Document:

<PAGE>   1
                                                                    EXHIBIT 10.2

                                  NOVATEC INC.

                               ALEXANDER S. DAWSON

                      CHIP APPLICATION TECHNOLOGIES LIMITED

                                SHARE OPTION DEED

                      IN RESPECT OF SHARES IN NOVATEC INC.

                            CORRS CHAMBERS WESTGARTH
                                     Lawyers
                        Level 32, Governor Phillip Tower
                                 1 Farrer Place
                                 SYDNEY NSW 2000
                                    AUSTRALIA
                               Tel: (02) 9210 6500
                               Fax: (02) 9210 6611
                                 DX: 133 Sydney
                                    Ref: MGL
                                CHIP5050-3333456
                                   S/816606/10

<PAGE>   2

                                       2
-------------------------------------------------------------------------------

                                    CONTENTS
<TABLE>

<S>                                                          <C>
   1 INTERPRETATION                                          122

   2 GRANT OF OPTIONS                                        124

   3 RIGHT TO EXERCISE OPTIONS                               125

   4 MANNER OF EXERCISE OF OPTIONS                           125

   5 ADJUSTMENTS                                             126

   6 AMENDMENT OF C.A.T. OPTIONS                             127

   7 CONSOLIDATION OF C.A.T. OPTIONS                         127

   8 US SECURITIES LAW                                       127

   9 NOTICES                                                 128

   10 MISCELLANEOUS                                          129

</TABLE>

<PAGE>   3
                                       3
-------------------------------------------------------------------------------

THIS DEED is made on 2 September 1999

BETWEEN           NOVATEC INC., (ARBN 089 327 882) a company incorporated in the
                  State of Delaware, United States of America, whose Australian
                  registered office is located at Level 15, The Ernst & Young
                  Building, 321 Kent Street, Sydney, NSW, 2000, Australia , (
                  "NOVATEC INC.")

AND               ALEXANDER S. DAWSON of 52 St Marks Road, Randwick, NSW, 2031,
                  Australia

                  (the "GRANTEE")]/

AND               CHIP APPLICATION TECHNOLOGIES LIMITED (ACN 057 883 333) of
                  Level 5, Cabcharge House, 152-162 Riley Street, East Sydney,
                  NSW, Australia ("C.A.T.")

RECITALS

NovaTec Inc. has agreed to grant the Grantee options over unissued shares in the
capital of the company on and subject to the terms of this document.

IT IS AGREED

1     INTERPRETATION

      1.1   DEFINITIONS

      In this document:

            "BUSINESS DAYS" means a day on which banks are open for business in
            Sydney, Australia and Delaware, United States of America, excluding
            a Saturday, Sunday or public holiday.

            "C.A.T. OPTION RULES" means the terms and conditions that apply to
            the C.A.T. Options as set out in Part 10.3 of the C.A.T. prospectus
            dated 15 May 1997 in respect of the offer of 3,333,333 ordinary
            shares at an issue price of 30 cents per share.

            "C.A.T. OPTIONS" means the Number of options in C.A.T. with an
            expiry date of 30 June 2000 registered in the name of the Grantor
            and exercisable at AUD 75 cents each, subject to adjustment in
            accordance with CLAUSE 7.

            "CLOSE OF REGISTERS" means 5:00pm (Sydney, Australia time) or in the
            case of proper SCH transfers, such time as permitted by SCH, on the
            date 5 Business Days after the date on which an office copy of the
            order of the Court to approve the Schemes of Arrangement is lodged
            with the Australian Stock Exchange Limited.

            "CONSOLIDATION" has the meaning given in CLAUSE 7.

            "COURT" means the Supreme Court of New South Wales or such other
            court from whom approval is sought by CAT for the Schemes of
            Arrangement under the Corporations Law.

            "DEED OF ACCESSION" means the deed substantially in the form of
SCHEDULE 3.

            "EQUIVALENT C.A.T. OPTIONS" has the meaning given to it in CLAUSE
            4.1(b).

