Document:

Exhibit 10.24

                              EMPLOYMENT AGREEMENT

     This Agreement is to be effective, as of May 1, 1998, by and between
OrthoLogic Corp., a Delaware corporation (the "Company"), and Ruben Chairez
("Employee").

RECITALS:

     A. The Company wishes to employ Employee, and Employee wishes to be
employed by the Company.

     B. The parties wish to set forth in this Agreement the terms and conditions
of such employment.

AGREEMENT:

     In consideration of the mutual covenants and agreements set forth herein,
the parties agree as follows:

     1. EMPLOYMENT AND DUTIES. Subject to the terms and conditions of this
Agreement, the Company employs Employee to serve in a managerial capacity and
Employee accepts such employment and agrees to perform such reasonable
responsibilities and duties as may be assigned to him from time to time by the
Company's Chief Executive Officer (the "CEO"). Initially, Employee's title shall
be Vice President, with general responsibility for Regulatory Affairs, Quality
Assurance and Clinical Trials. Such title and duties may be changed from time to
time by the CEO. Employee will report to the CEO.

     2. TERM. The initial term of this Agreement shall expire on December 31,
1998. Thereafter this Agreement shall renew automatically for additional terms
of one-year each unless it is terminated pursuant to Section 7.

     3. COMPENSATION.

          (a) SALARY. From the effective date of this Agreement through December
31, 1998, the Company shall pay Employee a minimum base annual salary, before
deducting all applicable withholdings, of $125,000 per year, payable at the
times and in the manner dictated by the Company's standard payroll policies.
Effective January 1, 1999, and annually thereafter, the minimum base annual
salary shall be reviewed by the Compensation Committee of the Board of Directors
(the "Board").

          (b) BONUS. Employee shall be eligible to participate in such bonus and
incentive programs as determined from time to time by the Board. Any bonuses
shall be based upon the achievement of individual goals and Company performance.
With respect to the year ending December 31, 1998, Employee will be eligible for
a target bonus of 40% of Employee's base salary for achievement of the
Board-approved plan, as outlined in the offer letter dated March 27, 1998.

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          (c) STOCK OPTIONS. The Company shall grant to Employee incentive
options (the parties understand that only a portion of such options will qualify
as incentive options for tax purposes), from the Company's 1997 Stock Option
Plan, to purchase 100,000 shares of the Company's common stock, with an exercise
price equal to the fair market value of the stock on the effective date of the
grant, with such value determined as specified in the Company's 1997 Stock
Option Plan. So long as Employee is still employed by the Company at each such
time of vesting, options to purchase 25,000 shares shall vest on May 15, 1999,
and additional options to purchase 2,083 shares shall vest on June 15, 1999 and
on the 15th day of each calendar month thereafter, through April 15, 2002 plus
2,095 shares vesting on May 15, 2002.

     4. FRINGE BENEFITS. In addition to the compensation, bonus and options
described in Section 3, and any other employee benefit plans (including without
limitation pension, savings and disability plans) generally available to
employees, the Company shall include Employee in any group health insurance plan
and, if eligible, any group retirement plan instituted by the Company. The
manner of implementation of such benefits with respect to such items as
procedures and amounts are discretionary with the Company but shall be
commensurate with Employee's executive capacity.

     5. VACATION. Employee shall be entitled to vacation with pay in accordance
with the Company's vacation policy as in effect from time to time. In addition,
Employee shall be entitled to such holidays as the Company may approve from time
to time.

     6. EXPENSES.

          (a) REIMBURSEMENT. In addition to the compensation and benefits
provided above, the Company shall, upon receipt of appropriate documentation,
reimburse Employee each month for his reasonable travel, lodging, entertainment,
promotion and other ordinary and necessary business expenses consistent with
Company policies.

          (b) MOVING. Employee shall be reimbursed for (i) the direct relocation
costs of moving his household goods and family from California to the Phoenix
Metropolitan Area; (ii) the brokerage commission and closing costs and buyer
incentive related to the sale of his existing home in California; (iii) closing
costs related to his new home in the Phoenix Metropolitan Area; and (iv) such
amounts as may be necessary, for a period of not to exceed three months, to
cover the reasonable costs of temporary living expenses and an automobile in,
and commuting to and from the Phoenix Metropolitan Area. If Employee resigns his
employment before the date twelve months after the effective date, he shall
reimburse OrthoLogic for a prorata portion of the total relocation expenses
reimbursed by OrthoLogic. Such portion shall be determined by multiplying the
total relocation expenses reimbursed by a fraction the numerator of which is the
number of full months Employee has been employed by OrthoLogic, and the
denominator of which is 12.

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     7. TERMINATION.

