THIS WARRANT AND THE UNDERLYING SHARES OF COMMON STOCK REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
"ACT"), AND ARE "RESTRICTED SECURITIES" AS THAT TERM IS DEFINED IN RULE 144
UNDER THE ACT. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT, THE
AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF MOLECULAR
DIAGNOSTICS, INC.

                                                               Warrant No. DB3


                   WARRANT TO PURCHASE SHARES OF COMMON STOCK

                      WARRANT TO PURCHASE 500,000 SHARES
                 (SUBJECT TO ADJUSTMENT AS SET FORTH HEREIN)

                        EXERCISE PRICE $0.17 PER SHARE
                 (SUBJECT TO ADJUSTMENT AS SET FORTH HEREIN)

                          ISSUE DATE: MARCH 19, 2004

VOID AFTER 3:00 P.M., CENTRAL TIME, ON THE FIFTH ANNIVERSARY OF THE ISSUE DATE

      THIS CERTIFIES THAT Dan Burns, P.O. Box 1086, Del Mar, CA 92014-1086 is
entitled to purchase from Molecular Diagnostics, Inc., a Delaware corporation
(hereinafter called the "Company"), with its principal office located at 414
North Orleans Street, Suite 510, Chicago, Illinois 60610, at any time after the
Exercise Date (as defined below), but before 3:00 P.M., Central Time, on the
Expiration Date (as defined below), at the Exercise Price (as defined below),
the number of shares (the "Warrant Shares") of the Company's common stock, par
value $0.001 per share (the "Common Stock") set forth above. The number of
Shares purchasable upon exercise of this Warrant and the Exercise Price per
Share shall be subject to adjustment from time to time as set forth in Section 4
below. As consideration for this Warrant, the Warrant holder agrees to forgive
all outstanding indebtedness of the Company to the Warrant holder.

      SECTION 1.  DEFINITIONS

      The following terms used in this Warrant shall have the following meanings
(unless otherwise expressly provided herein):

      The "Act."  The Securities Act of 1933, as amended.

      The "Commission."  The Securities and Exchange Commission.

      The "Company."  Molecular Diagnostics, Inc.

      "Common Stock."  The Company's Common Stock, par value $0.001 per share.

      "Current Market Price."  The Current Market Price shall be determined
as follows:

            (a) if the security at issue is listed on a national securities
            exchange or admitted to unlisted trading privileges on such an
            exchange or quoted on either the National Market System or the Small
            Cap Market of the automated quotation service operated by The Nasdaq
            Stock Market, Inc. ("Nasdaq"), the current value shall be the last
            reported sale price of that security on such exchange or system on
            the day for which the Current Market Price is to be determined or,
            if no such sale is made on such day, the average of the highest
            closing bid and lowest asked price for such day on such exchange or
            system; or

            (b) if the security at issue is not so listed or quoted or admitted
            to unlisted trading privileges, the Current Market Value shall be
            the average of the last reported highest bid and lowest asked prices
            quoted on the Nasdaq Electronic Bulletin Board, or, if not so
            quoted, then by the National Quotation Bureau, Inc. on the last
            business day prior to the day for which the Current Market Price is
            to be determined; or

            (c) if the security at issue is not so listed or quoted or admitted
            to unlisted trading privileges and bid and asked prices are not
            reported, the current market value shall be determined in such
            reasonable manner as may be prescribed from time to time by the
            Board of Directors of the Company, subject to the objection
            procedures hereinafter described.

      "Exercise Date."  Immediate

      "Exercise Price."  $0.17 per Share, as modified from time to time in
accordance with the provisions of this Warrant.

      "Expiration Date."  The fifth anniversary of the Issue Date indicated
on the first page of this Warrant.

      "Holder" or "Warrantholder." The person to whom this Warrant is issued and
any valid transferee thereof pursuant to Section 3.1 below.

      "NASD."  The National Association of Securities Dealers, Inc.

