Document:

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                                                                   EXHIBIT 10(c)

                             Mining Lease Agreement

Preamble:

This lease is granted in accordance with the provisions of the Mining Code of
the Kingdom of Saudi Arabia issued under Royal Decree No. M/21 dated 20.05.1392
A.H., its Executive Regulations, directives and any amendments thereto.

Article 1
The above preamble is considered as an integral part of the Lease.

Article 2
1. "Code" designates the Mining Code of the Kingdom of Saudi Arabia issued
under Royal Decree No. M/21 dated 20.05.1392 A.H.

2. (Lessee) designates Arabian Shield Development Company (formed in accordance
with U.S. laws, with headquarters in Dallas, Texas, or any natural person or
entity to which the rights granted by this lease can be transferred to it in
accordance with Article (49) of the Code.

3. (Minerals) designates any natural ones which the lessee has the right to
exploit.

4. (Lease Area) designates the area of the lease located in the area of Al
Masane mine in the Southern part of the Kingdom of Saudi Arabia, with an area
of 44 square kilometers as shown in the map accompanying this lease agreement
(Appendix I), and which is considered as an integral part of this agreement.

5. (Products) designates the ore which can be treated in any way.

6. (Year and month) designates the Hejira year and its [illegible].

7. (Ministry) designates the Ministry of Petroleum and Mineral Resources of
Saudi Arabia.

Article 3
The Lease includes zinc, lead, gold and associated minerals found in the ore,
excluding radioactive minerals and the minerals excluded by Article (2) of the
Code.

Article 4
The Lease confers upon Lessee the exclusive right to produce and exploit the
minerals specified in Article (3) within the Lease area by way of drilling,
mining, concentration, smelting, and refining; to carry away, transport,
export, and sell them in their original or refined form: and to
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construct, operate, and maintain all mines, buildings, railroads, highways,
pipelines, refineries and treatment plants, communication systems, power
plants, and other facilities necessary or convenient for the purpose of the
Lease. The enjoyment of all these rights is subject to conformance with the
provisions of the Mining Code and other laws in force.

Article 5

The lease is for an initial period of 30 years starting with the date of the
Royal Decree, by which the mining lease is issued. The Lessee shall have the
right to extend the period of the lease after the expiration of the initial
period for a period or periods which do not exceed another 20 years, taking
into regard the current codes then, and provided that the lessee has fulfilled
all his obligations with respect to the lease, the Code and its regulations and
any changes made thereto.

Article 6

Lessee shall pay to the Ministry a surface rental for the duration of the lease
at the rate of 10,000 Saudi Riyals per year per square kilometer or part
thereof. Payment will be made in advance each year starting from the issuance
of the Royal Decree.

Article 7

Lessee shall undertake the implementation of the work plan of Appendix 2
attached to this agreement, and shall present the Ministry reports as follows:

1. Report every six months in the construction stage and until the beginning of
commercial production outlining progress of work and expenditures.

2. Yearly reports during commercial production, including all statistics
associated with production, and any anticipated changes in the planned
production schedule or in exploration. Such reports should be presented within
a month after it is due. The lessee shall also provide the ministry with any
other information requested. The Ministry shall take all measures to insure that
all such reports and information shall not be given to third parties to protect
the commercial interests of the lessee.

Article 8

The lessee undertakes to carry out all operations under the lease in accordance
with modern techniques, economically appropriate and recognized by the mining
industry, and shall avoid to the extent practical, waste or loss of natural
resources. Moreover, production of minerals shall not mean extracting the most
valuable only at the expense of the other minerals in the ore.
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The lessee shall take all necessary precautions and measures throughout all
operations related to the lease, to safeguard and protect the environment from
any hazardous waste and any other environmental damage, in accordance with the
rules and regulations of environmental protection then in force in the Kingdom
of Saudi Arabia. When the surface of the land is damaged, it should be restored
to its original contours to the extent possible and reasonable.

Article 9
The lessee undertakes to execute all his obligations prescribed in the lease
with diligence and accuracy, under the general supervision of the Ministry and
in accordance with the programs of construction and operation agreed upon with
the Ministry. Lessee also undertakes to produce the minerals specified in the
lease and to maintain production at the highest level that the ore reserves and
market can support. Lessee also undertakes to observe the safety requirements
and prevent waste.

