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                                                                   EXHIBIT 10.16

THE SECURITIES REPRESENTED BY THIS NOTE HAVE BEEN ACQUIRED FOR INVESTMENT AND
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE
SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID
ACT OR LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.



                                 PRINTCAFE, INC.

                   SUBORDINATED NON-NEGOTIABLE PROMISSORY NOTE

$1,989,990                                                        March 10, 2000


        PRINTCAFE, INC., a Delaware corporation (the "Company"), for value
received, hereby promises to pay STEVEN R. PETERSON (the "Holder"), or permitted
registered assigns, the principal sum equal to ONE MILLION NINE HUNDRED
EIGHTY-NINE THOUSAND NINE HUNDRED NINETY DOLLARS ($1,989,990). This Note is
issued pursuant to the Agreement and Plan of Merger dated as of February 22,
2000 (the "Merger Agreement"), among the Company, Hagen Systems, Inc., a
Minnesota corporation ("Hagen"), the stockholders of Hagen, including the
Holder, and printCafe Systems, Inc., a Delaware corporation wholly-owned by the
Company, and is subject to the provisions thereof. Terms used but not defined
herein shall have the meanings set forth in the Merger Agreement.

        THIS NOTE SHALL NOT BE NEGOTIABLE, ASSIGNABLE OR OTHERWISE TRANSFERABLE
WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF THE COMPANY.

1. PRINCIPAL AND INTEREST. This Note shall be payable in three equal successive
instalments on the first, second and third (3rd) anniversaries of the date
hereof upon delivery of a notice (the "Payment Notice") from the Holder to the
Company specifying the time, place and manner of payment. The unpaid principal
amount of this Note shall bear interest at a rate of interest for each quarterly
period commencing on the date hereof equal to the lower of (i) the Prime Rate,
as published in the Wall Street Journal on the first business day of such
quarter or (ii) 9.0% per annum. Interest shall be payable quarterly in arrears
on the same day in each successive February, May, August, and November as the
date hereof (except that if any such date is not a business day, such payment
shall be made on the next succeeding business day), with a final payment on the
final maturity date.

2. SECURITY. Payment and performance of this Note is not secured.

3. PREPAYMENT. The Company may prepay, in whole or in part, the outstanding
amount of this Note at any time or from time to time without penalty or premium.



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4. MANDATORY PREPAYMENT. Simultaneously with the consummation of a firmly
underwritten initial public offering registered pursuant to the Securities Act
of 1933, as amended (the "Securities Act"), of shares of common stock of the
Company, the Company shall prepay such portion of the principal of this Note as
is necessary to reduce the remaining principal hereof to 50% of the original
face amount hereof, which prepayment shall be applied to reduce equally each of
the remaining scheduled repayments of principal hereunder. In addition,
simultaneously with the consummation of a subsequent firmly underwritten public
offering by the Company of shares of its common stock pursuant to a registration
statement under the Securities Act which results in aggregate gross cash
proceeds to the Company of at least $125 million, the Company shall prepay in
full the remaining principal outstanding under this Note. Each prepayment shall
be made together with interest accrued on the principal so prepaid.

5.      RESTRICTIONS ON TRANSFER.

        (a) THIS NOTE SHALL NOT BE NEGOTIABLE, ASSIGNABLE OR OTHERWISE
TRANSFERABLE WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF THE COMPANY.

        (b) The Company shall keep at its principal executive office a register
(herein sometimes referred to as the "Note Register"), in which, subject to such
reasonable regulations as it may prescribe, but at its expense (other than
transfer taxes, if any), the Company shall provide for the registration and
transfer of this Note.

        (c) Subject to Section 5(a) hereof, whenever this Note shall be
surrendered at the principal executive office of the Company for transfer,
accompanied by (i) a written instrument of transfer in form reasonably
satisfactory to the Company duly executed by the holder or his attorney duly
authorized in writing, (ii) the written opinion, addressed to the Company, of
counsel for the holder of this Note, stating that in the opinion of such counsel
(which opinion and counsel shall be reasonably satisfactory to the Company),
such proposed transfer does not involve any transaction requiring registration
or qualification of such shares under the Securities Act or the securities blue
sky laws of any relevant state of the United States and (iii) a writing duly
executed by the transferee acknowledging that this Note is issued pursuant to
the Merger Agreement and is subject to the provisions thereof and agreeing to be
bound by the terms hereof and thereof, including, without limitation, the
provisions of this Section 5 and Section 8 hereof, the Company shall execute and
deliver in exchange therefor a new Note or Notes, as may be requested by such
holder, in the same aggregate unpaid amount and payable on the same date as the
Note or Notes so surrendered; each such new Note shall be dated as of the date
to which payments have been made on the Note or Notes so surrendered and shall
be in such amount and registered in such name or names as such holder may
designate in writing.

