Document:

EXHIBIT 10-C

              AMENDMENT NO. 1 TO THE SECURITIES PURCHASE AGREEMENT

            This Amendment No. 1 to the Securities Purchase Agreement dated
February 5, 2002 (the "Original Agreement") by and among Infinite Group, Inc., a
Delaware corporation (the "Company"), and Laurus Master Fund, Ltd. (the
"Purchaser") is made and entered into as of June 21, 2002.

            The Company and the Purchaser hereby amend the Original Agreement
pursuant to Section 12.6 of the Original Agreement, as follows:

                  1. The introductory paragraph of Section 6.12 is hereby
            amended and restated in its entirety to read as follows:

                  For so long as at least 20% of the aggregate principal amount
            of this Note and any other notes from the Company to the Purchaser
            are outstanding, the Company, without the prior written consent of
            the Purchaser, shall not:

                  2. Section 9.1(d) is hereby amended and restated in its
            entirety to read as follows:

            The Company shall use its reasonable commercial efforts to cause to
            be declared effective a Form S-3 registration statement (or such
            other form that it is eligible to use) within 75 days of June __,
            2002 (the "Effective Date") in order to register the Conversion
            Shares and the Warrant Shares issued or issuable with respect to all
            Notes and Warrants to be issued hereunder (the "Registrable
            Securities") for resale and distribution under the Securities Act.
            The holder thereof shall provide the Company with such information
            as the Company reasonably requests. The Company will register not
            less than a number of shares of Common Stock in the aforedescribed
            registration statement that is equal to the Warrant Shares and 125%
            of the Conversion Shares issuable at the Conversion Prices set forth
            in the Notes, that would be in effect on the Closing Date or the
            date of filing of such registration statement (employing the
            conversion price which would result in the greater number of
            Shares). The Registrable Securities shall be reserved and set aside
            exclusively for the benefit of the Purchaser and the holders of the
            Warrants, as the case may be, and not issued, employed or reserved
            for anyone other than the Purchaser and the holders of the Warrants.
            Such registration statement will be promptly amended or additional
            registration statements will be promptly filed by the Company as
            necessary to register additional Company Shares to allow the public
            resale of all Common Stock included in and issuable by virtue of the
            Registrable Securities.
<PAGE>

            3. Section 9.4 is hereby amended and restated in its entirety to
            read as follows:

                  Non-Registration Events. The Company and the Purchaser agree
            that the Seller will suffer damages if any registration statement
            required under Section 9.1(d) above is not declared effective by the
            SEC on or before the Effective Date, and maintained in the manner
            and within the time periods contemplated by Section 9 hereof, and it
            would not be feasible to ascertain the extent of such damages with
            precision. Accordingly, if the registration statement on Form S-3 or
            such other form as described in Section 9.1(d) is not declared
            effective on or before the sooner of the Effective Date, or within
            five days of receipt by the Company of a communication from the SEC
            that the registration statement described in Section 9.1(d) will not
            be reviewed, or (ii) any registration statement described in Section
            9.1(d) is filed and declared effective but shall thereafter cease to
            be effective (without being succeeded immediately by an additional
            registration statement filed and declared effective) for a period of
            time which shall exceed 30 days in the aggregate per year but not
            more than 20 consecutive calendar days (defined as a period of 365
            days commencing on the date the Registration Statement is declared
            effective) (each such event referred to in this Section 9.4 is
            referred to herein as a "Non-Registration Event"), then, for so long
            as such Non-Registration Event shall continue, (i) the Company shall
            pay in cash as Liquidated Damages to each holder of any Registrable
            Securities an amount equal to two percent (2%) per month or part
            thereof during the pendency of such Non-Registration Event of the
            principal of the Notes issued in connection with the Offering,
            whether or not converted, then owned of record by such holder or
            issuable as of or subsequent to the occurrence of such
            Non-Registration Event and (ii) the Conversion Price as defined in
            Section 2.1 of the Notes shall be reduced by 10% for each 30-day
            period following the Effective Date that the Registration Statement
            is not declared effective by the SEC. Payments to be made pursuant
            to this Section shall be due and payable immediately upon demand in
            immediately available funds. In the event a Mandatory Redemption
            Payment is demanded from the Company by the holder pursuant to
            Section 8.2 of this Agreement, then the Liquidated Damages described
            in this Section 9.4 shall no longer accrue on the portion of the
            purchase price underlying the Mandatory Redemption Payment, from and
            after the date the holder receives the Mandatory Redemption Payment.
            It shall be deemed a Non-Registration Event to the extent that all
            the Common Stock included in the Registrable Securities and
            underlying the Securities is not included in an effective
            registration statement as of and after the Effective Date at the
            conversion prices in effect from and after the Effective Date.

