Document:

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                                                                    EXHIBIT 10.9

                                INTELISPAN, INC.

                     2000 EQUITY INCENTIVE COMPENSATION PLAN
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                                INTELISPAN, INC.

                     2000 EQUITY INCENTIVE COMPENSATION PLAN

<TABLE>
<S>      <C>                                                                                                     <C>
1.       Purpose..................................................................................................1
2.       Definitions..............................................................................................1
3.       Administration...........................................................................................4
         (a)      Authority of the Committee......................................................................4
         (b)      Manner of Exercise of Committee Authority.......................................................4
         (c)      Limitation of Liability.........................................................................5
4.       Stock Subject to Plan....................................................................................5
         (a)      Limitation on Overall Number of Shares Subject to Awards........................................5
         (b)      Application of Limitations......................................................................5
5.       Eligibility; Per-Person Award Limitations................................................................5
6.       Specific Terms of Awards.................................................................................6
         (a)      General.........................................................................................6
         (b)      Options.........................................................................................6
         (c)      Stock Appreciation Rights.......................................................................7
         (d)      Restricted Stock................................................................................8
         (e)      Deferred Stock..................................................................................9
         (f)      Bonus Stock and Awards in Lieu of Obligations..................................................10
         (g)      Dividend Equivalents...........................................................................10
         (h)      Other Stock-Based Awards.......................................................................10
7.       Certain Provisions Applicable to Awards.................................................................11
         (a)      Stand-Alone, Additional, Tandem, and Substitute Awards.........................................11
         (b)      Term of Awards.................................................................................11
         (c)      Form and Timing of Payment Under Awards; Deferrals.............................................11
         (d)      Exemptions from Section 16(b) Liability........................................................11
8.       Performance and Annual Incentive Awards.................................................................12
         (a)      Performance Conditions.........................................................................12
         (b)      Performance Awards Granted to Designated Covered Employees.....................................12
         (c)      Annual Incentive Awards Granted to Designated Covered Employees................................14
         (d)      Written Determinations.........................................................................15
         (e)      Status of Section 8(b) and Section 8(c) Awards Under Code Section 162(m).......................15
9.       Change in Control.......................................................................................15
         (a)      Effect of "Change in Control.".................................................................15
         (b)      Definition of "Change in Control"..............................................................16
         (c)      Definition of "Change in Control Price.".......................................................17
10.      General Provisions......................................................................................17
         (a)      Compliance With Legal and Other Requirements...................................................17
         (b)      Limits on Transferability; Beneficiaries.......................................................17
         (c)      Adjustments....................................................................................18
         (d)      Taxes..........................................................................................18
         (e)      Changes to the Plan and Awards.................................................................19
</TABLE>

                                      (i)
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<TABLE>
         <S>      <C>                                                                                            <C>
         (f)      Limitation on Rights Conferred Under Plan......................................................19
         (g)      Unfunded Status of Awards; Creation of Trusts..................................................19
         (h)      Nonexclusivity of the Plan.....................................................................20
         (i)      Payments in the Event of Forfeitures; Fractional Shares........................................20
         (j)      Governing Law..................................................................................20
         (k)      Plan Effective Date and Stockholder Approval; Termination of Plan..............................20
</TABLE>

                                      (ii)
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                                INTELISPAN, INC.

                     2000 EQUITY INCENTIVE COMPENSATION PLAN

         1. Purpose. The purpose of this 2000 Equity Incentive Compensation Plan
(the "Plan") is to assist Intelispan, Inc., a Washington corporation (the
"Company") and its subsidiaries in attracting, motivating, retaining and
rewarding high-quality executives and other employees, officers, directors and
independent contractors by enabling such persons to acquire or increase a
proprietary interest in the Company in order to strengthen the mutuality of
interests between such persons and the Company's stockholders, and providing
such persons with annual and long term performance incentives to expend their
maximum efforts in the creation of shareholder value. In the event that the
Company is or becomes a Publicly Held Corporation (as hereinafter defined), the
Plan is intended to qualify certain compensation awarded under the Plan for tax
deductibility under Section 162(m) of the Code (as hereafter defined) to the
extent deemed appropriate by the Committee (or any successor committee) of the
Board of Directors of the Company.

         2. Definitions. For purposes of the Plan, the following terms shall be
defined as set forth below, in addition to such terms defined in Section 1
hereof.

                  (a) "Annual Incentive Award" means a conditional right granted
to a Participant under Section 8(c) hereof to receive a cash payment, Stock or
other Award, unless otherwise determined by the Committee, after the end of a
specified fiscal year.

                  (b) "Award" means any Option, SAR (including Limited SAR),
Restricted Stock, Deferred Stock, Stock granted as a bonus or in lieu of another
award, Dividend Equivalent, Other Stock-Based Award, Performance Award or Annual
Incentive Award, together with any other right or interest, granted to a
Participant under the Plan.

                  (c) "Beneficiary" means the person, persons, trust or trusts
which have been designated by a Participant in his or her most recent written
beneficiary designation filed with the Committee to receive the benefits
specified under the Plan upon such Participant's death or to which Awards or
other rights are transferred if and to the extent permitted under Section 10(b)
hereof. If, upon a Participant's death, there is no designated Beneficiary or
surviving designated Beneficiary, then the term Beneficiary means the person,
persons, trust or trusts entitled by will or the laws of descent and
distribution to receive such benefits.

                  (d) "Beneficial Owner", "Beneficially Owning" and "Beneficial
Ownership" shall have the meanings ascribed to such terms in Rule 13d-3 under
the Exchange Act and any successor to such Rule.

                  (e) "Board" means the Company's Board of Directors.

                  (f) "Change in Control" means a Change in Control as defined
with related terms in Section 9 of the Plan.
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                  (g) "Change in Control Price" means the amount calculated in
accordance with Section 9(c) of the Plan.

                  (h) "Code" means the Internal Revenue Code of 1986, as amended
from time to time, including regulations thereunder and successor provisions and
regulations thereto.

                  (i) "Committee" means a committee designated by the Board to
administer the Plan; provided, however, that the Committee shall consist of at
least two directors, and, in the event the Company is or becomes a Publicly Held
Corporation (as hereinafter defined), each member of which shall be (i) a
"non-employee director" within the meaning of Rule 16b-3 under the Exchange Act,
unless administration of the Plan by "non-employee directors" is not then
required in order for exemptions under Rule 16b-3 to apply to transactions under
the Plan, and (ii) an "outside director" within the meaning of Section 162(m) of
the Code, unless administration of the Plan by "outside directors" is not then
required in order to qualify for tax deductibility under Section 162(m) of the
Code.

                  (j) "Corporate Transaction" means a Corporate Transaction as
defined in Section 9(b)(i) of the Plan.

                  (k) "Covered Employee" means an Eligible Person who is a
Covered Employee as specified in Section 8(e) of the Plan.

                  (l) "Deferred Stock" means a right, granted to a Participant
under Section 6(e) hereof, to receive Stock, cash or a combination thereof at
the end of a specified deferral period.

                  (m) "Director" means a member of the Board.

                  (n) "Disability" means a permanent and total disability
(within the meaning of Section 22(e) of the Code), as determined by a medical
doctor satisfactory to the Committee.

                  (o) "Dividend Equivalent" means a right, granted to a
Participant under Section 6(g) hereof, to receive cash, Stock, other Awards or
other property equal in value to dividends paid with respect to a specified
number of shares of Stock, or other periodic payments.

                  (p) "Effective Date" means the effective date of the Plan,
which shall be March 1, 2000.

                  (q) "Eligible Person" means each Executive Officer of the
Company (as defined under the Exchange Act) and other officers, Directors and
employees of the Company or of any Subsidiary, and independent contractors with
the Company or any Subsidiary. The foregoing notwithstanding, only employees of
the Company or any Subsidiary shall be Eligible Persons for purposes of
receiving any Incentive Stock Options. An employee on leave of absence may be
considered as still in the employ of the Company or a Subsidiary for purposes of
eligibility for participation in the Plan.

                  (r) "Exchange Act" means the Securities Exchange Act of 1934,
as amended from time to time, including rules thereunder and successor
provisions and rules thereto.

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                  (s) "Executive Officer" means an executive officer of the
Company as defined under the Exchange Act.

                  (t) "Fair Market Value" means the fair market value of Stock,
Awards or other property as determined by the Committee or the Board, or under
procedures established by the Committee or the Board. Unless otherwise
determined by the Committee or the Board, the Fair Market Value of Stock as of
any given date shall be the closing sale price per share reported on a
consolidated basis for stock listed on the principal stock exchange or market on
which Stock is traded on the date as of which such value is being determined or,
if there is no sale on that date, then on the last previous day on which a sale
was reported.

                  (u) "Incentive Stock Option" or "ISO" means any Option
intended to be designated as an incentive stock option within the meaning of
Section 422 of the Code or any successor provision thereto.

                  (v) "Incumbent Board" means the Incumbent Board as defined in
Section 9(b)(ii) of the Plan.

                  (w) "Limited SAR" means a right granted to a Participant under
Section 6(c) hereof.

                  (x) "Option" means a right granted to a Participant under
Section 6(b) hereof, to purchase Stock or other Awards at a specified price
during specified time periods.

                  (y) "Other Stock-Based Awards" means Awards granted to a
Participant under Section 6(h) hereof.

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

                  (aa) "Participant" means a person who has been granted an
Award under the Plan which remains outstanding, including a person who is no
longer an Eligible Person.

                  (bb) "Performance Award" means a right, granted to an Eligible
Person under Section 8 hereof, to receive Awards based upon performance criteria
specified by the Committee or the Board.

