Amendment No. 1 to Promissory Note between PrivilegeOne Networks, Inc., PrivilegeOne Networks, LLC, and Calton, Inc.

Summary

This amendment updates a promissory note originally issued by PrivilegeOne Networks, Inc. to Calton, Inc., with obligations now assumed by PrivilegeOne Networks, LLC. The amendment changes the interest rate terms to 10% per year, with interest payments due quarterly starting October 1, 2001. Calton, Inc. also agrees to waive any rights related to missed payments that occurred before this amendment was signed on February 9, 2001.

EX-10.16 7 g67239ex10-16.txt CALTON,INC.-A#1 PROMISSORY NOTE PRIVILEGEONE 1 EXHIBIT 10.16 AMENDMENT NO. 1 TO PROMISSORY NOTE DATED JANUARY 27, 2000 This Amendment to Promissory Note dated January 27, 2000 (the "Note") issued by PrivilegeOne Networks, Inc., a Delaware corporation, to Calton, Inc., a New Jersey corporation, the obligations under which have been assumed by PrivilegeOne Networks, LLC, a Delaware limited liability company. 1. AMENDMENT. The first sentence of the second paragraph of the Note is hereby amended to read in its entirety as follows: "This Promissory Note shall bear interest at a rate of ten percent (10%) per annum. Interest shall be payable quarterly on the fifteenth (15th) day of each calendar quarter commencing with the quarter that begins on October 1, 2001." 2. WAIVER. Lender hereby waives its rights with respect to defaults due to the failure to make payments due under the Note which occurred prior to the execution of this Amendment No. 1. IN WITNESS WHEREOF, the parties have executed this Amendment this 9th day of February, 2001. PrivilegeOne Networks, Inc. By: --------------------------- PrivilegeOne Networks, LLC By: --------------------------- Calton, Inc. By: ---------------------------