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                                                                    EXHIBIT 10.8


                             BILLING CONCEPTS CORP.

                     1996 EMPLOYEE COMPREHENSIVE STOCK PLAN
                        (AMENDED AS OF FEBRUARY 26, 1998)


         1. PURPOSE. The purpose of this 1996 Employee Comprehensive Stock Plan,
as amended (the "Plan"), is to further the success of Billing Concepts Corp., a
Delaware corporation (the "Company"), and certain of its affiliates by making
available Common Stock of the Company to certain officers and employees of the
Company and its affiliates, and thus to provide an additional incentive to such
individuals to continue in the service of the Company or its affiliates and to
give them a greater interest as stockholders in the success of the Company.
Subject to compliance with the provisions of the Plan and the Code, Incentive
Stock Options as authorized by Section 422 of the Code and stock options which
do not qualify under Section 422 of the Code are authorized and may be granted
under the Plan. Further, the Company may grant Restricted Stock, as defined
below.

         2. DEFINITIONS. As used in this Plan the following terms shall have the
meanings indicated:

                  (a) "Award" means an award of stock options (including
Incentive Stock Options) or Restricted Stock, on a stand alone, combination or
tandem basis, as described in or granted under this Plan.

                  (b) "Award Agreement" means a written agreement setting forth
the terms of an Award, in the form prescribed by the Committee.

                  (c) "Board" means the Board of Directors of the Company.

                  (d) "Cause" shall mean, in the context of the termination of a
Participant, as determined by the Board, in the reasonable exercise of its
business judgment the occurrence of one of the following events: (i) conviction
of or a plea of nolo contendere to a charge of a felony (which, through lapse of
time or otherwise, is not subject to appeal); (ii) willful refusal without
proper legal cause to perform, or gross negligence in performing, Participant's
duties and responsibilities; (iii) material breach of fiduciary duty to the
Company through the misappropriation of Company funds or property or otherwise;
or (iv) the unauthorized absence of Participant from work (other than for sick
leave or disability) for a period of thirty working days or more during any
period of forty-five working days; provided, further, within one year following
a Change of Control, "Cause" shall be limited to the conviction of or a plea of
nolo contendere to the charge of a felony (which, through lapse of time or
otherwise, is not subject to an appeal), or a material breach of fiduciary duty
to the Company through the misappropriation of Company funds or property or
otherwise.

                  (e) "Change of Control" shall be deemed to have occurred if
(i) any "Person" (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) is or becomes a


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"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing more than 30% of the
combined voting power of the Company's then outstanding voting securities, or
(ii) at any time during the 24-month period after a tender offer, merger,
consolidation, sale of assets or contested election, or any combination of such
transactions, at least a majority of the Board shall cease to consist of
"continuing directors" (meaning directors of the Company who either were
directors prior to such transaction or who subsequently became directors and
whose election, or nomination for election by the Company's stockholders, was
approved by a vote of at least two thirds of the directors then still in office
who were directors prior to such transaction), or (iii) the stockholders of the
Company approve a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation that would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least 70% of the total voting
power represented by the voting securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation, or (iv) the
stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement of sale or disposition by the Company of all or
substantially all of the Company's assets.

                  (f) "Code" means the Internal Revenue Code of 1986, as
amended.

                  (g) "Committee" means the Committee administering the Plan
described in Section 3 hereof.

                  (h) "Common Stock" means the Company's common stock, par value
$.01 per share.

                  (i) "Continuous Status as an Employee" means that the
employment relationship with any one or more of (i) the Company, (ii) any
Parent, (iii) any Subsidiary or (iv) USLD has not been terminated or
interrupted.

                  (j) "Date of Grant" means the date on which an Award is
granted under an Award Agreement executed by the Company and a Participant
pursuant to the Plan.

                  (k) "Disinterested Person" means a "disinterested person" as
such term is defined in Rule 16b-3 promulgated under the Exchange Act or any
successor provision.

                  (l) "Effective Date" means the effective date of this Plan
specified in Section 14 hereof.

