Document:

<PAGE>
                                                                   Exhibit 10(b)

September 21, 2005

                 AMENDMENT TO JOHN H LOWRY EMPLOYMENT AGREEMENT
                     WITH CATUITY INC. DATED APRIL 18, 2000

The Employment Agreement of John H Lowry dated April 18, 2000 with Catuity Inc.
("Agreement") is hereby amended, effective August 19, 2005 as follows. All terms
and conditions in the Employment Agreement and the amendment to the Employment
Agreement dated October 3, 2003 that have not been amended as part of this
Amendment shall remain in full force and effect.

Section 2 (a) Salary - Base salary is $170,000 per year effective January 1,
2005. Base salary is subject to annual review by the President & CEO.

Section 2 (b) Cash Bonus - A cash bonus of $25,000 will be granted subject to
the successful closing of the company's Australian capital raise of $A7MM. The
bonus is in recognition of the significant additional work undertaken by Mr.
Lowry in the past calendar year.

Section 2 (c) Stock Option and Restricted Stock Grant - Effective on the date
that this Amendment is signed by Mr. Lowry, 10,000 option shares will be awarded
that expire September 20, 2015, at a grant price equal to the lower of the
closing price on NASDAQ on the day of signing or the 30 day average closing
price as of the date of signing. The 10,000 options will vest over two years,
50% at the first anniversary of the date of signing and 50% at the second
anniversary of the date of signing.

In addition, on the date Mr. Lowry signs this Amendment, 20,000 shares of
restricted stock will be awarded to Mr. Lowry. His first 6,667 restricted shares
will vest when the 30 day average closing price on is NASDAQ exceeds the capital
raise price by a factor of 2 times (e.g. if the capital raise price is $7.50,
the restriction lifts when the share price reaches $15). An additional 6,667
restricted shares will vest when the 30 day average closing price on NASDAQ
exceeds 2.75 times of the capital raise price ($20.625). An additional, 6,666
restricted shares will vest when the 30 day average closing price on NASDAQ
exceeds 3.50 times the capital raise price ($26.25). In the event Mr. Lowry
voluntarily resigns or his employment is terminated by the Company for cause,
all unvested restricted shares will be forfeited. However, the restricted shares
will vest upon a change of control where the stock price on the last day of
trading prior to the takeover is over US $10.00 and where executive loses his
position.

Additionally, Mr. Lowry will be eligible for a 2006 bonus plan where if the
company achieves positive EBITDA including the effect of bonuses, he will
receive a restricted share bonus equal to 25% of salary. These shares will be
granted based on the 30 day average closing price on NASDAQ for the last 30
trading days of 2006. The restrictions on these shares will lapse in one year.
If the company has at least nine months operating positive cash flow at the time
of the award, Mr. Lowry's may elect to receive 1/2 of the bonus amount ($21,250)
in cash and reduce the restricted shares proportionally.

Mr. Lowry will be eligible to exchange his existing option shares in the May
2005 special option exchange approved by the Board for all employees.

In the event Mr. Lowry voluntarily resigns, retires, or his employment with
Catuity is terminated by the Company (as defined in Section 3 of the Agreement)
during the term of this Amendment, all vested options held as of the termination
date will expire six (6) months following the date of termination. If Mr.
Lowry's employment terminates due to death or incapacity due to disability (as
defined in Section 3 (c) of the Agreement) during the term of this Amendment,
his vested options will expire one (1) year from the date of termination. Any
unvested options held as of the date of termination expire immediately without
regard to the reason for termination.

Section 3 Term and Termination - The term of Mr. Lowry's Employment Agreement,
as amended by this Amendment, will be extended to July 1, 2007.