Article 10
Lessee undertakes to give priority in employment to qualified Saudi citizens.

Lessee also undertakes to have the percentage of Saudi citizens and their wage
scales in accordance of what the Minister of Labor and Social Welfare
decides in agreement with the Minister of Petroleum and Mineral Resources.

Lessee shall prepare and implement a special program for the training of Saudi
employees in different kinds of work in the project including administrative
and technical work.

Article 11
Lessee undertakes to provide the necessary security for all his installations
in the lease area in accordance with accepted procedures followed in this
respect.

Article 12
The Lessee undertakes in to bear the costs of all the infrastructure
necessary for the mine, such as electricity, roads, water, dams and any
other services required for this work, and undertakes to use his best efforts
to develop the lease area.

Article 13
The Ministry reserves the right to enter the lease area to make sure that the
Lessee is fulfilling his obligations in the right manner agreed upon, by
sending its representatives to the lease area to look at the commercial
operations performed. The Lessee shall cooperate with the ministry and its
representatives in this matter and give them all help needed.
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The Ministry has the right to perform work it deems necessary provided in the
area that such work does not hinder the work of the lessee.

Article 14

Without prejudice to the rules and regulations for the use of explosives
within the Kingdom of Saudi Arabia, the Ministry will assist the Lessee to
obtain the necessary permits to use such explosives as may be necessary to
carry out the program of work specified in the lease.  The Lessee undertakes to
comply with the applicable laws of the Kingdom of Saudi Arabia regulating the
use of explosives.

Article 15

Lessee shall have all the rights vested in him by virtue of the Code in respect
of export and sale of the production, provided that the State shall at all
items retain priority if it so wishes to purchase from the Lessee the whole
production of gold or any part thereof.  The State also reserves the right to
purchase a maximum of ten percent (10%) of his annual production of other
minerals, on the same terms and conditions then available to other similar
buyers, and at current prices then prevailing in the free market.  For purpose
of reserving the state's right of priority, the Lessee shall notify the
Ministry in writing at sufficient notice of the amount of production he wishes
to sell every year, so as to enable the state to declare its willingness to
purchase any such amount by written notice to the Lessee three (3) months
before the beginning of the Lessee's financial year.

Article 16

The Lessee has the right to select his suppliers and contractors, on condition
that the Lessee undertakes to give preference to local suppliers and
contractors who can provide goods and services of similar quality upon
acceptable terms.

Article 17

The Lessee undertakes to appoint a chartered accountant, to be chosen by the
Lessee from members of the profession authorized to practice in the Kingdom.
He also undertakes to establish a financial department in the Kingdom for the
purposes of maintaining all necessary financial statements, records and
accounting in accordance with practices used in commercial mining operations.
Lessee shall provide the Ministry with the reports of the chartered accountants
and other reports asked for by the Ministry.

Article 18

The Lessee undertakes to repay the loan which had been granted to it by the
Ministry of Finance and National Economy on 26/2/1399, amounting to $11 million
in accordance
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with agreement with the Ministry of Finance and National Economy.

Article 19

Without prejudice to the exemption from income tax set forth in Article (46) of
the Code, Lessee shall pay income tax in accordance with the income tax laws
then in force in the Kingdom of Saudi Arabia.

Article 20

When the profitability of the project is established, the Lessee shall undertake
the formation of a Saudi Public Stock Company with the Petroleum and Mineral
Organization (PETROMIN), where the Lessee shall subscribe to 50% of the shares,
and PETROMIN to no more than 25%. The remainder of the shares shall be put out
for public subscription. The title of the lease shall then be transferred to the
public stock company. The Ministry shall follow the implementation of the above.

Article 21

Lessee shall be exempt from import and export duties for all equipment imported
for the implementation of the Lease, and unless resold in the Kingdom of Saudi
Arabia, lessee may re-export such equipment. If sold within the Kingdom, customs
duties payable thereof shall be calculated on the value of the equipment at the
time, and according to its condition.

Article 22

Any disputes between the Lessee and the Ministry, which cannot be settled
amicably, shall be settled in accordance with Saudi Codes.

Article 23

No provisions of the lease may be construed in such a manner that it confers
upon the Lessee the ownership of any part of the land within the Lease area, or
grants the Lessee any other rights except those explicitly defined in the Lease
and Code.