                  (m) "Exchange Act" means the Securities Exchange Act of 1934,
as it may be amended from time to time.

                  (n) "Good Reason" shall mean the occurrence of any of the
following events: (a) removal from the principal office held by the Participant
on the date of the most recent Award, or a material reduction in the
Participant's authority or responsibility, including, without limitation,
involuntary removal from the Board, but not including termination of the
Participant 

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for Cause; or (b) the Company otherwise commits a material breach of this Plan,
or the Participant's employment agreement, if applicable; provided, however,
that within one year following a Change of Control, "Good Reason" shall mean (i)
removal from the principal office held by the Participant on the date of the
most recent Award, (ii) a material reduction in the Participant's authority or
responsibility, including, without limitation, involuntary removal from the
Board, (iii) relocation of the Company's headquarters from the San Antonio,
Texas metropolitan area but not including termination of the Participant for
cause, (iv) a material reduction in the Participant's compensation, or (v) the
Company otherwise commits a material breach of this Plan, or the Participant's
employment agreement, if applicable.

                  (o) "Incentive Stock Option" means an option qualifying under
Section 422 of the Code.

                  (p) "Parent" means a parent corporation of the Company as 
defined in Section 424(e) of the Code.

                  (q) "Participants" means the employees and officers of the
Company, its Subsidiaries and its Parent (including those directors of the
Company who are also employees of the Company, its Parent or one or more of its
Subsidiaries). "Participants" includes the USLD Participants.

                  (r) "Restricted Period" shall mean the period designated by
the Committee during which Restricted Stock may not be sold, assigned,
transferred, pledged, or otherwise encumbered, which period shall not be less
than one year nor more than two years from the Date of Grant.

                  (s) "Restricted Stock" shall mean those shares of Common Stock
issued pursuant to an Award that remain subject to the Restricted Period.

                  (t) "Retained Distributions" shall mean any securities or
other property (other than cash dividends) distributed by the Company or
otherwise received by the holder in respect of Restricted Stock during any
Restricted Period.

                  (u) "Retirement" shall mean retirement of a Participant from
the employ of the Company, its Parent, its Subsidiaries or USLD, as the case may
be, in accordance with the then existing employment policies of any such
employer.

                  (v) "Subsidiary" means a subsidiary corporation of the Company
as defined in Section 424(f) of the Code.

                  (w) "USLD" means U.S. Long Distance Corp. and its Subsidiaries
 and any Parent of USLD.

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                  (x) "USLD Participants" means the employees and officers of
USLD who are or were employees and officers of USLD prior to and immediately
following the distribution of the Company Common Stock by USLD to the
stockholders of USLD.

         3. ADMINISTRATION OF THE PLAN. The Board shall appoint a committee (the
"Committee") comprised of two or more directors to administer the Plan. Only
directors who are Disinterested Persons shall be eligible to serve as members of
the Committee. The Committee shall report all action taken by it to the Board,
which shall review and ratify or approve those actions that are by law required
to be so reviewed and ratified or approved by the Board. The Committee shall
have full and final authority in its discretion, subject to the provisions of
the Plan, to make determinations with respect to the participation of
Participants in this Plan, to prescribe the form of Award Agreements embodying
Awards made under the Plan, and, except as otherwise required by law or this
Plan, to set the size and terms of Awards (which need not be identical or
consistent with respect to each Participant) including vesting schedules, price,
whether stock options granted hereunder shall constitute an Incentive Stock
Option, restriction or option period, post-retirement and termination rights,
payment alternatives such as cash, stock or other means of payment consistent
with the purposes of this Plan, and such other terms and conditions as the
Committee deems appropriate. Except as otherwise required by this Plan, the
Committee shall have authority to interpret and construe the provisions of this
Plan and the Award Agreements, to correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any Award Agreement in the manner
the Committee deems advisable for the administration of the Plan and make
determinations pursuant to any Plan provision or Award Agreement, which shall be
final and binding on all persons. The Committee may authorize any one or more of
their number or any officer of the Company to execute and deliver documents on
behalf of the Committee.