      "Nasdaq."  The automated quotation system operated by the Nasdaq Stock
Market, Inc.

      "Termination of Business." Any sale, lease or exchange of all, or
substantially all, of the Company's assets or business or any dissolution,
liquidation or winding up of the Company.

      "Warrant." This Warrant and any other warrants issued in substitution for
or replacement thereof, including those evidenced by a certificate or
certificates originally issued or issued upon division, exchange, substitution
or transfer pursuant to this Warrant.

      "Warrant Shares." The Common Stock purchasable upon exercise of this
Warrant including the Common Stock underlying unexercised portions of this
Warrant.

      SECTION 2.  TERM OF WARRANTS; EXERCISE OF WARRANT

      2.1. Exercise of Warrant.

            (a) Subject to the terms of this Warrant, the Holder shall have the
            right, at any time beginning on the Exercise Date but prior to 3:00
            p.m., Central Time, on the Expiration Date, to purchase from the
            Company up to the number of fully paid and nonassessable Warrant
            Shares to which the Holder may at the time be entitled to purchase
            pursuant to this Warrant, upon surrender to the Company, at its
            principal office, of the Warrant to be exercised, together with the
            purchase form on the reverse thereof, duly filled in and signed, and
            upon payment to the Company of the Exercise Price for the number of
            Warrant Shares in respect of which the Warrant is then exercised,
            but in no event for less than 100 Warrant Shares (unless fewer than
            an aggregate of 100 Warrant Shares are then purchasable under all
            outstanding Warrants held by a Holder).

            (b) In lieu of payment of the Exercise Price, the Holder may require
            the Company to convert this Warrant into shares of Common Stock (the
            "Conversion Right") as provided for in this Section 2.1(b). Upon
            exercise of the Conversion Right, the Company shall deliver to the
            Holder (without payment by the Holder of any of the Exercise Price)
            that number of shares of Common Stock equal to the quotient obtained
            by dividing (x) the value of the Warrant at the time the Conversion
            Right is exercised (determined by subtracting the aggregate Exercise
            Price in effect immediately prior to the exercise of the Conversion
            Right from the aggregate Current Market Price for the Common Stock
            immediately prior to the exercise of the Conversion Right) by (y)
            the Current Market Price of the Common Stock.

      2.2. Payment of Exercise Price. Payment of the aggregate Exercise Price
may be made in cash or by check, or any combination thereof.

      2.3. Issuance of Shares. Upon surrender of this Warrant and payment of the
applicable Exercise Price, the Company shall issue and cause to be delivered
with all reasonable dispatch to or upon the written order of the Holder and in
the name or names the Holder may designate, a certificate or certificates for
the number of full Warrant Shares so purchased upon the exercise of this
Warrant, together with cash, as provided in Section 12 hereof, in respect of any
fraction of a Warrant Share that would otherwise have been issuable upon
exercise of this Warrant.

      2.4. Status as Holder of Shares. Upon receipt of this Warrant by the
company following any exercise by the Holder, the Holder shall be deemed to be
the holder of record of the Warrant Shares issuable upon exercise,
notwithstanding that the transfer books of the Company may then be closed or
that certificates representing the Warrant Shares may not have been prepared or
actually delivered to the Holder.

      SECTION 3.  TRANSFERABILITY AND FORM OF WARRANT

      3.1. Limitation on Transfer. Any assignment or transfer of this Warrant
shall be made by presentation and surrender hereof to the Company at its
principal office or the office of its transfer agent, if any, accompanied by a
duly executed Assignment Form. Upon the presentation and surrender of these
items to the Company, the Company, at its sole expense, shall execute and
deliver to the transferee or transferees of this Warrant a new Warrant or
Warrants, in the name of the transferee or transferees named in the Assignment
Form, and this Warrant shall at that time be canceled.

