Document:

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                                                                    Exhibit 10.1

                      AMENDMENT NO. 1 TO ROYALTY AGREEMENT
                      ------------------------------------

     This AMENDMENT NO. 1 TO ROYALTY AGREEMENT ("Amendment") is entered into as
of July 13, 2001 by and between MED ENCLOSURES, LLC, a Nevada limited liability
company ("MEL"), and ROD A. SHIPMAN, an individual ("Shipman"), with reference
to the following facts and on the following terms and conditions:

                                 R E C I T A L
                                 -------------

     A.  The parties hereto have previously entered into that certain Royalty
Agreement dated July 28, 2000 (the "Royalty Agreement").

     B.  The parties hereto desire to amend the Royalty Agreement to increase
the percentage royalty due thereunder and to include within the terms of the
Royalty Agreement an additional patent upon which royalties shall be paid to
Shipman.

                               A G R E E M E N T
                               -----------------

     NOW, THEREFORE, in consideration of the mutual covenants, promises and
agreements contained herein, the parties agree as follows:

     1.  Section 1 of the Royalty Agreement is hereby amended by deleting it in
its entirety and replacing it with the following new Section 1:

     "1.  Royalty Payment.  MEL shall pay Shipman, or his assigns,  the
          ---------------
following:

          (a) a royalty equal to 1.5% of the Net Sales (as defined herein) of
MEL from the sale of any product that would, except for this agreement, infringe
a claim in the First Myers Patent, either directly or contributorily, or which
would induce infringement of the First Myers Patent.  For purposes of this
Section 1(a), the term "First Myers Patent" shall refer to the U.S. Patent No.
5,486,195.

          (b) a royalty equal to 1.5% of the Net Sales of MEL from the sale of
any product that would, except for this agreement, infringe a claim in the
Second Myers Patent, either directly or contributorily, or which would induce
infringement of the Second Myers Patent.  For purposes of this Section 1(b), the
term "Second Myers Patent" shall refer to the U.S. Patent No. 5,941,897.

          (c) a royalty equal to 1.5% of the Net Sales of MEL from the sale of
any product that would, except for this agreement, infringe a claim in the Third
Myers Patent, either directly or contributorily, or which would induce
infringement of the Third Myers Patent.  For purposes of this Section 1(c), the
term "Third Myers Patent" shall refer to the U.S. Patent No. 5,725,551.

          (d) For purposes of this Agreement, the term "Net Sales" shall mean
gross receipts actually collected by MEL less deductions for any and all
allowances given such as
<PAGE>

advertising, return allowance, quantity and cash discounts and all sales and
excise taxes, duties, transport and handling charges actually paid out."

     2.  This Amendment may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     3.  Except as set forth in this Amendment, all other provisions of the
Royalty Agreement shall remain in full force and effect.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the day and year first above written.

                               MED ENCLOSURES, LLC,
                               a Nevada limited liability company

                               By:  CPC of America, Inc., a Nevada corporation,
                                    Its Manager

                                    By:  /s/ Rod A. Shipman
                                         ---------------------------------------
                                             Rod A. Shipman, President

                               SHIPMAN

                                         /s/ Rod A. Shipman
                                         ---------------------------------------
                                             ROD A. SHIPMAN

                                      -2-<PAGE>

                                                                    Exhibit 10.2

                      AMENDMENT NO. 1 TO ROYALTY AGREEMENT
                      ------------------------------------

     This AMENDMENT NO. 1 TO ROYALTY AGREEMENT ("Amendment") is entered into as
of July 13, 2001 by and between MED ENCLOSURES, LLC, a Nevada limited liability
company ("MEL"), and CTM GROUP, INC., a Nevada corporation ("CTM"), with
reference to the following facts and on the following terms and conditions:

                                 R E C I T A L
                                 -------------

     A.  The parties hereto have previously entered into that certain Royalty
Agreement dated July 28, 2000 (the "Royalty Agreement").

     B.  The parties hereto desire to amend the Royalty Agreement to increase
the percentage royalty due thereunder and to include within the terms of the
Royalty Agreement an additional patent upon which royalties shall be paid to
CTM.

                               A G R E E M E N T
                               -----------------

     NOW, THEREFORE, in consideration of the mutual covenants, promises and
agreements contained herein, the parties agree as follows:

     1.  Section 1 of the Royalty Agreement is hereby amended by deleting it in
its entirety and replacing it with the following new Section 1:

     "1. Royalty Payment.  MEL shall pay CTM, or its assigns, the following:
         ---------------

         (a) a royalty equal to 1.5% of the Net Sales (as defined herein) of
MEL from the sale of any product that would, except for this agreement, infringe
a claim in the First Myers Patent, either directly or contributorily, or which
would induce infringement of the First Myers Patent.  For purposes of this
Section 1(a), the term "First Myers Patent" shall refer to the U.S. Patent No.
5,486,195.

