upon
the expiration of such leave is guaranteed by contract or statute, or unless
provided otherwise pursuant to formal policy adopted from time to time by the

                                       10

<PAGE>   11

Company and issued and promulgated in writing. In the case of any participant on
(i) sick leave, (ii) military leave or (iii) on an approved leave of absence,
the Committee may make such provisions respecting suspension of vesting of the
Award while on leave from the Company or a Parent or Subsidiary of the Company
as it may deem appropriate, except that in no event may an Option be exercised
after the expiration of the term set forth in the Stock Option Agreement. The
Committee will have sole discretion to determine whether a Participant has
ceased to provide services and the effective date on which the Participant
ceased to provide services (the "TERMINATION DATE").

             "UNVESTED SHARES" means "Unvested Shares" as defined in the Award
Agreement.

             "VESTED SHARES" means "Vested Shares" as defined in the Award
Agreement.

                        --------------------------------

                                       11Burlington Industries Equity Inc.

                   Amended and Restated Equity Incentive Plan

1.       Purpose; Effective Date.
--------------------------------

                  (a) Purpose.  The  Burlington  Industries  Equity Inc.  Equity
Incentive  Plan (the  "Plan") is  intended  to provide an  incentive  to certain
officers and key  employees  of  Burlington  Industries  Equity Inc., a Delaware
corporation  (the  "Company"),  and its subsidiaries and affiliates to remain in
the employ of the Company and its  subsidiaries  and  affiliates and to increase
their  interest in the success of the Company by offering them an opportunity to
obtain a  proprietary  interest  in the  Company  through  the grant of  options
("Options") to purchase  shares of Common Stock,  par value $0.01 per share,  of
the Company ("Common Stock"), through the grant or offering of restricted shares
of Common Stock  ("Restricted  Shares"),  and through the grant of deferred cash
rights  with a value  based  upon  the  change  in the  value  of  Common  Stock
("Deferred Cash Rights").

                  (b) Effective Date. This amendment and restatement of the Plan
shall,  contingent upon the approval thereof by the holders of a majority of the
outstanding  shares of Common Stock of the Company,  be effective as of the date
immediately prior to the date on which the Company's  Registration  Statement on
Form S-1 (Registration No. 33-45149) becomes effective (the "Effective Date").

2.       Definitions.
--------------------

As used in the Plan, the following terms shall be defined as follows:

                  "Agreement"  means an  agreement  between  the  Company  and a
         Participant  pursuant to which an Award is granted or offered,  as such
         agreement may be amended from time to time;

                  "Awards"  means Options,  Restricted  Shares and Deferred Cash
         Rights;

                  "Beneficially Own" means to be a "beneficial owner" within the
         meaning of Rule 13d-3 Under the  Securities  Exchange  Act of 1934,  as
         amended (the "Exchange Act");

                  "Beneficiary"  or  "Beneficiaries"  shall  be  defined  as the
         person  or  persons  designated  by  the  Participant  pursuant  to the
         provisions  of the  Agreement  to  receive  payments  pursuant  to such
         Agreement  upon  the  Participant's  death.  If  no  Beneficiary  is so
         designated by the  Participant  or if no  Beneficiary  is living at the
         time a payment is due  pursuant to such  Agreement,  payments  shall be
         made to the estate of the Participant.  The Agreement shall provide the
         Participant with the right to change the designated  Beneficiaries from
         time to time by written  instrument  executed  by the  Participant  and
         filed  with the  Committee  (as  defined  in  Section  3(a)  hereof) in
         accordance with such rules as may be specified by the Committee;

                  "BICI  Plan"  means the  Burlington  Industries  Capital  Inc.
         Equity  Incentive  Plan,  adopted  effective  as of  July 9,  1989,  as
         amended, and terminated effective as of October 23, 1990.