            "EXERCISE PERIOD" means the period commencing at 9.00am (Sydney,
                  Australia time) on 1 July 2000 and ending at 5.00pm (Sydney,
                  Australia time) on 30 July 2000.]

<PAGE>   4

                                        4
-------------------------------------------------------------------------------

            "EXERCISE PRICE" means, subject to any adjustment required to be
            made to the exercise price of the NovaTec Options under the terms of
            this document.

            "NASDAQ" means The Nasdaq SmallCap Market.

            "NOVATEC OPTIONS" has the meaning given to it in CLAUSE 2.1.

            "OPERATIVE DATE" means the date of this document.

            "NUMBER" means:164,838

            "SCHEMES OF ARRANGEMENT" means the schemes of arrangement between
            C.A.T. and its shareholders and optionholders, so described in the
            Information Memorandum shortly to be issued by C.A.T. to its
            members, in the form in which they are implemented with approval of
            the Court.

            "SCH" means the securities clearing house.

            "SECURITIES ACT" means the US Securities Act of 1933.

            "SHARES" means fully paid shares of common stock of NovaTec Inc.

            "SHARES SCHEME OF ARRANGEMENT" means the scheme of arrangement
            between C.A.T. and its shareholders, so described in the Information
            Memorandum shortly to be issued by C.A.T. to its members, in the
            form in which it is implemented with approval of the Court.

      1.2   CONSTRUCTION

      Unless expressed to the contrary:

            (a)  words importing:

                  (i)  the singular include the plural and vice versa; and

                  (ii) any gender includes the other genders;

            (b)  if a word or phrase is defined cognate words and phrases have
                 corresponding definitions;

            (c)  a reference to:

                  (i)  a person includes a firm, unincorporated association,
                       corporation and a government or statutory body or
                       authority;

                  (ii) a person includes its legal personal representatives,
                       successors and assigns;

                  (iii)a statute, ordinance, code or other law includes
                       regulations and other statutory instruments under it and
                       consolidations, amendments, re-enactments or replacements
                       of any of them;

                  (iv) a right includes a benefit, remedy, discretion,
                       authority or power;

<PAGE>   5

                                       5
-------------------------------------------------------------------------------

                  (v)   an obligation includes a warranty or representation and
                        a reference to a failure to observe or perform an
                        obligation includes a breach of warranty or
                        representation; and

                  (vi) "AUD" means the lawful currency of Australia.

2     GRANT OF OPTIONS

      2.1   GRANT

      NovaTec Inc. grants to the Grantee the Number of options to subscribe for
      the Number of Shares exercisable at AUD 75 cents each (THE "NOVATEC
      OPTIONS").

      2.2   NO ISSUE PRICE

      No amount is payable by the Grantee on issue of the NovaTec Options.

      2.3   CERTIFICATE

      On or shortly after the Operative Date, NovaTec Inc. shall deliver a
      certificate to the Grantee in respect of the NovaTec Options. Such
      certificate shall contain the restrictive legend set forth in CLAUSE 8(c)
      and the following additional legend:

            "Immediately prior to the Close of Registers (as defined in the
            Share Option Deed in respect of Shares in NovaTec Inc. between
            NovaTec Inc., [ ] and Chip Application Technologies Limited dated 2
            September 1999), these options will (without further act or
            authority) be consolidated on a one-for-ten basis. Where that
            consolidation yields a number of options which is not a whole
            number, then the number of consolidated options shall be rounded-up
            to the nearest whole number."

      2.4   PERSONAL

      The NovaTec Options are personal to the Grantee and as such may not be
      transferred to any other person without the prior written consent of
      NovaTec Inc. (which consent shall not be unreasonably withheld) and then
      only in accordance with the by laws of NovaTec Inc., and on condition that
      the transferee executes a Deed of Accession agreeing to be bound by the
      terms of this document.