                  Minister of Petroleum and Mineral Resources

                  Hisham Muhialdin Nazer.

The Lessee agrees to all provisions of the lease above, and shall abide by them,
and abide by all provisions of the Mining Code, and any amendments thereof.

                  Arabian Shield Development Company,

                  By: Hatem El-Khalidi<PAGE>   1

                                                                   EXHIBIT 10(d)

                                STOCK OPTION PLAN
                                       OF
                       ARABIAN SHIELD DEVELOPMENT COMPANY

          This Stock Option Plan (the "Plan") is designed to provide for the
granting of options to key employees, including key employees who are officers
or directors, of Arabian Shield Development Company (the "Company") and its
subsidiaries. The purposes of the Plan are to provide an incentive for such key
employees to remain with the Company or its subsidiaries, to provide an
opportunity for them to acquire a proprietary interest in the Company so that
they will devote their best efforts for the benefit of the Company and to aid
the Company and its subsidiaries in attracting able persons to enter their
employ.

                                   DEFINITIONS

          As used in the Plan, the following terms shall, unless the context
otherwise requires, have the respective meanings set forth below:

          (a) "Code" shall mean the Internal Revenue Code of 1954, as amended.

          (b) "Common Stock" shall mean the Common Stock, par value $.10 per
          share, of the Company or the other kind(s) of securities which shall
          be substituted for Common Stock or to which Common Stock shall be
          adjusted in accordance with Section 3.6 of the Plan. "Shares" shall
          mean shares of Common Stock or shares or units of such other kinds of
          securities.

          (c) "Committee" shall mean the Compensation Committee of the Board of
          Directors of the Company which shall consist of three or more members
          of the Board of Directors, each of whom shall be selected by and serve
          at the pleasure of the Board of Directors and shall be a
          "disinterested person" (as that term is defined in Rule 16b-3 under
          the Securities Exchange Act of 1934, as amended).

          (d) "Fair Market Value" on any date shall mean (i) the closing sale
          price per share of Common Stock on the principal national securities
          exchange on which it is

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          listed on such date or if there be no sales reported on such date, on
          the most recently preceding business day on which a sale is reported,
          (ii) if the Common Stock is not then listed on any national securities
          exchange, the median of the average final bid and average final asked
          prices for a share of Common Stork in the over-the-counter market on
          such date, as reported by the National Association of Securities
          Dealers Automated Quotations System (NASDAQ) or (iii) if the Common
          Stock is not then listed on any national securities exchange or quoted
          on NASDAQ, the amount reasonably determined by the Committee to be the
          Fair Market Value per share of Common Stock on such date.

          (e) "Incentive Stock Option" shall mean a stock option that meets the
          requirements of Section 422A of the Code.

          (f) "Non-Incentive Stock Option" shall mean a stock option that is
          not an Incentive Stock Option.

          (g) "Parent", as to a company, shall mean any corporation that owns,
          directly or indirectly, stock possessing more than 50% of the voting
          power of all classes of stock of such company.

          (h) "Securities" shall mean shares of Common Stock of the Company
          acquired upon exercise of options and any securities issued in respect
          of such shares.

          (i) "Subsidiary", as to a company, shall mean any corporation if
          stock possessing more than 50% of the voting power of all classes of
          stock of such corporation is owned, directly or indirectly, by such
          company.

                                I. ADMINISTRATION

          Section 1.1 Administration. The Plan shall be administered by the
Committee. The Committee from time to time may prescribe, amend and rescind such
rules, regulations, provisions and procedures, consistent with the terms of the
Plan, as, in its opinion, may be advisable in the administration of the Plan and
shall determine the provisions, which shall be consistent with the terms of the
Plan but need not be identical, of the respective agreements required by Section
1.5 of the Plan, including, without limitation, provisions (a) specifying the
term, and period or periods