                  (cc) "Person" shall have the meaning ascribed to such term in
Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d)
thereof, and shall include a "group" as defined in Section 13(d) thereof.

                  (dd) "Publicly Held Corporation" shall have the meaning
ascribed to such term in Section 162(m)(2) of the Code.

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                  (ee) "Restricted Stock" means Stock granted to a Participant
under Section 6(d) hereof, that is subject to certain restrictions and to a risk
of forfeiture.

                  (ff) "Rule 16b-3" and "Rule 16a-1(c)(3)" means Rule 16b-3 and
Rule 16a-1(c)(3), as from time to time in effect and applicable to the Plan and
Participants, promulgated by the Securities and Exchange Commission under
Section 16 of the Exchange Act.

                   (gg) "Stock" means the Company's Common Stock, and such other
securities as may be substituted (or resubstituted) for Stock pursuant to
Section 10(c) hereof.

                  (hh) "Stock Appreciation Rights" or "SAR" means a right
granted to a Participant under Section 6(c) hereof.

                  (ii) "Subsidiary" means any corporation or other entity in
which the Company has a direct or indirect ownership interest of 50% or more of
the total combined voting power of the then outstanding securities or interests
of such corporation or other entity entitled to vote generally in the election
of directors or in which the Company has the right to receive 50% or more of the
distribution of profits or 50% or more of the assets on liquidation or
dissolution.

                  3.       Administration.

                  (a) Authority of the Committee. The Plan shall be administered
by the Committee; provided, however, that except as otherwise expressly provided
in this Plan or in order to comply with Code Section 162(m) or Rule 16b-3 under
the Exchange Act, the Board may exercise any power or authority granted to the
Committee under this Plan. The Committee or the Board shall have full and final
authority, in each case subject to and consistent with the provisions of the
Plan, to select Eligible Persons to become Participants, grant Awards, determine
the type, number and other terms and conditions of, and all other matters
relating to, Awards, prescribe Award agreements (which need not be identical for
each Participant) and rules and regulations for the administration of the Plan,
construe and interpret the Plan and Award agreements and correct defects, supply
omissions or reconcile inconsistencies therein, and to make all other decisions
and determinations as the Committee or the Board may deem necessary or advisable
for the administration of the Plan. In exercising any discretion granted to the
Committee or the Board under the Plan or pursuant to any Award, the Committee or
the Board shall not be required to follow past practices, act in a manner
consistent with past practices, or treat any Eligible Person in a manner
consistent with the treatment of other Eligible Persons.

                  (b) Manner of Exercise of Committee Authority. In the event
that the Company is or becomes a Publicly Held Corporation, the Committee, and
not the Board, shall exercise sole and exclusive discretion on any matter
relating to a Participant then subject to Section 16 of the Exchange Act with
respect to the Company to the extent necessary in order that transactions by
such Participant shall be exempt under Rule 16b-3 under the Exchange Act. Any
action of the Committee or the Board shall be final, conclusive and binding on
all persons, including the Company, its subsidiaries, Participants,
Beneficiaries, transferees under Section 10(b) hereof or other persons claiming
rights from or through a Participant, and stockholders. The express grant of any
specific power to the Committee or the Board, and the taking of any

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action by the Committee or the Board, shall not be construed as limiting any
power or authority of the Committee or the Board. The Committee or the Board may
delegate to officers or managers of the Company or any subsidiary, or committees
thereof, the authority, subject to such terms as the Committee or the Board
shall determine, (i) to perform administrative functions, (ii) with respect to
Participants not subject to Section 16 of the Exchange Act, to perform such
other functions as the Committee or the Board may determine, and (iii) with
respect to Participants subject to Section 16, to perform such other functions
of the Committee or the Board as the Committee or the Board may determine to the
extent performance of such functions will not result in the loss of an exemption
under Rule 16b-3 otherwise available for transactions by such persons, in each
case to the extent permitted under applicable law and subject to the
requirements set forth in Section 8(d). The Committee or the Board may appoint
agents to assist it in administering the Plan.

                  (c) Limitation of Liability. The Committee and the Board, and
each member thereof, shall be entitled to, in good faith, rely or act upon any
report or other information furnished to him or her by any executive officer,
other officer or employee of the Company or a Subsidiary, the Company's
independent auditors, consultants or any other agents assisting in the
administration of the Plan. Members of the Committee and the Board, and any
officer or employee of the Company or a subsidiary acting at the direction or on
behalf of the Committee or the Board, shall not be personally liable for any
action or determination taken or made in good faith with respect to the Plan,
and shall, to the extent permitted by law, be fully indemnified and protected by
the Company with respect to any such action or determination.

         4.       Stock Subject to Plan.

                  (a) Limitation on Overall Number of Shares Subject to Awards.
Subject to adjustment as provided in Section 10(c) hereof, the total number of
shares of Stock for which Awards may be granted under the Plan shall not exceed
in the aggregate 7.4 percent of the issued shares of Stock of the Company as of
the date this plan is adopted; provided that, if the number of issued shares of
Stock is increased after such date, the maximum number of shares of Stock for
which Awards may be granted under the Plan shall be increased by 7.4 percent of
such increase. Any shares of Stock delivered under the Plan may consist, in
whole or in part, of authorized and unissued shares or treasury shares. Subject
to adjustment as provided in Section 10(c) hereof, in no event shall the
aggregate number of shares of Stock which may be issued pursuant to ISOs exceed
5,000,000 shares.

                  (b) Application of Limitations. The limitation contained in
Section 4(a) shall apply not only to Awards that are settleable by the delivery
of shares of Stock but also to Awards relating to shares of Stock but settleable
only in cash (such as cash-only SARs). The Committee or the Board may adopt
reasonable counting procedures to ensure appropriate counting, avoid double
counting (as, for example, in the case of tandem or substitute awards) and make
adjustments if the number of shares of Stock actually delivered differs from the
number of shares previously counted in connection with an Award.

         5. Eligibility; Per-Person Award Limitations. Awards may be granted
under the Plan only to Eligible Persons. In each fiscal year during any part of
which the Plan is in effect, an

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Eligible Person may not be granted Awards relating to more than 1,000,000 shares
of Stock, subject to adjustment as provided in Section 10(c), under each of
Sections 6(b), 6(c), 6(d), 6(e), 6(f), 6(g), 6(h), 8(b) and 8(c). In addition,
the maximum amount that may be earned as an Annual Incentive Award or other cash
Award in any fiscal year by any one Participant shall be $2,000,000, and the
maximum amount that may be earned as a Performance Award or other cash Award in
respect of a performance period by any one Participant shall be $1,000,000.

         6.       Specific Terms of Awards.

                  (a) General. Awards may be granted on the terms and conditions
set forth in this Section 6. In addition, the Committee or the Board may impose
on any Award or the exercise thereof, at the date of grant or thereafter
(subject to Section 10(e)), such additional terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee or the Board
shall determine, including terms requiring forfeiture of Awards in the event of
termination of employment by the Participant and terms permitting a Participant
to make elections relating to his or her Award. The Committee or the Board shall
retain full power and discretion to accelerate, waive or modify, at any time,
any term or condition of an Award that is not mandatory under the Plan. Except
in cases in which the Committee or the Board is authorized to require other
forms of consideration under the Plan, or to the extent other forms of
consideration must be paid to satisfy the requirements of Washington law, no
consideration other than services may be required for the grant (but not the
exercise) of any Award.

                  (b) Options. The Committee and the Board each is authorized to
grant Options to Participants on the following terms and conditions:

                           (i) Exercise Price. The exercise price per share of
                  Stock purchasable under an Option shall be determined by the
                  Committee or the Board, provided that such exercise price
                  shall not, in the case of Incentive Stock Options, be less
                  than 100% of the Fair Market Value of the Stock on the date of
                  grant of the Option and shall not, in any event, be less than
                  the par value of a share of Stock on the date of grant of such
                  Option. If an employee owns or is deemed to own (by reason of
                  the attribution rules applicable under Section 424(d) of the
                  Code) more than 10% of the combined voting power of all
                  classes of stock of the Company or any Parent Corporation or
                  Subsidiary and an Incentive Stock Option is granted to such
                  employee, the option price of such Incentive Stock Option (to
                  the extent required by the Code at the time of grant) shall be
                  no less than 110% of the Fair Market Value of the Stock on the
                  date such Incentive Stock Option is granted.

                           (ii) Time and Method of Exercise. The Committee or
                  the Board shall determine the time or times at which or the
                  circumstances under which an Option may be exercised in whole
                  or in part (including based on achievement of performance
                  goals and/or future service requirements), the time or times
                  at which Options shall cease to be or become exercisable
                  following termination of employment or upon other conditions,
                  the methods by which such exercise price may be paid or deemed
                  to be paid (including in the discretion of the Committee or
                  the Board a cashless exercise procedure), the form of such
                  payment, including,

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                  without limitation, cash, Stock, other Awards or awards
                  granted under other plans of the Company or any subsidiary, or
                  other property (including notes or other contractual
                  obligations of Participants to make payment on a deferred
                  basis), and the methods by or forms in which Stock will be
                  delivered or deemed to be delivered to Participants.