3     RIGHT TO EXERCISE OPTIONS

      3.1   RESTRICTIONS ON EXERCISE

      The Grantee may not exercise any of the NovaTec Options unless at the time
      of exercise all of the following conditions have been fulfilled:

            (a)   the Schemes of Arrangement have been implemented;

            (b)   exactly the same number of C.A.T. Options as the number of
                  NovaTec Options it is proposed will be exercised have expired
                  unexercised in accordance with the terms of the C.A.T. Option
                  Rules (the "EQUIVALENT C.A.T. OPTIONS"); and

<PAGE>   6

                                        6
-------------------------------------------------------------------------------

            (c)   the exercise price of each NovaTec Option that it is proposed
                  will be exercised is the same as the exercise price for each
                  Equivalent C.A.T. Option (not taking into account any
                  adjustment which is made to the exercise price of the
                  Equivalent C.A.T. Options pursuant to the C.A.T. Option Rules
                  or any adjustment made under the terms of this document to the
                  Exercise Price of the NovaTec Options that it is proposed will
                  be exercised).

      3.2   EXERCISE PERIOD

      The NovaTec Options may only be exercised during the Exercise Period. Any
      NovaTec Option that is not exercised by the expiry of the Exercise Period
      will automatically expire.

4     MANNER OF EXERCISE OF OPTIONS

      4.1   EXERCISE

      (a) NovaTec Options may be exercised by written notice to the Secretary
            of NovaTec Inc. The exercise notice must specify the number of
            shares required to be issued, which number must be a multiple of
            1000 (and, following the Consolidation, which number must be a
            multiple of 100) if only part of the total NovaTec Options are
            exercised, or if the total number of NovaTec Options held is less
            than 1000 (or, following the Consolidation, if the total number of
            NovaTec Options held is less than 100), then the total of all
            NovaTec Options held must be exercised. NovaTec Options will be
            deemed to have been exercised on the date that the application is
            lodged with the Secretary of NovaTec Inc.

            (b)   The exercise of less than all of the NovaTec Options will not
                  prevent the Grantee from exercising the whole or any part of
                  the balance of the Grantee's entitlement under his remaining
                  NovaTec Options.

            (c)   On exercise of the NovaTec Options the Grantee must surrender
                  the relevant NovaTec Option certificate(s), duly endorsed,
                  accompanied by a bank cheque to the order of C.A.T Inc., in an
                  amount equal to the aggregate Exercise Price for the Shares as
                  to which the NovaTec Options are being exercised.

      4.2   ISSUANCE OF SHARES

      Within 10 days of receipt of the application for the exercise of the
      NovaTec Options and payment by the Grantee of the Exercise Price, NovaTec
      Inc. must issue to the Grantee the number of Shares specified in the
      application.

5     ADJUSTMENTS

      5.1   PARTICIPATION IN STOCK DIVIDENDS AND REPURCHASES

            (a)   If NovaTec Inc. makes a stock dividend of shares or other
                  securities convertible into Shares pro rata to holders of
                  Shares (other than by way of dividend reinvestment pursuant to
                  any shareholder election), the Grantee will be entitled to
                  participate in such stock dividend, upon exercise of all or
                  part of the NovaTec Options on or before the record date for
                  that stock dividend, on the same basis as the holders of
                  Shares.

<PAGE>   7

                                       7
-------------------------------------------------------------------------------

            (b)   If NovaTec Inc. makes an offer to purchase Shares pro rata to
                  the holders of Shares, the Grantee will be entitled to
                  participate in such offer, upon exercise of all or part of the
                  NovaTec Options on or before the record date for that offer,
                  on the same basis as the holders of Shares.

            (c)   NovaTec Inc. must notify the Grantee at least 12 Business Days
                  before the record date for determining entitlements to an
                  offer referred to in CLAUSE 5.1(a) or CLAUSE 5.1(b) of:

                  (i)  the proposed terms of the issue of the offer; and

                  (ii) the right to exercise his NovaTec Options under CLAUSE
                       5.1(a) or CLAUSE 5.1(b) (as the case may be).