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and extent of exercisability, of options, (b) imposing, and specifying the
nature and extent of, restrictions, if any, upon disposition of any Securities,
(c) specifying the circumstances, if any, under which all or part of any
Securities may be required to be forfeited and surrendered to the Company (and
the consideration, if any, to be paid by the Company for any such Securities
forfeited and surrendered) and (d) specifying the extent and times of lapse of
any such restrictions or risks of forfeiture. The Committee shall have the
authority, in its discretion, to construe and interpret the Plan and such
respective agreements and to make all other determinations necessary or
advisable for administering the Plan. A majority of the Committee shall
constitute a quorum, and the acts of a majority of the members present at any
meeting at which a quorum is present, or acts approved in writing by all members
of the Committee, shall be the acts of the Committee, unless provisions to the
contrary are embodied in the Company's Bylaws or resolutions duly adopted by the
Board of Directors. All actions taken and decisions or determinations made by
the Committee pursuant to the Plan shall be binding and conclusive on all
persons interested in the Plan. No member of the Committee shall be liable for
any action, decision or determination taken or made in good faith with respect
to the Plan or any option granted under it.

          Section 1.2 Eligibility. Those individuals who become employees of the
Company and its Subsidiaries (including officers and directors thereof if they
are such employees) and who, consistent with the purposes of the Plan, are
selected by the Committee, shall be eligible to be granted options, provided,
however, that no such employee who, immediately after the grant of an option,
would own (within the meaning of Section 425(d) of the Code) stock possessing
more than 10% of the combined voting power of all classes of the Company or any
Parent or Subsidiary of the Company shall be eligible to be granted options.
From such eligible employees, the Committee shall, from time to time, choose
those, if any, to whom options shall be granted. More than one option may be
granted to the same person. The adoption of the Plan shall not be deemed to give
any person a right to be granted any option.

          Section 1.3 Shares Available. The Board of Directors shall reserve for
the purposes of the Plan, out of the authorized but unissued shares of Common
Stock or out of shares of Common Stock held in the Company's Treasury, or partly
out of each, as shall be determined by the Board of

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Directors, a total of 250,000 shares of such Common Stock. Any shares delivered
upon exercise of options granted under the Plan shall reduce by the number of
shares so delivered the number of shares available for the granting of options
under the Plan. If an option granted under the Plan to any employee expires or
is cancelled or terminated unexercised as to any shares covered thereby or if
any Securities are forfeited and surrendered to the Company, such shares or
Securities shall be available for granting of options.

          Section 1.4 Authority of the Committee to Grant Options. Subject to
the provisions of the Plan, the Committee shall have authority, in its
discretion, to determine the persons to whom options shall be granted, to grant
options and to determine the number of shares to be covered by any option.

          Section 1.5 Agreements. The specific terms of each option granted by
the Committee pursuant to the Plan shall be determined by the Committee,
consistent with the terms of the Plan, and shall be set forth and confirmed in
an agreement which shall be in such form and contain such provisions as shall be
determined from time to time by the Committee and which shall be executed
pursuant and with reference to the Plan by the Company and the person to whom
such option is granted. Any such agreement may contain any provisions,
consistent with the terms of the Plan, as may be deemed necessary or appropriate
and approved by the Committee and may be amended from time to time by written
instrument executed by the Company and the person holding such option to
reflect any change in the provisions thereof made in accordance with the Plan.

          Section 1.6 Notice of Exercise. Each exercise of an option must be
evidenced by a written notice of exercise to the Company in form satisfactory to
the Committee.

                                   II. OPTIONS

          Section 2.1 Types of Options. Both Incentive Stock Options and
Non-Incentive Stock Options may be granted under the Plan. Any option granted
under the Plan that is intended to qualify as an Incentive Stock Option shall be
designated as such by the Committee at the time the option is granted, and such
designation shall be reflected in the agreement required by Section 1.5 of the
Plan. Notwithstanding anything herein to the contrary, the aggregate Fair Market
Value (determined as of the time the option is granted) of the

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stock for which any employee may be granted Incentive Stock Options in any
calendar year under the Plan and all other plans described in Section 422A(b)(8)
of the Code shall not exceed $100,000 plus any unused limit carryover to such
year computed in accordance with Section 422A(c)(4) of the Code.

          Section 2.2 Option Price. The Committee shall establish the option
price per share at the time any option is granted, and such option price per
share shall not be less than the greater of (a) 100% of the Fair Market Value
per share of the shares subject to such option on the day such option is granted
or (b) the per share par value of such shares. The option price will be subject
to adjustment in accordance with the provisions of Section 3.6 of the Plan.
Options may be granted under the Plan for terms of not more than ten (10) years
from the date of grant thereof.

