PROMISSORY
NOTE

     

    
      
        	
                $200,000.00

              	
                Dated:
      June 13,
      2008           
      

              


      

    

     

    FOR VALUE
RECEIVED, INFINITE GROUP, INC., a corporation with offices at 60 Office Park
Way, Pittsford, NY 14534 (the "Borrower"), hereby promises to pay to DAN CAPPA,
an individual residing at 150 Dozier Lane, Rochester, NY 14622 (the "Lender"),
the principal sum of Two Hundred Thousand Dollars ($200,000.00), plus interest
at the annual rate of twelve percent (12%), in lawful money of the United States
of America, payable monthly for twenty four (24) months.  On June 2,
2010, the principal amount of this Note shall be due and payable.

     

    Borrower
shall have the right, at its option and without prior notice to Lender, and
without penalty, to prepay all or any part of the outstanding principal amount
of this Note at any time.

     

    Upon the
occurrence of any of the following events of default, the entire indebtedness
evidenced by this Note, including expenses of collection, shall immediately
become due and payable without further notice, presentation or
demand:

     

    (i) The
failure to pay a monthly installment within ten (10) days of its due date
following the Lender's written notice of default and demand;

     

    (ii) The
bankruptcy of Borrower or the filing by Borrower of a voluntary petition under
any provision of the bankruptcy laws; the institution of bankruptcy proceedings
in any form against Borrower which shall be consented to or permitted to remain
undismissed or unstayed for ninety (90) days; or the making by Borrower of an
assignment for the benefit of creditors;

     

    (iii) The
taking of any judgment against Borrower, which judgment is not paid in
accordance with its terms, satisfied, discharged, stayed or bonded within ninety
(90) days from the entry thereof; or

     

    (iv) The
assignment of this Note by Borrower, provided, however, that Borrower may assign
this Note to any person or entity that controls, is controlled by or is under
common control with, Borrower.

     

    No
failure on the part of Lender to exercise, and no delay in exercising, any of
the rights provided for herein, shall operate as a waiver thereof, nor shall any
single or partial exercise by Lender of any right preclude any other or future
exercise thereof or the exercise of any other right.

     

    Lender
shall not, without the express prior written consent of Borrower, assign, sell,
gift or otherwise transfer this Note to any third party, provided, however, that
Lender may assign this Note to any person or entity that controls, is controlled
by or is under common control with, Lender without the prior consent of
Borrower.

     

    This Note
is secured by in accordance with that certain Collateral Security Agreement of
even date herewith by and between the Lender and the Borrower.

    Borrower
agrees to pay all costs and expenses incurred by Lender in enforcing this Note,
including without limitation all reasonable attorneys’ fees and expenses
incurred by Lender.

     

    This Note
shall be governed by and construed in accordance with the laws of the State of
New York.

     

    IN
WITNESS WHEREOF, Borrower has caused this Note to be executed and delivered as
of the date set forth above.

     

    
      
        
          	
                  INFINITE
      GROUP, INC.

                
	 
      	 
      
	
                  By:

                	
                  /s/
      Michael S. Smith

                
	
                  Michael
      S. Smith

                
	
                  Chief
      Executive Officer