Document:

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                                                                     EXHIBIT 4.5

                                                                       EXHIBIT C

                                 FORM OF WARRANT

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR (B)
AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD
PURSUANT TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY TRANSFEREE OF THIS
WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF THIS WARRANT, INCLUDING SECTION
2(f) HEREOF. THE SECURITIES REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE
NUMBER SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 2(f) HEREOF.

                                 INFINITY, INC.

                        WARRANT TO PURCHASE COMMON STOCK

Warrant No.:___________                                Number of Shares: _______
Date of Issuance: ______, 2005

Infinity, Inc., a Colorado corporation (the "COMPANY"), hereby certifies that,
for Ten United States Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
____________________, the registered holder hereof or its permitted assigns, is
entitled, subject to the terms set forth below, to purchase from the Company
upon surrender of this Warrant (if required by Section 2(f)), at any time or
times on or after the date hereof, but not after 11:59 P.M. New York Time on the
Expiration Date (as defined herein) ________________ ( ) [INSERT <115% WARRANTS>
THE QUOTIENT OF (I) 28% OF THE ORIGINAL PRINCIPAL AMOUNT OF NOTES PURCHASED BY
THE HOLDER AT THE APPLICABLE CLOSING, DIVIDED BY (II) THE WARRANT EXERCISE PRICE
AS OF THE APPLICABLE CLOSING; <140% WARRANTS> THE QUOTIENT OF (I) 27% OF THE
ORIGINAL PRINCIPAL AMOUNT OF NOTES PURCHASED BY THE HOLDER AT THE APPLICABLE
CLOSING, DIVIDED BY (II) THE WARRANT EXERCISE PRICE AS OF THE APPLICABLE
CLOSING] fully paid nonassessable shares of Common Stock (as defined in Section
1(b)) of the Company (the "WARRANT SHARES") at the Warrant Exercise Price (as
defined in Section 1(b) below); provided, however, that in no event shall the
holder be entitled or required to exercise this Warrant for a number of Warrant
Shares in excess of that number of Warrant Shares that, upon giving effect to
such exercise, would cause the aggregate number of shares of Common Stock
beneficially owned by the holder and its affiliates to exceed 4.99% of the
outstanding shares of the Common Stock following such exercise. For purposes of
the foregoing proviso, the

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aggregate number of shares of Common Stock beneficially owned by the holder and
its affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which the determination of such proviso
is being made, but shall exclude shares of Common Stock that would be issuable
upon (i) exercise of the remaining, unexercised SPA Warrants (as defined in
Section 1(a)) beneficially owned by the holder and its affiliates and (ii)
exercise, conversion or exchange of the unexercised, unconverted or unexchanged
portion of any other securities of the Company beneficially owned by the holder
and its affiliates (including the Notes (as defined below) and any other
convertible notes or preferred stock) subject to a limitation on conversion,
exercise or exchange analogous to the limitation contained herein. Except as set
forth in the preceding sentence, for purposes of this paragraph, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended. For purposes of this Warrant, in determining
the number of outstanding shares of Common Stock a holder may rely on the number
of outstanding shares of Common Stock as reflected in (1) the Company's most
recent Form 10-Q or Form 10-K, as the case may be, (2) a more recent public
announcement by the Company or (3) any other notice by the Company or its
transfer agent setting forth the number of shares of Common Stock outstanding.
Upon the written request of any holder, the Company shall promptly, but in no
event later than one (1) Business Day following the receipt of such request,
confirm in writing to any such holder the number of shares of Common Stock then
outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion, exercise or exchange of
securities of the Company, including the Notes, and the SPA Warrants by such
holder and its affiliates, since the date as of which such number of outstanding
shares of Common Stock was reported. For purposes of determining the maximum
number of shares of Common Stock that the Company may issue to the holder of
this Warrant upon exercise of this Warrant, such holder's delivery of an
Exercise Notice (as defined in Section 2(a)) with respect to such exercise shall
constitute a representation (on which the Company may rely without
investigation) by the holder of this Warrant that upon the issuance of the
shares of Common Stock to be issued to such holder, the shares of Common Stock
beneficially owned by such holder and its affiliates shall not exceed 4.99% of
the total outstanding shares of Common Stock of the Company immediately after
giving effect to such exercise as determined in accordance with this paragraph.

      Section 1.

            (a)   Securities Purchase Agreement. This Warrant is one of the
warrants issued pursuant to Section 1 of that certain Securities Purchase
Agreement dated as of January 13, 2005, among the Company and the Persons (as
defined below) referred to therein (as such agreement may be amended from time
to time as provided in such agreement, the "SECURITIES PURCHASE AGREEMENT") or
of any warrants issued in exchange or substitution therefor or replacement
thereof (all such warrants being collectively referred to as the "SPA
WARRANTS"). Each capitalized term used, and not otherwise defined herein, shall
have the meaning ascribed thereto in the Securities Purchase Agreement.

            (b)   Definitions. The following words and terms as used in this
Warrant shall have the following meanings:

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                  (i)   "APPROVED STOCK PLAN" means any employee benefit plan
that has been approved by the Board of Directors and shareholders of the
Company, pursuant to which the Company's securities may be issued to any
consultant, employee, officer or director for services provided to the Company.

                  (ii)  "BUSINESS DAY" means any day other than Saturday, Sunday
or other day on which commercial banks in the City of New York are authorized or
required by law to remain closed.

                  (iii) "COMMON STOCK" means (i) the Company's common stock,
$0.0001 par value per share, and (ii) any capital stock into which such Common
Stock shall have been changed or any capital stock resulting from a
reclassification of such Common Stock.

                  (iv)  <140% WARRANTS> "COMMON STOCK DEEMED OUTSTANDING" MEANS,
AT ANY GIVEN TIME, THE NUMBER OF SHARES OF COMMON STOCK ACTUALLY OUTSTANDING AT
SUCH TIME, PLUS THE NUMBER OF SHARES OF COMMON STOCK DEEMED TO BE OUTSTANDING
PURSUANT TO SECTIONS 8(B)(I) AND 8(B)(II) HEREOF REGARDLESS OF WHETHER THE
OPTIONS OR CONVERTIBLE SECURITIES ARE ACTUALLY EXERCISABLE OR CONVERTIBLE AT
SUCH TIME, BUT EXCLUDING ANY SHARES OF COMMON STOCK OWNED OR HELD BY OR FOR THE
ACCOUNT OF THE COMPANY OR ISSUABLE UPON CONVERSION OF THE NOTES OR EXERCISE OF
THE SPA WARRANTS. <115% WARRANTS> INTENTIONALLY OMITTED]

                  (v)   "CONVERTIBLE SECURITY" means any stock or securities
(other than Options) directly or indirectly convertible into or exchangeable or
exercisable for Common Stock.

                  (vi)  "EXPIRATION DATE" means the date that is five (5) years
after the Warrant Date (as defined in Section 13) or, if such date does not fall
on a Business Day, then the next Business Day.

                  (vii) "NOTES" means the senior secured notes of the Company
issued pursuant to the Securities Purchase Agreement, and all notes issued in
exchange therefor or replacement thereof pursuant to the terms of such notes.

                  (viii) "OPTIONS" means any rights, warrants or options to
subscribe for or purchase Common Stock or Convertible Securities.

                  (ix)  "PERSON" means an individual, a limited liability
company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization or a government or any department or agency thereof
or any other legal entity.

                  (x)   "PRINCIPAL MARKET" means, with respect to the Common
Stock or any other security, the NASDAQ National Market, or, if the Common Stock
or such other security is not traded on the NASDAQ National Market, then the
principal securities exchange or trading market for the Common Stock or such
other security.

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                  (xi)  "REGISTRATION RIGHTS AGREEMENT" means that agreement
dated January 13, 2005 by and among the Company and the Persons referred to
therein, as such agreement may be amended from time to time as provided in such
agreement.

                  (xii) "SECURITIES ACT" means the Securities Act of 1933, as
amended.

                  (xiii) "TRADING DAY" means any day on which the Common Stock
is traded on the Principal Market; provided that "Trading Day" shall not include
any day on which the Common Stock is scheduled to trade, or actually trades, on
such exchange or market for less than 4.5 hours.

                  (xiv) "WARRANT" means this Warrant and all Warrants issued in
exchange, transfer or replacement thereof pursuant to the terms of this Warrant.

                  (xv)  "WARRANT EXERCISE PRICE" shall be equal to, with respect
to any Warrant Share, [INSERT <115% WARRANTS> 115% OF THE ARITHMETIC AVERAGE OF
THE WEIGHTED AVERAGE PRICE OF THE COMMON STOCK ON EACH OF THE FIVE CONSECUTIVE
TRADING DAYS IMMEDIATELY PRECEDING THE WARRANT DATE; <140% WARRANTS> 140% OF THE
ARITHMETIC AVERAGE OF THE WEIGHTED AVERAGE PRICE OF THE COMMON STOCK ON EACH OF
THE FIVE CONSECUTIVE TRADING DAYS IMMEDIATELY PRECEDING THE WARRANT DATE],
subject to adjustment as hereinafter provided.

                  (xvi) "WEIGHTED AVERAGE PRICE" means, for any security as of
any date, the dollar volume-weighted average price for such security on its
Principal Market during the period beginning at 9:30 a.m., New York City Time
(or such other time as the Principal Market publicly announces is the official
open of trading), and ending at 4:00 p.m., New York City Time (or such other
time as the Principal Market publicly announces is the official close of
trading), as reported by Bloomberg Financial Markets (or any successor thereto,
"BLOOMBERG") through its "Volume at Price" functions, or, if the foregoing does
not apply, the dollar volume-weighted average price of such security in the
over-the-counter market on the electronic bulletin board for such security
during the period beginning at 9:30 a.m., New York City Time (or such other time
as such over-the-counter market publicly announces is the official open of
trading), and ending at 4:00 p.m., New York City Time (or such other time as
such over-the-counter market publicly announces is the official close of
trading), as reported by Bloomberg, or, if no dollar volume-weighted average
price is reported for such security by Bloomberg for such hours, the average of
the highest closing bid price and the lowest closing ask price of any of the
market makers for such security as reported in the "pink sheets" by the National
Quotation Bureau, Inc. If the Weighted Average Price cannot be calculated for
such security on such date on any of the foregoing bases, the Weighted Average
Price of such security on such date shall be the fair market value as mutually
determined by the Company and the holder of this Warrant. If the Company and the
holder of this Warrant are unable to agree upon the fair market value of the
Common Stock, then such dispute shall be resolved pursuant to Section 2(a)
below. All such determinations to be appropriately adjusted for any stock
dividend, stock split, stock combination or other similar transaction during any
period during which the Weighted Average Price is being determined.

      Section 2. Exercise of Warrant.

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            (a)   Subject to the terms and conditions hereof, this Warrant may
be exercised by the holder hereof then registered on the books of the Company,
in whole or in part, at any time on any Business Day on or after the opening of
business on the date hereof and prior to 11:59 P.M. New York Time on the
Expiration Date by (i) delivery of a written notice, in the form of the
subscription form attached as Exhibit A hereto (the "EXERCISE NOTICE"), of such
holder's election to exercise this Warrant, which notice shall specify the
number of Warrant Shares to be purchased, (ii) (A) payment to the Company of an
amount equal to the Warrant Exercise Price multiplied by the number of Warrant
Shares as to which this Warrant is being exercised (the "AGGREGATE EXERCISE
PRICE") by wire transfer of immediately available funds (or by check if the
Company has not provided the holder of this Warrant with wire transfer
instructions for such payment) or (B) by notifying the Company that this Warrant
is being exercised pursuant to a Cashless Exercise (as defined in Section 2(e)),
and (iii) if required by Section 2(f) or unless the Holder has previously
delivered this Warrant to the Company and it or a new replacement Warrant has
not yet been delivered to the Holder, the surrender to a common carrier for
overnight delivery to the Company as soon as practicable following such date,
this Warrant (or an indemnification undertaking with respect to this Warrant in
the case of its loss, theft or destruction); provided, that if such Warrant
Shares are to be issued in any name other than that of the registered holder of
this Warrant, such issuance shall be deemed a transfer and the provisions of
Section 7 shall be applicable. In the event of any exercise of the rights
represented by this Warrant in compliance with this Section 2(a), the Company
shall on the second (2nd) Business Day (the "WARRANT SHARE DELIVERY DATE")
following the date of its receipt of the later of the Exercise Notice, the
Aggregate Exercise Price (or notice of Cashless Exercise) and if required by
Section 2(f) (or unless the holder of this Warrant has previously delivered this
Warrant to the Company and it or a new replacement Warrant has not yet been
delivered to the holder), this Warrant (or an indemnification undertaking with
respect to this Warrant in the case of its loss, theft or destruction) (the
"EXERCISE DELIVERY DOCUMENTS"), (A) provided that the transfer agent is
participating in The Depository Trust Company ("DTC") Fast Automated Securities
Transfer Program and provided that the holder is eligible to receive shares
through DTC, credit such aggregate number of shares of Common Stock to which the
holder shall be entitled to the holder's or its designee's balance account with
DTC through its Deposit Withdrawal Agent Commission system or (B) issue and
deliver to the address specified in the Exercise Notice, a certificate,
registered in the name of the holder or its designee, for the number of shares
of Common Stock to which the holder shall be entitled. Upon the later of the
date of delivery of (x) the Exercise Notice and (y) the Aggregate Exercise Price
referred to in clause (ii)(A) above or notification to the Company of a Cashless
Exercise referred to in Section 2(e), the holder of this Warrant shall be deemed
for all purposes to have become the holder of record of the Warrant Shares with
respect to which this Warrant has been exercised (the date thereof being
referred to as the "DEEMED ISSUANCE DATE"), irrespective of the date of delivery
of this Warrant as required by clause (iii) above or the certificates evidencing
such Warrant Shares. In the case of a dispute as to the determination of the
Warrant Exercise Price, the Weighted Average Price of a security or the
arithmetic calculation of the number of Warrant Shares, the Company shall
promptly issue to the holder the number of shares of Common Stock that is not
disputed and shall submit the disputed determinations or arithmetic calculations
to the holder via facsimile within two (2) Business Days of receipt of the
holder's Exercise Notice. If the holder and the Company are unable to agree upon
the determination of the Warrant Exercise Price, the Weighted Average Price or
arithmetic calculation of the number of Warrant Shares within one

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(1) Business Day of such disputed determination or arithmetic calculation being
submitted to the holder, then the Company shall promptly submit via facsimile
(i) the disputed determination of the Warrant Exercise Price or the Weighted
Average Price to an independent, reputable investment banking firm agreed to by
the Company and the holder of this Warrant or (ii) the disputed arithmetic
calculation of the number of Warrant Shares to its independent, outside public
accountant. The Company shall direct the investment banking firm or the
accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the holder of the results no later than two (2)
Business Days after the date it receives the disputed determinations or
calculations. Such investment banking firm's or accountant's determination or
calculation, as the case may be, shall be deemed conclusive absent demonstrable
error.

            (b)   If this Warrant is submitted for exercise, as may be required
by Section 2(f), and unless the rights represented by this Warrant shall have
expired or shall have been fully exercised, the Company shall, as soon as
practicable and in no event later than four (4) Business Days after receipt of
this Warrant (the "WARRANT DELIVERY DATE") and at its own expense, issue a new
Warrant identical in all respects to this Warrant except it shall represent
rights to purchase the number of Warrant Shares purchasable immediately prior to
such exercise under this Warrant, less the number of Warrant Shares with respect
to which such Warrant is exercised (together with, in the case of a cashless
exercise, the number of Warrant Shares surrendered in lieu of payment of the
Exercise Price).

            (c)   No fractional shares of Common Stock are to be issued upon the
exercise of this Warrant, but rather the number of shares of Common Stock issued
upon exercise of this Warrant shall be rounded up or down to the nearest whole
number (with 0.5 rounded up).

            (d)   Subject to the last sentence of Section 6 of this Warrant, if
the Company shall fail for any reason or for no reason (x) to issue and deliver
to the holder of this Warrant within three (3) Business Days of receipt of the
Exercise Delivery Documents a certificate for the number of shares of Common
Stock to which the holder is entitled (taking into account the limitations on
the exercise of this Warrant set forth in the first paragraph of this Warrant)
or to credit the holder's balance account with DTC for such number of shares of
Common Stock to which the holder is entitled (taking into account the
limitations on the exercise of this Warrant set forth in the first paragraph of
this Warrant) upon the holder's exercise of this Warrant or (y) to issue and
deliver to the holder on the Warrant Delivery Date a new Warrant for the number
of shares of Common Stock to which such holder is entitled (taking into account
the limitations on the exercise of this Warrant set forth in the first paragraph
of this Warrant) pursuant to Section 2(b) hereof, if any, then the Company
shall, in addition to any other remedies under this Warrant or the Securities
Purchase Agreement or otherwise available to such holder, including any
indemnification under Section 8 of the Securities Purchase Agreement, pay as
additional damages in cash to such holder on each day after such third (3rd)
Business Day that such shares of Common Stock are not issued and delivered to
the holder, in the case of clause (x) above, or such fourth (4th) Business Day
that such Warrant is not delivered, in the case of clause (y) above, in an
amount equal to the sum of (i) in the case of the failure to deliver Common
Stock, 0.5% of the product of (A) the number of shares of Common Stock not
issued to the holder on or prior to the Warrant Share Delivery Date and (B) the
Weighted Average Price of the Common Stock on the Warrant Share Delivery Date,
and (ii) if the Company has failed to deliver a Warrant to the holder on or
prior to the Warrant Delivery Date, 0.5% of the product of (x) the

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number of shares of Common Stock issuable upon exercise of the Warrant as of the
Warrant Delivery Date, and (y) the Weighted Average Price of the Common Stock on
the Warrant Delivery Date; provided that in no event shall cash damages accrue
pursuant to this Section 2(d) during the period, if any, in which any Warrant
Shares are the subject of a bona fide dispute that is subject to and being
resolved pursuant to, and in compliance with the time periods and other
provisions of, the dispute resolution provisions of Section 2(a). Alternatively,
subject to the dispute resolution provisions of Section 2(a) or if the issuance
of such Warrant Shares is subject to limitation pursuant to Section 12, at the
election of the holder made in the holder's sole discretion, the Company shall
pay to the holder, in lieu of the additional damages referred to in the
preceding sentence (but in addition to all other available remedies that the
holder may pursue hereunder and under the Securities Purchase Agreement
(including indemnification pursuant to Section 8 thereof)), 110% of the amount
by which (A) the holder's total purchase price (including brokerage commissions,
if any) for shares of Common Stock purchased to make delivery in satisfaction of
a sale by such holder of the shares of Common Stock to which the holder is
entitled but has not received upon an exercise, exceeds (B) the net proceeds
received by the holder from the sale of the shares of Common Stock to which the
holder is entitled but has not received upon such exercise.