                  Termination for "Cause" means a termination of employment with
         any of the Company or any of its  subsidiaries or affiliates  which, as
         determined by the Committee,  is by reason of (i) the commission by the
         Participant  of a felony or the  perpetration  by the  Participant of a
         dishonest act, material  misrepresentation  or common law fraud against
         the Company or any subsidiary or affiliate thereof,  (ii) any other act
         or omission which is materially injurious to the financial condition or
         business  reputation  of the  Company or any  subsidiary  or  affiliate
         thereof or (iii) the wilful  failure or refusal of the  Participant  to
         substantially  perform the  material  duties of his  position  with the
         Company or any of its subsidiaries or affiliates;

                  "Eligible  Persons"  means  officers and key  employees of the
         Company or any of its subsidiaries or affiliates;

                  "Legended Certificate" means a certificate evidencing a number
         of shares  of  Common  Stock  issued  in  connection  with an Award and
         imprinted with a legend to indicate that, if the offer and sale of such
         shares have not been  registered  under the  Securities Act of 1933, as
         amended(the "Securities Act"), such shares may be sold only pursuant to
         a registration  statement under the Securities Act or an exemption from
         registration  under the  Securities Act that the Company has determined
         is available for such sale;

                  "Participants" means Eligible Persons to whom Awards have been
         sold or granted; and

                  "The Public  Value" of a share of Common Stock on a given date
         shall be the closing  price of a share of Common Stock on such date (or
         the most recent  trading date if such given date is not a trading date)
         on the New York Stock Exchange, or in the event the Common Stock is not
         listed on such exchange,  on such other national securities exchange or
         the  NASDAQ/National   Market  System  as  may  be  designated  by  the
         Committee.

3.       Administration of the Plan.
-----------------------------------

                  (a) Members of the Committee.  The Plan shall be  administered
         hereunder by the Compensation  Committee (the "Committee") of the Board
         of Directors of the Company (the  "Board"),  which shall  consist of at
         least  three  individuals,  a majority of whom shall not be employed by
         the Company or any of its subsidiaries or affiliates.

                  (b) Authority of the Committee. The Committee shall adopt such
         rules as it may deem  appropriate  in order to carry out the purpose of
         the  Plan.  All  questions  of   interpretation,   administration   and
         application  of the  Plan  shall be  determined  by a  majority  of the
         members of the Committee then in office,  except that the Committee may
         authorize  any  one or  more  of its  members,  or any  officer  of the
         Company,  to execute and deliver  documents on behalf of the Committee.
         The  determination  of such majority  shall be final and binding in all
         matters relating to the Plan.

                  (c)  Board   Authority.   Anything   herein  to  the  contrary
         notwithstanding,  the Board shall be  entitled  to exercise  any of the
         authority assigned to the Committee hereunder.

                  4. Number of Shares Subject to the Plan. Subject to adjustment
under  Section 8(a) and 8(b),  a total of  2,043,005  shares of Common Stock are
subject to the Plan.

                  5. Terms of Restricted  Shares.  The Restricted Shares granted
or offered  for sale under the Plan shall  comply with the  following  terms and
conditions:

                  (a)  Vesting.  Each  Restricted  Share shall vest  immediately
         following the forfeiture and surrender of Restricted  Shares  described
         in Section 6(a) below. Notwithstanding the foregoing, Restricted Shares
         issued in  exchange  for  previously  granted  awards as  described  in
         Section   11(b)  shall  vest  in  three   substantially   equal  annual
         installments beginning one year following the date of grant.

                  (b) Delivery of  Certificate.  At the time of grant or sale of
         Restricted Shares to a Participant,  a Legended Certificate  evidencing
         the appropriate number of shares of Common Stock granted or sold to the
         Participant as Restricted  Shares shall be issued in the  Participant's
         name  but  shall  be  held  by  the  Company  for  the  account  of the
         Participant  until six months after the  Effective  date, at which time
         the  Legended  Certificate  evidencing  the  such  shares  of  shall be
         delivered to the participant.

                  (c) Stockholder  Rights. The Participant shall have all rights
         of a stockholder  as to the Restricted  Shares,  including the right to
         receive  dividends and the right to vote upon all matters in accordance
         with  the  Company's  Certificate  of  Incorporation,  subject  to  the
         restrictions on transfer set forth in Section 5(e).

                  (d)  Dividends and  Distributions.  Any shares of Common Stock
         received as a result of a stock  distribution  to holders of Restricted
         Shares or as a stock dividend on Restricted  Shares shall be subject to
         the same restrictions as such Restricted Shares.

                  (e)  Restrictions on Transfer.  None of the Restricted  Shares
         may be sold, transferred, assigned, pledged, or otherwise encumbered or
         disposed  of prior to the date  which  occurs  six  months  and one day
         following the Effective  Date,  except in accordance with Section 11 of
         the Plan or by will or the laws of descent and distribution.

