Document:

OPTION AGREEMENT

       THIS  Option  Agreement  made  the  3  day  of  February  1998.
                                          ---

BETWEEN:

     ULTRACARD, INC., a company having an address at 5535 Peregrine Way, Blaine,
     Washington,  360371-3302.

     ("UltraCard")

     UPGRADE  INTERNATIONAL,  CORP.,  a  company  incorporated under the laws of
     Nevada, having an office and address at 1 5001 Birch Street, Newport Beach,
     California,  92660.

     ("Upgrade")

WHEREAS

A.     In a letter agreement dated January 30, 1998, Upgrade proposes to, or has
purchased  18.53%  of  the  issued  and  outstanding share capital of UltraCard.
Upgrade  desires  to  acquire  a  greater  equity  position  in  UltraCard.

B.     UltraCard desires to grant to Upgrade an option to purchase Shares on the
terms  and  conditions  set  out  herein.

NOW  THEREFORE  in consideration of the mutual promises contained herein and the
payment  of $1 by each party hereto to the other and for other good and valuable
consideration,  the  receipt  and  sufficiency  of  which  are acknowledged, the
parties  hereto  agree  as  follows:

                            ARTICLE 1: INTERPRETATION

1.1  DEFINITIONS

     In  this  Agreement  and  the recitals hereto, unless the context otherwise
requires, the following words and expressions shall have the following meanings:

     (a)  "Option" means the option granted to Upgrade under Section 2.1;

     (b)  "Option  Notice" means a notice  indicating that Upgrade is exercising
          the Option in whole or in part;

     (c)  "Option Price" means US$ 2,000,0000 required to be paid to acquire all
          the  Optioned  Shares  which may be  purchased  by Upgrade  under this
          Agreement;

     (d)  "Optioned  Shares" means 15% of the issued and  outstanding  Shares on
          the close of the  acquisition  of all the  Optioned  Shares under this
          Agreement.  This percentage will be adjusted, if necessary,  to result
          in Upgrade holding,  combined with its previous  holdings,  35% of the
          issued  and  outstanding  shares  of  UltraCard  on the  close  of the
          acquisition of the Option Shares;

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     (e)  "Shares"  means  the  shares  of the  common  stock  of  UltraCard  as
          currently constituted; and

     (f)  "Termination Date" means the dates as Scheduled in Section 2.4.

1.2  SECTIONS  AND  HEADINGS

          The  division  of  this  Agreement  into Articles and Sections and the
insertion  of  headings  are for the convenience of reference only and shall not
affect  the  construction  or interpretation of this Agreement.  The terms "this
Agreement",  "hereof",  "hereunder".  and  similar  expressions  refer  to  this
Agreement and not to any particular Article, Section or other portion hereof and
include  any  agreement  or instrument supplemental or ancillary hereto.  Unless
something in the subject matter or context is inconsistent therewith, references
herein  to Articles and Sections are to Articles and Sections of this Agreement.

1.3  EXTENDED  MEANINGS

          Words  importing the singular number only shall include the plural and
vice  versa  and  words  importing  gender shall include masculine, feminine and
neuter  genders.

1.4  UNITED  STATES  DOLLARS

          Unless otherwise  provided  herein,  all monetary amounts set forth in
          this Agreement are in United States dollars.

                              ARTICLE  2:  OPTION

          2.1     UltraCard hereby grants to Upgrade the irrevocable option (the
"Option")  to  purchase the Optioned Shares, at the Option Price, subject to the
terms  and  provisions  of  this  Agreement.

          2.2     The  Option  may  be exercised in whole or in part at any time
and  from  time  to  time up to and including the Termination Date in respect of
Optioned  Shares.  The Option may be exercised by Upgrade giving to UltraCard an
Option  Notice  accompanied  by  a  cheque or bank draft representing the Option
Price in respect of the Optioned Shares for which the Option is being exercised.

          2.3     Upgrade  will  receive a pro rata number of Optioned Shares on
the  exercise  of  a  part  of the Option.  The actual number of Optioned Shares
Upgrade  will  be  entitled  to  receive  will be based on the percentage of the
Option  Price  tendered  for  the  Option  Shares  and  the number of issued and
outstanding  Shares  at  that  time.

<PAGE>
          2.4     At  a  minimum,  Upgrade  must provide UltraCard notice of its
intent  of  exercise  its  right  to acquire the Optioned Shares by the close of
business  one  day  following  the  demonstration  of  the technology, currently
scheduled  to  be  in  or  before  Aug  31,  1998 and tender the Option Price as
follows:

          (a)     $  666,667  on  Demonstration  plus  one  day.
          (b)     $  666,667  on  Demonstration  plus  46  days.
          (c)     the  balance  of  $666,66  on  Demonstration  plus  77  days.

On  receipt  of  each  portion  of  the Option Price Upgrade will be entitled to
receive  5%  of  the  Optioned  Shares  from  treasury.

          2.5     UltraCard  will  at  all  times  prior to the Termination Date
reserve  and  keep  available such number of its Shares as will be sufficient to
satisfy  the  requirements  of  this  Agreement.

          2.6     Failure to tender the Option Price by the close of business on
the any of the dates Scheduled in Section 2.4 above will result in the immediate
termination  of  this  Agreement for any and all Optioned Shares still available
under  the  Agreement  at  that  time.