            (e)   If, despite the Company's obligations under the Securities
Purchase Agreement and the Registration Rights Agreement, the Warrant Shares to
be issued are not registered and available for resale pursuant to a registration
statement in accordance with the Registration Rights Agreement, including during
a Grace Period (as defined in the Registration Rights Agreement), then
notwithstanding anything contained herein to the contrary, the holder of this
Warrant may, at its election exercised in its sole discretion, exercise this
Warrant in whole or in part and, in lieu of making the cash payment otherwise
contemplated to be made to the Company upon such exercise in payment of the
Aggregate Exercise Price, elect instead to receive upon such exercise the "Net
Number" of shares of Common Stock determined according to the following formula
(a "CASHLESS EXERCISE"):

      Net Number = (A x B) - (A x C)
                   -----------------
                           B

            For purposes of the foregoing formula:

                  A= the total number of shares with respect to which
                  this Warrant is then being exercised;

                  B= the Weighted Average Price of the Common Stock on
                  the trading day immediately preceding the date of the
                  delivery of the Exercise Notice; and

                  C= the Warrant Exercise Price then in effect for the
                  applicable Warrant Shares at the time of such
                  exercise.

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            (f)   Book-Entry. Notwithstanding anything to the contrary set forth
herein, upon exercise of this Warrant in accordance with the terms hereof, the
holder of this Warrant shall not be required to physically surrender this
Warrant to the Company unless it is being exercised for all of the Warrant
Shares represented by the Warrant. The holder and the Company shall maintain
records showing the number of Warrant Shares exercised and issued and the dates
of such exercises or shall use such other method, reasonably satisfactory to the
holder and the Company, so as not to require physical surrender of this Warrant
upon each such exercise. In the event of any dispute or discrepancy, such
records of the Company establishing the number of Warrant Shares to which the
holder is entitled shall be controlling and determinative in the absence of
demonstrable error. Notwithstanding the foregoing, if this Warrant is exercised
as aforesaid, the holder may not transfer this Warrant unless the holder first
physically surrenders this Warrant to the Company, whereupon the Company will
forthwith issue and deliver upon the order of the holder a new Warrant of like
tenor, registered as the holder may request, representing in the aggregate the
remaining number of Warrant Shares represented by this Warrant. The holder and
any assignee, by acceptance of this Warrant, acknowledge and agree that, by
reason of the provisions of this paragraph, following exercise of any portion of
this Warrant, the number of Warrant Shares represented by this Warrant may be
less than the number stated on the face hereof. Each Warrant shall bear the
following legend:

            ANY TRANSFEREE OF THIS WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF
            THIS WARRANT, INCLUDING SECTION 2(f) HEREOF. THE SECURITIES
            REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE NUMBER SET FORTH ON
            THE FACE HEREOF PURSUANT TO SECTION 2(f) HEREOF.

      Section 3.  Covenants as to Common Stock. The Company hereby covenants and
agrees as follows:

            (a)   This Warrant is, and any Warrants issued in substitution for
or replacement of this Warrant will upon issuance be, duly authorized and
validly issued.

            (b)   All Warrant Shares that may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be validly issued, fully
paid and nonassessable and free from all taxes, liens and charges with respect
to the issue thereof.

            (c)   During the period within which the rights represented by this
Warrant may be exercised, the Company will at all times have authorized and
reserved at least 110% of the number of shares of Common Stock needed to provide
for the exercise of the rights then represented by this Warrant.

            (d)   The Company shall promptly secure the listing of the shares of
Common Stock issuable upon exercise of this Warrant on the Principal Market
(subject to official notice of issuance upon exercise of this Warrant) and each
other market or exchange on which the Common Stock is traded or listed and shall
maintain, so long as any other shares of Common

                                      -8-
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Stock shall be so traded or listed, such listing of all shares of Common Stock
from time to time issuable upon the exercise of this Warrant; and the Company
shall so list on the Principal Market and each other market or exchange on which
the Common Stock is traded or listed and shall maintain such listing of, any
other shares of capital stock of the Company issuable upon the exercise of this
Warrant if and so long as any shares of the same class shall be listed on the
Principal Market and each other market or exchange on which the Common Stock is
traded or listed.

            (e)   The Company will not, by amendment of its Articles of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed by it hereunder, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the
taking of all such action as may reasonably be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant
against impairment, consistent with the tenor and purpose of this Warrant.
Without limiting the generality of the foregoing, the Company (i) will not
increase the par value of any shares of Common Stock receivable upon the
exercise of this Warrant above $0.0001 per share, and (ii) will take all such
actions as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and nonassessable shares of Common Stock upon the
exercise of this Warrant.

            (f)   This Warrant will be binding upon any entity succeeding to the
Company by merger, consolidation or acquisition of all or substantially all of
the Company's assets.

      Section 4.  Taxes. The Company shall pay any and all taxes (excluding
income taxes, franchise taxes or other taxes levied on gross earnings, profits
or the like of the holder of this Warrant) that may be payable with respect to
the issuance and delivery of Warrant Shares upon exercise of this Warrant.

      Section 5.  Warrant Holder Not Deemed a Shareholder. No holder, as such,
of this Warrant shall be entitled to vote or receive dividends or be deemed the
holder of shares of the Company for any purpose (other than to the extent that
the holder is deemed to be a beneficial holder of shares under applicable
securities laws after taking into account the limitation set forth in the first
paragraph of this Warrant), nor shall anything contained in this Warrant be
construed to confer upon the holder hereof, as such, any of the rights of a
shareholder of the Company or any right to vote, give or withhold consent to any
corporate action (whether any reorganization, issue of stock, reclassification
of stock, consolidation, merger, conveyance or otherwise), receive notice of
meetings, receive dividends or subscription rights, or otherwise, prior to the
Deemed Issuance Date of the Warrant Shares that such holder is then entitled to
receive upon the due exercise of this Warrant. In addition, nothing contained in
this Warrant shall be construed as imposing any liabilities on such holder to
purchase any securities (upon exercise of this Warrant or otherwise) or as a
shareholder of the Company, whether such liabilities are asserted by the Company
or by creditors of the Company. Notwithstanding this Section 5, the Company will
provide the holder of this Warrant with copies of the same notices and other
information given to the shareholders of the Company generally,
contemporaneously with the giving thereof to the shareholders.

                                      -9-
<PAGE>

      Section 6.  Representations of Holder. The holder of this Warrant, by the
acceptance hereof, represents that it is acquiring this Warrant, and upon
exercise hereof (other than pursuant to a Cashless Exercise) will acquire the
Warrant Shares, for its own account and not with a view towards, or for resale
in connection with, the public sale or distribution of this Warrant or the
Warrant Shares, except pursuant to sales registered or exempted under the
Securities Act; provided, however, that by making the representations herein,
the holder does not agree to hold this Warrant or any of the Warrant Shares for
any minimum or other specific term and reserves the right to dispose of this
Warrant and the Warrant Shares at any time in accordance with or pursuant to a
registration statement or an exemption under the Securities Act. The holder of
this Warrant further represents, by acceptance hereof, that, as of this date,
such holder is an "accredited investor" as such term is defined in Rule
501(a)(3) of Regulation D promulgated by the Securities and Exchange Commission
under the Securities Act (an "ACCREDITED INVESTOR"). Each delivery of an
Exercise Notice, other than in connection with a Cashless Exercise, shall
constitute confirmation at such time by the holder of the representations
concerning the Warrant Shares set forth in the first two sentences of this
Section 6, unless contemporaneous with the delivery of such Exercise Notice, the
holder notifies the Company in writing that it is not making such
representations (a "REPRESENTATION NOTICE"). If the holder delivers a
Representation Notice in connection with an exercise, it shall be a condition to
such holder's exercise of this Warrant and the Company's obligations set forth
in Section 2 in connection with such exercise, that the Company receive such
other representations as the Company considers reasonably necessary to assure
the Company that the issuance of its securities upon exercise of this Warrant
shall not violate any United States or state securities laws, and the time
periods for the Company's compliance with its obligations set forth in Section 2
shall be tolled until such holder provides the Company with such other
representations.

      Section 7. Ownership and Transfer.

            (a)   The Company shall maintain at its principal executive offices
(or such other office or agency of the Company as it may designate by notice to
the holder hereof), a register for this Warrant, in which the Company shall
record the name and address of the person in whose name this Warrant has been
issued, as well as the name and address of each transferee. The Company may
treat the person in whose name any Warrant is registered on the register as the
owner and holder thereof for all purposes, notwithstanding any notice to the
contrary, but in all events recognizing any transfers made in accordance with
the terms of this Warrant.

            (b)   This Warrant and the rights granted hereunder shall be
assignable by the holder hereof without the consent of the Company.

            (c)   The Company is obligated to register the Warrant Shares for
resale under the Securities Act pursuant to the Registration Rights Agreement,
and the initial holder of this Warrant (and assignees thereof) is entitled to
the registration rights in respect of the Warrant Shares as set forth in the
Registration Rights Agreement.

      Section 8.  Adjustment of Warrant Exercise Price and Number of Warrant
Shares. The Warrant Exercise Price and the number of shares of Common Stock
issuable upon exercise of this Warrant shall be adjusted from time to time as
follows:

                                      -10-
<PAGE>

      [<115% WARRANTS> (a)) ADJUSTMENT OF WARRANT EXERCISE PRICE AND NUMBER OF
SHARES UPON ISSUANCE OF COMMON STOCK. IF AND WHENEVER ON OR AFTER THE WARRANT
DATE, THE COMPANY ISSUES OR SELLS, OR IS DEEMED TO HAVE ISSUED OR SOLD, ANY
SHARES OF COMMON STOCK (INCLUDING THE ISSUANCE OR SALE OF SHARES OF COMMON STOCK
OWNED OR HELD BY OR FOR THE ACCOUNT OF THE COMPANY, BUT EXCLUDING EXEMPTED
ISSUANCES (AS DEFINED BELOW)), FOR A CONSIDERATION PER SHARE LESS THAN A PRICE
EQUAL TO THE WARRANT EXERCISE PRICE IN EFFECT IMMEDIATELY PRIOR TO SUCH ISSUANCE
OR SALE (THE "APPLICABLE PRICE"), THEN IMMEDIATELY AFTER SUCH ISSUE OR SALE THE
WARRANT EXERCISE PRICE THEN IN EFFECT SHALL BE REDUCED TO AN AMOUNT EQUAL TO
SUCH CONSIDERATION PER SHARE. UPON EACH SUCH ADJUSTMENT OF THE WARRANT EXERCISE
PRICE PURSUANT TO THE IMMEDIATELY PRECEDING SENTENCE, THE NUMBER OF SHARES OF
COMMON STOCK ACQUIRABLE UPON EXERCISE OF THIS WARRANT SHALL BE ADJUSTED TO THE
NUMBER OF SHARES DETERMINED BY MULTIPLYING THE WARRANT EXERCISE PRICE IN EFFECT
IMMEDIATELY PRIOR TO SUCH ADJUSTMENT BY THE NUMBER OF SHARES OF COMMON STOCK
ACQUIRABLE UPON EXERCISE OF THIS WARRANT IMMEDIATELY PRIOR TO SUCH ADJUSTMENT
AND DIVIDING THE PRODUCT THEREOF BY THE WARRANT EXERCISE PRICE RESULTING FROM
SUCH ADJUSTMENT. FOR PURPOSES OF THIS WARRANT, "EXEMPTED ISSUANCES" SHALL MEAN:
(I) SHARES OF COMMON STOCK ISSUED OR DEEMED TO BE ISSUED BY THE COMPANY PURSUANT
TO AN APPROVED STOCK PLAN, PROVIDED THAT THE NUMBER OF SUCH SHARES ISSUED OR
DEEMED TO BE ISSUED (x) IN 2005 DOES NOT EXCEED 4.5% OF THE NUMBER OF
OUTSTANDING SHARES OF COMMON STOCK AS OF DECEMBER 31, 2004 AND (y) IN ANY
SUBSEQUENT CALENDAR YEAR DOES NOT EXCEED 3.5% OF THE NUMBER OF OUTSTANDING
SHARES OF COMMON STOCK AS OF THE END OF THE IMMEDIATELY PRECEDING YEAR; (II)
SHARES OF COMMON STOCK ISSUED OR DEEMED TO BE ISSUED BY THE COMPANY UPON THE
CONVERSION, EXCHANGE OR EXERCISE OF ANY RIGHT, OPTION, OBLIGATION OR SECURITY
OUTSTANDING ON THE DATE PRIOR TO THE DATE OF THE SECURITIES PURCHASE AGREEMENT
AND SET FORTH IN SCHEDULE 3(c) TO THE SECURITIES PURCHASE AGREEMENT, PROVIDED
THAT THE TERMS OF SUCH OPTION, OBLIGATION OR SECURITY ARE NOT AMENDED OR
OTHERWISE MODIFIED ON OR AFTER THE DATE OF THE SECURITIES PURCHASE AGREEMENT; OR
(III) SHARES OF COMMON STOCK ISSUED OR DEEMED TO BE ISSUED BY THE COMPANY UPON
CONVERSION OF THE NOTES OR EXERCISE OF THE SPA WARRANTS.]

      [<140% WARRANTS> (a) ADJUSTMENT OF WARRANT EXERCISE PRICE AND NUMBER OF
SHARES UPON ISSUANCE OF COMMON STOCK. IF AND WHENEVER ON OR AFTER THE WARRANT
DATE, THE COMPANY ISSUES OR SELLS, OR IS DEEMED TO HAVE ISSUED OR SOLD, ANY
SHARES OF COMMON STOCK (INCLUDING THE ISSUANCE OR SALE OF SHARES OF COMMON STOCK
OWNED OR HELD BY OR FOR THE ACCOUNT OF THE COMPANY, BUT EXCLUDING EXEMPTED
ISSUANCES (AS DEFINED BELOW)), FOR A CONSIDERATION PER SHARE LESS THAN A PRICE
(A) EQUAL TO THE WARRANT EXERCISE PRICE IN EFFECT IMMEDIATELY PRIOR TO SUCH
ISSUANCE OR SALE (THE "APPLICABLE PRICE") BUT GREATER THAN OR EQUAL TO [INSERT
115% OF THE ARITHMETIC AVERAGE OF THE WEIGHTED AVERAGE PRICE OF THE COMMON STOCK
ON EACH OF THE FIVE CONSECUTIVE TRADING DAYS IMMEDIATELY PRECEDING THE WARRANT
DATE] (SUBJECT TO ADJUSTMENT FOR STOCK SPLITS, STOCK DIVIDENDS, STOCK
COMBINATIONS AND OTHER SIMILAR TRANSACTIONS OCCURRING AFTER THE WARRANT DATE),
THEN IMMEDIATELY AFTER SUCH ISSUE OR SALE THE WARRANT EXERCISE PRICE THEN IN
EFFECT SHALL BE REDUCED TO AN AMOUNT EQUAL TO THE PRODUCT OF (x) THE APPLICABLE
PRICE AND (y) THE QUOTIENT DETERMINED BY DIVIDING (1) THE SUM OF (I) THE PRODUCT
DERIVED BY MULTIPLYING THE APPLICABLE PRICE BY THE NUMBER OF SHARES OF COMMON
STOCK DEEMED OUTSTANDING IMMEDIATELY PRIOR TO SUCH ISSUE OR SALE, PLUS (II) THE
CONSIDERATION, IF ANY, RECEIVED BY THE COMPANY UPON SUCH ISSUE OR SALE, BY (2)
THE PRODUCT DERIVED BY MULTIPLYING THE (I) APPLICABLE PRICE BY (II) THE NUMBER
OF SHARES OF COMMON STOCK DEEMED OUTSTANDING IMMEDIATELY AFTER SUCH ISSUE OR
SALE OR (B) EQUAL TO

