Sample Business Contracts

Loan Agreement - Arabian Shield Development Co. and Sheikh Kamal Adham

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                   10830 NORTH CENTRAL EXPRESSWAY, SUITE 175
                              DALLAS, TEXAS  75231

                                 (214) 692-7872

                                     24 August, 1995

His Excellency Sheikh Kamal Adham

Your Excellency:

         In accordance with instructions of HRH Prince Talal Ben Abdulaziz to
me on 10 July, 1995, who approved my proposal for raising the funds urgently
needed now for working capital from the biggest concerned shareholders of the
company, as presented to His Highness in my letter to him of 7 July, 1995
(attached here), it is requested that you deposit in the company's account
$123,000 (one hundred twenty three thousand).  This amount is a loan from you
to the company, and will carry a libor + 2% interest.  You have the option to
transform this loan, and all accumulated interest, at any time within five
years from now, to shares of this company's common stock at one dollar ($1) per

         If funds are raised form the private placement of one million shares,
as is anticipated shortly, you will be repaid the above loan in full plus all
accumulated interest, immediately upon receipt of those funds.  However, your
option to purchase 123,000 shares of the company's common stock during the next
five years will remain in force.

         The period of the loan, otherwise, is for two years from now, and will
be paid to you on demand, with all accumulated interest after that period.

         The company's account numbers are as follows:

                 Arabian Shield Development Company
                 Saudi American Bank, Jeddah Branch
                 Jeddah, Saudi Arabia
                 $ account no: 5401623
                 S.R. account no.: 4400135

                                        Very truly yours,

                                        Hatem El-Khalidi, President

Agreed to:

By: ___________________


P.S. I have already deposited my share of $53,000 in the company's account in