Document:

exv10w2

 

Exhibit 10.2

2018 NOTES REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT dated October 3, 2006 (the “Agreement”) is entered into by
and among Service Corporation International, a Texas corporation (the “Company”), and J.P. Morgan
Securities Inc. (“JPMorgan”), Merrill Lynch, Pierce, Fenner & Smith Incorporated, Banc of America
Securities LLC, Lehman Brothers Inc., Raymond James & Associates, Inc. and Morgan Keegan & Company,
Inc. (the “Initial Purchasers”).

     The Company and the Initial Purchasers are parties to the Purchase Agreement dated September
27, 2006 (the “Purchase Agreement”), which provides for the sale by the Company to the Initial
Purchasers of $250,000,000 aggregate principal amount of the Company’s 7 5/8% Senior Notes due 2018
(the “Securities”) and $250,000,000 aggregate principal amount of the Company’s 7 3/8% Senior Notes
due 2014. As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the
Company has agreed to provide to the Initial Purchasers and their direct and indirect transferees
the registration rights set forth in this Agreement. The execution and delivery of this Agreement
is a condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

     “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed.

     “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

     “Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

     “Exchange Offer” shall mean the exchange offer by the Company of Exchange Securities for
Registrable Securities pursuant to Section 2(a) hereof.

     “Exchange Offer Registration” shall mean a registration under the Securities Act effected
pursuant to Section 2(a) hereof.

     “Exchange Offer Registration Statement” shall mean an exchange offer registration statement on
Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to
such registration statement, in each case including the

 

 

Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document
incorporated by reference therein.

     “Exchange Securities” shall mean senior notes issued by the Company under the Indenture
containing terms identical to the Securities (except that the Exchange Securities will not be
subject to restrictions on transfer or to any increase in annual interest rate for failure to
comply with this Agreement) and to be offered to Holders of Registrable Securities in exchange for
Registrable Securities pursuant to the Exchange Offer.

     “Free Writing Prospectus” means each free writing prospectus (as defined in Rule 405 under the
Securities Act) prepared by or on behalf of the Company or used or referred to by the Company in
connection with the sale of the Securities or the Exchange Securities.

     “Holders” shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect transferees who become
owners of Registrable Securities under the Indenture; provided that for purposes of Sections 4 and
5 of this Agreement, the term “Holders” shall include Participating Broker-Dealers.

     “Indemnified Person” shall have the meaning set forth in Section 5(c) hereof.

     “Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof.

     “Indenture” shall mean the Indenture relating to the Securities dated as of February 1, 1993
among the Company and The Bank of New York Trust Company, N.A., as successor trustee to The Bank of
New York, as trustee, as supplemented by the Fourth Supplemental Indenture thereto, to be dated the
date hereof, and as the same may be amended from time to time in accordance with the respective
terms thereof.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Inspector” shall have the meaning set forth in Section 3(a)(xiii) hereof.

     “Issuer Information” shall have the meaning set forth in Section 5(a) hereof.

     “JPMorgan” shall have the meaning set forth in the preamble.

     “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
the outstanding Registrable Securities; provided that whenever the consent or approval of Holders
of a specified percentage of Registrable Securities is required hereunder, any Registrable
Securities owned directly or indirectly by the Company or any of its affiliates shall not be
counted in determining whether such consent or approval was given by the Holders of such required
percentage or amount; and provided, further, that if the Company shall issue any additional
Securities under the Indenture prior to consummation of the Exchange Offer or, if applicable, the

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effectiveness of any Shelf Registration Statement, such additional Securities and the
Registrable Securities to which this Agreement relates shall be treated together as one class for
purposes of determining whether the consent or approval of Holders of a specified percentage of
Registrable Securities has been obtained.

     “Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

     “Person” shall mean an individual, partnership, limited liability company, corporation, trust
or unincorporated organization, or a government or agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus included in, or, pursuant to the rules and regulations
of the Securities Act, deemed a part of, a Registration Statement, including any preliminary
prospectus, and any such prospectus as amended or supplemented by any prospectus supplement,
including a prospectus supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all other amendments and
supplements to such prospectus, and in each case including any document incorporated by reference
therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Registrable Securities” shall mean the Securities; provided that the Securities shall cease
to be Registrable Securities (i) when a Registration Statement with respect to such Securities has
become effective under the Securities Act and such Securities have been exchanged or disposed of
pursuant to such Registration Statement, (ii) when such Securities are eligible to be sold pursuant
to Rule 144(k) (or any similar provision then in force, but not Rule 144A) under the Securities Act
or (iii) when such Securities cease to be outstanding.

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company with this Agreement, including without limitation: (i) all SEC, stock
exchange or National Association of Securities Dealers, Inc. registration and filing fees, (ii) all
fees and expenses incurred in connection with compliance with state securities or blue sky laws
(including reasonable fees and disbursements of counsel for any Underwriters or Holders in
connection with blue sky qualification of any Exchange Securities or Registrable Securities), (iii)
all expenses of any Persons in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus and any amendments or supplements thereto,
any underwriting agreements, securities sales agreements or other similar agreements and any other
documents relating to the performance of and compliance with this Agreement, (iv) all rating agency
fees, (v) all fees and disbursements relating to the qualification of the Indenture under
applicable securities laws, (vi) the fees and disbursements of the Trustee and its counsel, (vii)
the fees and disbursements of counsel for the Company and, in the case of a Shelf Registration
Statement, the fees and disbursements of one counsel for the Holders (which counsel shall be
selected by the Majority Holders and which counsel may

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also be counsel for the Initial Purchasers) and (viii) the fees and disbursements of the
independent public accountants of the Company (and, if necessary, any other certified public
accountant of any subsidiary of the Company, or of any business acquired by the Company for which
financial statements and financial data are or are required to be included in the Registration
Statement), including the expenses of any special audits or “comfort” letters required by or
incident to the performance of and compliance with this Agreement, but excluding fees and expenses
of counsel to the Underwriters (other than fees and expenses set forth in clause (ii) above) or the
Holders and underwriting discounts and commissions, brokerage commissions and transfer taxes, if
any, relating to the sale or disposition of Registrable Securities by a Holder.

     “Registration Statement” shall mean any registration statement of the Company that covers any
of the Exchange Securities or Registrable Securities pursuant to the provisions of this Agreement
and all amendments and supplements to any such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein or deemed a part thereof, all
exhibits thereto and any document incorporated by reference therein.

     “SEC” shall mean the United States Securities and Exchange Commission.

     “Securities” shall have the meaning set forth in the preamble.

     “Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

     “Shelf Additional Interest Date” shall have the meaning set forth in Section 2(d) hereof.

     “Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

     “Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company that
covers all or a portion of the Registrable Securities (but no other securities unless approved by a
majority of the Holders whose Registrable Securities are to be covered by such Shelf Registration
Statement) on an appropriate form under Rule 415 under the Securities Act, or any similar rule that
may be adopted by the SEC, and all amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus contained therein or
deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

     “Shelf Request” shall have the meaning set forth in Section 2(b) hereof.

     “Staff” shall mean the staff of the SEC.

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     “Target Registration Date” shall have the meaning set forth in Section 2(d) hereof.

     “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

     “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

     “Underwriter” shall have the meaning set forth in Section 3(e) hereof.

     “Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an
Underwriter for reoffering to the public.

     2. Registration Under the Securities Act. (a) To the extent not prohibited by any
applicable law or applicable interpretations of the Staff, the Company shall use its reasonable
best efforts to (i) cause to be filed an Exchange Offer Registration Statement covering an offer to
the Holders to exchange all the Registrable Securities for Exchange Securities and (ii) have such
Registration Statement remain effective until 180 days after the last Exchange Date for use by one
or more Participating Broker-Dealers. The Company shall commence the Exchange Offer promptly after
the Exchange Offer Registration Statement is declared effective by the SEC and use its reasonable
best efforts to complete the Exchange Offer not later than 60 days after such effective date.

     The Company shall commence the Exchange Offer by mailing the related Prospectus, appropriate
letters of transmittal and other accompanying documents to each Holder stating, in addition to such
other disclosures as are required by applicable law, substantially the following:

	(i)	 	that the Exchange Offer is being made pursuant to this Agreement and that all Registrable
Securities validly tendered and not properly withdrawn will be accepted for exchange;
	 
	(ii)	 	the dates of acceptance for exchange (which shall be a period of at least 20 Business Days
from the date such notice is mailed) (the “Exchange Dates”);
	 
	(iii)	 	that any Registrable Security not tendered will remain outstanding and continue to accrue
interest but will not retain any rights under this Agreement, except as otherwise specified
herein;
	 
	(iv)	 	that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange
Offer will be required to (A) surrender such Registrable Security, together with the
appropriate letters of transmittal, to the institution and at the address (located in the
Borough of Manhattan, The City of New York) and in the manner specified in the notice, or (B)
effect such exchange otherwise in compliance with the applicable procedures of the depositary
for such Registrable

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	 	 	Security, in each case prior to the close of business on the last Exchange Date; and
	 
	(v)	 	that any Holder will be entitled to withdraw its election, not later than the close of
business on the last Exchange Date, by (A) sending to the institution and at the address
(located in the Borough of Manhattan, The City of New York) specified in the notice, a
telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the
principal amount of Registrable Securities delivered for exchange and a statement that such
Holder is withdrawing its election to have such Securities exchanged or (B) effecting such
withdrawal in compliance with the applicable procedures of the depositary for the Registrable
Securities.

     As a condition to participating in the Exchange Offer, a Holder will be required to represent
to the Company that (i) any Exchange Securities to be received by it will be acquired in the
ordinary course of its business, (ii) at the time of the commencement of the Exchange Offer it has
no arrangement or understanding with any Person to participate in the distribution (within the
meaning of the Securities Act) of the Exchange Securities in violation of the provisions of the
Securities Act, (iii) it is not an “affiliate” (within the meaning of Rule 405 under the Securities
Act) of the Company and (iv) if such Holder is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Registrable Securities that were acquired as a
result of market-making or other trading activities, then such Holder will deliver a Prospectus
(or, to the extent permitted by law, make available a Prospectus to purchasers) in connection with
any resale of such Exchange Securities.

     As soon as practicable after the last Exchange Date, the Company shall:

	(i)	 	accept for exchange Registrable Securities or portions thereof validly tendered and not
properly withdrawn pursuant to the Exchange Offer; and
	 
	(ii)	 	deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities
or portions thereof so accepted for exchange by the Company and issue, and cause the Trustee
to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal
amount to the principal amount of the Registrable Securities tendered by such Holder.

     The Company shall use its reasonable best efforts to complete the Exchange Offer as provided
above and shall comply with the applicable requirements of the Securities Act, the Exchange Act and
other applicable laws and regulations in connection with the Exchange Offer. The Exchange Offer
shall not be subject to any conditions, other than that the Exchange Offer does not violate any
applicable law or applicable interpretations of the Staff.

     (b) In the event that (i) the Company determines that the Exchange Offer Registration provided
for in Section 2(a) above is not available or may not be completed as soon as practicable after the
last Exchange Date because it would violate any

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applicable law or applicable interpretations of the Staff, (ii) the Exchange Offer is not for
any other reason completed by April 1, 2007 or (iii) upon receipt of a written request (a “Shelf
Request”) from any Initial Purchaser representing that it holds Registrable Securities that are or
were ineligible to be exchanged in the Exchange Offer, the Company shall use its reasonable best
efforts to cause to be filed as soon as practicable after such determination date or Shelf Request,
as the case may be, a Shelf Registration Statement providing for the sale of all the Registrable
Securities by the Holders thereof and to have such Shelf Registration Statement become effective.

     In the event that the Company is required to file a Shelf Registration Statement pursuant to
clause (iii) of the preceding sentence, the Company shall use its reasonable best efforts to file
and have become effective both an Exchange Offer Registration Statement pursuant to Section 2(a)
with respect to all Registrable Securities and a Shelf Registration Statement (which may be a
combined Registration Statement with the Exchange Offer Registration Statement) with respect to
offers and sales of Registrable Securities held by the Initial Purchasers after completion of the
Exchange Offer.