            4. Section 12.8 is hereby amended and restated in its entirety to
            read as follows:

                  All notices required or permitted hereunder shall be in
            writing and shall be deemed effectively given: (a) upon personal
            delivery to the party to be notified, (b) when sent by confirmed
            telex or facsimile if sent during normal business hours of the
            recipient, if not, then on the next business day, (c) five days
            after having been sent by registered or certified mail, return
            receipt requested, postage prepaid, or (d) one day after deposit
            with

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<PAGE>

            a nationally recognized overnight courier, specifying next day
            delivery, with written verification of receipt. All communications
            shall be sent to the Company at the address as set forth on the
            signature page hereof, with a copy to Kenneth S. Rose, Esq., Morse,
            Zelnick, Rose & Lander, Esq., 450 Park Avenue, Suite 902, New York,
            New York, facsimile number (212) 838-9190 and to the Purchaser at
            the address set forth on the signature page hereto for such
            Purchaser, with a copy in the case of the Purchaser to Daniel M.
            Laifer, Esq., 152 West 57th Street, 4th Floor, New York, NY 10019,
            facsimile number (212) 541-4434, or at such other address as the
            Company or the Purchaser may designate by ten days advance written
            notice to the other parties hereto.

            5. Except as otherwise provided herein, the Original Agreement shall
            in all other respects remain in full force and effect.

            6. This Agreement may be executed in more than one counterpart with
            the same effect as if the parties executing the several counterparts
            had all executed one document.

            7. This amendment shall be effective as of June 21, 2002.

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<PAGE>

            IN WITNESS WHEREOF, the undersigned hereby execute this Amendment as
a deed as of the date set forth above.

Infinite Group, Inc.

/s/ Clifford G. Brockmyre II
-------------------------------
Name:  Clifford G. Brockmyre II
Title: Chairman

Laurus Master Fund, Ltd.

/s/ David Grin
-------------------------------
Name:  David Grin
Title: Director

                                       4
<PAGE>

                ALLONGE TO PROMISSORY NOTE DATED FEBRUARY 5, 2002

      Reference is hereby made to the Note dated February 5, 2002 in the amount
of $1,000,000 (the "Note") by and between Infinite Group, Inc., a Delaware
corporation (the "Maker"), with principal offices located at 2364 Post Road,
Warwick, Rhode Island 02886, and LAURUS MASTER FUND, LTD. (the "Payee"),
residing at c/o Ironshore Corporate Services Ltd., P.O. Box 1234 G.T.,
Queensgate House, South Church Street, Grand Cayman, Cayman Islands.

            Maker and Payee hereby agree to amend the Note in accordance with
the following terms:

      1.    The Maximum Base Price, as defined in Section 2.1(b) shall be $2.00;

      2.    The introductory paragraph to Article II is hereby amended in its
            entirety to read as follows:

            At any time during the term of this Note, the Borrower may deliver a
            written notification (the "Optional Conversion Notification") to the
            Holder setting forth the portion of the principal amount of the Note
            and/or interest due and payable (the "Investment Amount") that the
            Borrower authorizes the Holder to exercise its conversion rights
            with respect thereto, subject to the terms and provisions set forth
            below. Except (i) upon the occurrence of an Event of Default
            hereunder or (ii) in the event that the market price of the
            Borrower's Common Stock is greater than 125% of the Maximum Base
            Price (as defined below) for the three consecutive trading days
            prior to conversion, unless the Borrower delivers an Optional
            Conversion Notification to the Holder, the Holder will not be
            permitted to exercise its rights to convert any portion of the Note
            to Common Stock.

      3.    Section 1.3 is hereby amended in its entirety to read as follows:

      (a)   Interest payable on this Note shall accrue at the annual rate of
            five percent (5%) and be payable in arrears commencing June 30, 2002
            and on the last day of each month thereafter (with the payment on
            June 30, 2002 to cover the period from April 1, 2002 through June
            30, 2002), and on the Maturity Date, accelerated or otherwise, when
            the principal and remaining accrued but unpaid interest shall be due
            and payable, or sooner as described below.