      3.2. Exchange of Certificate. This Warrant may be exchanged for another
Warrant or Warrants entitling the Warrantholder to purchase a like aggregate
number of Warrant Shares as the Warrant or Warrants surrendered then entitled
the Warrantholder to purchase. Any Warrantholder desiring to exchange a Warrant
shall make a request in writing delivered to the Company, and shall surrender,
properly endorsed, with signatures guaranteed, the Warrant to be exchanged.
Thereupon, the Company shall execute and deliver to the person entitled thereto
a new Warrant as requested.

      3.3. Mutilated, Lost, Stolen, or Destroyed Certificate. In case the
certificate evidencing this Warrant shall be mutilated, lost, stolen or
destroyed, the Company shall, at the request of the Warrantholder, issue and
deliver in exchange and substitution for and upon cancellation of the mutilated
certificate, or in lieu of and substitution for the certificate lost, stolen or
destroyed, a new Warrant of like tenor representing an equivalent right or
interest, but only upon receipt of evidence satisfactory to the Company of the
loss, theft or destruction of the Warrant and a bond of indemnity, if requested,
also satisfactory in form and amount, at the applicant's cost. Applicants for
substitute Warrants shall also comply with any other reasonable regulations and
pay any other reasonable charges the Company may request.

      SECTION 4.  ADJUSTMENT OF NUMBER OF SHARES

      The number and kind of securities purchasable upon the exercise of this
Warrant and the Exercise Price payable shall be subject to adjustment from time
to time upon the happening of certain events, as follows:

      4.1. Adjustments. The number of Warrant Shares purchasable upon the
exercise of this Warrant and the Exercise Price shall be subject to adjustments
as follows:

            (a) In case the Company shall (i) pay a dividend in Common Stock or
            make a distribution to its stockholders in Common Stock, (ii)
            subdivide its outstanding Common Stock, (iii) combine its
            outstanding Common Stock into a smaller number of shares of Common
            Stock, or (iv) issue by classification of its Common Stock other
            securities of the Company, then in any of the foregoing cases, the
            number of Warrant Shares purchasable upon exercise of the Warrant
            immediately prior thereto shall be adjusted so that the
            Warrantholder shall be entitled to receive the kind and number of
            Warrant Shares or other securities of the Company that it would have
            owned or would have been entitled to receive immediately after the
            happening of any of the events described above, had the Warrant been
            exercised immediately prior to the happening of the event or any
            record date with respect thereto. Any adjustment made pursuant to
            this subsection 4.1(a) shall become effective immediately after the
            effective date of the event retroactive to the record date, if any,
            for the event.

            (b) If the Company shall distribute to all or substantially all
            holders of its Common Stock evidences of its indebtedness or assets
            (excluding cash dividends or distributions out of earnings) or
            rights, options, warrants, or convertible securities containing the
            right to subscribe for or purchase Common Stock, then in each case
            the number of Warrant Shares thereafter purchasable upon the
            exercise of this Warrant shall be determined by multiplying the
            number of Warrant Shares theretofore purchasable upon exercise of
            this Warrant by a fraction, of which the numerator shall be the then
            Current Market Price on the date of distribution, and the
            denominator of which shall be the Current Market Price on the date
            of distribution minus the then fair value (determined as provided in
            subparagraph (d) below) of the portion of the assets or evidences of
            indebtedness so distributed or of the subscription rights, options,
            warrants, or convertible securities applicable to one share. The
            adjustment shall be made whenever any distribution is made and shall
            become effective on the date of distribution retroactive to the
            record date for the determination of stockholders entitled to
            receive the distribution.

            (c) No adjustment in the number of Warrant Shares purchasable
            pursuant to this Warrant shall be required unless the adjustment
            would require an increase or decrease of at least one percent in the
            number of Warrant Shares then purchasable upon the exercise of this
            Warrant or, if this Warrant is not then exercisable, the number of
            Warrant Shares purchasable upon the exercise of this Warrant on the
            first date thereafter that this Warrant becomes exercisable;
            provided, however, that any adjustments which by reason of this
            subsection (4.1(c)) are not required to be made immediately shall be
            carried forward and taken into account in any subsequent adjustment.