      5.2   ADJUSTMENT FOR STOCK DIVIDENDS

      If NovaTec Inc. makes a stock dividend of Shares pro rata to holders of
      Shares (other than by way of dividend reinvestment pursuant to any
      shareholder election), and the Grantee does not participate as provided in
      CLAUSE 5.1, then the number of Shares issued on exercise of each NovaTec
      Option will include the number of dividend shares that would have been
      issued to the Grantee if the NovaTec Option had been exercised prior to
      the books closing date for the stock dividend. No change will be made to
      the exercise date.

      5.3   RECONSTRUCTION

      In the event of a reconstruction (including stock split, consolidation,
      sub-division, reduction or reclassification) of the issued Shares, the
      number of NovaTec Options or the Exercise Price of NovaTec Options or both
      shall be reconstructed (as appropriate) in a manner which would not result
      in any benefits being conferred in the Grantee which are not conferred on
      shareholders of the Grantee (subject to the provisions with respect to
      rounding of entitlements as sanctioned by the meeting of shareholders
      approving the reconstruction of capital) but in all respects the terms for
      the exercise of NovaTec Options shall remain unchanged.

6     AMENDMENT OF C.A.T. OPTIONS

      (a)   Subject to paragraph (b) below, if the C.A.T. Option Rules or the
            terms of the C.A.T. Options are amended such that the amendment
            materially affects the rights attaching to the C.A.T. Options, the
            terms of this document that relate to the Options shall be deemed to
            have been amended to reflect the change to the C.A.T. Option Rules
            or the C.A.T. Options.

      (b)   If any amendment to the C.A.T. Option Rules or the terms of the
            C.A.T. Options is inconsistent or conflicts with the existing terms
            of this document, the terms of this document shall not be deemed to
            have been amended.

7     CONSOLIDATION OF C.A.T. OPTIONS

The parties agree that immediately prior to the Close of Registers, the C.A.T.
Options (without further act or authority) will be consolidated on a one-for-ten
basis ("CONSOLIDATION"). Where the Consolidation yields a number of C.A.T.
Options which is not a whole number, then the number of consolidated C.A.T.
Options shall be rounded-up to the nearest whole number.

<PAGE>   8

                                       8
-------------------------------------------------------------------------------

8     US SECURITIES LAW

      (a)   The Grantee hereby certifies that he is not a US person and is not
            acquiring the NovaTec Options (or the Shares upon exercise of the
            NovaTec Options) for the account or benefit of a US person.

      (b)   The Grantee agrees to:

            (i)   resell the Shares issued upon exercise of the NovaTec Options
                  only in accordance with the registration or exemption
                  provisions of the Securities Act or in compliance with
                  Regulation S under that Act; and
            (ii)  not engage in hedging transactions with regard to Shares
                  unless in compliance with the Securities Act.

      (c)   The Grantee acknowledges that each certificate representing the
            NovaTec Options shall contain the following restrictive legend:

                 "These options and the underlying shares of common stock have
                  not been registered under the US Securities Act of 1933. The
                  options may not be exercised by or on behalf of any US person
                  except in a transaction registered under the Act or an
                  exemption from registration under that Act."

9     NOTICES

      9.1   GENERAL

      A notice, demand, certification or other communication relating to this
      document must be given in English language and may be given by an agent of
      the sender.

            (a)  is to be given in writing and in the English language; and

            (b)  may be given by an agent of the sender.

      9.2   METHOD OF SERVICE

      In addition to any lawful means a communication may be given by:

            (a)  being personally served on a party;

            (b)  being left at the party's current address for service;

            (c)   being sent to the party's current address for service by
                  pre-paid ordinary mail or if the address is outside Australia,
                  by pre-paid air mail; or

            (d)  facsimile to the party's current number for service.

      9.3   PARTICULARS OF SERVICE

            (a)  The particulars for service are initially:

                  (i)  in the case of NovaTec Inc.:

<PAGE>   9

                                       9
-------------------------------------------------------------------------------

                       at the address hereinbefore mentioned

                       Fax: (02) 9248 5205

                       Attention: The Company's Australian Agent: Fellstar
                       Nominees (N.S.W.) Pty Limited

                  (ii) in the case of the Grantee:

                       at the address hereinbefore mentioned

                  (iii)in the case of C.A.T.:

                       at the address hereinbefore mentioned

                       Fax: (02)  9332 1285
                       Attention:  Company Secretary

            (b)   Each party may from time to time change its particulars for
                  service by notice to each other party.