     The Company agrees to use its reasonable best efforts to keep the Shelf Registration Statement
continuously effective until the expiration of the period referred to in Rule 144(k) (or any
similar rule then in force, but not Rule 144A) under the Securities Act with respect to the
Registrable Securities or such shorter period that will terminate when all the Registrable
Securities covered by the Shelf Registration Statement have been sold pursuant to the Shelf
Registration Statement (the “Shelf Effectiveness Period”). The Company further agrees to
supplement or amend the Shelf Registration Statement and the related Prospectus if required by the
rules, regulations or instructions applicable to the registration form used by the Company for such
Shelf Registration Statement or by the Securities Act or by any other rules and regulations
thereunder or if reasonably requested by a Holder of Registrable Securities with respect to
information relating to such Holder, and to use its reasonable best efforts to cause any such
amendment to become effective, if required, and such Shelf Registration Statement and Prospectus to
become usable as soon as thereafter practicable. The Company agrees to furnish to the Holders of
Registrable Securities copies of any such supplement or amendment promptly after its being used or
filed with the SEC.

     (c) The Company shall pay all Registration Expenses in connection with any registration
pursuant to Section 2(a) or Section 2(b) hereof. Each Holder shall pay all underwriting discounts
and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or
disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

     (d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof will not be
deemed to have become effective unless it has been declared effective by the SEC. A Shelf
Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective
unless it has been declared effective by the SEC or is automatically effective upon filing with the
SEC as provided by Rule 462 under the Securities Act.

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In the event that either the Exchange Offer is not completed or the Shelf Registration Statement,
if required pursuant to Section 2(b)(i) or 2(b)(ii) hereof, does not become effective on or prior
to April 1, 2007 (the “Target Registration Date”), the interest rate on the Registrable Securities
will be increased by (i) 0.25% per annum for the first 90-day period immediately following the
Target Registration Date and (ii) an additional 0.25% per annum with respect to each subsequent
90-day period, in each case until the Exchange Offer is completed or the Shelf Registration
Statement, if required hereby, becomes effective or the Securities become freely tradable under the
Securities Act, up to a maximum of 1.00% per annum of additional interest. In the event that the
Company receives a Shelf Request pursuant to Section 2(b)(iii), and the Shelf Registration
Statement required to be filed thereby does not become effective by the later of (x) March 1, 2007
or (y) 90 days after the delivery of such Shelf Request (such later date, the “Shelf Additional
Interest Date”), then the interest rate on the Registrable Securities will be increased (i) 0.25%
per annum for the first 90-day period immediately following the Shelf Additional Interest Date and
(ii) an additional 0.25% per annum with respect to each subsequent 90-day period, in each case
until the Shelf Registration Statement becomes effective or the Securities become freely tradable
under the Securities Act, up to a maximum of 1.00% per annum of additional interest.

     If the Shelf Registration Statement, if required hereby, has become effective and thereafter
either ceases to be effective or the Prospectus contained therein ceases to be usable, in each case
whether or not permitted by this Agreement, at any time during the Shelf Effectiveness Period, and
such failure to remain effective or usable exists for more than 30 days (whether or not
consecutive) in any 12-month period, then the interest rate on the Registrable Securities will be
increased by (i) 0.25% per annum commencing on the 31st day in such 12-month period and (ii) an
additional 0.25% per annum with respect to each subsequent 90-day period, in each case ending on
such date that the Shelf Registration Statement has again been declared effective or the Prospectus
again becomes usable, up to a maximum of 1.00% per annum of additional interest.

     (e) Without limiting the remedies available to the Initial Purchasers and the Holders, the
Company acknowledges that any failure by the Company to comply with its obligations under Section
2(a) and Section 2(b) hereof may result in material irreparable injury to the Initial Purchasers or
the Holders for which there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure, the Initial
Purchasers or any Holder may obtain such relief as may be required to specifically enforce the
Company’s obligations under Section 2(a) and Section 2(b) hereof.

     (f) The Company represents, warrants and covenants that it (including its agents and
representatives) will not prepare, make, use, authorize, approve or refer to any Free Writing
Prospectus.

     3. Registration Procedures. (a) In connection with its obligations pursuant to
Section 2(a) and Section 2(b) hereof, the Company shall as expeditiously as possible:

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     (i) prepare and file with the SEC a Registration Statement on the appropriate form under the
Securities Act, which form (x) shall be selected by the Company, (y) shall, in the case of a Shelf
Registration, be available for the sale of the Registrable Securities by the Holders thereof and
(z) shall comply as to form in all material respects with the requirements of the applicable form
and include all financial statements required by the SEC to be filed therewith; and use its
reasonable best efforts to cause such Registration Statement to become effective and remain
effective for the applicable period in accordance with Section 2 hereof;

     (ii) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement effective for the
applicable period in accordance with Section 2 hereof and cause each Prospectus to be supplemented
by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424
under the Securities Act; and keep each Prospectus current during the period described in Section
4(3) of and Rule 174 under the Securities Act that is applicable to transactions by brokers or
dealers with respect to the Registrable Securities or Exchange Securities;

     (iii) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities,
to counsel for the Initial Purchasers, to counsel for such Holders and to each Underwriter of an
Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each
Prospectus or preliminary prospectus, and any amendment or supplement thereto, as such Holder,
counsel or Underwriter may reasonably request in order to facilitate the sale or other disposition
of the Registrable Securities thereunder; and the Company consents to the use of such Prospectus,
preliminary prospectus and any amendment or supplement thereto in accordance with applicable law by
each of the Holders of Registrable Securities and any such Underwriters in connection with the
offering and sale of the Registrable Securities covered by and in the manner described in such
Prospectus, preliminary prospectus or any amendment or supplement thereto in accordance with
applicable law;

     (iv) use its reasonable best efforts to register or qualify the Registrable Securities under
all applicable state securities or blue sky laws of such jurisdictions as any Holder of Registrable
Securities covered by a Registration Statement shall reasonably request in writing by the time the
applicable Registration Statement becomes effective; cooperate with such Holders in connection with
any filings required to be made with the National Association of Securities Dealers, Inc.; and do
any and all other acts and things that may be reasonably necessary or advisable to enable each
Holder to complete the disposition in each such jurisdiction of the Registrable Securities owned by
such Holder; provided that the Company shall not be required to (1) qualify as a foreign
corporation or other entity or as a dealer in securities in any such jurisdiction where it would
not otherwise be required to so qualify, (2) file any general consent to service of process in any
such jurisdiction or (3) subject itself to taxation in any such jurisdiction if it is not so
subject;

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     (v) notify counsel for the Initial Purchasers and, in the case of a Shelf Registration, notify
each Holder of Registrable Securities and counsel for such Holders promptly and, if requested by
any such Holder or counsel, confirm such advice in writing (1) when a Registration Statement has
become effective, when any post-effective amendment thereto has been filed and becomes effective
and when any amendment or supplement to the Prospectus has been filed, (2) of any request by the
SEC or any state securities authority for amendments and supplements to a Registration Statement or
Prospectus or for additional information after the Registration Statement has become effective, (3)
of the issuance by the SEC or any state securities authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings for that purpose,
including the receipt by the Company of any notice of objection of the SEC to the use of a Shelf
Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the
Securities Act, (4) if, between the applicable effective date of a Shelf Registration Statement and
the closing of any sale of Registrable Securities covered thereby, the representations and
warranties of the Company contained in any underwriting agreement, securities sales agreement or
other similar agreement, if any, relating to an offering of such Registrable Securities cease to be
true and correct in all material respects or if the Company receives any notification with respect
to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction
or the initiation of any proceeding for such purpose, (5) of the happening of any event during the
period a Registration Statement is effective that makes any statement made in such Registration
Statement or the related Prospectus untrue in any material respect or that requires the making of
any changes in such Registration Statement or Prospectus in order to make the statements therein
not misleading and (6) of any determination by the Company that a post-effective amendment to a
Registration Statement or any amendment or supplement to the Prospectus would be appropriate;

     (vi) use its reasonable best efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement or, in the case of a Shelf Registration, the resolution
of any objection of the SEC pursuant to Rule 401(g)(2), including by filing an amendment to such
Shelf Registration Statement on the proper form, at the earliest possible moment and provide
immediate notice to each Holder of the withdrawal of any such order or such resolution;

     (vii) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities,
without charge, at least one conformed copy of each Registration Statement and any post-effective
amendment thereto (without any documents incorporated therein by reference or exhibits thereto,
unless requested);

     (viii) in the case of a Shelf Registration, cooperate with the Holders of Registrable
Securities to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends and enable such
Registrable Securities to be issued in such denominations and registered in such names (consistent
with the provisions of the Indenture) as such Holders may reasonably request at least one Business
Day prior to the closing of any sale of Registrable Securities;

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     (ix) in the case of a Shelf Registration, upon the occurrence of any event contemplated by
Section 3(a)(v)(5) hereof, use its reasonable best efforts to prepare and file with the SEC a
supplement or post-effective amendment to such Shelf Registration Statement or the related
Prospectus or any document incorporated therein by reference or file any other required document so
that, as thereafter delivered (or, to the extent permitted by law, made available) to purchasers of
the Registrable Securities, such Prospectus will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and the Company shall notify the Holders
of Registrable Securities to suspend use of the Prospectus as promptly as practicable after the
occurrence of such an event, and such Holders hereby agree to suspend use of the Prospectus until
the Company has amended or supplemented the Prospectus to correct such misstatement or omission;

     (x) a reasonable time prior to the filing of any Registration Statement, any Prospectus, any
amendment to a Registration Statement or amendment or supplement to a Prospectus or of any document
that is to be incorporated by reference into a Registration Statement or a Prospectus after initial
filing of a Registration Statement, provide copies of such document to the Initial Purchasers and
their counsel (and, in the case of a Shelf Registration Statement, to the Holders of Registrable
Securities and their counsel) and make such of the representatives of the Company as shall be
reasonably requested by the Initial Purchasers or their counsel (and, in the case of a Shelf
Registration Statement, the Holders of Registrable Securities or their counsel) available for
discussion of such document; and the Company shall not, at any time after initial filing of a
Registration Statement, use or file any Prospectus, any amendment of or supplement to a
Registration Statement or a Prospectus, or any document that is to be incorporated by reference
into a Registration Statement or a Prospectus, of which the Initial Purchasers and their counsel
(and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities and
their counsel) shall not have previously been advised and furnished a copy or to which the Initial
Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders of
Registrable Securities or their counsel) shall object;

     (xi) obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case
may be, not later than the initial effective date of a Registration Statement;

     (xii) cause the Indenture to be qualified under the Trust Indenture Act in connection with the
registration of the Exchange Securities or Registrable Securities, as the case may be; cooperate
with the Trustee and the Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute,
and use its reasonable best efforts to cause the Trustee to execute, all documents as may be
required to effect such changes and all other forms and documents required to be filed with the SEC
to enable the Indenture to be so qualified in a timely manner;

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     (xiii) in the case of a Shelf Registration, make available for inspection by a representative
of the Holders of the Registrable Securities (an “Inspector”), any Underwriter participating in any
disposition pursuant to such Shelf Registration Statement, any attorneys and accountants designated
by a majority of the Holders of Registrable Securities to be included in such Shelf Registration
and any attorneys and accountants designated by such Underwriter, at reasonable times and in a
reasonable manner, all pertinent financial and other records, documents and properties of the
Company and its subsidiaries, and cause the respective officers, directors and employees of the
Company to supply all information reasonably requested by any such Inspector, Underwriter, attorney
or accountant in connection with a Shelf Registration Statement; provided that if any such
information is identified by the Company as being confidential or proprietary, each Person
receiving such information shall take such actions as are reasonably necessary to protect the
confidentiality of such information to the extent such action is otherwise not inconsistent with,
an impairment of or in derogation of the rights and interests of any Inspector, Holder or
Underwriter);

