Document:

Exhibit 4.6

                           GENERAL SECURITY AGREEMENT

            General  Security  Agreement  dated  ____________,   2004,  made  by
Molecular  Diagnostics,  Inc. a Delaware corporation  ("Debtor") in favor of the
parties listed on Schedule B attached hereto (the "Secured Parties").

            Debtor hereby agrees in favor of Secured Parties as follows:

            1.  In  consideration  for  loans  made  or to  be  made  to  Debtor
substantially  for the benefit of Debtor by Secured  Parties,  evidenced  by the
Promissory  Notes of Debtor in the  principal  amounts  set forth on  Schedule B
hereto,  payable  to the order of  Secured  Parties  (such  notes,  as  amended,
modified, supplemented,  replaced or substituted from time to time, being herein
referred  to as  the  "Notes"),  Debtor  hereby  grants  to  Secured  Parties  a
continuing  security  interest in, lien upon and a right of setoff against,  and
Debtor  hereby  assigns to Secured  Parties,  all of Debtor's  right,  title and
interest in and to the Collateral described in Section 2, to secure the full and
prompt   payment,   performance   and  observance  of  all  present  and  future
indebtedness,  obligations,  liabilities and agreements of any kind of Debtor to
Secured Parties arising under or in connection with the Notes, which is existing
now  or  hereafter  (all  of  the  foregoing  being  herein  referred  to as the
"Obligations").

            2. The  Collateral is described on Schedule A annexed hereto as part
hereof and on any separate  schedule(s)  identified as Collateral at any time or
from  time to time  furnished  by Debtor to  Secured  Parties  (all of which are
hereby deemed part of this  Security  Agreement)  and includes  claims of Debtor
against third parties for loss or damage to or destruction of any Collateral.