                  6. Terms of Options.  The Options granted under the Plan shall
comply with the following terms and conditions:

                  (a)  Grant.  On  the  Effective  Date,  each  Participant  who
         incurred a loan in connection with a prior grant of a Restricted  Share
         shall unconditionally and irrevocably agree to forfeit and surrender to
         the  Company,  on the eight day after the  Effective  Date, a number of
         Restricted   Shares   having  an  aggregate  tax  basis  equal  to  the
         outstanding  principal amount of all such loans.  Each such Participant
         shall  receive  one  Option to  purchase  one share of Common  Stock in
         exchange for each such Restricted Share so surrendered. Such forfeiture
         and  surrender of  Restricted  Shares and grant of Options  pursuant to
         this  Section  6(a) shall be deemed to have  occurred on the  Effective
         Date.

                  (b) Exercise  Price.  The  exercise  price of each such Option
         shall be equal to the  Participant's  tax  basis  with  respect  to the
         Restricted Share surrendered in exchange therefor.

                  (c) Loan  Forgiveness.  On the Effective  Date,  the aggregate
         principal amount of such loans shall be forgiven by the Company.

                  (d)  Vesting;  Exercisability.  Each Option  shall vest on the
         Effective  Date  and  become   exercisable   six  months  and  one  day
         thereafter.

                  (e)  Exercise.  Upon the  exercise of an Option and payment of
         the  exercise  price of such Option (in such form and in such manner as
         the Committee may approve), a Legended  Certificate  evidencing a share
         of Common Stock shall be delivered to the Participant.

                  (f) Duration of Options; Termination of Employment

                                   (i)   Generally.   Unless   a   Participant's
                            employment  with the Company shall have  terminated,
                            such Participant's Options shall expire on the tenth
                            anniversary of the Effective Date.

                                   (ii)  Termination  by the  Company for Cause.
                            Notwithstanding     subsection    (f)(i),    if    a
                            Participant's   employment   is  terminated  by  the
                            Company   for  Cause  (as   defined   below),   such
                            Participant's  Options  shall expire on the earliest
                            to  occur  of  (A)  the  tenth  anniversary  of  the
                            Effective  Date or (B) 90  days  from  such  date of
                            termination.

                                   (iii)    Termination   for   Other   Reasons.
                            Notwithstanding     subsection    (f)(i),    if    a
                            Participant's  employment  terminates for any reason
                            other than a  termination  by the Company for Cause,
                            such  Participant's  Options  shall  expire  on  the
                            earliest  to occur of (A) the tenth  anniversary  of
                            the Effective  Date or(B) the third  anniversary  of
                            such termination.

                                   (iv) Definition of Cause.  As used herein,  a
                            termination  for  "Cause"  means  a  termination  of
                            employment with any of the Company's subsidiaries or
                            affiliates which, as determined by the Committee, is
                            by reason of (i) the  commission by the  Participant
                            of a felony or the  perpetration  by the Participant
                            of a dishonest act,  material  misrepresentation  or
                            common  law  fraud   against   the  Company  or  any
                            subsidiary or affiliate thereof,  (ii) any other act
                            or omission  which is  materially  injurious  to the
                            financial  condition or business  reputation  of the
                            Company or any  subsidiary  or affiliate  thereof or
                            (iii)  the   wilful   failure   or  refusal  of  the
                            Participant  to  substantially  perform the material
                            duties  of his  position  with any of the  Company's
                            subsidiaries or affiliates.

                  (g)  Restriction on Transfer.  Each Option  granted  hereunder
         shall not be transferable by the Participant  otherwise than by will or
         the laws of descent and distribution,  and shall be exercisable  during
         the Participant's lifetime only by the Participant.

                  (h) Stockholder  Rights. A Participant shall have no rights as
         a stockholder  with respect to any shares  issuable upon exercise of an
         Option until a certificate or certificates evidencing such shares shall
         have been issued to such  participant,  and no adjustment shall be made
         for dividends or  distributions or other rights in respect of any share
         for  which  the  record  date is  prior  to the  date  upon  which  the
         Participant shall become the holder of record thereof.

                  7.       Terms of Deferred Cash Rights.
                           -----------------------------

                  (a) Grant.  As of the Effective  Date,  each  Participant  who
         previously  purchased  restricted shares pursuant to the BICI Plan at a
         price of $37.80 per  restricted  share  ("Capital  Restricted  Shares")
         shall be granted a number of Deferred  Cash Rights that is equal to the
         number of such Capital Restricted Shares purchased by such Participant,
         divided by 1.5.

