Document:

CORONADO INDUSTRIES, INC.

                             STOCK OPTION AGREEMENT
                      UNDER 1999 EMPLOYEE STOCK OPTION PLAN

                                                 Date of Grant: November 3, 1999

     CONSULT  YOUR  PERSONAL TAX ADVISOR:  SUBSTANTIAL  TAX CONSE-  QUENCES WILL
RESULT FROM YOUR EXERCISE OF THIS STOCK OPTION

     CORONADO INDUSTRIES,  INC., a Nevada corporation (the "Corporation") hereby
grants  to___________________(the  "Optionee"),  pursuant  to the 1999  Employee
Stock Option Plan of the Corporation  (the "Plan") which is incorporated  herein
by  reference,  an  option to  purchase  a total  of_________________  Shares as
defined in the Plan (the "Option"), on the terms and conditions set forth in the
Plan and hereinafter.  This Option shall not be exercisable  later than November
2, 2009 (herein referred to as the "Expiration Date").

     1.  VESTING.  Subject to the terms and  conditions of this  Agreement,  the
Shares  subject to this Option shall be fully vested and  exercisable as of this
date of grant, November 3, 1999.

     2. OPTION PRICE.  The Option price for the _________  Shares of this Option
shall be $.20 per share.

     3.  TERMINATION.  This option and all rights  hereunder  to the extent such
rights shall not have been exercised shall terminate and become null and void if
the Optionee ceases to be a employee of the Company or its subsidiaries (whether
by resignation, retire- ment, dismissal, death or otherwise), except that (a) in
the event of the death or  disability  of the Optionee  while an employee of the
Company,  this  option  only to the extent  exercisable  at the date of death or
disability  may be  exercised  within the  applicable  period of time and by the
persons  indicated  in Article  VI (6) of the Plan,  and (b) in the event of the
termination of the Optionee's  employ- ment by the Company for any other reason,
this option only to the extent  exercisable at the date of such  termination may
be exercised  prior to the  expiration of three (3) months from the date of such
termination,  and shall terminate in all other respects; PROVIDED, HOWEVER, that
in no event may this option be exercised after the Expiration Date.

     4. EXERCISE.  This Option is exercisable  with respect to all, or from time
to time with respect to any portion, of the Shares described above which have at
that time become vested, by delivering  written notice of such exercise,  in the
<PAGE>
form  prescribed by the Board,  to the principal  office of the Secretary of the
Corporation.  Each such notice  shall be  accompanied  by payment in full of the
Option price of such Shares.

     5.  NON-TRANSFERABLE.  This Option shall during the Optionee's  lifetime be
exercisable  only by the  Optionee,  and  neither  this  Option  nor  any  right
thereunder  shall  be  transferable  except  by  will or  laws  of  descent  and
distribution,  or be subject to attachment,  execution or other similar process.
In the  event of any  attempt  by the  Optionee  to  alienate,  assign,  pledge,
hypothecate or otherwise dispose of the Option or any right  thereunder,  except
as provided for herein, or in the event of the levy of any attachment, execution
or similar process upon the rights or interest hereby conferred, the Corporation
may  terminate  this  Option by notice to the  Optionee  and this  Option  shall
thereupon become null and void.

     6. LEGAL RESTRICTIONS. If the sale of the Shares purchased hereunder is not
registered under the Securities Act of 1933, but an exemption is available which
requires an investment or other representation, the Optionee shall represent and
agree at the time of exercise  that the Shares being  acquired  upon  exercising
this Option are being acquired for investment,  and not with view to the sale or
distribution  thereof, and shall make such other representa- tions as are deemed
necessary or appropriate by the  Corporation and its counsel.  In addition,  the
Optionee  agrees that the  following  legend may be included on the  certificate
representing the Shares:

     The shares  represented  hereby have not been  registered  under the United
States  Securities  Act of 1933, as amended,  and may not be sold,  pledged,  or
otherwise  transferred without an effective  registration thereof under such act
or an opinion of counsel, satisfactory to the company and its counsel, that such
registration is not required.

