On March 17, 2023, Infinite Group, Inc., as borrower, entered into an Amended and Restated Line of Credit Note and Agreement effective as of October 1, 2022, which amended and restated that certain Line of Credit Note and Agreement dated March 14, 2016 by and between the Company and James V. Leonardo. The New Note has a principal amount of $250,000 and accrues interest on the unpaid Principal Amount at a rate of 10% per annum. Also on March 17, 2023, James Villa, the Company's Chief Executive Officer, entered into a personal guarantee with the Holder to personally guarantee the obligations of the Company under the New Note.

Under the terms of the New Note, the Company has agreed to make a one-time payment of $16,667 for interest accrued on the Original Note for the four-month period covering June 2022 through September 2022. The Company has also agreed to make quarterly interest payments of $6,250, commencing on December 31, 2022, and continuing through and including September 30, 2023. The Company has the right to prepay amounts due under the New Note, in whole or in part, at any time, and from time to time, without premium or penalty.

If an Event of Default (as defined in the New Note) occurs, the Company shall have 30 days to cure from the date on which the Holder has provided the Company with written notice specifying the Event of Default. Should the Company fail to cure such default, the Holder may declare all or any part of the unpaid Principal Amount, unpaid interest, or any other amounts owing under the New Note to be immediately due and payable.