            3. Debtor hereby warrants,  represents,  covenants and agrees (as of
the date hereof and so long as any Obligation remains outstanding) that: (a) the
chief  executive  office and other  places of business of Debtor,  the books and
records  relating  to the  Collateral  (except  for such  records  as are in the
possession or control of Secured  Parties) and the Collateral are located at the
address set forth below and Debtor will not change any of the same,  or merge or
consolidate with any person or change its name or conduct its business under any
trade,  assumed or fictitious name,  without prior written notice to and consent
of Secured  Parties;  (b) the  Collateral is and will be used in the business of
Debtor  and  not  for  personal,  family,  household  or  farming  use;  (c) the
Collateral  is now,  and at all times will be, owned by Debtor free and clear of
all liens, security interests, claims and encumbrances, except as are created by
this Security
 Agreement  and those  that are set forth on  Schedule  C; (d)  Debtor  will not
abandon or assign, sell, lease,  transfer or otherwise dispose of, other than in
the ordinary course of Debtor's  business,  nor will Debtor suffer or permit any
of the same to occur with  respect to, any  Collateral,  without  prior  written
notice to and consent of a designated representative of the Secured Parties; (e)
Debtor  will make  payment or will  provide  for the  payment,  when due, of all
taxes,  assessments or  contributions  or other public or private  charges which
have been or may be levied or assessed  against Debtor,  whether with respect to
the  Collateral,  to any wages or salaries paid by Debtor,  or  otherwise,  will
deliver  to  Secured  Parties,   on  demand,   certificates  or  other  evidence
satisfactory  to Secured  Parties  attesting  thereto and shall  cause  Debtor's
subsidiaries  to take any such action as described  under this section 3(e); (f)
Debtor will use the  Collateral for lawful  purposes  only,  with all reasonable
care and caution and in conformity in all material  respects with all applicable
laws,  ordinances  and  regulations;  (g) Debtor will, at Debtor's sole cost and
expense,  keep the Collateral in good order,  repair,  running  condition and in
substantially the same condition as on the date hereof, reasonable wear and tear
excepted,  and Debtor  will not,  without the prior  written  consent of Secured
Parties,  alter or remove  any  identifying  symbol  or  number  upon any of the
Collateral; (h) Secured Parties shall at all times have free access to and right
of  inspection  of any  Collateral  and  any  papers,  instruments  and  records
pertaining  thereto  (and the right to make  extracts  from and to receive  from
Debtor  originals or true copies of such records,  papers and  instruments  upon
request  therefor)  and  Debtor  hereby  grants to  Secured  Parties a  security
interest in all such  records,  papers and  instruments  to secure the  payment,
performance  and  observance of the  Obligations;  (i) the Collateral is now and
shall remain  personal or  intangible  property,  and Debtor will not permit any
Collateral to become a fixture  without  prior written  notice to and consent of
Secured Parties and without first making all  arrangements,  and delivering,  or
causing to be  delivered,  to Secured  Parties all  instruments  and  documents,
including,  without  limitation,  waivers and  subordination  agreements  by any
landlords or mortgagees,  requested by and  satisfactory  to Secured  Parties to
preserve and protect the primary  security  interest  granted herein against all
persons;  (j) Debtor will,  at its sole cost and  expense,  perform all acts and
execute  all  documents  requested  by  Secured  Parties  from  time  to time to
evidence,  perfect, maintain or enforce Secured Parties' first priority security
interest  granted  herein or otherwise in  furtherance of the provisions of this
Security Agreement;  (k) at any time and from time to time, Debtor shall, at its
sole cost and expense,  execute and deliver to Secured  Parties  such  financing
statements  pursuant to the Uniform  Commercial Code ("UCC"),  applications  for
certificate  of title and  other  papers,  documents  or  instruments  as may be
requested by Secured Parties in connection with this Security Agreement,  and to
the extent permitted by applicable law, Debtor hereby authorizes Secured Parties
to  execute  and file at any time  and from  time to time one or more  financing
statements or copies  thereof or of this Security  Agreement with respect to the
Collateral  signed  only  by  Secured  Parties,  and  Debtor  agrees  to pay any
recording tax or similar tax arising in  connection  with the filing of any such
financing  statement  and  further  agrees to pay any  additional  recording  or
similar tax which is incurred in connection  therewith;  (l) Debtor  assumes all
responsibility  and  liability  arising  from  the  Collateral;   (m)  in  their
discretion,  Secured  Parties  may, at any time and from time to time,  upon the
occurrence  and during the  continuance of a Default (as  hereinafter  defined),
demand, sue for, collect or receive any money or property at any time payable or
receivable  on  account  of or in  exchange  for,  or  make  any  compromise  or
settlement  deemed desirable by Secured Parties with respect to, any Collateral,
and/or  extend the time of  payment,  arrange for  payment in  installments,  or
otherwise  modify the terms of, or release,  any of the  Obligations  and/or the
Collateral,  or any obligor, maker, endorser,  acceptor, surety or guarantor of,
or any Parties to, any of the Obligations or the Collateral,  all without notice
to or consent by Debtor and  without  otherwise  discharging  or  affecting  the
Obligations,  the Collateral or the first  priority  security  interest  granted
herein; (n) in their discretion,  Secured Parties may, at any time and from time
to time,  for the  account of Debtor,  pay any amount or do any act  required of
Debtor hereunder and which Debtor fails to do or pay, and any such payment shall
be deemed an  advance by Secured  Parties to Debtor  payable on demand  together
with  interest at the highest rate then payable on any of the  Obligations;  (o)
Debtor will  promptly  pay  Secured  Parties  for any and all sums,  costs,  and
expenses  which Secured  Parties may pay or incur  pursuant to the provisions of
this Security  Agreement or in  perfecting,  defending,  protecting or enforcing
this Security  Agreement or the first priority  security interest granted herein
or in enforcing  payment of the  Obligations or otherwise in connection with the
provisions hereof, including but not limited to all search, filing and recording
fees, taxes, fees and expenses for the service and filing of papers,  premium on
bonds and undertakings,  fees of marshals,  sheriffs,  custodians,  auctioneers,
court costs,  collection  charges,  travel expenses,  and reasonable  attorneys'
fees,  all of which  together  with interest at the highest rate then payable on
any of the  Obligations,  shall be part of the  Obligations  and be  payable  on
demand;  (p) upon the  occurrence and during the  continuance of a Default,  any
proceeds of the Collateral received by Debtor shall not be commingled with other
property of Debtor, but shall be segregated, held by Debtor in trust for Secured
Parties, and immediately delivered to Secured Parties in the form received, duly
endorsed in blank where  appropriate to effectuate the  provisions  hereof,  the
same to be held by Secured  Parties as  additional  Collateral  hereunder or, at
Secured Parties' option, to be applied to payment of the Obligations, whether or
not due and in any order; (q) in their sole discretion,  Secured Parties may, at
any time and from time to time, assign, transfer or deliver to any transferee of
any  Obligations,  any  Collateral,  whereupon  Secured  Parties  shall be fully
discharged from all  responsibility  and the transferee shall be vested with all
powers and rights of Secured Parties hereunder with respect thereto, but Secured
Parties  shall retain all rights and powers with respect to any  Collateral  not
assigned,  transferred or delivered; and (r) upon request of Secured Parties, at
any time and from time to time,  Debtor shall, at its cost and expense,  execute
and deliver to Secured  Parties  reports as to the Collateral  listing all items
thereof,  describing  the  condition of same and setting forth the value thereof
(lower of cost or market) all in form and substance  reasonably  satisfactory to
Secured Parties.

            4. The term Default as used in this  Security  Agreement  shall mean
any event of default, as such term is defined in the Notes.

            5. Upon the  occurrence  and during the  continuance of any Default,
Secured  Parties may,  without  notice to (except as herein set forth) or demand
upon Debtor,  declare any  Obligations  immediately  due and payable and Secured
Parties shall have the following rights and remedies (to the extent permitted by
applicable  law) in  addition to all rights and  remedies  of a Secured  Parties
under the UCC or of Secured Parties under the  Obligations,  all such rights and
remedies  being  cumulative,   not  exclusive  and  enforceable   alternatively,
successively or concurrently:

            (a) Secured  Parties may, at any time and from time to time, with or
without judicial process or the aid and assistance of others, (i) enter upon any
premises in which any  Collateral  may be located  and,  without  resistance  or
interference by Debtor,  take possession of the Collateral,  (ii) dispose of any
part or all of the  Collateral on any such  premises,  (iii)  require  Debtor to
assemble and make available to Secured Parties at the expense of Debtor any part
or all of the  Collateral at any place and time  designated  by Secured  Parties
which is reasonably  convenient to both parties,  (iv) remove any part or all of
the Collateral from any such premises for the purpose of effecting sale or other
disposition  thereof (and if any of the Collateral  consists of motor  vehicles,
Secured Parties may use Debtor's license plates),  and (v) sell, resell,  lease,
assign and deliver, grant options for or otherwise dispose of any part or all of
the  Collateral in its then condition or following any  commercially  reasonable
preparation  or  processing,  at  public  or  private  sale  or  proceedings  or
otherwise,  by one or more  contracts,  in one or more  parcels,  at the same or
different  times,  with or without having the Collateral at the place of sale or
other disposition,  for cash and/or credit, and upon any terms, at such place(s)
and time(s) and to such  person(s) as Secured  Parties  deems best,  all without
demand,  notice or  advertisement  whatsoever  except  that where an  applicable
statute requires  reasonable notice of sale or other  disposition  Debtor hereby
agrees that the sending of ten days' notice by overnight mail,  postage prepaid,
to any address of Debtor set forth in this  Security  Agreement  shall be deemed
reasonable  notice  thereof.  If any Collateral is sold by Secured  Parties upon
credit or for  future  delivery,  Secured  Parties  shall not be liable  for the
failure of the purchaser to pay for same and in such event  Secured  Parties may
resell or otherwise dispose of such Collateral. Secured Parties may buy any part
or all of the  Collateral  at any  public  sale  and,  if any part or all of the
Collateral  is of a type  customarily  sold in a recognized  market or is of the
type  which is the  subject of widely  distributed  standard  price  quotations,
Secured  Parties may buy such  Collateral  at private  sale and in each case may
make payment therefor by any means, whether by credit against the Obligations or
otherwise.  Secured Parties may apply the cash proceeds  actually  received from
any sale or other disposition to the reasonable  expenses of retaking,  holding,
preparing for sale, selling, leasing and the like, to reasonable attorneys' fees
and all  legal,  travel  and other  expenses  which may be  incurred  by Secured
Parties in attempting to collect the Obligations, proceed against the Collateral
or enforce  this  Security  Agreement  or in the  prosecution  or defense of any
action or proceeding related to the Obligations, the Collateral or this Security
Agreement;  and then to the  Obligations  in such order and as to  principal  or
interest as Secured Parties may desire;  and Debtor shall remain liable and will
pay Secured Parties on demand any deficiency  remaining,  together with interest
thereon at the highest rate then payable on the  Obligations  and the balance of
any expenses unpaid, with any surplus to be paid to Debtor,  subject to any duty
of Secured  Parties  imposed by law to the  holder of any  subordinate  security
interest in the Collateral known to Secured Parties.

            (b)  Secured  Parties  may,  at any time and from  time to time,  as
appropriate, set off and apply to the payment of the Obligations, any Collateral
in or coming into the  possession of Secured  Parties or their  agents,  without
notice to Debtor and in such manner as Secured  Parties may in their  discretion
determine.

            6. Intentionally Left Blank.

            7. With respect to the enforcement of Secured  Parties' rights under
this Security Agreement, Debtor hereby releases Secured Parties from any claims,
causes of action and demands at any time  arising out of or with respect to this
Security  Agreement,  the  Obligations,  the  Collateral  and its use and/or any
actions  taken or  omitted  to be taken by  Secured  Parties  in good faith with
respect thereto,  and Debtor hereby agrees to hold Secured Parties harmless from
and with respect to any and all such claims, causes of action and demands.

            8.  Secured  Parties'  prior  recourse to any  Collateral  shall not
constitute  a  condition  of any  demand,  suit or  proceeding  for  payment  or
collection  of the  Obligations  nor shall any demand,  suit or  proceeding  for
payment or collection of the Obligations  constitute a condition of any recourse
by Secured Parties to the Collateral.  Any suit or proceeding by Secured Parties
to  recover  any of the  Obligations  shall  not be  deemed a waiver  of, or bar
against,  subsequent  proceedings  by Secured  Parties with respect to any other
Obligations and/or with respect to the Collateral.  No act, omission or delay by
Secured Parties shall constitute a waiver of their rights and remedies hereunder
or otherwise.  No single or partial  waiver by Secured  Parties of any covenant,
warranty,  representation,  Default or right or remedy which they may have shall
operate as a waiver of any other covenant,  warranty,  representation,  Default,
right or  remedy or of the same  covenant,  warranty,  representation,  Default,
right or remedy on a future occasion.  Debtor hereby waives presentment,  notice
of  dishonor  and  protest of all  instruments  included  in or  evidencing  any
Obligations or Collateral,  and all other notices and demands whatsoever (except
as expressly provided herein).

            9.  Debtor  hereby  agrees  to pay,  on  demand,  all  out-of-pocket
expenses  incurred by Secured  Parties in connection with the enforcement of the
Notes, this Security  Agreement,  and the Obligations and in connection with any
amendment,  including, without limitation, the fees and disbursements of counsel
to Secured Parties.

            10.  In the  event of any  litigation  with  respect  to any  matter
connected with this Security Agreement,  the Obligations,  the Collateral or the
Notes,  Debtor  hereby  waives  the  right to a trial by jury and all  rights of
setoff.  Debtor hereby waives personal service of any process in connection with
any such action or proceeding and agrees that the service thereof may be made by
certified  or  registered  mail  directed to Debtor at any address of Debtor set
forth in this  Security  Agreement.  Debtor so served  shall appear or answer to
such process  within  thirty days after the mailing  thereof.  Should  Debtor so
served fail to appear or answer within said thirty-day  period,  Debtor shall be
deemed in default and judgment may be entered by Secured  Parties against Debtor
for the amount or such other relief as may be demanded in any process so served.
In the alternative,  Secured Parties may in their discretion effect service upon
Debtor in any other form or manner permitted by law.