                  (b)  Forfeiture.   Notwithstanding   anything  herein  to  the
         contrary,  each  Participant  shall  forfeit  any  deferred  Cash Right
         granted to him if his employment is terminated by the Company for Cause
         prior to January 1, 1995.

                  (c) Value.  Each  Deferred Cash Right shall entitle the holder
         thereof  to  receive  from the  Company  an amount in cash equal to the
         amount,  if any, by which $56.70  exceeds the greater of (i) the Public
         Value of a share of Common Stock on the Payment Date (as defined below)
         or (ii) the Public  Value of a share of Common  Stock on the eighth day
         after the Effective Date.

                  (d)  Payment  Date.  The  "Payment  Date" with  respect to any
         Deferred  Cash  Right  shall  be  the  earlier  of  the   Participant's
         termination  of employment  for reasons other than a termination by the
         Company for Cause or January 1, 1995.

                  (e) Stockholder  Rights. A Participant shall have no rights as
         a stockholder with respect to any Deferred Cash Right.

                  (f) Restrictions on Transfer.  A Deferred Cash Right shall not
         be  transferable  by a  participant  other  than by will or the laws of
         descent and distribution,  and during the Participant's  lifetime shall
         entitle only the Participant to payment thereunder.

                  8. Effect of Certain Corporate Changes and Changes in Control.
                     ----------------------------------------------------------

                  (a)  Effect  of  Reorganization.  In the  event  that  (i) the
         Company is merged or consolidated with another corporation, (ii) all or
         substantially  all the assets of the  Company  are  acquired by another
         corporation,  person or  entity,  (iii)  the  Company  is  reorganized,
         dissolved or  liquidated  (each such event in (i),  (ii) or (iii) being
         hereinafter referred to as a "Reorganization  Event") or (iv) the Board
         shall propose that the Company enter into a Reorganization  Event, then
         the  Committee  shall make such  adjustments  as it deems  necessary or
         advisable in its sole  discretion  to provide each  Participant  with a
         benefit  equivalent  to that to which he would have been  entitled  had
         such event not occurred.

                  (b)  Dilution and Other  Adjustments.  In the event of a stock
         dividend or split, the committee shall make any or all of the following
         adjustments  necessary  to  provide  each  Participant  with a  benefit
         equivalent  to that to which he would have been entitled had such event
         not occurred:  (i) adjust the number of Awards, (ii) adjust the formula
         for valuing Deferred Cash Rights and (iii) make any other  adjustments,
         or  take  such  action,  as the  Committee,  in its  discretion,  deems
         appropriate.  Such adjustments  shall be conclusive and binding for all
         purposes. In the event of a change in the Common Stock which is limited
         to a change in the  designation  thereof  to  "Capital  Stock" or other
         similar  designation,  or to a change in the par value thereof, or from
         par value to no par value,  without  increase or decrease in the number
         of issued  shares,  the shares  resulting from any such change shall be
         deemed to be Common Stock within the meaning of the Plan.

                  9.       Miscellaneous.
                           -------------

                  (a)  No  Rights  to  Grants  or   Continued   Employment.   No
         Participant  shall  have  any  claim  or right  to  receive  grants  of
         Restricted Shares under the Plan. Neither the Plan nor any action taken
         or omitted to be taken hereunder shall be deemed to create or confer on
         any  Participant  any right to be retained in the employ of the Company
         or any subsidiary or other affiliate  thereof,  or to interfere with or
         to limit in any way the right of the Company or any subsidiary or other
         affiliate  thereof to terminate the  employment of such  Participant at
         any time.

                  (b) Right of Company to Assign  Rights  and  Delegate  Duties.
         Notwithstanding anything in the Plan to the contrary, the Company shall
         have the right to assign  any of its  rights  and  delegate  any of its
         duties  hereunder to such of its direct or indirect  subsidiaries  that
         have no less power,  authority  or ability  than the Company to perform
         such delegated duties.