               ARTICLE  3:  FINANCING  RIGHT  OF  FIRST  REFUSAL

          3.1     UltraCard  agrees  that if it seeks to raise additional monies
through  an  equity  financing  UltraCard  will  seek approval from the Board of
Directors  of  UltraCard  as  to  the  amount and price in the form of a private
placement document.  UltraCard agrees that it will give Upgrade a first right of
refusal  to  finance  that private placement.  If Upgrade declines and UltraCard
attempts  to  sell  or raise monies from other sources, and has to discount as a
result of not being able to finance at the level Upgrade was offered, Upgrade is
to  be  given  the  right  of  first  refusal on any discount.  UltraCard agrees
Upgrade  will  have  the  right  of  first refusal to finance up until UltraCard
decides  to  proceed  with  an  initial  public  offering.

          3.2     The  right  of  first  refusal given in Section 3.1 above will
terminate  immediately  on  the  termination  of  this Agreement for any reason.

          ARTICLE  4:  REPRESENTATIONS  AND  WARRANTIES  OF  ULTRACARD

     UltraCard  hereby  represents  and  warrants  to  Upgrade  that:

          4.1     UltraCard  has  been  duly  incorporated  and organized and is
validly existing under the laws Nevada and has all requisite corporate power and
authority  to  carry  out  the  provisions  of  this  Agreement.

          4.2     UltraCard  has  taken all necessary corporate action to permit
all  of  the Optioned Shares to be validly issued to Upgrade and recorded on the
books  of  UltraCard  in the name of Upgrade or its nominee upon exercise of the
Option  in  whole or in part in accordance with the terms and conditions of this
Agreement and during the term of the Option UltraCard will maintain a sufficient
quantity  of  authorized  but  unissued  Shares  to  satisfy any exercise of the
Option.

          4.3     Except for the Optioned Shares, no person has any agreement or
option,  or  right  or privilege (whether pre-emptive or contractual) capable of
becoming an agreement (including convertible securities, warrants or convertible
options of any nature), for the purchase, subscription, allotment or issuance of
any  unissued  shares,  warrants  of  other  securities  of  UltraCard.

<PAGE>
          4.4     There is no action, proceeding or investigation pending or, to
the  knowledge  of  UltraCard  and  its directors and officers, threatened which
questions  the  validity  of  the issuance of the Optioned Shares, or any action
taken  or  to  be taken against UltraCard pursuant to or in connection with this
Agreement.

          4.5     UltraCard  is  not  in default or breach of, and the execution
and delivery of this Agreement by UltraCard, the performance and compliance with
the  terms of this Agreement, the sale of the Optioned Shares by UltraCard, will
not  result  in  any  breach  of, or be in conflict with or constitute a default
under,  or create a state of facts which after notice or lapse of time, or both,
would  constitute  a  default  under,  any  term  or provision of the constating
documents, by-laws or resolutions of UltraCard or any mortgage, note, indenture,
contract,  agreement  (written  or oral), instrument, lease or other document to
which  UltraCard  is  a  party  or any judgment, decree or order, or any term or
provision  thereof,  which materially adversely affects the business, operations
or  condition  (financial  or otherwise) of UltraCard or its property or assets.

          4.6     There  is  no person, firm or corporation acting or purporting
to  act  for  UltraCard  entitled to any brokerage or finder's fee in connection
with  this  Agreement or any of the transactions contemplated in this Agreement.

          5.7     This  Agreement  has  been  duly  authorized,  executed  and
delivered  on  behalf  of  UltraCard  and  is  a valid and binding obligation of
UltraCard  enforceable  in  accordance  with  its  terms  except  that rights to
indemnity  hereunder may be limited by applicable laws and except as enforcement
thereof may be limited by bankruptcy, insolvency or other similar laws affecting
enforcement  of  creditor's  rights.

          ARTICLE  5:  REPRESENTATIONS  AND  WARRANTIES  OF  UPGRADE

          Upgrade  hereby  represents  and  warrants  to  UltraCard  that:

          5.1     Upgrade  has  been  duly  incorporated  and  organized  and is
validly  existing  under  the laws Florida and has all requisite corporate power
and  authority  to  carry  out  the  provisions  of  this  Agreement.

          5.2     There is no action, proceeding or investigation pending or, to
the  knowledge  of  Upgrade  and  its  directors  and officers, threatened which
questions  the validity of the acquisition of the Optioned Shares, or any action
taken  or  to be taken by against Upgrade pursuant to or in connection with this
Agreement;

          5.3     Upgrade  is not in default or breach of, and the execution and
delivery  of  this Agreement by Upgrade, the performance and compliance with the
terms  of  this  Option  Agreement,  the  acquisition  of the Optioned Shares by
Upgrade, will not result in any breach of.  or be in conflict with or constitute
a default under, or create a state of facts which after notice or lapse of time,
or  both,  would  constitute  a  default  under,  any  term  or provision of the
constating  documents,  by-laws or resolutions of Upgrade or any mortgage, note,
indenture,  contract,  agreement  (written  or oral), instrument, lease or other
document  to  which  Upgrade is a party or any judgment, decree or order, or any
term  or  provision  thereof,  which  materially adversely affects the business,
operations  or  condition (financial or otherwise) of Upgrade or its property or
assets.