                           (iii) ISOs. The terms of any ISO granted under the
                  Plan shall comply in all respects with the provisions of
                  Section 422 of the Code. Anything in the Plan to the contrary
                  notwithstanding, no term of the Plan relating to ISOs
                  (including any SAR in tandem therewith) shall be interpreted,
                  amended or altered, nor shall any discretion or authority
                  granted under the Plan be exercised, so as to disqualify
                  either the Plan or any ISO under Section 422 of the Code,
                  unless the Participant has first requested the change that
                  will result in such disqualification. Thus, if and to the
                  extent required to comply with Section 422 of the Code,
                  Options granted as Incentive Stock Options shall be subject to
                  the following special terms and conditions:

                                    (A) the Option shall not be exercisable more
                  than ten years after the date such Incentive Stock Option is
                  granted; provided, however, that if a Participant owns or is
                  deemed to own (by reason of the attribution rules of Section
                  424(d) of the Code) more than 10% of the combined voting power
                  of all classes of stock of the Company or any Parent
                  Corporation and the Incentive Stock Option is granted to such
                  Participant, the term of the Incentive Stock Option shall be
                  (to the extent required by the Code at the time of the grant)
                  for no more than five years from the date of grant; and

                                    (B) The aggregate Fair Market Value
                  (determined as of the date the Incentive Stock Option is
                  granted) of the shares of stock with respect to which
                  Incentive Stock Options granted under the Plan and all other
                  option plans of the Company or its Parent Corporation during
                  any calendar year exercisable for the first time by the
                  Participant during any calendar year shall not (to the extent
                  required by the Code at the time of the grant) exceed
                  $100,000.

                  (c) Stock Appreciation Rights. The Committee and the Board
each is authorized to grant SAR's to Participants on the following terms and
conditions:

                           (i) Right to Payment. A SAR shall confer on the
                  Participant to whom it is granted a right to receive, upon
                  exercise thereof, the excess of (A) the Fair Market Value of
                  one share of stock on the date of exercise (or, in the case of
                  a "Limited SAR" that may be exercised only in the event of a
                  Change in Control, the Fair Market Value determined by
                  reference to the Change in Control Price, as defined under
                  Section 9(c) hereof), over (B) the grant price of the SAR as
                  determined by the Committee or the Board. The grant price of
                  an SAR shall not be less than the Fair Market Value of a share
                  of Stock on the date of grant except as provided under Section
                  7(a) hereof.

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                           (ii) Other Terms. The Committee or the Board shall
                  determine at the date of grant or thereafter, the time or
                  times at which and the circumstances under which a SAR may be
                  exercised in whole or in part (including based on achievement
                  of performance goals and/or future service requirements), the
                  time or times at which SARs shall cease to be or become
                  exercisable following termination of employment or upon other
                  conditions, the method of exercise, method of settlement, form
                  of consideration payable in settlement, method by or forms in
                  which Stock will be delivered or deemed to be delivered to
                  Participants, whether or not a SAR shall be in tandem or in
                  combination with any other Award, and any other terms and
                  conditions of any SAR. Limited SARs that may only be exercised
                  in connection with a Change in Control or other event as
                  specified by the Committee or the Board, may be granted on
                  such terms, not inconsistent with this Section 6(c), as the
                  Committee or the Board may determine. SARs and Limited SARs
                  may be either freestanding or in tandem with other Awards.

                  (d) Restricted Stock. The Committee and the Board each is
authorized to grant Restricted Stock to Participants on the following terms and
conditions:

                           (i) Grant and Restrictions. Restricted Stock shall be
                  subject to such restrictions on transferability, risk of
                  forfeiture and other restrictions, if any, as the Committee or
                  the Board may impose, which restrictions may lapse separately
                  or in combination at such times, under such circumstances
                  (including based on achievement of performance goals and/or
                  future service requirements), in such installments or
                  otherwise, as the Committee or the Board may determine at the
                  date of grant or thereafter. Except to the extent restricted
                  under the terms of the Plan and any Award agreement relating
                  to the Restricted Stock, a Participant granted Restricted
                  Stock shall have all of the rights of a stockholder, including
                  the right to vote the Restricted Stock and the right to
                  receive dividends thereon (subject to any mandatory
                  reinvestment or other requirement imposed by the Committee or
                  the Board). During the restricted period applicable to the
                  Restricted Stock, subject to Section 10(b) below, the
                  Restricted Stock may not be sold, transferred, pledged,
                  hypothecated, margined or otherwise encumbered by the
                  Participant.

                           (ii) Forfeiture. Except as otherwise determined by
                  the Committee or the Board at the time of the Award, upon
                  termination of a Participant's employment during the
                  applicable restriction period, the Participant's Restricted
                  Stock that is at that time subject to restrictions shall be
                  forfeited and reacquired by the Company; provided that the
                  Committee or the Board may provide, by rule or regulation or
                  in any Award agreement, or may determine in any individual
                  case, that restrictions or forfeiture conditions relating to
                  Restricted Stock shall be waived in whole or in part in the
                  event of terminations resulting from specified causes, and the
                  Committee or the Board may in other cases waive in whole or in
                  part the forfeiture of Restricted Stock.

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                           (iii) Certificates for Stock. Restricted Stock
                  granted under the Plan may be evidenced in such manner as the
                  Committee or the Board shall determine. If certificates
                  representing Restricted Stock are registered in the name of
                  the Participant, the Committee or the Board may require that
                  such certificates bear an appropriate legend referring to the
                  terms, conditions and restrictions applicable to such
                  Restricted Stock, that the Company retain physical possession
                  of the certificates, and that the Participant deliver a stock
                  power to the Company, endorsed in blank, relating to the
                  Restricted Stock.

                           (iv) Dividends and Splits. As a condition to the
                  grant of an Award of Restricted Stock, the Committee or the
                  Board may require that any cash dividends paid on a share of
                  Restricted Stock be automatically reinvested in additional
                  shares of Restricted Stock or applied to the purchase of
                  additional Awards under the Plan. Unless otherwise determined
                  by the Committee or the Board, Stock distributed in connection
                  with a Stock split or Stock dividend, and other property
                  distributed as a dividend, shall be subject to restrictions
                  and a risk of forfeiture to the same extent as the Restricted
                  Stock with respect to which such Stock or other property has
                  been distributed.

                  (e) Deferred Stock. The Committee and the Board each is
authorized to grant Deferred Stock to Participants, which are rights to receive
Stock, cash, or a combination thereof at the end of a specified deferral period,
subject to the following terms and conditions:

                           (i) Award and Restrictions. Satisfaction of an Award
                  of Deferred Stock shall occur upon expiration of the deferral
                  period specified for such Deferred Stock by the Committee or
                  the Board (or, if permitted by the Committee or the Board, as
                  elected by the Participant). In addition, Deferred Stock shall
                  be subject to such restrictions (which may include a risk of
                  forfeiture) as the Committee or the Board may impose, if any,
                  which restrictions may lapse at the expiration of the deferral
                  period or at earlier specified times (including based on
                  achievement of performance goals and/or future service
                  requirements), separately or in combination, in installments
                  or otherwise, as the Committee or the Board may determine.
                  Deferred Stock may be satisfied by delivery of Stock, cash
                  equal to the Fair Market Value of the specified number of
                  shares of Stock covered by the Deferred Stock, or a
                  combination thereof, as determined by the Committee or the
                  Board at the date of grant or thereafter. Prior to
                  satisfaction of an Award of Deferred Stock, an Award of
                  Deferred Stock carries no voting or dividend or other rights
                  associated with share ownership.

                           (ii) Forfeiture. Except as otherwise determined by
                  the Committee or the Board, upon termination of a
                  Participant's employment during the applicable deferral period
                  thereof to which forfeiture conditions apply (as provided in
                  the Award agreement evidencing the Deferred Stock), the
                  Participant's Deferred Stock that is at that time subject to
                  deferral (other than a deferral at the election of the
                  Participant) shall be forfeited; provided that the Committee
                  or the Board may provide, by rule or regulation or in any
                  Award agreement, or may determine in any

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                  individual case, that restrictions or forfeiture conditions
                  relating to Deferred Stock shall be waived in whole or in part
                  in the event of terminations resulting from specified causes,
                  and the Committee or the Board may in other cases waive in
                  whole or in part the forfeiture of Deferred Stock.

                           (iii) Dividend Equivalents. Unless otherwise
                  determined by the Committee or the Board at date of grant,
                  Dividend Equivalents on the specified number of shares of
                  Stock covered by an Award of Deferred Stock shall be either
                  (A) paid with respect to such Deferred Stock at the dividend
                  payment date in cash or in shares of unrestricted Stock having
                  a Fair Market Value equal to the amount of such dividends, or
                  (B) deferred with respect to such Deferred Stock and the
                  amount or value thereof automatically deemed reinvested in
                  additional Deferred Stock, other Awards or other investment
                  vehicles, as the Committee or the Board shall determine or
                  permit the Participant to elect.

                  (f) Bonus Stock and Awards in Lieu of Obligations. The
Committee and the Board each is authorized to grant Stock as a bonus, or to
grant Stock or other Awards in lieu of Company obligations to pay cash or
deliver other property under the Plan or under other plans or compensatory
arrangements, provided that, in the case of Participants subject to Section 16
of the Exchange Act, the amount of such grants remains within the discretion of
the Committee to the extent necessary to ensure that acquisitions of Stock or
other Awards are exempt from liability under Section 16(b) of the Exchange Act.
Stock or Awards granted hereunder shall be subject to such other terms as shall
be determined by the Committee or the Board.

                  (g) Dividend Equivalents. The Committee and the Board each is
authorized to grant Dividend Equivalents to a Participant entitling the
Participant to receive cash, Stock, other Awards, or other property equal in
value to dividends paid with respect to a specified number of shares of Stock,
or other periodic payments. Dividend Equivalents may be awarded on a
free-standing basis or in connection with another Award. The Committee or the
Board may provide that Dividend Equivalents shall be paid or distributed when
accrued or shall be deemed to have been reinvested in additional Stock, Awards,
or other investment vehicles, and subject to such restrictions on
transferability and risks of forfeiture, as the Committee or the Board may
specify.

