AMENDMENT NO. 1 to LINE OF CREDIT PROMISSORY NOTE

EXHIBIT 10.1

AMENDMENT NO. 1 to

LINE OF CREDIT PROMISSORY NOTE

This Amendment No. 1 to the Line of Credit Promissory Note dated March 6, 2017 (“Note”) is made on June 6, 2017, by and between Payment Data Systems, Inc., 00000 Xxx Xxxxx, Xxx. 000, Xxx Xxxxxxx, XX 00000, and Singular Payments, LLC, 0000 Xxxxxxxx Xxx, Xxxxx 000, Xxxxxxxxx, XX 00000.

By way of this Amendment No. 1 to the Note, the undersigned parties hereby mutually extend the Interest Start Date from May 31, 2017 to the earlier of August 1, 2017, the date of the closing and funding of the Proposed Transaction (as defined in the Note), the termination of the Letter of Intent (as defined in the Note), or such extended date if Lender and Borrower mutually agree in writing (the “Extended Interest Start Date”). All remaining terms and conditions of the Note shall remain in effect.

PAYMENT DATA SYSTEMS, INC.

/s/ Xxxxx Xxxx

By: Xxxxx Xxxx

President and CEO

Singular Payments, LLC

/s/ Xxxxx Xxxxxxx

By: Xxxxx Xxxxxxx

Manager