         (b) a royalty equal to 1.5% of the Net Sales of MEL from the sale of
any product that would, except for this agreement, infringe a claim in the
Second Myers Patent, either directly or contributorily, or which would induce
infringement of the Second Myers Patent.  For purposes of this Section 1(b), the
term "Second Myers Patent" shall refer to the U.S. Patent No. 5,941,897.

         (c) a royalty equal to 1.5% of the Net Sales of MEL from the sale of
any product that would, except for this agreement, infringe a claim in the Third
Myers Patent, either directly or contributorily, or which would induce
infringement of the Third Myers Patent.  For purposes of this Section 1(c), the
term "Third Myers Patent" shall refer to the U.S. Patent No. 5,725,551.

         (d) For purposes of this Agreement, the term "Net Sales" shall mean
gross receipts actually collected by MEL less deductions for any and all
allowances given such as
<PAGE>

advertising, return allowance, quantity and cash discounts and all sales and
excise taxes, duties, transport and handling charges actually paid out."

     2.  This Amendment may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     3.  Except as set forth in this Amendment, all other provisions of the
Royalty Agreement shall remain in full force and effect.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the day and year first above written.

                           MED ENCLOSURES, LLC,
                           a Nevada limited liability company

                           By:  CPC of America, Inc., a Nevada corporation,
                                Its Manager

                                By:  /s/ Rod A. Shipman
                                     -----------------------------------------
                                        Rod A. Shipman, President

                           CTM GROUP, INC.,
                           a Nevada corporation

                           By:       /s/ Lance Kerness
                               -----------------------------------------------
                                        Lance Kerness, President

                                      -2-<PAGE>

                                                      George E. Durstin
                                                      Vice President
                                                      Managed Assets Division

[LOGO FLEET]

                                                      Mail Stop: CT EH 40221B
                                                      777 Main Street
           FleetBoston Financial                      Hartford, CT 06115
                                                      860 986.3788 tel
                                                      860 986.3162 fax
                                                      george_e_durstin@fleet.com

November 7, 2001

Mr. Thomas Liguori
Chief Financial Officer
Channell Commercial Corporation
26040 Ynez Road
Temecula, CA 92591

Re:    Credit Agreement dated May 1, 1998, as amended.

Dear Mr. Ligouri,

Fleet Bank, as Administrative Agent, is pleased to advise you that the Lenders
will further amend the subject Credit Facility under the following terms and
conditions.

 .    The revolver will be capped at the current outstanding of $23,154,828.82

 .    Covenant defaults through the period ending September 30, 2001 will be
     waived.

 .    The Borrower shall obtain and have in effect a fully executed commitment
     from a lender or lenders to refinance and repay in full the entire
     indebtedness by June 30, 2002.

 .    A $1,000,000 principal payment will be made upon execution of the
     amendment.

 .    A $100,000 amendment fee will be paid upon execution of the amendment.

 .    A Federal Income Tax refund from the tax return to be filed in February
     2002 will be applied as a principal reduction of the debt. The payment will
     be no less than $3,500,000 and be payable by March 31, 2002.

 .    The Borrower will grant to the lenders a mortgage on the real estate
     located at 26090 Ynez Road, Temecula, CA. The lenders will release the
     mortgage upon sale of the property and payment to the lenders of the net
     proceeds of the sale after the first mortgage balance and closing costs.

 .    The Borrower will grant to the lenders a negative pledge on real estate
     located on Murray Road, Leesons Hill, Orpington, Kent, United Kingdom.
<PAGE>

 .    Financial covenants for the fiscal quarters ending December 31, 2001 and
     March 31, 2002 will be reset upon receipt and review of the Borrower's
     financial statements for the period ending September 30, 2001.

 .    Reaffirmation of all existing covenants and agreements between the Borrower
     and Lenders.

 .    The Borrower will execute and deliver such documents and do such other acts
     and things as the Lenders may request in order to fully effect the purposes
     of the agreement.

 .    The Borrower will pay all out-of-pocket costs and expenses incurred by the
     Lenders in connection with the proposed amendments and financing
     arrangements.

This commitment will automatically terminate if not agreed to and accepted by
the Borrower no later than November 19, 2001 and a closing held not later than
December 7, 2001.

Please indicate your acceptance of the above terms and conditions by signing the
enclosed copy of this letter and returning it to me at the captioned address.

Very truly yours,

/s/ George E. Durstin
----------------------
George E. Durstin
Vice President

Agreed and accepted this   7   day of November, 2001.
                         -----

Thomas Liguori                  CFO                  /s/ Thomas Liguori
----------------              -------                --------------------
  Name                         Title                 Signature

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