         4. COMMON STOCK SUBJECT TO PROVISIONS OF THIS PLAN. The Common Stock
subject to the provisions of this Plan shall either be shares of authorized but
unissued Common Stock, shares of Common Stock held as treasury stock or
previously issued shares of Common Stock reacquired by the Company, including
shares purchased in the open market. Subject to adjustment in accordance with
the provisions of Section 11, the aggregate number of shares of Common Stock
available for grant of Awards (including, without limitation, Awards of
Restricted Stock) shall not exceed Ten Million Five Hundred Thousand
(10,500,000). If any part of an Award under this Plan shall be forfeited, the
shares of Common Stock subject to the forfeited portion of such Award shall
again be available for grant under the Plan.

         5. ELIGIBILITY. Except as hereinafter provided, Awards may be granted
to any Participant as the Committee shall determine from time to time. In
determining the Participants to whom Awards shall be granted and the number of
shares to be covered by each such Award, the Committee may take into account the
nature of the services rendered by the respective Participants, their present
and potential contributions to the Company's success and such other factors as
the Committee in its sole discretion shall deem relevant. A Participant who has
been granted an Award under the Plan may be granted an additional Award or
Awards under the Plan, in the Committee's sole discretion.

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         6. AWARDS UNDER THIS PLAN. The Committee, in its sole discretion, may
make Awards of stock options (including Incentive Stock Options and stock
options that do not qualify as Incentive Stock Options) as described in Sections
7 and 8 hereof, and of Restrictive Stock, as described in Section 10 hereof.

         7. OPTIONS AUTHORIZED. The options subject to Award under this Plan may
be Incentive Stock Options or stock options that do not qualify as Incentive
Stock Options (sometimes referred to herein as "nonqualified options" or
"nonqualified stock options"). The Committee shall have the full power and
authority to (i) determine which options shall be nonqualified stock options and
which shall be Incentive Stock Options, (ii) grant only Incentive Stock Options
or, alternatively, only nonqualified stock options, and (iii) in its sole
discretion, grant to the holder of an outstanding option, in exchange for the
surrender and cancellation of such option, a new option having a purchase price
lower than that provided in the option so surrendered and canceled and/or
containing such other terms and conditions as the Committee may prescribe in
accordance with the provisions of the Plan. Under no circumstances may
nonqualified stock options be granted where the exercise of such nonqualified
stock options may affect the exercise of Incentive Stock Options granted
pursuant to the Plan. No options may be granted under the Plan prior to the
Effective Date. In addition to any other limitations set forth herein, (1) no
Participant shall receive any grant of options, whether Incentive Stock Options
or nonqualified stock options, exercisable for more than one hundred fifty
thousand (150,000) shares of Common Stock during any one fiscal year of the
Company and (2) the aggregate fair market value (determined in accordance with
Paragraph 8(a) of the Plan as of the time the option is granted) of the Common
Stock with respect to which Incentive Stock Options are exercisable for the
first time by a Participant in any calendar year (under all plans of the Company
and of any Parent or Subsidiary) shall not exceed $100,000.

         8. TERMS AND CONDITIONS OF OPTIONS. The grant of an option under the
Plan shall be evidenced by an Award Agreement executed by the Company and the
applicable Participant and shall contain such terms and be in such form as the
Committee may from time to time approve, subject to the following limitations
and conditions:

                  (a) Option Price. The option exercise price per share with
respect to each option shall be determined by the Committee, but shall in no
instance be less than the par value of the shares subject to the option. In
addition, the option exercise price per share with respect to Incentive Stock
Options granted hereunder shall in no instance be less than the fair market
value of the shares subject to the option as determined by the Committee. For
the purposes of this Paragraph 8(a), fair market value shall be, where
applicable, the closing price of the Common Stock on the Date of Grant of such
option as reported on any national securities exchange on which the Common Stock
may be listed. If the Common Stock is not listed on a national securities
exchange but is publicly traded on the NASDAQ Stock Market's National Market or
on another automated quotation system, the fair market value shall be the
closing price of the Common Stock on the Date of Grant, or if traded on the
NASDAQ Small Cap or NASDAQ Over-The-Counter market, the fair market value shall
be the mean between the closing bid and ask prices on any such system or market.
If the Common Stock was not traded on the Date of Grant of such option, the
nearest preceding date on which there was a trade shall be substituted.