            (d) Whenever the number of Warrant Shares purchasable upon the
            exercise of this Warrant is adjusted, as herein provided, the
            Exercise Price payable upon exercise of this Warrant shall be
            adjusted by multiplying the Exercise Price immediately prior to the
            adjustment by a fraction, the numerator of which shall be the number
            of Warrant Shares purchasable upon the exercise of the Warrant
            immediately prior to the adjustment, and the denominator of which
            shall be the number of Warrant Shares so purchasable immediately
            thereafter.

            (e) Whenever the number of Warrant Shares purchasable upon exercise
            of this Warrant is adjusted as herein provided, the Company shall
            cause to be promptly mailed to the Warrantholder by first class
            mail, postage prepaid, notice of the adjustment and a certificate of
            the chief financial officer of the Company setting forth the number
            of Warrant Shares purchasable upon the exercise of this Warrant
            after the adjustment, a brief statement of the facts requiring the
            adjustment and the computation by which the adjustment was made.

            (f) For the purpose of this Section 4.1, the term "Common Stock"
            shall mean (i) the class of stock designated as the Common Stock of
            the Company as of the Issue Date of this Warrant, or (ii) any other
            class of stock resulting from successive changes or
            reclassifications of the Common Stock consisting solely of changes
            in par value, or from par value to no par value, or from no par
            value to par value. If, at any time, as a result of an adjustment
            made pursuant to this Section 4, the Warrantholder shall become
            entitled to purchase any securities of the Company other than Common
            Stock, then (y) if the Warrantholder's right to purchase is on any
            other basis than that available to all holders of the Company's
            Common Stock, the Company shall obtain an opinion of an independent
            investment banking firm valuing the other securities and (z)
            thereafter the number of other securities so purchasable upon
            exercise of this Warrant shall be subject to adjustment from time to
            time in a manner and on terms as nearly equivalent as practicable to
            the provisions with respect to the Warrant Shares contained in this
            Section 4.

            (g) Upon the expiration of any rights, options, warrants, or
            conversion privileges, if they shall have not been exercised, the
            number of Warrant Shares purchasable upon exercise of the Warrants,
            to the extent the Warrants have not then been exercised, shall, upon
            such expiration, be readjusted and shall thereafter be as they would
            have been had they been originally adjusted (or had the original
            adjustment not been required, as the case may be) on the basis of
            (i) the fact that the only shares of Common Stock so issued were the
            shares of Common Stock, if any, actually issued or sold upon the
            exercise of the rights, options, warrants, or conversion privileges,
            and (ii) the fact that the shares of Common Stock, if any, were
            issued or sold for the consideration actually received by the
            Company upon the exercise plus the consideration, if any, actually
            received by the Company for the issuance, sale or grant of all such
            rights, options, warrants, or conversion privileges whether or not
            exercised; provided, however, that no readjustment shall have the
            effect of decreasing the number of Warrant Shares purchasable upon
            exercise of this Warrant by an amount in excess of the amount of the
            adjustment initially made in respect of the issuance, sale, or grant
            of such rights, options, warrants, or conversion rights.

      4.2. No Adjustment for Dividends. Except as provided in Section 4.1, no
adjustment in respect of any dividends or distributions out of earnings shall be
made during the term, or upon the exercise, of this Warrant.

      4.3. No Adjustment in Certain Cases. No adjustments shall be made pursuant
to Section 4 hereof in connection with the grant or exercise of presently
authorized or outstanding options to purchase, or the issuance of shares of
Common Stock under, the Company's director or employee benefit plan.