          (a) FOR CAUSE. The Company may terminate this Agreement for cause upon
written notice to Employee stating the facts constituting such cause, provided
that Employee shall have 30 days following such notice to cure any conduct or
act, if curable, alleged to provide grounds for termination for cause hereunder.
In the event of termination for cause, the Company shall be obligated to pay
Employee only the minimum base salary due him through the date of termination.
The written notice shall state the cause for termination. Cause shall include
neglect of duties, willful failure to abide by instructions or policies from or
set by the Board of Directors, commission of a felony or serious misdemeanor
offense or pleading guilty or NOLO CONTENDERE to same, Employee's breach of this
Agreement or Employee's breach of any other material obligation to the Company.

          (b) WITHOUT CAUSE. The Company may terminate Employee's Employment at
any time, immediately and without cause, by giving written notice to Employee.
If the Company terminates Employee without cause, provided Employee first
executes a Severance Agreement in the form then used by the Company, the Company
shall continue to pay to Employee his minimum base salary in effect at the time
of termination for a period of one year following the date of termination, at
the time and in the manner dictated by the Company's standard payroll policies.

          (c) DISABILITY. If during the term of this Agreement, Employee fails
to perform his duties hereunder on account of illness or other incapacity for a
period of 45 consecutive days, or for 60 days during any six-month period, the
Company shall have the right to terminate this Agreement without further
obligation hereunder except as otherwise provided in disability plans generally
applicable to executive employees.

          (d) DEATH. If Employee dies during the term of this Agreement, this
Agreement shall terminate immediately, and Employee's legal representatives
shall be entitled to receive the base salary due Employee through the last day
of the calendar month in which his death shall have occurred and any other death
benefits generally applicable to executive employees.

          (e) RESIGNATION. Employee may resign his employment by giving the
Company written notice, which shall also include his resignation as an officer
of the Company. In the event of such a resignation, the Company shall be
obligated to pay Employee only the minimum base salary due him through the
effective date of the resignation.

     8. CONFIDENTIAL INFORMATION. Employee acknowledges that Employee may
receive, or contribute to the production of, Confidential Information. For
purposes of this Agreement, Employee agrees that "Confidential Information"
shall mean any and all information or material proprietary to the Company or
designated as Confidential Information by the Company and not generally known by
non-the Company personnel, which Employee develops or of or to which Employee

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may obtain knowledge or access through or as a result of Employee's relationship
with the Company (including information conceived, originated, discovered or
developed in whole or in part by Employee). Confidential Information includes,
but is not limited to, the following types of information and other information
of a similar nature (whether or not reduced to writing) related to the Company's
business: discoveries, inventions, ideas, concepts, research, development,
processes, procedures, "know-how", formulae, marketing or manufacturing
techniques and materials, marketing and development plans, business plans,
customer names and other information related to customers, price lists, pricing
policies, methods of operation, financial information, employee compensation,
and computer programs and systems. Confidential Information also includes any
information described above which the Company obtains from another party and
which the Company treats as proprietary or designates as Confidential
Information, whether or not owned by or developed by the Company, including
Confidential Information acquired by the Company from any of its affiliates.
Employee acknowledges that the Confidential Information derives independent
economic value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who can obtain
economic value from its disclosure or use. Information publicly known without
breach of this Agreement that is generally employed by the trade at or after the
time Employee first learns of such information, or generic information or
knowledge which Employee would have learned in the course of similar employment
or work elsewhere in the trade, shall not be deemed part of the Confidential
Information. Employee further agrees:

          a. To furnish the Company on demand, at any time during or after
employment, a complete list of the names and addresses of all present, former
and potential suppliers, financing sources, clients, customers and other
contacts gained while an employee of the Company in Employee's possession,
whether or not in the possession or within the knowledge of the Company.

          b. That all notes, memoranda, electronic storage, documentation and
records in any way incorporating or reflecting any Confidential Information
shall belong exclusively to the Company, and Employee agrees to turn over all
copies of such materials in Employee's control to the Company upon request or
upon termination of Employee's employment with the Company.

          c. That while employed by the Company and thereafter Employee will
hold in confidence and not directly or indirectly reveal, report, publish,
disclose or transfer any of the Confidential Information to any person or
entity, or utilize any of the Confidential Information for any purpose, except
in the course of Employee's work for the Company.

          d. That any idea in whole or in part conceived of or made by Employee
during the term of his employment, consulting, or similar relationship with the
Company which relates directly or indirectly to the Company's current or planned
lines of business and is made through the use of any of the Confidential
Information of the Company or any of the Company's equipment, facilities, trade

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secrets or time, or which results from any work performed by Employee for the
Company, shall belong exclusively to the Company and shall be deemed a part of
the Confidential Information for purposes of this Agreement. Employee hereby
assigns and agrees to assign to the Company all rights in and to such
Confidential Information whether for purposes of obtaining patent or copyright
protection or otherwise. Employee shall acknowledge and deliver to the Company,
without charge to the Company (but at its expense) such written instruments and
do such other acts, including giving testimony in support of Employee's
authorship or inventorship, as the case may be, necessary in the opinion of the
Company to obtain patents or copyrights or to otherwise protect or vest in the
Company the entire right and title in and to the Confidential Information.