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Notwithstanding the foregoing, however, fair market value shall be determined
consistent with Code Section 422(b)(4) or any successor provisions. The
Committee may permit the option exercise price to be payable by transfer to the
Company of Common Stock owned by the option holder with a fair market value at
the time of the exercise equal to the option exercise price.

                  (b) Period of Option. The expiration date of each option shall
be fixed by the Committee, but notwithstanding any provision of the Plan to the
contrary, such expiration date shall not be more than ten (10) years from the
Date of Grant of the option.

                  (c) Vesting of Stockholder Rights. Neither the optionee nor
his successor in interest shall have any of the rights of a stockholder of the
Company until the shares relating to the option hereunder are issued by the
Company and are properly delivered to such optionee, or successor.

                  (d) Exercise of Option. Each option shall be exercisable from
time to time (but not less than six (6) months after the Date of Grant) over
such period and upon such terms and conditions as the Committee shall determine,
but not at any time as to less than one hundred (100) shares unless the
remaining shares that have become so purchasable are less than one hundred (100)
shares. After the death of the optionee, an option may be exercised as provided
in Section 9(c) hereof.

                  (e) Disqualifying Disposition. The Award Agreement evidencing
any Incentive Stock Options granted under this Plan shall provide that if the
optionee makes a disposition, within the meaning of Section 424(c) of the Code
and regulations promulgated thereunder, of any share or shares of Common Stock
issued to him pursuant to exercise of the option within the two-year period
commencing on the day after the Date of Grant of such option or within the
one-year period commencing on the day after the date of issuance of the share or
shares to him pursuant to the exercise of such option, he shall, within ten (10)
days of such disposition date, notify the Company of the sales price or other
value ascribed to or used to measure the disposition of the share or shares
thereof and immediately deliver to the Company any amount of federal income tax
withholding required by law.

                  (f) Limitation on Grants to Certain Stockholders. An Incentive
Stock Option may be granted to a Participant only if such Participant, at the
time the option is granted, does not own, after application of the attribution
rules of Code Section 424, stock possessing more than ten percent (10%) of the
total combined voting power of all classes of Common Stock of the Company or of
its Parent or Subsidiary. The preceding restrictions shall not apply if at the
time the option is granted the option price is at least one hundred ten percent
(110%) of the fair market value (as defined in Section 8(a) above) of the Common
Stock subject to the option and such option by its terms is not exercisable
after the expiration of five (5) years from the Date of Grant.

                  (g) Restriction on Issuing Shares. The exercise of each option
shall be subject to the condition that if at any time the Company shall
determine in its discretion that the satisfaction of withholding tax or other
withholding liabilities, or that the listing, registration, or qualification of
any shares otherwise deliverable upon such exercise upon any securities 

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exchange or under any state or federal law, or that the consent or approval of
any regulatory body, is necessary or desirable as a condition of, or in
connection with, such exercise or the delivery or purchase of shares pursuant
thereto, then in any such event, such exercise shall not be effective unless
such withholding, listing, registration, qualification, consent, or approval
shall have been effected or obtained free of any conditions not acceptable to
the Company.

                  (h) Consistency with Code. Notwithstanding any other provision
in this Plan to the contrary, the provisions of all Award Agreements relating to
Incentive Stock Options pursuant to the Plan shall not violate the requirements
of the Code applicable to the Incentive Stock Options authorized hereunder.

         9. EXERCISE OF OPTION.

                  (a) Any option granted hereunder shall be exercisable
according to the terms of the Plan and at such times and under such conditions
as determined by the Committee and set forth in the Award Agreement. An option
shall be deemed exercised when (i) the Company has received written notice of
such exercise in accordance with the terms of the Award Agreement, (ii) full
payment of the aggregate option exercise price of the shares as to which the
option is exercised has been made and (iii) arrangements that are satisfactory
to the Committee in its sole discretion have been made for the Participant's
payment to the Company of the amount, if any, that the Committee determines to
be necessary for the Company to withhold in accordance with applicable federal
or state income tax withholding requirements.