      4.4. Preservation of Purchase Rights upon Reclassification, Consolidation,
etc. In case of any consolidation of the Company with or merger of the Company
into another corporation, or in case of any sale or conveyance to another
corporation of the property, assets, or business of the Company as an entirety
or substantially as an entirety, the Company or successor or purchasing
corporation, as the case may be, shall execute with the Warrantholder an
agreement that the Warrantholder shall have the right thereafter upon payment of
the Exercise Price in effect immediately prior to the action to purchase, upon
exercise of this Warrant, the kind and amount of shares and other securities and
property that it would have owned or have been entitled to receive after the
happening of the consolidation, merger, sale, or conveyance had this Warrant
been exercised immediately prior to the action. In the event of a merger
described in Section 368(a)(2)(E) of the Internal Revenue Code of 1986, in which
the Company is the surviving corporation, the right to purchase Shares under the
Warrants shall terminate on the date of such merger and thereupon the Warrants
shall become null and void, but only if the controlling corporation shall agree
to substitute for the Warrants, its warrants which entitle the holder thereof to
purchase upon their exercise the kind and amount of shares and other securities
and property which it would have owned or been entitled to receive had the
Warrants been exercised immediately prior to such merger. Any such agreements
referred to in this Section 4.4 shall provide for adjustments, which shall be as
nearly equivalent as may be practicable to the adjustments provided for in
Section 4 hereof. The provisions of this Section (4.4) shall similarly apply to
successive consolidations, mergers, sales, or conveyances.

      4.5. Par Value of Shares of Common Stock. Before taking any action which
would cause an adjustment effectively reducing the portion of the Exercise Price
allocable to each Share below the par value per share of the Common Stock
issuable upon exercise of the Warrants, the Company will take any corporate
action which may, in the opinion of its counsel, be necessary in order that the
Company may validly and legally issue fully paid and nonassessable Common Stock
upon exercise of the Warrants.

      4.6. Independent Public Accountants. The Company may retain a firm of
independent public accountants of recognized national standing (which may be any
such firm regularly employed by the Company) to make any computation required
under this Section 4, and a certificate signed by the firm shall be conclusive
evidence of the correctness of any computation made under this Section 4.

      4.7. Treasury Stock. For purposes of this Section 4, shares of Common
Stock owned or held at any relevant time by, or for the account of, the Company,
in its treasury or otherwise, shall not be deemed to be outstanding for purposes
of the calculations and adjustments described.

      SECTION 5.  NOTICE TO HOLDERS

      If, prior to the expiration of this Warrant either by its terms or by its
exercise in full, any of the following shall occur:

            (a) the Company shall declare a dividend or authorize any other
            distribution on its Common Stock; or

            (b) the Company shall authorize the granting to the shareholders of
            its Common Stock of rights to subscribe for or purchase any
            securities or any other similar rights; or

            (c) any reclassification, reorganization or similar change of the
            Common Stock, or any consolidation or merger to which the Company is
            a party, or the sale, lease, or exchange of any significant portion
            of the assets of the Company; or

            (d) the voluntary or involuntary dissolution, liquidation or winding
            up of the Company; or

            (e) any purchase, retirement or redemption by the Company of its
            Common Stock;

then, and in any such case, the Company shall deliver to the Holder or Holders
written notice thereof at least 30 days prior to the earliest applicable date
specified below with respect to which notice is to be given, which notice shall
state the following:

            (x) the date on which a record is to be taken for the purpose of the
            dividend, distribution or rights, or, if a record is not to be
            taken, the date as of which the holders of Common Stock of record
            entitled to the dividend, distribution or rights will be determined;

            (y) the date on which any reclassification, reorganization,
            consolidation, merger, sale, transfer, dissolution, liquidation,
            winding up or purchase, retirement or redemption is expected to
            become effective, and the date, if any, as of which the Company's
            holders of Common Stock of record shall be entitled to exchange
            their Common Stock for securities or other property deliverable upon
            the reclassification, reorganization, consolidation, merger, sale,
            transfer, dissolution, liquidation, winding up, purchase, retirement
            or redemption; and

            (z) if any matters referred to in the foregoing clauses (x) and (y)
            are to be voted upon by holders of Common Stock, the date as of
            which the shareholders entitled to vote will be determined.