      9.4   SERVICE

      If a communication is given by:

            (a)   post, it will be deemed received if posted within Australia to
                  an Australian address three Business Days after posting and in
                  any other case seven Business Days after posting;

            (b)   facsimile, and the sender's facsimile machine produces a
                  transmission confirmation report indicating that the facsimile
                  was sent to the addressee's facsimile, the report will be
                  prima facie evidence that the facsimile was received by the
                  addressee at the time indicated on that report.

10    MISCELLANEOUS

      10.1  STAMP DUTY

            (a)   The Grantee shall, as between the parties, be liable for and
                  duly pay all stamp duty (including any fine or penalty except
                  where it arises from default by the other party) on or
                  relating to this document and any document executed under it.

            (b)   If a party other than the Grantee pays any stamp duty
                  (including any fine or penalty) on or relating to this
                  document or any document executed under it, the Grantee shall
                  pay that amount to that party upon demand.

      10.2  LEGAL COSTS

<PAGE>   10

                                       10
-------------------------------------------------------------------------------

      Subject to any express provision in this document to the contrary, each
      party shall bear its own legal and other costs and expenses relating
      directly or indirectly to the preparation of, and performance of its
      obligations under, this document.

      10.3  AMENDMENT

      Unless this document is deemed to have been amended under CLAUSE 6, it may
      only be varied or replaced by a document duly executed by the parties.

      10.4  WAIVER AND EXERCISE OF RIGHTS

            (a)   A single or partial exercise or waiver of a right relating to
                  this document will not prevent any other exercise of that
                  right or the exercise of any other right.

            (b)   A party will not be liable for any loss, cost or expense of
                  any other party caused or contributed to by the waiver,
                  exercise, attempted exercise, failure to exercise or delay in
                  the exercise of a right.

      10.5  FURTHER ASSURANCE

      Each party shall promptly execute all documents and do all things that any
      other party from time to time reasonably requires of it to effect, perfect
      or complete the provisions of this document and any transaction
      contemplated by it.

      10.6  GOVERNING LAW AND JURISDICTION

            (a)   This document is governed by and is to be construed in
                  accordance with the laws in force in New South Wales.

            (b)   Each party irrevocably and unconditionally submits to the
                  non-exclusive jurisdiction of the courts of New South Wales
                  and any courts which have jurisdiction to hear appeals from
                  any of those courts and waives any right to object to any
                  proceedings being brought in those courts.

      10.7  COUNTERPARTS

      This document may consist of a number of counterparts and if so the
      counterparts taken together constitute one and the same instrument.

EXECUTION
Executed as a deed.<PAGE>   1
                                                                    EXHIBIT 10.3

                            [CATUITY INC. LETTERHEAD]

December 5, 1999

                                                                    CONFIDENTIAL
Mr. Michael Howe
62 Hampton Road,
Grosse Pointe Shores MI 48230

        Re:  Your Employment Agreement with Catuity, Inc.

Dear Michael:

Catuity Inc., a Delaware corporation (`Catuity'), is pleased to offer you a
position as its President and Chief Executive Officer on the terms set forth in
this letter agreement. As you know, Catuity is the parent company of Chip
Application Technologies Limited ("C.A.T."), an Australian company that has, we
believe, developed some highly competitive network application software for
merchant incentive and other program. Catuity is listed on the Australian Stock
Exchange and proposes to apply for listing on NASDAQ.

This agreement will be effective as of the date hereof (the "Effective Date")
subject to your acceptance by execution of a counterpart copy of this letter
where indicated below. Your start date of employment will be no later than
January 15, 2000. Your right to receive salary, bonus, benefits, shares, etc.
will commence with your start date of employment.