            11. Debtor shall deliver to Secured Parties on the date of execution
of this Security Agreement duly executed UCC-1 financing statements with respect
to the  Collateral.  Upon the  payment  in full or  conversion  of the Notes and
satisfaction  of all  Obligations  in  accordance  with the Notes,  the security
interest  granted hereby in the Collateral shall terminate and all rights to the
Collateral  under  this  Agreement  shall  revert  to  Debtor.   Upon  any  such
termination,  the Secured  Parties  shall  execute and deliver UCC -3  financing
statement releases or other documents of release reasonably requested by Debtor.

            12. Secured Parties may assign their rights and obligation hereunder
to any Affiliate of Secured Parties provided that such Affiliate  assumes all of
the  liabilities or obligations of Secured  Parties  hereunder.  For purposes of
this section,  "Affiliate" of any person means any other person or entity which,
directly or  indirectly,  controls or is controlled by that person,  or is under
common  control  with  that  person  or  entity.   "Control"  (including,   with
correlative meaning, the terms "controlled by" and "under common control with"),
as used with respect to any person or entity, means the possession,  directly or
indirectly,  of the power to direct or cause the direction of the management and
policies  of such person or entity,  whether  through  the  ownership  of voting
securities, by contract or otherwise.

            13. All terms  herein shall have the meanings as defined in the UCC,
unless the context  otherwise  requires.  No provision hereof shall be modified,
altered, waived, released,  terminated or limited except by a written instrument
expressly  referring  to this  Security  Agreement  and to such  provision,  and
executed  by the  Parties to be  charged.  The  execution  and  delivery of this
Security  Agreement has been  authorized by the Board of Directors of Debtor and
by any  necessary  vote or consent of  stockholders  of  Debtor.  This  Security
Agreement and all  Obligations  shall be binding upon the successors and assigns
of Debtor and shall,  together  with the rights and remedies of Secured  Parties
hereunder,   inure  to  the  benefit  of  Secured   Parties,   their  executors,
administrators,  successors,  endorsees and assigns. This Security Agreement and
the  Obligations  shall be governed in all  respects by the laws of the State of
Illinois  applicable to contracts executed and to be performed in such state. If
any term of this  Security  Agreement  shall be held to be  invalid,  illegal or
unenforceable,  the  validity  of all  other  terms  hereof  shall  in no way be
affected  thereby.  Secured  Parties is authorized to annex hereto any schedules
referred  to herein.  Debtor  acknowledges  receipt  of a copy of this  Security
Agreement.

      14. All notices and other  communications under this Agreement shall be in
writing and shall be deemed given when delivered  personally,  by overnight mail
or mailed by certified mail, return receipt requested, to the parties (and shall
also be transmitted by facsimile to the persons receiving copies thereof) at the
following  addresses (or to such other address as a party may have  specified by
notice given to the other party pursuant to this provision):

            If to Debtor:     Molecular Diagnostics, Inc.
                              414 North Orleans Street, Suite 510
                              Chicago, IL 60610

                              Attn:  Mr. Peter Gombrich

            With a copy to:   Sichenzia Ross Friedman Ference LLP
                              1065 Avenue of the Americas
                              New York, New York 10018
                              Attn:  Gregory Sichenzia, Esq.

            If to Secured Parties:  to the address set forth on the
Subscription Agreement

            IN WITNESS  WHEREOF,  the  undersigned  has  executed or caused this
security  agreement  to be  executed  in the State of New York on the date first
above set forth.

                                          MOLECULAR DIAGNOSTICS, INC.

                                          By___________________________
                                                Denis M. O'Donnell,
                                                Chief Executive Officer

                                   SCHEDULE A

The  property  covered  by this  Security  Agreement  consists  of covers all of
Debtor's  right,  title and interest in, to and under the following  properties,
assets and rights of the Debtor, in each case whether now or hereafter  existing
or arising or in which Debtor now has or hereafter owns, acquires or develops an
interest and wherever located (collectively, the "Collateral"):

      (i) all patents and patent applications, domestic or foreign, all licenses
relating to any of the foregoing  and all income and  royalties  with respect to
any  licenses,  all  rights to sue for  past,  present  or  future  infringement
thereof,  all rights arising therefrom and pertaining  thereto and all reissues,
divisions,   continuations,   renewals,  extensions  and  continuations  in-part
thereof;

      (ii) all general  intangibles  and all  intangible  intellectual  or other
similar property of Debtor of any kind or nature, associated with or arising out
of any of the aforementioned  properties and assets and not otherwise  described
above;

      (iii) all personal and fixture property of every kind and nature including
without limitation all goods (including inventory,  equipment and any accessions
thereto), instruments (including promissory notes), documents, accounts, chattel
paper  (whether  tangible or  electronic),  deposit  accounts,  letter-of-credit
rights  (whether  or not the  letter  of  credit  is  evidenced  by a  writing),
securities and all other investment property,  supporting obligations, any other
contract  rights  or rights  to the  payment  of  money,  insurance  claims  and
proceeds, and all general intangibles (including all payment intangibles); and

      (iv) all proceeds of any and all of the  foregoing  Collateral  (including
license  royalties,  rights to payment,  accounts and  proceeds of  infringement
suits) and, to the extent not otherwise  included,  all payments under insurance
(whether  or not  Secured  Party is the loss payee  thereof)  or any  indemnity,
warranty or guaranty  payable by reason of loss or damage to or  otherwise  with
respect to the foregoing Collateral).