      SECTION 6.  OFFICERS' CERTIFICATE

      Whenever the Exercise Price or the aggregate number of Warrant Shares
purchasable pursuant to this Warrant shall be adjusted as required by the
provisions of Section 4 above, the Company shall promptly file with its
Secretary or an Assistant Secretary at its principal office, and with its
transfer agent, if any, an officers' certificate executed by the Company's
President and Secretary or Assistant Secretary, describing the adjustment and
setting forth, in reasonable detail, the facts requiring the adjustment and the
basis for and calculation of the adjustment in accordance with the provisions of
this Warrant. Each such officers' certificate shall be made available to the
Holder or Holders of this Warrant for inspection at all reasonable times, and
the Company, after each adjustment, shall promptly deliver a copy of the
officers' certificate relating to that adjustment to the Holder or Holders of
this Warrant. The officers' certificate described in this Section 6 shall be
deemed to be conclusive as to the correctness of the adjustment reflected
therein if, and only if, no Holder of this Warrant delivers written notice to
the Company of an objection to the adjustment within 30 days after the officers'
certificate is delivered to the Holder or Holders of this Warrant. The Company
will make its books and records available for inspection and copying during
normal business hours by the Holder so as to permit a determination as to the
correctness of the adjustment. Failure to prepare or provide the officers'
certificate shall not modify the parties' rights hereunder.

      SECTION 7.  RESERVATION OF WARRANT SHARES

      As soon as an increase in the number of authorized shares is approved by
the stockholders of the Company, the Company shall at all times thereafter keep
reserved so long as this Warrant remains outstanding, out of its authorized and
unissued Common Stock, a number of shares of Common Stock sufficient to support
the full exercise hereof. Every transfer agent for the Common Stock and other
securities of the Company issuable upon the exercise of this Warrant will be
irrevocably authorized and directed at all times to reserve a number of
authorized shares and other securities as shall be requisite for such purpose.
The Company will keep a copy of this Warrant on file with every transfer agent
for the Common Stock and other securities of the Company issuable upon the
exercise of this Warrant. The Company will supply every transfer agent with duly
executed stock and other certificates, as appropriate, for such purpose and will
provide or otherwise make available any cash which may be payable as provided in
Section 11 hereof.

      SECTION 8.  RESTRICTIONS ON TRANSFER.

      The Warrantholder agrees that prior to making any disposition of this
Warrant or the Warrant Shares, the Warrantholder shall give written notice to
the Company describing briefly the manner in which any proposed disposition is
to be made; and no disposition shall be made if the Company has notified the
Warrantholder that, in the opinion of counsel reasonably satisfactory to the
Warrantholder, a registration statement or other notification or post-effective
amendment thereto (hereinafter collectively a "Registration Statement") under
the Act is required with respect to the disposition and no Registration
Statement has been filed by the Company with, and declared effective, if
necessary, by, the Commission.

      SECTION 9.  PAYMENT OF TAXES

      The Company will pay all documentary stamp taxes, if any, attributable to
the initial issuance of this Warrant or the shares of Common Stock comprising
the Warrant Shares; provided, however, the Company shall not be required to pay
any tax that may be payable in respect of any transfer of the Warrants or
Warrant Shares.

