Document:

Exhibit 4.6

                                                  August 20, 2004

Molecular Diagnostics, Inc.
414 North Orleans Street
Suite 502
Chicago, Illinois 60610

Ladies and Gentlemen:

         This Subscription Agreement (the "Agreement") sets forth the agreements
and  understandings   between  the  undersigned   ("Subscriber")  and  Molecular
Diagnostics,  Inc.,  a  corporation  organized  under the laws of Delaware  (the
"Company"),  relating to  Subscriber's  subscription  for,  and purchase of, the
number of  shares  of common  stock,  par  value  $.001 per share  (the  "Common
Stock"), of the Company set forth on the signature page hereto (the "Shares").

         1.  Conditions  to  Subscription  Acceptance  and  Closing.  Subscriber
understands  and  agrees  that  this   subscription   and  the  closing  of  the
transactions  contemplated  hereby  (the  "Closing")  is  made  subject  to  the
following terms and conditions:

                  (a) The  Company  has the  right  to  accept  or  reject  this
subscription  in whole or in part.  Unless this  subscription is rejected by the
Company by October 30, 2004 (which date may be extended to November  15, 2004 by
the Company in its sole discretion without notice to or approval by Subscriber),
this subscription shall be deemed accepted in whole.

                  (b) On or prior to the date of the Closing,  Subscriber  shall
have furnished the Company with such  information,  documents,  certificates and
opinions  as the  Company  may  reasonably  require to  evidence  the  accuracy,
completeness  or  satisfaction of the  representations,  warranties,  covenants,
agreements  and  conditions  herein  contained or as the Company  otherwise  may
reasonably require.

         2.  Subscriber  Representations  and  Warranties.  In  connection  with
Subscriber's   subscription  for,  and  purchase  of,  the  Shares,   Subscriber
represents and warrants to the Company that:

                  (a) If Subscriber  is a natural  person,  Subscriber  (i) is a
bona fide resident of the state or jurisdiction  set forth on the signature page
of this Agreement as Subscriber's home address,  and has no present intention of
becoming  a resident  of any other  state or  jurisdiction;  (ii) is at least 21
years of age; and (iii) is legally  competent to execute this  Agreement and any
other documents and  instruments  required in connection  herewith,  if any (the
"Transaction  Documents").  If Subscriber is an entity,  the person signing this
Agreement  and  the  Transaction  Documents  on  behalf  of the  entity  is duly

<PAGE>

authorized to execute and deliver this Agreement and the  Transaction  Documents
on behalf of Subscriber. This Agreement and the Transaction Documents constitute
the  legal,  valid  and  binding  obligations  of  Subscriber,   enforceable  in
accordance  with their terms,  except as such  enforceability  may be limited by
applicable  bankruptcy,  insolvency  or similar  laws  relating to or  affecting
generally  the  enforcement  of  creditors'  rights  and  remedies  or by  other
equitable principles.

                  (b) The  execution  and  delivery  of this  Agreement  and the
Transaction  Documents by  Subscriber do not, and the  performance  of the terms
hereof and thereof will not,  contravene  any material  law,  rule,  regulation,
order, writ, judgment,  injunction, decree, determination or award applicable to
Subscriber,  or  of  the  charter,  bylaws,  operating  agreement,   partnership
agreement or other governing agreements of Subscriber (if applicable),  and will
not  conflict  with,  or result in any  breach  of,  the  terms,  conditions  or
provisions  of, or constitute a default  under,  or give to others any rights of
termination,  amendment, acceleration or cancellation of, or result in or permit
the creation or imposition of any lien,  charge or  encumbrance  upon any of the
assets of Subscriber  pursuant to any indenture,  mortgage or other agreement or
instrument or any judgment,  decree,  order or decision to which Subscriber is a
party or by which Subscriber is bound.

                  (c) Under existing law, no approval,  authorization,  license,
permit or other action by or filing with any Federal,  state, municipal or other
governmental  commission,  board or agency is required on the part of Subscriber
in connection with the execution and delivery by Subscriber of this Agreement or
the Transaction Documents, or the consummation of the transactions  contemplated
hereby or thereby.

                  (d)  There  are no  actions,  suits or  proceedings  existing,
pending or, to the  knowledge  of  Subscriber,  threatened  against or affecting
Subscriber before any court,  arbitrator or governmental or administrative  body
or agency that would affect the validity or  enforceability of this Agreement or
the Transaction  Documents,  or that would have a material adverse affect on the
ability  of  Subscriber  to  perform  Subscriber's   obligations  hereunder  and
thereunder.

                  (e)  Subscriber has such knowledge and experience in financial
and business  matters so as to be capable of evaluating and  understanding,  and
has  evaluated  and  understood,  the merits and risks of an  investment  in the
Company  and the  purchase  of the  Shares,  and  Subscriber  has been given the
opportunity (i) to obtain  information and to examine all documents  relating to
the Company and the Company's business, (ii) to ask questions of, and to receive
answers from, the Company concerning the Company, the Company's business and the
terms and  conditions  of this  investment,  and (iii) to obtain any  additional
information,  to the extent the  Company  possesses  such  information  or could
acquire such information without  unreasonable  effort or expense,  necessary to
verify the accuracy of any information previously furnished.  All such questions
have been answered to Subscriber's  full  satisfaction,  and all information and
documents,  records and books pertaining to this investment which Subscriber has
requested have been made available to Subscriber.

                  (f) Subscriber is able to bear the substantial  economic risks
of  Subscriber's  investment  in the Company  and the  purchase of the Shares in
that,  among  other  factors,  Subscriber  can  afford to hold the Shares for an

                                       2
<PAGE>

indefinite  period and can afford a complete loss of Subscriber's  investment in
the Company.