<PAGE>

Signed: /s/ Alfred H. (John) Racine     Signed: /s/ John H. Lowry
        -----------------------------           --------------------------------
        Alfred H. John Racine                   John H. Lowry
        President & CEO                         CFO

Date Signed: September 30, 2005         Date Signed: September 28, 2005<PAGE>
                                                                   Exhibit 10(c)

  AGREEMENT BETWEEN CATUITY INC. AND MIA PTY LTD AND CHRIS LEACH, INDIVIDUALLY,
                             FOR MANAGEMENT SERVICES

V0.21

1.   PARTIES TO THE AGREEMENT

THIS AGREEMENT is made on 31st August, 2005 BY and BETWEEN Catuity Inc., of 2711
E. Jefferson Blvd., Detroit, MI USA (hereinafter "Catuity") AND Mentoring
Institute of Australia Pty Limited ABN 42 073 425 644 of P.O. Box 130 Collaroy
NSW 2097 (hereinafter "MIA") and Chris Leach, individually, of 23 Grover Avenue,
Cromer NSW 2099. (hereinafter "Leach").

2.   RECITALS

MIA is in the business of providing management consultants ("MIA Consultants")
to Catuity.

MIA is desirous of being engaged by Catuity to supply the full-time consulting,
executive management, and other miscellaneous services ("Services") of Chris
Leach ("Leach") to Catuity.

Catuity is desirous of engaging MIA to provide executive level management
services to Catuity, its Board of Directors and its businesses, including its
Australian subsidiaries and in the Asia Pacific region.

MIA represents that Chris Leach is desirous and willing to provide the services
to Catuity that are described herein, under the terms and conditions herein, on
a full-time basis.

MIA shall be paid in accordance with Schedule 1, attached herein.

This management services agreement ("Agreement") confirms MIA's appointment to
provide the Services in accordance with the details set out below in this
Agreement.

3.   TERM AND TERMINATION

The Services commence on the first day after Catuity assumes control and
ownership of Loyalty Magic Pty Ltd., which is expected to be no later than 15th
September, 2005 and will continue for a period of twenty-eight (28) calendar
months, ending 31st December, 2007. The Parties may elect to renew this
Agreement. Any extension or change to this Agreement shall not be binding on the
parties unless agreed to in writing and signed by the appropriate executes for
both parties. Either Party may terminate this Agreement

     (a)  For cause on 30 days written notice, or

     (b)  Immediately in the case of gross misrepresentation or unethical
          behaviour on the part of the other Party, their employees or
          representatives, or

     (c)  Immediately in the event that Mr. Leach dies or becomes incapacitated

     (d)  For other reasons on 90 days notice.

4.   TASKS

The Services will include the following:

     -    General Executive Management including executing the sales and
          operational strategy of Catuity's Australian operations and delivering
          agreed to profit and loss goals of Catuity's Australian operations
          through Loyalty Magic Pty Ltd. ("LM"), including the expansion of
          those operations into selected markets outside of Australia.

     -    All aspects of managing the day-to-day operational needs of Catuity's
          Australian operations, including, but not limited to, hiring and
          training key employees; all aspects of financial oversight and
          reporting; managing business relationships; compliance with all
          applicable regulations and laws.

<PAGE>

     -    Contingent on completion of a Board-approved strategy for Australia
          through 2007, Mr. Leach will add responsibilities for developing and
          executing a growth strategy across Asia Pacific. Upon acceptance of a
          written strategy for these new responsibilities, the Board will
          approve additional incentives for on mutually acceptable terms.

     -    Full financial management, reporting and accountability under the
          requirements and standards of a dual-listed publicly traded company.

     -    Management of and active daily participation in the sales effort to
          support the business objectives of Catuity's Australian operations.

     -    Management of the corporate-wide Research and Development function
          based in Sydney, NSW

     -    As directed by the CEO of Catuity Inc., active participation in the
          strategic planning and development for all of Catuity Inc., including
          international travel to North America to export the knowledge and
          expertise developed in Australia

     -    As requested, active monthly participation in matters presented to the
          Board of Directors of Catuity Inc.

     -    At all times, positively and accurately representing Catuity, its
          services and products, be it to employees, customers, prospects,
          investors or others.

