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                                                                    EXHIBIT 10.7

                               THIRD AMENDMENT TO
                         EXECUTIVE EMPLOYMENT AGREEMENT

       This Third Amendment to Executive Employment Agreement is entered into as
of this 30TH day of October, 2002 by and between Calton, Inc. (the "Employer" or
the "Company"), a New Jersey corporation with offices located at 500 Craig Road,
Manalapan, New Jersey 07726, and Anthony J. Caldarone (the "Executive"), an
individual residing at 162 Anchor Drive, Vero Beach, Florida 32963.

       WHEREAS, the Employer and Executive have entered into an Executive
Employment Agreement dated as of November 21, 1995, and amended April 14, 1999
and October 17, 2001 (the "Employment Agreement");

       WHEREAS, effective September 1, 2002, the Employer and the Executive
agreed that the Executive will serve as Chairman and Chief Executive Officer of
the Company during the remaining term of the Employment Agreement;

       WHEREAS, the Board of Directors of the Employer have approved an
extension of the term of the Employment Agreement to November 30, 2003;

       NOW, THEREFORE, in consideration of the representations, covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound hereby, the parties hereto agree as follows:

1.     EXTENSION OF TERM. Section1.1 of the Employment Agreement is hereby
       amended to read in its entirety as follows:

              1.1 TERM. The term of this Agreement shall commence on November
       21, 1995 and end on November 30, 2003 (the "Term").

2.     CHANGE IN TITLE. Effective as of September 1, 2002, Section 1.2 of the
       Agreement is hereby amended to read in its entirety as follows:

              1.2 POWERS, DUTIES AND RESPONSIBILITIES. For the Term of this
       Agreement, the Employer hereby employs the Executive, and the Executive
       hereby accepts employment with the Employer, to render serve as Chairman
       of the Board and Chief Executive Officer of the Company, with such
       powers, duties and responsibilities consistent with the position of
       Chairman of the Board and Chief Executive Officer as provided for in the
       Employer's Bylaws and as otherwise may from time to time be determined by
       the Board and subject to the rights of the shareholders of the Company.
       The Executive agrees to devote the necessary working time to the Employer
       to accomplish the Company's goals and to diligently perform all duties
       and fulfill all responsibilities incident to his

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       employment in a businesslike and efficient manner. The Executive will
       report directly to the Employer's Board.]

              The Executive agrees that he will not become involved in any
       activity outside of the business of the Company that would interfere with
       the performance of his duties hereunder or any activity that would b
       e inimical to or contrary to the best interests of the Employer.

        IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and year first written above.

WITNESS:

_________________________________        _______________________________________
                                          Anthony J. Caldarone

ATTEST:                                   CALTON, INC.


_________________________________     By:_______________________________________
Mary Magee, Secretary                     John G. Yates, President