                  (g) No  material  adverse  change  in  Subscriber's  financial
condition  has taken place  during the past twelve (12) months,  and  Subscriber
will have  sufficient  liquidity with respect to  Subscriber's  net worth for an
adequate period of time to provide for Subscriber's needs and contingencies.

                  (h) Subscriber is relying solely on Subscriber's  own decision
and/or the advice of  Subscriber's  own adviser(s) with respect to an investment
in the Company and the  purchase of the  Shares,  and has neither  received  nor
relied on any communication from the Company or its officers or agents regarding
any legal, investment or tax advice relating to an investment in the Company.

                  (i)  Subscriber  has had an opportunity to read and understand
the provisions of this Agreement and the Transaction Documents,  to consult with
Subscriber's  adviser(s) or counsel  regarding the operation and consequences of
those  provisions,  and  has  considered  the  effect  of  those  provisions  on
Subscriber.

                  (j)  Subscriber  recognizes  that an investment in the Company
involves  substantial  risks  in  that,  among  other  factors:  (i)  successful
operation of the Company  depends on factors  beyond the control of the Company,
and the Company has not had  profitable  operations  from its inception to date;
(ii)  investment in the Company is a speculative  investment and involves a high
degree of risk of loss;  (iii) the  Company is engaged in an  industry  which is
highly competitive and subject to substantial risks; (iv) the Company has a very
limited amount of working capital available to it; and (v) the Shares may not be
registered under applicable federal and state securities laws and,  accordingly,
it may not be  possible to  liquidate  an  investment  in the Company in case of
immediate need of funds or any other emergency,  if at all. Subscriber has taken
full  cognizance  of, and  understands,  such risks and has obtained  sufficient
information to evaluate the merits and risks of an investment in the Company and
the purchase of the Shares.

                  (k)  Subscriber  confirms that none of the Company's  officers
nor any of the  Company's  agents have made any  representations  or  warranties
concerning an  investment in the Company,  including,  without  limitation,  any
representations or warranties  concerning  anticipated financial results, or the
likelihood of success of the operations, of the Company.

                  (l)  Subscriber is acquiring the Shares for  Subscriber's  own
account,  for  investment  and not with a view to, or in  connection  with,  any
public offering or distribution of the same and without any present intention to
sell  the  same at any  particular  event  or  circumstance.  Subscriber  has no
agreement or other  arrangement with any person to sell,  transfer or pledge any
part of the  Shares  which  would  guarantee  Subscriber  any  profit or protect
against any loss with respect to the Shares.

                                       3
<PAGE>

                  (m) Subscriber  understands  that no U.S.  Federal or state or
international  agency has passed on or made any recommendation or endorsement of
an investment in the Shares.

                  (n)  Subscriber  understands  that  the  Shares  have not been
registered  under  the  Securities  Act of 1933,  as  amended  (the  "Act"),  or
applicable  U.S.  state  securities  laws or any  securities  laws of any  other
jurisdiction,   and  are  being  offered  and  sold  under  an  exemption   from
registration  provided  by such laws and the rules and  regulations  thereunder.
Further,  Subscriber  understands  that the  Company is under no  obligation  to
register  the  Shares  or to comply  with any  exemption  under  any  applicable
securities  laws with  respect  thereto or any other  ownership  interest in the
Company.  Subscriber  may therefore be required to bear the economic risks of an
investment  in the Company for an  indefinite  period of time because the Shares
cannot be resold unless registered under applicable securities laws or unless an
exemption from such registration is available.  Subscriber also understands that
(i) the  exemption  provided  by Rule  144  under  the Act may not be  available
because of the conditions and  limitations of such rule, and that in the absence
of  the  availability  of  such  rule,  any  disposition  by  Subscriber  of any
securities of the Company may require compliance with some other exemption under
the Act; and, (ii) the Company is under no obligation  and does not plan to take
any  action  in  furtherance  of  making  Rule  144 or any  other  exemption  so
available.

                  (o) If Subscriber is required in the future to file a Form 144
with the Securities and Exchange  Commission in connection  with sales of Shares
or any other  ownership  interest in the Company  pursuant to Rule 144 under the
Act, Subscriber will deliver a copy of such form to the Company at the same time
and each time  Subscriber  is  required to file a copy with the  Securities  and
Exchange Commission.

                  (p)  Subscriber  is an  "accredited  investor" as such term is
defined in Rule 501(a)  promulgated  under the Act.  Subscriber will execute and
deliver the Confidential  Accredited Investor  Questionnaire  attached hereto as
Exhibit A simultaneously with the execution and delivery of this Agreement.

                  (q) Subscriber agrees that the foregoing  representations  and
warranties  will  survive the sale of the Shares to  Subscriber,  as well as any
investigation made by any party relying on same.

                  (r) Except as  Subscriber  shall have  clearly  and  expressly
disclosed to the Company, Subscriber has not authorized any underwriter, broker,
dealer,  agent or finder to act on Subscriber's behalf (nor does Subscriber have
any  knowledge  of any  broker,  dealer,  agent or finder  purporting  to act on
Subscriber's  behalf)  with respect to  Subscriber's  purchase of the Shares and
Subscriber  has not paid  directly  or  indirectly  any  commission  or  similar
remuneration  with  respect to such  acquisition.  Subscriber  hereby  agrees to
indemnify and hold harmless the Company and its  directors,  officers and agents
from and against any cost, expense, claim, liability or damage arising out of or
resulting from a breach of such representation and warranty.

         3.       General Provisions.

                                       4
<PAGE>

                  (a)  This  Agreement  will be  governed  by and  construed  in
accordance with the substantive  laws of the State of Delaware without regard to
rules thereof relating to conflicts of laws.