          Section 2.3 Continuation of Employment. Each option by its terms shall
require the employee granted such option to remain in the continuous employ of
the Company and/or a Subsidiary of the Company for such period or periods as the
Committee shall determine at the time of grant from the date of grant of his
option before the right to exercise any part of the option will accrue, provided
that the Committee at any time, or from time to time, after the time of grant
may in its discretion shorten such period or periods.

          Section 2.4 Exercise of Options. Subject to the provisions of this
Article II, each option shall become and be exercisable at such time or times
and during such period or periods, in full or in such installments (which may be
cumulative or noncumulative) as may be determined by the Committee at the time
of the grant of such option, provided that the Committee at any time, or from
time to time, after the time of grant may in its discretion accelerate the
exercisability of all or any portion of any option by accelerating the date on
which it was initially to have become exercisable and/or, in the case of options
exercisable in installments, accelerating the dates on which all or any portion
of any or all of such installments were initially to have become exercisable.
Notwithstanding anything herein to the contrary, each Incentive Stock Option
granted under the Plan shall by its terms not be exercisable while there is
outstanding (within the meaning of Section 422A(c)(7) of the Code) any Incentive
Stock Option previously granted to the optionee to purchase stock in his
employer corporation or in a corporation which (at the time of granting of the
later granted Incentive Stock Option) is a Parent or Subsidiary of

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the employer corporation, or in a predecessor of any of such corporations.

          Section 2.5 Payment of Option Price. The option price of each share
purchased pursuant to exercise of each option granted under the Plan shall be
paid either (i) entirely in cash or (ii) if permitted by the Committee in its
sole discretion, partially or entirely in full shares of Common Stock, with the
balance, if any, to be paid in cash. Any payment of the option price in shares
of Common Stock shall be credited toward the option price at the Fair Market
Value per share of such shares on the date of payment. Any payment to the
Company in shares of Common Stock as permitted by this Section 2.5 shall vest in
the Company good and unencumbered title thereto, free and clear of all liens,
restrictions, charges, encumbrances and adverse claims, and shall be effected by
delivery of the certificate(s) representing such shares, duly endorsed in blank
or accompanied by stock power(s) duly executed in blank and otherwise in proper
form for transfer.

                           III. ADDITIONAL PROVISIONS

          Section 3.1 Non-Transferability. Options shall not be transferable by
the optionee otherwise than by Will or, if he dies intestate, by the laws of
descent and distribution of the jurisdiction of his domicile at the time of his
death, and such options shall be exercisable during his lifetime only by such
optionee or his guardian or legal representative.

          Section 3.2 Termination of Employment. If the employment by the
Company and all its Subsidiaries of a person who is the holder of any option
shall terminate because of such person's discharge (for or without cause), his
rights under any then outstanding option shall terminate and be forfeited
immediately as to any unexercised portion thereof. If any such person shall
voluntarily terminate his employment (other than by reason of his disability),
each outstanding option held by him shall be exercisable by him at any time
prior to the expiration date of the option or within three (3) months after the
date of such termination or employment, whichever is the shorter period, but
only to the extent such option was exercisable at the date of such termination.
In the event of termination of employment by reason of disability (of which the
Committee shall be the sole judge) or the death of any such person while such
person is an employee

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of the Company or a Subsidiary of the Company, each outstanding option held by
him shall be fully exercisable (whether or not exercisable on the date of his
death or termination of employment by reason of disability) at any time prior to
the expiration date of the option or within six (6) months after the date of
death or termination of employment, whichever is the shorter period. To the
extent any option is not exercised during the period after termination of the
holder's employment specified in this Section 3.2, such option shall terminate
at the end of such period. In the case of death or disability, options shall be
exercisable by the person or persons specified in such deceased person's Will
or, if such deceased person shall have failed to make specific provision in his
Will for such exercise or shall have died intestate, or in the case of
disability, when appropriate, by such person's guardian or legal representative.
Anything to the contrary contained in this Section 3.2 notwithstanding, the
Committee, in its sole discretion, may increase the period and extent of
exercisability of any option held by (i) a person whose employment terminates as
the result of his death or disability, (ii) a person who dies or becomes
disabled during any period while his option remains exercisable under this
Section 3.2 or (iii) a person who demonstrates to the Committee special
circumstances that, in the sole judgment of the Committee, merit such increase.