     9. LOYALTY DURING EMPLOYMENT TERM. Employee agrees that during the term of
Employee's employment by the Company, Employee will devote substantially all of
Employee's business time and effort to and give undivided loyalty to the
Company, and will not engage in any way whatsoever, directly or indirectly, in
any business that is competitive with the Company or its affiliates, nor
solicit, or in any other manner work for or assist any business which is
competitive with the Company or its affiliates. During the term of Employee's
employment by the Company, Employee will undertake no planning for or
organization of any business activity competitive with the Company or its
affiliates, and Employee will not combine or conspire with any other employee of
the Company or any other person for the purpose of organizing any such
competitive business activity.

     10. NON-COMPETITION; NON-SOLICITATION. The parties acknowledge that
Employee will acquire much knowledge and information concerning the business of
the Company and its affiliates as the result of Employee's employment. The
parties further acknowledge that the scope of business in which the Company is
engaged as of the date of execution of this Agreement is world-wide and very
competitive and one in which few companies can successfully compete. Certain
activities by Employee after this Agreement is terminated would severely injure
the Company. Accordingly, until two years after this Agreement is terminated or
Employee leaves the employment of the Company for any reason, Employee will not:

          a. Engage in any work activity for or in conjunction with any business
or entity that is in competition with or is preparing to compete with the
Company;

          b. Persuade or attempt to persuade any potential customer or client to
which the Company or any of its affiliates has made a proposal or sale, or with
which the Company or any of its affiliates has been having discussions, not to
transact business with the Company or such affiliate, or instead to transact
business with another person or organization;

          c. Solicit the business of any customers, financing sources, clients,
suppliers, or business patrons of the Company or any of its predecessors or
affiliates which were customers, financing sources, clients, suppliers, or
business patrons of the Company at any time during Employee's employment by the
Company, or within three years prior to the Effective Date of Employee's

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employment, provided, however, that if Employee becomes employed by or
represents a business that exclusively sells products that do not compete with
products then marketed or intended to be marketed by the Company, such contact
shall be permissible; or

          d. Solicit, endeavor to entice away from the Company or any of its
affiliates, or otherwise interfere with the relationship of the Company or any
of its affiliates with, any person who is employed by or otherwise engaged to
perform services for the Company or any of its affiliates, whether for
Employee's account or for the account of any other person or organization.

     11. INJUNCTIVE RELIEF. It is agreed that the restrictions contained in
Sections 8, 9 and 10 of this Agreement are reasonable, but it is recognized that
damages in the event of the breach of any of those restrictions will be
difficult or impossible to ascertain; and, therefore, Employee agrees that, in
addition to and without limiting any other right or remedy the Company may have,
the Company shall have the right to an injunction against Employee issued by a
court of competent jurisdiction enjoining any such breach without showing or
proving any actual damage to the Company. This paragraph shall survive the
termination of Employee's employment.

     12. PART OF CONSIDERATION. Employee also agrees, acknowledges, covenants,
represents and warrants that he is fully and completely aware that, and further
understands that, the restrictive covenants contained in Sections 8, 9, and 10
of this Agreement are an essential part of the consideration for the Company
entering into this Agreement and that the Company is entering into this
Agreement in full reliance on these acknowledgments, covenants, representations
and warranties.

     13. TIME AND TERRITORY REDUCTION. If any of the periods of time and/or
territories described in Sections 8, 9 and 10 of this Agreement are held to be
in any respect an unreasonable restriction, it is agreed that the court so
holding may reduce the territory to which the restriction pertains or the period
of time in which it operates or may reduce both such territory and such period,
to the minimum extent necessary to render such provision enforceable.

     14. SURVIVAL. The obligations described in Sections 8 and 10 of this
Agreement shall survive any termination of this Agreement or any termination of
the employment relationship created hereunder.

     15. NONDELEGABILITY OF EMPLOYEE'S RIGHTS AND COMPANY ASSIGNMENT RIGHTS. The
obligations, rights and benefits of Employee hereunder are personal and may not
be delegated, assigned or transferred in any manner whatsoever, nor are such
obligations, rights or benefits subject to involuntary alienation, assignment or
transfer. Upon mutual agreement of the parties, the Company upon reasonable
notice to Employee may transfer Employee to an affiliate of the Company, which

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affiliate shall assume the obligations of the Company under this Agreement. This
Agreement shall be assigned automatically to any entity merging with or
acquiring the Company.

     16. AMENDMENT. Except for documents regarding the grant of stock options
and an Invention, Confidential Information and Non-Competition Agreement, this
Agreement contains, and its terms constitute, the entire agreement of the
parties and supersedes any prior agreements, including any Employment
Agreements, and it may be amended only by a written document signed by both
parties to this Agreement.