                  (b) This  Agreement  and the  Transaction  Documents  together
constitute the entire agreement  between the parties with respect to the subject
matter  hereof and thereof and supersede  any prior  subscription  agreement for
Shares  executed by Subscriber.  This Agreement may be amended only by a writing
executed by the parties.

                  (c)  The  Shares  will  be  assigned  or  transferred  only in
accordance  with  applicable  law  and  the  terms  of  this  Agreement  and the
Transaction Documents.

                  (d)  This  Agreement  will  survive   Subscriber's   death  or
dissolution and will be binding upon Subscriber's successors,  heirs, assignees,
representatives and distributees.

                        (Signatures appear on next page.)

                                  * * * * * *

                                       5
<PAGE>

         IN WITNESS WHEREOF, Subscriber has hereby executed this Agreement as of
the date set forth above.

SUBSCRIBER:

If an Individual:                           If an Entity:

                                            Name of Entity:
                                                           ---------------------

__________________________                  By:
                                               ---------------------------------
[Name]                                         Name:
                                               Title:

Mailing Address:

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

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

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

E-Mail Address:
                  --------------------------------------------

Social Security Number/U.S. Employer Identification Number:
                                                              ------------------

Number of Shares for which Subscription is tendered:

Purchase Price:
                 ---------------------------

Aggregate Consideration:
                          ------------------------------------

ACCEPTED:

Molecular Diagnostics, Inc.,
   a Delaware corporation

By: _________________________________
    Name:
    Title:

Date of Acceptance:
                   -------------------------

                                       6
<PAGE>

                                    EXHIBIT A

                 Confidential Accredited Investor Questionnaire

         The undersigned represents and warrants that he, she or it comes within
one of the categories marked below, and that for any category marked, he, she or
it has  truthfully set forth the factual basis or reason the  undersigned  comes
within that category.  ALL INFORMATION IN RESPONSE TO THIS QUESTIONNAIRE WILL BE
KEPT STRICTLY  CONFIDENTIAL.  The undersigned  agrees to furnish such additional
information as is reasonably  necessary in order to verify the answers set forth
below.

Please mark next to each applicable paragraph:

         _____    a.  The  undersigned  is an  individual  (not  a  partnership,
                  corporation,  etc.) whose  individual net worth,  or joint net
                  worth with his or her spouse, presently exceeds $1,000,000.

                           Explanation.   In  calculating  net  worth,  you  may
                           include equity in personal  property and real estate,
                           including your principal residence,  cash, short-term
                           investments, stock and securities. Equity in personal
                           property  and  real  estate  should  be  based on the
                           appraised  fair market value of such  property,  less
                           debt secured by such property.

         _____    b.  The  undersigned  is an  individual  (not  a  partnership,
                  corporation,  etc.) who had an income in excess of $200,000 in
                  each of the two most recent years, or joint income with his or
                  her spouse in excess of  $300,000  in each of those  years (in
                  each case including foreign income,  tax exempt income and the
                  full amount of capital  gains and losses,  but  excluding  any
                  income of other  family  members  and any  unrealized  capital
                  appreciation),  and has a reasonable  expectation  of reaching
                  the same income level in the current year.

         _____    c.  The  undersigned  is  a  director  or executive officer of
                  Molecular Diagnostics, Inc. or a subsidiary thereof.

         _____    d.  The  undersigned  is  (i) a bank  or a  savings  and  loan
                  association,   (ii)  a  registered  broker  dealer,  (iii)  an
                  insurance  company,  (iv) a registered  investment  company or
                  business  development  company,  (v) a licensed small business
                  investment company,  (vi) a plan established and maintained by
                  a  state,  its  political  subdivisions,   or  any  agency  or
                  instrumentality  of a state or its political  subdivisions (or
                  any agency or instrumentality thereof), for the benefit of its
                  employees,  if  such  plan  has  total  assets  in  excess  of
                  $5,000,000,  (vii) an employee benefit plan within the meaning
                  of Title I of ERISA,  if the investment  decision is made by a
                  plan  fiduciary  which  is  either  a bank,  savings  and loan
                  association,   insurance  company  or  registered   investment
                  adviser  or  if  the  plan  has  total  assets  in  excess  of

                                       7
<PAGE>

                  $5,000,000  or  is  a   self-directed   plan  with  investment
                  decisions   made  solely  by  persons   that  are   accredited
                  investors.

                  Describe entity.  ____________________________________________

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

         _____    e.   The undersigned is a private business development company
                  as  defined in  Section  202(a)(22) of the Investment Advisers
                  Act of 1940, as amended.

                  Describe entity. _____________________________________________

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

         _____    f. The  undersigned  is a corporation,  partnership,  business
                  trust or non-profit organization within the meaning of Section
                  501(c)(3) of the Internal  Revenue Code,  as amended,  in each
                  case not formed for the specific purpose of potentially making
                  an investment in connection  herewith and with total assets in
                  excess of $5,000,000.

                  Describe entity. _____________________________________________

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

         _____    g. The  undersigned  is a trust (not  formed for the  specific
                  purpose of  potentially  making an  investment  in  connection
                  herewith) with total assets in excess of $5,000,000, where the
                  purchase  is  directed  by a  person  with the  knowledge  and
                  experience  in  financial  and  business  matters  to  capably
                  evaluate the merits and risks of the  prospective  investment,
                  as set  forth  in Rule  506(b)(2)(ii)  promulgated  under  the
                  Securities Act of 1933, as amended.

         _____    h. The undersigned is an entity all the equity owners of which
                  are  "accredited  investors"  within  one or more of the above
                  categories.

                  Describe entity. _____________________________________________

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

                                       8
<PAGE>

         The  undersigned  is  aware  of  the   significance  of  the  foregoing
representations.  The  undersigned is also aware that the above  representations
made by him,  her or it will be relied upon in  connection  with any  investment
made in Molecular  Diagnostics,  Inc.  pursuant to the accompanying  document or
documents.