        (d) Upon receipt by the Company of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of this Note and of indemnity
reasonably satisfactory to it, and upon reimbursement to the Company of all
reasonable expenses incidental thereto, and upon surrender and cancellation of
this Note (in case of mutilation), the Company will make and deliver in lieu of
this Note a new Note of like tenor and unpaid amount and dated as of the date
hereof.



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6. EVENTS AND REMEDIES OF DEFAULT

        The occurrence of any of the following shall constitute an "Event of
Default":

        (a) if the Company shall fail to pay any amount owing under this Note
when due, and such failure continues for five business days after written notice
to the Company of such default;

        (b) if the Company is adjudicated insolvent or bankrupt; or

        (c) if the Company admits in writing its inability to pay its debts; or

        (d) if the Company shall come under the authority of a custodian,
receiver or trustee for it or for substantially all of its property; or

        (e) if the Company makes an assignment for the benefit of creditors, or
suffers proceedings under any law related to bankruptcy, insolvency, liquidation
or the reorganization, readjustment or the release of debtors to be instituted
against it and if contested by it not dismissed or stayed within ninety (90)
days; or

        (f) if proceedings under any law related to bankruptcy, insolvency,
liquidation or the reorganization, readjustment or the release of debtors are
instituted or commenced by the Company; or

        (g) if any order for relief is entered relating to any of the forgoing
proceedings under subsections (a) through (f); or

        (h) the Company shall have dissolved or any proceedings shall have
commenced, or any formal action shall have been taken, with a view to the
dissolution of the Company; or

Upon the occurrence and continuance of an Event of Default, the holder of this
Note shall have the option to (i) demand by written notice full and immediate
payment of the then outstanding balance of this Note and (ii) to protect and
enforce its rights or remedies as may then be available.

7. SUBORDINATION.

        (a) General. The Company, for itself, its successors and assigns,
covenants and agrees, and the Holder by its acceptance hereof covenants and
agrees, that this Note shall be subordinated to the extent set forth in this
Section to the prior payment in full of all Senior Debt (as defined below) as
follows:

                (i) In the event of an Event of Default specified in Sections
        7(b), (e) or (f) hereof, the Holder shall not be entitled to receive any
        payment on account of principal of or interest on this Note unless and
        until the Senior Debt shall have been paid in full. To that end, the
        holders of Senior Debt shall be entitled to receive for application in
        payment thereof any payment or distribution of any kind or character,
        whether in cash, property or securities, which may be payable or
        deliverable in any such proceedings in respect of this Note.



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                (ii) If any Senior Debt or this Note is declared due and payable
        prior to its stated maturity by reason of an Event of Default specified
        in Sections 7(a), (c), (d) or (g) hereof or like provisions in
        instruments evidencing the Senior Debt, then all of the Senior Debt
        shall first be paid in full, before any payment on account of principal
        of or interest on this Note may be made.

                (iii) If the Company fails to pay any principal of or interest
        (or premium, if any) on any Senior Debt when due, under circumstances
        when the provisions of clauses (i) and (ii) hereof shall not be
        applicable, then all principal of and interest (or premium, if any) on
        such Senior Debt then due and payable shall first be paid in full,
        before any payment on account of principal of or interest on this Note
        may be made.

                (iv) The provisions of clauses (i) through (iii) shall not
        prohibit the Company from issuing to the Holder securities of the
        Company which are subordinate and junior in right of payment to all
        Senior Debt then outstanding, on the same terms as set forth in this
        Section 8, in exchange for and in satisfaction of the indebtedness
        represented by this Note.