                                   Schedule B

Name of Investor        Address of Investor           Amount of Promissory Notes
----------------        -------------------           --------------------------

                                   Schedule C
                                      Liens

o    Debtor is delinquent in filing certain Federal and State Income Tax returns
     for 2002 and 2001. Debtor is also delinquent in paying a portion of Federal
     and State  employee and  employer  payroll  taxes for 2003,  2002 and 2001.
     Debtor owed $736,000 and $678,000 as of September 30, 2003 and December 31,
     2002,  respectively,  in past-due  payroll  taxes,  including  $241,000 and
     $250,000  respectively  in assessed and estimated  statutory  penalties and
     interest.  The Internal  Revenue Service has filed a lien against  Debtor's
     assets to secure the  unpaid  payroll  taxes.  Debtor is  currently  in the
     process of communicating  through counsel with the Internal Revenue Service
     to resolve this matter.  The amount is included in accrued payroll costs in
     the accompanying balance sheet. Debtor is also delinquent in paying various
     state franchise taxes.

o     On April 2, 2003, Debtor issued a $1,000,000  Convertible  Promissory Note
      to an affiliate, Suzanne M. Gombrich, the wife of Peter Gombrich, Debtor's
      Chairman  and CEO, in exchange  for cash.  The note bears  interest at the
      rate of 12% per annum and is convertible into the common stock of MDI at a
      conversion  price of $0.10 per share.  Debtor  also  granted  the holder a
      first priority security interest in all of Debtor's assets.

o    Beginning in October  2002,  Debtor began an issue of up to  $4,000,000  in
     series Bridge II Convertible Promissory Notes to accredited investors.  The
     notes bear  interest at 12 % per annum  payable at maturity date in kind in
     the form of shares of common  stock and were due July 31,  2003.  The notes
     are convertible at any time into the common stock of Debtor. Debtor granted
     a junior security  position in all of the Debtor's assets to the holders of
     the  Bridge  II  convertible   promissory   notes.   The  Bridge  II  notes
     automatically  convert into shares of Common Stock  (subject to adjustments
     for stock splits,  etc.) upon a "Qualified  Financing  Transaction,"  which
     means a  transaction  in which  the  Company  closes  a new debt or  equity
     financing  prior to the  maturity  date that results in net proceeds to the
     Company of at least four million dollars  ($4,000,000).  Through  September
     30,  2003,  Debtor  issued  $1,858,200  in  principal  amount  of Bridge II
     convertible  promissory notes in exchange for cash. Between October 1, 2003
     and  November  10,  2003,  MDI issued an  additional  $122,000 in principal
     amount of Bridge II convertible  promissory  notes in exchange for cash. In
     September 2003 an amendment to the Bridge II Convertible  Promissory  Notes
     was sent to holders  requesting an extension of the notes to July 31, 2004.
     As  additional  consideration  for the  extension,  holders were offered an
     increase in the interest rate from 12% to 15%. In addition, an amendment to
     the indenture offered an increase in the warrant coverage ratio from 25% to
     33%.

o     Beginning in February  2004,  Debtor began an issue of up to $4,000,000 in
      Convertible  Promissory  Notes to  accredited  investors.  The notes  bear
      interest at 10 % per annum payable at maturity date in kind in the form of
      shares  of common  stock  and are due  December  31,  2008.  The notes are
      convertible at any time into the common stock of Debtor.  Debtor granted a
      junior  security  position in all of the Debtor's assets to the holders of
      the convertible promissory notes.Exhibit 4.7
                          REGISTRATION RIGHTS AGREEMENT

            THIS  REGISTRATION  RIGHTS  AGREEMENT,   by  and  between  Molecular
Diagnostics,  Inc., a Delaware corporation (the "Company"), and the person whose
name appears on the signature page attached hereto (the "Holder").

            WHEREAS,  pursuant to a subscription  agreement  (the  "Subscription
Agreement"),  in  connection  with the proposed  private  placement of 60 of the
Company's  units ("Units")  consisting of (i) a $25,000  principal  amount,  10%
secured  convertible  promissory  note (the "Note");  and (ii) 6,250 warrants to
purchase shares of the Company's common stock (the "Warrants");

            WHEREAS,  pursuant to the terms of and in order to induce the Holder
to enter into a certain subscription agreement dated the date hereof between the
Company and the Holder (the "Subscription Agreement") to purchase the Units, the
Company and the Holder have agreed to enter into this Agreement; and

            WHEREAS,  it is  intended  by the  Company  and the Holder that this
Agreement shall become effective  immediately upon the acquisition by the Holder
of the Units;

            NOW,  THEREFORE,  in  consideration  of the  premises and the mutual
covenants contained herein, the Company hereby agrees as follows:

            1.    REGISTRATION RIGHTS.

                  a. PIGGYBACK REGISTRATION. If the Company at any time proposes
to register any of its  securities  under the Securities Act of 1933, as amended
(the "1933 Act") (other than pursuant to a registration  statement filed on Form
S-8 or other comparable form)("Company Registration"), the Company shall include
the shares of common stock underlying the Units and the Warrants (referred to as
the "Registerable Securities") in such registration. Provided, however, that if,
at any time after  giving such  written  notice of the  Company's  intention  to
register any of the Holder's Registerable  Securities and prior to the effective
date of the registration  statement filed in connection with such  registration,
the  Company  shall  determine  for any reason not to  register  or to delay the
Company Registration,  the Company may give written notice of such determination
to each Holder and thereupon shall be relieved of its obligation to register any
Registerable  Securities issued or issuable in connection with such registration
(but  not  from  its  obligation  to pay  registration  expenses  in  connection
therewith  or  to  register  the   Registerable   Securities   in  a  subsequent
registration);  and in the case of a determination to delay a registration shall
thereupon be permitted to delay registering any Registerable  Securities for the
same  period as the delay in  respect of  securities  being  registered  for the
Company's own account.

                  b. REQUIRED  FILING.  The Company shall prepare and file by 90
days  from the date of  filing  the  Certificate  of  Amendment  as set forth in
Section 3 of the  Subscription  Agreement  (the  "Filing  Date") a  registration
statement (the "Registration  Statement") covering the resale of the Registrable
Securities.  The Company  shall use its best  efforts to cause the  Registration
Statement to be declared effective by the SEC.