1.  REPORTING, DUTIES AND RESPONSIBILITIES, EMPLOYEE INVENTION ASSIGNMENT AND
    CONFIDENTIALITY AGREEMENT.

        In this position, you will report to the Board of Directors of Catuity.
        Your specific duties and responsibilities will be determined by the
        Board from time to time but will include executive management of Catuity
        and its subsidiaries, development and implementation of strategy and
        investment community relations. This offer is for a full-time position,
        located at the principal offices of Catuity located in the United States
        (to be determined by the board in consultation with you and currently
        anticipated to be either Denver, Colorado or Detroit, Michigan) except
        as travel to other locations (including overseas locations) may be
        necessary to fulfill your responsibilities. You also will execute
        Catuity's standard form of Employee Invention Assignment and
        Confidentiality Agreement, which is attached.

2.  SALARY, BONUS, BENEFITS, AND VACATION.

        (a) SALARY.

        Your initial base salary will be US$20,000 per month, which is an
        annualized salary of US$240,000, and is payable in accordance with
        Catuity's customary payroll practice as in effect from time to time;
        your salary commences on the date you first report for work with
        Catuity. This salary will be reviewed by the Board in conjunction with
        your annual performance review, but will not decline.

<PAGE>   2

        (b) CASH PERFORMANCE BONUS.

        Your cash performance bonus plan (commencing for calendar year 2000)
        will be determined each year at the time of budget review as determined
        by the Board of Directors, in consultation with you. Your first year
        cash performance bonus will be fixed at US$60,000 to be paid in four
        equal installments on 31 March, 30 June, 30 September and 31 December,
        2000.

        (c) STOCK OPTION GRANT.

        On the date you first report to work with Catuity, Catuity will be issue
        you stock options under our Stock Option Plan (currently being
        finalized), exercisable at the lower of

        (i)    the weighted average trading price of Catuity shares on the
               Australian Stock Exchange for the 30 days immediately prior to
               NASDAQ listing (converted to US$ at 0.65); and

        (ii)   the weighted average trading price of Catuity shares on the
               NASDAQ market for the 30 days immediately following NASDAQ
               listing and

        (iii)  The weighted average trading price of Catuity shares on the
               Australian Stock Exchange for the month of January 20900
               (converted to US$ at 0.65).

        but not less than 85% of the fair market value of Catuity shares as of
        date of grant.

        All options will have an expiry date of the earlier of 31 December 2008
        and the date six months after cessation of your employment with Catuity,
        subject to additional provisions of the Plan.

        In total you will be issued stock options on 315,000 shares of Common
        Stock (adjusted for any stock splits) in Catuity. The stock options will
        have the following vesting provisions (i.e. options will not be
        exercisable until vested):

        (i)    75,000 options will vest upon the date you first report to work
               with Catuity; and

        (ii)   12,000 options will vest at the end of each quarter, conditioned
               upon your continued employment by Catuity on the last day of each
               quarter, commencing on 31 March 2000 and concluding on 31
               December 2004.

        (d) BENEFITS AND VACATION.

        You will be eligible to participate in, without limitation, the
        retirement plans and medical, dental, life and disability insurance
        plans being established for Catuity; Catuity will reimburse you for
        those costs that you incur to exercise your COBRA rights to extend your
        existing insurance coverage until the effective date of your Catuity
        insurance coverage, which Catuity insurance coverage, will be provided
        for the term of this Agreement. In addition, you will be entitled,
        without loss of compensation, to three weeks of vacation during the
        first year of your employment, three weeks of vacation during the second
        year of your employment, and four weeks of vacation during the third and
        each successive year of your employment. You may only accrue unused
        vacation up to a maximum of six weeks; otherwise, additional vacation
        will cease to accrue until you reduce the accrued, unused amount through
        use of vacation.

<PAGE>   3

        You will further be entitled, at Catuity's expense, to be reimbursed for
        10 economy class return airfares from Detroit to the location of
        Catuity's principal office in the United States (if other than Detroit)
        in each year of employment.