     (xiv) in the case of a Shelf Registration, use its reasonable best efforts to cause all
Registrable Securities to be listed on any securities exchange or any automated quotation system on
which similar securities issued or guaranteed by the Company are then listed if requested by the
Majority Holders, to the extent such Registrable Securities satisfy applicable listing
requirements;

     (xv) if reasonably requested by any Holder of Registrable Securities covered by a Shelf
Registration Statement, promptly include in a Prospectus supplement or post-effective amendment
such information with respect to such Holder as such Holder reasonably requests to be included
therein and make all required filings of such Prospectus supplement or such post-effective
amendment as soon as the Company has received notification of the matters to be so included in such
filing;

     (xvi) in the case of a Shelf Registration, enter into such customary agreements and take all
such other actions in connection therewith (including those requested by the Holders of a majority
in principal amount of the Registrable Securities covered by the Shelf Registration Statement) in
order to expedite or facilitate the disposition of such Registrable Securities including, but not
limited to, an Underwritten Offering and in such connection, (1) to the extent possible, make such
representations and warranties to the Holders and any Underwriters of such Registrable Securities
with respect to the business of the Company and its subsidiaries and the Registration Statement,
Prospectus and documents incorporated by reference or deemed incorporated by reference, if any, in
each case, in form, substance and scope as are customarily made by issuers to underwriters in
underwritten offerings and confirm the same if and when requested, (2) obtain opinions of counsel
to the Company (which counsel and opinions, in form, scope and substance, shall be reasonably
satisfactory to the Holders and such Underwriters and their respective counsel) addressed to each
selling Holder and Underwriter of Registrable Securities, covering the matters customarily covered
in opinions requested in underwritten offerings, (3) obtain “comfort” letters from the independent
certified public accountants of the Company (and, if necessary, any other certified public
accountant of any subsidiary of

12

 

the Company, or of any business acquired by the Company for which financial statements and
financial data are or are required to be included in the Registration Statement) addressed to each
selling Holder (to the extent permitted by applicable professional standards) and Underwriter of
Registrable Securities, such letters to be in customary form and covering matters of the type
customarily covered in “comfort” letters in connection with underwritten offerings, including but
not limited to financial information contained in any preliminary prospectus or Prospectus and (4)
deliver such documents and certificates as may be reasonably requested by the Holders of a majority
in principal amount of the Registrable Securities being sold or the Underwriters, and which are
customarily delivered in underwritten offerings, to evidence the continued validity of the
representations and warranties of the Company made pursuant to clause (1) above and to evidence
compliance with any customary conditions contained in an underwriting agreement.

     (b) In the case of a Shelf Registration Statement, the Company may require each Holder of
Registrable Securities to furnish to the Company such information regarding such Holder and the
proposed disposition by such Holder of such Registrable Securities as the Company may from time to
time reasonably request in writing.

     (c) In the case of a Shelf Registration Statement, each Holder of Registrable Securities
covered in such Shelf Registration Statement agrees that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 3(a)(v)(3) or 3(a)(v)(5)
hereof, such Holder will forthwith discontinue disposition of Registrable Securities pursuant to
the Shelf Registration Statement until such Holder’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(a)(ix) hereof and, if so directed by the Company, such
Holder will deliver to the Company all copies in its possession, other than permanent file copies
then in such Holder’s possession, of the Prospectus covering such Registrable Securities that is
current at the time of receipt of such notice.

     (d) If the Company shall give any notice to suspend the disposition of Registrable Securities
pursuant to a Registration Statement, the Company shall extend the period during which such
Registration Statement shall be maintained effective pursuant to this Agreement by the number of
days during the period from and including the date of the giving of such notice to and including
the date when the Holders of such Registrable Securities shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions. The Company may give any
such notice only twice during any 365-day period and any such suspensions shall not exceed 30 days
for each suspension and there shall not be more than two suspensions in effect during any 365-day
period.

     (e) The Holders of Registrable Securities covered by a Shelf Registration Statement who desire
to do so may sell such Registrable Securities in an Underwritten Offering. In any such
Underwritten Offering, the investment bank or investment banks and manager or managers (each an
“Underwriter”) that will administer the offering will

13

 

be selected by the Holders of a majority in principal amount of the Registrable Securities
included in such offering.

     4. Participation of Broker-Dealers in Exchange Offer. (a) The Staff has taken the
position that any broker-dealer that receives Exchange Securities for its own account in the
Exchange Offer in exchange for Securities that were acquired by such broker-dealer as a result of
market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be an
“underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such Exchange Securities.

     The Company understands that it is the Staff’s position that if the Prospectus contained in
the Exchange Offer Registration Statement includes a plan of distribution containing a statement to
the above effect and the means by which Participating Broker-Dealers may resell the Exchange
Securities, without naming the Participating Broker-Dealers or specifying the amount of Exchange
Securities owned by them, such Prospectus may be delivered by Participating Broker-Dealers (or, to
the extent permitted by law, made available to purchasers) to satisfy their prospectus delivery
obligation under the Securities Act in connection with resales of Exchange Securities for their own
accounts, so long as the Prospectus otherwise meets the requirements of the Securities Act.

     (b) In light of the above, and notwithstanding the other provisions of this Agreement, the
Company agrees to amend or supplement the Prospectus contained in the Exchange Offer Registration
Statement for a period of up to 180 days after the last Exchange Date (as such period may be
extended pursuant to Section 3(d) of this Agreement), in order to expedite or facilitate the
disposition of any Exchange Securities by Participating Broker-Dealers consistent with the
positions of the Staff recited in Section 4(a) above. The Company further agrees that
Participating Broker-Dealers shall be authorized to deliver such Prospectus (or, to the extent
permitted by law, make available) during such period in connection with the resales contemplated by
this Section 4.

     (c) The Initial Purchasers shall have no liability to the Company or any Holder with respect
to any request that they may make pursuant to Section 4(b) above.

     5. Indemnification and Contribution. (a) The Company agrees to indemnify and hold
harmless each Initial Purchaser and each Holder, their respective affiliates, directors and
officers and each Person, if any, who controls any Initial Purchaser or any Holder within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any
and all losses, claims, damages and liabilities (including, without limitation, legal fees and
other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as
such fees and expenses are incurred), joint or several, that arise out of, or are based upon, (1)
any untrue statement or alleged untrue statement of a material fact contained in any Registration
Statement or any omission or alleged omission to state therein a material fact required to be
stated therein

14

 

or necessary in order to make the statements therein not misleading, or (2) any untrue
statement or alleged untrue statement of a material fact contained in any Prospectus, any Free
Writing Prospectus used in violation of this Agreement or any “issuer information” (“Issuer
Information”) filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or
any omission or alleged omission to state therein a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading,
in each case except insofar as such losses, claims, damages or liabilities arise out of, or are
based upon, any untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with any information relating to any Initial Purchaser or
information relating to any Holder furnished to the Company in writing through JPMorgan or any
selling Holder, respectively expressly for use therein. In connection with any Underwritten
Offering permitted by Section 3, the Company will also indemnify the Underwriters, if any, selling
brokers, dealers and similar securities industry professionals participating in the distribution,
their respective affiliates and each Person who controls such Persons (within the meaning of the
Securities Act and the Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any Registration Statement, any
Prospectus, any Free Writing Prospectus or any Issuer Information.

     (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company,
the Initial Purchasers and the other selling Holders, the directors of the Company, each officer of
the Company who signed the Registration Statement and each Person, if any, who controls the
Company, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in
paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that arise
out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission
made in reliance upon and in conformity with any information relating to such Holder furnished to
the Company in writing by such Holder expressly for use in any Registration Statement and any
Prospectus.

     (c) If any suit, action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any Person in respect of which indemnification
may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”)
shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have under this Section 5 except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided, further, that the failure to notify the Indemnifying Person
shall not relieve it from any liability that it may have to an Indemnified Person otherwise than
under this Section 5. If any such proceeding shall be brought or asserted against an Indemnified
Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall
retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 5 that the

15

 

Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such
proceeding and shall pay the fees and expenses of such counsel related to such proceeding, as
incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to
the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel
reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have
reasonably concluded that there may be legal defenses available to it that are different from or in
addition to those available to the Indemnifying Person; or (iv) the named parties in any such
proceeding (including any impleaded parties) include both the Indemnifying Person and the
Indemnified Person and representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interests between them. It is understood and agreed that the
Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to
any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be
reimbursed as they are incurred. Any such separate firm (x) for any Initial Purchaser, its
affiliates, directors and officers and any control Persons of such Initial Purchaser shall be
designated in writing by JPMorgan, (y) for any Holder, its directors and officers and any control
Persons of such Holder shall be designated in writing by the Majority Holders and (z) in all other
cases shall be designated in writing by the Company. The Indemnifying Person shall not be liable
for any settlement of any proceeding effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to
indemnify each Indemnified Person from and against any loss or liability by reason of such
settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified
Person shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees
and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be liable
for any settlement of any proceeding effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by the Indemnifying Person of such request, (ii) such
Indemnifying Person shall have received notice of the terms of such settlement at least 30 days
prior to such settlement being entered into and (iii) the Indemnifying Person shall not have
reimbursed the Indemnified Person in accordance with such request prior to the date of such
settlement. No Indemnifying Person shall, without the written consent of the Indemnified Person,
effect any settlement of any pending or threatened proceeding in respect of which any Indemnified
Person is or could have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (A) includes an unconditional release of such
Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from
all liability on claims that are the subject matter of such proceeding and (B) does not include any
statement as to or any admission of fault, culpability or a failure to act by or on behalf of any
Indemnified Person.

     (d) If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an
Indemnified Person or insufficient in respect of any losses, claims,

16

 

damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in
lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or
payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i)
in such proportion as is appropriate to reflect the relative benefits received by the Company from
the offering of the Securities and the Exchange Securities, on the one hand, and by the Holders
from receiving Securities or Exchange Securities registered under the Securities Act, on the other
hand, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i)
but also the relative fault of the Company on the one hand and the Holders on the other in
connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative fault of the
Company on the one hand and the Holders on the other shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company or by the
Holders and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

     (e) The Company and the Holders agree that it would not be just and equitable if contribution
pursuant to this Section 5 were determined by pro rata allocation (even if the
Holders were treated as one entity for such purpose) or by any other method of allocation that does
not take account of the equitable considerations referred to in paragraph (d) above. The amount
paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities
referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses incurred by such Indemnified Person in connection with any such
action or claim. Notwithstanding the provisions of this Section 5, in no event shall a Holder be
required to contribute any amount in excess of the amount by which the total price at which the
Securities or Exchange Securities sold by such Holder exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant
to this Section 5 are several and not joint.

     (f) The remedies provided for in this Section 5 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

     (g) The indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of the Initial Purchasers or any Holder or any Person
controlling any Initial Purchaser or any Holder, or by or on behalf of the Company or the officers
or directors of or any Person controlling the Company,

17

 

(iii) acceptance of any of the Exchange Securities and (iv) any sale of Registrable Securities
pursuant to a Shelf Registration Statement.

     6. General.

     (a) No Inconsistent Agreements. The Company represents, warrants and agrees that (i) the
rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of any other outstanding securities issued by the Company
under any other agreement and (ii) the Company has not entered into, or on or after the date of
this Agreement will enter into, any agreement that is inconsistent with the rights granted to the
Holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions
hereof.

     (b) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given unless the Company has obtained the written consent of
Holders of at least a majority in aggregate principal amount of the outstanding Registrable
Securities affected by such amendment, modification, supplement, waiver or consent;
provided that no amendment, modification, supplement, waiver or consent to any departure
from the provisions of Section 5 hereof shall be effective as against any Holder of Registrable
Securities unless consented to in writing by such Holder. Any amendments, modifications,
supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing executed by
each of the parties hereto.