          Section 3.3 Leave of Absence. The Committee may make such provisions,
regarding the effect of a leave of absence of any optionee as the Committee
shall determine.

          Section 3.4 Securities Laws; Compliance with Laws. Each exercise of an
option shall, at the election of the Committee, be contingent upon receipt by
the Company from the optionee (or, in the event of his death or disability, his
legal representatives, legatees or distributees) of such written representations
(if any) concerning the optionee's (or their) intentions with regard to the
acquisition, retention or disposition of the shares being acquired upon exercise
of such option and/or such written covenants and agreements (if any) as to the
acquisition, retention and disposition of such shares as, in the opinion of the
Committee, may be necessary to ensure that the acquisition and any disposition
of such shares by the optionee or such other persons will not involve a
violation of the Securities Act of 1933, as amended, or any similar or
superseding statute or statutes, or any other applicable statute or regulation,
as then in effect. Each option shall be subject to the requirement that if at
any time the Committee shall determine, in

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its discretion, that the listing, registration or qualification of Common Stock
subject to such option upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of, or in connection with the granting of,
such option or the issuance or delivery of shares thereunder, such option may
not be exercised unless such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any conditions not
acceptable to the Committee. Nothing in the Plan or in any option granted under
it shall require the Company to issue or deliver any shares upon exercise of any
options if such issuance or delivery would, in the opinion of counsel for the
Company, constitute a violation of the Securities Act of 1933, as amended, or
any similar or superseding statute or statutes, or any other applicable statute
or regulation, as then in effect.

          Section 3.5 Issuance of Shares. A person exercising an option shall
not be treated as having become the registered owner of any shares of Common
Stock issuable or deliverable on such exercise until such shares are issued and
delivered.

          Section 3.6 Adjustment of Number and Kind of Shares. The shares
available for the Plan as provided in Section 1.3 of the Plan are a part of the
Common Stock, par value $.10 per share, of the Company, presently authorized in
the Certificate of Incorporation, as amended, of the Company. In the event that
a dividend shall be declared and paid upon the Common Stock payable in shares of
Common Stock, the number of undelivered shares of Common Stock then subject to
any option and the number of shares of Common Stock at the time reserved for
sale or delivery pursuant to the Plan but not at the time covered by an Option
shall be adjusted by adding to each such share the number of shares which would
be distributable thereon if such share had been outstanding on the date fixed
for determining the stockholders entitled to receive such stock dividend. In the
event that the outstanding shares of Common Stock shall be changed into or
exchanged for a different number or kind of shares of stock or other securities
of the Company, whether through amendment of the Company's Certificate of
Incorporation, reorganization, recapitalization, stock split-up, combination of
shares, merger or consolidation (other than a merger or consolidation to which
Section 3.7 of the Plan applies), then there shall be substituted for each
undelivered share of Common Stock then subject to any option and for each share
of Common

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Stock at the time reserved for sale or delivery pursuant to the Plan but not at
the time reserved for sale or delivery pursuant to the Plan but not at the time
covered by an option, the number and kind of shares of stock or other securities
into which each outstanding share of Common Stock shall be so changed or for
which each such share shall be exchanged. In the event there shall be any
change, other than as specified above in this Section 3.6, in the outstanding
shares of Common Stock, then if the Committee shall, in its sole discretion,
determine that such change equitably requires an adjustment or change in the
number or kind of shares then reserved for sale or delivery pursuant to the Plan
but not at the time covered by an option and of undelivered shares then subject
to an option, such adjustment or change shall be made by the Committee and shall
be effective and binding for all purposes of the Plan. In the case of any such
substitution or adjustment as provided for in this Section 3.6, the option price
in each stock option agreement for each share covered thereby prior to such
substitution or adjustment will be the option price for all shares which shall
have been substituted for such share or to which such share shall have been
adjusted pursuant to this Section 3.6. The determination of the Committee as to
all adjustments and substitutions referred to in this Section 3.6 shall be
conclusive. No adjustment or substitution provided for in this Section 3.6 shall
require the Company to deliver or sell a fractional share, and any fractional
shares resulting from any adjustment or substitution pursuant to this Section
3.6 shall be eliminated from the applicable option. The provisions of this
Section 3.6 shall apply with respect to successive dividends, amendments,
reorganizations, recapitalizations, stock split-ups, combinations of shares,
mergers, consolidations and changes of the kind referred to in this Section 3.6.