          5.4     Upgrade  has full corporate power and authority to acquire the
Optioned Shares, and all necessary corporate action has been taken by Upgrade to
acquire  the  Optioned  Shares.

<PAGE>
          5.5     There  is  no person, firm or corporation acting or purporting
to  act for Upgrade entitled to any brokerage or finder's fee in connection with
this  Agreement  or  any  of  the  transactions  contemplated in this Agreement.

          5.6     This  Agreement  has  been  duly  authorized,  executed  and
delivered  on behalf of Upgrade and is a valid and binding obligation of Upgrade
enforceable  in  accordance  with  its  terms  except  that  rights to indemnity
hereunder  may  be  limited by applicable laws and except as enforcement thereof
may  be  limited  by  bankruptcy,  insolvency  or  other  similar laws affecting
enforcement  of  creditor's  rights.

                              ARTICLE  6:  GENERAL

6.1  AMENDMENTS  AND  WAIVERS

          No modification, variation, amendment or termination by mutual consent
of  this  Agreement  and  no  waiver  of  the  performance  of  any  of  the
responsibilities  of  any  of  the  parties hereto shall be effected unless such
action  is  taken in writing and is signed by all parties.  No amendment to this
Agreement  shall  be  valid  or  binding  unless  set  forth in writing and duly
executed by all of the parties hereto.  No waiver of any breach of any provision
of  this  Agreement  shall  be  effective  or binding unless made in writing and
signed  by  the party purporting to give the same and, unless otherwise provided
in  the  written  waiver,  shall  be  limited  to  the  specific  breach waived.

6.2  SEVERABILITY

          Each of the covenants, provisions, Articles, Sections, subsections and
other  subdivisions  hereof  is  severable from every other covenant, provision,
Article,  Section,  subsection and the invalidity or unenforceability of any one
or  more  covenants, provisions, Articles, Sections, subsections or subdivisions
of  this  Agreement  shall  not  affect  the  validity  or enforceability of the
remaining  covenants,  provisions,  Articles,  Sections,  subsections  and
subdivisions  hereof.

6.3  TIME  OF  ESSENCE

     Time  shall  be  of  the  essence  in  this  Agreement.

6.4  NOTICE

     (1)  Any  notice  or  other  written  communication  required  or permitted
hereunder  shall  be  in  writing  and:

     (a)  delivered  personally to the party or, if the party is a  corporation,
          an officer of the party to whom it is directed;

     (b)  sent by registered  mail,  postage prepaid,  return receipt  requested
          (provided that such notice or other written communication shall not be
          forwarded  by mail if on the date of mailing  the party  sending  such
          communication  knows or ought  reasonably to know of any  difficulties
          with the  postal  system  which  might  affect the  delivery  of mail,
          including  the  existence  of an actual  or  imminent  postal  service
          disruption in the city from which such  communication  is to be mailed
          or in which the address of the recipient is found); or

<PAGE>
     (c)  Sent by facsimile or telex with all necessary  charges fully  prepaid,
          confirmation of delivery requested.

     (2)  All  such  notices  shall  be  addressed  to the  party  to whom it is
          directed at the following addresses:

     To  the  Upgrade:     Upgrade  International  Corp.
                           5535  Peregrine  Way
                           Blaine,  Washington  98230

                           Attention:  Daniel  Bland        Fax: (360) 354-8513

     To the Corporation:   UltraCard,  Inc.
                           5001  Birch  Street
                           Newport  Beach,  California
                           92660

                           Attention:  Daniel  Kehoe       Fax: (714) 224-1601

     (3)  Any  party  may  at  any time change its address  hereunder  by giving
notice of such  change of  address  to the other  party or parties in the manner
specified in this section. Any such notice or other written communication shall,
if mailed or given by telegram, be effective on the day it is first attempted to
be delivered to such party at such address  (whether or not such delivery  takes
place),  and if given by personal  delivery,  shall be  effective  on the day of
actual delivery.

6.4  ENTIRE  AGREEMENT

     This  Agreement  constitutes  and  contains  the  entire and only agreement
among  the  parties  relating to the matters described herein and supersedes and
cancels any and all previous agreements and understandings between all or any of
the  parties  relative  hereto.  Any  and  all  prior  and  contemporaneous
negotiations, memoranda of understanding or position, and preliminary drafts and
prior  versions  of  this  Agreement,  whether  signed  or unsigned, between the
parties  leading  up  to  the execution hereof shall not be used by any party to
construe  the  terms  or  affect  the  validity of this Agreement.  There are no
representations, inducements, promises, understandings, conditions or warranties
express,  implied  or statutory, between the parties other than as expressly set
forth  in  this  Agreement.

6.5  APPLICATION  OF  AGREEMENT

     This  Agreement  shall  be  binding  upon  and ensure to the benefit of the
parties hereto and their respective heirs, administrators, executors, successors
and  permitted  assigns.  Except as hereinafter provided, neither of the parties
hereto  may  assign  its  rights or obligations under this Agreement without the
prior  written consent of the other party hereto.  Upgrade may assign its rights
hereunder  to  any person to whom it is permitted to transfer some or all of its
Shares,  whether such permitted transferability is expressly provided for in the
Shareholders Agreement or otherwise consented to and approved in accordance with
the  Shareholders  Agreement.