     (c) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier
guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such
Holder to the Company by means of a notice given in accordance with the provisions of this Section
6(c), which address initially is, with respect to the Initial Purchasers, the address set forth in
the Purchase Agreement; (ii) if to the Company, initially at the Company’s address set forth in the
Purchase Agreement and thereafter at such other address, notice of which is given in accordance
with the provisions of this Section 6(c); and (iii) to such other persons at their respective
addresses as provided in the Purchase Agreement and thereafter at such other address, notice of
which is given in accordance with the provisions of this Section 6(c). All such notices and
communications shall be deemed to have been duly given: at the time delivered by hand, if
personally delivered; five Business Days after being deposited in the mail, postage prepaid, if
mailed; when answered back, if telexed; when receipt is acknowledged, if telecopied; and on the
next Business Day if timely delivered to an air courier guaranteeing overnight delivery. Copies of
all such notices, demands or other communications shall be concurrently delivered by the Person
giving the same to the Trustee, at the address specified in the Indenture.

     (d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors, assigns and transferees of each of the parties, including,

18

 

without limitation and without the need for an express assignment, subsequent Holders;
provided that nothing herein shall be deemed to permit any assignment, transfer or other
disposition of Registrable Securities in violation of the terms of the Purchase Agreement or the
Indenture. If any transferee of any Holder shall acquire Registrable Securities in any manner,
whether by operation of law or otherwise, such Registrable Securities shall be held subject to all
the terms of this Agreement, and by taking and holding such Registrable Securities such Person
shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and
provisions of this Agreement and such Person shall be entitled to receive the benefits hereof. The
Initial Purchasers (in their capacity as Initial Purchasers) shall have no liability or obligation
to the Company with respect to any failure by a Holder to comply with, or any breach by any Holder
of, any of the obligations of such Holder under this Agreement.

     (e) Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Company, on the one hand, and the Initial Purchasers, on the
other hand, and shall have the right to enforce such agreements directly to the extent it deems
such enforcement necessary or advisable to protect its rights or the rights of other Holders
hereunder.

     (f) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

     (g) Headings. The headings in this Agreement are for convenience of reference only, are not a
part of this Agreement and shall not limit or otherwise affect the meaning hereof.

     (h) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

     (j) Entire Agreement; Severability. This Agreement contains the entire agreement between the
parties relating to the subject matter hereof and supersedes all oral statements and prior writings
with respect thereto. If any term, provision, covenant or restriction contained in this Agreement
is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public
policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated. The
Company and the Initial Purchasers shall endeavor in good faith negotiations to replace the
invalid, void or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, void or unenforceable provisions.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

19

 

	 	 	 	 	 	 	 
	 	 	SERVICE CORPORATION INTERNATIONAL,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Eric D. Tanzberger	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Eric D. Tanzberger	 	 
	 

	 	Title:
	 	Senior Vice President and	 	 
	 

	 	 	 	Chief Financial Officer	 	 

20

 

Confirmed and accepted as of the date first above written:

J.P. MORGAN SECURITIES INC.

Acting on
behalf of itself and as the

Representative of the several Initial Purchasers

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Zulfe Ali	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:  Zulfe Ali	 
	 

	 	Title:  Vice President	 

21exv10w1

 

EXHIBIT
10.1

OCTOBER 2006 WAIVER AND AMENDMENT AGREEMENT

     THIS OCTOBER 2006 WAIVER AND AMENDMENT AGREEMENT (this “Agreement”) is made as of October 2,
2006, among Infinity Energy Resources, Inc., a Delaware corporation (including as successor to
Infinity, Inc., “Infinity” or the “Company”), Consolidated Oil Well Services, Inc., a Kansas
corporation and wholly-owned subsidiary of Infinity (“Consolidated”), CIS-Oklahoma, Inc., a Kansas
corporation and wholly-owned subsidiary of Infinity (“CIS”), Infinity Oil & Gas of Wyoming, Inc., a
Wyoming corporation and wholly-owned subsidiary of Infinity (“Infinity-Wyoming”), Infinity Oil &
Gas of Kansas, Inc., a Kansas corporation and wholly-owned subsidiary of Infinity
(“Infinity-Kansas”), and Infinity Oil and Gas of Texas, Inc., a Delaware corporation and
wholly-owned subsidiary of Infinity (“Infinity-Texas,” and together with Consolidated, CIS,
Infinity-Wyoming and Infinity-Kansas, the “Subsidiaries”), HFTP Investment L.L.C. (“HFTP”), Gaia
Offshore Master Fund, Ltd. (“Gaia”), AG Offshore Convertibles, Ltd. (“AG Offshore”), Leonardo, L.P.
(“Leonardo”) and Portside Growth & Opportunity Fund (“Portside” and collectively with HFTP, Gaia,
AG Offshore and Leonardo, the “Buyers”). Unless otherwise indicated or defined herein, capitalized
terms used herein shall have the meanings ascribed to them in the Securities Purchase Agreement (as
defined below).

WITNESSETH:

     WHEREAS, Infinity, HFTP, AG Offshore and AG Domestic Convertibles, L.P. (“AG Domestic”)
entered into that certain Securities Purchase Agreement, dated as of January 13, 2005 (as amended,
restated, supplemented or otherwise modified and in effect from time to time, the “Securities
Purchase Agreement”);

     WHEREAS, pursuant to the Securities Purchase Agreement, Infinity issued to HFTP, AG Domestic
and AG Offshore senior secured notes (such notes, together with any promissory notes issued in
exchange or substitution therefor or replacement thereof, and as any of the same may be amended,
restated, modified, supplemented or otherwise modified and in effect from time to time, the
“January 2005 Notes”), dated January 13, 2005, in an initial aggregate principal amount of
$30,000,000 and warrants (such warrants, together with any warrants or other securities issued in
exchange or substitution thereof or replacement thereof and as any of the same may be amended,
restated, supplemented or otherwise modified and in effect from time to time, the “January 2005
Warrants”), dated January 13, 2005, to purchase shares of the common stock, par value $0.0001 per
share of the Company (the “Common Stock”);

     WHEREAS, AG Domestic subsequently assigned to AG Offshore the January 2005 Notes and January
2005 Warrants held by AG Domestic and AG Domestic’s rights and obligations with respect to any and
all future sales of Additional Notes and Additional Warrants by the Company pursuant to the
Securities Purchase Agreement;

     WHEREAS, Infinity, HFTP, Gaia, AG Offshore, the Subsidiaries and Promethean Asset Management
L.L.C., as collateral agent (the “Agent”), entered into that certain First Additional Closing
Agreement, dated as of September 7, 2005 (the “First Additional Closing

 

 

Agreement”), pursuant to which, among things, the January 2005 Notes were amended and Gaia was
made a Buyer under the Securities Purchase Agreement;

     WHEREAS, pursuant to the Securities Purchase Agreement and the First Closing Agreement, the
Company issued to HFTP, Gaia and AG Offshore senior secured notes (such notes, together with any
promissory notes issued in exchange or substitution therefor or replacement thereof, and as any of
the same may be amended, restated, modified, supplemented or otherwise modified and in effect from
time to time, the “September 2005 Notes”), dated September 7, 2005, in an initial aggregate
principal amount of $9,500,000 and warrants (such warrants, together with any warrants or other
securities issued in exchange or substitution thereof or replacement thereof and as any of the same
may be amended, restated, supplemented or otherwise modified and in effect from time to time, the
“September 2005 Warrants”), dated September 7, 2005, to purchase shares of Common Stock;

     WHEREAS, Infinity, HFTP, Gaia, AG Offshore, the Subsidiaries and Agent entered into that
certain Master Assumption and Reaffirmation of Transaction Documents, dated as of September 9,
2005, pursuant to which, among other things, Infinity assumed all of the obligations of Infinity,
Inc. under the Securities Purchase Agreement, the January 2005 Notes, the January 2005 Warrants,
the September 2005 Notes, the September 2005 Warrants and the other Transaction Documents;

     WHEREAS, pursuant to the Securities Purchase Agreement, the Company issued to HFTP, Gaia and
AG Offshore senior secured notes (such notes, together with any promissory notes issued in exchange
or substitution therefor or replacement thereof, and as any of the same may be amended, restated,
modified, supplemented or otherwise modified and in effect from time to time, the “December 2005
Notes”), dated December 9, 2005, in an initial aggregate principal amount of $5,500,000 and
warrants (such warrants, together with any warrants or other securities issued in exchange or
substitution thereof or replacement thereof and as any of the same may be amended, restated,
supplemented or otherwise modified and in effect from time to time, the “December 2005 Warrants”),
dated December 9, 2005, to purchase shares of Common Stock;

     WHEREAS, Infinity, HFTP, Gaia, AG Offshore, Leonardo the Subsidiaries and Agent entered into
that certain Third Additional Closing Agreement, dated as of March 17, 2006, (the “Third Additional
Closing Agreement”), pursuant to which, among other things, Leonardo was made a Buyer under the
Securities Purchase Agreement;

     WHEREAS, pursuant to the Securities Purchase Agreement and the Third Additional Closing
Agreement, the Company issued to Gaia and Leonardo senior secured notes (such notes, together with
any promissory notes issued in exchange or substitution therefor or replacement thereof, and as any
of the same may be amended, restated, modified, supplemented or otherwise modified and in effect
from time to time, the “March 2006 Notes” and, collectively with the January 2005 Notes, the
September 2005 Notes and the December 2005 Notes, the “Notes”), dated March 17, 2006, in an initial
aggregate principal amount of $8,000,000 and warrants (such warrants, together with any warrants or
other securities issued in exchange or substitution thereof or replacement thereof and as any of
the same may be amended, restated, supplemented or otherwise modified and in effect from time to
time, the “March 2006 Warrants” and,

2

 

collectively with the January 2005 Warrants, the September 2005 Warrants and the December 2005
Warrants, the “Warrants”), dated March 17, 2006, to purchase shares of Common Stock;

     WHEREAS, Portside currently holds a portion of the Notes and the Warrants;

     WHEREAS, the Company, the Subsidiaries and the Buyers entered into the Waiver and Amendment,
dated as of August 9, 2006 (the “August 2006 Waiver and Amendment”), pursuant to which certain
defaults of the Company and the Subsidiaries were waived (subject to the conditions specified
therein) and each of the Notes and Warrants was amended;

     WHEREAS, Infinity issued a notice to each of the Buyers on September 7, 2006 (the “September 7
Infinity Notice”), pursuant to which Infinity set forth its intention to redeem each of the Notes
on September 14, 2006, subject to conditions specified therein, which conditions were not
satisfied;

     WHEREAS, the Company has breached Section 4(n) of the Securities Purchase Agreement, Section
12 of each of the Notes and the August 2006 Waiver and Amendment, resulting in a Triggering Event
(as defined in the Notes) under Sections 3(b)(vii) and 3(b)(viii) of each of the Notes and an Event
of Default (as defined in the Notes) under Section 11(a)(iii) of each of the Notes, which, but for
the limited waiver set forth in Section 4(a) of the August 2006 Waiver and Amendment, as the
parties desire be modified hereby, would (among other things) entitle each of the holders of the
Notes to require the Company to redeem all or a portion of the Principal of each of the Notes held
by such Buyer at a price equal to the sum of (i) 120% of such Principal, (a “Triggering Event
Redemption Amount”) and (ii) the Interest Amount with respect to such Principal;

     WHEREAS, the Company failed to file with the SEC a Registration Statement (as defined in the
Registration Rights Agreement) by August 24, 2006 to register for resale by the Buyers Registrable
Securities consisting of at least that number of shares of Common Stock equal to 110% of the number
of Warrant Shares issuable upon exercise of all of the outstanding Warrants as of August 9, 2006
(the “August 2006 Required Registration Statement”), resulting in a breach of the Registration
Rights Agreement, an obligation of the Company to make Registration Delay Payments (as defined in
the Registration Rights Agreement) to each of the Buyers and the occurrence of a Triggering Event
(as defined in the Notes) under Section 3(b)(vii) of each of the Notes, which, but for the limited
waivers set forth in Section 6(b) hereof, would (among other things) entitle each of the holders of
the Notes to require the Company to redeem all or a portion of the Principal of each of the Notes
held by such Buyer at a price equal to the sum of (i) the applicable Triggering Event Redemption
Amount and (ii) the Interest Amount with respect to the Principal included therein; and

     WHEREAS, as of the date hereof, after giving effect to this Agreement, the aggregate
outstanding principal amount under all of the Notes is $55,357,027.40, and the exercise of all
outstanding Warrants as of such date would entitle the holders thereof to purchase 5,829,726 shares
of Common Stock.