Date:
       --------------------             ----------------------------------------
                                        Signature

                                        ----------------------------------------
                                        Print name

                                        Address:
                                                  ------------------------------

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

                                       9Exhibit 4.1

THIS  WARRANT  AND THE SHARES OF COMMON  STOCK  ISSUABLE  UPON  EXERCISE OF THIS
WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED
(THE "ACT") OR APPLICABLE STATE SECURITIES LAWS, 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 AND APPLICABLE  STATE  SECURITIES LAWS, OR
PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREFROM,  THE AVAILABILITY OF WHICH
IS TO BE ESTABLISHED TO THE SATISFACTION OF MOLECULAR DIAGNOSTICS, INC.

                                                               Warrant No. RJ2

                  WARRANT TO PURCHASE SHARES OF COMMON STOCK

                           ISSUE DATE: August 26, 2004

      This  certifies  that Reid  Jilek or any  valid  transferee  thereof  (the
"Holder"),   for  value  received,   is  entitled  to  purchase  from  Molecular
Diagnostics,  Inc., a Delaware  corporation  with its principal  business office
located at 414 North Orleans  Street,  Suite 510,  Chicago,  Illinois 60610 (the
"Company"),  subject to the terms and conditions set forth below, at any time or
from time to time on and after the  Vesting  Date (as  defined  below) set forth
above and  before  3:00 p.m.  (Central  Time) on the  fifth  anniversary  of the
Vesting Date (the "Expiration Date"),  500,000 shares of Common Stock, $.001 par
value per share, of the Company ("Common  Stock"),  at a purchase price of $0.17
per  share.  The shares  purchasable  upon  exercise  of this  Warrant,  and the
purchase  price per share,  each as adjusted  from time to time  pursuant to the
provisions of this Warrant,  are hereinafter referred to as the "Warrant Shares"
and the "Purchase Price,"  respectively.  As consideration for this Warrant, the
Holder named above agrees to forgive all outstanding indebtedness of the Company
to such named Holder.  The Holder expressly  agrees and  acknowledges  that this
Warrant shall not vest, and shall not be exercisable, in whole or in part, until
such time as the  stockholders  of the Company approve an increase in the number
of  authorized  shares of Common  Stock of the Company and an  amendment  to the
Company's  Certificate of  Incorporation is filed with the Secretary of State of
the State of Delaware to effect such increase (such date, the "Vesting Date").

     1. Exercise.

          (a) Exercise for Cash. The Holder may, at the Holder's  option,  elect
to exercise  this  Warrant,  in whole or in part and at any time or from time to
time on or after the Vesting Date but prior to 3:00 p.m.  (Central  Time) on the
Expiration Date, by surrendering  this Warrant,  with the purchase form appended
hereto  as  Exhibit  I duly  executed  by or on  behalf  of the  Holder,  at the
principal  office  of the  Company,  or at such  other  office  or agency as the
Company may  designate,  accompanied  by payment in full, in lawful money of the
United States, of the Purchase Price payable in respect of the number of Warrant
Shares purchased upon such exercise.  In no event shall any such exercise be for
fewer than  10,000  Warrant  Shares  unless  fewer than an  aggregate  of 10,000
Warrant Shares are then purchasable  under all outstanding  Warrants held by the
Holder.  Payment of the aggregate Purchase Price may be made in cash,  certified
or bank check, or wire transfer of immediately available funds.

<PAGE>

          (b) Cashless Exercise.

               (i) The Holder may,  at the  Holder's  option,  elect to exercise
this  Warrant,  in whole  or in part and at any time or from  time to time on or
after the Vesting Date but prior to 3:00 p.m.  (Central  Time) on the Expiration
Date, on a cashless basis, by surrendering this Warrant,  with the purchase form
appended hereto as Exhibit I duly executed by or on behalf of the Holder, at the
principal  office  of the  Company,  or at such  other  office  or agency as the
Company may designate,  by canceling a portion of this Warrant in payment of the
Purchase Price payable in respect of the number of Warrant Shares purchased upon
such exercise. In the event of an exercise pursuant to this subsection 1(b), the
number of Warrant  Shares issued to the Holder shall be determined  according to
the following formula:

       X = Y(A-B)
              A

      Where:  X =       the number of Warrant  Shares  that shall be issued to
                        the Holder;

              Y =       the number of Warrant Shares for which this Warrant is
                        being exercised  (which shall include both the number of
                        Warrant  Shares  issued to the  Holder and the number of
                        Warrant  Shares  subject to the  portion of the  Warrant
                        being cancelled in payment of the Purchase Price);

              A =       the Fair Market Value (as defined  below) of one share
                        of Common Stock; and

              B =       the Purchase Price then in effect.

               (ii) The Fair  Market  Value per share of Common  Stock  shall be
determined as follows:

                    (1) If the Common  Stock is listed on a national  securities
exchange,  the Nasdaq National Market or the Nasdaq SmallCap Market,  or another
nationally  recognized trading system as of the Exercise Date (as defined in (c)
below),  the Fair Market  Value per share of Common  Stock shall be deemed to be
the average of the highest and lowest  reported  sale prices per share of Common
Stock  thereon on the trading day  immediately  preceding  the  Exercise  Date ;
provided  that if no such price is reported on such day,  the Fair Market  Value
per share of Common Stock shall be determined pursuant to clause (3).