     7. CORPORATE TRANSACTIONS.

     (a) If the  Corporation  is merged  or  consolidated  into or with  another
corporation (other than by a merger or consolidation in which the Corporation is
the surviving  corporation) or the Corporation or the  Corporation's  assets are
purchased by another company in exchange for stock,  the Corporation  shall give
the  Optionee  written  notice  of  the  Corporation's  initial  or  preliminary
agreement to the transaction and the details of the transaction at least 60 days
prior to the closing of the transaction and an additional 30 days written notice
prior to the closing date of the transaction and each postponed  closing date of
the  transaction.  The then  exercisable but  unexercised  Shares granted in the

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<PAGE>
Option may be exercised by the Optionee at any time prior to the closing date of
the  transaction and such exercised  Shares shall then be deemed  outstanding at
the close of the transaction.

     8. TAX CONSEQUENCES.

     This Stock Option is intended as an "Incentive  Stock Option" under Section
422A  of the  Internal  Revenue  Code  of  1986,  as  amended.  Substantial  tax
consequences  are involved in the decision to exercise  this Option.  Therefore,
the  Optionee  should  consult  with  and seek  advice  from  his  personal  tax
consultant prior to exercising this Option.

     9. MISCELLANEOUS.

     (a) Neither the granting of this Option nor the exercise  thereof  shall be
construed  as  conferring  upon  the  Optionee  any  right  to  continue  in the
engagement of the Corporation or any of its subsidiaries, or as interfering with
or  restricting  in any way the  right  of the  Corporation  to  terminate  such
engagement at any time.

     (b) Neither the Optionee, nor any person entitled to exercise his rights in
the event of his  death,  shall  have any of the  rights of a  stockholder  with
respect  to the  Shares  subject  to this  Option,  except  after  such date the
Optionee  or such person has been  issued the Shares by the  Corporation  or its
agent.

     (c) The Corporation is relieved from any liability for the  non-issuance or
non-transfer  or any delay in the issuance or transfer of any Shares  subject to
this Option which results from the inability of the Corporation to obtain, or in
any delay in  obtaining,  from each  regulatory  body  having  jurisdiction  all
requisite   authority  to  issue  or  transfer  Shares  of  the  Corporation  in
satisfaction of this Option if counsel for the Corporation  deems such authority
necessary for the lawful issuance or transfer of any such shares.

     (d) No  Shares  acquired  by  exercise  of  this  Option  shall  be sold or
otherwise  disposed of in  violation of any federal or state  securities  law or
regulation in the Untied States.

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<PAGE>
     (e) This Option shall be exercised in accordance  with such  administrative
regulations  as the  Corporation's  Board  may  from  time  to time  adopt.  All
decisions of the Board upon any  legitimate  question  arising under the Plan or
under this Stock  Option  Agreement  shall be  conclusive  and binding  upon the
Optionee and all other persons, if determined in good faith.

     IN WITNESS WHEREOF, this Stock Option Agreement has been executed as of the
day and year first written above.

                                        CORONADO INDUSTRIES, INC.

                                        By: /s/ Gary R. Smith
                                            ------------------------------------
                                            Gary R. Smith, President

ATTEST:

/s/ G. Richard Smith
---------------------------
G. Richard Smith, Secretary

                                        4CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE

     This Confidential  Settlement  Agreement and Release  ("Agreement") is made
and  entered  into  between  Stephen  D.  Hayter,  7025 E.  Stone  Raven  Trail,
Scottsdale,  Arizona 85262, and Empyrean Bioscience, Inc., 2238 West Lone Cactus
Drive, Suite 200, Phoenix, Arizona 85027, this 31st day of December, 1999.

     WHEREAS,  Stephen  D.  Hayter  ("Hayter")  has been  employed  by  Empyrean
Bioscience, Inc. (the "Company");

     WHEREAS, Hayter has decided to resign from the Company;

     WHEREAS,  Hayter  and the  Company  have  reached  an  agreement  regarding
Hayter's  resignation  upon the terms and subject to the conditions set forth in
this Agreement.

     FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby
acknowledged,  and intending to be legally bound by this  Agreement,  Hayter and
the  Company  agree as  follows:

          1.  Hayter  agrees to resign  his  positions  as  President  and Chief
Executive  Officer and Chairman of the Board effective  December 31, 1999 and to
execute all documents necessary to effectuate same.

          2. Hayter  agrees  that his  employment  by the  Company is  concluded
effective December 31, 1999. 1.

          3. The Company agrees to pay Hayter severance in an amount  equivalent
to twelve months pay, for a total payment of $180,000,  less ordinary deductions
for taxes and withholdings,  which compensation  includes payment for all unused
accrued  vacation,  sick and personal  days.  Payment will be made in twenty-six
(26) consecutive, equal, biweekly installments mailed to Hayter on the same date
when the Company  customarily  issues  paychecks to its  employees  and shall be
mailed to  Hayter's  home  address,  which  Hayter  shall  allow the  Company to
designate  as its place of  business  in Arizona  beginning  January 9, 2000 and
<PAGE>
ending  December 31, 2000.  The Company  commenced  issuing  checks to Hayter in
January,  2000 and all checks  issued to Hayter,  during 2000,  including  those
issued prior to the date when Hayter signed this Agreement, constitute severance
paid pursuant to this Agreement.

          4. The Company agrees to continue  Hayter's  current  benefits package
including   company-sponsored  group  health  and  dental  insurance  (including
prescription  drug  plan),  at the  Company's  expense,  for a period  beginning
January 1, 2000 and concluding December 31, 2000. Thereafter,  Hayter may obtain
health insurance coverage at his own expense.  The Company is not subject to the
Consolidated  Omnibus  Budget  Reconciliation  Act,  the  federal  law  known as
"COBRA".

          5. The Company agrees to pay Hayter the sum of $2,400 as reimbursement
for the cost of  automobile  lease  payments  incurred by Hayter.  The foregoing
reimbursement will be paid in a lump sum in a check mailed to Hayter at his home
address on the Company's  first  occurring  payday  following  expiration of the
seven (7) day  revocation  period  subsequent to the date when Hayter signs this
Agreement.

          6. A schedule of Hayter's 1,351,045 vested incentive stock options and
their prices is as follows:

  NUMBER OF
VESTED OPTIONS      DATE OF GRANT          EXPIRATION DATE      EXERCISE PRICE
--------------      -------------          ---------------      --------------
    175,000         September 6, 1996      September 6, 2000         0.38
    300,000         October 3, 1997        October 3, 2000           0.55
    450,000         April 28, 1998         April 28, 2001            0.95
    250,000         April 28, 1998         April 28, 2001            0.95
     21,197         February 5, 1999       February 4, 2009          0.38
    154,373         February 5, 1999       February 4, 2009          0.38
  =========
  1,351,045  Total Number of Vested Options as of December 31, 1999

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<PAGE>
The Stock Option  Agreements and Stock Option  Certificates  between the Company
and  Hayter  (collectively  the  "Option  Agreements"),  pursuant  to which  the
foregoing  options  were  granted,  are  hereby  amended  to  provide  that  the
expiration  date for each of the vested  options  described  above  shall be the
earlier to occur of:  (a) the date  which is twelve  (12)  months  after  Hayter
ceases to be a director  of the Company or (b) the first  business  day prior to
the ten  (10)  year  anniversary  of the  date of  grant  of such  option.  If a
Registration  Statement (as hereinafter  defined)  becomes  effective and Hayter
determines to exercise part or all of his vested options  described above and to
sell the shares  which are issued  upon  exercise of such  vested  options  (the
"Option Shares"),  Hayter hereby agrees to limit his sale of Option Shares, plus
any other shares of the Company beneficially owned by Hayter,  during any period
of ninety (90) consecutive days following the effective date of the Registration
Statement to not more than one percent (1%) of the issued and outstanding shares
of the  Company.  As used  herein,  the term  "Registration  Statement"  means a
registration  statement on Form S-8 which registers securities of the Company to
be offered  pursuant  to its 1998  Empyrean  Diagnostics,  Ltd.  Stock Plan (the
"Stock  Option Plan") as well as the reoffer or resale of such  securities.  The
Company agrees to name Hayter as a selling shareholder in any reoffer prospectus
which is prepared relating to the Registration  Statement.  Notwithstanding  the
provisions of Section 7 of this Agreement, the Option Agreements, as modified by
this Agreement,  remain in full force and effect  according to their  respective
terms.