                                      -11-
<PAGE>

THE LESSER OF THE APPLICABLE PRICE AND [INSERT 115% OF THE ARITHMETIC AVERAGE OF
THE WEIGHTED AVERAGE PRICE OF THE COMMON STOCK ON EACH OF THE FIVE CONSECUTIVE
TRADING DAYS IMMEDIATELY PRECEDING THE WARRANT DATE] (SUBJECT TO ADJUSTMENT FOR
STOCK SPLITS, STOCK DIVIDENDS, STOCK COMBINATIONS AND OTHER SIMILAR TRANSACTIONS
OCCURRING AFTER THE WARRANT DATE), THEN IMMEDIATELY AFTER SUCH ISSUE OR SALE THE
WARRANT EXERCISE PRICE THEN IN EFFECT SHALL BE REDUCED TO AN AMOUNT EQUAL TO
SUCH CONSIDERATION PER SHARE. UPON EACH SUCH ADJUSTMENT OF THE WARRANT EXERCISE
PRICE PURSUANT TO THE IMMEDIATELY PRECEDING SENTENCE, THE NUMBER OF SHARES OF
COMMON STOCK ACQUIRABLE UPON EXERCISE OF THIS WARRANT SHALL BE ADJUSTED TO THE
NUMBER OF SHARES DETERMINED BY MULTIPLYING THE WARRANT EXERCISE PRICE IN EFFECT
IMMEDIATELY PRIOR TO SUCH ADJUSTMENT BY THE NUMBER OF SHARES OF COMMON STOCK
ACQUIRABLE UPON EXERCISE OF THIS WARRANT IMMEDIATELY PRIOR TO SUCH ADJUSTMENT
AND DIVIDING THE PRODUCT THEREOF BY THE WARRANT EXERCISE PRICE RESULTING FROM
SUCH ADJUSTMENT. FOR PURPOSES OF THIS WARRANT, "EXEMPTED ISSUANCES" SHALL MEAN:
(I) SHARES OF COMMON STOCK ISSUED OR DEEMED TO BE ISSUED BY THE COMPANY PURSUANT
TO AN APPROVED STOCK PLAN, PROVIDED THAT THE NUMBER OF SUCH SHARES ISSUED OR
DEEMED TO BE ISSUED (x) IN 2005 DOES NOT EXCEED 4.5% OF THE NUMBER OF
OUTSTANDING SHARES OF COMMON STOCK AS OF DECEMBER 31, 2004 AND (y) IN ANY
SUBSEQUENT CALENDAR YEAR DOES NOT EXCEED 3.5% OF THE NUMBER OF OUTSTANDING
SHARES OF COMMON STOCK AS OF THE END OF THE IMMEDIATELY PRECEDING YEAR; (II)
SHARES OF COMMON STOCK ISSUED OR DEEMED TO BE ISSUED BY THE COMPANY UPON THE
CONVERSION, EXCHANGE OR EXERCISE OF ANY RIGHT, OPTION, OBLIGATION OR SECURITY
OUTSTANDING ON THE DATE PRIOR TO THE DATE OF THE SECURITIES PURCHASE AGREEMENT
AND SET FORTH IN SCHEDULE 3(c) TO THE SECURITIES PURCHASE AGREEMENT, PROVIDED
THAT THE TERMS OF SUCH OPTION, OBLIGATION OR SECURITY ARE NOT AMENDED OR
OTHERWISE MODIFIED ON OR AFTER THE DATE OF THE SECURITIES PURCHASE AGREEMENT; OR
(III) SHARES OF COMMON STOCK ISSUED OR DEEMED TO BE ISSUED BY THE COMPANY UPON
CONVERSION OF THE NOTES OR EXERCISE OF THE SPA WARRANTS.]

            (b)   Effect on Warrant Exercise Price of Certain Events. For
purposes of determining the adjusted Warrant Exercise Price under Section 8(a)
above, the following shall be applicable to issuances other than Exempted
Issuances:

                  (i)   Issuance of Options. If the Company in any manner grants
or sells any Options and the lowest price per share for which one share of
Common Stock is issuable upon the exercise of any such Option or upon
conversion, exchange or exercise of any Convertible Securities issuable upon
exercise of any such Option is less than the Applicable Price, then such share
of Common Stock shall be deemed to be outstanding and to have been issued and
sold by the Company at the time of the granting or sale of such Option for such
price per share. For purposes of this Section 8(b)(i), the "lowest price per
share for which one share of Common Stock is issuable upon exercise of any such
Option or upon conversion, exchange or exercise of any Convertible Security
issuable upon exercise of any such Option" shall be equal to the sum of the
lowest amounts of consideration (if any) received or receivable by the Company
with respect to any one share of Common Stock upon the granting or sale of such
Option, upon exercise of such Option and upon conversion, exchange or exercise
of any Convertible Security issuable upon exercise of such Option. No further
adjustment of the Warrant Exercise Price shall be made upon the actual issuance
of such Common Stock or of such Convertible Security upon the exercise of such
Option or upon the actual issuance of such Common Stock upon conversion,
exchange or exercise of such Convertible Security.

                                      -12-
<PAGE>

                  (ii)  Issuance of Convertible Securities. If the Company in
any manner issues or sells any Convertible Securities and the lowest price per
share for which one share of Common Stock is issuable upon the conversion,
exchange or exercise thereof is less than the Applicable Price, then such share
of Common Stock shall be deemed to be outstanding and to have been issued and
sold by the Company at the time of the issuance or sale of such Convertible
Securities for such price per share. For the purposes of this Section 8(b)(ii),
the "lowest price per share for which one share of Common Stock is issuable upon
such conversion, exchange or exercise" shall be equal to the sum of the lowest
amounts of consideration (if any) received or receivable by the Company with
respect to one share of Common Stock upon the issuance or sale of any such
Convertible Security and upon conversion, exchange or exercise of such
Convertible Security. No further adjustment of the Warrant Exercise Price shall
be made upon the actual issuance of such Common Stock upon conversion, exchange
or exercise of such Convertible Security, and if any such issue or sale of such
Convertible Security is made upon exercise of any Option for which adjustment of
the Warrant Exercise Price had been or are to be made pursuant to other
provisions of this Section 8(b), no further adjustment of the Warrant Exercise
Price shall be made by reason of such issue or sale.

                  (iii) Change in Option Price or Rate of Conversion. If the
purchase, exchange or exercise price provided for in any Options, the additional
consideration, if any, payable upon the issue, conversion, exchange or exercise
of any Convertible Securities, or the rate at which any Options or Convertible
Securities are convertible into or exchangeable or exercisable for Common Stock
changes at any time, the Warrant Exercise Price in effect at the time of such
change shall be adjusted to the Warrant Exercise Price that would have been in
effect at such time had such Options or Convertible Securities provided for such
changed purchase, exchange or exercise price, additional consideration or
changed conversion rate, as the case may be, at the time initially granted,
issued or sold and the number of shares of Common Stock acquirable hereunder
shall be correspondingly readjusted. For purposes of this Section 8(b)(iii), if
the terms of any Option or Convertible Security that was outstanding as of the
date of issuance of this Warrant are changed in the manner described in the
immediately preceding sentence, then such Option or Convertible Security and the
Common Stock deemed issuable upon exercise, conversion or exchange thereof shall
be deemed to have been issued as of the date of such change. No adjustment shall
be made if such adjustment would result in an increase of the Warrant Exercise
Price then in effect.

            (b)   Effect on Warrant Exercise Price of Certain Events. For
purposes of determining the adjusted Warrant Exercise Price under Sections 8(a)
and 8(b), the following shall be applicable:

                  (i)   Calculation of Consideration Received. In case any
Options are issued in connection with the issue or sale of other securities of
the Company, together comprising one integrated transaction or series of related
transactions, (A) the Options will be deemed to have been issued for a
consideration equal to the greater of $0.01 and the specific aggregate
consideration, if any, allocated to such Options (in either case, the "OPTION
CONSIDERATION") and, for purposes of applying the provisions of this Section 8,
the Option Consideration shall be allocated pro rata among all the shares of
Common Stock issuable upon exercise of such Options to determine the
consideration per each such share of Common Stock and (B) the other securities
will be deemed to have been issued for an aggregate consideration

                                      -13-
<PAGE>

equal to the aggregate consideration received by the Company for the Options and
other securities (determined as provided below with respect to each share of
Common Stock represented thereby), less the sum of (1) the Black-Scholes Value
(as defined below) of such Options and (2) the Option Consideration. If any
Common Stock, Options or Convertible Securities are issued or sold or deemed to
have been issued or sold for cash, the consideration received therefor will be
deemed to be the net amount received by the Company therefor. If any Common
Stock, Options or Convertible Securities are issued or sold for a consideration
other than cash, the amount of such consideration received by the Company will
be the fair value of such consideration, except where such consideration
consists of marketable securities, in which case the amount of consideration
received by the Company will be the Weighted Average Price of such securities on
the date of receipt of such securities. If any Common Stock, Options or
Convertible Securities are issued to the owners of the non-surviving entity in
connection with any merger in which the Company is the surviving entity, the
amount of consideration therefor will be deemed to be the fair value of such
portion of the net assets and business of the non-surviving entity as is
attributable to such Common Stock, Options or Convertible Securities, as the
case may be. The fair value of any consideration other than cash or securities
will be determined jointly by the Company and the holder of this Warrant. If
such parties are unable to reach agreement within ten (10) days after the
occurrence of an event requiring valuation (the "VALUATION EVENT"), the fair
value of such consideration will be determined within five (5) Business Days
after the tenth (10th) day following the Valuation Event by an independent,
reputable appraiser jointly selected by the Company and the holder of this
Warrant. The determination of such appraiser shall be final and binding upon all
parties absent demonstrable error, and the fees and expenses of such appraiser
shall be borne by the Company.

                  (ii)  Record Date. If the Company takes a record of the
holders of Common Stock for the purpose of entitling them (1) to receive a
dividend or other distribution payable in Common Stock, Options or in
Convertible Securities or (2) to subscribe for or purchase Common Stock, Options
or Convertible Securities, then such record date will be deemed to be the date
of the issue or sale of the shares of Common Stock deemed to have been issued or
sold upon the declaration of such dividend or the making of such other
distribution or the date of the granting of such right of subscription or
purchase, as the case may be.

                  (iii) Black-Scholes Value. The "BLACK-SCHOLES VALUE" of any
Options shall mean the sum of the amounts resulting from applying the
Black-Scholes pricing model to each such Option, which calculation is made with
the following inputs: (i) the "option striking price" being equal to the lowest
exercise price possible under the terms of such Option on the date of the
issuance of such Option (the "VALUATION DATE"), (ii) the "interest rate" being
equal to the interest rate on one-year United States Treasury Bills issued most
recently prior to the Valuation Date, (iii) the "time until option expiration"
being the time from the Valuation Date until the expiration date of such Option,
(iv) the "current stock price" being equal to the Weighted Average Price of the
Common Stock on the Valuation Date, (v) the "volatility" being the 100-day
historical volatility of the Common Stock as of the Valuation Date (as reported
by the Bloomberg "HVT" screen), and (vi) the "dividend rate" being equal to
zero. Within three (3) Business Days after the Company Valuation Date, each of
the Company and the holder of this Warrant shall deliver to the other a written
calculation of its determination of the Black-Scholes value of the Options. If
the holder and the Company are unable to agree upon the calculation of the
Black-Scholes Value of the Options within five (5) Business Days of the
Valuation Date,

                                      -14-
<PAGE>

then the Company shall submit via facsimile the disputed calculation to an
investment banking firm (jointly selected by the Company and the holder of this
Warrant) within seven (7) Business Days of the Valuation Date. The Company shall
direct such investment banking firm to perform the calculations and notify the
Company and the holder of the results no later than ten (10) Business Days after
the Valuation Date. Such investment banking firm's calculation of the
Black-Scholes Value of the Options shall be deemed conclusive absent
demonstrable error. The Company shall bear the fees and expenses of such
investment banking firm for providing such calculation.

            (c)   Adjustment of Warrant Exercise Price upon Subdivision or
Combination of Common Stock. If the Company at any time after the date of
issuance of this Warrant subdivides (by any stock split, stock dividend,
recapitalization or otherwise) its outstanding shares of Common Stock into a
greater number of shares, the Warrant Exercise Price in effect immediately prior
to such subdivision will be proportionately reduced and the number of shares of
Common Stock obtainable upon exercise of this Warrant will be proportionately
increased. If the Company at any time after the date of issuance of this Warrant
combines (by combination, reverse stock split or otherwise) its outstanding
shares of Common Stock into a smaller number of shares, the Warrant Exercise
Price in effect immediately prior to such combination will be proportionately
increased and the number of shares of Common Stock obtainable upon exercise of
this Warrant will be proportionately decreased. Any adjustment under this
Section 8(d) shall become effective at the close of business on the date the
subdivision or combination becomes effective

            (d)   Distribution of Assets. If the Company shall declare or make
any dividend or other distribution of its assets (or rights to acquire its
assets) to holders of Common Stock, by way of return of capital or otherwise
(including any distribution of cash, stock or other securities, property or
options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a "DISTRIBUTION"), at any time
after the issuance of this Warrant, then, in each such case:

                  (i)   the Warrant Exercise Price in effect immediately prior
to the close of business on the record date fixed for the determination of
holders of Common Stock entitled to receive the Distribution shall be reduced,
effective as of the close of business on such record date, to a price determined
by multiplying such Warrant Exercise Price by a fraction of which (A) the
numerator shall be the Weighted Average Price of the Common Stock on the trading
day immediately preceding such record date minus the value of the Distribution
(as determined in good faith by the Company's Board of Directors) applicable to
one share of Common Stock, and (B) the denominator shall be the Weighted Average
Price of the Common Stock on the trading day immediately preceding such record
date; and

                  (ii)  either (A) the number of Warrant Shares obtainable upon
exercise of this Warrant shall be increased to a number of shares equal to the
number of shares of Common Stock obtainable immediately prior to the close of
business on the record date fixed for the determination of holders of Common
Stock entitled to receive the Distribution multiplied by the reciprocal of the
fraction set forth in the immediately preceding clause (i), or (B) in the event
that the Distribution is of common stock of a company whose common stock is
traded on a national securities exchange or a national automated quotation
system, then the holder of this

                                      -15-
<PAGE>

Warrant shall receive an additional warrant, the terms of which shall be
identical to those of this Warrant, except that such warrant shall be
exercisable for the amount of the assets that would have been payable to the
holder of this Warrant pursuant to the Distribution had the holder exercised
this Warrant immediately prior to such record date and with an exercise price
equal to the amount by which the exercise price of this Warrant was decreased
with respect to the Distribution pursuant to the terms of the immediately
preceding clause (i).

            (e)   Certain Events. If any event occurs of the type contemplated
by the provisions of this Section 8 but not expressly provided for by such
provisions (including the granting of stock appreciation rights, phantom stock
rights or other rights with equity features), then the Company's Board of
Directors will make an appropriate adjustment in the Warrant Exercise Price and
the number of shares of Common Stock obtainable upon exercise of this Warrant so
as to protect the rights of the holders of the SPA Warrants; provided that no
such adjustment will increase the Warrant Exercise Price or decrease the number
of shares of Common Stock obtainable as otherwise determined pursuant to this
Section 8.

            (f)   Notices.

                  (i)   Within four (4) Business Days of any adjustment of the
Warrant Exercise Price, the Company will give written notice thereof to the
holder of this Warrant, setting forth in reasonable detail, and certifying, the
calculation of such adjustment.

                  (ii)  The Company will give written notice to the holder of
this Warrant at least ten (10) days prior to the date on which the Company
closes its books or takes a record (A) with respect to any dividend or
distribution upon the Common Stock, (B) with respect to any pro rata
subscription offer to holders of Common Stock or (C) for determining rights to
vote with respect to any Organic Change (as defined in Section 9(b)),
dissolution or liquidation, provided that such information shall be made known
to the public prior to or in conjunction with such notice being provided to such
holder.

                  (iii) The Company will also give written notice to the holder
of this Warrant at least ten (10) days prior to the date on which any Organic
Change, dissolution or liquidation will take place, provided that such
information shall be made known to the public prior to or in conjunction with
such notice being provided to such holder.

      Section 9.  Purchase Rights; Reorganization, Reclassification,
Consolidation, Merger or Sale. (a) In addition to any adjustments pursuant to
Section 8 above, if at any time the Company grants, issues or sells any Options,
Convertible Securities or rights to purchase stock, warrants, securities or
other property pro rata to the record holders of any class of its capital stock
(the "PURCHASE RIGHTS"), then the holder of this Warrant will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate
Purchase Rights that such holder could have acquired if such holder had held the
number of shares of Common Stock acquirable upon complete exercise of this
Warrant immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of Common Stock are to be determined for the
grant, issue or sale of such Purchase Rights.

                                      -16-
<PAGE>

                  (b)   Any recapitalization, reorganization, reclassification,
consolidation, merger, sale of all or substantially all of the Company's assets
to another Person or other transaction that is effected in such a way that
holders of Common Stock are entitled to receive (either directly or upon
subsequent liquidation) stock, securities or assets with respect to or in
exchange for Common Stock is referred to herein as an "ORGANIC CHANGE." Prior to
the consummation of any (i) sale of all or substantially all of the Company's
assets to an acquiring Person or (ii) other Organic Change following which the
Company is not a surviving entity, the Company will secure from the Person
purchasing such assets or the successor resulting from such Organic Change (in
each case, the "ACQUIRING ENTITY") a written agreement (in form and substance
satisfactory to the holders of SPA Warrants representing at least two-thirds
(2/3) of the shares of Common Stock obtainable upon exercise of the SPA Warrants
then outstanding) to deliver to each holder of SPA Warrants in exchange for each
such SPA Warrant, a security of the Acquiring Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant and
satisfactory to the holders of such SPA Warrant (including, an adjusted warrant
exercise price equal to the value for the Common Stock reflected by the terms of
such consolidation, merger or sale, and exercisable for a corresponding number
of shares of Common Stock acquirable and receivable upon exercise of such SPA
Warrant (without regard to any limitations on exercises), if the value so
reflected is less than the Warrant Exercise Price in effect immediately prior to
such consolidation, merger or sale). Prior to the consummation of any other
Organic Change, the Company shall make appropriate provision (in form and
substance satisfactory to the holders of such SPA Warrants representing at least
two-thirds (2/3) of the shares of Common Stock obtainable upon exercise of the
SPA Warrants then outstanding) to ensure that each of the holders of the SPA
Warrants will thereafter have the right to acquire and receive in lieu of or in
addition to (as the case may be) the shares of Common Stock immediately
theretofore acquirable and receivable upon the exercise of such holder's SPA
Warrants (without regard to any limitations on exercises), such shares of stock,
securities or assets that would have been issued or payable in such Organic
Change with respect to or in exchange for the number of shares of Common Stock
that would have been acquirable and receivable upon the exercise of such
holder's Warrant as of the date of such Organic Change (without taking into
account any limitations or restrictions on the exerciseability of this Warrant).