     -    Actively manage companywide training and development of the knowledge
          and skills of all sales, technology and customer-facing staff across
          Catuity Inc.

     -    Know and keep updated on the loyalty relationship marketing market so
          as to assist and develop our strategic plan globally.

5.   KEY PERFORMANCE CRITERIA

In contracting with MIA and its consultant, Mr. Leach, Catuity has set some
fundamental business objectives for its Australian operations. These include:

     -    Make Loyalty Magic a cash flow positive business on a month-over-month
          basis by Nov. 1, 2005.

     -    Manage the day-to-day affairs of the business in keeping with
          generally accepted proper business practices.

     -    Drive profitable growth in the business of LM to meet or exceed the
          revenue and EBIT goals established for LM in calendar years 2005, 2006
          and 2007

     -    Assist in delivering monthly updates about Catuity's Australian
          operations to the Catuity's Board of Directors.

     -    Identify, qualify, propose and pursue joint-ventures, mergers and
          acquisitions, partnerships and strategic investment - within the
          parameters set by the Board of Directors - to further and accelerate
          the company's growth and profit objectives.

6.   MANAGEMENT DUTIES

All work is to be carried out within the parameters and guidelines associated
with each project that Catuity is undertaking and MIA is to ensure that outcomes
are delivered. The Catuity address for presentation of invoices on a monthly
basis is as above in Section 1. Invoices are to be presented by the end of each
month, and will be paid within seven (7) days of Catuity receiving the invoice.

7.   PROJECT REPORTING REQUIREMENTS

Leach will provide Catuity with reports in the format and at times as specified
by Catuity.

Any matters that arise that may be deemed to materially affect the development
of any project should be communicated to the Catuity worldwide CEO immediately
and no later than twelve (12) hours of Leach or MIA becoming aware of the
circumstances or events.

<PAGE>

8.   FEE STRUCTURE

The fee structure is described in Schedule 1, as amended only by written mutual
agreement of the parties from time to time.

Other fees: The only fees due to MIA or Leach are those specified in this
Agreement. Any additional fees or compensation for services will require
separate or amended written agreements that must be executed by both parties'
duly authorized representatives.

9.   SERVICE HOURS

Leach/MIA shall provide Services described in Sections 4 and 5 herein during
customary business hours and, as necessary, outside normal business hours in
order to facilitate open and clear communication with clients, prospects, the
Board of Directors of Catuity Inc. and the U.S.-based executive management team

10.  SPECIAL PROVISIONS

At all times during the term of this Agreement and for a period of two (2) years
following its expiration or termination, Leach, individually, and MIA, as a
business entity agree to the following special provisions:

     i.   Leach and MIA agree to keep private and confidential all information
          relating to Catuity, its operations, its technology, its intellectual
          property, its financial position and all matters relating to Catuity's
          customers and prospects.

     ii.  Leach and MIA agree to comply with ethics, policies and standards of
          conducts for its executives and employees that the Catuity Board of
          Director may set and amend, from time to time, as the Board sees fit.

     iii. Leach, individually, and MIA agree that for a period of two (2) years
          following the expiration or termination of this Agreement, they will,
          under no circumstances, approach, solicit or otherwise affect the
          relationship between Catuity Inc. and its affiliates or subsidiaries
          and its customers, prospects, and partners.

     iv.  Leach and MIA agree that for a period of two (2) years following the
          expiration or termination of this Agreement, they will not solicit or
          respond to inquiries from current employees of Catuity, its affiliates
          or subsidiaries for a period of two (2) years, if the communication
          concerns competing with Catuity, discussing confidential information
          or soliciting customers or key prospects.

By executing this agreement, Leach, individually, and MIA and any of its agents
hereby agrees to the terms and conditions of this clause

11.  INTELLECTUAL PROPERTY

Catuity represents and warrants that it owns or otherwise has all necessary
rights to provide MIA with all intellectual property related to this Agreement.
This includes the rights to material which may be the work of Catuity's
employees, sub-contractors or other third parties.