      (b)   In addition to the interest rate set forth above in Section 1.3(a),
            an additional fee on this Note shall accrue at the annual rate of
            ten percent (10%) and be payable in arrears commencing June 30, 2002
            and on the last day of each month thereafter (with the payment on
            June 30, 2002 to cover the period from April 1, 2002 through June
            30, 2002), and on the Maturity Date, accelerated or otherwise, when
            the principal and accrued but unpaid interest shall be due and
            payable, or sooner as described below. Notwithstanding the
            foregoing, for every $100,000 in principal amount of the Note that
            the Holder actually converts into Common Stock, the annual rate of
            the additional fees payable as set forth in this subsection shall be
            reduced by 1% and shall be deemed the rate retroactive to the date
            hereof. In such

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<PAGE>

            event, any amounts already received by the Holder with respect to
            such additional fees shall be rebated to the Borrower.

      4.    There are no other modifications to the Note.

                                  INFINITE GROUP, INC.

                                  By: /s/ Clifford G. Brockmyre II
                                     -------------------------------------------
                                  Name/Title: Clifford G. Brockmyre II/Chairman
                                  Dated: June 21, 2002

AGREED AND ACCEPTED:

LAURUS MASTER FUND, LTD.

By: /s/ David Grinn
  --------------------------

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<PAGE>

                    ALLONGE TO WARRANT DATED FEBRUARY 5, 2002

      Reference is hereby made to the Common Stock Purchase Warrant dated
February 5, 2002 (the "Warrant") granting Laurus Master Fund, Ltd. ("Laurus")
the right to purchase of 50,000 shares of common stock of Infinite Group, Inc.,
a Delaware corporation (the "Company"), with principal offices located at 2364
Post Road, Warwick, Rhode Island 02886.

            The Company and Laurus hereby agree to amend the Warrant in
      accordance with the following terms:

      1.    The Purchase Price, as defined in the Warrant, shall be $2.40;

      2.    There are no other modifications to the Warrant.

                                  INFINITE GROUP, INC.

                                  By: /s/ Clifford G. Brockmyre II
                                      -----------------------------------------
                                  Name/Title: Clifford G. Brockmyre II/Chairman
                                  Dated: June 21, 2002

AGREED AND ACCEPTED:

LAURUS MASTER FUND, LTD.

By: /s/ David Grinn
   -------------------------

                                       1EXHIBIT 10-D

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
OR ANY OTHER APPLICABLE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS.
NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD,
PLEDGED, TRANSFERRED, ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR IN A TRANSACTION
WHICH IS EXEMPT FROM REGISTRATION UNDER THE PROVISIONS OF THE SECURITIES ACT.

                             STOCK PURCHASE WARRANT

                  To Purchase 200,000 shares of Common Stock of

                              Infinite Group, Inc.

      THIS CERTIFIES that, for value received, Rosecrest Venture Capital (the
"Holder"), is entitled upon the terms and subject to the conditions hereinafter
set forth, at any time on or after April 15, 2002 (the "Initial Exercise Date")
and on or prior to the close of business on April 14, 2005 (the "Termination
Date") but not thereafter, to subscribe for and purchase from Infinite Group,
Inc., a Delaware corporation (the "Company"), 200,000 share (the "Warrant
shares") of Common Stock, $.001 par value, of the Company (the "Common Stock").
The purchase price of one share of Common Stock (the "Exercise Price") under
this Warrant shall be $3.00. The Exercise Price and the number of shares for
which the Warrant is exercisable shall be subject to adjustment as provided
herein. Capitalized terms used and not otherwise defined herein shall have the
meanings set forth for such terms in that certain Stock Purchase Agreement,
dated April 15, 2002, between the Company and the Holder. In the event of a
conflict between the terms of the Purchase Agreement and this Warrant, this
Warrant shall control.

      1. Title to Warrant. Prior to the Termination Date and subject to
compliance with applicable laws, this Warrant and all rights hereunder are
transferable, in whole or in part, at the office or agency of the Company by the
holder hereof in person or by duly authorized attorney, upon surrender of this
Warrant together with the Assignment Form annexed hereto properly endorsed.

      2. Authorization of Shares. The Company covenants that all shares of
Common Stock which may be issued upon the exercise of rights represented by this
Warrant will, upon exercise of the rights represented by this Warrant, be duly
authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges in respect of the issue thereof (other than taxes in
respect of any transfer occurring contemporaneously with such issue).