          7. In  consideration of the payments and other benefits being provided
to Hayter  pursuant  to this  Agreement,  Hayter,  for  himself  and his  heirs,
executors,  administrators and assigns, does hereby release,  acquit and forever
discharge Empyrean Bioscience, Inc., its successors,  predecessors,  affiliates,
parent companies and past, present and future officers, directors, shareholders,
employees,  agents,  attorneys  and assigns  and Richard C.  Adamany and Bennett
S.Rubin (hereinafter collectively referred to as "Employer") of and from any and

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<PAGE>
all charges, claims, demands, damages, lawsuits, actions or causes of action, of
any kind or description  whatsoever,  whether  arising out of tort,  contract or
otherwise,  in law or in equity,  which Hayter now has, has had or may hereafter
have against Employer (and/or its past, present and future officers,  directors,
shareholders, employees and agents) resulting from any matter whatsoever arising
in  connection  with  Hayter's  employment   relationship  with  Employer,   the
termination  thereof  and all past,  present  and future  consequences,  losses,
negotiations, injuries, expenses (including attorneys' fees), and damages of any
kind, nature or description  relating thereto from the beginning of the world to
the date of this Agreement.  Hayter,  for himself and for his heirs,  executors,
successors  and assigns,  does hereby  further  covenant and agree not to bring,
commence,  prosecute,  maintain,  continue  to maintain or cause or permit to be
brought,  commenced,  prosecuted,  maintained or continued to be maintained, any
suit,  action or administrative  proceeding,  either at law or in equity, in any
court or  administrative  body of the United  States or in any state  thereof or
elsewhere with respect to any matter embraced within this release of claims,  it
being  expressly  understood that this release of claims and covenant not to sue
specifically include, but are not limited to, all claims arising under the Civil
Rights Act of 1866,  the Fair Labor  Standards Act of 1938, the Equal Pay Act of
1963, the Civil Rights Act of 1964, the Age  Discrimination in Employment Act of
1967, the  Rehabilitation  Act of 1973, the Older Workers Benefit Protection Act
of 1990,  the Americans With  Disabilities  Act of 1990, the Civil Rights Act of
1991 and the  Family and  Medical  Leave Act of 1993,  and all other  federal or
state laws governing employers and employees.

          8. ACKNOWLEDGMENT.  By entering into this Agreement, and in connection
with  Hayter's  release  of  claims  and  covenant  not to sue set  forth in the
foregoing paragraphs, Hayter acknowledges that:

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<PAGE>
          A.   Hayter is knowingly and voluntarily entering into this Agreement;

          B.   Company and Employer are not admitting any liability or violation
               of any law, contract or other agreement;

          C.   No promise or  inducement  has been  offered to Hayter  except as
               stated here and the benefits being provided to Hayter pursuant to
               this Agreement are more than that to which Hayter would otherwise
               be entitled;

          D.   This Agreement is being executed by Hayter without  reliance upon
               any  statements  by Company or Employer or their  representatives
               concerning the nature or extent of any claims or damages or legal
               liability therefor;

          E.   This Agreement has been written in understandable  language,  and
               all provisions hereof are understood by Hayter;

          F.   Hayter has been  advised in writing to consult  with an  attorney
               prior to executing this Agreement;

          G.   Hayter has had a period of at least  twenty-one  (21) days within
               which to consider this Agreement  before  accepting the same and,
               by signing this Agreement  earlier than 21 days following receipt
               of it, Hayter  acknowledges that he has knowingly and voluntarily
               waived the 21 day period and has accelerated the date when he may
               begin receiving the severance  payments  following  expiration of
               the revocation period referenced in Paragraph H; and

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<PAGE>
          H.   Hayter  has the right to revoke  this  Agreement  for a period of
               seven  (7)  days  following  his  acceptance   hereof,  and  this
               Agreement  shall not become  effective or enforceable  until such
               seven (7) day period has expired.