                  (b) Upon Retirement or other termination of the Participant's
Continuous Status as an Employee, other than (a) a termination that is either
(i) for Cause or (ii) voluntary on the part of a Participant and without the
written consent of the Company, a Parent, any Subsidiary or USLD or (b) a
termination by reason of death, the Participant may (unless otherwise provided
in his Award Agreement) exercise his option at any time within three (3) months
after such termination of the Participant's Continuous Status as an Employee (or
within one (1) year after termination of the Participant's Continuous Status as
an Employee due to permanent and total disability within the meaning of Code
Section 22(e)(3)), or within such other time as the Committee shall authorize,
but in no event may the Participant exercise his Option after ten (10) years
from the Date of Grant thereof (or such lesser period as may be specified in the
Award Agreement), and only to the extent of the number of shares for which his
options were exercisable by him at the date of the termination of the
Participant's Continuous Status as an Employee. In the event of the termination
of the Continuous Status as an Employee of a Participant to whom an option has
been granted under the Plan that is either (i) for Cause or (ii) voluntary on
the part of the Participant and without written consent, any option held by him
under the Plan, to the extent not previously exercised, shall forthwith
terminate on the date of such termination of the Participant's Continuous Status
as an Employee. Options granted under the Plan shall not be affected by any
change of employment so long as the holder continues to be an employee of the
Company, a Subsidiary or a Parent, or with respect to a USLD Participant, USLD.
The Award Agreement may contain such provisions as the Committee shall approve
with respect to the effect of approved leaves of absence.

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                  (c) In the event a Participant to whom an option has been
granted under the Plan dies during, or within three (3) months after the
Retirement or other termination of, the Participant's Continuous Status as an
Employee, such option (unless it shall have been previously terminated pursuant
to the provisions of the Plan or unless otherwise provided in his Award
Agreement) may be exercised (to the extent of the entire number of shares
covered by the option whether or not purchasable by the Participant at the date
of his death) by the executor or administrator of the optionee's estate or by
the person or persons to whom the optionee shall have transferred such option by
will or by the laws of descent and distribution, at any time within a period of
one (1) year after his death, but not after the exercise termination date set
forth in the relevant Award Agreement.

                  (d) If as of the date of termination of the Participant's
Continuous Status as an Employee (other than as a result of the Participant's
death) the Participant is not entitled to exercise his entire options, the
shares of Common Stock covered by the unexercisable portion of the option shall
revert to the Plan. If the Participant (or his designee or estate as provided in
Section 9(c) above) does not exercise his options within the time specified in
the Plan and the Award Agreement, the unexercised options shall terminate and
the shares of Common Stock covered by such options shall revert to the Plan.

         10. TERMS AND CONDITIONS OF RESTRICTED STOCK AWARDS.

                  (a) General. The Committee, in its sole discretion, may make
Awards of Restricted Stock to selected Participants, which Awards shall be
evidenced by an Award Agreement that contains such terms and conditions,
including vesting, as the Committee may determine. As a condition to any Award
of Restricted Stock hereunder, the Committee may require a Participant to pay to
the Company the amount (such as the par value of such shares) required to be
received by the Company in order to assure compliance with applicable state law.
Any Award of Restricted Stock for which such requirement is established shall
automatically expire if not purchased in accordance with the Committee's
requirements within sixty (60) days after the Date of Grant.

                  Subject to the terms and conditions of the respective Award
Agreement, the Participant, as the owner of the Common Stock issued as
Restricted Stock and any Retained Distributions with respect thereto, shall have
the rights of a stockholder, including, but not limited to, voting rights as to
such Common Stock and the right to receive cash dividends or distributions
thereon when, as and if paid.

                  Within the limits set forth in the Plan, an Award of
Restricted Stock may be subject to such vesting requirements as may be fixed by
the Committee. Vesting may be accelerated by a Change of Control. Vesting may
also be accelerated upon death, permanent disability or Retirement.