      Section 10. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant
is lost, stolen, mutilated or destroyed, the Company shall promptly, on receipt
of an indemnification undertaking by the holder (or in the case of a mutilated
Warrant, the Warrant), issue a new Warrant of like denomination and tenor as
this Warrant so lost, stolen, mutilated or destroyed.

      Section 11. Notice. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Warrant must be in
writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) Business Day after deposit
with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

                                      -17-
<PAGE>

            If to the Company:

                  Infinity, Inc.
                  1401 West Main Street, Suite C
                  Chanute, Kansas 66720
                  Telephone:       620-431-6200
                  Facsimile:       620-431-6262
                  Attention:       Chief Executive Officer

            and

                  Infinity, Inc.
                  950 17th Street
                  Suite 800
                  Denver, Colorado 80202
                  Telephone:       720-932-7800
                  Facsimile:       720-932-5409
                  Attention:       Senior Vice President

            With copy to:

                  Davis Graham & Stubbs, LLP
                  1550 Seventeenth Street, Suite 500
                  Denver, Colorado  80202
                  Telephone:       303-892-9400
                  Facsimile:       303-893-1379
                  Attention:       Deborah Friedman, Esq.

If to a holder of this Warrant, to it at the address and facsimile number set
forth on the Schedule of Buyers to the Securities Purchase Agreement, with
copies to such holder's representatives as set forth on such Schedule of Buyers,
or, in the case of the holder or any other Person named above, at such other
address and/or facsimile number and/or to the attention of such other person as
the recipient party has specified by written notice to the other party at least
five (5) days prior to the effectiveness of such change. Written confirmation of
receipt (A) given by the recipient of such notice, consent, waiver or other
communication, (B) mechanically or electronically generated by the sender's
facsimile machine containing the time, date, recipient facsimile number and an
image of the first page of such transmission or (C) provided by a nationally
recognized overnight delivery service shall be rebuttable evidence of personal
service, receipt by facsimile or deposit with a nationally recognized overnight
delivery service in accordance with clause (i), (ii) or (iii) above,
respectively.

      Section 12. Limitation on Number of Warrant Shares. The Company shall not
be obligated to issue any Warrant Shares upon exercise of the SPA Warrants if
the issuance of such shares of Common Stock would exceed that number of Warrant
Shares which the Company may issue upon exercise of the SPA Warrants (the
"EXCHANGE CAP") without breaching the Company's obligations under the rules or
regulations of the Principal Market, except that such

                                      -18-
<PAGE>

limitation shall not apply in the event that the Company obtains a written
opinion from outside counsel to the Company that approval of the Company's
shareholders is not required under the applicable rules of the Principal Market,
which opinion shall be reasonably satisfactory to the holders representing at
least two-thirds (2/3) of the Warrant Shares then issuable upon exercise of
outstanding SPA Warrants. Until Shareholder Approval (as defined in the
Securities Purchase Agreement) or such written opinion is obtained, no holder of
SPA Warrants shall be issued, upon exercise of the SPA Warrants, Warrant Shares
in an amount greater than such holder's Cap Allocation Amount (as defined in the
Notes). In the event that any holder of SPA Warrants shall sell or otherwise
transfer any of such SPA Warrants, the transferee shall be allocated a pro rata
portion of such holder's Cap Allocation Amount. In the event that, after the
Initial Closing Date (as defined in the Securities Purchase Agreement), any
holder of the SPA Warrants shall convert all of such holder's Notes and exercise
all of such holder's SPA Warrants into a number of shares of Common Stock which,
in the aggregate, is less than such holder's Cap Allocation Amount, then the
difference between such holder's Cap Allocation Amount and the number of Warrant
Shares and Conversion Shares (as defined in the Securities Purchase Agreement)
actually issued to such holder shall be allocated to the respective Cap
Allocation Amounts of the remaining holders of SPA Warrants and Notes on a pro
rata basis in proportion to the Warrant Shares and Conversion Shares issuable
upon exercise and conversion of the SPA Warrants and the Notes, respectively,
then held by each such holder. In the event that upon the delivery of an
Exercise Notice the Company is prohibited from issuing Warrant Shares as a
result of the operation of this Section 12, the Company shall repurchase for
cash, within five (5) Business Days, the portion of this Warrant with respect to
which Warrant Shares cannot be issued as result of this Section 12, at a price
per Warrant Share equal to the difference between the Weighted Average Price of
the Common Stock and the Warrant Exercise Price of such Warrant Shares as of the
date of the attempted exercise.

      Section 13. Date. The date of this Warrant is [INSERT: DATE OF APPLICABLE
CLOSING] (the "WARRANT DATE"). This Warrant, in all events, shall be wholly void
and of no effect after 11:59 P.M., New York Time, on the Expiration Date, except
that notwithstanding any other provisions hereof, the provisions of Section 7
shall continue in full force and effect after such date as to any Warrant Shares
or other securities issued upon the exercise of this Warrant.

      Section 14. Amendment and Waiver. Except as otherwise provided herein, the
provisions of the SPA Warrants may be amended and the Company may take any
action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the Company has obtained the written consent of the
holders of SPA Warrants representing at least two-thirds (2/3) of the shares of
Common Stock obtainable upon exercise of the SPA Warrants then outstanding;
provided that no such action may increase the Warrant Exercise Price of any SPA
Warrant or decrease the number of shares or change the class of stock obtainable
upon exercise of any SPA Warrant without the written consent of the holder of
such SPA Warrant.

      Section 15. Descriptive Headings; Governing Law. The descriptive headings
of the several sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. All questions
concerning the construction, validity, enforcement and interpretation of this
Warrant 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

                                      -19-
<PAGE>

(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.

      Section 16. Rules of Construction. Unless the context otherwise requires,
(a) all references to Sections, Schedules or Exhibits are to Sections, Schedules
or Exhibits contained in or attached to this Warrant, (b) each accounting term
not otherwise defined in this Warrant has the meaning assigned to it in
accordance with GAAP, (c) 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 (d) the use of the
word "including" in this Warrant shall be by way of example rather than
limitation.

      * * * * * *

                                      -20-
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed as
of the ____ day of _________, 200_.

                                             INFINITY, INC.

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

                                      -21-
<PAGE>
                              EXHIBIT A TO WARRANT

                                 EXERCISE NOTICE

        TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

                                 INFINITY, INC.

      The undersigned holder hereby exercises the right to purchase
_________________ of the shares of Common Stock ("WARRANT SHARES") of Infinity,
Inc., a Colorado corporation (the "COMPANY"), evidenced by the attached Warrant
(the "WARRANT"). Capitalized terms used herein and not otherwise defined shall
have the respective meanings set forth in the Warrant.

      1. Form of Warrant Exercise Price. The holder intends that payment of the
Warrant Exercise Price shall be made as:

            ____________      a "CASH EXERCISE" with respect to ________________
                              Warrant Shares; and/or

            ____________      a "CASHLESS EXERCISE" with respect to ____________
                              Warrant Shares (to the extent permitted by the
                              terms of the Warrant).

      2. Payment of Warrant Exercise Price. In the event that the holder has
elected a Cash Exercise with respect to some or all of the Warrant Shares to be
issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the
sum of $___________________ to the Company in accordance with the terms of the
Warrant.

      3. Delivery of Warrant Shares. The Company shall deliver __________
Warrant Shares in accordance with the terms of the Warrant in the following name
and to the following address:

Issue to:______________________________________________________________

      Facsimile Number:_________________________________________________________

      DTC Participant Number and Name (if electronic book entry transfer):______

      Account Number (if electronic book entry transfer):_______________________

Date: _______________ __, ______

      Name of Registered Holder

By:____________________________
Name:
Title:

                                      -22-
<PAGE>

                                 ACKNOWLEDGMENT

      The Company hereby acknowledges this Exercise Notice and hereby directs
[TRANSFER AGENT] to issue the above indicated number of shares of Common Stock
in accordance with the Transfer Agent Instructions dated ________________, 200_
from the Company and acknowledged and agreed to by [TRANSFER AGENT].

                                               INFINITY, INC.

                                               By:______________________________
                                               Name:____________________________
                                               Title____________________________

                                      -23-
<PAGE>

                              EXHIBIT B TO WARRANT

                              FORM OF WARRANT POWER

FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to
________________, Federal Identification No. __________, a warrant to purchase
____________ shares of the capital stock of Infinity, Inc., a Colorado
corporation, represented by warrant certificate no. _____, standing in the name
of the undersigned on the books of said corporation. The undersigned does hereby
irrevocably constitute and appoint ______________, attorney to transfer the
warrants of said corporation, with full power of substitution in the premises.

Dated:  _________, 200_

                                               _________________________________

                                               Name:____________________________
                                               Title:___________________________

                                      -24-<PAGE>

                                                                     EXHIBIT 4.6

                                                                       EXHIBIT E

                           FORM OF SECURITY AGREEMENT

         THIS SECURITY AGREEMENT ("Agreement") dated as of ____________, 2005
among Infinity, Inc., a Colorado corporation ("Borrower"), Consolidated Oil Well
Services, Inc., a Kansas corporation ("Consolidated"), CIS-Oklahoma, Inc., a
Kansas corporation, Infinity Oil & Gas of Wyoming, Inc., a Wyoming corporation
("Infinity-Wyoming"), Infinity Oil and Gas of Texas, Inc., a Delaware
corporation ("Infinity-Texas"), and Infinity Oil & Gas of Kansas, Inc., a Kansas
corporation (each such corporation, including Borrower, and together with each
other Person who becomes a party to this Agreement by execution of a joinder in
the form of Exhibit A attached hereto, is referred to individually as a "Debtor"
and, collectively, as the "Debtors"), and Promethean Asset Management L.L.C., a
Delaware limited liability company, in its capacity as collateral agent for the
Lenders on Schedule B attached hereto and their respective successors and
assigns (together with its successors and assigns in such capacity, the "Secured
Party").

                                   WITNESSETH:

         WHEREAS, on the date hereof, Lenders have made loans and certain other
financial accommodations to Borrower (collectively, the "Initial Loans"), as
evidenced by those certain senior secured notes of even date herewith made by
Borrower payable to the Lenders in the original aggregate principal amount of
$30,000,000 (such notes, together with any promissory notes or other securities
issued in exchange or substitution therefor or replacement thereof, and as any
of the same may be amended, restated, modified or supplemented and in effect
from time to time, being herein referred to as the "Initial Notes");

         WHEREAS, one or more Lenders may make additional loans and certain
other financial accommodations to Borrower (collectively the "Additional Loans"
and, together with the Initial Loans, the "Loans"), as will be evidenced by
additional senior secured notes made by Borrower payable to such Lender or
Lenders in an original aggregate principal amount of up to $45,000,000 (such
notes, together with any promissory notes or other securities issued in exchange
or substitution therefor or replacement thereof, and as any of the same may be
amended, restated, modified or supplemented and in effect from time to time,
being herein referred to as the "Additional Notes" and, together with the
Initial Notes, the "Notes");

         WHEREAS, the Notes are being acquired (or, in the case of the
Additional Notes, will be acquired) by Lenders pursuant to a Securities Purchase
Agreement with Borrower, dated as of January 13, 2005 (as same may be amended,
restated, supplemented or otherwise modified from time to time, the "Purchase
Agreement");

         WHEREAS, Debtors (other than Borrower) are subsidiaries of Borrower
and, as such, will derive substantial benefit and advantage from the Loans, and
it will be to each such Debtor's direct interest and economic benefit to assist
the Borrower in procuring such Loans; and

<PAGE>

         WHEREAS, to induce the Lenders to make the Loans, (i) each Debtor
(other than Borrower) has agreed to guaranty the Liabilities (as hereinafter
defined) of Borrower pursuant to that certain Guaranty of even date herewith
(the same, as it may be amended, restated, modified or supplemented and in
effect from time to time, the "Guaranty") by such Debtors in favor of Secured
Party (on its behalf and on behalf of the Lenders) and (ii) each Debtor has
agreed to pledge and grant a security interest in the Collateral (as hereinafter
defined) as security for its Liabilities.

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         Section 1. Definitions. Capitalized terms used herein without
definition and defined in the Purchase Agreement are used herein as defined
therein. In addition, as used herein:

                  "Accounts" means any "account," as such term is defined in the
         Uniform Commercial Code, and, in any event, shall include, without
         limitation, "supporting obligations" as defined in the Uniform
         Commercial Code.

                  "As-extracted Collateral" means any "as-extracted collateral,"
         as such term is defined in the Uniform Commercial Code.

                  "Chattel Paper" means any "chattel paper," as such term is
         defined in the Uniform Commercial Code.

                  "Collateral" shall have the meaning ascribed thereto in
         Section 3 hereof.

                  "Commercial Tort Claims" means "commercial tort claims", as
         such term is defined in the Uniform Commercial Code.

                  "Contracts" means all contracts, undertakings, or other
         agreements (other than rights evidenced by Chattel Paper, Documents or
         Instruments) in or under which a Debtor may now or hereafter have any
         right, title or interest, including, without limitation, with respect
         to an Account, any agreement relating to the terms of payment or the
         terms of performance thereof.

                  "Copyrights" means any copyrights, rights and interests in
         copyrights, works protectable by copyrights, copyright registrations
         and copyright applications, including, without limitation, the
         copyright registrations and applications listed on Schedule III
         attached hereto, and all renewals of any of the foregoing, all income,
         royalties, damages and payments now and hereafter due and/or payable
         under or with respect to any of the foregoing, including, without
         limitation, damages and payments for past, present and future
         infringements of any of the foregoing and the right to sue for past,
         present and future infringements of any of the foregoing.

                                        2
<PAGE>

                  "Deposit Accounts" means all "deposit accounts" as such term
         is defined in the Uniform Commercial Code, now or hereafter held in the
         name of a Debtor.

                  "Documents" means any "documents," as such term is defined in
         the Uniform Commercial Code, and shall include, without limitation, all
         documents of title (as defined in the Uniform Commercial Code), bills
         of lading or other receipts evidencing or representing Inventory or
         Equipment.

                  "Equipment" means any "equipment," as such term is defined in
         the Uniform Commercial Code and, in any event, shall include, Motor
         Vehicles.

                  "Event of Default" shall have the meaning set forth in the
         Notes.

                  "General Intangibles" means any "general intangibles," as such
         term is defined in the Uniform Commercial Code, and, in any event,
         shall include, without limitation, all right, title and interest in or
         under any Contract, models, drawings, materials and records, claims,
         literary rights, goodwill, rights of performance, Copyrights,
         Trademarks, Patents, warranties, rights under insurance policies and
         rights of indemnification.

                  "Goods" means any "goods", as such term is defined in the
         Uniform Commercial Code, including, without limitation, fixtures and
         embedded Software to the extent included in "goods" as defined in the
         Uniform Commercial Code.

                  "Instruments" means any "instrument," as such term is defined
         in the Uniform Commercial Code, and shall include, without limitation,
         promissory notes, drafts, bills of exchange, trade acceptances, letters
         of credit, letter of credit rights (as defined in the Uniform
         Commercial Code), and Chattel Paper.

                  "Inventory" means any "inventory," as such term is defined in
         the Uniform Commercial Code.

                  "Investment Property" means any "investment property", as such
         term is defined in the Uniform Commercial Code.

                  "JVEA" means that certain Joint Value Enhancement Agreement
         dated December 3, 2003, as in effect on the date hereof, among
         Infinity-Wyoming and Schlumberger Technology Corporation
         ("Schlumberger") and Red Oak Capital Management LP ("Red Oak"; and,
         collectively with Schlumberger, the "Service Parties").

                  "Liabilities" shall mean all obligations, liabilities and
         indebtedness of every nature of Debtors from time to time owed or owing
         under or in respect of this Agreement, the Purchase Agreement, the
         Notes, the Warrants, the Registration Right Agreement, the Guaranty,
         any of the other Security Documents and any of the other Transaction
         Documents, as the case may be, including, without limitation, the
         principal amount of all debts, claims and indebtedness, accrued and
         unpaid interest and all fees, costs and expenses, whether primary,

                                        3
<PAGE>

         secondary, direct, contingent, fixed or otherwise, heretofore, now
         and/or from time to time hereafter owing, due or payable whether before
         or after the filing of a bankruptcy, insolvency or similar proceeding
         under applicable federal, state, foreign or other law and whether or
         not an allowed claim in any such proceeding.