          Section 3.7 Business Combinations. In the event that, while any
options are outstanding under the Plan, there shall occur (a) a merger or
consolidation of the Company with or into another corporation in which the
Company shall not be the surviving corporation (for purposes of this Section
3.7, the Company shall not be deemed the surviving corporation in any such
transaction if, as the result thereof, it becomes a wholly-owned subsidiary of
another corporation), (b) a dissolution of the Company or (c) a transfer of all
or substantially all of the assets of the Company in one transaction or a series
of related transactions to one or more other persons or entities, then, with
respect to each option outstanding immediately prior to the consummation of such
transaction:

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         (i)      If provision is made in writing in connection with such
                  transaction for the continuance and/or assumption of the
                  options granted under the Plan, or the substitution for such
                  options of new options equivalent to such options, with
                  appropriate adjustment as to number and kind of shares or
                  other securities deliverable with respect, thereto, the
                  options granted under the Plan, or the new options substituted
                  therefor, shall continue, subject to such adjustment, in the
                  manner and under the terms provided in the respective
                  agreements under Section 1.5.

         (ii)     In the event provision is not made in connection with such
                  transaction for the continuance and/or assumption of the
                  options granted under the Plan, or for the substitution of
                  equivalent options, then each holder of an outstanding option
                  shall be entitled, immediately prior to the effective date of
                  such transaction, to purchase the full number of shares that
                  he would otherwise have been entitled to purchase during the
                  entire remaining term of the option and any restriction or
                  risk of forfeiture imposed pursuant to Section 1.1 of the Plan
                  shall lapse immediately prior to the effective date of such
                  transaction. The unexercised portion of any option shall be
                  deemed cancelled and terminated as of the effective date of
                  such transaction.

                                IV. MISCELLANEOUS

          Section 4.1 Amendment of Plan. The Board of Directors of the Company
shall have the right to amend, suspend or terminate the Plan at any time,
provided that no amendment shall be made which shall (a) increase the total
number of shares which may be issued pursuant to options granted under the
Plan, (b) decrease the minimum option price provided for in Section 2.2 hereof,
(c) extend the term of the Plan or of any option granted under the Plan or (d)
withdraw administration of the Plan from the Committee, unless such amendment is
approved by the affirmative vote of the holders of a majority of the
outstanding shares of voting stock of all classes of the Company (voting
together and not separately by class). The Board of Directors may delegate to
the Committee all or any portion of its authority under this Section 4.1. No
amendment, suspension or termination (whether

                                       10
<PAGE>   11

pursuant to this Section 4.1 or upon expiration of the stated term of the Plan)
may, without the consent of the holder of an existing option, materially and
adversely affect his rights under such option.

          Section 4.2 Effective Date and Duration of Plan; Stockholder Approval.
The Plan shall become effective on May 16, 1983 and, unless sooner terminated
pursuant to the terms hereof, the Plan shall terminate on May 16, 1993. However,
the Plan, and each option granted under the Plan, will be null and void unless
the Plan is approved by the affirmative vote of the holders of a majority of the
outstanding shares of voting stock of all classes of the Company entitled to
vote thereon (voting together and not separately by class) at the Company's 1983
Annual Meeting of Stockholders.

          Section 4.3 Right to Continued Employment. Nothing in the Plan or in
any option granted under it shall confer any right to continue in the employ of
the Company or any of its Subsidiaries or interfere in any way with the right of
the Company or any of its Subsidiaries to terminate any employment at any time.

          Section 4.4 Requested Information. Each grantee of an option shall
furnish to the Company all information requested by the Company to enable it to
comply with any reporting or other requirements imposed upon the Company by or
under any applicable statute or regulation.

          Section 4.5 Payment of Taxes. Prior to the exercise of any option or
in connection with any disposition of Shares of Common Stock acquired pursuant
to such exercise, the holder of such option shall make arrangements
satisfactory to the Company for the payment of any applicable federal or other
withholding taxes payable as a result thereof.

          Section 4.6 Headings. The Article and Section headings contained in
the Plan are for convenience only and shall not affect the construction of the
Plan.