     17. GOVERNING LAW. This Agreement shall be governed by and construed and
enforced in accordance with the internal laws of the State of Arizona, exclusive
of the conflict of law provisions thereof, and the parties agree that any
litigation pertaining to this Agreement shall be in courts located in Maricopa
County, Arizona.

     18. ATTORNEYS' FEES. If any party finds it necessary to employ legal
counsel or to bring an action at law or other proceeding against the other party
to enforce any of the terms hereof, the party prevailing in any such action or
other proceeding shall be paid by the other party its reasonable attorneys' fees
as well as court costs all as determined by the court and not a jury.

     19. NOTICES. All notices, demands, instructions, or requests relating to
this Agreement shall be in writing and, except as otherwise provided herein,
shall be deemed to have been given for all purposes (i) upon personal delivery,
(ii) one day after being sent, when sent by professional overnight courier
service from and to locations within the Continental United States, (iii) five
days after posting when sent by United States registered or certified mail, with
return receipt requested and postage paid, or (iv) on the date of transmission
when sent by facsimile with a hard-copy confirmation; if directed to the person
or entity to which notice is to be given at his or its address set forth in this
Agreement or at any other address such person or entity has designated by
notice.

          To the Company:     ORTHOLOGIC CORP.
                              1275 West Washington Street
                              Tempe, AZ 85281
                              Attention: Chief Executive Officer

          To Employee:        Ruben Chairez

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     20. ENTIRE AGREEMENT. This Agreement, the Invention, Confidential
Information and Non-Competition Agreement bearing the same date as this
Agreement constitute the final written expression of all of the agreements
between the parties and are a complete and exclusive statement of those terms.
They supersede all understandings and negotiations concerning the matters
specified herein. Any representations, promises, warranties or statements made
by either party that differ in any way from the terms of this written Agreement
shall be given no force or effect. The parties specifically represent, each to
the other, that there are no additional or supplemental agreements between them
related in any way to the matters herein contained unless specifically included
or referred to herein. No addition to or modification of any provision of this
Agreement shall be binding upon any party unless made in writing and signed by
all parties. To the extent that there is any conflict between this Agreement and
the Invention, Confidential Information and Non-Competition Agreement, the
provisions of this Agreement shall govern.

     21. WAIVER. The waiver by either party of the breach of any covenant or
provision in this Agreement shall not operate or be construed as a waiver of any
subsequent breach by either party.

     22. INVALIDITY OF ANY PROVISION. The provisions of this Agreement are
severable, it being the intention of the parties hereto that should any
provisions hereof be invalid or unenforceable, such invalidity or
unenforceability of any provision shall not affect the remaining provisions
hereof, but the same shall remain in full force and effect as if such invalid or
unenforceable provisions were omitted.

     23. ATTACHMENTS. All attachments or exhibits to this Agreement are
incorporated herein by this reference as though fully set forth herein. In the
event of any conflict, contradiction or ambiguity between the terms and
conditions in this Agreement and any of its attachments, the terms of this
Agreement shall prevail.

     24. INTERPRETATION OF AGREEMENT. When a reference is made in this Agreement
to an article or section, such reference shall be to an article or section of
this Agreement unless otherwise indicated. The headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. Whenever the words "include,"
"includes," or "including" are used in this Agreement, they shall be deemed to
be followed by the words "without limitation."

     25. HEADINGS. Headings in this Agreement are for informational purposes
only and shall not be used to construe the intent of this Agreement.

     26. COUNTERPARTS. This Agreement may be executed simultaneously in any
number of counterparts, each of which shall be deemed an original but all of
which together shall constitute one and the same agreement.

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     27. BINDING  EFFECT;  BENEFITS.  This  Agreement  shall be binding upon and
shall  inure to the benefit of the parties  hereto and their  respective  heirs,
successors,  executors,  administrators  and assigns.  Notwithstanding  anything
contained  in  this  Agreement  to the  contrary,  nothing  in  this  Agreement,
expressed or implied, is intended to confer on any person other than the parties
hereto or their respective  heirs,  successors,  executors,  administrators  and
assigns any rights,  remedies,  obligations or liabilities under or by reason of
this Agreement.

     This Agreement has been executed by the parties as the date first written
above.

                                        ORTHOLOGIC CORP.
                                        ("Company")

                                        By: /s/ Thomas R. Trotter
                                            ------------------------------------
                                            Thomas R. Trotter
                                            President/Chief Executive Officer

                                        RUBEN CHAIREZ
                                        ("Employee")

                                        By: /s/ Ruben Chairez
                                            ------------------------------------

                                       9Exhibit 10.1

                            CORONADO INDUSTRIES, INC.