<PAGE>
6.6  SUBDIVISION  OR  CONSOLIDATION  OF  SHARES

     If  the  Shares  are  changed  by  way of being classified or reclassified,
subdivided, consolidated or converted into a different number or class of shares
or  otherwise,  or  if  UltraCard  amalgamates, the Option Price and the type of
security  to  be delivered to Upgrade upon exercise of the Option in whole or in
part  shall  be adjusted accordingly, in all cases so that Upgrade shall receive
the  same  number and type of securities as would have resulted from such change
if  the  Option or the remaining part thereof had been exercised before the date
of  the  change.

6.7  REGISTRATION  AND  QUALIFICATION

     UltraCard  will  register  the  Option  with  all   applicable   government
authorities.  If UltraCard  makes a public offering of Shares during the term of
this Option it will register the Optioned Shares with the appropriate regulatory
authorities so that the Optioned Shares once converted may be freely tradable.

6.7  GOVERNING  LAW

     This  Agreement  shall  be governed by and construed in accordance with the
laws  of  the  State of Nevada and the laws of United States applicable therein.

6.8  EXECUTION

     This Agreement may be executed in several counterparts, each of which, when
so  executed,  shall be deemed to be an original, and such counterparts together
shall  constitute  one  and  the  same  instrument.

     IN  WITNESS WHEREOF the parties hereto have executed this as of the 3rd day
of  FEBRUARY,  1998.

ULTRACARD,  INC.                                     UPGRADE INTERNATIONAL, INC.

/s/  Daniel  Kehoe                                   /s/  Daniel S. Bland, Pres.
----------------------------------                   ---------------------------

<PAGE>
                               AMENDING AGREEMENT

          This  Amending  Agreement  made  the  12th  day  of  February,  1998.

BETWEEN  :

          ULTRACARD  INC,  a  company  having  an address at 5535 Peregrine Way,
          Blaine  Washington,  360371-3302.

          ("UltraCard")

          UPGRADE INTERNATIONAL, CORP., a company incorporated under the laws of
          Nevada,  having  an  office  and  address I 5001 Birch Street, Newport
          Beach, California  92660.

          ("Upgrade")

WHEREAS

          A.     in  a  letter  Agreement  dated  January  30,  1998  ("Letter
Agreement"),  Upgrade  proposes to purchase 18.53% of the issued and outstanding
share capital of UltraCard.

          B.     UltraCard  and Upgrade have agreed to amend  certain  terms  of
the  Letter  Agreement on as set out in this Amending Agreement.

NOW  THEREFORE in consideration of the mutual promise's continued herein and the
payment  of 51 by each party hereto to the other and for other good and valuable
consideration. The receipt and efficiency of which are acknowledged, the parties
hereto  agree  as  follows:

                               ARTICLE  1:  INTERPRETATION

1.1     DEFINITIONS

     Word  with  an  initial  capital  which  are  not otherwise defined in this
amending agreement have the meaning given to those words in the letter agreement
as  amended  by  this  Amending  Agreement

1.2  SECTIONS  AND  HEADINGS

     The  division  of  this  Agreement  in  to  Articles  and  Sections and the
insertion  of  headings  are further convenience of reference only and shall not
effect  the  construction  or  interpretation of this Agreement. The terms "this
Agreement",  "there  off",  "there under" and similar expressions prefer to this
agreement  and  not to any particular article, section or other portion here off
and  include any agreement or instrument supplemental or ancillary hereto unless
some  things  in  the  subject  matter  or  context  is in consistent therewith,
references herein to Articles and sections are too Articles and Sections of this
Agreement.

<PAGE>
1.3  EXTENDED  MEANING

          Words  importing the singular number only shall include the plural and
vice  versa  and  words  importing  gender shall include masculine, feinting and
neuter  genders.

1.3     UNITED  STATES  DOLLARS

          Unless  otherwise  provided  herein, all monetary amounts set forth in
this  Agreement  are  in  United  States  Dollars.

                    ARTICLE  2:  AMENDMENT  TO  LETTER  AGREEMENT

          Except  as provided in Article 3 below all of the terms and conditions
confide  in  the Letter Agreement will continue to apply unmanned for and during
the  terms  of  the  Letter  Agreement.

                         ARTICLE  3:  BASIC  TERMS

3.1     PARAGRAPH  1(2)  OF  LETTER  AGREEMENT

               Paragraph  1(2) of the Letter Agreement is replaced with the
               following paragraph:

               "(2) The  Corporation  received  partial payment of US$25,000 for
               the Shares on January 28,1998. The reminder of the purchase price
               for the  Shares  will be made by of on  behalf  of  upgrade  wire
               transfer to the Corporation as follows:

                    a    $ 40,000  by the  close of  business  (PST) on  Friday,
                         February 6,1998;
                    b    $ 50,000 by the close of business  (PST) on  Wednesday,
                         February  11,1998;  and
                    c    $ 335,000,  by the close of business  (PST) on Tuesday,
                         February 17,1998;

               If Upgrade should fail to tender the aggregate  purchase price of
               $ 450,000 by the close of business on Tuesday, February 17, 1998,
               the per share  purchase  price will change from S0.4444 per share
               to $1.00 per share. In other words,  the  Corporation  will issue
               one share for each dollar actually received by the Corporation."