Should  Hayter  desire to revoke this  Agreement,  he must notify the Company in
writing at 23800 Commerce Park Road,  Suite A, Cleveland,  Ohio 44122,  prior to
the close of  business  on the 7th day  following  the date  when he signs  this
Agreement.  In the event Hayter  declines to accept the terms of this  Agreement
or, having  accepted  them,  effectively  revokes his acceptance  thereof,  this
Agreement  shall have no force or effect and neither  its terms,  nor any of the
discussions of the parties  relative to its  negotiation  shall be admissible in
evidence in any  proceeding  brought by or on behalf of Hayter  against  Company
and/or Employer.

          9. Hayter agrees not to issue any communication or statement, written,
oral or otherwise,  that disparages,  criticizes or otherwise infers or reflects
adversely or encourages  adverse action against the Company and/or  Employer and
Hayter  agrees  not to take any  action  to injure  or harm the  Company  or its
reputation  or business  relationships.  Hayter  further  agrees not to initiate
discussions regarding matters pertaining to the Company with investors, analysts
or shareholders  and, in the event Hayter  receives  inquiries about the Company
from any of the  foregoing or from other  curious or inquiring  parties,  Hayter
agrees  to  refer  all  such  inquires,   including   questions   regarding  his
resignation,  to the Company's  investor relations agency and/or Richard Adamany
and Hayter agrees that, in the course of referring such  inquiries,  any remarks
or communications by Hayter shall be consistent with the Company's press release
regarding his decision to accelerate his retirement.

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<PAGE>
          10.  Hayter  further  agrees that he shall have no contact  whatsoever
regarding  any matter  whatsoever  with any  parties  related  to  International
Bioscience Corporation, formerly known as Geda International Marketing Co., Ltd.
(GIMCO),  Geda  International,  S.A.,  Prevent-X,  Inc.,  anyone associated with
Mercury  Technology,  Inc.,  Optima  Holding Co., Ltd. or Bioserv,  Inc. and the
litigation  related  thereto,  any  persons  associated  with The  Alliance  for
Microbicide   Development,   National  Institutes  of  Health  (NIH),   National
Institutes  of  Allergic  and  Infectious  Diseases  (NIAID),  the  Food  & Drug
Administration  (FDA)  including,   but  not  limited  to,  current  and  former
employees,  consultants  and  independent  contractors.  Hayter  understands and
acknowledges that any communications he makes, however  well-intentioned,  are a
violation  of this  paragraph  of this  Agreement  and that the Company need not
demonstrate  any adverse  impact  arising from  Hayter's  communications  before
invoking  its rights under  paragraph 12 to cease  payments to Hayter and demand
repayment from Hayter of all sums paid pursuant to this Agreement.

          11.  Hayter  warrants  that he has not  disclosed  the  terms  of this
Agreement to date and he further agrees to keep  confidential  the terms of this
Agreement and not publicize, disclose or discuss it or its terms with any person
other than his attorney,  spouse, financial advisor or accountant in this matter
provided Hayter first informs such  individuals of their obligation to keep that
information  confidential  and obtains  their  assurance  to do so. In the event
Hayter is served with a subpoena or other legal process seeking or purporting to
require disclosure of information which is prohibited by this Agreement,  Hayter
will provide  Company with prompt written  notice  (describing  the  information
being sought and the party  seeking  same) so that Company may seek a protective
order or take other  action to prevent or limit  said  disclosure  and/or  waive
Hayter's obligation to comply with this provision of the Agreement.  Pending the
Company's  receipt of notice  from  Hayter,  Hayter  will use all  lawful  means

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<PAGE>
reasonably  available to him to resist  disclosing  the  information  which this
Agreement requires him to keep confidential.