Title of all intellectual property created in the course of providing services
to Catuity under this Agreement, including, without limitation, programs,
routines, designs, reports, graphs, diagrams, documents and computer data files
shall belong to Catuity, and MIA and Leach, individually, shall do all acts and
things necessary to protect and document Catuity's rights.

At the end of this Agreement, MIA shall return or provide an accurate written
account to Catuity for all consulting, books, papers, drawings, writings and
other things, such as (but not limited to) Catuity's equipment, software, tools,
or other devices, which have come into MIA's possession or under its control.

<PAGE>

12.  PERSONNEL

MIA shall perform its obligations under this Agreement in a competent and
professional manner. MIA's employee, Chris Leach, is the only designated
representative of MIA who shall perform the tasks described in Clause 4. MIA
agrees to provide customary benefits, paid leave and holiday to its employees
and certifies that it shall only employ persons to perform the work who:

-    Are properly qualified, adequately experienced and, where required,
     certified or credentialed, to perform the duties allocated to them;

-    Exhibit a high standard of work and conduct;

-    Are of known reliability and integrity; and

-    May be relied upon not to breach the requirements of this Agreement
     including those relating to security and confidentiality.

Catuity shall have the sole and exclusive right to accept or reject any
additional persons recommended by MIA to provide Services.

MIA and Leach, individually, further indemnify Catuity for any additional costs
that Catuity incurs if regulatory authorities, including a taxing authority or
industrial relations body, determines that Leach could not be classified as a
contractor.

13.  CHANGES TO AGREEMENT

Changes in this Agreement shall not be binding on the parties unless documented
in a notice of variation signed by authorised representatives from all parties.

14.  GENERAL TERMS

     1.   Assignment. Catuity may assign or otherwise transfer any right or
          obligation arising out of this Agreement with the prior written
          consent of the other party.

     2.   Relationship of Parties. MIA is an independent consultant to Catuity
          and nothing in this Agreement constitutes a relationship of joint
          venture, employment, agency or partnership between MIA or Leach,
          individually, and Catuity.

     3.   Severability. The whole or any part of any clause of this Agreement
          that is illegal or unenforceable will be severed and will not affect
          the continued operation of the remaining provisions of this Agreement.

     4.   Waiver. The failure of a party at any time to insist on performance of
          any obligation under this Agreement of the other party is not a waiver
          of its rights to insist on performance of that application or to claim
          damages unless that party acknowledges in writing that the failure is
          a waiver, nor is it a waiver of its right at any other time to insist
          on performance of that or any other obligation under this Agreement of
          that party. The waiver of any breach or non-observance of any terms of
          this Agreement will not be construed as a general waiver and will only
          relate to the particular breach or non-observance in respect of which
          it was made. No waiver will be effective unless it is in writing and
          signed by the party against whom such waiver is claimed.

     5.   Entire Agreement. This Agreement constitutes the entire agreement
          between the parties and supersedes all prior representations and
          agreements in connection with the Services and they only be varied in
          writing signed by the parties.

     6.   Governing Law. This Agreement is governed by the laws applicable in
          the State of New South Wales and the parties submit to the
          jurisdiction of the courts of that State.
<PAGE>
15. SIGNATORIES

Signed for and on behalf of             Signed for and on behalf of MIA
ABN 96 089 327 882                      ABN 42 073 425 644

By: /s/ John A. Racine                  By: /s/ Chris Leach
    ---------------------------------       ------------------------------------
NAME: John A. Racine                    NAME: Chris Leach
TITLE: President & CEO                  TITLE: Director of MIA
DATED: 31 August 2005                   DATED: 31 August 2005

Who warrants that he is                 Who warrants that he is
Authorised to sign this Agreement       authorised to sign this Agreement

                                        By: /s/ Chris Leach
                                            ------------------------------------
                                        Name: Chris Leach, individually
                                        Dated: 31 August 2005

<PAGE>

SCHEDULE 1

TO THE AGREEMENT FOR MANAGEMENT SERVICES BETWEEN MIA AND

CHRIS LEACH, INDIVIDUALLY, AND CATUITY INC. DATED 31ST AUGUST, 2005

The fees and other remuneration to be paid to MIA for the Services to be
performed pursuant to the Agreement dated 31st August, 2005 shall be as
reflected below.