3.2  SCHEDULES

     Schedule  "A"  in the Letter Agreement is no longer relevant and is removed
in its entirety.

                               ARTICLE 4: GENERAL

4.1  FULL  FORCE  AND  EFFECT

     The  Letter Agreement remains in full force and effect as expressly amended
by  this  Amending  Agreement.

4.2  GOVERNING  LAW

     This  Agreement  shall be governed by and construed  in accordance with the
laws  of  the  States  Nevada  and the laws of United States applicable therein.

<PAGE>
4.3  EXECUTION

     This  Agreement  may  be  executed  in several counterparts, each of which,
when  so  executed,  shall  be  deemed  to be an original, and such counterparts
together  shall  constitute  one  and  the  same  instrument.

     IN  WITNESS  WHEREOF  the  parties  hereto  have  executed  this  so of the
13-day  of  February,  1998.

ULTRACARD,  INC.                             UPGRADE  INTERNATIONAL,  INC.

/s/  Daniel  Kehoe                           /s/  Daniel S. Bland       Pres.
------------------------                     -----------------------------------

<PAGE>
                            AMENDING AGREEMENT NO. 2

     This  Amending  Agreement  is  made  this  4th  day of August, 1998, by and
                                               ----
between  ULTRACARD, INC. ("UltraCard"), a Nevada corporation, 5001 Birch Street,
Newport  Beach, California 92660, and UPGRADE INTERNATIONAL CORP. ("Upgrade"), a
Florida  corporation,  435  Martin  St.,  suite  1010, Blaine, Washington 98230.

     WHEREAS,  UltraCard  and Upgrade have entered into a letter agreement dated
January  30,  1998, and a subsequent Amending Agreement dated February 12, 1998,
pursuant  to  which  Upgrade  purchased  18.5%  of the outstanding shares of the
capital  stock  of  UltraCard;  and

     WHEREAS,  UltraCard and Upgrade also entered into an Option Agreement dated
February  3,  1998,  pursuant to which UltraCard granted to Upgrade an option to
purchase  an additional 15% of the outstanding shares of stock of UltraCard; and

     WHEREAS,  UltraCard  and  Upgrade have agreed to amend certain terms of the
aforesaid  Option  Agreement  to provide Upgrade with an option to acquire fifty
percent  (50%) of the issued and outstanding shares of stock of UltraCard on the
terms  and  conditions  set  forth  herein;

     NOW,  THEREFORE,  in  consideration of the mutual promises contained herein
and  the  payment  of  $1.00  by each party to the other, and for other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged,  the  parties  hereto  agree  as  follows:

                            ARTICLE 1: INTERPRETATION

1.1     DEFINITIONS. Capitalized words and terms which are not otherwise defined
in this Amending Agreement shall have the meaning given to those words and terms
in  the  Option  Agreement  as  amended  by  this  Amending  Agreement.

1.2     SECTIONS  AND HEADINGS. The division of this Agreement into Articles and
Sections  and  the  insertion  of  headings are for the convenience of reference
only, and shall not affect the construction or interpretation of this Agreement.
The  terms "this Agreement", "hereof", "hereunder" and similar expressions refer
to  this  Amending Agreement No 2 and not to any particular Article, Section, or
other  portion  hereof,  and include any agreement or instrument supplemental or
ancillary  hereto.  Unless  something  in  the  subject  matter  or  context  is
inconsistent  therewith,  references  herein  to  Articles  and  Sections are to
Articles  and  Sections  of  this  Agreement.

1.3     EXTENDED  MEANINGS.  Words  importing  the  singular  number  only shall
include  the  plural  and  vice  versa  and words importing gender shall include
masculine,  feminine  and  neuter  genders.

<PAGE>
1.4     UNITED  STATES  DOLLARS.  Unless otherwise provided herein, all monetary
amounts  set  forth  in  this  Agreement  are  in  United  States  dollars.

                    ARTICLE 2: AMENDMENT TO OPTION AGREEMENT

     Except  as  otherwise  provided  in  Article  3 below, all of the terms and
conditions  contained  in  the  Option Agreement shall continue to apply without
change  or  amendment.

                            ARTICLE 3: AMENDED TERMS

3.1     OPTION  PRICE.  Article  1,  Paragraph 1.1(c) of the Option Agreement is
hereby  amended  and  replaced  with  the  following  paragraph:

          "(c) "Option Price" means US $7,500,000 required to be paid to acquire
          all of the Optioned  Shares  which may be  purchased by Upgrade  under
          this Agreement;"

3.2     OPTIONED  SHARES. Article 1, Paragraph 1.1(d) of the Option Agreement is
hereby  amended  and  replaced  with  the  following  paragraph:

          "(d)  "Optioned  Shares" means  approximately  thirty-one and one-half
          percent (31.5%) of the issued and  outstanding  Shares on the close of
          the acquisition of all the Optioned Shares under this Agreement.  This
          percentage shall be adjusted, if necessary,  in order to guarantee and
          insure that Upgrade will own, on the close of the  acquisition  of all
          the  Optioned  Shares,  a total of fifty  percent  (50%) of all of the
          issued  and  outstanding  Shares of  UltraCard,  including  the Shares
          currently owned by Upgrade."