                  "Lien" means, with respect to any asset, any mortgage, lien,
         pledge, hypothecation, charge, security interest, encumbrance or
         adverse claim of any kind and any restrictive covenant, condition,
         restriction or exception of any kind that has the practical effect of
         creating a mortgage, lien, pledge, hypothecation, charge, security
         interest, encumbrance or adverse claim of any kind (including any of
         the foregoing created by, arising under or evidenced by any conditional
         sale or other title retention agreement, the interest of a lessor with
         respect to a Capital Lease Obligation (as defined in the Notes), or any
         financing lease having substantially the same economic effect as any of
         the foregoing).

                  "Motor Vehicles" shall mean motor vehicles, tractors, trailers
         and other like property, whether or not the title thereto is governed
         by a certificate of title or ownership.

                  "Patents" means any patents and patent applications,
         including, without limitation, the inventions and improvements
         described and claimed therein, all patentable inventions and those
         patents and patent applications listed on Schedule IV attached hereto,
         and the reissues, divisions, continuations, renewals, extensions and
         continuations-in-part of any of the foregoing, and all income,
         royalties, damages and payments now or hereafter due and/or payable
         under or with respect to any of the foregoing, including, without
         limitation, damages and payments for past, present and future
         infringements of any of the foregoing and the right to sue for past,
         present and future infringements of any of the foregoing.

                  "Permitted Lien" shall have the meaning set forth in the
         Notes.

                  "Permitted Priority Liens" means (i) Permitted Liens described
         in clauses (c), (d), (e) and (k) of the definition thereof that are
         accorded priority by law or by agreement of Secured Party to the Liens
         granted to Secured Party hereunder and (ii) Permitted Liens described
         in clauses (h), (i) and (j) of the definition thereof subject to the
         limitations set forth therein.

                  "Proceeds" means "proceeds," as such term is defined in the
         Uniform Commercial Code and, in any event, includes, without
         limitation, (a) any and all proceeds of any insurance, indemnity,
         warranty or guaranty payable with respect to any of the Collateral, (b)
         any and all payments (in any form whatsoever) made or due and payable
         from time to time in connection with any requisition, confiscation,
         condemnation, seizure or forfeiture of all or any part of the
         Collateral by any governmental body, authority, bureau or agency (or
         any person acting under color of governmental authority), and (c) any
         and all other amounts from time to time paid or payable under, in
         respect of or in connection with any of the Collateral.

                                        4
<PAGE>

                  "Representative" means any Person acting as agent,
         representative or trustee on behalf of the Secured Party from time to
         time.

                  "Software" means all "software" as such term is defined in the
         Uniform Commercial Code, now owned or hereafter acquired by a Debtor,
         other than software embedded in any category of Goods, including,
         without limitation, all computer programs and all supporting
         information provided in connection with a transaction related to any
         program.

                  "Trademarks" means any trademarks, trade names, corporate
         names, company names, business names, fictitious business names, trade
         styles, service marks, logos, other business identifiers, prints and
         labels on which any of the foregoing have appeared or appear, all
         registrations and recordings thereof, and all applications in
         connection therewith, including, without limitation, the trademarks and
         applications listed in Schedule V attached hereto and renewals thereof,
         and all income, royalties, damages and payments now or hereafter due
         and/or payable under or with respect to any of the foregoing,
         including, without limitation, damages and payments for past, present
         and future infringements of any of the foregoing and the right to sue
         for past, present and future infringements of any of the foregoing.

                  "Triggering Event" shall have the meaning set forth in the
         Notes.

                  "Uniform Commercial Code" shall mean the Uniform Commercial
         Code as in effect from time to time in the State of New York; provided,
         that to the extent that the Uniform Commercial Code is used to define
         any term herein and such term is defined differently in different
         Articles or Divisions of the Uniform Commercial Code, the definition of
         such term contained in Article or Division 9 shall govern.

         Section 2. Representations, Warranties and Covenants of Debtors. Each
Debtor represents and warrants to, and covenants with, the Secured Party as
follows:

                  (a) Such Debtor has rights in and the power to transfer the
         Collateral in which it purports to grant a security interest pursuant
         to Section 3 hereof (subject, with respect to after acquired
         Collateral, to such Debtor acquiring the same) and no Lien other than
         Permitted Liens exists or will exist upon such Collateral at any time.

                  (b) This Agreement is effective to create in favor of Secured
         Party a valid security interest in and Lien upon all of such Debtor's
         right, title and interest in and to the Collateral, and such security
         interest is and will be a perfected first priority (such priority
         subject only to Permitted Priority Liens) security interest, securing
         the payment of the Liabilities, and is and will be entitled to all of
         the rights, priorities and benefits afforded by the Uniform Commercial
         Code or other applicable law as enacted in any relevant jurisdiction
         which relates to perfected security interests; provided Secured Party
         acknowledges that, except as provided

                                        5
<PAGE>

         by the Uniform Commercial Code or other applicable law, it will not
         have a perfected security interest in (i) the Deposit Accounts that are
         not covered by an Account Control Agreement (as defined below) as
         permitted by Section 4.5(c) below until such time as Secured Party, the
         financial institution at which such Deposit Account is maintained and
         the Debtor owning such Deposit Account enter into an Account Control
         Agreement in respect thereof and (ii) Equipment (including Motor
         Vehicles) subject to a certificate of title or ownership to the extent
         Secured Party has not been named lienholder on such certificate of
         title or ownership, or such Debtor has not otherwise complied with the
         applicable certificate of title or ownership laws of the relevant
         jurisdiction issuing such certificate of title or ownership in order to
         properly evidence and perfect Secured Party's security interest in the
         assets represented by such certificate of title or ownership, as
         permitted by Section 4.1(d) below until such time as Secured Party has
         been listed as the lienholder on such certificate of title or ownership
         (or such Debtor has otherwise complied with the applicable certificate
         of title or ownership laws of the relevant jurisdiction issuing such
         certificate of title or ownership in order to properly evidence and
         perfect Secured Party's security interest in the assets represented by
         such certificate of title or ownership).

                  (c) All of the Equipment, Inventory and Goods owned by such
         Debtor is located at the places as specified on Schedule I attached
         hereto. Except as disclosed on Schedule I, none of the Collateral is in
         the possession of any bailee, warehousemen, processor or consignee.
         Schedule I discloses such Debtor's name as of the date hereof as it
         appears in official filings in the state of its incorporation,
         formation or organization, the type of entity of such Debtor (including
         corporation, partnership, limited partnership or limited liability
         company), organizational identification number issued by such Debtor's
         state of incorporation, formation or organization (or a statement that
         no such number has been issued), such Debtor's state of incorporation,
         formation or organization and the chief place of business, chief
         executive office and the office where such Debtor keeps its books and
         records. Such Debtor has only one state of incorporation, formation or
         organization. Such Debtor (including any Person acquired by such
         Debtor) does not do business and has not done business during the past
         five (5) years under any trade name or fictitious business name except
         as disclosed on Schedule II attached hereto.

                  (d) No Copyrights, Patents or Trademarks listed on Schedules
         III, IV and V, respectively, if any, have been adjudged invalid or
         unenforceable or have been canceled, in whole or in part, or are not
         presently subsisting. Each of such Copyrights, Patents and Trademarks
         is valid and enforceable. Such Debtor is the sole and exclusive owner
         of the entire and unencumbered right, title and interest in and to each
         of such Copyrights, Patents and Trademarks, identified on Schedules
         III, IV and V, as applicable, as being owned by such Debtor, free and
         clear of any liens, charges and encumbrances, including without
         limitation licenses, shop rights and covenants by such Debtor not to
         sue third persons. Such Debtor has adopted, used and is currently
         using, or has a current bona fide intention to use, all of such
         Trademarks and Copyrights. Such Debtor has no

                                        6
<PAGE>

         notice of any suits or actions commenced or threatened with reference
         to the Copyrights, Patents or Trademarks owned by it.

                  (e) Each Debtor agrees to deliver to the Secured Party an
         updated Schedule I, II, III, IV and/or V within five (5) Business Days
         of any change thereto.

                  (f) All depositary and other accounts including, without
         limitation, Deposit Accounts, securities accounts, brokerage accounts
         and other similar accounts, maintained by each Debtor are described on
         Schedule VI hereto, which description includes for each such account
         the name of the Debtor maintaining such account, the name, address and
         telephone and telecopy numbers of the financial institution at which
         such account is maintained, the account number and the account officer,
         if any, of such account. No Debtor shall open any new Deposit Accounts,
         securities accounts, brokerage accounts or other accounts unless such
         Debtor shall have given Secured Party ten (10) Business Days' prior
         written notice of its intention to open any such new accounts. Each
         Debtor shall deliver to Secured Party a revised version of Schedule VI
         showing any changes thereto within five (5) Business Days of any such
         change. Each Debtor hereby authorizes the financial institutions at
         which such Debtor maintains an account to provide Secured Party with
         such information with respect to such account as Secured Party from
         time to time reasonably may request, and each Debtor hereby consents to
         such information being provided to Secured Party. In addition, all of
         such Debtor's depositary, security, brokerage and other accounts
         including, without limitation, Deposit Accounts shall be subject to the
         provisions of Section 4.5 hereof.

                  (g) Such Debtor does not own any Commercial Tort Claim except
         for those disclosed on Schedule VII hereto.

                  (h) Other than Interests during the time period for which such
         Debtor is not required to provide the Lenders with a valid, perfected
         first priority security interest therein in accordance with Section
         4(o)(ii) of the Purchase Agreement (provided nothing herein shall limit
         any breach of the terms of Section 4(o)(ii) of the Purchase Agreement
         for failure of a Debtor to grant to Secured Party a first priority
         perfected security interest in any Interests within the time periods
         set forth in such Section 4(o)(ii)), such Debtor does not have any
         interest in real property or mining rights with respect to real
         property except as disclosed on Schedule VIII (provided, however, that
         in preparing Schedule VIII it is hereby agreed that a Debtor is not
         required to set forth thereon easements, rights of way, access
         agreements, surface damage agreements, surface use agreements or
         similar agreements that pertain to real property that is contained
         wholly within the boundaries of any owned or leased real property of
         such Debtor otherwise described on Schedule VIII). Each Debtor shall
         deliver to Secured Party a revised version of Schedule VIII showing any
         changes thereto within ten (10) Business Days of any such change or,
         with respect to any Interest acquired after the date hereof, on the
         date on which such Debtor is required to provide Lenders with a

                                        7
<PAGE>

         valid, perfected first priority security interest in such Interest in
         accordance with Section 4(o)(ii) of the Purchase Agreement. Except as
         otherwise agreed to by Secured Party or as otherwise permitted by
         Section 4(o)(ii) of the Purchase Agreement, all such interests in real
         property or mining rights with respect to such real property are
         subject to a mortgage, deed of trust and assignment of production
         proceeds (in form and substance satisfactory to Secured Party) in favor
         of Secured Party (hereinafter, a "Mortgage"); provided, however, that
         notwithstanding anything to the contrary set forth above, the Secured
         Party and the Lenders hereby agree that a Mortgage shall not be filed
         against the three Project Wells (as defined in the JVEA) set forth on
         Exhibit C to Schedule VIII until such time as the filing of a Mortgage
         against such Project Wells does not cause a breach of the JVEA (it
         being agreed to and understood that the preceding proviso applies only
         to the subject Project Wells set forth on Exhibit C to Schedule VIII
         and does not apply with respect to any other property or assets of any
         Debtor, including, without limitation, any interests in real property
         or mining rights set forth on Exhibit A to any Mortgage that relate to
         or arise in respect of any real property on which the Project Wells are
         located). Each Debtor acknowledges that each such Mortgage contains an
         Exhibit A (or other applicable Exhibit) listing the properties in which
         such Debtor has an interest, and to the extent that Schedule VIII is
         updated pursuant to this Section 2(h), the applicable Debtor shall be
         obligated to execute an amendment to the applicable Exhibit to the
         applicable Mortgage such that, after giving effect to such Mortgage
         amendment, Secured Party will have a first priority (other than with
         respect to property or assets subject to Permitted Priority Liens)
         perfected security interest in such new real property or mining rights.

                  (i) Each Debtor shall duly and properly record each interest
         in real property held by such Debtor except with respect to easements,
         rights of way, access agreements, surface damage agreements, surface
         use agreements or similar agreements that such Debtor, using prudent
         customs and practices in the industry in which it operates, does not
         believe are of material value or material to the operation of such
         Debtor's business or, with respect to state and federal rights of way,
         are not capable of being recorded as a matter of state and federal law.
         Each of Borrower and Infinity-Texas acknowledges that it has obtained
         an assignment from Shorthorn Resources, Inc. of an interest in an oil
         and gas lease originally entered into between Johnny B. Putty, et al.
         and Shorthorn Resources, Inc. covering 2,645.4 acres in Hamilton
         County, Texas, and, with respect thereto, notwithstanding anything to
         the contrary contained in this Agreement, each of Borrower and
         Infinity-Texas agrees to (i) within two (2) Business Days of the date
         of this Agreement, record such assignment in the proper office in
         Hamilton County, Texas in order to convey title into Infinity-Texas and
         (ii) within ten (10) Business Days of the date of this Agreement,
         update Schedule VIII to reflect Infinity-Texas' interests in such
         property and provide Secured Party with a Mortgage in favor of Secured
         Party that complies with Section 2(h) above and covers such interests.

                                        8
<PAGE>

         Section 3. Collateral. As collateral security for the prompt payment in
full when due (whether at stated maturity, by acceleration or otherwise) of the
Liabilities, each Debtor hereby pledges and grants to the Secured Party a Lien
on and security interest in and to all of such Debtor's right, title and
interest in the personal property and assets of such Debtor, whether now owned
by such Debtor or hereafter acquired and whether now existing or hereafter
coming into existence and wherever located (all being collectively referred to
herein as "Collateral"), including, without limitation:

                  (a) all Instruments, together with all payments thereon or
         thereunder:

                  (b) all Accounts;

                  (c) all Inventory;

                  (d) all General Intangibles (including payment intangibles (as
         defined in the Uniform Commercial Code) and Software);

                  (e) all Equipment;

                  (f) all Documents;

                  (g) all Contracts;

                  (h) all Goods;

                  (i) all Investment Property;

                  (j) all Deposit Accounts, including, without limitation, the
         balance from time to time in all bank accounts maintained by such
         Debtor;

                  (k) all Commercial Tort Claims specified on Schedule VII;

                  (l) all As-extracted Collateral;

                  (m) all Trademarks, Patents and Copyrights; and

                  (n) all other tangible and intangible property of such Debtor,
         including, without limitation, all Proceeds, tort claims, products,
         accessions, rents, profits, income, benefits, substitutions, additions
         and replacements of and to any of the property of such Debtor described
         in the preceding clauses of this Section 3 (including, without
         limitation, any proceeds of insurance thereon, insurance claims and all
         rights, claims and benefits against any Person relating thereto), other
         rights to payments not otherwise included in the foregoing, and all
         books, correspondence, files, records, invoices and other papers,
         including without limitation all tapes, cards, computer runs, computer
         programs, computer files and other papers, documents and records in the
         possession or under the control of such Debtor or any computer bureau
         or service company from time to time acting for such Debtor;

                                        9
<PAGE>

provided, however, that notwithstanding anything to the contrary set forth
above, the Secured Party and the Lenders hereby agree that the term Collateral
shall not include the three Project Wells (as defined in the JVEA) set forth on
Exhibit C to Schedule VIII until such time as the granting of a Lien against
such Project Wells does not cause a breach of the JVEA (it being agreed to and
understood that the preceding proviso applies only to the subject Project Wells
set forth on Exhibit C to Schedule VIII and does not apply with respect to any
other property or assets of any Debtor).

         Section 4. Covenants; Remedies. In furtherance of the grant of the
pledge and security interest pursuant to Section 3 hereof, each Debtor hereby
agrees with the Secured Party as follows:

         4.1. Delivery and Other Perfection; Maintenance, etc.

                  (a) Delivery of Instruments, Documents, Etc. Each Debtor shall
         deliver and pledge to the Secured Party or its Representative any and
         all Instruments, negotiable Documents, Chattel Paper and certificated
         securities (accompanied by stock powers executed in blank) duly
         endorsed and/or accompanied by such instruments of assignment and
         transfer executed by such Debtor in such form and substance as the
         Secured Party or its Representative may request; provided, that so long
         as no Event of Default or Triggering Event shall have occurred and be
         continuing, each Debtor may retain for collection in the ordinary
         course of business any Instruments, negotiable Documents and Chattel
         Paper received by such Debtor in the ordinary course of business, and
         the Secured Party or its Representative shall, promptly upon request of
         a Debtor, make appropriate arrangements for making any other
         Instruments, negotiable Documents and Chattel Paper pledged by such
         Debtor available to such Debtor for purposes of presentation,
         collection or renewal (any such arrangement to be effected, to the
         extent deemed appropriate by the Secured Party or its Representative,
         against trust receipt or like document). If a Debtor retains possession
         of any Chattel Paper, negotiable Documents or Instruments pursuant to
         the terms hereof, such Chattel Paper, negotiable Documents and
         Instruments shall be marked with the following legend: "This writing
         and the obligations evidenced or secured hereby are subject to the
         security interest of Promethean Asset Management L.L.C., in its
         capacity as collateral agent for the benefit of the Lenders, as secured
         party."