      SECTION 10. TRANSFER TO COMPLY WITH THE SECURITIES ACT OF 1933

      This Warrant, the Warrant Shares, and any other securities issued or
issuable upon exercise of this Warrant, may not be offered, sold or transferred,
in whole or in part, except in compliance with the Act, and except in compliance
with all applicable state securities laws. The Company may cause substantially
the following legends, or their equivalents, to be set forth on each certificate
representing the Warrant Shares and any other security issued or issuable upon
exercise of this Warrant, not theretofore distributed to the public or sold to
underwriters, as defined by the Act, for distribution to the public:

            (a) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
            REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES
            LAWS AND MAY NOT BE SOLD, EXCHANGED, HYPOTHECATED OR TRANSFERRED IN
            ANY MANNER EXCEPT IN COMPLIANCE WITH SUCH LAWS AND THE WARRANT
            PURSUANT TO WHICH THEY WERE ISSUED."

            (b) Any legend required by applicable state securities laws.

      Any certificate issued at any time in exchange or substitution for any
certificate bearing such legends (except a new certificate issued upon
completion of a public distribution pursuant to a registration statement under
the Securities Act of 1933, as amended (the "Act"), or the securities
represented thereby) shall also bear the above legends unless, in the opinion of
the Company's counsel, the securities represented thereby need no longer be
subject to such restrictions.

      SECTION 11. FRACTIONAL SHARES

      No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of all or any part of this Warrant. With respect to any
fraction of a share of any security called for upon any exercise of this
Warrant, the Company shall pay to the Holder an amount in money equal to that
fraction multiplied by the Current Market Price of that share.

      SECTION 12. NO RIGHTS AS STOCKHOLDER; NOTICES TO WARRANTHOLDER

      Nothing contained in this Warrant shall be construed as conferring upon
the Warrantholder or its transferees any rights as a stockholder of the Company,
including the right to vote, receive dividends, consent or receive notices as a
stockholder in respect to any meeting of stockholders for the election of
directors of the Company or any other matter. The Company covenants, however,
that for so long as this Warrant is at least partially unexercised, it will
furnish any Holder of this Warrant with copies of all reports and communications
furnished to the shareholders of the Company. In addition, if at any time prior
to the expiration of the Warrants and prior to their exercise, any one or more
of the following events shall occur:

            (a) any action which would require an adjustment pursuant to Section
            4.1 (except subsections 4.1(e) and 4.1(h) or 4.4); or

            (b) a dissolution, liquidation, or winding up of the Company (other
            than in connection with a consolidation, merger, or sale of its
            property, assets, and business as an entirety or substantially as an
            entirety) shall be proposed:

then the Company shall give notice in writing of the event to the Warrantholder,
as provided in Section 15 hereof, at least 20 days prior to the date fixed as a
record date or the date of closing the transfer books for the determination of
the stockholders entitled to any relevant dividend, distribution, subscription
rights or other rights or for the determination of stockholders entitled to vote
on such proposed dissolution, liquidation, or winding up. The notice shall
specify the record date or the date of closing the transfer books, as the case
may be. Failure to mail or receive notice or any defect therein shall not affect
the validity of any action taken with respect thereto.

      SECTION 13. CHARGES DUE UPON EXERCISE

      The Company shall pay any and all issue or transfer taxes, including, but
not limited to, all federal or state taxes, that may be payable with respect to
the transfer of this Warrant or the issue or delivery of Warrant Shares upon the
exercise of this Warrant.

      SECTION 14. WARRANT SHARES TO BE FULLY PAID

      The Company covenants that all Warrant Shares that may be issued and
delivered to a Holder of this Warrant upon the exercise of this Warrant and
payment of the Exercise Price will be, upon such delivery, validly and duly
issued, fully paid and nonassessable.

      SECTION 15. NOTICES

      Any notice pursuant to this Warrant by the Company or by a Warrantholder
or a holder of Shares shall be in writing and shall be deemed to have been duly
given if delivered or mailed by certified mail, return receipt requested:

      (i) If to a Warrantholder or a holder of Shares, addressed to the address
set forth above.

      (ii) If to the Company addressed to it at 414 North Orleans Street, Suite
800, Chicago, Illinois 60610, Attention: President.

      Each party may from time to time change the address to which notices to it
are to be delivered or mailed hereunder by notice in accordance herewith to the
other party.