            2. COOPERATION WITH COMPANY.  Holder will cooperate with the Company
in all respects in connection with this Agreement,  including,  timely supplying
all information  reasonably requested by the Company and executing and returning
all documents  reasonably requested in connection with the registration and sale
of the Registerable Securities.

            3. REGISTRATION PROCEDURES.  If and whenever the Company is required
by any of the provisions of this Agreement to use its best efforts to effect the
registration  of any of the  Registerable  Securities  under the 1933  Act,  the
Company shall (except as otherwise provided in this Agreement), as expeditiously
as possible:

                  a.  prepare  and  file  with  the   Securities   and  Exchange
Commission (the  "Commission")  a registration  statement and shall use its best
efforts to cause such  registration  statement  to become  effective  and remain
effective  until all the  Registerable  Securities are sold or become capable of
being publicly sold without registration under the 1933 Act.

                  b. prepare and file with the  Commission  such  amendments and
supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration  statement effective and
to comply with the  provisions of the 1933 Act with respect to the sale or other
disposition of all securities  covered by such registration  statement  whenever
the Holder or  Holders  of such  securities  shall  desire to sell or  otherwise
dispose of the same (including prospectus  supplements with respect to the sales
of securities  from time to time in  connection  with a  registration  statement
pursuant to Rule 415 of the Commission);

                  c.  furnish to each Holder such numbers of copies of a summary
prospectus  or other  prospectus,  including  a  preliminary  prospectus  or any
amendment or supplement to any prospectus,  in conformity with the  requirements
of the 1933 Act, and such other documents, as such Holder may reasonably request
in order to facilitate  the public sale or other  disposition  of the securities
owned by such Holder;

                  d. use its best efforts to register and qualify the securities
covered by such  registration  statement under such other securities or blue sky
laws of such jurisdictions as each Holder shall reasonably  request,  and do any
and all other acts and things which may be necessary or advisable to enable such
Holder to consummate the public sale or other  disposition in such  jurisdiction
of the  securities  owned by such Holder,  except that the Company shall not for
any such purpose be required to qualify to do business as a foreign  corporation
in any  jurisdiction  wherein  it is not so  qualified  or to file  therein  any
general consent to service of process;

                  e.  use its  best  efforts  to  list  such  securities  on any
securities  exchange on which any  securities of the Company is then listed,  if
the  listing  of such  securities  is then  permitted  under  the  rules of such
exchange;

                  f.  enter  into  and   perform   its   obligations   under  an
underwriting  agreement,  if the offering is an underwritten  offering, in usual
and  customary  form,  with the managing  underwriter  or  underwriters  of such
underwritten offering;

                  g. notify each Holder of  Registerable  Securities  covered by
such  registration  statement,  at any time when a prospectus  relating  thereto
covered by such  registration  statement is required to be  delivered  under the
1933 Act, of the happening of any event of which it has knowledge as a result of
which the prospectus included in such registration statement, as then in effect,
includes  an untrue  statement  of a material  fact or omits to state a material
fact required to be stated therein or necessary to make the  statements  therein
not misleading in the light of the circumstances then existing; and

                  h.  furnish,  at the  request  of any  Holder on the date such
Registerable  Securities are delivered to the  underwriters for sale pursuant to
such registration or, if such Registerable Securities are not being sold through
underwriters,  on the date  the  registration  statement  with  respect  to such
Registerable  Securities becomes effective,  (i) an opinion, dated such date, of
the counsel  representing  the  Company  for the  purpose of such  registration,
addressed to the  underwriters,  if any, and to the Holder  making such request,
covering such legal matters with respect to the registration in respect of which
such opinion is being given as the Holder of such  Registerable  Securities  may
reasonably  request  and are  customarily  included  in such an opinion and (ii)
letters,  dated,  respectively,  (1)  the  effective  date  of the  registration
statement  and (2) the date such  Registerable  Securities  are delivered to the
underwriters,  if any,  for sale  pursuant to such  registration  from a firm of
independent  certified public accountants of recognized standing selected by the
Company,  addressed to the  underwriters,  if any, and to the Holder making such
request,  covering  such  financial,  statistical  and  accounting  matters with
respect to the  registration in respect of which such letters are being given as
the  Holder of such  Registerable  Securities  may  reasonably  request  and are
customarily included in such letters.