3

 

     NOW, THEREFORE, in consideration of the agreements, provisions and covenants contained herein
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each of the undersigned agrees as follows:

     1. No October Interest Payment; Increase in Principal and Amendment of Notes.

          a. Each of the Buyers, severally and not jointly, hereby agrees with the Company that (i) the
Company shall not pay any Interest on any of the Notes held by such Buyer on the date hereof (which
date is an Interest Payment Date (as defined in the Notes)), as would be required by Section 6 of
each such Note, and the amount that would otherwise be payable as Interest on such Note on the date
hereof (as set forth in the fourth column of Schedule A attached hereto) (such Note’s
“October 2006 Interest Amount”), shall instead be added to the Principal of such Note, in
accordance with clause (ii) of this Section 1(a), and (ii) as of the date hereof, the Principal of
each of the Notes held by such Buyer shall increase to an amount equal to the sum of (A) 120% of
the Principal of such Note (equal to the Triggering Event Redemption Amount with respect thereto)
as of the end of the day on October 1, 2006 (as set forth in the third column of Schedule A
attached hereto) and (B) such Note’s October 2006 Interest Amount. For avoidance of doubt, each of
the Buyers, severally and not jointly, hereby agrees with the Company that, as a result of the
preceding sentence, as of the date hereof, the Principal of each of the Notes held by such Buyer
shall be the amount set forth for such Note in the fifth column of Schedule A attached
hereto.

          b. Each of the Buyers, severally and not jointly, hereby agrees with the Company that (i) the
Company shall not be obligated to make any payment of Interest on any of the Notes held by such
Buyer on January 2, 2007, but such Interest shall accrue until, and be payable on, the Fixed
Maturity Date; and (ii) in the event that all amounts owing under the Notes (including all
principal thereof and interest and premium thereon) are not paid in full on the Fixed Maturity
Date, the Interest that would otherwise have been payable in respect of such Notes on January 2,
2007, as well as all interest accruing under such Notes from January 2, 2007 through January 15,
2007 shall be paid in full by the Company on January 15, 2007 (without limiting such Buyer’s rights
and remedies under the Transaction Documents, including those resulting from such failure to pay
all such amounts’ constituting a Triggering Event (as defined in the Notes)).

          c. Each of the Buyers, severally and not jointly, hereby agrees with the Company that, as of
the date hereof, the definition of “Company Alternative Redemption Rate” set forth in Section
2(a)(viii) of each of the Notes held by such Buyer shall be amended to add at the end thereof the
following:

“; notwithstanding the foregoing, if all amounts owing under the Notes are paid in
full on or prior to the Fixed Maturity Date pursuant to a Company Alternative
Redemption, the Company Alternative Redemption Rate shall be 100%.”

4

 

          d. Each of the Buyers, severally and not jointly, hereby agrees with the Company that, as of
the date hereof, the definition of “Fixed Maturity Date” set forth in Section 2(a)(xiii) of each of
the Notes held by such Buyer shall be amended to read in its entirety as follows:

          “Fixed Maturity Date” means January 15, 2007.

          e. Each of the Buyers, severally and not jointly, hereby agrees with the Company that, as of
the date hereof, the first sentence of Section 4(b) of each of the Notes held by such Buyer shall
be amended by changing “105%” to “100%” and that such sentence shall not otherwise be changed.

          f. Each of the Buyers, severally and not jointly, hereby agrees with the Company that, as of
the date hereof, the definition of Triggering Event set forth in Section 3(b) of each of the Notes
shall be amended by deleting the period (.) at the end of paragraph (viii) of such Section 3(b) and
adding the following at the end of such paragraph (viii):

“or of that certain Waiver and Amendment, dated as of October 2, 2006, by and among
the Company, its Subsidiaries and the Buyers; or”

          g. Each of the Buyers, severally and not jointly, hereby agrees with the Company that, as of
the date hereof, the definition of Triggering Event set forth in Section 3(b) of each of the Notes
shall be amended by adding a new paragraph (ix) immediately after paragraph (viii) thereof, such
paragraph (ix) to read in its entirety as follows:

“(viii) any failure of the Company to pay any Principal of this Note, when and as
due.”

          h. Each of the Buyers, severally and not jointly, hereby agrees with the Company that, as of
the date hereof, each of the Notes held by such Buyer shall be amended by deleting Section 6.1
thereof in its entirety.

     2. Company Alternative Conversions.

          a. For purposes of this Section 2, each capitalized term used herein, and not otherwise
defined, shall have the meaning ascribed thereto in the Notes.

          b. Notwithstanding anything to the contrary contained in the August 2006 Waiver and Amendment,
the Company hereby elects to cause the conversion of an aggregate of $3,357,027.40 (the “Aggregate
October 2006 Conversion Amount”) of Principal of the Notes (together with the aggregate Interest
Amount with respect thereto), as if the Company had delivered a Company Alternative Conversion
Notice pursuant to each of the Notes with respect thereto, and this Section 2(b) shall be deemed a
Company Alternative Conversion Notice pursuant to Section 8(a) of each of the Notes (which, for the
avoidance of doubt, means each Note of each Series), and the conversion elected by the foregoing
shall be deemed a Company Alternative Conversion pursuant to Section 8 of each of the Notes (the
“October 2006 Company Conversion”). The October 2006 Company Conversion elected by the Company
pursuant to this Section 1(b) shall be irrevocable by the Company. With respect to each Buyer,

5

 

its aggregate Pro Rata Conversion Amount of the Aggregate Conversion Amount shall be as set
forth across from such Buyer’s name in the second column of Schedule B attached hereto
(such Buyer’s “Aggregate October 2006 Pro Rata Conversion Amount”), and such Aggregate October 2006
Pro Rata Conversion Amount shall apply on an aggregate basis to the Notes held by such Buyer. Each
of the Buyers shall be entitled to convert its Aggregate October 2006 Pro Rata Conversion Amount
with respect to the Notes held by such Buyer, together with the Interest Amount with respect to the
allocable portion of the principal represented by such Aggregate October 2006 Pro Rata Conversion
Amount accruing through and including the applicable Conversion Date, in accordance with Section 8
of each such Note. Each of the Buyers, severally and not jointly, hereby waives, solely with
respect to the October 2006 Company Conversion, the requirement that the Company Alternative
Conversion Notice deemed to be delivered pursuant to Section 2(b) be delivered at least five (5)
Business Days prior to the first Trading Day of the Company Alternative Conversion Period.
Notwithstanding anything to the contrary in the Notes, each of the Buyers, severally and not
jointly, hereby agrees with the Company that the Company Alternative Conversion Period with respect
to the October 2006 Company Conversion shall be the period commencing on and including October 3,
2006 through but not including the Fixed Maturity Date.

          c. In addition to (and without in any way affecting the rights of each of the Buyers with
respect to) the October 2006 Company Conversion and notwithstanding anything to the contrary
contained in the August 2006 Waiver and Amendment, the Company hereby elects to cause the
conversion of an aggregate of $2,000,000, subject to reduction as provided in Section 2(g) (the
“Aggregate November 2006 Conversion Amount”), of Principal of the Notes (together with the
aggregate Interest Amount with respect thereto), as if the Company had delivered a Company
Alternative Conversion Notice pursuant to each of the Notes with respect thereto, and this Section
2(c) shall be deemed a Company Alternative Conversion Notice pursuant to Section 8(a) of each of
the Notes (which, for the avoidance of doubt, means each Note of each Series), and the conversion
elected by the foregoing shall be deemed a Company Alternative Conversion pursuant to Section 8 of
each of the Notes (the “November 2006 Company Conversion”). The November 2006 Company Conversion
elected by the Company pursuant to this Section 2(c) shall be irrevocable by the Company. With
respect to each Buyer, its aggregate Pro Rata Conversion Amount of the Aggregate Conversion Amount
shall be as set forth across from such Buyer’s name in the third column of Schedule B
attached hereto, subject to reduction as provided in Section 2(g) (such Buyer’s “Aggregate November
2006 Pro Rata Conversion Amount”), and such Aggregate November 2006 Pro Rata Conversion Amount
shall apply on an aggregate basis to the Notes held by such Buyer. Each of the Buyers shall be
entitled to convert its Aggregate November 2006 Pro Rata Conversion Amount with respect to the
Notes held by such Buyer, together with the Interest Amount with respect to the allocable portion
of the principal represented by such Aggregate November 2006 Pro Rata Conversion Amount accruing
through and including the applicable Conversion Date, in accordance with Section 8 of each such
Note. Notwithstanding anything to the contrary in the Notes, each of the Buyers, severally and not
jointly, hereby agrees with the Company that the Company Alternative Conversion Period with respect
to the November 2006 Company Conversion shall be the period commencing on and including November 1,
2006 through but not including the Fixed Maturity Date.

6

 

          d. In addition to (and without in any way affecting the rights of each of the Buyers with
respect to) the October 2006 Company Conversion and the November 2006 Company Conversion and
notwithstanding anything to the contrary contained in the August 2006 Waiver and Amendment, the
Company hereby elects to cause the conversion of an aggregate of $2,000,000, subject to reduction
as provided in Section 2(g) (the “Aggregate December 2006 Conversion Amount,” and each of the
Aggregate October 2006 Conversion Amount, the Aggregate November 2006 Conversion Amount and the
Aggregate December 2006 Conversion Amount being referred to herein as an “Aggregate Special
Conversion Amount”), of Principal of the Notes (together with the aggregate Interest Amount with
respect thereto), as if the Company had delivered a Company Alternative Conversion Notice pursuant
to each of the Notes with respect thereto, and this Section 2(d) shall be deemed a Company
Alternative Conversion Notice pursuant to Section 8(a) of each of the Notes (which, for the
avoidance of doubt, means each Note of each Series), and the conversion elected by the foregoing
shall be deemed a Company Alternative Conversion pursuant to Section 8 of each of the Notes (the
“December 2006 Company Conversion,” and each of the October 2006 Company Conversion, the November
2006 Company Conversion and the December 2006 Company Conversion being referred to herein as a
“Special Company Conversion”). The December 2006 Company Conversion elected by the Company
pursuant to this Section 2(d) shall be irrevocable by the Company. With respect to each Buyer, its
aggregate Pro Rata Conversion Amount of the Aggregate Conversion Amount shall be as set forth
across from such Buyer’s name in the fourth column of Schedule B attached hereto, subject
to reduction as provided in Section 2(g) (such Buyer’s “Aggregate December 2006 Pro Rata Conversion
Amount,” and such Buyer’s Aggregate October 2006 Pro Rata Conversion Amount, Aggregate November
2006 Pro Rata Conversion Amount and Aggregate December 2006 Pro Rata Conversion Amount being
collectively referred to herein as such Buyer’s “Aggregate Special Pro Rata Conversion Amounts”),
and such Aggregate December 2006 Pro Rata Conversion Amount shall apply on an aggregate basis to
the Notes held by such Buyer. Each of the Buyers shall be entitled to convert its Aggregate
December 2006 Pro Rata Conversion Amount with respect to the Notes held by such Buyer, together
with the Interest Amount with respect to the allocable portion of the principal represented by such
Aggregate December 2006 Pro Rata Conversion Amount accruing through and including the applicable
Conversion Date, in accordance with Section 8 of each such Note. Notwithstanding anything to the
contrary in the Notes, each of the Buyers, severally and not jointly, hereby agrees with the
Company that the Company Alternative Conversion Period with respect to the December 2006 Company
Conversion shall be the period commencing on and including December 1, 2006 through but not
including the Fixed Maturity Date.