                        2001 MANAGEMENT STOCK OPTION PLAN

     I. PURPOSE

     This 2001  Management  Stock Option Plan is intended to aid in  maintaining
and developing  strong  management  through  encouraging the ownership of common
stock of  Coronado  Industries,  Inc. by  employees  of and  consultants  to the
Corporation through stimulating their efforts by giving suitable recognition, in
addition to salaries and bonuses, to their ability and industry which contribute
materially to the success of the Corporation's business interests.

     II. DEFINITIONS

     In this Plan,  except where the context otherwise  clearly  indicates,  the
following definitions apply:

          (1) "Board" means the Board of Directors of the Corporation.

          (2)   "Corporation"   means  Coronado   Industries,   Inc.,  a  Nevada
corporation,  or any entity that,  directly or  indirectly,  through one or more
intermediaries,  controls,  is  controlled  by or is under  common  control with
Coronado Industries, Inc.

          (3) "Date of Grant"  means  the date on which the Board  approves  the
grant of the Option under this Plan to the Optionee.

          (4) "Incentive  Stock Option" means any Option granted under this Plan
which complies with the provisions of Section 422A of the Internal  Revenue Code
of 1986, as amended from time to time (herein called the "Code").

          (5) "Key Employee" means any employee who is an officer or is employed
in a managerial,  professional  or other key position  (including  directors who
provide services beyond the normal activities of a director); provided, however,
the term "Key  Employee"  shall not include  any  employee  (hereinafter  called
"Shareholder  Employee") of the Corporation who, at the date of grant, owns more
than ten  percent  (10%) of the total  combined  voting  power of all classes of
stock of the Corporation (or its parent or subsidiary,  if applicable).  For the
purposes of this  limitation,  an employee  shall be considered as owning Shares
owned  directly  or  indirectly  by or for his  brothers  and  sisters,  spouse,
ancestors and lineal  descendants;  and stock owned directly or indirectly by or
for a  corporation,  partnership,  estate or trust shall be  considered as being
owned proportionately by or for its shareholders, partners or beneficiaries.
<PAGE>
          (6)  "Non-Qualified  Stock Option" means any Option granted under this
Plan which does not qualify in whole or in part as an  "incentive  stock option"
under the provisions of Section 422A of the Code.

          (7) "Option" means a common stock option granted pursuant to the Plan.

          (8) "Optionee"  means a person or entity to whom a common stock option
is granted under this Plan, including, but not limited to, a Key Employee.

          (9) "Plan" means this 2001 Management Stock Option Plan.

          (10) "Share"  means a share of the $.001 par value common stock of the
Corporation  that has been  previously  authorized  but unissued,  or issued and
reacquired by the Corporation.

          (11) "Value" means the arithmetic mean between the bid and asked price
published by the National Association of Securities Dealers,Inc.  (or registered
securities  exchange  or NASDAQ,  if  appropriate)  of the Shares on the date of
grant, or if not available for that day, then the next earliest preceding day in
which the price is  available.  If the Shares should become listed on a national
registered  securities  exchange,  then the Value shall be the reported  closing
price for the day in question.  In all other cases,  the Value shall be the fair
market value determined by the method the Board deems reasonable. Value shall be
determined  without  regard  to  securities  law  restrictions,   or  any  other
restriction which by its terms will lapse.

     III. TERM OF PLAN

     This Plan shall become  effective upon its adoption by the Board.  It shall
continue  in  effect  for a term of ten years  unless  sooner  terminated  under
Article XI. This Plan shall  remain in effect  after its term for the purpose of
administration  of any Option  granted  pursuant  to its  provisions.  No Option
granted  during the term of the Plan shall be  adversely  affected by the end of
the term of this Plan.  Options must be granted  within ten years of the date on
which the Plan is adopted or the date the Plan is approved by the  stockholders,
whichever is earlier.
<PAGE>
     IV. SHARES TO BE OPTIONED

     The maximum number of Shares which may be optioned and sold under this Plan
is  2,963,500  Shares.  If Options  granted  under this Plan shall  terminate or
expire  without  being wholly  exercised,  new Options may be granted under this
Plan  covering  the number of Shares to which  such  termination  or  expiration
relates.

     V. ADMINISTRATION OF THE PLAN

     The  Plan  shall  be   administered  by  the  Board  of  Directors  of  the
Corporation, or a committee of Board members, if such is appointed.

     VI. INCENTIVE STOCK OPTIONS

     One or more  Incentive  Stock Options may be granted to any Optionee  under
this Plan.  Each  Incentive  Stock Option granted under this Article VI shall be
subject to the following conditions except as provided in Article VI(7) below:

          (1) The aggregate  Value  (determined at the time the Incentive  Stock
Option is  granted)  of the  Shares  for which any Key  Employee  may be granted
Incentive  Stock Options in any calendar  year under all Incentive  Stock Option
plans of the Corporation shall not exceed $100,000.