                    (2)  If  the  Common  Stock  is  not  listed  on a  national
securities  exchange,  the Nasdaq National Market or the Nasdaq SmallCap Market,
or another nationally  recognized trading system as of the Exercise Date, but is
quoted on the  Over-The-Counter  Bulletin Board, the Fair Market Value per share
of Common  Stock shall be deemed to be the average of the highest bid and lowest
asked  prices  quoted  thereon on the  trading  day  immediately  preceding  the
Exercise  Date;  provided  that if no price is  reported  on such day,  the Fair
Market  Value per share of Common Stock shall be  determined  pursuant to clause
(3).

                                      -2-
<PAGE>

                    (3)  If  the  Common  Stock  is  not  listed  on a  national
securities  exchange,  the Nasdaq National Market, the Nasdaq SmallCap Market or
another nationally recognized trading system or the Over-the-Counter  Electronic
Bulletin  Board as of the  Exercise  Date,  the Fair  Market  Value per share of
Common Stock shall be deemed to be the amount most  recently  determined  by the
Board of  Directors of the Company  (the  "Board") to represent  the fair market
value  per  share  of  the  Common  Stock   (including   without   limitation  a
determination  for purposes of granting  Common Stock options or issuing  Common
Stock under any plan,  agreement or arrangement  with employees of the Company);
and, upon request of the Holder, the Board (or a representative  thereof) shall,
as  promptly  as  reasonably  practicable  but in any event  not  later  than 10
business days after such request, notify the Holder of the Fair Market Value per
share of Common Stock.  Notwithstanding the foregoing, if the Board has not made
such a determination  within the three-month  period prior to the Exercise Date,
then (A) the Board shall make,  and shall provide or cause to be provided to the
Holder  notice of, a  determination  of the Fair  Market  Value per share of the
Common Stock  within 15 business  days of a request by the Holder that it do so,
and (B) the exercise of this Warrant  pursuant to this  subsection 1(b) shall be
delayed until such  determination  is made and notice thereof is provided to the
Holder.

          (c)  Exercise  Date and Status as Holder of Shares.  Each  exercise of
this  Warrant  shall be deemed to have been  effected  immediately  prior to the
close of business on the day on which this Warrant  shall have been  surrendered
to the  Company as  provided  in  subsection  1(a) or 1(b) above (the  "Exercise
Date"),  which Exercise  Date(s) shall not be prior to the Vesting Date. At such
time, the person or persons in whose name or names any  certificates for Warrant
Shares shall be issuable upon such exercise as provided in subsection 1(d) below
shall be deemed to have  become the  holder or holders of record of the  Warrant
Shares represented by such certificates.

          (d)  Issuance  of  Certificates.  As soon  as  practicable  after  the
exercise  of this  Warrant  in whole  or in part,  and in any  event  within  10
business days thereafter,  the Company, at its expense,  will cause to be issued
in the name of, and delivered to, the Holder,  or as the Holder (upon payment by
the Holder of any applicable transfer taxes) may direct:

               (i) a certificate or certificates  for the number of full Warrant
Shares to which the Holder shall be entitled upon such exercise plus, in lieu of
any fractional share to which the Holder would otherwise be entitled, cash in an
amount determined pursuant to Section 3 hereof; and

               (ii) in case such  exercise  is in part  only,  a new  warrant or
warrants (dated the date hereof) of like tenor,  calling in the aggregate on the
face or faces  thereof for the number of Warrant  Shares equal  (without  giving
effect to any adjustment therein) to the number of such shares called for on the
face of this Warrant  minus the number of Warrant  Shares for which this Warrant
was so exercised (which, in the case of an exercise pursuant to subsection 1(b),
shall include both the number of Warrant Shares issued to the Holder pursuant to
such partial exercise and the number of Warrant Shares subject to the portion of
the Warrant being cancelled in payment of the Purchase Price).

                                      -3-
<PAGE>

          (e) Warrant  Shares.  The Warrant Shares issued upon any such exercise
of this Warrant shall be validly issued, fully paid and non-assessable.

     2. Adjustments.

          (a) Adjustment for Stock Splits and Combinations. If the Company shall
at any time or from time to time  after the Issue Date as set forth on the first
page hereof (or, if this  Warrant  was issued upon  partial  exercise  of, or in
replacement  of,  another  warrant  of like  tenor,  then the date on which such
original  warrant was first issued)  (either such date being  referred to as the
"Original Issue Date") effect a subdivision of the outstanding Common Stock, the
Purchase  Price then in effect  immediately  before  that  subdivision  shall be
proportionately decreased. If the Company shall at any time or from time to time
after the Original  Issue Date combine the  outstanding  shares of Common Stock,
the Purchase Price then in effect  immediately  before the combination  shall be
proportionately  increased.  Any adjustment  under this  paragraph  shall become
effective at the close of business on the date the  subdivision  or  combination
becomes effective.

          (b) Adjustment for Certain Dividends and  Distributions.  In the event
the Company at any time or from time to time after the Original Issue Date shall
make or issue, or fix a record date for the  determination  of holders of Common
Stock  entitled  to  receive,  a  dividend  or  other  distribution  payable  in
additional  shares of Common  Stock,  then and in each such  event the  Purchase
Price then in effect  immediately before such event shall be decreased as of the
time of such issuance or, in the event such a record date shall have been fixed,
as of the close of business on such record  date,  by  multiplying  the Purchase
Price then in effect by a fraction:

               (1) the numerator of which shall be the total number of shares of
Common  Stock  issued  and  outstanding  immediately  prior  to the time of such
issuance or the close of business on such record date, and

               (2) the  denominator of which shall be the total number of shares
of Common Stock  issued and  outstanding  immediately  prior to the time of such
issuance  or the close of business on such record date plus the number of shares
of Common Stock issuable in payment of such dividend or distribution;

provided,  however,  that if such  record  date  shall  have been fixed and such
dividend is not fully paid or if such distribution is not fully made on the date
fixed  therefor,  the Purchase  Price shall be recomputed  accordingly as of the
close of business on such record date and thereafter the Purchase Price shall be
adjusted  pursuant to this  paragraph  as of the time of actual  payment of such
dividends or distributions.