                  (h) Other Stock-Based Awards. The Committee and the Board each
is authorized, subject to limitations under applicable law, to grant to
Participants such other Awards that may be denominated or payable in, valued in
whole or in part by reference to, or otherwise based on, or related to, Stock,
as deemed by the Committee or the Board to be consistent with the purposes of
the Plan, including, without limitation, convertible or exchangeable debt
securities, other rights convertible or exchangeable into Stock, purchase rights
for Stock, Awards with value and payment contingent upon performance of the
Company or any other factors designated by the Committee or the Board, and
Awards valued by reference to the book value of Stock or the value of securities
of or the performance of specified subsidiaries or business units. The Committee
or the Board shall determine the terms and conditions of such Awards. Stock
delivered pursuant to an Award in the nature of a purchase right granted under
this Section 6(h) shall be purchased for such consideration, paid for at such
times, by such methods, and in such forms, including, without limitation, cash,
Stock, other Awards or other property, as the

                                       10
<PAGE>   14
Committee or the Board shall determine. Cash awards, as an element of or
supplement to any other Award under the Plan, may also be granted pursuant to
this Section 6(h).

         7.       Certain Provisions Applicable to Awards.

                  (a) Stand-Alone, Additional, Tandem, and Substitute Awards.
Awards granted under the Plan may, in the discretion of the Committee or the
Board, be granted either alone or in addition to, in tandem with, or in
substitution or exchange for, any other Award or any award granted under another
plan of the Company, any subsidiary, or any business entity to be acquired by
the Company or a subsidiary, or any other right of a Participant to receive
payment from the Company or any subsidiary. Such additional, tandem, and
substitute or exchange Awards may be granted at any time. If an Award is granted
in substitution or exchange for another Award or award, the Committee or the
Board shall require the surrender of such other Award or award in consideration
for the grant of the new Award. In addition, Awards may be granted in lieu of
cash compensation, including in lieu of cash amounts payable under other plans
of the Company or any subsidiary, in which the value of Stock subject to the
Award is equivalent in value to the cash compensation (for example, Deferred
Stock or Restricted Stock), or in which the exercise price, grant price or
purchase price of the Award in the nature of a right that may be exercised is
equal to the Fair Market Value of the underlying Stock minus the value of the
cash compensation surrendered (for example, Options granted with an exercise
price "discounted" by the amount of the cash compensation surrendered).

                  (b) Term of Awards. The term of each Award shall be for such
period as may be determined by the Committee or the Board; provided that in no
event shall the term of any Option or SAR exceed a period of ten years (or such
shorter term as may be required in respect of an ISO under Section 422 of the
Code).

                  (c) Form and Timing of Payment Under Awards; Deferrals.
Subject to the terms of the Plan and any applicable Award agreement, payments to
be made by the Company or a subsidiary upon the exercise of an Option or other
Award or settlement of an Award may be made in such forms as the Committee or
the Board shall determine, including, without limitation, cash, other Awards or
other property, and may be made in a single payment or transfer, in
installments, or on a deferred basis. The settlement of any Award may be
accelerated, and cash paid in lieu of Stock in connection with such settlement,
in the discretion of the Committee or the Board or upon occurrence of one or
more specified events (in addition to a Change in Control). Installment or
deferred payments may be required by the Committee or the Board (subject to
Section 10(e) of the Plan) or permitted at the election of the Participant on
terms and conditions established by the Committee or the Board. Payments may
include, without limitation, provisions for the payment or crediting of a
reasonable interest rate on installment or deferred payments or the grant or
crediting of Dividend Equivalents or other amounts in respect of installment or
deferred payments denominated in Stock.

                  (d) Exemptions from Section 16(b) Liability. If and to the
extent that the Company is or becomes a Publicly Held Corporation, it is the
intent of the Company that this Plan comply in all respects with applicable
provisions of Rule 16b-3 or Rule 16a-1(c)(3) to the extent necessary to ensure
that neither the grant of any Awards to nor other transaction by a Participant

                                       11
<PAGE>   15
who is subject to Section 16 of the Exchange Act is subject to liability under
Section 16(b) thereof (except for transactions acknowledged in writing to be
non-exempt by such Participant). Accordingly, if any provision of this Plan or
any Award agreement does not comply with the requirements of Rule 16b-3 or Rule
16a-1(c)(3) as then applicable to any such transaction, such provision will be
construed or deemed amended to the extent necessary to conform to the applicable
requirements of Rule 16b-3 or Rule 16a-1(c)(3) so that such Participant shall
avoid liability under Section 16(b). In addition, the purchase price of any
Award conferring a right to purchase Stock shall be not less than any specified
percentage of the Fair Market Value of Stock at the date of grant of the Award
then required in order to comply with Rule 16b-3.

         8.       Performance and Annual Incentive Awards.

                  (a) Performance Conditions. The right of a Participant to
exercise or receive a grant or settlement of any Award, and the timing thereof,
may be subject to such performance conditions as may be specified by the
Committee or the Board. The Committee or the Board may use such business
criteria and other measures of performance as it may deem appropriate in
establishing any performance conditions, and may exercise its discretion to
reduce the amounts payable under any Award subject to performance conditions,
except as limited under Sections 8(b) and 8(c) hereof in the case of a
Performance Award or Annual Incentive Award intended to qualify under Code
Section 162(m). At such times as the Company is a Publicly Held Corporation, if
and to the extent required under Code Section 162(m), any power or authority
relating to a Performance Award or Annual Incentive Award intended to qualify
under Code Section 162(m), shall be exercised by the Committee and not the
Board.

                  (b) Performance Awards Granted to Designated Covered
Employees. If and to the extent that the Committee determines that a Performance
Award to be granted to an Eligible Person who is designated by the Committee as
likely to be a Covered Employee should qualify as "performance-based
compensation" for purposes of Code Section 162(m), the grant, exercise and/or
settlement of such Performance Award shall be contingent upon achievement of
preestablished performance goals and other terms set forth in this Section 8(b).

                           (i) Performance Goals Generally. The performance
                  goals for such Performance Awards shall consist of one or more
                  business criteria and a targeted level or levels of
                  performance with respect to each of such criteria, as
                  specified by the Committee consistent with this Section 8(b).
                  Performance goals shall be objective and shall otherwise meet
                  the requirements of Code Section 162(m) and regulations
                  thereunder including the requirement that the level or levels
                  of performance targeted by the Committee result in the
                  achievement of performance goals being "substantially
                  uncertain." The Committee may determine that such Performance
                  Awards shall be granted, exercised and/or settled upon
                  achievement of any one performance goal or that two or more of
                  the performance goals must be achieved as a condition to
                  grant, exercise and/or settlement of such Performance Awards.
                  Performance goals may differ for Performance Awards granted to
                  any one Participant or to different Participants.

                                       12
<PAGE>   16
                           (ii) Business Criteria. One or more of the following
                  business criteria for the Company, on a consolidated basis,
                  and/or specified subsidiaries or business units of the Company
                  (except with respect to the total stockholder return and
                  earnings per share criteria), shall be used exclusively by the
                  Committee in establishing performance goals for such
                  Performance Awards: (1) total stockholder return; (2) such
                  total stockholder return as compared to total return (on a
                  comparable basis) of a publicly available index such as, but
                  not limited to, the Standard & Poor's 500 Stock Index or the
                  S&P Specialty Retailer Index; (3) net income; (4) pretax
                  earnings; (5) earnings before interest expense, taxes,
                  depreciation and amortization; (6) pretax operating earnings
                  after interest expense and before bonuses, service fees, and
                  extraordinary or special items; (7) operating margin; (8)
                  earnings per share; (9) return on equity; (10) return on
                  capital; (11) return on investment; (12) operating earnings;
                  (13) working capital or inventory; and (14) ratio of debt to
                  stockholders' equity. One or more of the foregoing business
                  criteria shall also be exclusively used in establishing
                  performance goals for Annual Incentive Awards granted to a
                  Covered Employee under Section 8(c) hereof that are intended
                  to qualify as "performanced-based compensation under Code
                  Section 162(m).

                           (iii) Performance Period; Timing For Establishing
                  Performance Goals. Achievement of performance goals in respect
                  of such Performance Awards shall be measured over a
                  performance period of up to ten years, as specified by the
                  Committee. Performance goals shall be established not later
                  than 90 days after the beginning of any performance period
                  applicable to such Performance Awards, or at such other date
                  as may be required or permitted for "performance-based
                  compensation" under Code Section 162(m).

                           (iv) Performance Award Pool. The Committee may
                  establish a Performance Award pool, which shall be an unfunded
                  pool, for purposes of measuring Company performance in
                  connection with Performance Awards. The amount of such
                  Performance Award pool shall be based upon the achievement of
                  a performance goal or goals based on one or more of the
                  business criteria set forth in Section 8(b)(ii) hereof during
                  the given performance period, as specified by the Committee in
                  accordance with Section 8(b)(iii) hereof. The Committee may
                  specify the amount of the Performance Award pool as a
                  percentage of any of such business criteria, a percentage
                  thereof in excess of a threshold amount, or as another amount
                  which need not bear a strictly mathematical relationship to
                  such business criteria.

                           (v) Settlement of Performance Awards; Other Terms.
                  Settlement of such Performance Awards shall be in cash, Stock,
                  other Awards or other property, in the discretion of the
                  Committee. The Committee may, in its discretion, reduce the
                  amount of a settlement otherwise to be made in connection with
                  such Performance Awards. The Committee shall specify the
                  circumstances in which such Performance Awards shall be paid
                  or forfeited in the event of termination of

                                       13
<PAGE>   17
                  employment by the Participant prior to the end of a
                  performance period or settlement of Performance Awards.