      3. Exercise of Warrant. Except as provided in Section 4 herein, exercise
of the purchase rights represented by this Warrant may be made at any time or
times on or after the

<PAGE>

Initial Exercise Date, and before the close of business on the Termination Date.
Exercise of this Warrant or any part hereof shall be effected by the surrender
of this Warrant and the Notice of Exercise Form annexed hereto duly executed, at
the office of the Company (or such other office or agency of the Company as it
may designate by notice in writing to the registered holder hereof at the
address of such holder appearing on the books of the Company) and upon payment
of the Exercise Price of the shares thereby purchased by wire transfer or
cashier's check drawn on a United States bank, the holder of this Warrant shall
be entitled to receive a certificate for the number of shares of Common Stock so
purchased. Certificates for shares purchased hereunder shall be delivered to the
holder hereof within five (5) Trading Days after the date on which this Warrant
shall have been exercised as aforesaid. This Warrant shall be deemed to have
been exercised and such certificate or certificates shall be deemed to have been
issued, and Holder or any other person so designated to be named therein shall
be deemed to have become a holder of record of such Shares for all purposes, as
of the date the Warrant has been exercised by payment to the Company of the
Exercise Price and all taxes required to be paid by Holder, if any, pursuant to
Section 5 prior to the issuance of such shares, have been paid. If this Warrant
shall have been exercised in part, the Company shall, at the time of delivery of
the certificate or certificates representing Warrant Shares, deliver to Holder a
new Warrant evidencing the rights of Holder to purchase the unpurchased shares
of Common Stock called for by this Warrant, which new Warrant shall in all other
respects be identical with this Warrant. Commencing on the 180th day after the
Date above, if a Registration Statement covering the resale of the Warrant
Shares is not then effective, this Warrant may also be exercised by means of a
"cashless exercise" in which the holder shall be entitled to receive a
certificate for the number of shares equal to the quotient obtained by dividing
[(A-B) (X)] by (A), where:

(A) = the average of the high and low trading prices per share of Common Stock
on the Trading Day preceding the date of such election;

(B) = the Exercise Price of the Warrants; and (X) = the number of shares
issuable upon exercise of the Warrants in accordance with the terms of this
Warrant.

      4. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share, which Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to the Exercise Price.

      5. Charges, Taxes and Expenses. Issuance of certificates for shares of
Common Stock upon the exercise of this Warrant shall be made without charge to
the holder hereof for any issue or transfer tax or other incidental expense in
respect of the issuance of such certificate, all of which taxes and expenses
shall be paid by the Company, and such certificates shall be issued in the name
of the holder of this Warrant or in such name or names as may be directed by the
holder of this Warrant; provided, however, that in the event certificates for
shares of Common Stock are to be issued in a name other than the name of the
holder of this Warrant, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the holder
hereof; and the Company may require, as a condition thereto, the payment of a
sum sufficient to reimburse it for any transfer tax incidental thereto.

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<PAGE>

      6. Closing of Books. The Company will not close its shareholder books or
records in any manner that prevents the timely exercise of this Warrant.

      7. Transfer, Division and Combination. (a) Subject to compliance with any
applicable securities laws, transfer of this Warrant and all rights hereunder,
in whole or in part, shall be registered on the books of the Company to be
maintained for such purpose, upon surrender of this Warrant at the principal
office of the Company, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by Holder or its agent
or attorney and funds sufficient to pay any transfer taxes payable upon the
making of such transfer. Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees and in the denomination or denominations specified in such
instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled. A Warrant, if properly assigned, may be exercised by a
new holder for the purchase of shares of Common Stock without having a new
Warrant issued.

            (b) This Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office of the Company, together with a
written notice specifying the names and denominations in which new Warrants are
to be issued, signed by Holder or its agent or attorney. Subject to compliance
with Section 7(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

            (c) The Company shall prepare, issue and deliver at its own expense
(other than transfer taxes) the new Warrant or Warrants under this Section 7.

            (d) The Company agrees to maintain, at its aforesaid office, books
for the registration and the registration of transfer of the Warrants.

      8. No Rights as Shareholder until Exercise. This Warrant does not entitle
the holder hereof to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price, the Warrant Shares so purchased shall
be and be deemed to be issued to such holder as the record owner of such shares
as of the close of business on the later of the date of such surrender or
payment.

      9. Loss, Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant certificate
or any stock certificate relating to the Warrant Shares, and in case of loss,
theft or destruction, or indemnity or security reasonably satisfactory to it
(which shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company
will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock certificate.