          (c)  Adjustment in Number of Warrant  Shares.  When any  adjustment is
required to be made in the Purchase Price pursuant to subsections  2(a) or 2(b),
the number of Warrant Shares purchasable upon the exercise of this Warrant shall
be changed to the  number  determined  by  dividing  (i) an amount  equal to the
number of shares issuable upon the exercise of this Warrant immediately prior to
such adjustment, multiplied by the Purchase Price in effect immediately prior to
such  adjustment,  by (ii) the Purchase Price in effect  immediately  after such
adjustment.

                                      -4-
<PAGE>

          (d) Adjustments for Other  Dividends and  Distributions.  In the event
the Company at any time or from time to time after the Original Issue Date shall
make or issue, or fix a record date for the  determination  of holders of Common
Stock  entitled  to  receive,  a  dividend  or  other  distribution  payable  in
securities  of the Company  (other  than  shares of Common  Stock) or in cash or
other property (other than regular cash dividends paid out of earnings or earned
surplus,   determined  in  accordance   with   generally   accepted   accounting
principles),  then and in each such  event  provision  shall be made so that the
Holder shall receive upon exercise  hereof,  in addition to the number of shares
of Common Stock  issuable  hereunder,  the kind and amount of  securities of the
Company,  cash or other  property  which the Holder would have been  entitled to
receive had this  Warrant  been  exercised on the date of such event and had the
Holder  thereafter,  during  the  period  from  the  date of such  event  to and
including the Exercise Date, retained any such securities receivable during such
period,  giving  application  to all  adjustments  called for during such period
under this Section 2 with respect to the rights of the Holder.

          (e)   Adjustment  for   Reorganization.   If  there  shall  occur  any
reorganization,  recapitalization,  reclassification,  consolidation  or  merger
involving  the Company in which the Common Stock is converted  into or exchanged
for  securities,  cash or other  property  (other than a transaction  covered by
subsections  2(a),  2(b) or  2(d))  (collectively,  a  "Reorganization"),  then,
following such Reorganization, the Holder shall receive upon exercise hereof the
kind and amount of  securities,  cash or other  property  which the Holder would
have been entitled to receive pursuant to such  Reorganization  if such exercise
had taken  place  immediately  prior to such  Reorganization.  In any such case,
appropriate  adjustment (as determined in good faith by the Board) shall be made
in the application of the provisions set forth herein with respect to the rights
and interests thereafter of the Holder, to the end that the provisions set forth
in this  Section 2  (including  provisions  with respect to changes in and other
adjustments of the Purchase Price) shall thereafter be applicable,  as nearly as
reasonably  may be,  in  relation  to any  securities,  cash or  other  property
thereafter deliverable upon the exercise of this Warrant.

          (f)  Certificate  as to  Adjustments.  Upon  the  occurrence  of  each
adjustment or readjustment of the Purchase Price pursuant to this Section 2, the
Company at its expense shall,  as promptly as reasonably  practicable but in any
event not later than 10 business  days  thereafter,  compute such  adjustment or
readjustment  in  accordance  with the terms  hereof and furnish to the Holder a
certificate  setting forth such adjustment or  readjustment  (including the kind
and amount of securities, cash or other property for which this Warrant shall be
exercisable  and the Purchase Price) and the facts upon which such adjustment or
readjustment is based. The Company shall, as promptly as reasonably  practicable
after the written  request at any time of the Holder (but in any event not later
than 10  business  days  thereafter),  furnish or cause to be  furnished  to the
Holder a  certificate  setting  forth (i) the Purchase  Price then in effect and
(ii) the  number  of shares of Common  Stock and the  amount,  if any,  of other
securities,  cash or property  which then would be received upon the exercise of
this Warrant.

                                      -5-
<PAGE>

          (g) No Adjustments  in Certain  Cases.  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 (1.0%)
in the number of Warrant  Shares  then  purchasable  upon the  exercise  of this
Warrant.  Except as  provided  in this  Section 2, no other  adjustments  in the
number, kind or price of shares constituting Warrant Shares shall be made during
the term, or upon the exercise,  of this Warrant.  Further, no adjustments shall
be made  pursuant  to this  Section  2 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 or option plans.

          (h) Treasury  Stock.  For purposes of this Section 2, 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 herein described.

     3. Fractional  Shares.  The Company shall not be required upon the exercise
of this  Warrant to issue any  fractional  shares,  but shall pay in cash to the
Holder an amount equal to such fraction  multiplied by the Fair Market Value per
share of Common Stock, as determined pursuant to subsection 1(b) above.

     4. Investment  Representations.  The initial Holder represents and warrants
to the Company as follows:

          (a) Investment. The Holder is acquiring this Warrant, and (if and when
such Holder  exercises this Warrant) will acquire the Warrant  Shares,  for such
Holder's  own  account  for  investment  and not with a view to,  or for sale in
connection with, any  distribution  thereof,  nor with any present  intention of
distributing  or selling the same; and the Holder has no present or contemplated
agreement,  undertaking,  arrangement,  obligation,  indebtedness  or commitment
providing for the disposition thereof.

          (b) Accredited  Investor.  The Holder is an  "accredited  investor" as
defined in Rule 501(a) under the Act.

          (c)  Experience.  The  Holder  has made such  inquiry  concerning  the
Company and its business and personnel as the Holder has deemed appropriate; and
the Holder has sufficient  knowledge and experience in finance and business that
the Holder is capable of evaluating the risks and merits of an investment in the
Company.