                  Unless otherwise provided in the Award Agreement, in the event
that an Award of Restricted Stock is made to a Participant whose employment or
service is subsequently terminated by reason of death, permanent disability or
Retirement or for such other reason as the 

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Committee may provide, such Participant (or his estate or beneficiary) will be
entitled to receive such additional portion of his Restricted Stock and any
Retained Distributions with respect thereto that the Participant would have
received had the Participant remained in the employment of the Company, Parent,
Subsidiary or USLD, as applicable, through the date on which the next portion of
the shares of unvested Restricted Stock subject to the Award of Restricted
Shares would have vested.

                  Unless otherwise provided in the Award Agreement, in the event
an Award of Restricted Stock is made to a Participant whose employment with the
Company, Parent, Subsidiary or USLD, as applicable, is subsequently terminated
by the Participant for Good Reason or by the Company, Parent, Subsidiary or
USLD, as applicable, other than for Cause, then in any such event, the
Participant will be entitled to receive such additional portion of his shares of
Restricted Stock and any Retained Distributions with respect thereto that the
Participant would have received had the Participant remained in the employment
of the Company, Parent, Subsidiary or USLD, as applicable, through the date on
which the next portion of the shares of unvested Restricted Stock subject to the
Award of Restricted Stock would have vested.

                  Unless otherwise provided in the Award Agreement, in the event
that an Award of Restricted Stock is made to a Participant who subsequently
voluntarily resigns or whose employment is terminated for Cause, then all such
Restricted Stock and any Retained Distributions with respect thereto as to which
the Restricted Period still applies shall be forfeited by such Participant and
shall again become available for grant under the Plan.

                  (b) Transferability. Restricted Stock and any Retained
Distributions with respect thereto may not be sold, assigned, transferred,
pledged, or otherwise encumbered during the Restricted Period, which shall be
determined by the Committee and shall not be less than one year nor more than
two years from the date such Restricted Stock was awarded. The Committee may, at
any time, reduce the Restricted Period with respect to any outstanding shares of
Restricted Stock and any Retained Distributions with respect thereto awarded
under the Plan.

                  Shares of Restricted Stock, when issued, will be represented
by a stock certificate or certificates registered in the name of the Participant
to whom such Restricted Stock shall have been granted and shall bear a
restrictive legend to the effect that ownership of such Restricted Stock (and
any related Retained Distributions) and the enjoyment of all rights appurtenant
thereto are subject to the restrictions, terms and conditions provided in the
Plan and the applicable Award Agreement. Each certificate shall be deposited by
the Participant with the Company, together with stock powers or other
instruments of assignment, each endorsed in blank, which will permit transfer to
the Company of all or any portion of the Restricted Stock and any securities
constituting Retained Distributions that shall be forfeited or that shall not
become vested in accordance with the respective Award Agreement. The certificate
or certificates issued for the Restricted Stock may bear such legend or legends
as the Committee may, from time to time, deem appropriate to reflect the
restrictions under the Plan for such Restricted Stock.

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                  (c) Stock Certificates; Additional Restrictions. Shares of
Restricted Stock shall constitute issued and outstanding shares of Common Stock
for all corporate purposes. Each Participant will have the right to vote the
Restricted Stock held by such Participant, to receive and retain all cash
dividends and distributions thereon and exercise all other rights, powers and
privileges of a holder of Common Stock with respect to such Restricted Stock,
with the exception that:

                           (i) the Participant will not be entitled to delivery
of the stock certificate or certificates representing such Restricted Stock
until the Restricted Period applicable to such shares or portion thereof shall
have expired and unless all other vesting requirements with respect thereto
shall have been fulfilled;

                           (ii) other than cash dividends and distributions and
rights to purchase stock which might be distributed to stockholders of the
Company, the Company will retain custody of all Retained Distributions made,
paid, declared or otherwise received by the holder thereof with respect to
Restricted Stock (and such Retained Distributions will be subject to the same
restrictions, terms and conditions as are applicable to the Restricted Stock
with respect to which they were made, paid or declared) until such time, if
ever, as the Restricted Period applicable to the shares with respect to which
such Retained Distributions shall have been made, paid, declared or received
shall have expired, and such Retained Distributions shall not bear interest or
be segregated in separate accounts; and

                           (iii) upon the breach of any restrictions, terms or
conditions provided in the Plan or the respective Award Agreement or otherwise
established by the Committee with respect to any Restricted Stock or Retained
Distributions, such Restricted Stock and any related Retained Distributions
shall thereupon be automatically forfeited.