          12. Hayter  acknowledges  and agrees that the Company's  obligation to
pay the  settlement  amounts and benefits set forth in paragraphs 3, 4 and 5 and
to amend the Option  Agreements as set forth in paragraph 6 is conditioned  upon
Hayter's compliance with this Agreement and Release,  including, but not limited
to  the  non-disparagement,  nondisclosure  and  confidentiality  provisions  of
paragraphs 9, 10 and 11. Hayter  acknowledges that his agreements to comply with
the  provisions  of  paragraphs  9, 10 and 11 are material  inducements  for the
Company to enter into this Agreement and Release and that any violation  thereof
shall be deemed to be a material  breach of this  Agreement and Release and that
in  such  event  the  Company  shall  immediately  be  relieved  of any  further
obligation  pursuant to this Agreement or otherwise,  and that the Company shall
cease  making any  payments  pursuant to  paragraph  3 and that Hayter  shall be
liable to repay to the Company without deduction,  any and all of the settlement
amounts  and  benefits  already  paid to or on  behalf  of  Hayter  pursuant  to
paragraphs  3, 4 and 5 and that the  provisions of paragraph 6 shall become void
and the stock  options  listed in  paragraph  6 shall  revert to their  original
expiration dates. Upon notice to Hayter from the Company of any violation of the
provisions of paragraphs 9, 10 and 11 of this Agreement,  Hayter shall resign as
a member of the Board of Directors  immediately.  Attached to this  Confidential
Settlement  Agreement  and  Release is an undated  Letter of  Resignation  which
Hayter  agrees  to sign and  deliver  to the  Company  to hold in the event of a
violation of the  provisions of  paragraphs  9, 10 and 11 of this  Agreement and
Release and Hayter  acknowledges and understands that upon receiving notice from
the Company of any such violation,  the Company is authorized to date the Letter
of  Resignation  and  deliver it to the  Chairman  of the Board and the Board of
Directors  and  thereby   effectuate   Hayter's   resignation.   Hayter  further
acknowledges  that the Company  shall be entitled to pursue any and all remedies

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<PAGE>
available to it including,  but not limited to, filing suit,  seeking temporary,
preliminary  and  permanent  injunctive  relief  as well as  money  damages,  an
equitable  accounting of all earnings,  profits and other benefits  arising from
such  violation  and damages for  defamation,  breach of contract,  and tortious
interference with business relationships.

          13.  The  parties  agree  that  this  Agreement  and  Release  may  be
specifically  enforced  in court  and may be used in  evidence  in a  subsequent
proceeding  in which any of the parties  allege a breach of this  Agreement  and
Release.  In the event any claim,  defense,  action, suit or other proceeding is
brought to interpret,  enforce or obtain relief from a breach of this  Agreement
and Release, the prevailing party shall recover all such party's costs, expenses
and attorneys fees incurred in each and every such claim, defense,  action, suit
or other proceeding, including any and all appeals or petitions from therefrom.

          14. In the event any provision of this  Agreement and Release shall be
held to be void,  voidable,  unlawful  or, for any  reason,  unenforceable,  the
remaining portion shall remain in full force and effect.

          15. This Agreement constitutes the entire understanding between Hayter
and the Company  with  respect to the  subject  matter  contained  herein and it
supersedes and replaces all prior  understandings  and agreements (both oral and
written),  except for the Stock Option Agreements and Stock Option  Certificates
referenced in paragraph 6 above. All prior and  contemporaneous  discussions and
negotiations  have been and are merged and  integrated  into, and are superceded
by, this  Agreement  and Release.  No waiver of a provision or condition of this
Release at any time shall be deemed a waiver of such provision or condition,  or
any  other  provision  or  condition,  at any  prior or  subsequent  time.  This
Agreement  cannot be modified  except by means of a written  document  signed by
both Hayter and the Company.

                                       9
<PAGE>

                                      ------------------------------------------
                                      Stephen D. Hayter

                                      ------------------------------------------
                                      Date (to be supplied by Stephen D. Hayter)

     SWORN TO and subscribed by Stephen D. Hayter before me, a Notary Public, on
this ____ day of ______________, 2000.

                                      ------------------------------------------
                                      Notary Public

PLEASE SEND THE CHECKS TO ME AT THE FOLLOWING ADDRESS:

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

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