     5. Transfers, etc.

          (a)  This  Warrant  and  the  Warrant  Shares  shall  not be  sold  or
transferred  unless either (i) they first shall have been  registered  under the
Act and any applicable  state  securities  laws, or (ii) the Company first shall
have been  furnished  with an  opinion  of legal  counsel,  satisfactory  to the
Company,  to  the  effect  that  such  sale  or  transfer  is  exempt  from  the
registration requirements of the Act and any applicable state securities laws.

(b)  Each   certificate   representing   Warrant  Shares  shall  bear  a  legend
substantially in the following form:

                                      -6-
<PAGE>

                  "The securities  represented by this certificate have not been
                  registered  under the Securities  Act of 1933, as amended,  or
                  any state  securities  laws,  and may not be offered,  sold or
                  otherwise  transferred,  pledged  or  hypothecated  unless and
                  until  such  securities  are  registered  under  such  act and
                  applicable  state  securities  laws or an  opinion  of counsel
                  satisfactory  to the  Company is  obtained  to the effect that
                  such registration is not required."

      The foregoing legend shall be removed from the  certificates  representing
any Warrant Shares,  at the request of the holder thereof,  at such time as they
become eligible for resale pursuant to Rule 144(k) under the Act.

          (c) The  Company  will  maintain  a register  containing  the name and
address of the  Holder of this  Warrant.  The  Holder  may  change the  Holder's
address  as shown on the  warrant  register  by  written  notice to the  Company
requesting such change.

          (d) Subject to the  provisions  of clauses (a) and (b) of this Section
5, this Warrant and all rights hereunder are transferable,  in whole or in part,
upon surrender of this Warrant with a properly executed  assignment (in the form
of Exhibit II hereto) at the  principal  office of the  Company  (or, if another
office or agency has been  designated by the Company for such  purpose,  then at
such other office or agency).  Upon the presentation and surrender of such items
to the  Company,  the Company  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,  and this Warrant shall at
that time be canceled to the extent transferred.

     6. No Impairment; Adjustment of Par Value.

          (a) The Company  will not, by  amendment of its charter or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities  or any other  voluntary  action,  avoid or seek to avoid the
observance or performance  of any of the terms of this Warrant,  but will at all
times in good  faith  assist in the  carrying  out of all such  terms and in the
taking of all such action as may be necessary or appropriate in order to protect
the rights of the Holder against impairment.

          (b) Before taking any action that would cause an  adjustment  reducing
the  Purchase  Price per share below the then par value of the shares of Warrant
Shares  issuable  upon  exercise  of the  Warrant,  the  Company  will  take any
corporate action that may be necessary in order that the Company may validly and
legally  issue fully paid and  non-assessable  shares of such Warrant  Shares at
such adjusted price.

     7. Record Date, etc. In the event:

          (a) the Company shall take a record of the holders of its Common Stock
(or other stock or securities at the time  deliverable upon the exercise of this
Warrant) for the purpose of  entitling or enabling  them to receive any dividend
or other distribution,  or to receive any right to subscribe for or purchase any
shares of stock of any class or any other  securities,  or to receive  any other
right; or

                                      -7-
<PAGE>

          (b) of any capital reorganization of the Company, any reclassification
of the Common Stock of the Company,  any  consolidation or merger of the Company
with or into another  corporation (other than a consolidation or merger in which
the Company is the surviving  entity and its Common Stock is not converted  into
or exchanged for any other  securities  or property),  or any transfer of all or
substantially all of the assets of the Company; or

          (c)  of the  voluntary  or  involuntary  dissolution,  liquidation  or
winding-up of the Company,

then,  and in each such case,  the Company  will send or cause to be sent to the
Holder a notice  specifying,  as the case may be, (i) the  record  date for such
dividend,  distribution or right, and the amount and character of such dividend,
distribution or right, or (ii) the effective date on which such  reorganization,
reclassification,  consolidation,  merger, transfer, dissolution, liquidation or
winding-up is to take place,  and the time,  if any is to be fixed,  as of which
the holders of record of Common Stock (or such other stock or  securities at the
time  deliverable  upon the  exercise  of this  Warrant)  shall be  entitled  to
exchange  their shares of Common Stock (or such other stock or  securities)  for
securities   or   other   property   deliverable   upon   such   reorganization,
reclassification,  consolidation,  merger, transfer, dissolution, liquidation or
winding-up.  Such notice shall be sent at least 10 days prior to the record date
or effective date for the event specified in such notice.

     8.  Acknowledgment  and Reservation of Stock.  Commencing the Vesting Date,
the Company will at all times  reserve and keep  available,  solely for issuance
and delivery  upon the exercise of this Warrant,  such number of Warrant  Shares
and other  securities,  cash  and/or  property,  as from  time to time  shall be
issuable  upon the exercise of this  Warrant.  The Holder  expressly  agrees and
acknowledges  that the  Company  currently  does not  have  for  reservation  or
issuance upon exercise of this Warrant a sufficient  number of authorized shares
of its Common Stock.

     9. Exchange or Replacement of Warrants.

          (a)  Upon the  surrender  by the  Holder,  properly  endorsed,  to the
Company at the principal office of the Company, the Company will, subject to the
provisions  of Section 5 hereof,  issue and  deliver to or upon the order of the
Holder,  at the Company's  expense,  a new Warrant or Warrants of like tenor, in
the name of the  Holder or as the  Holder  (upon  payment  by the  Holder of any
applicable  transfer taxes) may direct,  calling in the aggregate on the face or
faces  thereof  for the number of shares of Common  Stock (or other  securities,
cash and/or property) then issuable upon exercise of this Warrant.