          e. Notwithstanding anything to the contrary in the Notes, each of the Buyers, severally and
not jointly, hereby agrees with the Company that such Buyer may, but shall not be required to,
convert all or any portion of any of such Buyer’s Aggregate Special Pro Rata Conversion Amounts
(and the applicable Additional Amount with respect thereto) with respect to the Notes held by such
Investor, and that any such conversion shall be at the sole election of such Buyer. In the event
that any of such Buyer’s Special Pro Rata Conversion Amounts has not been converted by such prior
to the Fixed Maturity Date (by delivering a Conversion Notice (as defined in the Notes) at any time
prior to the Fixed Maturity Date), then, notwithstanding anything to the contrary in the Notes, the
Special Company Conversions shall be null and void with respect to any of such Buyer’s Special Pro
Rata Conversion Amounts as to which such Buyer has not delivered a Conversion Notice prior to the
Fixed Maturity Date, in accordance

7

 

with the Notes, and such Buyer shall be entitled to all the rights of a holder of such Notes
with respect to such aggregate amount of such Buyer’s Special Pro Rata Conversion Amounts, and,
accordingly, shall be subject to all the other provisions of such Notes, including that the Company
shall redeem the Principal represented by such amount in accordance with Section 2(d)(vii) of such
Notes.

          f. Each of the Buyers, severally and not jointly, hereby waives the obligation of the Company
to comply with the Conditions to Company Alternative Conversion (as defined in the Notes) with
respect to each of the Special Company Conversions. Each of the Buyers, severally and not jointly,
and the Company hereby agree that neither the Volume Conversion Restriction Amount (i.e., the
volume limitation set forth in Section 8(b) of each of the Notes held by such Buyer) nor any of the
provisions of Sections 8(d) and 8(e) of each of the Notes held by such Buyer shall apply, nor shall
be of any force or effect with respect, to any of the Special Company Conversions.

          g. In the event that at any time prior to November 1, 2006 the Company consummates a private
placement or public offering of equity securities (which, for avoidance of doubt, shall not include
any securities that constitute, represent or are convertible into or exercisable or exchangeable
for any Indebtedness), (i) the Aggregate November 2006 Company Conversion Amount shall be reduced
(provided that the Aggregate November 2006 Company Conversion Amount shall not be reduced to below
zero (0)) by an amount (an “October Offering Amount”) equal to the net proceeds to the Company from
such offering (i.e., after deducting all commissions, fees and expenses associated with such
offering), and each Buyer’s Aggregate November 2006 Pro Rata Conversion Amount shall be reduced by
an amount equal to the product of such October Offering Amount, multiplied by the percentage set
forth across from such Buyer’s name in the fifth column of Schedule B attached hereto (such
Buyer’s “Conversion Amount Reduction Allocation Percentage”), and (ii) if the Aggregate November
2006 Company Conversion Amount has been reduced to zero (0), the Aggregate December 2006 Company
Conversion Amount shall be reduced (provided that the Aggregate December 2006 Company Conversion
Amount shall not be reduced to below zero (0)) by an amount equal to the amount (an “Excess October
Offering Amount”) of such October Offering Amount that has not been applied to reduction of the
Aggregate November 2006 Company Conversion Amount, and each Buyer’s Aggregate December 2006 Pro
Rata Conversion Amount shall be reduced by an amount equal to such Excess October Offering Amount,
multiplied by such Buyer’s Conversion Amount Reduction Allocation Percentage. In the event that at
any time on or after November 1, 2006 and prior to December 1, 2006, the Company consummates a
private placement or public offering of equity securities (which, for avoidance of doubt, shall not
include any securities that constitute, represent or are convertible into or exercisable or
exchangeable for any Indebtedness), the Aggregate December 2006 Company Conversion Amount shall be
reduced (provided that the Aggregate December 2006 Company Conversion Amount shall not be reduced
to below zero (0)) by an amount (a “Post-October Offering Amount”) equal to the net proceeds to the
Company from such offering (i.e., after deducting all commissions, fees and expenses associated
with such offering), and each Buyer’s Aggregate December 2006 Pro Rata Conversion Amount shall be
reduced by an amount equal to the product of such Post-October Offering Amount, multiplied by such
Buyer’s Conversion Amount Reduction Allocation Percentage.

8

 

     3. Termination of Liens and Security Interest Documents. Each of the Buyers, severally
and not jointly, hereby agrees that, on the first date on which no Notes are outstanding (i.e.,
because there are no outstanding Liabilities (as defined in the Security Agreement) under any
Notes), (i) all security interests and Liens that such Buyer and/or the Agent, as collateral agent
for such Buyer, may have on any real or personal property of the Company and the Subsidiaries under
the Security Agreement, the Mortgages, the Pledge Agreement, the Account Control Agreements and the
Guarantee (collectively, the “Security Interest Documents”) or other agreements pursuant to which
the Company or any of the Subsidiaries granted Liens in favor of Agent as collateral security for
such Person’s obligations under the Transaction Documents shall terminate and be of no further
force or effect; (ii) such Buyer will thereafter reassign, and hereby authorizes and directs the
Agent (as collateral agent for such Buyer) to thereafter reassign, to the Company and the
Subsidiaries, as applicable, all rights and interests in the property and assets of the Company and
the Subsidiaries which, pursuant to the Security Interest Documents or other agreements pursuant to
which Company or any Subsidiary granted Liens in favor of Agent as collateral security for such
Person’s obligations under the Transaction Documents, were previously assigned or granted as
collateral security to the Agent (as collateral agent for such Buyer) by the Company and the
Subsidiaries; (iii) the Security Interest Documents shall terminate, and the Company and the
Subsidiaries shall have no further liabilities or obligations thereunder (other than
indemnification and expense reimbursement obligations that expressly survive the termination of the
Security Interest Documents, which shall so survive as unsecured claims); provided, however, that
Section 5.12 of the Security Agreement shall survive any such termination; and (iv) such Buyer, at
the Company’s expense, shall thereafter deliver, and hereby authorizes and directs the Agent, as
collateral agent for such Buyer, to thereafter deliver, at Company’s expense, to the Company such
termination statements, releases, cancellations, discharges and other agreements as may be
reasonably requested by the Company in connection with the termination and release of all security
interests and Liens of such Buyer and Agent as contemplated hereby (the “Termination Documents”);
provided, however, that (i) the Company shall supply each of the Buyers and the Agent with the
forms of any such Termination Documents to be executed or authorized by such Buyer or the Agent, as
applicable, and (ii) in no event shall Agent be required to execute or deliver any such Termination
Document until it has been assured to its reasonable satisfaction that no Notes (nor any
Obligations thereunder) are outstanding.

     4. Amendment of Warrants.

          a. Each of the Buyers, severally and not jointly, hereby agrees with the Company that, as of
the date hereof, Section 9 of each of the Warrants held by such Buyer shall be amended by adding a
new subsection (c) thereto, to read in its entirety as follows:

“(c) In the event that an Acquiring Entity is not a publicly traded corporation
whose common stock is listed on the NASDAQ Global Market, the NASDAQ Global Select
Market or the New York Stock Exchange (excluding a sale by the Company, directly or
indirectly, of all or substantially all of the equity or assets of Consolidated
prior to January 15, 2007, a “Private Company Organic Change”), the holder of this
Warrant shall have the right (in addition to all other rights hereunder) to require
the Company to redeem this Warrant for a cash payment equal to the Private Company
Redemption Amount (as defined below).

9

 

Such right may be exercised as to all or any portion of this Warrant and shall be
exercised, if at all, by a notice (or notices) specifying the number of Warrant
Shares as to which this Warrant is to be redeemed (each, a “Warrant Redemption Right
Exercise Notice” and the date of delivery thereof, the “Warrant Redemption Right
Exercise Notice Date”), which shall be irrevocable provided that the Company
complies with its obligations hereunder and except as expressly provided in this
Section 9, given to the Company at any time during the period (i) beginning on and
including the earlier of (A) the date written notice of a Private Company Organic
Change is delivered to the holder of this Warrant, which written notice the Company
shall deliver not less than twenty (20) Trading Days prior to such Private Company
Organic Change (provided that the Company shall provide such notice
contemporaneously with (but not earlier than) the first public disclosure of the
information contained therein and simultaneously to the holders of all outstanding
Warrants), and (B) the date that is twenty (20) Trading Days prior to the
consummation of such Private Company Organic Change (the earlier of (A) and (B), the
“Warrant Redemption Right Exercise Period Commencement Date”), and (ii) ending on
and including the date that is three (3) Trading Days prior to the consummation of
such Private Company Organic Change. Following the delivery by the holder of this
Warrant of a Warrant Redemption Right Exercise Notice, the Company and the holder of
this Warrant shall each promptly determine the applicable Private Company Redemption
Value (as defined below) and notify in writing the other of the Private Company
Redemption Value so determined. If the holder and the Company are unable to agree
on the calculation of the applicable Private Company Redemption Value, such dispute
regarding the calculation of the applicable Private Company Redemption Value shall
be resolved in accordance with the procedures set forth in Section 8(b)(iii) of this
Warrant. The applicable “Private Company Redemption Value” shall be the
Black-Scholes Value of this Warrant as to one (1) Warrant Share, except that in
calculating such Black-Scholes Value, (x) the Valuation Date shall be the applicable
Warrant Redemption Right Exercise Notice Date, (y) the “option striking price” shall
be the Warrant Exercise Price on such Valuation Date, and (z) the “current stock
price” shall be the Weighted Average Price of the Common Stock on such Valuation
Date. The Company shall pay the Private Company Redemption Amount to the holder of
this Warrant simultaneously with the consummation of the Private Company Organic
Change. To the extent permitted by applicable law, the Company shall not enter into
any binding agreement or other arrangement with respect to a Private Company Organic
Change (other than a sale of all or substantially all of the Company’s assets)
unless the Company provides that the payments provided for in this Section 9 shall
have priority to payments to stockholders in connection with such Private Company
Organic Change and the Company complies with such provision. The applicable
“Private Company Redemption Amount” shall be the product of (I) the result of (X)
the Private Company Redemption Value, minus (Y) if all of the Conditions to
Redemption Amount Reduction (as defined below) have been satisfied as of the date of
consummation of the Private Company Organic Change, the amount, if any, by

10

 

which the Weighted Average Price of the Common Stock on the applicable Warrant
Redemption Right Exercise Notice Date exceeds the Warrant Exercise Price on such
Warrant Redemption Right Exercise Notice Date, or if one of more of the Conditions
to Private Company Redemption Reduction have not been satisfied as of the date of
consummation of the Private Company Organic Change, zero (0), multiplied by (II) the
number of Warrant Shares as to which the holder has demanded this Warrant be
redeemed, as set forth in the applicable Warrant Redemption Right Exercise Notice
(the date of delivery thereof by the holder being referred to as the “Applicable
Redemption Notice Date”), and has not revoked such demand as provided in this
Section 9; provided, however, that such number shall not exceed the number of
Warrant Shares for which this Warrant could be exercised on the applicable Warrant
Redemption Right Exercise Period Commencement Date, minus (a) the number of Warrant
Shares as to which this Warrant has been exercised since the Warrant Redemption
Right Exercise Period Commencement Date and (b) the number of Warrant Shares as to
which the holder has demanded this Warrant be redeemed, as set forth in any
Redemption Right Exercise Notices delivered on dates prior to the Applicable
Redemption Notice Date, and has not revoked such demand as provided in this Section
9. Notwithstanding anything to the contrary contained in this Section 9, a Warrant
Redemption Exercise Notice shall be deemed revoked in full, and shall be of no
further force and effect, on an applicable Termination Date (as defined below).”

          b. Each of the Buyers, severally and not jointly, hereby agrees with the Company that, as of
the date hereof, Section 9 of each of the Warrants held by such Buyer shall be amended by adding a
new subsection (d) thereto, to read in its entirety as follows:

“(d) For purposes of this Section 9, “Conditions to Redemption Amount Reduction”
means the following conditions: (i) during the period beginning on the Warrant Date
and ending on and including the date of consummation of the Private Company Organic
Change (the applicable “Transaction Consummation Date”), the Company shall have
delivered Warrant Shares upon exercise of the Warrants on a timely basis as set
forth Section 2(a) of each of the Warrant; (ii) on each day during the period (the
“Redemption Amount Reduction Condition Period”) beginning on and including the
Warrant Redemption Right Exercise Period Commencement Date relating to such
Transaction Consummation Date and ending on and including such Transaction
Consummation Date, the Common Stock is listed on the NASDAQ Global Market, the
NASDAQ Global Select Market or the New York Stock Exchange and the Common Stock has
not been suspended from trading on the NASDAQ Global Market, the NASDAQ Global
Select Market or the New York Stock Exchange; (iii) on each day during the
Redemption Amount Reduction Condition Period, a Registration Statement (as defined
in the Registration Rights Agreement) shall be effective and available for the sale
of all of the Registrable Securities issuable upon exercise of the Warrants, in
accordance with the Registration Rights Agreement, and there shall not have been any
Grace Period (as defined in the Registration Rights Agreement) applicable to such
Registration Statement; and (iv) the Company shall have

11

 

obtained all requisite approvals of its stockholders for the issuance of all of the
Warrant Shares issuable upon exercise of the Warrants.”

          c. Each of the Buyers, severally and not jointly, hereby agrees with the Company that, as of
the date hereof, Section 9 of each of the Warrants held by such Buyer shall be amended by adding a
new subsection (e) thereto, to read in its entirety as follows:

“(e) If at any time during a period (a “Compensated Exercise Period”) beginning on a
Warrant Redemption Right Exercise Period Commencement Date and ending on the earlier
of (i) the Trading Day immediately preceding the applicable Transaction Consummation
Date and (ii) the termination or abandonment of the Private Company Organic Change
as to which such Warrant Redemption Right Exercise Period Commencement Date relates
and the public disclosure thereof, which public disclosure the Company shall make no
later than the first Business Day following such termination or abandonment (a date
of such public disclosure, a “Termination Date”), the holder of this Warrant
exercises this Warrant as to any Warrant Shares (any such exercise being referred to
as a “Compensated Exercise”), and if the holder has delivered a Warrant Redemption
Right Exercise Notice on or after such Warrant Redemption Right Exercise Period
Commencement Date and prior to the date of such exercise (the “Exercise Date”), the
holder shall designate in the applicable Exercise Notice whether such exercise
revokes such Warrant Redemption Right Exercise Notice as to the Warrant Shares
subject to such exercise. With respect to any Compensated Exercise, but without
limiting or otherwise affecting the Company’s obligations under Section 2 of this
Warrant with respect thereto, the Company shall pay to the holder an amount equal to
the product (a “Warrant Exercise Additional Compensation Amount”) of (I) the result
of (A) the Black-Scholes Value of this Warrant as to one (1) Warrant Share, except
that in calculating such Black-Scholes Value, (x) the Valuation Date shall be the
applicable Exercise Date, (y) the “option striking price” shall be the Warrant
Exercise Price on such Valuation Date, and (z) the “current stock price” shall be
the Weighted Average Price of the Common Stock on such Valuation Date (with any
dispute regarding the calculation of such Black-Scholes Value being resolved in
accordance with the procedures set forth in Section 8(b)(iii) of this Warrant),
minus (B) the amount, if any, by which the Weighted Average Price of the Common
Stock on the applicable Exercise Date exceeds the Warrant Exercise Price on such
Exercise Date. The Company shall pay the Warrant Exercise Additional Compensation
Amount to the holder of this Warrant no later than the earliest to occur of (1) a
Transaction Consummation Date, (2) a Termination Date, and (3) the thirtieth
(30th) day after such Exercise Date.

          d. Each of the Buyers, severally and not jointly, hereby agrees with the Company that, as of
the date hereof, Section 9 of each of the Warrants held by such Buyer shall be amended by adding a
new subsection (f) thereto, to read in its entirety as follows:

“(f) Upon any Warrant Redemption Right Exercise Period Commencement Date relating to
a Private Company Organic Change, the Warrant Exercise Price

12

 

then in effect shall be reduced, effective as of such Warrant Exercise Period
Commencement Date, to the Weighted Average Price of the Common Stock on the Trading
Day immediately preceding such Warrant Redemption Right Exercise Period Commencement
Date; provided that, in the case of a Warrant Redemption Right Exercise Period
Commencement Date relating to a Private Company Organic Change that is not a sale of
all or substantially all of the assets of the Company, the Warrant Exercise Price
then in effect shall instead be reduced to a price equal to the value, as determined
jointly by the Company and the holder of this Warrant, of the consideration to be
received per share of Common Stock by stockholders of the Company in such Private
Company Organic Change if such value is less than such Weighted Average Price. In
no event shall the Warrant Exercise Price be increased pursuant to this Section
9(f).”

     5. Amendment of Securities Purchase Agreement. Each of the Buyers, severally and not
jointly, hereby agrees with the Company that, as of the date hereof, Section 4(l) of the Securities
Purchase Agreement shall be amended by deleting the first sentence thereof. Each of the Buyers,
severally and not jointly, hereby agrees with the Company that, on the first date on which no Notes
are outstanding, the Securities Purchase Agreement shall be amended by deleting Sections 4(l) and
4(w) thereof in their entirety. Each of the Buyers, severally and not jointly, hereby agrees with
the Company that, upon the consummation of a Private Company Organic Change and provided that the
Company complies with its obligations under the Notes and the other Transaction Documents in
connection therewith, the Securities Purchase Agreement shall be amended by deleting Sections 4(c)
and 4(g) thereof in their entirety.

     6. Modification of August 2006 Waiver and Amendment; Additional Limited Waiver.

          a. Subject to Section 6(c), each of the Buyers, severally and not jointly, hereby agrees with
the Company that, as of the date hereof, the reference to “$5,000,000” in clause (W) of the limited
waiver contained in Section 4(a) of the August 2006 Waiver and Amendment shall be changed to
“$6,000,000,” and the reference to “$1,500,000” in clause (X) of the limited waiver contained in
Section 4(a) of the August 2006 Waiver and Amendment shall be changed to “$7,500,000.”

          b. Subject to Section 6(c), each of the Buyers, severally and not jointly, hereby waives the
occurrence of a Triggering Event under Section 3(b)(vii) of each of the Notes, the breach of the
Registration Rights Agreement and such Buyer’s right to receive Registration Delay Payments from
the Company resulting solely from the Company’s failure to file the August 2006 Required
Registration Statement with the SEC by August 24, 2006 (but for the avoidance of doubt, not from
any failure of the August 2006 Required Registration Statement to be declared effective); provided
that such waivers are subject to, and conditioned upon, the Company’s filing of the August 2006
Registration Statement with the SEC by no later than October 6, 2006; and provided,
further, that, in the event that the Company does not file the August 2006 Required
Registration Statement with the SEC by October 6, 2006, the waivers contained in this Section 4(b)
shall be null and void and of no force or effect, and there shall be an immediate breach of the
Registration Rights Agreement and a Triggering Event under each of the Notes and the Company shall
be obligated to make Registration Delay Payments to each of

13

 

the Buyers in accordance with the Registration Rights Agreement (including, with respect to
all days since August 24, 2006), as if these waivers had never been granted.

          c. The limited waivers set forth in Section 4(a) of the August 2006 Waiver and Amendment (as
modified hereby) and in Section 6(b) hereof are conditioned upon, and subject to, the validity and
enforceability of, and the Company’s performance of, the Company’s commitments and obligations
under this Agreement (including the Company’s obligation to pay the Principal of each of the Notes
as increased pursuant to Section 1(a)), the voiding, setting aside, determination of invalidity or
unenforceability, breach or non-performance of which shall render such waivers null and void and of
no force and effect, each Buyer being entitled thereafter to exercise all remedies at law or in
equity under this Agreement, the August 2006 Waiver and Amendment and the other Transaction
Documents as if Section 4(a) of the 2006 Waiver and Amendment had not been part of the 2006 Waiver
and Amendment, as executed, and this Section 6(b) had not been part of this Agreement, as executed.
Neither the limited waivers set forth in Section 4(a) of the August 2006 Waiver and Amendment (as
modified hereby) nor the limited waivers set forth in Section 6(b) hereof is, nor shall be deemed
to be, a waiver under any other circumstance or a waiver of any other condition, requirement,
provision or breach of any of the Transaction Documents or any other agreement or instrument.

     7. Termination of Registration Obligations. Each of the Buyers, severally and not
jointly, hereby agrees with the Company that, after the consummation of a Private Company Organic
Change and provided that the Company complies with its obligations under the Notes and the other
Transaction Documents in connection therewith, the Company shall have no further obligations under
Section 2, 3 (other than Section 3(j)) or 8 of the Registration Rights Agreement, and no Investor
(as defined in the Registration Rights Agreement) shall have any further obligations under Section
4 of the Registration Rights Agreement.

     8. Continuation of Transaction Documents. The Company and the Subsidiaries agree and
acknowledge that all of the terms and provisions of each Note (as amended hereby), the Warrant (as
amended hereby), the Securities Purchase Agreement (as amended hereby), the August 2006 Waiver and
Amendment (as modified hereby) and the other Transaction Documents remain in full force in
accordance with their terms, subject to the terms and conditions of this Agreement.

     9. Company Alternative Conversion Limitation. The Company hereby agrees with each of
the Buyers, severally and not jointly, that as of and after the date of this Amendment, (a) the
Company shall not have the right to effect any Company Alternative Conversion pursuant to Section 8
of the Notes other than pursuant to Special Company Conversions in accordance with this Agreement,
and (b) any Company Alternative Conversion Notice delivered pursuant to any of the Notes (other
than a Company Alternative Conversion Notice with respect to a Special Company Conversion deemed
delivered pursuant to Section 2 of this Agreement) as of and after the date of this Agreement shall
be null and void and of no force or effect.

     10. September 7 Infinity Notice Null and Void. The Company hereby agrees with each of
the Buyers, severally and not jointly, that the September 7 Infinity Notice is null and void and of
no force or effect.

14

 

     11. Covenants.

          a. Prior to 9:00 a.m., New York time, on October 3, 2006, the Company shall (a) file a Form
8-K (the “8-K”) with the Securities and Exchange Commission (the “SEC”) describing the terms of
this Agreement, any information reasonably requested to be disclosed therein by any Buyer and any
material non-public information previously provided by the Company, any of its Subsidiaries or any
of their respective officers, directors, employees or agents to any of the Buyers and not
subsequently disclosed on a Form 8-K or other publicly-available filing with the SEC prior to the
filing of the 8-K, and including this Agreement as an exhibit to the 8-K, all in the form required
by the 1934 Act, and (b) publicly issue on a widely disseminated basis a press release (the “Press
Release”) in the form agreed to by the Company and each of the Buyers prior to the date hereof;
provided that the Press Release shall not be issued prior to the filing of the 8-K. The Company
shall provide each Buyer with a reasonable opportunity to review and comment upon the 8-K prior to
the filing thereof with the SEC.

          b. Within two (2) Business Days following the date hereof, the Company shall promptly
reimburse each Buyer for all of the out-of-pocket fees, costs and expenses (including, but not
limited to, attorneys’ fees, costs and expenses) incurred by such Buyer in connection with the
negotiation and documentation of this Agreement.