      SECTION 16. MERGER OR CONSOLIDATION OF THE COMPANY

      The Company will not merge or consolidate with or into any other
corporation or sell all or substantially all of its property to another
corporation, unless in connection therewith, the Company complies with the
provisions of Section 4.4 hereof.

      SECTION 17. APPLICABLE LAW

      This Warrant shall be governed by and construed in accordance with the
internal laws (as opposed to conflicts of law provisions) of the State of
Illinois, and courts located in Illinois shall have exclusive jurisdiction over
all disputes arising hereunder.

      SECTION 18. ACCEPTANCE OF TERMS; SUCCESSORS.

      By its acceptance of this Warrant, the Holder accepts and agrees to comply
with all of the terms and provisions hereof. All the covenants and provisions of
this Warrant by or for the benefit of the Company or the Holder shall bind and
inure to the benefit of their respective successors and assigns hereunder.

      SECTION 19. MISCELLANEOUS PROVISIONS

      (a) Subject to the terms and conditions contained herein, this Warrant
shall be binding on the Company and its successors and shall inure to the
benefit of the original Holder, its successors and assigns and all holders of
Warrant Shares and the exercise of this Warrant in full shall not terminate the
provisions of this Warrant as it relates to holders of Warrant Shares.

      (b) If the Company fails to perform any of its obligations hereunder, it
shall be liable to the Holder for all damages, costs and expenses resulting from
the failure, including, but not limited to, all reasonable attorney's fees and
disbursements.

      (c) This Warrant cannot be changed or terminated or any performance or
condition waived in whole or in part except by an agreement in writing signed by
the party against whom enforcement of the change, termination or waiver is
sought; provided, however, that any provisions hereof may be amended, waived,
discharged or terminated upon the written consent of the Company and the
Company.

      (d) If any provision of this Warrant shall be held to be invalid, illegal
or unenforceable, the provision shall be severed, enforced to the extent
possible, or modified in such a way as to make it enforceable, and the
invalidity, illegality or unenforceability shall not affect the remainder of
this Warrant.

      (e) The Company agrees to execute any further agreements, conveyances,
certificates and other documents as may be reasonably requested by the Holder to
effectuate the intent and provisions of this Warrant.

      (f) Paragraph headings used in this Warrant are for convenience only and
shall not be taken or construed to define or limit any of the terms or
provisions of this Warrant. Unless otherwise provided, or unless the context
shall otherwise require, the use of the singular shall include the plural and
the use of any gender shall include all genders.

      IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed and issued as of the Issue Date first set forth above.



                                    MOLECULAR DIAGNOSTICS, INC.


                                    By:
                                        --------------------------
                                         Denis O'Donnell M.D.
                                         Chief Executive Officer



<PAGE>






      PURCHASE FORM

                                                          Dated  _________, ____


      The undersigned hereby irrevocably elects to exercise this Warrant to the
extent of purchasing __________ shares of the Common Stock of Molecular
Diagnostics, Inc. and tenders payment of the exercise price thereof.

                    INSTRUCTIONS FOR REGISTRATION OF STOCK


      Name  ______________________________________________________
                   (Please type or print in block letters)



      Address_____________________________________________________

...............................................................................

      ASSIGNMENT FORM

      FOR VALUE RECEIVED, _________________, hereby sells, assigns and
transfers unto



      Name  ______________________________________________________
                   (Please type or print in block letters)

      Address_____________________________________________________



the right to purchase __ shares Common Stock of Molecular Diagnostics, Inc. (the
"Company") represented by this Warrant and does hereby irrevocably constitute
and appoint the Company as its attorney-in-fact, to transfer the same on the
books of the Company with full power of substitution in the premises.

      Signature __________________________           Dated _____________________


Notice:  the signature on this assignment must correspond with the name as it
appears upon the face of this Warrant in every particular, without alteration
or enlargement or any change whatever.