          (b) Upon receipt of evidence reasonably satisfactory to the Company of
the loss,  theft,  destruction or mutilation of this Warrant and (in the case of
loss, theft or destruction) upon delivery of an indemnity agreement (with surety
if reasonably required) in an amount reasonably  satisfactory to the Company, or
(in the case of mutilation) upon surrender and cancellation of this Warrant, the
Company will issue, in lieu thereof, a new Warrant of like tenor.

                                      -8-
<PAGE>

     10. Notices.  All notices and other  communications from the Company to the
Holder in connection  herewith shall be mailed by certified or registered  mail,
postage prepaid,  or sent via a reputable  nationwide  overnight courier service
guaranteeing  next business day delivery,  to the address last  furnished to the
Company in writing by the Holder. All notices and other  communications from the
Holder to the Company in  connection  herewith  shall be mailed by  certified or
registered mail, postage prepaid, or sent via a reputable  nationwide  overnight
courier service  guaranteeing next business day delivery,  to the Company at its
principal  office set forth above.  If the Company should at any time change the
location of its  principal  office to a place other than as set forth below,  it
shall give prompt  written notice to the Holder and thereafter all references in
this  Warrant to the location of its  principal  office at the  particular  time
shall be as so  specified in such  notice.  All such notices and  communications
shall be deemed  delivered (i) three business days after being sent by certified
or registered  mail,  return receipt  requested,  postage  prepaid,  or (ii) one
business  day after  being sent via a  reputable  nationwide  overnight  courier
service guaranteeing next business day delivery.

     11. No Rights as  Stockholder;  No Liability.  No provision of this Warrant
shall be construed as conferring  upon the Holder hereof the right to vote or to
consent or to receive dividends or to receive notice as a stockholder in respect
of meetings of stockholders  for the election of directors of the Company or any
other matter  whatsoever  as a  stockholder  of the  Company.  In the absence of
affirmative  action by the Holder hereof to purchase  shares of Common Stock, no
provision  hereof  shall  give  rise to any  liability  of such  Holder  for the
purchase  price or as a stockholder  of the Company,  whether such  liability is
asserted by the Company or by creditors of the Company.

     12. 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
this Warrant or Warrant Shares.

     13. Amendment or Waiver.  Any term of this Warrant may be amended or waived
only by an instrument in writing  signed by the party against which  enforcement
of the  change  or waiver is  sought.  No  waivers  of any  term,  condition  or
provision of this Warrant, in any one or more instances,  shall be deemed to be,
or construed as, a further or continuing  waiver of any such term,  condition or
provision.

     14.  Section  Headings.  The section  headings in this  Warrant are for the
convenience of the parties and in no way alter, modify, amend, limit or restrict
the contractual obligations of the parties.

     15.  Severability.  If any provision of this Warrant shall be held invalid,
illegal or unenforceable,  such invalidity, illegality or unenforceability shall
not affect any other  provision of this Warrant and, to this end, the provisions
hereof are severable.

     16. Assignment. This warrant shall be binding upon and inure to the benefit
of the parties  hereto and their  respective  heirs,  personal  representatives,
successors and permitted assigns.

     17.  Governing  Law.  This  Warrant  will be governed by and  construed  in
accordance with the internal laws of the State of Illinois (without reference to
the conflicts of law provisions thereof).

                                      -9-
<PAGE>

     18.  Facsimile  Signatures.  This  Warrant  may be  executed  by  facsimile
signature.

      EXECUTED as of the Issue Date indicated above.

                                    MOLECULAR DIAGNOSTICS, INC.

                                    By:
                                       -----------------------------------------

                                    Title:
                                         ---------------------------------------

ATTEST:

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

                                      -10-
<PAGE>

                                                                       EXHIBIT I

                                  PURCHASE FORM

To:                                             Dated:
   ----------------------------                        -------------------------

      The  undersigned,  pursuant to the  provisions  set forth in the  attached
Warrant (No. ___), hereby elects to purchase (check applicable box):

            ____ shares of the Common  Stock of Molecular  Diagnostics,  Inc.
by such Warrant; or

            the  maximum  number of shares of  Common  Stock  covered  by such
Warrant  pursuant to the cashless  exercise  procedure  set forth in  subsection
1(b).

      The undersigned herewith makes payment of the full purchase price for such
shares at the price per share  provided for in such Warrant.  Such payment takes
the form of (check applicable box or boxes):

               $______ in lawful money of the United States; and/or

               the  cancellation  of such portion of the attached  Warrant as is
               exercisable  for a total of _____  Warrant  Shares  (using a Fair
               Market   Value  of  $_____  per  share  for   purposes   of  this
               calculation) ; and/or

               the   cancellation  of  such  number  of  Warrant  Shares  as  is
               necessary, in accordance with the formula set forth in subsection
               1(b), to exercise this Warrant with respect to the maximum number
               of Warrant Shares  purchasable  pursuant to the cashless exercise
               procedure set forth in subsection 1(b).

                                    Signature:
                                                --------------------------------
                                    Address:
                                                --------------------------------

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

                                      -11-

<PAGE>

                                                                      EXHIBIT II

                                 ASSIGNMENT FORM

      FOR VALUE RECEIVED, ________________________________________ hereby sells,
assigns and  transfers all of the rights of the  undersigned  under the attached
Warrant  (No.  ____) with  respect  to the  number of shares of Common  Stock of
Molecular Diagnostics, Inc. covered thereby set forth below, unto:

Name of Assignee            Address                    No. of Shares

Dated:                                  Signature:
     ----------------------------                -------------------------------

Signature Guaranteed:

By:
   ------------------------------

The  signature  should be  guaranteed  by an  eligible  guarantor  institution
(banks,  stockbrokers,  savings and loan  associations  and credit unions with
membership in an approved signature  guarantee  medallion program) pursuant to
Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended.

                                      -12-

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