          (2) The Option price shall be at least one hundred  percent  (100%) of
the Value of the Share at the date of  grant;  or, in the case of a  Shareholder
Employee  as defined in Article  II(5),  the Option  price shall be at least one
hundred ten percent (110%) of the Value of the Share at the Date of Grant.

          (3) During the Optionee's  lifetime,  Incentive  Stock Options granted
under this Article VI may not be sold,  pledged,  assigned or transferred in any
manner, and may be exercised during lifetime only by the Optionee. Any Incentive
Stock Option that is exercisable  after the  Optionee's  death is exercisable by
the person or persons to whom his rights  under the Option  shall have passed by
will or the laws of descent and distribution.

          (4) Each Incentive Stock Option granted under this Article VI shall be
exercised during the period beginning one year from the Date of Grant and ending
on the ten (10) year anniversary of the Date of Grant; provided, however, that a
Shareholder  Employee as defined in Article II(5) must  exercise each  Incentive
Stock Option during the period  beginning one year from Date of Grant and ending
on the five (5) year anniversary of the Date of Grant.

          (5) An Incentive  Stock Option shall be exercised  when written notice
of such exercise is given to the Corporation at its principal business office by
the Optionee and full payment for the Shares with respect to which the Option is
<PAGE>
exercised has been received by the Corporation. Until the Incentive Stock Option
is properly  exercised and the exercise price paid to the Corporation,  no right
to vote or receive  dividends or any other rights as a  stockholder  shall exist
with respect to the optioned Shares  notwithstanding the exercise of the Option.
No  adjustment  will be made for a dividend or other rights for which the record
date is prior to the date that the stock certificate is issued.  Payment for the
Shares shall be made with cash,  previously acquired Shares having a Value equal
to the Option price, or previously  acquired Shares having a Value less than the
Option price,  plus cash. Upon exercise of an Incentive Stock Option and payment
of the purchase price,  the  Corporation  shall promptly issue the Shares to the
Optionee.

          (6) In the event an Optionee who is an Employee of the Corporation who
during his lifetime ceases to be employed by the Corporation for any reason, any
Incentive  Stock  Option or  unexercised  portion  thereof  which was  otherwise
exercisable  on the  date of  termination  of  employment  shall  expire  unless
exercised  within a period  of three  (3)  months  from the date his  employment
terminates, but in no event later than ten (10) years from the Date of Grant. In
the event of the death of an Optionee  (who is an  employee of the  Corporation)
during the three (3) month period,  the Incentive  Stock Option may be exercised
by the person or persons to whom his rights  under the Option  passed by will or
laws of descent and  distribution  to the same extent and during the same period
that the  Optionee  could have  exercised  the  Incentive  Stock  Option had the
Optionee not died. If an Optionee dies while  employed by the  Corporation,  any
Option or  unexercised  portion  thereof which was otherwise  exercisable at the
time of the Optionee's  death may be exercised  within twelve (12) months of the
Optionee's  death,  but in no event  later  than ten (10) years from the Date of
Grant,  by the person or persons to whom his rights  under the Option  passed by
will or laws of  descent of  distribution.  In the event an  Optionee  who is an
Employee of the Corporation ceases to be employed by the Corporation  because he
has become "disabled" as defined by Section 22(e)3 of the Internal Revenue Code,
as amended, such Optionee may exercise any Option or unexercised portion thereof
within 12 months from the date his employment terminates,  but in no event later
than ten (10) years from the Date of Grant. An Optionee's  continuous employment
shall  not  be  deemed  interrupted  by a  leave  of  absence  approved  by  the
Corporation.

          (7) All of the above notwithstanding,  in the event that any Incentive
Stock  Option  granted  under this  Article VI fails to qualify as an  incentive
stock option as defined in Section 422A of the Internal Revenue Code of 1954, as
amended, for any reason whatsoever,  such option shall automatically,  effective
as of the date of grant, be a Non-qualified Stock Option, with the same exercise
terms as originally  granted except that all  limitations  herein which apply to
qualification as an Incentive Stock Option,  including but not limited to, terms
concerning employment and valuation, shall be inapplicable.
<PAGE>
     VII. NON-QUALIFIED STOCK OPTIONS

     One or more  Non-qualified  Stock  Options  may be granted to any  Optionee
under this Plan. Each Non-qualified  Stock Option granted under this Article VII
shall be subject to the following conditions:

          (1) The  number  of  Shares  which  may be  acquired  pursuant  to any
Non-qualified Stock Option or Options granted to an Optionee during any calendar
year shall not exceed 750,000 Shares.

          (2) The Option  price  shall be at least  fifty  percent  (50%) of the
Value of the Share at the Date of Grant.