                  (b) Other Documents and Actions. Each Debtor shall give,
         execute, deliver, file and/or record any financing statement, notice,
         instrument, document, agreement, Mortgage or other papers that may be
         necessary or desirable (in the reasonable judgment of the Secured Party
         or its Representative) to create, preserve, perfect or validate the
         security interest granted pursuant hereto (or any security interest or
         mortgage contemplated or required hereunder, including with respect to
         Section 2(h) of this Agreement) or to enable the Secured Party or its
         Representative to exercise and enforce the rights of the Secured Party
         hereunder with respect to such pledge and security interest, provided
         that notices to account debtors in respect of any Accounts or
         Instruments shall be subject to the

                                       10
<PAGE>

         provisions of clause (e) below. Notwithstanding the foregoing each
         Debtor hereby irrevocably authorizes the Secured Party at any time and
         from time to time to file in any filing office in any jurisdiction any
         initial financing statements and amendments thereto that (a) indicate
         the Collateral (i) as all assets of such Debtor or words of similar
         effect, regardless of whether any particular asset comprised in the
         Collateral falls within the scope of Article 9 of the Uniform
         Commercial Code of the State of New York or such jurisdiction, or (ii)
         as being of an equal or lesser scope or with greater detail, and (b)
         contain any other information required by part 5 of Article 9 of the
         Uniform Commercial Code of the State of New York or any other State for
         the sufficiency or filing office acceptance of any financing statement
         or amendment, including (i) whether such Debtor is an organization, the
         type of organization and any organization identification number issued
         to such Debtor, and (ii) in the case of a financing statement filed as
         a fixture filing or indicating Collateral as As-extracted Collateral or
         timber to be cut, a sufficient description of real property to which
         the Collateral relates. Each Debtor agrees to furnish any such
         information to the Secured Party promptly upon request. Each Debtor
         also ratifies its authorization for the Secured Party to have filed in
         any jurisdiction any like initial financing statements or amendments
         thereto if filed prior to the date hereof.

                  (c) Books and Records. Each Debtor shall maintain at its own
         cost and expense complete and accurate books and records of the
         Collateral, including, without limitation, a record of all payments
         received and all credits granted with respect to the Collateral and all
         other dealings with the Collateral. Upon the occurrence and during the
         continuation of any Event of Default or Triggering Event, each Debtor
         shall deliver and turn over any such books and records (or true and
         correct copies thereof) to the Secured Party or its Representative at
         any time on demand. Each Debtor shall permit any representative of the
         Secured Party to inspect such books and records at any time during
         reasonable business hours and will provide photocopies thereof at such
         Debtor's expense to the Secured Party upon request of the Secured
         Party.

                  (d) Motor Vehicles. Each Debtor shall, promptly upon acquiring
         same, cause the Secured Party to be listed as the lienholder on each
         certificate of title or ownership covering any items of Equipment,
         including Motor Vehicles (or otherwise comply with the certificate of
         title or ownership laws of the relevant jurisdiction issuing such
         certificate of title or ownership in order to properly evidence and
         perfect Secured Party's security interest in the assets represented by
         such certificate of title or ownership); provided, however, that so
         long as no Event of Default or Triggering Event has occurred and is
         continuing, Debtors shall not be required to cause the Secured Party to
         be listed as the lienholder on a certificate of title for any item of
         Equipment, including a Motor Vehicle, which does not exceed a fair
         market value of $30,000 individually (each such excluded item of
         Equipment, an "Exempt Equipment Item"); provided, further, that once
         the fair market value of all Exempt Equipment Items exceeds $1,000,000
         in the aggregate, Debtors shall cause Secured Party to be listed as
         lienholder (or otherwise comply with the certificate of title or
         ownership laws of the relevant

                                       11
<PAGE>

         jurisdiction issuing such certificate of title or ownership in order to
         properly evidence and perfect Secured Party's security interest in the
         assets represented by such certificate of title or ownership) on each
         certificate of title or ownership of an Exempt Equipment Item that,
         when added to the fair market value of all Exempt Equipment Items,
         would cause the fair market value of all Exempt Equipment Items to
         exceed $1,000,000. With respect to all Motor Vehicles owned by Debtors
         on the date of the Initial Closing, Debtors shall have forty-five (45)
         days from the date of the Initial Closing to comply with the terms of
         this Section 4.1(d).

                  (e) Notice to Account Debtors; Verification. (i) Upon the
         occurrence and during the continuance of any Event of Default or
         Triggering Event (or if any rights of set-off (other than set-offs
         against an Account arising under the Contract giving rise to the same
         Account) or contra accounts may be asserted), upon request of the
         Secured Party or its Representative, each Debtor shall promptly notify
         (and each Debtor hereby authorizes the Secured Party and its
         Representative so to notify) each account debtor in respect of any
         Accounts or Instruments or other Persons obligated on the Collateral
         that such Collateral has been assigned to the Secured Party hereunder,
         and that any payments due or to become due in respect of such
         Collateral are to be made directly to the Secured Party, and (ii) the
         Secured Party and its Representative shall have the right at any time
         or times (but not more frequently than once per calendar year unless an
         Event of Default or Triggering Event has occurred and is continuing) to
         make direct verification with the account debtors or other Persons
         obligated on the Collateral of any and all of the Accounts or other
         such Collateral.

                  (f) Intellectual Property. Each Debtor represents and warrants
         that the Copyrights, Patents and Trademarks listed on Schedules III, IV
         and V, respectively, constitute all of the registered Copyrights and
         all of the Patents and Trademarks now owned by such Debtor. If such
         Debtor shall (i) obtain rights to any new patentable inventions, any
         registered Copyrights or any Patents or Trademarks, or (ii) become
         entitled to the benefit of any registered Copyrights or any Patents or
         Trademarks or any improvement on any Patent, the provisions of this
         Agreement above shall automatically apply thereto and such Debtor shall
         give to Secured Party prompt written notice thereof. Each Debtor hereby
         authorizes Secured Party to modify this Agreement by amending Schedules
         III, IV and V, as applicable, to include any such registered Copyrights
         or any such Patents and Trademarks. Each Debtor shall have the duty (i)
         to prosecute diligently any patent, trademark, or service mark
         applications pending as of the date hereof or hereafter, (ii) to make
         application on unpatented but patentable inventions and on trademarks,
         copyrights and service marks, as appropriate, (iii) to preserve and
         maintain all rights in the Copyrights, Patents and Trademarks, to the
         extent material to the operations of the business of such Debtor and
         (iv) to ensure that the Copyrights, Patents and Trademarks are and
         remain enforceable, to the extent material to the operations of the
         business of such Debtor. Any expenses incurred in connection with such
         Debtor's obligations under this Section 4.1(f) shall be borne by such
         Debtor. Except for any such items that a Debtor reasonably

                                       12
<PAGE>

         believes (using prudent industry customs and practices) are no longer
         necessary for the on-going operations of its business, no Debtor shall
         abandon any right to file a patent, trademark or service mark
         application, or abandon any pending patent, trademark or service mark
         application or any other Copyright, Patent or Trademark without the
         written consent of Secured Party, which consent shall not be
         unreasonably withheld.

                  (g) Further Identification of Collateral. Each Debtor will,
         when and as often as requested by the Secured Party or its
         Representative, furnish to the Secured Party or such Representative,
         statements and schedules further identifying and describing the
         Collateral and such other reports in connection with the Collateral as
         the Secured Party or its Representative may reasonably request, all in
         reasonable detail.

                  (h) Investment Property. Each Debtor will take any and all
         actions required or requested by the Secured Party, from time to time,
         to (i) cause the Secured Party to obtain exclusive control of any
         Investment Property owned by such Debtor in a manner acceptable to the
         Secured Party and (ii) obtain from any issuers of Investment Property
         and such other Persons, for the benefit of the Secured Party, written
         confirmation of the Secured Party's control over such Investment
         Property. For purposes of this Section 4.1(h), the Secured Party shall
         have exclusive control of Investment Property if (i) such Investment
         Property consists of certificated securities and a Debtor delivers such
         certificated securities to the Secured Party (with appropriate
         endorsements if such certificated securities are in registered form);
         (ii) such Investment Property consists of uncertificated securities and
         either (x) a Debtor delivers such uncertificated securities to the
         Secured Party or (y) the issuer thereof agrees, pursuant to
         documentation in form and substance satisfactory to the Secured Party,
         that it will comply with instructions originated by the Secured Party
         without further consent by such Debtor, and (iii) such Investment
         Property consists of security entitlements and either (x) the Secured
         Party becomes the entitlement holder thereof or (y) the appropriate
         securities intermediary agrees, pursuant to the documentation in form
         and substance satisfactory to the Secured Party, that it will comply
         with entitlement orders originated by the Secured Party without further
         consent by any Debtor.

                  (i) Reserved.

                  (j) Commercial Tort Claims. Each Debtor shall promptly notify
         Secured Party of any Commercial Tort Claim (as defined in the Uniform
         Commercial Code) acquired by it that concerns a claim in excess of
         $100,000 and unless otherwise consented to by Secured Party, such
         Debtor shall enter into a supplement to this Agreement granting to
         Secured Party a Lien on and security interest in such Commercial Tort
         Claim.

         4.2 Other Liens. Debtors will not create, permit or suffer to exist,
and will defend the Collateral against and take such other action as is
necessary to remove, any

                                       13
<PAGE>

Lien on the Collateral except Permitted Liens, and will defend the right, title
and interest of the Secured Party in and to the Collateral and in and to all
Proceeds thereof against the claims and demands of all Persons whatsoever.

         4.3 Preservation of Rights. Whether or not any Event of Default or
Triggering Event has occurred or is continuing, the Secured Party and its
Representative may, but shall not be required to, take any steps the Secured
Party or its Representative deems necessary or appropriate to preserve any
Collateral or any rights against third parties to any of the Collateral,
including obtaining insurance of Collateral at any time when a Debtor has failed
to do so, and Debtors shall promptly pay, or reimburse the Secured Party for,
all expenses incurred in connection therewith.

         4.4 Formation of Subsidiaries; Name Change; Location; Bailees.

                  (a) No Debtor shall form any subsidiary unless (i) such Debtor
         pledges all of the stock of such subsidiary to the Secured Party (in
         the case of Borrower, pursuant to the existing pledge agreement by
         Borrower in favor of the Secured Party or, with respect to a Debtor
         other than Borrower, pursuant to a pledge agreement in form and
         substance acceptable to Secured Party), (ii) such subsidiary becomes a
         party to this Agreement and all other applicable Security Documents and
         (iii) the formation of such Subsidiary is not prohibited by the terms
         of the Transaction Documents.

                  (b) No Debtor shall (i) reincorporate or reorganize itself
         under the laws of any jurisdiction other than the jurisdiction in which
         it is incorporated or organized as of the date hereof without the prior
         written consent of Secured Party, or (ii) otherwise change its name,
         identity or corporate structure (other than a change in name if, and
         only if, such Debtor has given Secured Party thirty (30) days advance
         written notice thereof and Secured Party has provided written
         acknowledgment of receipt of such notice). Each Debtor will notify
         Secured Party promptly in writing prior to any such change in the
         proposed use by such Debtor of any tradename or fictitious business
         name other than any such name set forth on Schedule II attached hereto.

                  (c) Except for the sale of Inventory in the ordinary course of
         business and a sale of assets that complies with the terms of Section
         4(s) of the Purchase Agreement and except as expressly permitted in the
         Notes, each Debtor will keep the Collateral at the locations specified
         in Schedule I. Each Debtor will give Secured Party thirty (30) day's
         prior written notice of any change in such Debtor's chief place of
         business or of any new location for any of the Collateral.

                  (d) If any Collateral is at any time in the possession or
         control of any warehousemen, bailee, consignee or processor, such
         Debtor shall, upon the request of Secured Party or its Representative,
         notify such warehousemen, bailee, consignee or processor of the Lien
         and security interest created hereby and shall instruct such Person to
         hold all such Collateral for Secured Party's account subject to Secured
         Party's instructions.

                                       14
<PAGE>

                  (e) Each Debtor acknowledges that it is not authorized to file
         any financing statement or amendment or termination statement with
         respect to any financing statement without the prior written consent of
         Secured Party and agrees that it will not do so without the prior
         written consent of Secured Party, subject to such Debtor's rights under
         Section 9-509(d)(2) to the Uniform Commercial Code.

                  (f) No Debtor shall enter into any Contract that restricts or
         prohibits the grant to Secured Party of a security interest in
         Accounts, Chattel Paper, Instruments or payment intangibles or the
         proceeds of the foregoing.

         4.5 Bank Accounts and Securities Accounts.

                  (a) Other than as expressly set forth in the last sentence of
         this Section 4.5(a) and in Section 4.5(c) below, on or prior to the
         date hereof, (i) Debtors shall close all Deposit Accounts currently
         maintained at LaSalle Bank National Association and (ii) the Secured
         Party and each Debtor shall enter into an account control agreement or
         securities account control agreement, as applicable, (each an "Account
         Control Agreement"), in a form specified by the Secured Party, with
         each financial institution with which such Debtor maintains from time
         to time any Deposit Accounts (general or special), securities accounts,
         brokerage accounts or other similar accounts, which financial
         institutions are set forth on Schedule VI attached hereto. Pursuant to
         the Account Control Agreements and pursuant hereto, each Debtor grants
         and shall grant to the Secured Party a continuing lien upon, and
         security interest in, all such accounts and all funds at any time paid,
         deposited, credited or held in such accounts (whether for collection,
         provisionally or otherwise) or otherwise in the possession of such
         financial institutions, and each such financial institution shall act
         as the Secured Party's agent in connection therewith. Following the
         Closing Date, no Debtor shall establish any Deposit Account, securities
         account, brokerage account or other similar account with any financial
         institution unless prior thereto, the Secured Party and such Debtor
         shall have entered into an Account Control Agreement with such
         financial institution which purports to cover such account. Other than
         petty cash not exceeding $10,000 in the aggregate for all Debtors, each
         Debtor shall deposit and keep on deposit all of its funds into a
         Deposit Account which is subject to an Account Control Agreement;
         provided, that, notwithstanding anything to the contrary contained in
         this Agreement, for a period of ten (10) Business Days (or up to thirty
         (30) days if said funds are on deposit in Deposit Accounts at Bank of
         Blue Valley) after the Initial Closing, Debtors shall be permitted to
         maintain up to $200,000 (exclusive of amounts on deposit in the Duke LC
         Account and Returned Items Account described in Section 4.5(c) below)
         in the aggregate for all Debtors on deposit in Deposit Accounts that
         are not subject to an Account Control Agreement.

                  (b) Upon the Secured Party's request, each Debtor shall
         establish lock-box or blocked accounts (collectively, "Blocked
         Accounts") in such Debtor's name with such banks as are acceptable to
         the Secured Party ("Collecting Banks"), subject to irrevocable
         instructions in a form specified by the Secured

                                       15
<PAGE>

         Party, to which the obligors of all Accounts shall directly remit all
         payments on Accounts and in which such Debtor will immediately deposit
         all cash payments for Inventory or other cash payments constituting
         proceeds of Collateral in the identical form in which such payment was
         made, whether by cash or check. In addition, the Secured Party may
         establish one or more depository accounts at each Collecting Bank or at
         a centrally located bank (collectively, the "Depository Account"). All
         amounts held or deposited in the Blocked Accounts held by such
         Collecting Bank shall be transferred to the Depository Account without
         any further notice or action required by Secured Party. Subject to the
         foregoing, each Debtor hereby agrees that all payments received by the
         Secured Party whether by cash, check, wire transfer or any other
         instrument, made to such Blocked Accounts or otherwise received by the
         Secured Party and whether in respect of the Accounts or as proceeds of
         other Collateral or otherwise will be the sole and exclusive property
         of the Secured Party. Each Debtor, and any of its Affiliates,
         employees, agents and other Persons acting for or in concert with such
         Debtor shall, acting as trustee for the Secured Party, receive, as the
         sole and exclusive property of the Secured Party, any moneys, checks,
         notes, drafts or other payments relating to and/or proceeds of Accounts
         or other Collateral which come into the possession or under the control
         of such Debtor or any Affiliates, employees, agent or other Persons
         acting for or in concert with such Debtor, and immediately upon receipt
         thereof, such Debtor or Persons shall deposit the same or cause the
         same to be deposited in kind, in a Blocked Account.

                  (c) Notwithstanding anything to the contrary contained in
         Section 4.5(a) above, Infinity-Wyoming shall be permitted to maintain
         the Deposit Account set forth in the following clause (i) and
         Consolidated shall be permitted to maintain the Deposit Account set
         forth in the following clause (ii), in each case without having same be
         subject to an Account Control Agreement, so long as all of the
         conditions set forth below are satisfied:

                           (i) until March 15, 2005, Infinity-Wyoming shall be
                  permitted to maintain deposit account number _______________
                  at US Bank National Association (the "Duke LC Account") so
                  long as (A) no more than $300,000 (less any amounts used to
                  satisfy Infinity-Wyoming's reimbursement obligations in
                  respect of the letter of credit referred to in the immediately
                  succeeding clause (B)) is on deposit therein at any one time,
                  (B) such Deposit Account shall only be maintained as a cash
                  collateral account for the letter of credit issued for the
                  account of Infinity-Wyoming by US Bank National Association in
                  the face amount of $______________ to ______________ as
                  beneficiary, and (C) the existence of such letter of credit
                  and the cash collateralization of Infinity-Wyoming's
                  obligations thereunder are permitted pursuant to the terms of
                  the Purchase Agreement; and

                           (ii) Consolidated shall be permitted to maintain
                  deposit account number ________________ at LaSalle Bank
                  National Association (the "Returned Items Account") so long as
                  (A) no more than $255,000 (less

                                       16
<PAGE>

                  any amounts used to satisfy Consolidated's reimbursement
                  obligations in respect of returned items referred to in the
                  immediately succeeding clause (B)) is on deposit therein at
                  any one time, (B) such Deposit Account shall only be
                  maintained as a cash collateral account to reimburse LaSalle
                  Bank National Association for any items deposited into Deposit
                  Accounts previously maintained at LaSalle Bank National
                  Association by Consolidated for which Consolidated received
                  provisional credit but such item was subsequently returned
                  unpaid, and (C) such Deposit Account is closed within
                  forty-five (45) days of the date hereof and all funds on
                  deposit therein not used to satisfy Consolidated's
                  reimbursement obligations owing to LaSalle Bank National
                  Association on account of any returned items described in the
                  immediately preceding clause (B) are returned to Consolidated
                  (or deposited into a Deposit Account covered by an Account
                  Control Agreement) simultaneously therewith.