        (b) "Senior Debt" means all amounts (including any interest accruing
thereon) owed under the following, whether now outstanding or hereafter
incurred, created or assumed:

                (i) indebtedness pursuant to the Term Loan Agreement, dated
        July, 6, 1999, between the Company and National City Bank secured by a
        general security interest in all assets, except intellectual property,
        of the Company, in the amount of $900,000.;

                (ii) all indebtedness under securities issued pursuant to a
        public offering registered under the Securities Act;

                (iii) any line or lines of credit or other indebtedness for
        borrowed money incurred by the Company on or after the date hereof (A)
        for working capital purposes and/or (B) for refinancing, refunding or
        replacement of Senior Debt and/or (C) extended by one or more banks; and

                (iv) all guaranties by the Company of the principal of and
        interest and premium (if any) on any indebtedness of any subsidiary or
        affiliate of the Company which constitutes "Senior Debt" pursuant to
        clauses (i) through (iii) hereof, which is guaranteed by the Company.

        (c) Further Assurances. The Holder hereby agrees to execute and deliver
all documents, and take all actions necessary or desirable, as reasonably
requested by the Company to affect the provisions of the this Section 8,
including, without, executing and delivering intercreditor or other agreements
among or between the Holder and any holder of Senior Debt of the Company or its
subsidiaries or affiliates.



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8. GENERAL.

        (a) Successors and Assigns. This Note and the obligations and rights of
the Company hereunder, shall be binding upon and inure to the benefit of the
Company, the Holder, and their respective successors and assigns.

        (b) Changes. Changes in or additions to this Note may be made or
compliance with any term, covenant, agreement, condition or provision set forth
herein may be omitted or waived (either generally or in a particular instance
and either retroactively or prospectively) upon written consent of the Company
and the Holder.

        (c) Notices. All notices, request, consents and demands shall be made in
writing and shall be mailed postage prepaid, or delivered by hand, to the
Company or the holder hereof at their respective addresses set forth below or to
such other address as may be furnished in writing to the other party hereto:

                If to the Holder:

                      Steven R. Peterson
                      c/o Gray, Plant, Mooty, Mooty & Bennett, P.A.
                      3400 City Center,
                      33 South Sixth Street,
                      Minneapolis, MN 55402
                      Attention:  Jeffrey Anderson, Esq.
                      Facsimile No.:  (612) 333-0066
                      Telephone No.:  (612) 343-3958

                      with a copy to:

                      Gray, Plant, Mooty, Mooty & Bennett, P.A.
                      3400 City Center,
                      33 South Sixth Street,
                      Minneapolis, MN 55402
                      Attention:  Jeffrey Anderson, Esq.
                      Facsimile No.:  (612) 333-0066
                      Telephone No.:  (612) 343-3958

                If to the Company:

                      printCafe, Inc.
                      Forty 24th Street, 5th Floor
                      Pittsburgh, PA 15222
                      Attention:  President
                      Facsimile No.:  (412) 456-1151
                      Telephone No.:  (412) 456-1141



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                      with a copy to:

                      Orrick, Herrington & Sutcliffe LLP
                      666 Fifth Avenue
                      New York, NY  10103
                      Attention:  Daniel A. Mathews, Esq.
                      Facsimile No.:  (212) 506-5151
                      Telephone No.:  (212) 506-5050

        (d) Severability. If any term or provision of this Note shall be held
invalid, illegal or unenforceable, the validity of all other terms and
provisions hereof shall in no way be affected thereby.

        (e) Saturdays, Sundays, Holidays. If any date that may at any time be
specified in this Note as a date for the making of any payment under this Note
shall fall on Saturday, Sunday or on a day which in Pittsburgh, Pennsylvania,
shall be a legal holiday, then the date for the making of that payment shall be
the next subsequent say which is not a Saturday, Sunday, or legal holiday.

        (f) Governing Law. This Note shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of New York, without regard to choice of law principles.


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        IN WITNESS WHEREOF, this Note has been executed and delivered on the
date first above written by the duly authorized representative of the Company.


                                            PRINTCAFE, INC.


                                            By:
                                               ---------------------------------
                                               Name:
                                               Title:


ACKNOWLEDGED, ACCEPTED
AND AGREED THIS ___ DAY
OF MARCH, 2000

HOLDER:

STEVEN R. PETERSON


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