                  (c) Annual Incentive Awards Granted to Designated Covered
Employees. The Committee may, within its discretion, grant an Annual Incentive
Award to an Eligible Person, subject to the terms and conditions set forth in
this Section 8(c).

                           (i) Annual Incentive Award Pool. The Committee may
                  establish an Annual Incentive Award pool, which shall be an
                  unfunded pool, for purposes of measuring Company performance
                  in connection with Annual Incentive Awards. In the case of
                  Annual Incentive Awards intended to qualify as
                  "performance-based compensation" for purposes of Code Section
                  162(m), the amount of such Annual Incentive Award pool shall
                  be based upon the achievement of a performance goal or goals
                  based on one or more of the business criteria set forth in
                  Section 8(b)(ii) hereof during the given performance period,
                  as specified by the Committee in accordance with Section
                  8(b)(iii) hereof. The Committee may specify the amount of the
                  Annual Incentive Award pool as a percentage of any such
                  business criteria, a percentage thereof in excess of a
                  threshold amount, or as another amount which need not bear a
                  strictly mathematical relationship to such business criteria.

                           (ii) Potential Annual Incentive Awards. Not later
                  than the end of the 90th day of each fiscal year, or at such
                  other date as may be required or permitted in the case of
                  Awards intended to be "performance-based compensation" under
                  Code Section 162(m), the Committee shall determine the
                  Eligible Persons who will potentially receive Annual Incentive
                  Awards, and the amounts potentially payable thereunder, for
                  that fiscal year, either out of an Annual Incentive Award pool
                  established by such date under Section 8(c)(i) hereof or as
                  individual Annual Incentive Awards. In the case of individual
                  Annual Incentive Awards intended to qualify under Code Section
                  162(m), the amount potentially payable shall be based upon the
                  achievement of a performance goal or goals based on one or
                  more of the business criteria set forth in Section 8(b)(ii)
                  hereof in the given performance year, as specified by the
                  Committee; in other cases, such amount shall be based on such
                  criteria as shall be established by the Committee. In all
                  cases, the maximum Annual Incentive Award of any Participant
                  shall be subject to the limitation set forth in Section 5
                  hereof.

                           (iii) Payout of Annual Incentive Awards. After the
                  end of each fiscal year, the Committee shall determine the
                  amount, if any, of (A) the Annual Incentive Award pool, and
                  the maximum amount of potential Annual Incentive Award payable
                  to each Participant in the Annual Incentive Award pool, or (B)
                  the amount of potential Annual Incentive Award otherwise
                  payable to each Participant. The Committee may, in its
                  discretion, determine that the amount payable to any
                  Participant as an Annual Incentive Award shall be reduced from
                  the amount of his or her potential Annual Incentive Award,
                  including a determination to make no Award whatsoever. The
                  Committee shall specify the circumstances in which an Annual
                  Incentive Award shall be paid or forfeited in the event of

                                       14
<PAGE>   18
                  termination of employment by the Participant prior to the end
                  of a fiscal year or settlement of such Annual Incentive Award.

                  (d) Written Determinations. All determinations by the
Committee as to the establishment of performance goals, the amount of any
Performance Award pool or potential individual Performance Awards and as to the
achievement of performance goals relating to Performance Awards under Section
8(b), and the amount of any Annual Incentive Award pool or potential individual
Annual Incentive Awards and the amount of final Annual Incentive Awards under
Section 8(c), shall be made in writing in the case of any Award intended to
qualify under Code Section 162(m). The Committee may not delegate any
responsibility relating to such Performance Awards or Annual Incentive Awards if
and to the extent required to comply with Code Section 162(m).

                  (e) Status of Section 8(b) and Section 8(c) Awards Under Code
Section 162(m). It is the intent of the Company that Performance Awards and
Annual Incentive Awards under Section 8(b) and 8(c) hereof granted to persons
who are designated by the Committee as likely to be Covered Employees within the
meaning of Code Section 162(m) and regulations thereunder shall, if so
designated by the Committee, constitute "qualified performance-based
compensation" within the meaning of Code Section 162(m) and regulations
thereunder. Accordingly, the terms of Sections 8(b), (c), (d) and (e), including
the definitions of Covered Employee and other terms used therein, shall be
interpreted in a manner consistent with Code Section 162(m) and regulations
thereunder. The foregoing notwithstanding, because the Committee cannot
determine with certainty whether a given Participant will be a Covered Employee
with respect to a fiscal year that has not yet been completed, the term Covered
Employee as used herein shall mean only a person designated by the Committee, at
the time of grant of Performance Awards or an Annual Incentive Award, as likely
to be a Covered Employee with respect to that fiscal year. If any provision of
the Plan or any agreement relating to such Performance Awards or Annual
Incentive Awards does not comply or is inconsistent with the requirements of
Code Section 162(m) or regulations thereunder, such provision shall be construed
or deemed amended to the extent necessary to conform to such requirements.

         9.       Change in Control.

                  (a) Effect of "Change in Control." If and to the extent
provided in the Award, in the event of a "Change in Control," as defined in
Section 9(b):

                           (i) The Committee may, within its discretion,
                  accelerate the vesting and exercisability of any Award
                  carrying a right to exercise that was not previously vested
                  and exercisable as of the time of the Change in Control,
                  subject to applicable restrictions set forth in Section 10(a)
                  hereof;

                            (ii) The Committee may, within its discretion,
                  accelerate the exercisability of any limited SARs (and other
                  SARs if so provided by their terms) and provide for the
                  settlement of such SARs for amounts, in cash, determined by
                  reference to the Change in Control Price;

                                       15
<PAGE>   19
                           (iii) The Committee may, within its discretion, lapse
                  the restrictions, deferral of settlement, and forfeiture
                  conditions applicable to any other Award granted under the
                  Plan and such Awards may be deemed fully vested as of the time
                  of the Change in Control, except to the extent of any waiver
                  by the Participant and subject to applicable restrictions set
                  forth in Section 10(a) hereof; and

                           (iv) With respect to any such outstanding Award
                  subject to achievement of performance goals and conditions
                  under the Plan, the Committee may, within its discretion, deem
                  such performance goals and other conditions as having been met
                  as of the date of the Change in Control.

                  (b) Definition of "Change in Control. A "Change in Control"
shall be deemed to have occurred upon:

                           (i) Approval by the shareholders of the Company of a
reorganization, merger, consolidation or other form of corporate transaction or
series of transactions, in each case, with respect to which persons who were the
shareholders of the Company immediately prior to such reorganization, merger or
consolidation or other transaction do not, immediately thereafter, own more than
50% of the combined voting power entitled to vote generally in the election of
directors of the reorganized, merged or consolidated company's then outstanding
voting securities, or a liquidation or dissolution of the Company or the sale of
all or substantially all of the assets of the Company (unless such
reorganization, merger, consolidation or other corporate transaction,
liquidation, dissolution or sale (any such event being referred to as a
"Corporate Transaction") is subsequently abandoned);

                           (ii) Individuals who, as of the date on which the
Award is granted, constitute the Board (the "Incumbent Board") cease for any
reason to constitute at least a majority of the Board, provided that any person
becoming a director subsequent to the date on which the Award was granted whose
election, or nomination for election by the Company's shareholders, was approved
by a vote of at least a majority of the directors then comprising the Incumbent
Board (other than an election or nomination of an individual whose initial
assumption of office is in connection with an actual or threatened election
contest relating to the election of the Directors of the Company, as such terms
are used in Rule 14a-11 of Regulation 14A promulgated under the Securities
Exchange Act) shall be, for purposes of this Agreement, considered as though
such person were a member of the Incumbent Board; or

                           (iii) the acquisition (other than from the Company)
by any person, entity or "group", within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act, of more than 50% of either the then
outstanding shares of the Company's Common Stock or the combined voting power of
the Company's then outstanding voting securities entitled to vote generally in
the election of directors (hereinafter referred to as the ownership of a
"Controlling Interest") excluding, for this purpose, any acquisitions by (1) the
Company or its Subsidiaries, (2) any person, entity or "group" that as of the
date on which the Award is granted owns beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Securities Exchange Act) of a Controlling
Interest or (3) any employee benefit plan of the Company or its Subsidiaries.

                                       16
<PAGE>   20
                  (c) Definition of "Change in Control Price." The "Change in
Control Price" means an amount in cash equal to the higher of (i) the amount of
cash and fair market value of property that is the highest price per share paid
(including extraordinary dividends) in any Corporate Transaction triggering the
Change in Control under Section 9(b)(i) hereof or any liquidation of shares
following a sale of substantially all of the assets of the Company, or (ii) the
highest Fair Market Value per share at any time during the 60-day period
preceding and the 60-day period following the Change in Control.

         10.      General Provisions.

                  (a) Compliance With Legal and Other Requirements. The Company
may, to the extent deemed necessary or advisable by the Committee or the Board,
postpone the issuance or delivery of Stock or payment of other benefits under
any Award until completion of such registration or qualification of such Stock
or other required action under any federal or state law, rule or regulation,
listing or other required action with respect to any stock exchange or automated
quotation system upon which the Stock or other Company securities are listed or
quoted, or compliance with any other obligation of the Company, as the Committee
or the Board, may consider appropriate, and may require any Participant to make
such representations, furnish such information and comply with or be subject to
such other conditions as it may consider appropriate in connection with the
issuance or delivery of Stock or payment of other benefits in compliance with
applicable laws, rules, and regulations, listing requirements, or other
obligations. The foregoing notwithstanding, in connection with a Change in
Control, the Company shall take or cause to be taken no action, and shall
undertake or permit to arise no legal or contractual obligation, that results or
would result in any postponement of the issuance or delivery of Stock or payment
of benefits under any Award or the imposition of any other conditions on such
issuance, delivery or payment, to the extent that such postponement or other
condition would represent a greater burden on a Participant than existed on the
90th day preceding the Change in Control.