         4.6 Events of Default, Triggering Events, Etc. During the period during
which an Event of Default or Triggering Event shall have occurred and be
continuing:

                  (a) each Debtor shall, at the request of the Secured Party or
         its Representative, assemble the Collateral and make it available to
         Secured Party or its Representative at a place or places designated by
         the Secured Party or its Representative which are reasonably convenient
         to Secured Party or its Representative, as applicable, and such Debtor;

                  (b) the Secured Party or its Representative may make any
         reasonable compromise or settlement deemed desirable with respect to
         any of the Collateral and may extend the time of payment, arrange for
         payment in installments, or otherwise modify the terms of, any of the
         Collateral;

                  (c) the Secured Party shall have all of the rights and
         remedies with respect to the Collateral of a secured party under the
         Uniform Commercial Code (whether or not said Uniform Commercial Code is
         in effect in the jurisdiction where the rights and remedies are
         asserted) and such additional rights and remedies to which a secured
         party is entitled under the laws in effect in any jurisdiction where
         any rights and remedies hereunder may be asserted, including, without
         limitation, the right, to the maximum extent permitted by law, to: (i)
         exercise all voting, consensual and other powers of ownership
         pertaining to the Collateral as if the Secured Party were the sole and
         absolute owner thereof (and each Debtor agrees to take all such action
         as may be appropriate to give effect to such right) and (ii) to the
         appointment of a receiver or receivers for all or any part of the
         Collateral, whether such receivership be incident to a proposed sale or
         sales of such Collateral or otherwise and without regard to the value
         of the Collateral or the solvency of any person or persons liable for
         the payment of the Liabilites secured by such Collateral. Each Debtor
         hereby consents to the appointment of such receiver or receivers,
         waives any and all defenses to such appointment and agrees that such
         appointment shall in no manner impair, prejudice or otherwise affect
         the rights of Secured Party under this Agreement. Each Debtor hereby

                                       17
<PAGE>

         expressly waives notice of a hearing for appointment of a receiver and
         the necessity for bond or an accounting by the receiver;

                  (d) the Secured Party or its Representative in their
         discretion may, in the name of the Secured Party or in the name of a
         Debtor or otherwise, demand, sue for, collect or receive any money or
         property at any time payable or receivable on account of or in exchange
         for any of the Collateral, but shall be under no obligation to do so;

                  (e) the Secured Party or its Representative may take immediate
         possession and occupancy of any premises owned, used or leased by a
         Debtor and exercise all other rights and remedies of an assignee which
         may be available to the Secured Party; and

                  (f) the Secured Party may, upon ten (10) Business Days' prior
         written notice to Debtors of the time and place (which notice Debtors
         hereby agree is commercially reasonable notification for purposes
         hereof), with respect to the Collateral or any part thereof which shall
         then be or shall thereafter come into the possession, custody or
         control of the Secured Party or its Representative, sell, lease,
         license, assign or otherwise dispose of all or any part of such
         Collateral, at such place or places as the Secured Party deems best,
         and for cash or for credit or for future delivery (without thereby
         assuming any credit risk), at public or private sale, without demand of
         performance or notice of intention to effect any such disposition or of
         the time or place thereof (except such notice as is required above or
         by applicable statute and cannot be waived), and the Secured Party or
         anyone else may be the purchaser, lessee, licensee, assignee or
         recipient of any or all of the Collateral so disposed of at any public
         sale (or, to the extent permitted by law, at any private sale) and
         thereafter hold the same absolutely, free from any claim or right of
         whatsoever kind, including any right or equity of redemption (statutory
         or otherwise), of Debtors, any such demand, notice and right or equity
         being hereby expressly waived and released. The Secured Party may,
         without notice or publication, adjourn any public or private sale or
         cause the same to be adjourned from time to time by announcement at the
         time and place fixed for the sale, and such sale may be made at any
         time or place to which the sale may be so adjourned.

The proceeds of each collection, sale or other disposition under this Section
4.6 shall be applied in accordance with Section 4.9 hereof.

         4.7 Deficiency. If the proceeds of sale, collection or other
realization of or upon the Collateral are insufficient to cover the costs and
expenses of such realization and the payment in full of the Liabilities, Debtors
shall remain liable for any deficiency.

         4.8 Private Sale. Each Debtor recognizes that the Secured Party may be
unable to effect a public sale of any or all of the Collateral consisting of
securities by reason of certain prohibitions contained in the Securities Act of
1933, as amended (the "Act"), and applicable state securities laws, but may be
compelled to resort to one or more private

                                       18
<PAGE>

sales thereof to a restricted group of purchasers who will be obliged to agree,
among other things, to acquire such Collateral for their own account for
investment and not with a view to the distribution or resale thereof. Each
Debtor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable to the seller than if such sale were a public
sale and, notwithstanding such circumstances, agrees that any such private sale
shall be deemed to have been made in a commercially reasonable manner. The
Secured Party shall be under no obligation to delay a sale of any of the
Collateral to permit a Debtor to register such Collateral for public sale under
the Act, or under applicable state securities laws, even if Debtors would agree
to do so. The Secured Party shall not incur any liability as a result of the
sale of any such Collateral, or any part thereof, at any private sale provided
for in this Agreement conducted in a commercially reasonable manner, and each
Debtor hereby waives any claims against the Secured Party arising by reason of
the fact that the price at which the Collateral may have been sold at such a
private sale was less than the price which might have been obtained at a public
sale or was less than the aggregate amount of the Liabilities, even if the
Secured Party accepts the first offer received and does not offer the Collateral
to more than one offeree.

         Each Debtor further agrees to do or cause to be done all such other
acts and things as may be necessary to make such sale or sales of any portion or
all of any such Collateral valid and binding and in compliance with any and all
applicable laws, regulations, orders, writs, injunctions, decrees or awards of
any and all courts, arbitrators or governmental instrumentalities, domestic or
foreign, having jurisdiction over any such sale or sales, all at such Debtor's
expense, provided that Debtors shall be under no obligation to take any action
to enable any or all of such Collateral to be registered under the provisions of
the Act. Each Debtor further agrees that a breach of any of the covenants
contained in this Section 4.8 will cause irreparable injury to the Secured
Party, that the Secured Party has no adequate remedy at law in respect of such
breach and, as a consequence, agrees that each and every covenant contained in
this Section 4.8 shall be specifically enforceable against Debtors, and each
Debtor hereby waives and agrees not to assert any defenses against an action for
specific performance of such covenants except for a defense that no Event of
Default or Triggering Event has occurred and is continuing.

         4.9 Application of Proceeds. The proceeds of any collection, sale or
other realization of all or any part of the Collateral, and any other cash at
the time held by the Secured Party under this Agreement, shall be applied in the
manner set forth in the Notes (or, if not so set forth, in a manner acceptable
to, and at the election of, the Secured Party).

         4.10 Attorney-in-Fact. Each Debtor hereby irrevocably constitutes and
appoints the Secured Party, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of such Debtor and in the name of such Debtor or in its own name, from
time to time in the discretion of the Secured Party, for the purpose of carrying
out the terms of this Agreement, to take any and all appropriate action and to
execute and deliver any and all documents and instruments which may be necessary
or desirable to perfect or protect any security interest granted hereunder or to
maintain the perfection or priority of any security interest

                                       19
<PAGE>

granted hereunder, and, without limiting the generality of the foregoing, hereby
gives the Secured Party the power and right, on behalf of such Debtor, without
notice to or assent by such Debtor, to do the following upon the occurrence and
during the continuation of any Event of Default or Triggering Event:

                  (a) to take any and all appropriate action and to execute and
         deliver any and all documents and instruments which may be necessary or
         desirable to accomplish the purposes of this Agreement;

                  (b) to ask, demand, collect, receive and give acquittance and
         receipts for any and all moneys due and to become due under any
         Collateral and, in the name of such Debtor or its own name or
         otherwise, to take possession of and endorse and collect any checks,
         drafts, notes, acceptances or other Instruments for the payment of
         moneys due under any Collateral and to file any claim or to take any
         other action or proceeding in any court of law or equity or otherwise
         deemed appropriate by the Secured Party for the purpose of collecting
         any and all such moneys due under any Collateral whenever payable and
         to file any claim or to take any other action or proceeding in any
         court of law or equity or otherwise deemed appropriate by the Secured
         Party for the purpose of collecting any and all such moneys due under
         any Collateral whenever payable;

                  (c) to pay or discharge charges or liens levied or placed on
         or threatened against the Collateral, to effect any insurance called
         for by the terms of this Agreement and to pay all or any part of the
         premiums therefor;

                  (d) to direct any party liable for any payment under any of
         the Collateral to make payment of any and all moneys due, and to become
         due thereunder, directly to the Secured Party or as the Secured Party
         shall direct, and to receive payment of and receipt for any and all
         moneys, claims and other amounts due, and to become due at any time, in
         respect of or arising out of any Collateral;

                  (e) to sign and indorse any invoices, freight or express
         bills, bills of lading, storage or warehouse receipts, drafts against
         debtors, assignments, verifications and notices in connection with
         accounts and other Documents constituting or relating to the
         Collateral;

                  (f) to commence and prosecute any suits, actions or
         proceedings at law or in equity in any court of competent jurisdiction
         to collect the Collateral or any part thereof and to enforce any other
         right in respect of any Collateral;

                  (g) to defend any suit, action or proceeding brought against a
         Debtor with respect to any Collateral;

                  (h) to settle, compromise or adjust any suit, action or
         proceeding described above and, in connection therewith, to give such
         discharges or releases as the Secured Party may deem appropriate;

                                       20
<PAGE>

                  (i) to the extent that a Debtor's authorization given in
         Section 4.1(b) of this Agreement is not sufficient to file such
         financing statements with respect to this Agreement, with or without
         such Debtor's signature, or to file a photocopy of this Agreement in
         substitution for a financing statement, as the Secured Party may deem
         appropriate and to execute in such Debtor's name such financing
         statements and amendments thereto and continuation statements which may
         require such Debtor's signature; and

                  (j) generally to sell, transfer, pledge, make any agreement
         with respect to or otherwise deal with any of the Collateral as fully
         and completely as though the Secured Party were the absolute owners
         thereof for all purposes, and to do, at the Secured Party's option and
         at such Debtor's expense, at any time, or from time to time, all acts
         and things which the Secured Party reasonably deems necessary to
         protect, preserve or realize upon the Collateral and the Secured
         Party's lien therein, in order to effect the intent of this Agreement,
         all as fully and effectively as such Debtor might do.

         Each Debtor hereby ratifies, to the extent permitted by law, all that
such attorneys lawfully do or cause to be done by virtue hereof. The power of
attorney granted hereunder is a power coupled with an interest and shall be
irrevocable until the Liabilities are indefeasibly paid in full in cash and this
Agreement is terminated in accordance with Section 4.12 hereof.

         Each Debtor also authorizes the Secured Party, at any time from and
after the occurrence and during the continuation of any Event of Default or
Triggering Event, (x) to communicate in its own name with any party to any
Contract with regard to the assignment of the right, title and interest of such
Debtor in and under the Contracts hereunder and other matters relating thereto
and (y) to execute, in connection with any sale of Collateral provided for in
Section 4.6 hereof, any endorsements, assignments or other instruments of
conveyance or transfer with respect to the Collateral.

         4.11 Perfection. Prior to or concurrently with the execution and
delivery of this Agreement, each Debtor shall:

                  (a) file such financing statements, assignments for security
         and other documents in such offices as may be necessary or as the
         Secured Party or the Representative may request to perfect the security
         interests granted by Section 3 of this Agreement;

                  (b) at Secured Party's request, deliver to the Secured Party
         or its Representative the originals of all Instruments together with,
         in the case of Instruments constituting promissory notes, allonges
         attached thereto showing such promissory notes to be payable to the
         order of a blank payee; and

                  (c) at Secured Party's request, but subject to the provisions
         of Section 4.1(d) above, deliver to the Secured Party or its
         Representative the originals of all

                                       21
<PAGE>

         Motor Vehicle titles, duly endorsed indicating the Secured Party's
         interest therein as lienholder.

         4.12 Termination. This Agreement and the Liens and security interests
granted hereunder shall not terminate until the termination of the Purchase
Agreement and the Notes and the full and complete performance and indefeasible
satisfaction of all the Liabilities (including, without limitation, the payment
in full in cash of all Liabilities), whereupon the Secured Party shall forthwith
cause to be assigned, transferred and delivered, against receipt but without any
recourse, warranty or representation whatsoever, any remaining Collateral to or
on the order of Debtors. The Secured Party shall also execute and deliver to
Debtors upon such termination and at Debtors' expense such Uniform Commercial
Code termination statements, certificates for terminating the liens on the Motor
Vehicles (if any) and such other documentation as shall be reasonably requested
by Debtors to effect the termination and release of the Liens and security
interests in favor of the Secured Party affecting the Collateral.

         4.13 Further Assurances. (a) At any time and from time to time, upon
the written request of the Secured Party or its Representative, and at the sole
expense of Debtors, Debtors will promptly and duly execute and deliver any and
all such further instruments, documents and agreements and take such further
actions as the Secured Party or its Representative may reasonably require in
order for the Secured Party to obtain the full benefits of this Agreement and of
the rights and powers herein granted in favor of the Secured Party, including,
without limitation, using Debtors' best efforts to secure all consents and
approvals necessary or appropriate for the assignment to the Secured Party of
any Collateral held by Debtors or in which a Debtor has any rights not
heretofore assigned, the filing of any financing or continuation statements
under the Uniform Commercial Code with respect to the liens and security
interests granted hereby, transferring Collateral to the Secured Party's
possession (if a security interest in such Collateral can be perfected solely by
possession), placing the interest of the Secured Party as lienholder on the
certificate of title of any Motor Vehicle (subject to the provisions of Section
4.1(d) above) and obtaining waivers of liens from landlords and mortgagees. Each
Debtor also hereby authorizes the Secured Party and its Representative to file
any such financing or continuation statement without the signature of such
Debtor to the extent permitted by applicable law.

         (b) Upon the request of the Secured Party, each Debtor shall procure
insurers' acknowledgments of any assignments of key man life insurance policies
which may be assigned to the Secured Party as additional security for the
Liabilities (to the extent any such assignments of key man life insurance
policies are required pursuant to the terms of the Transaction Documents) and
will take all such further action as required by any insurer or the Secured
Party in connection with any such assignment.

         4.14 Limitation on Duty of Secured Party. The powers conferred on the
Secured Party under this Agreement are solely to protect the Secured Party's
interest in the Collateral and shall not impose any duty upon it to exercise any
such powers. The Secured Party shall be accountable only for amounts that it
actually receives as a result of the exercise of such powers and neither the
Secured Party nor its Representative nor any

                                       22
<PAGE>

of their respective officers, directors, employees or agents shall be
responsible to Debtors for any act or failure to act, except for willful
misconduct. Without limiting the foregoing, the Secured Party and any
Representative shall be deemed to have exercised reasonable care in the custody
and preservation of the Collateral in their possession if such Collateral is
accorded treatment substantially equivalent to that which the relevant Secured
Party or any Representative, in its individual capacity, accords its own
property consisting of the type of Collateral involved, it being understood and
agreed that neither the Secured Party nor any Representative shall have any
responsibility for taking any necessary steps (other than steps taken in
accordance with the standard of care set forth above) to preserve rights against
any Person with respect to any Collateral.

         Also without limiting the generality of the foregoing, neither the
Secured Party nor any Representative shall have any obligation or liability
under any Contract or license by reason of or arising out of this Agreement or
the granting to the Secured Party of a security interest therein or assignment
thereof or the receipt by the Secured Party or any Representative of any payment
relating to any Contract or license pursuant hereto, nor shall the Secured Party
or any Representative be required or obligated in any manner to perform or
fulfill any of the obligations of Debtors under or pursuant to any Contract or
license, or to make any payment, or to make any inquiry as to the nature or the
sufficiency of any payment received by it or the sufficiency of any performance
by any party under any Contract or license, or to present or file any claim, or
to take any action to collect or enforce any performance or the payment of any
amounts which may have been assigned to it or to which it may be entitled at any
time or times.

         Section 5. Miscellaneous.

         5.1 No Waiver. No failure on the part of the Secured Party or any of
its Representatives to exercise, and no course of dealing with respect to, and
no delay in exercising, any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise by the Secured Party or
any of its Representatives of any right, power or remedy hereunder preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy. The rights and remedies hereunder provided are cumulative and may be
exercised singly or concurrently, and are not exclusive of any rights and
remedies provided by law.

         5.2 Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws and decisions of the State of New York,
without regard to conflict of law principles thereof.