          (3)  During  the  Optionee's  lifetime,  Non-qualified  Stock  Options
granted under this Article VII may not be sold, pledged, assigned or transferred
in any manner,  and may be exercised during the Optionee's  lifetime only by the
Optionee.  Any  Option  that  is  exercisable  after  the  Optionee's  death  is
exercisable  by the person or persons to whom his rights  under the Option shall
have passed by will or the laws of descent and distribution.

          (4) Each  Non-qualified  Stock Option  granted  under this Article VII
shall be exercised  during the period  beginning on the Date of Grant and ending
on the ten (10) year anniversary of the Date of Grant.

          (5) A  Non-qualified  Stock  Option  shall be  exercised  when written
notice of such exercise is given to the  Corporation  at its principal  business
office by the Optionee and full payment for the Shares with respect to which the
option is exercised has been received by the Corporation.  Until the issuance of
the stock  certificates,  no right to vote or to receive  dividends or any other
rights  as a  stockholder  shall  exist  with  respect  to the  optioned  Shares
notwithstanding  the exercise of the Option.  No  adjustment  will be made for a
dividend or other rights for which the record date is prior to the date that the
stock  certificate  is issued.  Payment for the Shares  shall be made with cash,
previously  acquired  Shares  having  a Value  equal  to the  Option  price,  or
previously acquired Shares having a Value less than the Option price, plus cash.
Upon exercise of  Non-qualified  Stock Option and payment of the purchase price,
the Corporation shall promptly issue the Shares to the Optionee.

          (6) In the event an Optionee who is an Employee of the Corporation who
during his lifetime ceases to be employed by the Corporation for any reason, any
Non-qualified  Stock Option or unexercised  portion  thereof which was otherwise
exercisable  on the  date of  termination  of  employment  shall  expire  unless
<PAGE>
exercised  within a period  of three  (3)  months  from the date his  employment
terminates, but in no event later than ten (10) years from the Date of Grant. In
the event of the death of an Optionee  (who is an  employee of the  Corporation)
during  the  three (3) month  period,  the  Non-qualified  Stock  Option  may be
exercised by the person or persons to whom his rights under the Option passed by
will or laws of descent and  distribution to the same extent and during the same
period that the Optionee could have exercised the Non-qualified Stock Option had
the Optionee not died.  If an Optionee dies while  employed by the  Corporation,
any  Non-qualified  Stock  Option  or  unexercised  portion  thereof  which  was
otherwise  exercisable  at the time of the  Optionee's  death  may be  exercised
within twelve (12) months of the  Optionee's  death,  but in no event later than
ten (10)  years  from the Date of Grant,  by the  person or  persons to whom his
rights under the Option  passed by will or laws of descent or  distribution.  An
Optionee's  continuous  employment shall not be deemed interrupted by a leave of
absence approved by the Corporation.

     VIII. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

     Whenever a stock split or stock dividend  occurs,  (1) the number of Shares
that can  thereafter  be purchased,  and the Option price per Share,  under each
Option that has been granted  under this Plan and not  exercised,  and (2) every
number of Shares used in  determining  whether a particular  Option is grantable
thereafter, shall be appropriately adjusted.

     IX. CORPORATE TRANSACTIONS

          (1) If the  Corporation  is dissolved or  liquidated,  or is merged or
consolidated  into or with  another  corporation,  other  than  by a  merger  or
consolidation  in which  the  Company  is the  surviving  corporation,  the then
exercisable  and  unexercised  Options  granted under the Plan may or may not be
exercisable  after  the  date  of  such  dissolution,   liquidation,  merger  or
consolidation,  as  determined  by the Board at the time of such event or at the
Date of Grant of the Option.

          (2)   Notwithstanding  any  provision  of  this  Plan,  the  Board  is
authorized  to take  such  action  upon the Date of Grant of an Option or at any
time  thereafter as it  determines  to be necessary or  advisable,  and fair and
equitable to  Optionees,  with respect to Options held by Optionees in the event
of a sale or transfer of all or substantially  all of the Company's  assets,  or
merger  or  consolidation  (other  than a merger or  consolidation  in which the
Company  is the  surviving  corporation  and no  shares  are  converted  into or
exchanged  for  securities,  cash or any other thing of value).  Such action may
include (but is not limited to) the following:
<PAGE>
               (a) Accelerating the  exercisability  of any Option to permit its
exercise  in full during such  period as the  Committee  in its sole  discretion
shall  prescribe  following  the public  announcement  of a sale or  transfer of
assets or merger or consolidation.

               (b) Permitting an Optionee, at any time during such period as the
Committee in its sole discretion  shall prescribe  following the consummation of
such a merger,  consolidation  or sale or transfer of assets,  to surrender  any
Option (or any portion thereof) to the Company for cancellation.

               (c)   Requiring  any   Optionee,   at  any  time   following  the
consummation of such a merger,  consolidation or sale or transfer of assets,  if
required by the terms of the  agreements  relating  thereto,  to  surrender  any
Option (or any portion thereof) to the Company in return for a substitute Option
which is issued by the corporation surviving such merger or consolidation or the
corporation  which acquired such assets (or by an affiliate of such corporation)
and which the Committee,  in its sole discretion,  determines to have a value to
the Optionee substantially equivalent to the value to the Optionee of the Option
(or portion thereof) so surrendered.