                  (b) Limits on Transferability; Beneficiaries. No Award or
other right or interest of a Participant under the Plan, including any Award or
right which constitutes a derivative security as generally defined in Rule
16a-1(c) under the Exchange Act, shall be pledged, hypothecated or otherwise
encumbered or subject to any lien, obligation or liability of such Participant
to any party (other than the Company or a Subsidiary), or assigned or
transferred by such Participant otherwise than by will or the laws of descent
and distribution or to a Beneficiary upon the death of a Participant, and such
Awards or rights that may be exercisable shall be exercised during the lifetime
of the Participant only by the Participant or his or her guardian or legal
representative, except that Awards and other rights (other than ISOs and SARs in
tandem therewith) may be transferred to one or more Beneficiaries or other
transferees during the lifetime of the Participant, and may be exercised by such
transferees in accordance with the terms of such Award, but only if and to the
extent such transfers and exercises are permitted by the Committee or the Board
pursuant to the express terms of an Award agreement (subject to any terms and
conditions which the Committee or the Board may impose thereon, and further
subject to any prohibitions or restrictions on such transfers pursuant to Rule
16b-3). A Beneficiary, transferee, or other person claiming any rights under the
Plan from or through any Participant shall be subject to all terms and
conditions of the Plan and any Award agreement applicable to

                                       17
<PAGE>   21
such Participant, except as otherwise determined by the Committee or the Board,
and to any additional terms and conditions deemed necessary or appropriate by
the Committee or the Board.

                  (c) Adjustments. In the event that any dividend or other
distribution (whether in the form of cash, Stock, or other property),
recapitalization, forward or reverse split, reorganization, merger,
consolidation, spin-off, combination, repurchase, share exchange, liquidation,
dissolution or other similar corporate transaction or event affects the Stock
such that a substitution or adjustment is determined by the Committee or the
Board to be appropriate in order to prevent dilution or enlargement of the
rights of Participants under the Plan, then the Committee or the Board shall, in
such manner as it may deem equitable, substitute or adjust any or all of (i) the
number and kind of shares of Stock which may be delivered in connection with
Awards granted thereafter, (ii) the number and kind of shares of Stock by which
annual per-person Award limitations are measured under Section 5 hereof, (iii)
the number and kind of shares of Stock subject to or deliverable in respect of
outstanding Awards and (iv) the exercise price, grant price or purchase price
relating to any Award and/or make provision for payment of cash or other
property in respect of any outstanding Award. In addition, the Committee (and
the Board if and only to the extent such authority is not required to be
exercised by the Committee to comply with Code Section 162(m)) is authorized to
make adjustments in the terms and conditions of, and the criteria included in,
Awards (including Performance Awards and performance goals, and Annual Incentive
Awards and any Annual Incentive Award pool or performance goals relating
thereto) in recognition of unusual or nonrecurring events (including, without
limitation, events described in the preceding sentence, as well as acquisitions
and dispositions of businesses and assets) affecting the Company, any Subsidiary
or any business unit, or the financial statements of the Company or any
Subsidiary, or in response to changes in applicable laws, regulations,
accounting principles, tax rates and regulations or business conditions or in
view of the Committee's assessment of the business strategy of the Company, any
Subsidiary or business unit thereof, performance of comparable organizations,
economic and business conditions, personal performance of a Participant, and any
other circumstances deemed relevant; provided that no such adjustment shall be
authorized or made if and to the extent that such authority or the making of
such adjustment would cause Options, SARs, Performance Awards granted under
Section 8(b) hereof or Annual Incentive Awards granted under Section 8(c) hereof
to Participants designated by the Committee as Covered Employees and intended to
qualify as "performance-based compensation" under Code Section 162(m) and the
regulations thereunder to otherwise fail to qualify as "performance-based
compensation" under Code Section 162(m) and regulations thereunder.

                  (d) Taxes. The Company and any Subsidiary is authorized to
withhold from any Award granted, any payment relating to an Award under the
Plan, including from a distribution of Stock, or any payroll or other payment to
a Participant, amounts of withholding and other taxes due or potentially payable
in connection with any transaction involving an Award, and to take such other
action as the Committee or the Board may deem advisable to enable the Company
and Participants to satisfy obligations for the payment of withholding taxes and
other tax obligations relating to any Award. This authority shall include
authority to withhold or receive Stock or other property and to make cash
payments in respect thereof in satisfaction of a Participant's tax obligations,
either on a mandatory or elective basis in the discretion of the Committee.

                                       18
<PAGE>   22
                  (e) Changes to the Plan and Awards. The Board may amend,
alter, suspend, discontinue or terminate the Plan, or the Committee's authority
to grant Awards under the Plan, without the consent of stockholders or
Participants, except that any amendment or alteration to the Plan shall be
subject to the approval of the Company's stockholders not later than the annual
meeting next following such Board action if such stockholder approval is
required by any federal or state law or regulation (including, without
limitation, Rule 16b-3 or Code Section 162(m)) or the rules of any stock
exchange or automated quotation system on which the Stock may then be listed or
quoted, and the Board may otherwise, in its discretion, determine to submit
other such changes to the Plan to stockholders for approval; provided that,
without the consent of an affected Participant, no such Board action may
materially and adversely affect the rights of such Participant under any
previously granted and outstanding Award. The Committee or the Board may waive
any conditions or rights under, or amend, alter, suspend, discontinue or
terminate any Award theretofore granted and any Award agreement relating
thereto, except as otherwise provided in the Plan; provided that, without the
consent of an affected Participant, no such Committee or the Board action may
materially and adversely affect the rights of such Participant under such Award.
Notwithstanding anything in the Plan to the contrary, if any right under this
Plan would cause a transaction to be ineligible for pooling of interest
accounting that would, but for the right hereunder, be eligible for such
accounting treatment, the Committee or the Board may modify or adjust the right
so that pooling of interest accounting shall be available, including the
substitution of Stock having a Fair Market Value equal to the cash otherwise
payable hereunder for the right which caused the transaction to be ineligible
for pooling of interest accounting.

                  (f) Limitation on Rights Conferred Under Plan. Neither the
Plan nor any action taken hereunder shall be construed as (i) giving any
Eligible Person or Participant the right to continue as an Eligible Person or
Participant or in the employ of the Company or a Subsidiary; (ii) interfering in
any way with the right of the Company or a Subsidiary to terminate any Eligible
Person's or Participant's employment at any time, (iii) giving an Eligible
Person or Participant any claim to be granted any Award under the Plan or to be
treated uniformly with other Participants and employees, or (iv) conferring on a
Participant any of the rights of a stockholder of the Company unless and until
the Participant is duly issued or transferred shares of Stock in accordance with
the terms of an Award.

                  (g) Unfunded Status of Awards; Creation of Trusts. The Plan is
intended to constitute an "unfunded" plan for incentive and deferred
compensation. With respect to any payments not yet made to a Participant or
obligation to deliver Stock pursuant to an Award, nothing contained in the Plan
or any Award shall give any such Participant any rights that are greater than
those of a general creditor of the Company; provided that the Committee may
authorize the creation of trusts and deposit therein cash, Stock, other Awards
or other property, or make other arrangements to meet the Company's obligations
under the Plan. Such trusts or other arrangements shall be consistent with the
"unfunded" status of the Plan unless the Committee otherwise determines with the
consent of each affected Participant. The trustee of such trusts may be
authorized to dispose of trust assets and reinvest the proceeds in alternative
investments, subject to such terms and conditions as the Committee or the Board
may specify and in accordance with applicable law.

                                       19
<PAGE>   23
                  (h) Nonexclusivity of the Plan. Neither the adoption of the
Plan by the Board nor its submission to the stockholders of the Company for
approval shall be construed as creating any limitations on the power of the
Board or a committee thereof to adopt such other incentive arrangements as it
may deem desirable including incentive arrangements and awards which do not
qualify under Code Section 162(m).

                  (i) Payments in the Event of Forfeitures; Fractional Shares.
Unless otherwise determined by the Committee or the Board, in the event of a
forfeiture of an Award with respect to which a Participant paid cash or other
consideration, the Participant shall be repaid the amount of such cash or other
consideration. No fractional shares of Stock shall be issued or delivered
pursuant to the Plan or any Award. The Committee or the Board shall determine
whether cash, other Awards or other property shall be issued or paid in lieu of
such fractional shares or whether such fractional shares or any rights thereto
shall be forfeited or otherwise eliminated.

                  (j) Governing Law. The validity, construction and effect of
the Plan, any rules and regulations under the Plan, and any Award agreement
shall be determined in accordance with the laws of the state in which the
Company is incorporated without giving effect to principles of conflicts of
laws, and applicable federal law.

                  (k) Plan Effective Date and Stockholder Approval; Termination
of Plan. The Plan shall become effective on the Effective Date, subject to
subsequent approval within 12 months of its adoption by the Board by
stockholders of the Company eligible to vote in the election of directors, by a
vote sufficient to meet the requirements of Code Sections 162(m) (if applicable)
and 422, Rule 16b-3 under the Exchange Act (if applicable), applicable NASDAQ
requirements, and other laws, regulations, and obligations of the Company
applicable to the Plan. Awards may be granted subject to stockholder approval,
but may not be exercised or otherwise settled in the event stockholder approval
is not obtained. The Plan shall terminate at such time as no shares of Common
Stock remain available for issuance under the Plan and the Company has no
further rights or obligations with respect to outstanding Awards under the Plan.