         5.3 Notices. All notices, approvals, requests, demands and other
communications hereunder shall be delivered or made in the manner set forth in,
and shall be effective in accordance with the terms of, the Purchase Agreement;
provided, that, to the extent any such communication is being made or sent to a
Debtor that is not the Borrower, such communication shall be effective as to
such Debtor if made or sent to the Borrower in accordance with the foregoing.

                                       23
<PAGE>

         5.4 Amendments, Etc. The terms of this Agreement may be waived, altered
or amended only by an instrument in writing duly executed by the Debtor sought
to be charged or benefitted thereby and the Secured Party. Any such amendment or
waiver shall be binding upon the Secured Party and the Debtor sought to be
charged or benefitted thereby and their respective successors and assigns.

         5.5 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the respective successors and assigns of each of the
parties hereto, provided, that no Debtor shall assign or transfer its rights
hereunder without the prior written consent of the Secured Party. Secured Party,
in its capacity as collateral agent, may assign its rights hereunder without the
consent of Debtors, in which event such assignee shall be deemed to be Secured
Party hereunder with respect to such assigned rights.

         5.6 Counterparts; Headings. This Agreement may be authenticated in any
number of counterparts, all of which taken together shall constitute one and the
same instrument and any of the parties hereto may authenticate this Agreement by
signing any such counterpart. This Agreement may be authenticated by manual
signature, facsimile or, if approved in writing by Secured Party, electronic
means, all of which shall be equally valid. The headings in this Agreement are
for convenience of reference only and shall not alter or otherwise affect the
meaning hereof.

         5.7 Severability. If any provision hereof is invalid and unenforceable
in any jurisdiction, then, to the fullest extent permitted by law, (a) the other
provisions hereof shall remain in full force and effect in such jurisdiction and
shall be liberally construed in favor of the Secured Party and its
Representative in order to carry out the intentions of the parties hereto as
nearly as may be possible and (b) the invalidity or unenforceability of any
provision hereof in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction.

         5.9 SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS.
(A) EACH DEBTOR HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF
ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN THE CITY OF NEW
YORK, BOROUGH OF MANHATTAN IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT AND EACH DEBTOR HEREBY IRREVOCABLY AGREES THAT ALL
CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN
ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE
AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT
OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE
RIGHT OF SECURED PARTY TO BRING PROCEEDINGS AGAINST ANY DEBTOR IN THE COURTS OF
ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY A DEBTOR AGAINST SECURED
PARTY OR ANY AFFILIATE THEREOF INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN
ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTION

                                       24
<PAGE>

WITH THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK (AND
SECURED PARTY HEREBY SUBMITS TO THE JURISDICTION OF SUCH COURT). EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO
PROCESS BEING SERVED IN ANY SUCH ACTION OR PROCEEDING BY MAILING A COPY THEREOF
TO SUCH PARTY AT THE ADDRESS FOR NOTICES TO IT IN ACCORDANCE WITH SECTION 5.3 OF
THIS AGREEMENT AND AGREES THAT SUCH NOTICE 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.

         5.10 WAIVER OF RIGHT TO TRIAL BY JURY. EACH DEBTOR AND SECURED PARTY
EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION
OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES,
WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. EACH DEBTOR
AND SECURED PARTY EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE
TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE
PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED
BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING
WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF
THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

         5.11 Joint and Several. The obligations, covenants and agreements of
Debtors hereunder shall be the joint and several obligations, covenants and
agreements of each Debtor, whether or not specifically stated herein.

         5.12 Collateral Agent. Each Lender hereby irrevocably appoints and
authorizes the Secured Party to act as collateral agent (the "Collateral Agent")
on its behalf under this Agreement and to enter into each of the instruments,
documents and agreements, including any pledge agreement, guaranty, financing
statements, mortgage, Account Control Agreement or any other Security Documents
(the "Financing Documents"), to which Secured Party is a party (including in its
capacity as Collateral Agent) on such Lender's behalf and to take such actions
as Collateral Agent on such Lender's behalf and to exercise such powers under
the Financing Documents as are delegated to Collateral Agent or Secured Party
(as applicable) by the terms thereof, together with all such powers as are
reasonably incidental thereto. Secured Party is authorized and empowered

                                       25
<PAGE>

to amend, modify, or waive any provisions of this Agreement or the other
Financing Documents on behalf of the Funds.

         5.13 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.

         5.14 Entire Agreement; Amendments. This Agreement supersedes all other
prior oral or written agreements between each Debtor, Secured Party, the Lenders
and their affiliates and persons acting on their behalf with respect to the
matters discussed herein, and this Agreement and the Transaction Documents and
instruments referenced herein and therein contain the entire understanding of
the parties with respect to the matters covered herein and therein.

         [rest of page intentionally left blank; signature page follows]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered as of the day and year first above
written.

                                     DEBTORS:

                                     INFINITY, INC., a Colorado corporation

                                     By:_______________________________
                                     Name: James A. Tuell
                                     Title: Senior Vice President

                                     FEIN:_____________________________

                                     CONSOLIDATED OIL WELL SERVICES, INC.,
                                     a Kansas corporation

                                     By:_______________________________
                                     Name: Stephen D. Stanfield
                                     Title: President
                                     FEIN:_____________________________

                                     CIS-OKLAHOMA, INC., a Kansas corporation

                                     By:_______________________________
                                     Name: Stanton E. Ross
                                     Title: President
                                     FEIN:_____________________________

                                     INFINITY OIL & GAS OF WYOMING, INC.,
                                     a Wyoming corporation

                                     By:_______________________________
                                     Name: James A. Tuell
                                     Title: President
                                     FEIN:_____________________________

                                     INFINITY OIL & GAS OF KANSAS, INC.,
                                     a Kansas corporation

                                     By:_______________________________
                                     Name: Stanton E. Ross
                                     Title: President
                                     FEIN:_____________________________

Security Agreement

<PAGE>

                                     INFINITY OIL AND GAS OF TEXAS, INC.,
                                     a Delaware corporation

                                     By:_______________________________
                                     Name: James A. Tuell
                                     Title: President
                                     FEIN:_____________________________

Security Agreement

<PAGE>

                                     SECURED PARTY:

                                     PROMETHEAN ASSET MANAGEMENT L.L.C., in its
                                     capacity as collateral agent for
                                     the Lenders

                                     By:________________________________
                                     Name: Robert J. Brantman
                                     Title: Partner and Authorized Signatory

                                     LENDERS:

                                     Solely for the purposes of Section 5.12

                                     HFTP INVESTMENT L.L.C.

                                     By: Promethean Asset Management
                                         L.L.C., its Investment Manager

                                     By:_______________________________
                                     Name: Robert J. Brantman
                                     Title: Partner and Authorized Signatory

                                     AG DOMESTIC CONVERTIBLES, L.P.

                                     By: Angelo, Gordon & Co., L.P.,
                                         Managing Member of the General
                                         Partner

                                     By:_______________________________
                                     Name:_____________________________
                                     Title:______________________________

                                     AG OFFSHORE CONVERTIBLES, LTD.

                                     By: Angelo, Gordon & Co., L.P.,
                                         Director

                                     By:_______________________________
                                     Name:_____________________________
                                     Title:______________________________

Security Agreement

<PAGE>

                                    EXHIBIT A

                                 Form of Joinder
                          Joinder to Security Agreement

         The undersigned, ______________________________, hereby joins in the
execution of that certain Security Agreement dated as of ___________, 2005 (the
"Security Agreement") by Infinity, Inc., a Colorado corporation, Consolidated
Oil Well Services, Inc., a Kansas corporation, CIS-Oklahoma, Inc., a Kansas
corporation, Infinity Oil & Gas of Wyoming, Inc., a Wyoming corporation,
Infinity Oil and Gas of Texas, Inc., a Delaware corporation, Infinity Oil & Gas
of Kansas, Inc., a Kansas corporation, and _______________________, the Lenders
(as defined therein), and each other Person that becomes a Debtor thereunder
after the date hereof and pursuant to the terms thereof, to and in favor of
Promethean Asset Management L.L.C., in its capacity as collateral agent for the
Lenders. By executing this Joinder, the undersigned hereby agrees that it is a
Debtor thereunder and agrees to be bound by all of the terms and provisions of
the Security Agreement.

         The undersigned represents and warrants to Secured Party that:

         (a) all of the Equipment, Inventory and Goods owned by such Debtor is
located at the places as specified on Schedule I attached hereto;

         (b) except as disclosed on Schedule I, none of such Collateral is in
the possession of any bailee, warehousemen, processor or consignee;

         (c) the chief place of business, chief executive office and the office
where such Debtor keeps its books and records are located at the place specified
on Schedule I;

         (d) such Debtor (including any Person acquired by such Debtor) does not
do business or has not done business during the past five years under any
tradename or fictitious business name, except as disclosed on Schedule II;

         (e) all Copyrights, Patents and Trademarks owned or licensed by the
undersigned are listed in Schedules III, IV and V, respectively;

         (f) all Deposit Accounts, securities accounts, brokerage accounts and
other similar accounts maintained by such Debtor, and the financial institutions
at which such accounts are maintained, are listed on Schedule VI;

         (g) all Commercial Tort Claims of such Debtor are listed on Schedule
VII;

         (h) all interests in real property and mining rights held by such
Debtor are listed on Schedule VIII; and

Security Agreement

<PAGE>

         (i) all other representations and warranties made by the Debtors in the
Security Agreement are true, complete and correct in all respects as of the date
hereof.

                                     ________________, a _____ corporation

                                     By:______________________________
                                     Title:___________________________
                                     FEIN:____________________________

Security Agreement

<PAGE>

                                   SCHEDULE B

LENDER'S NAME                        LENDER'S ADDRESS
                                     AND FACSIMILE NUMBER

HFTP Investment L.L.C.               c/o Promethean Asset Management L.L.C.
                                     750 Lexington Ave., 22nd Floor
                                     New York, New York  10022
                                     Attention: Robert J. Brantman
                                     Telephone: (212) 702-5200
                                     Facsimile: (212) 758-9620

AG Domestic Convertibles, L.P.       c/o Angelo, Gordon & Co.
                                     245 Park Avenue
                                     New York, New York  10167
                                     Attention: Gary I. Wolf
                                     Telephone: (212) 692-2058
                                     Facsimile: (212) 867-6449

AG Offshore Convertibles, Ltd.       c/o Angelo, Gordon & Co.
                                     245 Park Avenue
                                     New York, New York  10167
                                     Attention: Gary I. Wolf
                                     Telephone: (212) 692-2058
                                     Facsimile: (212) 867-6449

Security Agreement

<PAGE>

                                   SCHEDULE I
                                       TO
                               SECURITY AGREEMENT

UCC Financing Statements; Location of Equipment, Inventory, Goods and Books and
 Records; Goods in Possession of Consignees, Bailees, Warehousemen, Agents and
           Processors; Debtors' Legal Names; State of Incorporation;
          Organizational Identification Number; Chief Executive Office.

I.       DEBTOR:  _______________________________________

         1        Legal Name of Debtor:                 ________________________

         2        State of Incorporation:               ________________________

         3        Organizational Identification Number: ________________________

         4        Chief Executive Office:               ________________________

         5        Location of Books and Records:        ________________________

         6        Locations of Equipment, Inventory     ________________________
                  and Goods:                            ________________________
                                                        ________________________

         7        Locations of Goods in Possession of   ________________________
                  Consignees, Bailees, Warehousemen,    ________________________
                  Agents and Processors (including      ________________________
                  names of such consignees, bailees,
                  etc.):                                ________________________

         8        Jurisdictions For UCC Filings:        ________________________

Security Agreement

<PAGE>

                                   SCHEDULE II
                                       TO
                               SECURITY AGREEMENT

                         Tradenames and Fictitious Names
                          (Present and Past Five Years)

1        _______________________________:               ________________________
                                                        ________________________

Security Agreement

<PAGE>

                                  SCHEDULE III
                                       TO
                               SECURITY AGREEMENT

  U.S. Copyright Registrations; Foreign Copyright Registrations; U.S. Copyright
        Applications; Foreign Copyright Applications; Copyright Licenses

                          U.S. COPYRIGHT REGISTRATIONS

<TABLE>
<CAPTION>
HOLDER            MARK      REGISTRATION NUMBER      REGISTRATION DATE
------            ----      -------------------      -----------------
<S>               <C>       <C>                      <C>
</TABLE>

                     FOREIGN COPYRIGHT REGISTRATIONS

<TABLE>
<CAPTION>
HOLDER            MARK               COUNTRY         REGISTRATION NUMBER      REGISTRATION DATE
------            ----               -------         -------------------      -----------------
<S>               <C>                <C>             <C>                      <C>
</TABLE>

                           U.S. COPYRIGHT APPLICATIONS

<TABLE>
<CAPTION>
                                     APPLICATION              APPLICATION
HOLDER            MARK                 NUMBER                     DATE
------            ----               -----------              -----------
<S>               <C>                <C>                      <C>
</TABLE>

                         FOREIGN COPYRIGHT APPLICATIONS

<TABLE>
<CAPTION>
HOLDER            MARK               COUNTRY         APPLICATION NUMBER       APPLICATION DATE
------            ----               -------         -------------------      -----------------
<S>               <C>                <C>             <C>                      <C>
</TABLE>

Security Agreement

<PAGE>

                               COPYRIGHT LICENSES

<TABLE>
<CAPTION>
LICENSED MARKS                   NAME OF AGREEMENT               PARTIES        DATE OF AGREEMENT
--------------                   -----------------               -------        -----------------
<S>                              <C>                             <C>            <C>
</TABLE>

Security Agreement

<PAGE>

                                   SCHEDULE IV
                                       TO
                               SECURITY AGREEMENT

      U.S. Patent Registrations; Foreign Patent Registrations; U.S. Patent
           Applications; Foreign Patent Applications; Patent Licenses

                            U.S. PATENT REGISTRATIONS

<TABLE>
<CAPTION>
                                     REGISTRATION             REGISTRATION
HOLDER            PATENT                NUMBER                    DATE
------            ------             ------------             ------------
<S>               <C>                <C>                      <C>
</TABLE>

                          FOREIGN PATENT REGISTRATIONS

<TABLE>
<CAPTION>
HOLDER            PATENT             COUNTRY         REGISTRATION NUMBER      REGISTRATION DATE
------            ------             -------         -------------------      -----------------
<S>               <C>                <C>             <C>                      <C>
</TABLE>

                            U.S. PATENT APPLICATIONS

<TABLE>
<CAPTION>
                                     APPLICATION              APPLICATION
HOLDER            PATENT                NUMBER                   DATE
------            ------             ------------             ------------
<S>               <C>                <C>                      <C>
</TABLE>
                           FOREIGN PATENT APPLICATIONS

<TABLE>
<CAPTION>
HOLDER            PATENT             COUNTRY         APPLICATION NUMBER       APPLICATION DATE
------            ------             -------         ------------------       ----------------
<S>               <C>                <C>             <C>                      <C>
</TABLE>

Security Agreement

<PAGE>

                                 PATENT LICENSES

<TABLE>
<CAPTION>
LICENSED PATENTS           NAME OF AGREEMENT         PARTIES                  DATE OF AGREEMENT
----------------           -----------------         -------                  -----------------
<S>                        <C>                       <C>                      <C>
</TABLE>

Security Agreement

<PAGE>

                                   SCHEDULE V
                                       TO
                               SECURITY AGREEMENT

  U.S. Trademark Registrations; Foreign Trademark Registrations; U.S. Trademark
        Applications; Foreign Trademark Applications; Trademark Licenses

                          U.S. TRADEMARK REGISTRATIONS

<TABLE>
<CAPTION>
                           REGISTRATION         REGISTRATION
HOLDER            MARK        NUMBER                DATE
------            ----     ------------         ------------
<S>               <C>      <C>                  <C>
</TABLE>

                         FOREIGN TRADEMARK REGISTRATIONS

<TABLE>
<CAPTION>
HOLDER            MARK     COUNTRY        REGISTRATION NUMBER      REGISTRATION DATE
------            ----     -------        -------------------      -----------------
<S>               <C>      <C>            <C>                      <C>
</TABLE>

                           U.S. TRADEMARK APPLICATIONS

<TABLE>
<CAPTION>
                           APPLICATION          APPLICATION
HOLDER            MARK        NUMBER               DATE
------            ----     ------------         ------------
<S>               <C>      <C>                  <C>
</TABLE>

                         FOREIGN TRADEMARK APPLICATIONS

<TABLE>
<CAPTION>
HOLDER            MARK     COUNTRY              APPLICATION NUMBER            APPLICATION DATE
------            ----     -------              ------------------            ----------------
<S>               <C>      <C>                  <C>                           <C>
</TABLE>

Security Agreement

<PAGE>

                               TRADEMARK LICENSES

<TABLE>
<CAPTION>
LICENSED MARKS    NAME OF AGREEMENT          PARTIES        DATE OF AGREEMENT
--------------    -----------------          -------        -----------------
<S>               <C>                        <C>            <C>
</TABLE>

Security Agreement

<PAGE>

                                   SCHEDULE VI
                                       TO
                               SECURITY AGREEMENT

                     Depository Accounts and Other Accounts

<TABLE>
<CAPTION>
                                                      Type of Account (with general
Name of Account Holder               Bank                        description)            Account Number
----------------------               ----             ------------------------------     --------------
<S>                                  <C>              <C>                                <C>
</TABLE>

                                  SCHEDULE VII
                                       TO
                               SECURITY AGREEMENT

                             Commercial Tort Claims

Security Agreement

<PAGE>

                                  SCHEDULE VIII
                                       TO
                               SECURITY AGREEMENT

                  Interests in Real Property and Mining Rights

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]