     12. Representations and Warranties of the Company. The Company represents and
warrants to each of the Buyers that:

          a. Authorization; Enforcement; Validity. Each of the Company and its Subsidiaries has
the requisite corporate power and authority to enter into and perform its obligations under this
Agreement, the Notes (as amended hereby), Warrants (as amended hereby), the Securities Purchase
Agreement (as amended hereby), the August 2006 Waiver and Amendment (as modified hereby) and the
other Transaction Documents. The execution and delivery of this Agreement by each of the Company
and its Subsidiaries and the consummation of the transactions contemplated hereby (including the
issuance of Conversion Shares upon conversion of the Notes (as amended hereby) and the issuance of
Warrant Shares upon the exercise of the Warrants (as amended hereby)) have been duly authorized by
the respective boards of directors of the Company and its Subsidiaries, and no further consent or
authorization is required of any of the Company, its Subsidiaries or their respective Boards of
Directors or shareholders (under applicable law, the rules and regulations of the Principal Market
or otherwise). This Agreement has been duly executed and delivered by each of the Company and its
Subsidiaries, and each of this Agreement, the Notes (as amended hereby), the Warrants (as amended
hereby), the Securities Purchase Agreement (as amended hereby), the August 2006 Waiver and
Amendment (as modified hereby) and the other Transaction Documents constitutes a valid and binding
obligation of each of the Company and its Subsidiaries, enforceable against each of the Company and
its Subsidiaries in accordance with its terms.

          b. Issuance of Securities. Upon issuance in accordance with the Notes (as amended
hereby) and the Warrants (as amended hereby), the Conversion Shares and the Warrant Shares,
respectively, will be validly issued, fully paid and nonassessable and free from all taxes and
Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to
a holder of the Common Stock.

15

 

          c. No Conflicts. The execution and delivery of this Agreement by each of the Company
and its Subsidiaries, the performance by each of the Company and its Subsidiaries of its
obligations hereunder and the consummation by each of the Company and its Subsidiaries of the
transactions contemplated hereby and by the Notes (as amended hereby), the Warrants (as amended
hereby), the Securities Purchase Agreement (as amended hereby), the August 2006 Waiver and
Amendment (as modified hereby) and the other Transaction Documents will not (i) result in a
violation of the Articles of Incorporation or the Bylaws or the organizational documents of any
Subsidiary; (ii) conflict with, or constitute a breach or default (or an event which, with the
giving of notice or lapse of time or both, constitutes or would constitute a breach or default)
under, or give to others any right of termination, amendment, acceleration or cancellation of, or
other remedy with respect to, any agreement, indenture or instrument to which the Company or any of
its Subsidiaries is a party; or (iii) result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws and regulations and the rules and
regulations of the Principal Market) applicable to the Company or any of its Subsidiaries or by
which any property or asset of the Company or any of its Subsidiaries is bound or affected. Except
as provided in Section 11(a) hereof, neither the Company nor any of its Subsidiaries is required to
obtain any consent, authorization or order of, or make any filing or registration with, any court
or governmental agency, the Principal Market or any other regulatory or self-regulatory authority
in order for it to execute, deliver or perform any of its obligations under or contemplated by this
Agreement in accordance with the terms hereof, or under the Notes (as amended hereby), the Warrants
(as amended hereby), the Securities Purchase Agreement (as amended hereby), the August 2006 Waiver
and Amendment (as modified hereby) and the other Transaction Documents, including, the issuance of
Conversion Shares and Warrant Shares in accordance with the terms of the Notes (as amended hereby)
and the Warrants (as amended hereby), respectively.

          d. No Default. As of the date hereof, there exists no Triggering Event or Event of
Default (each as defined in the Notes).

     13. Representation and Warranties of the Buyers. Each of the Buyers represents and
warrants to the Company that (a) such Buyer is a validly existing corporation, partnership, limited
liability company or other entity and has the requisite corporate, partnership, limited liability
or other organizational power and authority to enter into and perform its obligations under this
Agreement, and (b) this Agreement has been duly and validly authorized, executed and delivered on
behalf of such Buyer and is a valid and binding agreement of such Buyer, enforceable against such
Buyer in accordance with its terms.

     14. Avoidance of Doubt. The parties hereto hereby agree, for the avoidance of doubt,
that (a) the terms “Notes” and “Warrants” as used in the Transaction Documents shall mean the Notes
and Warrants, in each case as, and to the extent, amended by this Agreement, and (b) the terms
“Liabilities” and “Obligations” as used in the Transaction Documents and “Indebtedness” as used in
the Mortgages shall include all liabilities and obligations of the Company under this Agreement,
under each of the Notes (as amended hereby, including the increase in Principal thereof as provided
hereunder), under each of the Warrants (as amended hereby) and under the other Transaction
Documents (in each case as, and to the extent, amended or modified hereby), and each of the parties
hereto agrees not to take any contrary positions.

16

 

     15. Independent Nature of the Buyers. The obligations of each of the Buyers hereunder
are several and not joint with the obligations of the other Buyers, and none of the Buyers shall be
responsible in any way for the performance of the obligations of any of the other Buyers hereunder
or under any of the other Transaction Documents. Each of the Buyers shall be responsible only for
its own agreements and covenants hereunder and under the other Transaction Documents. The decision
of each of the Buyers to enter into this Agreement has been made by such party independently of any
of the other Buyers and independently of any information, materials, statements or opinions as to
the business, affairs, operations, assets, properties, liabilities, results of operations,
condition (financial or otherwise) or prospects of the Company or any of its Subsidiaries which may
have been made or given by any of the other Buyers or by any agent or employee of any of the other
Buyers, and none of the Buyers nor any of their respective agents or employees shall have any
liability to any of the other Buyers (or any other person or entity) relating to or arising from
any such information, materials, statements or opinions. Nothing contained herein or in any of the
other Transaction Documents, and no action taken by any of the Buyers pursuant hereto or thereto,
shall be deemed to constitute any of the Buyers as a partnership, an association, a joint venture
or any other kind of entity, or create a presumption that any of the Buyers are in any way acting
in concert or as a group with respect to such obligations or the transactions contemplated hereby
or thereby. Each of the Buyers shall be entitled to independently protect and enforce its rights,
including the rights arising out of this Agreement, the Notes, the Warrants, the August 2006 Waiver
and Amendment, the Security Interest Documents and the other Transaction Documents, and it shall
not be necessary for any of the other Buyers to be joined as an additional party in any proceeding
for such purpose.

     16. Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and permitted assigns. The
successors and assigns of such entities shall include their respective receivers, trustees or
debtors-in-possession.

     17. Further Assurances. The Company hereby agrees from time to time, as and when
requested by any Buyer, to execute and deliver or cause to be executed and delivered, all such
documents, instruments and agreements, including secretary’s certificates, stock powers and
irrevocable transfer agent instructions, and to take or cause to be taken such further or other
action, as such Buyer may reasonably deem necessary or desirable in order to carry out the intent
and purposes of this Agreement and the other Transaction Documents.

     18. Rules of Construction. All words in the singular or plural include the singular
and plural and pronouns stated in either the masculine, the feminine or neuter gender shall include
the masculine, feminine and neuter, and the use of the word “including” in this Agreement shall be
by way of example rather than limitation.

     19. Governing Law; Jurisdiction; Jury Trial. All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of New York or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of New York. Each party
hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in
the City of New York, borough of Manhattan, for the adjudication of any dispute

17

 

hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

     20. Counterparts. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to each other party. In
the event that any signature to this Agreement or any amendment hereto is delivered by facsimile
transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a
valid and binding obligation of the party executing (or on whose behalf such signature is executed)
with the same force and effect as if such facsimile or “.pdf” signature page were an original
thereof. No party hereto shall raise the use of a facsimile machine or e-mail delivery of a “.pdf”
format data file to deliver a signature to this Agreement or any amendment hereto or the fact that
such signature was transmitted or communicated through the use of a facsimile machine or e-mail
delivery of a “.pdf” format data file as a defense to the formation or enforceability of a
contract, and each party hereto forever waives any such defense.

     21. Section Headings. The section headings herein are for convenience of reference
only, and shall not affect in any way the interpretation of any of the provisions hereof.

     22. No Strict Construction. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

     23. Merger. This Agreement and the other Transaction Documents, as amended hereby,
represent the final agreement of each of the parties hereto with respect to the matters contained
herein and may not be contradicted by evidence of prior or contemporaneous agreements, or prior or
subsequent oral agreements, among any of the parties hereto.

     24. Ratification by Guarantors. By execution hereof, each of the Subsidiaries hereby
acknowledges and agrees that it has reviewed this Agreement and hereby ratifies and confirms its
respective obligations under the Transaction Documents, in each case as amended hereby.

     25. Release Under Security Interest Documents. The Company and each of the
Subsidiaries hereby agrees that, as of the first date on which no Notes are outstanding, each of
Company and the Subsidiaries releases such Buyers and the Agent and their respective affiliates

18

 

and subsidiaries and their respective officers, directors, partners, members, managers,
employees, shareholders, agents and representatives, as well as their respective successors and
assigns, from any and all claims, obligations, rights, causes of action and liabilities, of
whatever kind or nature, whether known or unknown, whether foreseen or unforeseen, arising on or
before such date, which any such Person ever had, now has or hereafter can, shall or may have for,
upon or by reason of any matter, cause or thing whatsoever, which are based upon, arise under or
are related to the Notes or the Security Interest Documents, other than with respect to the Agent’s
and each of the Buyers’ obligations under this Agreement.

[Remainder of page intentionally left blank; Signature page follows]

19

 

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by each of the
undersigned as of the date first above written.

	 	 	 	 	 
	 	 	INFINITY ENERGY RESOURCES, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Timothy A. Ficker
	 

	 	 	 	 
	 

	 	Name:	 	Timothy A. Ficker
	 

	 	 	 	 
	 

	 	Title:	 	Vice President and Chief Financial
Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	CONSOLIDATED OIL WELL SERVICES, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Timothy A. Ficker
	 

	 	 	 	 
	 

	 	Name:	 	Timothy A. Ficker
	 

	 	 	 	 
	 

	 	Title:	 	Vice President and Chief Financial
Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	CIS-OKLAHOMA, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Stanton E. Ross
	 

	 	 	 	 
	 

	 	Name:	 	Stanton E. Ross
	 

	 	 	 	 
	 

	 	Title:	 	Chief Executive Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	INFINITY OIL & GAS OF WYOMING, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Timothy A. Ficker
	 

	 	 	 	 
	 

	 	Name:	 	Timothy A. Ficker
	 

	 	 	 	 
	 

	 	Title:	 	Vice President and Chief Financial
Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	INFINITY OIL & GAS OF KANSAS, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Timothy A. Ficker
	 

	 	 	 	 
	 

	 	Name:	 	Timothy A. Ficker
	 

	 	 	 	 
	 

	 	Title:	 	Vice President and Chief Financial
Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	INFINITY OIL AND GAS OF TEXAS, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Timothy A. Ficker
	 

	 	 	 	 
	 

	 	Name:	 	Timothy A. Ficker
	 

	 	 	 	 
	 

	 	Title:	 	Vice President and Chief Financial
Officer
	 

	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	HFTP INVESTMENT L.L.C.
	 
	 	 	 	 	 	 
	 	 	By:	 	Promethean Asset Management L.L.C.
	 	 	Its:	 	Investment Manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Robert J. Brantman
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Robert J. Brantman
	 

	 	 	 	Title:
	 	Partner and Authorized Signatory
	 
	 	 	 	 	 	 
	 	 	GAIA OFFSHORE MASTER FUND, LTD.
	 
	 	 	 	 	 	 
	 	 	By:	 	Promethean Asset Management L.L.C.
	 	 	Its:	 	Investment Manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Robert J. Brantman
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Robert J. Brantman
	 

	 	 	 	Title:
	 	Partner and Authorized Signatory

	 	 	 	 	 	 	 	 	 
	 	 	AG OFFSHORE CONVERTIBLES, LTD.
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Angelo, Gordon & Co. L.P.
	 	 	Its:	 	Director
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Michael L. Gordon
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	Michael L. Gordon
	 	 	 	 	Title:	 	Chief Operating Officer
	 
	 	 	 	 	 	 	 	 
	 	 	LEONARDO, L.P.
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Leonardo Capital Management, Inc.
	 	 	Its:	 	General Partner
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Angelo, Gordon & Co., L.P.
	 	 	 	 	Its:	 	Director
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Michael L. Gordon
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Michael L. Gordon
	 

	 	 	 	 	 	Title:
	 	Chief Operating Officer

 

 

	 	 	 	 	 	 	 
	 	 	PORTSIDE GROWTH & OPPORTUNITY FUND
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Jeffrey C. Smith
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Jeffrey C. Smith
	 

	 	 	 	Title:
	 	Authorized Signatory

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