1185345.1

                                       20<PAGE>   1
                                                                    Exhibit 10.1

                            RESTRICTED UNIT AGREEMENT

         This Restricted Unit Agreement (the "Agreement"), made this 28th day of
February, 2000, by and among SpinCycle, Inc., a Delaware corporation (the
"Company"), E-Wash, Inc., a Delaware corporation, and its successors and assigns
("E-Wash"), E-Wash, LLC, a Delaware limited liability company, and its
successors and assigns ("Limited"), and ________________________, an employee of
the Company (hereinafter called the "Employee");

                              W I T N E S S E T H:

         WHEREAS, E-Wash, as of the date hereof, is a wholly-owned subsidiary of
the Company; and

         WHEREAS, Limited, as of the date hereof, is a wholly-owned subsidiary
of E-Wash; and

         WHEREAS, the Board of Directors of the Company has determined it to be
in the best interest of the Company to issue restricted units in Limited to
certain key executives of the Company in order to provide such executives which
an additional stake in the growth and prosperity of Limited and to encourage
them to continue serving the Company; and

         WHEREAS, the issuance of such units is subject to the terms and
conditions as set forth in this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
of the parties hereto, it is agreed as follows:

1. Issuance of Units. Subject to the provisions of Section 11 hereof, Limited
hereby issues to the Employee and the Employee accepts _______ Units (the
"Units") of Limited, subject to the restrictions, terms and conditions set forth
in this Agreement. In exchange for such Units, the Employee shall or has
contributed to the capital of Limited the amount set forth on Exhibit A of the
Limited Liability Company Agreement of Limited opposite the Employee's name.

2.

3. Restrictions. Notwithstanding any provisions of the Limited Liability Company
Agreement of Limited, while any Units are subject to the forfeiture provisions
described in Section 4 below (the "Restricted Units"), the Employee may not
directly or indirectly, by operation of law or otherwise, voluntarily or
involuntarily, anticipate, alienate, attach, sell, assign, pledge, encumber,
charge or otherwise transfer any Restricted Units.

4.

5. Award Date. The effective date of issuance of the Units to the Employee (the
"Award Date") shall be February 28, 2000.
<PAGE>   2
6. Restrictions and Restricted Period.

7.

8. (a) Units shall be issued in the name of the Employee upon the execution by
the Employee of this Agreement, and shall be evidenced on the books and records
of Limited. One-third of the Units issued herein shall be free of any transfer
or forfeiture restrictions set forth in Sections 2 and 4 of this Agreement as of
the Award Date.

9.

10. (b) If the Employee terminates service with the Company, or the Company
terminates the service of the Employee for any reason whatsoever prior to the
first anniversary of the Award Date, two-thirds of the Units issued to the
Employee herein shall be forfeited and void, and the cash capital contribution
paid by the Employee in respect of such forfeited Restricted Units shall be
returned to the Employee. If the Employee is in the employ of the Company on the
first anniversary of the award date, an additional one-third of the Units
granted to the Employee herein shall be free of all restrictions contained in
this Agreement.

11.

12. (c) If the Employee terminates service with the Company, or the Company
terminates the service of the Employee for any reason whatsoever after the first
anniversary of the Award Date but prior to the second anniversary of the Award
Date, one-third of the Units shall be forfeited and void, and the cash capital
contribution paid by the Employee in respect of such forfeited Restricted Units
shall be returned to the Employee. If the Employee is in the employ of the
Company on the second anniversary of the Award Date, all restrictions with
respect to all Units covered by this Agreement shall lapse.

13.

14. (d) Notwithstanding the foregoing provisions of this Section 4, all
forfeiture and transfer restrictions with respect to the Units (other than as
provided in Section 9 hereof) shall lapse (i) upon the death or permanent and
total disability of the Employee; (ii) if the Company exercises its "Bring-Along
Rights" described in Section 7 hereof; or (iii) if there is a "Change in
Control."

15.

16. A "Change in Control" shall mean:

17.

                           (i) The acquisition by any individual, entity or
         group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
         Securities Exchange Act of 1934, as amended (the "1934 Act")) of the
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the 1934 Act) of 50% or more of the combined voting power of all
         of the then outstanding voting classes or series of units of Limited
         (the "Outstanding Voting Units"); provided, however, that the following
         acquisitions shall not constitute a Change of Control: (A) any
         acquisition directly from Limited or any of its subsidiaries, (B) any
         acquisition by Limited or any of its subsidiaries, (C) any acquisition
         by any employee benefit plan (or related trust) sponsored or maintained
         by Limited or any of its subsidiaries, (D) any acquisition by any
         corporation with respect to which, following such acquisition, more
         than 50% of, respectively, the then outstanding shares of common stock
         of such corporation and the combined voting power of the then
         outstanding voting securities of such corporation entitled to vote
         generally in the election of directors is then beneficially owned,
         directly or indirectly, by individuals, entities or groups who were the
         beneficial owners, respectively, of at least 50% of the Outstanding
         Voting Units

                                       2
<PAGE>   3
         immediately prior to such acquisition in substantially the same
         proportions as their ownership, immediately prior to such acquisition,
         of the Outstanding Voting Units, or (E) the acquisition of Outstanding
         Voting Units by any individual, entity or group which on the Award Date
         owned 50% or more of the Outstanding Voting Units;

                           (ii) Approval by the holders of a majority of the
         Units of Limited of a reorganization, merger or consolidation, in each
         case, with respect to which all or substantially all of the individuals
         and entities who were the beneficial owners, respectively, of the
         Outstanding Voting Units immediately prior to such reorganization,
         merger or consolidation do not, following such reorganization, merger
         or consolidation, beneficially own, directly or indirectly, more than
         50% of the combined voting power of the then outstanding voting
         securities entitled to vote generally in the election of directors, as
         the case may be, of the corporation resulting from or surviving such
         reorganization, merger or consolidation in substantially the same
         proportions as their ownership, immediately prior to such
         reorganization, merger or consolidation, of the Outstanding Voting
         Units; or

                           (iii) Approval by the requisite vote of the
         shareholders of E-Wash of (A) a complete liquidation or dissolution of
         Limited or (B) the sale or other disposition of all or substantially
         all of the assets of Limited other than to a corporation, with respect
         to which following such sale or other disposition, more than 50% of the
         then outstanding shares of common stock of such company and the
         combined voting power for the then outstanding voting securities of
         such company entitled to vote is then beneficially owned, directly or
         indirectly, by all or substantially all of the individuals and entities
         who were the beneficial owners of the Outstanding Voting Units
         immediately prior to such sale or other disposition in substantially
         the same proportion as their ownership, immediately prior to such sale
         or other disposition, of the Outstanding Voting Units.

                  (e) For the purpose of this Section 4, a transfer of
employment from the Company to E-Wash or Limited shall not be deemed a
termination of employment with the Company.

1. Custody of Restricted Units; Tax Withholding; Voting and Dividends.

2.

3. (a) Restricted Units. The Restricted Units will be registered in the name of
the Employee. All indicia of ownership representing Restricted Units shall be
retained by the Company.

4.

5. (b) Voting Rights. The Employee will have all rights of a member of Limited
with respect to voting of the Restricted Units.

6. (c) Distributions. All distributions of profits and losses, cash flow and
capital interests made with respect to the Restricted Units shall, with respect
to record dates on or after the Award Date, be distributed to the Employee in
accordance with the Limited Liability Company Agreement of E-Wash, LLC, as
amended from time to time (the "Operating Agreement").

7.

                                       3
<PAGE>   4
8. Piggyback Registration Rights. In the event that as a result of a merger or
other reorganization of Limited such that the Employee's Units are exchanged for
shares of stock of E-Wash, E-Wash grants to the Employee the following
registration rights with respect to such E-Wash shares:

9.
                  (a) (i) Incidental Rights. If at any time after six months
         after the completion of an underwritten initial public offering by
         E-Wash on a firm commitment basis, E-Wash proposes to register, on any
         form which may be used for the registration of its common stock, other
         than Forms S-4 or S-8 (or any successor or similar forms then in
         effect), any of its securities under the Securities Act of 1933, as
         amended (the "Securities Act"), whether or not pursuant to registration
         rights granted to other holders of its securities and whether or not
         for sale for its own account, in a manner which would permit
         registration of common stock for sale to the public under the
         Securities Act, E-Wash will each such time give written notice to the
         Employee of its intention to do so and of Employee's rights under this
         Section 6; such notice to be given to Employee at least twenty (20)
         days prior to the initial filing of such proposed registration
         statement. Upon the written request of the Employee made within fifteen
         (15) days after the giving of any such notice (which request shall
         specify the number of shares intended to be disposed of by the Employee
         and the intended method or methods of disposition thereof), E-Wash will
         use its reasonable efforts to effect the registration under the
         Securities Act of the "Registerable Amount" (as defined in 6(b) hereof)
         of Common Stock which E-Wash has been so requested to register by the
         Employee, to the extent necessary to permit the disposition (in
         accordance with the intended methods thereof as aforesaid) of the
         common stock so to be registered. Promptly upon notification to E-Wash
         from the managing underwriter of the price at which the shares of
         common stock requested to be registered pursuant to this Section 6 are
         to be sold, E-Wash shall advise the Employee of such price, and if such
         price is below the price which Employee shall have indicated to be
         acceptable to the Employee, the Employee shall then have the right to
         withdraw its request to have its shares included in such registration
         statement.

                           (ii) Not Deemed a Demand Registration. No
         registration effected pursuant to this Section 6 shall be deemed to be
         a demand registration right. Any registration rights granted hereunder
         shall be subordinate to any demand registration rights hereafter
         granted by E-Wash to others.