                                       11
<PAGE>   12

                               FIRST AMENDMENT TO
                              STOCK OPTION PLAN OF
                       ARABIAN SHIELD DEVELOPMENT COMPANY

                            Effective January 1, 1987

          The Stock Option Plan (the "Plan") of Arabian Shield Development
Company (the "Company") and its subsidiaries, adopted by the Board of Directors
of the Company on May 16, 1983, and approved by the stockholders of the Company
on July 28, 1983, is amended effective as of January 1, 1987 as follows:

         1.       All references to the "Code" shall mean the Internal Revenue
                  Code of 1986, as amended, but also such related or successor
                  provisions as may be applicable pursuant to subsequent
                  amendments.

         2.       Section 2.1 of the Plan is amended to read in its entirety as
                  follows:

                  Section 2.1 Types of Options. Both Incentive Stock Options and
                  Non-Incentive Stock Options may be granted under the Plan. Any
                  option granted under the Plan that is intended to qualify as
                  an Incentive Stock Option shall be designated as such by the
                  Committee at the time the option is granted, and such
                  designation shall be reflected in the agreement required by
                  Section 1.5 of the Plan. Notwithstanding anything herein to
                  the contrary, the aggregate Fair Market Value (determined as
                  of the time the option is granted) of the stock with respect
                  to which such options are exercisable for the first time by
                  any employee during any calendar year under this Plan and all
                  plans described in Section 422A(b) of the Code of the Company
                  shall not exceed $100,000. For the purpose of this Section,
                  any unused limit carryover shall be determined pursuant to
                  Section 422A(c)(4) of the Code.

         3.       Section 2.4 of the Plan is amended to read in its entirety as
                  follows:

                  Section 2.4 Exercise of Options. Subject to the provisions of
                  this Article II, each option shall become and be exercisable
                  at such time or times and during such period or periods, in
                  full or in such installments (which may be cumulative or
                  noncumulative) as may be determined by the Committee at the
                  time of the grant of such option, provided that the Committee
                  at any time, or from time to time, after the time of grant,
                  may in its discretion accelerate the exercisability of all or
                  any portion of any option by accelerating the date on which it
                  was initially to have become exercisable

<PAGE>   13

                  and/or, in the case of options exercisable in installments,
                  accelerating the dates on which all or any portion of any or
                  all of such installments were initially to have become
                  exercisable.

          This First Amendment to the Company's Stock Option Plan shall be
effective as of January 1, 1987.

          Adopted by the Board of Directors of the Company on January 28, 1987.

                                      -2-

<PAGE>   14

                               SECOND AMENDMENT TO
                              STOCK OPTION PLAN OF
                       ARABIAN SHIELD DEVELOPMENT COMPANY

                           Effective December 29, 1992

          The Stock Option Plan (the "Plan") of Arabian Shield Development
Company (the "Company") and its subsidiaries, adopted by the Board of Directors
of the Company on May 16, 1983, and approved by the stockholders of the Company
on July 28, 1983, as amended effective January 1, 1987, is amended effective
December 29, 1992 as follows:

         1. Section 1.3 of the Plan is amended to read in its entirety as
follows:

                   Section 1.3 Shares Available. The Board of Directors shall
         reserve for the purposes of the Plan, out of the authorized but
         unissued shares of Common Stock or out of shares of Common Stock held
         in the Company's Treasury, or partly out of each, as shall be
         determined by the Board of Directors, a total of 500,000 shares of such
         Common Stock. Any shares delivered upon exercise of options granted
         under the Plan shall reduce by the number of shares so delivered the
         number of shares available for the granting of options under the Plan.
         If an option granted under the Plan to any employee expires or is
         cancelled or terminated unexercised as to any shares covered thereby or
         if any Securities are forfeited and surrendered to the Company, such
         shares or Securities shall be available for granting of options.

         2. Section 4.2 of the Plan is amended to read in its entirety as
follows:

                   Section 4.2 Effective Date and Duration Plan. The Plan shall
         become effective on May 16, 1983 and, unless sooner terminated pursuant
         to the terms hereof, the Plan shall terminate on May 16, 2003.

          This Second Amendment to the Company's Stock Option Plan shall be
effective December 29, 1992.

         Adopted by the Board of Directors of the Company on October 15, 1992.

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