3.3     DEMONSTRATION  DATE.  A  new  paragraph  shall  be  added  to Article 1,
        Paragraph 1.l  (g), to define the term "Demonstration Date" as follows:

          "(g) "Demonstration Date" means the date on which all of the following
          events have occurred: (i) UltraCard has provided Upgrade with proof of
          concept which shall consist of a  demonstration  of the read/write and
          storage technology, and (ii) Upgrade has received written confirmation
          satisfactory  to Upgrade that the technology is viable both conditions
          of which  shall be  satisfied  on or before  August 5, 1998.  Further,
          Upgrade  acknowledges  it has observed and reviewed the  demonstration
          proof of concept provided by UltraCard on July 24-25, 1998.

<PAGE>
3.4     PAYMENT  OF  OPTION  PRICE.  Article  2,  Paragraph  2.4  of  the Option
Agreement  is  hereby  amended  and  replaced  with  the  following  paragraph:

          "2.4 Upgrade shall acquire the optioned shares of UltraCard and tender
          the  option  price to  UltraCard  in  accordance  with  the  following
          schedule:

          (a)     $150,000.00  on  or  before  August  14,  1998;
          (b)     $516,667.00  on  or  before  August  17,  1998.
          (c)     $1,500,000.00  on  or  before  September  21,  1998;
          (d)     $5,333,333.00  on  or  before  October  21,  1998.

          Upgrade  shall  be  entitled  to  receive  optioned  shares  equal  to
          approximately  five and one half percent (5.5%) for each  $666,667.000
          of Option Price  payments up to a total of  $2,000,000 in option price
          payments for approximately  sixteen and one half percent (16.5%). Upon
          final remittance of the Option Price payments in excess of Two Million
          Dollars ($2,000,000)  specified in subparagraphs (a)-(d) above Upgrade
          shall be entitled to receive  Optioned Shares equal to fifteen percent
          (15%) of the issued and outstanding Shares of UltraCard."

3.5     FAILURE  TO  TENDER BY TERMINATION DATE. Article 2, Paragraph 2.6 of the
Option  Agreement  is  hereby amended and replaced with the following paragraph:

          "2.6 Failure to tender the specified amount of the Option Price by the
          close of  business  on any of the  dates  scheduled  in  subparagraphs
          2.4(a), (b), (c) or (d) above will result in the immediate termination
          of this Agreement for any Optioned  Shares still  remaining under this
          Agreement at that time.

3.6     REPRESENTATIONS  AND WARRANTIES OF ULTRACARD. Two additional paragraphs,
Paragraphs  4.8  and  4.9,  shall  be  added  to  Article  4  as  follows:

          "4.8  UltraCard  shall  reserve and set aside no more than One Million
          (1,000,000)  authorized but unissued Shares of the corporation,  which
          Shares shall be part of and subject to a combined  incentive  and or a
          stock plan to be adopted and implemented by UltraCard."

          "4.9 UltraCard warrants that from the date Upgrade acquires all of the
          Optioned  Shares  under this  Agreement  until the date of any initial
          public  offering of the Shares of UltraCard,  UltraCard shall not take
          any  action or in any way allow or cause  Upgrade's  ownership  of the
          issued and outstanding  shares of UltraCard to become diluted so as to
          result in Upgrade  owning less than fifty  percent (50%) of all of the
          issued  and  outstanding  Shares  of  UltraCard.  In  the  event  that
          UltraCard  requires  additional  financing  prior to an initial public
          offering  of  UltraCard,   Inc.  shares,  Upgrade  agrees  to  provide
          sufficient debt financing on mutually  agreeable  terms.  Both parties
          agree that  repayment  of  any debt  financing  will be paid out of an
          initial  public offering  of UltraCard, Inc. shares.

<PAGE>
                               ARTICLE 4: GENERAL

4.1     FULL  FORCE  AND  EFFECT. Except as expressly amended by this Agreement,
all  of  the  terms,  conditions,  and  provisions of the Option Agreement shall
remain  in  full  force  and  effect.

4.2     EXECUTION.  This Agreement may be executed in several counterparts, each
of  which,  when  so  executed,  shall  be  deemed  to  be an original, and such
counterparts  together  shall  constitute  one  and  the  same  instrument.

     IN  WITNESS  WHEREOF,  the  parties  hereto  have  executed  this  Amending
Agreement  as  of  the  day  and  year  set  forth  above.

ULTRACARD,  INC.                              UPGRADE  INTERNATIONAL,  INC.

By   Daniel  Kehoe                            By     Daniel  S.  Bland
  -------------------                           --------------------------------

Its  President                                Its   President
     ---------                                   -------------------------------

<PAGE>
                            AMENDING AGREEMENT NO. 2

     This  Amending  Agreement  is  made  this  4th  day of August, 1998, by and
                                                ---
between  ULTRACARD, INC. ("UltraCard"), a Nevada corporation, 5001 Birch Street,
Newport  Beach, California 92660, and UPGRADE INTERNATIONAL CORP. ("Upgrade"), a
Florida  corporation,  435  Martin  St.,  suite  1010, Blaine, Washington 98230.