                           (iii) Holdback. If E-Wash previously shall have
         received a request for registration from a shareholder having demand
         registration rights or under this Section 6, and if such previous
         registration shall not have been withdrawn or abandoned, E-Wash will
         not be required to effect any registration of any of its securities
         under the Securities Act, whether or not for sale for its own account,
         until a period of ninety (90) days shall have elapsed from the
         effective date of such previous registration.

                           (iv) Discontinuance. Notwithstanding anything to the
         contrary in this Section 6, E-Wash shall have the right to discontinue
         any registration under this Section 6 at any time prior to the
         effective date of such registration, if the registration of other
         securities giving rise to such registration under this Section 6 is
         discontinued; but no such

                                       4
<PAGE>   5
         discontinuation shall preclude an immediate or subsequent request for
         registration pursuant to this Section 6.

                           (v) Termination of Piggyback Rights. The provisions
         of this Section 6 shall expire as to any shares at such time as the
         Employee may sell shares in E-Wash without the need for registration
         under the federal securities laws.

                  (b) Registerable Amount. For the purpose of this Section 6,
the "Registerable Amount" means the maximum number of shares of common stock of
E-Wash issued to the Employee in exchange for the Units granted under this
Agreement which the Employee is eligible to sell in any registration covered by
this Section 6. The Registerable Amount is expressed as a fraction, the
numerator of which will be the number of shares issued to Employee in exchange
for the Units granted under this Agreement and held by the Employee at the time
of the public registration and the denominator of which shall be the number of
shares of such common stock held by other holders of common stock having
registration rights pari passu with the Employee's rights. If the registration
is an underwritten registration, and the managing underwriter gives written
notice to E-Wash that in its reasonable opinion the number of shares of common
stock of E-Wash to be included in the registration should be less than the
aggregate number of shares of common stock that E-Wash, the Employee and all
other eligible holders of such common stock have proposed to include in such
registration, then E-Wash shall have first priority to include in such
registration all shares of common stock it proposes to register. If such amount
does not exceed the maximum number of shares which the underwriter has
reasonably determined can be registered in the offering, then the remaining
number of shares (the "Available Amount") shall be allocated among the Employee
and the other holders of common stock proposing to register securities in the
offering by multiplying the Available Amount by a fraction, the numerator of
which shall be the number of shares each of the eligible participants owns and
the denominator of which is the total number of shares owned by all eligible
participants. E-Wash shall have the exclusive right to select the managing
underwriters in such registration. For the purposes of this paragraph (b), if
there is no underwriter for an offering, then the determinations to be
reasonably made by the managing underwriter hereunder shall be made by the
E-Wash board of directors.

                  (c) Hold-back Agreements. The Employee agrees, if so required
by the managing underwriter, not to effect any public sale or distribution of
securities of E-Wash of the same class as the securities included in such
registration statement, during the seven (7) days prior to the date on which any
underwritten registration has become effective and the one-hundred eighty (180)
days (or such longer period as shall have been agreed to by E-Wash and the
managing underwriters with respect to such registration statement) thereafter,
except as part of such underwritten registration. E-Wash agrees not to effect
any public sale or distribution of its equity securities or securities
convertible into or exchangeable or exercisable for any of such securities
during the seven (7) days prior to and ninety (90) days after any underwritten
registration has become effective, except as part of such underwritten
registration.

                  (d) Public Offering by Limited. All rights granted to Employee
in this Section 6 shall be effective with respect to Limited in the event that
Limited becomes a publicly traded company rather than E-Wash.

                                       5
<PAGE>   6
1. Bring-Along Right. For so long as the Company owns at least 33.33% of E-Wash
or Limited, if the Company or E-Wash proposes to make a bona fide sale in a
private offering of all of its E-Wash shares or of Limited units, the Company
and/or E-Wash shall have the right (the "Bring-Along Right"), but not the
obligation, exercisable upon 15 days' prior written notice, to require the
Employee to sell his Units to such third party upon terms no less favorable to
the Employee than those that apply to the Company or E-Wash with respect to such
third party sale. In such case, so long as the Employee has not been terminated
immediately prior to the closing of the proposed sale, all restrictions
contained in Sections 2 and 4 applicable to any Restricted Units shall lapse.
The Employee hereby agrees to cooperate with the Company or E-Wash and to take
any and all action reasonably required in connection with the consummation of
such third party sale. Without limiting the foregoing, at the closing of any
sale under this Section, the Employee shall represent and warrant that he is the
beneficial owner of such Units free and clear of any liens or encumbrances with
full power and authority to transfer such shares.

2.

3. Tag-Along Right. For so long as the Company owns at least 33.33% of E-Wash or
Limited, in the event that the Company or E-Wash (the "Purchase Offer
Recipient") shall receive a bona fide offer to purchase less than all shares of
E-Wash or Limited units (a "Purchase Offer"), the Purchase Offer Recipient shall
either decline such Purchase Offer or, if the Purchase Offer Recipient
determines to accept such Purchase Offer, then, prior to accepting any Purchase
Offer, arrange for the proposed purchaser to make, in addition to the Purchase
Offer, a bona fide offer to purchase from the Employee, and all other similarly
situated persons, upon the same terms as the Purchase Offer, units of Limited
owned by such parties, including the Employee (the "Tag Along Rights") in the
proportion and otherwise as described in the second succeeding sentence (the
"Unit Purchase Offer"). In the event a Unit Purchase Offer is made, the Purchase
Offer Recipient shall give the Employee written notice thereof (the "Notice")
specifying (i) the number of Units that the Employee may sell, and (ii) the
terms (including the price and the proposed date of consummation thereof) of
such Unit Purchase Offer. Upon receipt of the Notice, the Employee shall have
the right to sell that number of Units owned by him and which are not then
Restricted Units equal to (A) the product of (a) the total number of Limited
units proposed to be purchased in the Purchase Offer, the Unit Purchase Offer
and similar offers being made to other members of Limited concurrently with the
Purchase Offer, and (b) a fraction, the numerator of which shall be the number
of Tag-Along Units (as defined below) owned by the Employee and the denominator
of which shall be the number of shares of Limited units owned by the Purchase
Offer Recipient plus the number of shares of Tag-Along Units owned by all
members electing to participate in such sale. For purposes of the foregoing,
"Tag-Along Units" shall mean all units of Limited outstanding on the date of the
Sale. The Tag-Along Right may be exercised by the Employee by delivery, not
later than 5 days after receipt of the Notice, of a written notice (the
"Tag-Along Notice") to the Purchase Offer Recipient, which shall state the
maximum number of Units which are not Restricted Units that the Employee wishes
to include in such sale to the purchaser. The Employee shall participate in any
purchase specified in the Notice on the terms set forth therein (or on terms no
less favorable to the Employee) and as provided in the Tag-Along Notice during
the 90-day period following the date of the Notice. Any purchases following such
90-day period shall require a new Notice.

                                       6
<PAGE>   7
1. Restrictions in Operating Agreement. The rights and obligations of the
Employee as a member of Limited and the restrictions and rights as a holder of
Units, including transfer restrictions, are further governed by the terms of the
Operating Agreement.

1. Effect of Reclassification, etc., of Units. In the event of reclassification,
recapitalization, reorganization, merger, consolidation or combination such that
the holders of Units receive a different security in exchange for their Units,
then notwithstanding the provisions of Section 2, hereof, the Employee may
exchange his Units for shares of the same class of security which other holders
of Limited's Units receive, and the rights, restrictions, terms and conditions
of this Agreement shall apply to the securities received by the Employee to the
same extent as provided herein with respect to the Units.

2.

3. Shareholder Approval. Notwithstanding any provision of this Agreement to the
contrary, the issuance of Units contained herein is subject to the approval
within 12 months of the Award Date by the holders of the requisite majorities of
all three classes of preferred stock of the Company as required in the
agreements relating to the purchase of Series A, B and C Convertible Preferred
Stock in the Company, as those agreements have been amended to date. In the
event that such shareholder approval is not obtained, the issuance of Units
shall be forfeited on the first anniversary of the Award Date. In case of
forfeiture, the capital cash contribution paid by the Employee for the Units
shall be returned to the Employee.

4.

5. Entire Understanding. This Agreement constitutes the entire understanding
between the parties relating to the matters described herein (other than
Limited's Limited Liability Company Agreement which is incorporated herein by
this reference) and supercedes and cancels all prior written and oral
understandings and agreements with respect to such matters.

6.

7. Binding Effect. This Agreement shall be binding upon and inure to the benefit
of the employees, executors, administrators, legal representatives, heirs and
legatees of the Employee and the successors and assigns of the Company.

8.

9. Employment Rights. Nothing contained in this Agreement shall confer upon
Employee any right with respect to the continuance of employment by the Company
or any related company, nor interfere in any way with the right of the Company
or any related company to terminate the Employee's employment at any time for
any reason.

10.

11. Governing Law. This Agreement shall be governed by, and interpreted,
construed and enforced in accordance with the laws of the State of Arizona.

12.

13.

14. IN WITNESS WHEREOF, the Company, E-Wash, Limited, and the Employee have
caused this Restricted Unit Agreement to be executed as of the day and year
first above written.

15.

16.

17. SPINCYCLE, INC.

18.

                                       7
<PAGE>   8
19.                                          By /s/ Peter Ax

20.

21.

22.                                          E-WASH, INC.
23.

24.                                          By /s/ Peter Ax
25.
26.

27.                                          E-WASH, LLC
28.

29.                                          By /s/ Peter Ax
30.
31.

32.                                          EMPLOYEE:
33.
34.
35.                                          Print Name:
36.
37.      263777.5

                                       8

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