          (4) Subject to any action which the Committee may take pursuant to the
provisions of this Article IX, in the event of any merger, consolidation or sale
or  transfer  of  assets  referred  to in this  Article  IX,  upon any  exercise
thereafter of an Option,  and Optionee  shall,  at no additional cost other than
payment of the Option price,  be entitled to receive in lieu of Shares,  (i) the
number and class of Shares or other  security,  or (ii) the  amount of cash,  or
(iii)  property,  or (iv) a combination of the foregoing,  to which the Optionee
would have been entitled pursuant to the terms of such merger,  consolidation or
sale or transfer of assets,  if immediately  prior thereto the Optionee had been
the holder of record of the number of Shares for which such  Option  shall be so
exercised.

     X.  ADDITIONAL  PROVISIONS  APPLICABLE TO OPTIONS AND CERTAIN POWERS OF THE
BOARD

     The Board, in addition to any other powers granted it hereunder, shall have
the power, subject to the express provisions of the Plan:

          (1) To determine the provisions of the  respective  Options other than
those provisions  expressly stated or limited herein, which terms and provisions
may be set forth in Option agreements:

          (2) Without  limiting the generality of the  foregoing,  to provide in
Option agreements, in its discretion:
<PAGE>
               (a) For an agreement  by the  Optionee to render  services to the
          Corporation  upon such terms and  conditions  as shall be specified in
          the agreement.

               (b) For restrictions on the transfer, sale, or disposition of the
          stock to be issued to the Optionee upon the exercise of his Option.

          (3) To require, whether or not provided for in the pertinent Option or
Option  agreement of any person  exercising an Option granted under the Plan, at
the time of such  exercise,  the  execution  of any  paper or the  making of any
representation  or the giving of any  commitment  when the Board  shall,  in its
discretion,  deem necessary or advisable by reason of the securities laws of the
United States or of any State.

          (4) To amend Options  previously  granted and  outstanding  under this
Plan, but no amendment to any Option agreement shall be made without the consent
of the Optionee if such amendment  would adversely  affect the Optionee;  and no
amendment shall be made to any Option  agreement which would cause the inclusion
therein of any term or provisions  inconsistent with the Plan or Section 422A of
the Internal Revenue Code, as amended (if applicable).

          (5) To grant Options  after the date the Plan is adopted  provided the
Options  granted  are  specifically  contingent  upon  approval  of this Plan by
holders of a majority of the Corporation's outstanding common stock.

     XI. POWER TO AMEND OR TERMINATE THE PLAN

          (1) The Board may terminate  this Plan at any time, or amend or modify
the  Plan  without  shareholder  approval  in such  respects  as it  shall  deem
advisable in order that Options  granted to Key  Employees  shall be  "Incentive
Stock Options" as defined in Section 422A of the Internal  Revenue Code of 1954,
as  amended,  or to conform to any change in the law, or in order to comply with
the  provisions  of any  rule or  regulations  of the  Securities  and  Exchange
Commission or other applicable  governmental  agency required to exempt the Plan
or any  transactions  under this Plan from the operation of Section 16(b) of the
Securities Exchange Act of 1934, as amended, or in any other respect which shall
not be inconsistent  with the provisions of Section 422A of the Internal Revenue
Code of 1954,  as amended,  or Section 16(b) of the  Securities  Exchange Act of
1934, as amended.

          (2) The Board may  terminate  this  Plan.  Any  termination  shall not
affect stock options  already granted as those Options shall remain in force and
effect  as if  this  Plan  had  not  been  terminated.  The  termination  or any
modification  or  amendment  of this Plan shall not,  without the consent of the
Optionee, affect his rights under an Option previously granted to him.
<PAGE>
          (3) Only with shareholder approval can the Board amend the Plan in the
following areas:

               (a)   Increasing  the  maximum  number  of  Shares  that  may  be
          effectively  optioned,   otherwise  than  through  the  making  of  an
          adjustment pursuant to Article IX.

               (b) Changing the class of employees eligible for Options.

               (c) Decreasing the prices at which previously granted Options may
          be exercised.

     XII. STOCKHOLDER APPROVAL

          This Plan shall become  effective  upon receipt by the  Corporation of
approval  from the  holders of a majority  of the shares of common  stock of the
Corporation  entitled to vote thereon.  This Plan shall not be effective  unless
such consents are obtained within twelve (12) months before or after the Plan is
adopted.

                                       CORONADO INDUSTRIES, INC.

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

ATTEST:

---------------------------
G. Richard Smith, Secretary

Date Approved By Shareholders: January ____, 2002

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