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<PAGE>

      10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for
the taking of any action or the expiration of any right required or granted
herein shall be a Saturday, Sunday or a legal holiday, then such action may be
taken or such right may be exercised on the next succeeding day not a Saturday,
Sunday or legal holiday.

      11. Adjustments of Exercise Price and Number of Warrant Shares.

            (a) Stock Splits, etc. The number and kind of securities purchasable
upon the exercise of this Warrant and the Exercise Price shall be subject to
adjustment from time to time upon the happening of any of the following. In case
the Company shall (i) pay a dividend in shares of Common Stock or make a
distribution in shares of Common Stock to holders of its outstanding Common
Stock, (ii) subdivide its outstanding shares of Common Stock into a greater
number of shares of Common Stock, (iii) combine its outstanding shares of Common
Stock into a smaller number of shares of Common Stock or (iv) issue any shares
of its capital stock in a reclassification of the Common Stock, then the number
of Warrant Shares purchasable upon exercise of this Warrant immediately prior
thereto shall be adjusted so that the holder of this Warrant shall be entitled
to receive the kind and number of Warrant Shares or other securities of the
Company which he would have owned or have been entitled to receive had such
Warrant been exercised in advance thereof. Upon each such adjustment of the kind
and number of Warrant Shares or other securities of the Company which are
purchasable hereunder, the holder of this Warrant shall thereafter be entitled
to purchase the number of Warrant Shares or other securities resulting from such
adjustment at an Exercise Price per Warrant Share or other security obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the number of Warrant Shares purchasable pursuant hereto immediately prior to
such adjustment and dividing by the number of Warrant Shares or other securities
of the Company resulting from such adjustment. An adjustment made pursuant to
this paragraph shall become effective immediately after the effective date of
such event retroactive to the record date, if any, for such event.

            (b) Reorganization, Reclassification, Merger, Consolidation or
Disposition of Assets. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of all or substantially all its property,
assets or business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation ("Other
Property"), are to be received by or distributed to the holders of Common Stock
of the Company, then Holder shall have the right thereafter to receive, upon
exercise of this Warrant, the number of shares of common stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and Other Property receivable upon or as a result of such

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<PAGE>

reorganization, reclassification, merger, consolidation or disposition of assets
by a holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such event. In case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Company) shall expressly assume the
due and punctual observance and performance of each and every covenant and
condition of this Warrant to be performed and observed by the Company and all
the obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board of
Directors of the Company) in order to provide for adjustments of shares of
Common Stock for which this Warrant is exercisable which shall be as nearly
equivalent as practicable to the adjustments provided for in this Section 11.
For purposes of this Section 11, "common stock of the successor or acquiring
corporation" shall include stock of such corporation of any class which is not
preferred as to dividends or assets over any other class of stock of such
corporation and which is not subject to redemption and shall also include any
evidences of indebtedness, shares of stock or other securities which are
convertible into or exchangeable for any such stock, either immediately or upon
the arrival of a specified date or the happening of a specified event and any
warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 11 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

      12. Notice of Adjustment. Whenever the number of Warrant Shares or number
or kind of securities or other property purchasable upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
promptly mail by registered or certified mail, return receipt requested, to the
holder of this Warrant notice of such adjustment or adjustments setting forth
the number of Warrant Shares (and other securities or property) purchasable upon
the exercise of this Warrant and the Exercise Price of such Warrant Shares (and
other securities or property) after such adjustment, setting forth a brief
statement of the facts requiring such adjustment and setting forth the
computation by which such adjustment was made. Such notice, in the absence of
manifest error, shall be conclusive evidence of the correctness of such
adjustment.

      13. Notice of Corporate Action. If at any time:

            (a) the Company shall take a record of the holders of its Common
Stock for the purpose of entitling them to receive a dividend or other
distribution, or any right to subscribe for or purchase any evidences of its
indebtedness, any shares of stock of any class or any other securities or
property, or to receive any other right, or

            (b) there shall be any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any
consolidation or merger of the Company with, or any sale, transfer or other
disposition of all or substantially all the property, assets or business of the
Company to, another corporation or,

            (c) there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company, then, in any one or more of such
cases, the Company shall give to Holder (i) at least 30 days' prior written
notice of the date on which a record date shall be selected for such dividend,
distribution or right or for determining rights to vote in respect of any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, liquidation or winding up, and (ii) in the case of any such
reorganization, reclassification, merger,

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<PAGE>

consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up, at least 15 days' prior written notice of the date when the same shall take
place. Such notice in accordance with the foregoing clause also shall specify
(i) the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, the date on which the holders of Common Stock
shall be entitled to any such dividend, distribution or right, and the amount
and character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such disposition, dissolution, liquidation or winding
up. Each such written notice shall be sufficiently given if addressed to Holder
at the last address of Holder appearing on the books of the Company and
delivered in accordance with Section 16(d).