                  (d) Mergers and Other Corporate Changes. Unless otherwise
provided in the Award Agreement, upon the occurrence of a Change of Control, all
restrictions imposed on the Participant's Restricted Stock and any Retained
Distributions shall automatically terminate and lapse and the Restricted Period
shall automatically terminate; provided, however, that if the Change of Control
occurs within six (6) months of the Date of Grant the restrictions and
Restricted Period shall terminate on the six (6)-month anniversary of the Date
of Grant.

         11. ADJUSTMENTS. The Committee, in its discretion, may make such
adjustments in the option price, the number or kind of shares and other
appropriate provisions covered by outstanding Awards that are required to
prevent any dilution or enlargement of the rights of the holders of such options
that would otherwise result from any reorganization, recapitalization, stock
split, stock dividend, combination of shares, merger, consolidation, issuance of
rights or any other change in the capital structure of the Company. The
Committee, in its discretion, may also make such adjustments in the aggregate
number and class of shares that may be the subject of Awards which are
appropriate to reflect any transaction or event described in the preceding
sentence.

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         12. AMENDMENT, SUSPENSION AND TERMINATION OF THE PLAN. The Board may,
at any time, amend or terminate the Plan. Unless sooner terminated hereunder,
the Plan shall terminate ten (10) years after the Effective Date. No amendment,
suspension or termination of the Plan shall, without a Participant's consent,
impair or negate any of the rights or obligations under any Award theretofore
granted to such Participant under the Plan.

         13. TAX WITHHOLDING. The Company shall have the right to withhold from
any payments made under this Plan, or to collect as a condition of payment, any
taxes required by law to be withheld. At any time when a Participant is required
to pay to the Company an amount required to be withheld under applicable income
tax laws in connection with a distribution of shares of Common Stock pursuant to
this Plan, the Participant may satisfy this obligation in whole or in part by
electing to have the Company withhold from such distribution shares of Common
Stock having a value equal to the amount required to be withheld. The value of
the shares of Common Stock to be withheld shall be based on the fair market
value, as determined pursuant to Section 8(a) hereof, of the Common Stock on the
date that the amount of tax to be withheld shall be determined (the "Tax Date").
Any such election is subject to the following restrictions: (i) the election
must be made on or prior to the Tax Date; (ii) the election must be irrevocable;
and (iii) the election must be subject to the disapproval of the Committee. To
the extent required to comply with rules promulgated under Section 16 of the
Exchange Act, elections by Participants who are subject to Section 16 of the
Exchange Act are subject to the following additional restrictions: (i) no
election shall be effective for a Tax Date which occurs within six (6) months of
the grant of the Award; and (ii) the election must be made either (a) six (6)
months or more prior to the Tax Date or (b) during the period beginning on the
third business day following the date of release for publication for the
Company's quarterly or annual summary statements of sales and earnings and
ending on the twelfth business day following such date.

         14. EFFECTIVE DATE OF THE PLAN. This Plan shall become effective on the
date (the "Effective Date") of the last to occur of (i) the adoption of the Plan
by the Board and (ii) the approval, within twelve (12) months of such adoption,
by a majority (or such other proportion as may be required by state law) of the
outstanding voting shares of the Company, voted either in person or by proxy, at
a duly held stockholders meeting or by written stockholder consent but in any
event not before the effectiveness of the Company's Form 10 Registration
Statement filed under the Exchange Act.