     WHEREAS,  UltraCard  and Upgrade have entered into a letter agreement dated
January  30,  1998, and a subsequent Amending Agreement dated February 12, 1998,
pursuant  to  which  Upgrade  purchased  18.5%  of the outstanding shares of the
capital  stock  of  UltraCard;  and

     WHEREAS,  UltraCard and Upgrade also entered into an Option Agreement dated
February  3,  1998,  pursuant to which UltraCard granted to Upgrade an option to
purchase  an additional 15% of the outstanding shares of stock of UltraCard; and

     WHEREAS,  UltraCard  and  Upgrade have agreed to amend certain terms of the
aforesaid  Option  Agreement  to provide Upgrade with an option to acquire fifty
percent  (50%) of the issued and outstanding shares of stock of UltraCard on the
terms  and  conditions  set  forth  herein;

     NOW,  THEREFORE,  in  consideration of the mutual promises contained herein
and  the  payment  of  $1.00  by each party to the other, and for other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged,  the  parties  hereto  agree  as  follows:

                            ARTICLE 1: INTERPRETATION

1.1     DEFINITIONS. Capitalized words and terms which are not otherwise defined
in this Amending Agreement shall have the meaning given to those words and terms
in  the  Option  Agreement  as  amended  by  this  Amending  Agreement.

1.2     SECTIONS  AND HEADINGS. The division of this Agreement into Articles and
Sections  and  the  insertion  of  headings are for the convenience of reference
only, and shall not affect the construction or interpretation of this Agreement.
The  terms "this Agreement", "hereof", "hereunder" and similar expressions refer
to  this  Amending Agreement No 2 and not to any particular Article, Section, or
other  portion  hereof,  and include any agreement or instrument supplemental or
ancillary  hereto.  Unless  something  in  the  subject  matter  or  context  is
inconsistent  therewith,  references  herein  to  Articles  and  Sections are to
Articles  and  Sections  of  this  Agreement.

1.3     EXTENDED  MEANINGS.  Words  importing  the  singular  number  only shall
include  the  plural  and  vice  versa  and words importing gender shall include
masculine,  feminine  and  neuter  genders.

<PAGE>
1.4     UNITED  STATES  DOLLARS.  Unless otherwise provided herein, all monetary
amounts  set  forth  in  this  Agreement  are  in  United  States  dollars.

                    ARTICLE 2: AMENDMENT TO OPTION AGREEMENT

     Except  as  otherwise  provided  in  Article  3 below, all of the terms and
conditions  contained  in  the  Option Agreement shall continue to apply without
change  or  amendment.

                            ARTICLE 3: AMENDED TERMS

3.1     OPTION  PRICE.  Article  1,  Paragraph 1.1(c) of the Option Agreement is
hereby  amended  and  replaced  with  the  following  paragraph:

          "(c) "Option Price" means US $7,500,000 required to be paid to acquire
          all of the Optioned  Shares  which may be  purchased by Upgrade  under
          this Agreement;"

3.2     OPTIONED  SHARES. Article 1, Paragraph 1.1(d) of the Option Agreement is
hereby  amended  and  replaced  with  the  following  paragraph:

          "(d)  "Optioned  Shares" means  approximately  thirty-one and one-half
          percent (31.5%) of the issued and  outstanding  Shares on the close of
          the acquisition of all the Optioned Shares under this Agreement.  This
          percentage shall be adjusted, if necessary,  in order to guarantee and
          insure that Upgrade will own, on the close of the  acquisition  of all
          the  Optioned  Shares,  a total of fifty  percent  (50%) of all of the
          issued  and  outstanding  Shares of  UltraCard,  including  the Shares
          currently owned by Upgrade."

3.3     DEMONSTRATION  DATE.  A  new  paragraph  shall  be  added  to Article 1,
Paragraph  1.l  (g),  to  define  the  term  "Demonstration  Date"  as  follows:

          "(g) "Demonstration Date" means the date on which all of the following
          events have occurred: (i) UltraCard has provided Upgrade with proof of
          concept which shall consist of a  demonstration  of the read/write and
          storage technology, and (ii) Upgrade has received written confirmation
          satisfactory  to Upgrade that the technology is viable both conditions
          of which  shall be  satisfied  on or before  August 5, 1998.  Further,
          Upgrade  acknowledges  it has observed and reviewed the  demonstration
          proof of concept provided by UltraCard on July 24-25, 1998.

<PAGE>
3.4     PAYMENT  OF  OPTION  PRICE.  Article  2,  Paragraph  2.4  of  the Option
Agreement  is  hereby  amended  and  replaced  with  the  following  paragraph:

          "2.4 Upgrade shall acquire the optioned shares of UltraCard and tender
          the  option  price to  UltraCard  in  accordance  with  the  following
          schedule:

          (a)     $290,000.00  which  UltraCard  acknowledges  the  receipt  of
          (b)     $110,000.00  on  or  before  October  16,  1998
          (c)     $1,000,000.00  on  or  before  October  21,  1988
          (d)     $1,000,000.00  no  later  than  2 weeks from the signing of an
                  underwriting  Agreement  initiated by Upgrade but in nay event
                  no later than November 30, 1998
          (f)     $5,100,000.00  on  or  before  January  31,  1998

          Upgrade  shall be entitled to receive  optioned  shares on a rata data
          basis equal to  approximately  sixteen and one half percent (16.5%) of
          the issued and  outstanding  shears  for each  $666,667.000  of Option
          Price  payments up to a total of $2,000,000  in option price  payments
          for  approximately  sixteen and one half percent  (16.5%).  Upon final
          remittance  of the  Option  Price  payments  in excess of Two  Million
          Dollars ($2,000,000)  specified in subparagraphs (a)-(d) above Upgrade
          shall be entitled to receive  Optioned Shares equal to fifteen percent
          (15%) of the issued and outstanding Shares of UltraCard."