                  (c) Tax Withholding.  The Company and its  subsidiaries  shall
         have the right to require any individual  entitled to receive shares of
         Common  Stock or cash  pursuant  to an  Award to remit to the  Company,
         prior to the delivery of any certificates  evidencing such shares,  any
         amount   sufficient  to  satisfy  any  Federal,   state  or  local  tax
         withholding requirements.  Prior to the Company's determination of such
         withholding liability, such individual may make an irrevocable election
         to  satisfy,  in whole or in part,  such  obligation  to remit taxes by
         directing  the  Company to withhold  shares of Common  Stock that would
         otherwise be received by such  individual.  Such election may be denied
         by the Committee in its  discretion,  or may be made subject to certain
         conditions specified by the Committee,  including,  without limitation,
         conditions  intended to avoid the  imposition of liability  against the
         individual under Section 16(b) of the Securities  Exchange Act of 1934,
         as amended.

                  (d) No  Restriction  on Right of Company  to Effect  Corporate
         Changes. The Plan shall not affect in any way the right or power of the
         Company  or  its   stockholders   to  make  or  authorize  any  or  all
         adjustments, recapitalization,  reorganizations or other changes in the
         Company's  capital  structure  or  its  business,   or  any  merger  or
         consolidation  of the  Company,  or any  issue of stock or of  options,
         warrants or rights to purchase stock or of bonds, debentures, preferred
         or prior  preference  stocks whose rights are superior to or affect the
         Common  Stock or the rights  thereof or which are  convertible  into or
         exchangeable for Common Stock, or the dissolution or liquidation of the
         Company,  or any sale or  transfer  of all or any part of its assets or
         business,  or any  other  corporate  act or  proceeding,  whether  of a
         similar character or otherwise.

                  10. Amendment. The Board may at any time and from time to time
alter, amend, suspend or terminate the Plan in whole or in part. Notwithstanding
the foregoing,  no termination or amendment of the Plan may, without the consent
of the  Participant  to whom any  Awards  shall  previously  have been  granted,
adversely  affect  the  rights of such  Participant  in such  Awards;  provided,
however,  that the Participant Committee (as hereinafter defined) shall have the
authority to alter,  amend,  suspend,  termination or waive any of the rights of
the  Participants  under the Plan or any Agreement or any outstanding  awards so
long as  such  alteration,  amendment,  suspension,  termination  or  waiver  is
uniformly  applicable to all similarly  situated  Participants.  As used herein,
"Participant  Committee"  means the  Chairman  of the Board and Chief  Executive
Officer,  Vice Chairman and Chief  Financial  Officer,  General Counsel and Vice
President, personnel and Public Relations, of Burlington Industries, Inc.

                  11.      Certain Exchanges of Awards.
                           ---------------------------

                  (a)  Notwithstanding  anything  contained  in the  Plan or any
         Agreement to the contrary,  if the Board  determines in its  discretion
         that such action is necessary or desirable, it may direct the Committee
         at any  time  and  from  time to time to  cause  Participants  to sell,
         exchange,  convert or exercise their outstanding Awards for Awards of a
         different  form.  It is the  intention  of the Board  that such  sales,
         exchanges,  conversions or exercises shall not cause an acceleration of
         taxability to the  Participants.  Any such change to the form of Awards
         held  by a  Participant  may be  affected  without  such  Participant's
         consent;   provided,   however,  that  any  such  exchange  or  similar
         transaction that adversely affects the rights of any Participant in any
         outstanding  Award must be approved by the  Participant  Committee  and
         must be uniformly applicable to all similarly situated Participants.

                  (b) Notwithstanding anything contained in the Plan (other than
         Section 4) or any Agreement to the contrary,  the Board at any time may
         offer Participants the opportunity to exchange their outstanding Awards
         for Awards of a different  form, and any shares returned to the Plan as
         a result of such  exchange  may be reissued as new grants and shall not
         be considered newly granted Awards for purposes of Section 12.

                  12.  Termination.  Subject to Sections 6(a),  7(a), 8(a), 8(b)
and  11(b),  with  respect  to  further  grants  of  Awards,  the  Plan has been
terminated  as of the Effective  Date;  provided,  however,  that the Plan shall
continue in effect with  respect to  previously  granted  Awards  until all such
Awards vest and are exercised or paid.

                  13. Headings.  The headings of sections and subsections herein
are  included  solely  for  convenience  of  reference  and shall not affect the
meaning of any of the provisions of the Plan.

                  13.  Governing Law. The Plan and all rights hereunder shall be
construed in accordance with and governed by the law of the State of New York.

As amended and restated April 26, 2000

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