All amounts shown are in Australian dollars unless otherwise noted.

Last Update: 31st August 2005

     1.   RETAINER

          $195,000 per annum plus a lump sum payment to MIA that is equal to the
          cost of customary benefits to be paid in twelve equal monthly
          installments.

     2.   INCENTIVE PAYMENT THRESHOLDS - For CY 2005 and CY 2006.

          LOYALTY MAGIC/CATUITY'S FINANCIAL OBJECTIVES ARE:

          CY 2005, 6 months July to December, Revenues of AUD$1.4Million(*)
          EBITDA of AUD$100,000 (*)

          CY 2006, Revenues at 25% greater than CY2005 revenues, and EBITDA that
          is the greater of a 35% above CY2005 EBITDA or at least a 20% EBITDA
          margin.

          CY 2007 Revenues at 25% greater than CY2006 revenues, and EBITDA at
          25% greater than CY2006 EBITDA

          These numbers are exclusive of any growth which may be a result of
          mergers and acquisitions. In the event that Catuity undertakes a
          merger which is managed by Mr. Leach, this incentive is capped at the
          figures listed above.

          (*) This excludes one time gains, including the Sky City Entertainment
          contract.

          (A.) CASH BASED INCENTIVE THRESHOLDS

          MIA will receive a cash-based incentive equal to 2.5% of EBITDA in a
          calendar year when Loyalty Magic reaches 100% of its target for each
          year. Any payment under this incentive shall be subject to the
          following provision:

               -    The incentive will be calculated and paid based on the
                    completed audited financials for each calendar year.

               -    The incentive will be calculated and paid after the cost of
                    all equity and cash incentives are imputed.

               -    Incentives will be calculated after inclusion of all
                    overhead allocations form Catuity Inc. The formula for
                    determining the allocations will be developed at the sole
                    discretion of Catuity Inc., shall be transparent and will be
                    consistently and equally applied to all business units. The
                    formulas for these allocations will be adjusted
                    semi-annually and provided in advance to all business unit
                    managers.

               -    All results are subject to U.S. Generally Acceptable
                    Accounting Principles.

<PAGE>

          (B.) EQUITY BASED INCENTIVE THRESHOLDS

          15,000 stock options in the following manner:

               -    5,000 vested on the day after the close of the merger with a
                    trigger price equal to 25% above the 30-day average closing
                    price on NASDAQ preceding the grant.

               -    5,000 vested on 1st January 2006 with a trigger price equal
                    to 35% above the 30-day average closing price on NASDAQ
                    preceding the date of the grant.

               -    5,000 vested on the 1st of January 2007 with the trigger
                    price equal to 35% above the 30-day average closing price on
                    NASDAQ preceding the date of the grant.

          20,000 restricted share grants in the following manner:

               -    5,000 shares granted on 30th January 2006 at no cost to you
                    if Mr. Leach meets 100% of the Revenue and EBITDA goals for
                    the second half of CY2005 goals

               -    7,000 shares granted on 30th January 2007 for meeting 100%
                    of the Revenue and EBITDA goals for the full year CY2006
                    goals

               -    8,000 shares granted on 30th January 2008 for meeting 100%
                    of the Revenue and EBITDA goals for the full year CY2007
                    goals

          (C.) ASIA PACIFIC INCENTIVES

          Subject to Board approval of a written strategy for growth in the Asia
          Pacific region, MIA and Leach will be offered a supplementary set of
          incentives tied to the forecasted results of that strategy.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]