      14. Authorized Shares. The Company covenants that during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such
Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Principal Market
upon which the Common Stock may be listed.

            The Company shall not by any action, including, without limitation,
amending its certificate 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 of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder
against impairment. Without limiting the generality of the foregoing, the
Company will (a) not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the amount payable therefore
upon such exercise immediately prior to such increase in par value, (b) take all
such action 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, and (c) use all commercially reasonable
efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be necessary to enable
the Company to perform its obligations under this Warrant.

            Upon the request of Holder, the Company will at any time during the
period this Warrant is outstanding acknowledge in writing, in form reasonably
satisfactory to Holder, the continuing validity of this Warrant and the
obligations of the Company hereunder.

            Before taking any action which would cause an adjustment reducing
the current Exercise Price below the then par value, if any, of the shares of
Common Stock issuable upon exercise of the Warrants, the Company shall take any
corporate action which may be necessary

                                       6
<PAGE>

in order that the Company may validly and legally issue fully paid and
non-assessable shares of such Common Stock at such adjusted Exercise Price.

            Before taking any action that would result in an adjustment in the
number of shares of Common Stock for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions
thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof.

      15. Miscellaneous.

            (a) Jurisdiction. This Warrant shall be binding upon any successors
or assigns of the Company. This Warrant shall constitute a contract under the
laws of New York without regard to its conflict of law principles or rules, and
be subject to arbitration pursuant to the terms set forth in the Purchase
Agreement.

            (b) Restrictions. The holder hereof acknowledges that the Warrant
Shares acquired upon the exercise of this Warrant, if not registered, will have
restrictions upon resale imposed by state and federal securities laws.

            (c) Nonwaiver and Expenses. No course of dealing or any delay or
failure to exercise any right hereunder on the part of Holder shall operate as a
waiver of such right or otherwise prejudice Holder's rights, powers or remedies,
notwithstanding all rights hereunder terminate on the Termination Date. If the
Company willfully fails to comply with any material provision of this Warrant,
the Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys' fees,
including those of appellate proceedings, incurred by Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

            (d) Notices. Any notice, request or other document required or
permitted to be given or delivered to the holder hereof by the Company shall be
delivered in accordance with the notice provisions of the Purchase Agreement.

            (e) Limitation of Liability. No provision hereof, in the absence of
affirmative action by Holder to purchase shares of Common Stock, and no
enumeration herein of the rights or privileges of Holder hereof, shall give rise
to any liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

            (f) Remedies. Holder, in addition to being entitled to exercise all
rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Warrant. The Company agrees that
monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of the provisions of this Warrant and hereby agrees to
waive the defense in any action for specific performance that a remedy at law
would be adequate.

                                       7
<PAGE>

            (g) Successors and Assigns. Subject to applicable securities law,
this Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares.

            (h) Indemnification. The Company agrees to indemnify and hold
harmless Holder from and against any liabilities, obligations, losses, damages,
penalties, actions, judgements, suits, claims, costs, attorneys' fees, expenses
and disbursements of any kind which may be imposed upon, incurred by or asserted
against Holder in any manner relating to or arising out of any failure of the
Company to perform or observe in any material respect any of its covenants,
agreements, undertakings or obligations set forth in this Warrant: provided,
however, that the Company will not be liable hereunder to the extent that any
liabilities, obligations, losses, damages, penalties, actions, judgements,
suits, claims, costs, attorneys' fees, expenses or disbursements are found in a
final non-appealable judgement by a court to have resulted from Holder's
negligence, bad faith or willful misconduct in its capacity as a stockholder or
warrantholder of the Company.

            (i) Amendment. This Warrant may be modified or amended or the
provisions hereof waived with the written consent of the Company and the Holder.

            (j) Severability. Wherever possible, each provision of this Warrant
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

            (k) Headings. The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated: April 15, 2002

                           Infinite Group, Inc.

                           By: /s/Clifford G. Brockmyre II
                               -----------------------------------------
                               Clifford G. Brockmyre II, President & CEO

                                       8

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