(e)     RELOCATION

        Catuity will pay reasonable relocation expenses, to the extent
        necessary, for you to relocate to within the proximity of the principle
        offices of Catuity in the United States when the location of these
        offices is determined.

3.   TERM AND TERMINATION.

        The term of this agreement is for a period of five years commencing upon
        the Effective Date.

        (a) TERMINATION BY CATUITY FOR CAUSE.

        Catuity may only terminate your employment and this agreement without
        notice by reason of Termination for Cause. For purposes of this
        agreement, "TERMINATION FOR CAUSE" will mean termination of your
        employment by Catuity's Board, after consultation with you, for your
        dishonesty, fraud, gross negligence in performance of your duties,
        material breach of this agreement or any other contractual or fiduciary
        obligation to Catuity or under any policy or procedure of Catuity,
        intentional engagement in acts seriously detrimental to Catuity's
        operations or your being charged by governmental authorities with a
        felony. Upon your Termination for Cause by Catuity, you will be entitled
        to receive cash and other compensation, which has accrued through the
        date of termination, only,

        (b) TERMINATION BY CATUITY WITHOUT CAUSE.

        Catuity may only terminate your employment and this agreement without
        cause on one year's written notice (it being Catuity's right to pay base
        salary equal to one year's amount, in lieu of notice, in order to effect
        immediate termination; in such case, you will be obligated, in accepting
        such payment, to release Catuity from all other obligations other than
        Catuity's obligation to pay cash and other compensation, which has
        accrued through the date of termination to which you may be entitled.
        including 50% of the options entitlement for the year of termination.

        (c) TERMINATION BECAUSE OF DEATH, OR INCAPACITY DUE TO DISABILITY.

        Your employment with Catuity and this agreement will also terminate upon
        your death or by reason of your Incapacity Due to Disability. For
        purposes of this agreement, "INCAPACITY DUE TO DISABILITY" means if, at
        the end of any month, you are unable to perform substantially all of
        your duties under this agreement in the normal and regular manner due to
        illness, injury or mental or physical incapacity, and you have been
        unable or will be unable, in the good-faith judgement of the Catuity
        Board, so to perform for either (1) four consecutive full calendar
        months, or (2) 90 or more of the normal working days during any 12
        consecutive full calendar months. Nothing in this paragraph shall alter
        Catuity's obligations under applicable law, which may, in certain
        circumstances, result in the suspension or alteration of the foregoing
        time periods. Upon your termination for death or Incapacity Due to
        Disability, you will be entitled to receive cash and other compensation
        which has accrued through the date of termination.

        (d)  VOLUNTARY TERMINATION BY YOU.

<PAGE>   4

        You will be able to voluntarily terminate your employment and this
        Agreement at any time, provided that you must give Catuity at least six
        months advance written notice. Upon your voluntary termination, you will
        be entitled to receive cash and other compensation, which has accrued
        through the date of termination.

4.   OTHER MATTERS.

        You will not bring with you, or use, in the performance of your duties
        hereunder any confidential or proprietary material of any former
        employer, nor violate any lawful obligation to any former employer in
        the performance of your duties hereunder.

        Under your signature below, this will become our binding agreement with
        respect to the subject matter of this letter, superseding in their
        entirety all other or prior agreements and negotiations between us as to
        the subject matter of this letter, will be binding upon and inure to the
        benefit of our respective successors and assigns (although none of your
        rights or obligations hereunder is assignable), and your heirs,
        administrators and executors, will be governed by Delaware law, and may
        only be amended in a writing signed by you and Catuity.

Mike, we are very excited to have you join us and look forward to working with
you. I think we can have an exciting next few years.

                                       Sincerely,

                                       /S/ DAVID L. MAC SMITH
                                       ---------------------------
                                       David L. Mac Smith
                                       Catuity, Inc.

Attachment: Employee Invention Assignment and Confidentiality Agreement

ACCEPTED AND AGREED:

/S/ MICHAEL V. HOWE
----------------------
Michael V. Howe

Date signed: _________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}]]