         15. SPECIAL PROVISIONS REGARDING CHANGE OF CONTROL. The Board or the
Committee may, from time to time, make special provisions for one or more
Participants respecting a possible Change of Control of the Company, a
Subsidiary, Parent or USLD, and, to the extent that any such special provisions
made with the consent of the affected employee may have the effect of
accelerating vesting of stock options granted under the Plan or removal of
restrictions on Restricted Stock allotted under the Plan or the effect of
preventing a termination or dilution of benefits, such special provisions shall
be controlling over and shall be deemed to be an amendment of any inconsistent
terms of the applicable Award Agreement.

                                      -11-
<PAGE>   12

         16. MISCELLANEOUS PROVISIONS.

                  (a) If approved by the Board, the Company or any Parent or
Subsidiary may lend money or guarantee loans by third parties to an individual
to finance the exercise of any option granted under the Plan to continue to hold
Common Stock thereby acquired. No such loans to finance the exercise of an
Incentive Stock Option shall have an interest rate or other terms that would
cause any part of the principal amount to be characterized as interest for
purposes of the Code.

                  (b) This Plan is intended and has been drafted to comply in
all respects with Rule 16b-3, as amended, under the Exchange Act ("Rule 16b-3").
If any provision of this Plan does not comply with Rule 16b-3, this Plan shall
be automatically amended to comply with Rule 16b-3.

                  (c) No person shall have any claim or right to be granted an
Award, and the grant of an Award shall not be construed as giving a Participant
the right to be retained in the employ of the Company, a Parent, a Subsidiary or
USLD. Nothing in this Plan shall interfere with or limit in any way the right of
the Company, a Parent, any Subsidiary or USLD to terminate any Participant's
employment at any time, nor confer upon any Participant any right to continue in
the employ of the Company, a Parent, any Subsidiary or USLD.

                  (d) To the extent that federal laws do not otherwise control,
this Plan shall be construed in accordance with and governed by the laws of the
State of Delaware or the property laws of any particular state.

                  (e) In case any one or more of the provisions of this Plan
shall be held invalid, illegal or unenforceable in any respect under applicable
law and regulation (including Rule 16b-3), the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby and the invalid, illegal or unenforceable provisions shall be
deemed null and void; however, to the extent permissible by law, any provision
which could be deemed null and void shall first be construed, interpreted or
revised retroactively to permit this Plan to be construed in compliance with all
applicable laws (including Rule 16b-3) so as to foster the intent of this Plan.
Notwithstanding anything in this Plan to the contrary, the Committee, in its
sole and absolute discretion, may bifurcate this Plan so as to restrict, limit
or condition the use of any provision of this Plan to Participants who are
subject to Section 16 of the Exchange Act without so restricting, limiting or
conditioning this Plan with respect to other Participants.

                  (f) None of a Participant's rights or interests under the Plan
may be assigned or transferred in whole or in part, either directly or by
operation of law or otherwise (except pursuant to a qualified domestic relations
order or, in the event of a Participant's death, by will or the laws of descent
and distribution), including, but not by way of limitation, execution, levy,
garnishment, attachment, pledge, bankruptcy or in any other manner, and no such
right or interest of any Participant in the Plan shall be subject to any
obligation or liability of such individual.

                                       -12-
<PAGE>   13
                  (g) No Restricted Stock or any Retained Distributions shall be
issued hereunder unless counsel for the Company shall be satisfied that such
issuance will be in compliance with applicable federal, state, or other
securities laws.

                  (h) The expenses of the Plan shall be borne by the Company.

                  (i) By accepting any Award under the Plan, each Participant or
beneficiary claiming under or through him shall be conclusively deemed to have
indicated his acceptance and ratification of, and consent to, any action taken
under the Plan by the Company, the Committee or the Board.

                  (j) Awards granted under the Plan shall be binding upon the 
Company, its successors and assigns.

                  (k) The appropriate officers of the Company shall cause to be
filed any reports, returns, or other information regarding Awards hereunder or
any Common Stock issued pursuant hereto as may be required by Section 13 or
15(d) of the Exchange Act, or any other applicable statute, rule or regulation.

                  (l) Nothing contained in this Plan shall prevent the Board of
Directors from adopting other or additional compensation arrangements, subject
to stockholder approval if such approval is required.

                                      -13-