            4.  EXPENSES.  All  expenses  incurred  in any  registration  of the
Holder's  Registerable  Securities  under  this  Agreement  shall be paid by the
Company,   including,   without   limitation,   printing   expenses,   fees  and
disbursements  of counsel for the  Company,  expenses of any audits to which the
Company  shall agree or which  shall be  necessary  to comply with  governmental
requirements  in connection with any such  registration,  all  registration  and
filing fees for the Holder's  Registerable  Securities  under  federal and State
securities  laws, and expenses of complying with the securities or blue sky laws
of any jurisdictions pursuant to Section 3(h)(i); provided, however, the Company
shall not be liable for (a) any discounts or commissions to any underwriter; (b)
any stock transfer taxes incurred with respect to  Registerable  Securities sold
in the Offering or (c) the fees and expenses of counsel for any Holder, provided
that the Company  will pay the costs and  expenses of Company  counsel  when the
Company's counsel is representing any or all selling security holders.

            5.  INDEMNIFICATION.  In the event any  Registerable  Securities are
included in a registration statement pursuant to this Agreement:

                  a.  COMPANY   INDEMNITY.   Without  limitation  of  any  other
indemnity  provided to any Holder,  either in  connection  with the  Offering or
otherwise,  to the extent permitted by law, the Company shall indemnify and hold
harmless each Holder, the affiliates,  officers,  directors and partners of each
Holder,  any underwriter (as defined in the 1933 Act) for such Holder,  and each
person,  if any, who controls such Holder or underwriter  (within the meaning of
the  1933 Act or the  Securities  Exchange  Act of 1934  (the  "Exchange  Act"),
against any losses,  claims,  damages or liabilities (joint or several) to which
they may become subject under the 1933 Act, the Exchange Act or other federal or
state law, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements,
omissions or violations  (collectively  a  "Violation"):  (i) any alleged untrue
statement of a material fact contained in such registration  statement including
any  preliminary  prospectus  or  final  prospectus  contained  therein  or  any
amendments or supplements thereto,  (ii) the alleged omission to state therein a
material fact required to be stated therein, or necessary to make the statements
therein,  (iii) any  violation  or alleged  violation by the Company of the 1933
Act,  the  Exchange  Act,  or  (iv)  any  state  securities  law or any  rule or
regulation  promulgated  under  the 1933  Act,  the  Exchange  Act or any  state
securities  law, and the Company shall  reimburse  each such Holder,  affiliate,
officer or director or partner,  underwriter or controlling person for any legal
or other expenses incurred by them in connection with investigating or defending
any such loss, claim, damage, liability or action;  provided,  however, that the
Company  shall not be liable to any  Holder in any such case for any such  loss,
claim,  damage,  liability  or action to the extent  that it arises out of or is
based upon a violation  which  occurs in reliance  upon and in  conformity  with
written  information  furnished  expressly  for  use  in  connection  with  such
registration  by any such Holder or any other  officer,  director or controlling
person thereof.

                  b. HOLDER  INDEMNITY.  Each Holder  shall  indemnify  and hold
harmless the Company,  its  affiliates,  its counsel,  officers,  directors  and
representatives,  any  underwriter (as defined in the 1933 Act) and each person,
if any, who controls the Company or the  underwriter  (within the meaning of the
1933 Act or  liabilities  (joint or  several)  to which they may become  subject
under the 1933  Act,  the  Exchange  Act or any state  securities  law,  and the
Company  shall  reimburse  each such Holder,  affiliate,  officer or director or
partner,  underwriter  or  controlling  person  for any legal or other  expenses
incurred by them in connection with  investigating or defending any loss, claim,
damage,  liability  or  action;  insofar  as such  losses,  claims,  damages  or
liabilities (or actions and respect thereof) to the extent that it arises out of
or is based upon a violation  which  occurs in reliance  upon and in  conformity
with written  information  furnished  expressly for use in connection  with such
registration  by any such Holder or any other  officer,  director or controlling
person thereof.
..

                  c.  NOTICE;  RIGHT TO  DEFEND.  Promptly  after  receipt by an
indemnified  party  under this  Section 6 of notice of the  commencement  of any
action (including any governmental  action),  such indemnified party shall, if a
claim in respect thereof is to be made against any indemnifying party under this
Section 8 deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in and if
the  indemnifying  party agrees in writing that it will be  responsible  for any
costs, expenses, judgments, damages and losses incurred by the indemnified party
with respect to such claim,  jointly with any other indemnifying party similarly
noticed, to assume the defense thereof with counsel mutually satisfactory to the
parties;  provided,  however,  that an indemnified party shall have the right to
retain  its  own  counsel,  with  the  fees  and  expenses  to be  paid  by  the
indemnifying   party,  if  the  indemnified   party  reasonably   believes  that
representation  of  such  indemnified  party  by  the  counsel  retained  by the
indemnifying  party would be inappropriate due to actual or potential  differing
interests between such indemnified party and any other party represented by such
counsel  in such  proceeding.  The  failure  to  deliver  written  notice to the
indemnifying  party within a  reasonable  time of the  commencement  of any such
action shall relieve such indemnifying party of any liability to the indemnified
party  under  this  Agreement  only if and to the  extent  that such  failure is
prejudicial to its ability to defend such action, and the omission so to deliver
written  notice to the  indemnifying  party will not relieve it of any liability
that it may have to any indemnified party otherwise than under this Agreement.

                  d. CONTRIBUTION.  If the indemnification  provided for in this
Agreement is held by a court of competent  jurisdiction  to be unavailable to an
indemnified party with respect to any loss, liability,  claim, damage or expense
referred to therein,  then the indemnifying  party, in lieu of indemnifying such
indemnified party thereunder,  shall contribute to the amount paid or payable by
such indemnified  party as a result of such loss,  liability,  claim,  damage or
expense in such proportion as is appropriate to reflect the indemnified party on
the other hand in connection  with the statements or omissions which resulted in
such loss,  liability,  claim,  damage or expense as well as any other  relevant
equitable  considerations.  The relevant fault of the indemnifying party and the
indemnified  party shall be  determined  by reference  to,  among other  things,
whether  the  untrue or  alleged  untrue  statement  of a  material  fact or the
omission  to state a  material  fact  relates  to  information  supplied  by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge,  access to  information  and  opportunity  to correct or prevent such
statement  or omission.  Notwithstanding  the  foregoing,  the amount any Holder
shall be obligated to contribute  pursuant to the Agreement  shall be limited to
an amount  equal to the proceeds to such Holder of the  Registerable  Securities
sold pursuant to the registration  statement which gives rise to such obligation
to  contribute  (less the  aggregate  amount of any damages which the Holder has
otherwise been required to pay in respect of such loss, claim, damage, liability
or action or any substantially similar loss, claim, damage,  liability or action
arising from the sale of such Registerable Securities).

                  e. SURVIVAL OF INDEMNITY. The indemnification provided by this
Agreement shall be a continuing right to  indemnification  and shall survive the
registration and sale of any  Registerable  Securities by any person entitled to
indemnification hereunder and the expiration or termination of this Agreement.

            6. REMEDIES.

                  a. TIME IS OF ESSENCE.  The Company agrees that time is of the
essence of each of the  covenants  contained  herein and that, in the event of a
dispute hereunder, this Agreement is to be interpreted and construed in a manner
that will enable the Holder to sell their Registerable  Securities as quickly as
possible  after such Holder have indicated to the Company that they desire their
Registerable  Securities to be registered.  Any delay on the part of the Company
not expressly permitted under this Agreement,  whether material or not, shall be
deemed a material breach of this Agreement.

                  b.  REMEDIES UPON DEFAULT OR DELAY.  The Company  acknowledges
the breach of any part of this Agreement may cause  irreparable harm to a Holder
and that monetary damages alone may be inadequate.  The Company therefore agrees
that the Holder shall be entitled to injunctive  relief or such other applicable
remedy as a court of  competent  jurisdiction  may  provide.  Nothing  contained
herein  will be  construed  to limit a Holder's  right to any  remedies  at law,
including recovery of damages for breach of any part of this Agreement.

            7. NOTICES.

                  a. All communications under this Agreement shall be in writing
and shall be mailed by first class mail,  postage  prepaid,  or  telegraphed  or
telexed  with  confirmation  of receipt  or  delivered  by hand or by  overnight
delivery service,

                  b. If to the Company, at:

                     Molecular Diagnostics, Inc.
                     414 North Orleans Street, Suite 510
                     Chicago, IL 60610

                  or at  such  other  address  as it  may  have  furnished  in
writing to the Holder of Registerable Securities at the time outstanding, or

                  c. if to the  Holder of any  Registerable  Securities,  to the
address of such Holder as it appears in the stock ledger of the Company.

                  d. Any  notice so  addressed,  when  mailed by  registered  or
certified  mail shall be deemed to be given  three  days  after so mailed,  when
telegraphed  or telexed  shall be deemed to be given when  transmitted,  or when
delivered by hand or overnight shall be deemed to be given when delivered.

            8. SUCCESSORS AND ASSIGNS.  Except as otherwise  expressly  provided
herein,  this  Agreement  shall inure to the benefit of and be binding  upon the
successors and permitted assigns of the Company and the Holder.

            9.  AMENDMENT AND WAIVER.  This  Agreement  may be amended,  and the
observance  of any term of this  Agreement  may be  waived,  but  only  with the
written  consent of the  Company  and the Holder of  securities  representing  a
majority  of the  Registerable  Securities;  provided,  however,  that  no  such
amendment  or waiver  shall  take away any  registration  right of any Holder of
Registerable Securities or reduce the amount of reimbursable costs to any Holder
of Registerable Securities in connection with any registration hereunder without
the consent of such Holder; further provided,  however, that without the consent
of any other Holder of Registerable Securities, any Holder may from time to time
enter into one or more agreements amending,  modifying or waiving the provisions
of this  Agreement  if such  action  does not  adversely  affect  the  rights or
interest of any other Holder of Registerable Securities. No delay on the part of
any party in the  exercise  of any  right,  power or remedy  shall  operate as a
waiver  thereof,  nor shall any single or partial  exercise  by any party of any
right,  power or remedy preclude any other or further exercise  thereof,  or the
exercise of any other right, power or remedy.

            10. COUNTERPARTS.  One or more counterparts of this Agreement may be
signed  by the  parties,  each of which  shall be an  original  but all of which
together shall constitute one and same instrument.

            11.  GOVERNING LAW. This Agreement  shall be construed in accordance
with and governed by the internal laws of the State of Illinois,  without giving
effect to conflicts of law principles.

            12. INVALIDITY OF PROVISIONS.  If any provision of this Agreement is
or becomes  invalid,  illegal or  unenforceable  in any respect,  the  validity,
legality and enforceability of the remaining  provisions  contained herein shall
not be affected thereby.

            13. HEADINGS.  The headings in this Agreement are for convenience of
reference  only and  shall  not be deemed  to alter or  affect  the  meaning  or
interpretation of any provisions hereof.

                  IN  WITNESS   WHEREOF,   the  undersigned  has  executed  this
Agreement as of the ___ day of ____________, 2004.

HOLDER                                    MOLECULAR DIAGNOSTICS, INC.

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]