3.5     FAILURE  TO  TENDER BY TERMINATION DATE. Article 2, Paragraph 2.6 of the
Option  Agreement  is  hereby amended and replaced with the following paragraph:

          "2.6 Failure to tender the specified amount of the Option Price by the
          close of  business  on any of the  dates  scheduled  in  subparagraphs
          2.4(a), (b), (c) or (d) above will result in the immediate termination
          of this Agreement for any Optioned  Shares still  remaining under this
          Agreement at that time.

3.6     REPRESENTATIONS  AND WARRANTIES OF ULTRACARD. Two additional paragraphs,
Paragraphs  4.8  and  4.9,  shall  be  added  to  Article  4  as  follows:

          "4.8  UltraCard  shall  reserve and set aside no more than One Million
          (1,000,000)  authorized but unissued Shares of the corporation,  which
          Shares shall be part of and subject to a combined  incentive  and or a
          stock plan to be adopted and implemented by UltraCard."

          "4.9 UltraCard warrants that from the date Upgrade acquires all of the
          Optioned  Shares  under this  Agreement  until the date of any initial
          public  offering of the Shares of UltraCard,  UltraCard shall not take
          any  action or in any way allow or cause  Upgrade's  ownership  of the
          issued and outstanding  shares of UltraCard to become diluted so as to
          result in Upgrade  owning less than fifty  percent (50%) of all of the
          issued  and  outstanding  Shares  of  UltraCard.  In  the  event  that
          UltraCard  requires  additional  financing  prior to an initial public

<PAGE>
          event that UltraCard requires additional financing prior to an initial
          offering  of  UltraCard,   Inc.  shares,  Upgrade  agrees  to  provide
          sufficient debt financing on mutually  agreeable  terms.  Both parties
          agree  that  repayment  of any debt  financing  will be paid out of an
          initial public offering of UltraCard, Inc. shares.

                               ARTICLE 4: GENERAL

4.1     FULL  FORCE  AND  EFFECT. Except as expressly amended by this Agreement,
all  of  the  terms,  conditions,  and  provisions of the Option Agreement shall
remain  in  full  force  and  effect.

4.2     EXECUTION.  This Agreement may be executed in several counterparts, each
of  which,  when  so  executed,  shall  be  deemed  to  be an original, and such
counterparts  together  shall  constitute  one  and  the  same  instrument.

     IN  WITNESS  WHEREOF,  the  parties  hereto  have  executed  this  Amending
Agreement  as  of  the  day  and  year  set  forth  above.

ULTRACARD,  INC.                                 UPGRADE  INTERNATIONAL,  INC.

By                                               By
  -----------------------                          -----------------------------

Its                                              Its
  -----------------------                           ----------------------------

<PAGE>
Ultracard, Inc.

                          5001 BIRCH STREET, NEWPORT BEACH, CA 92660, USA
                                 TEL: (714) 224-1600         FAX: (714) 224-1601

Mr.  Daniel  Bland
Upgrade  International,  Corp.
5535  Peregrine  Way
Blaine,  WA.  98230

Mr.  Daniel  Bland
Upgrade  International,  Corp.
435  Martin  St.  Ste.  1010
Blaine,  WA.  98230                                 December  3,  1998

via  facsimile:  360-354-8513;  and,  360-332-4309

Dear  Mr.  Bland:

Pursuant  to article 3.5 of the Amending Agreement No. 2 between UltraCard, Inc.
and Upgrade  International,  Corp.  dated August 4, 1998, UltraCard, Inc. hereby
notifies Upgrade International, Corp. that this agreement is terminated.

Sincerely,

/s/  Daniel  Kehoe
-------------------------
President

<PAGE>
                            AMENDING AGREEMENT NO. 3

     This  Amending  Agreement  is  made  second  day  of February, 1999, by and
between  ULTRACARD, INC. ("UltraCard"), a Nevada corporation, 5001 Birch Street,
Newport  Beach, California 92660, and UPGRADE INTERNATIONAL CORP. ("Upgrade"), a
Florida  corporation,  435  Martin  St.,  suite  1010, Blaine, Washington 98230.

     WHEREAS,  UltraCard  and Upgrade have entered into a letter agreement dated
January  30,  1998, and a subsequent Amending Agreement dated February 12, 1998.
pursuant  to  which  Upgrade  purchased  18.5%  of the outstanding shares of the
capital  stock  of  UltraCard;  and

     WHEREAS,  UltraCard and Upgrade also entered into an Option Agreement dated
February  3,  1998,  pursuant to which UltraCard granted to Upgrade an option to
purchase  an additional 15% of the outstanding shares of stock of UltraCard; and

     WHEREAS,  UltraCard  and  Upgrade have agreed to amend certain terms of the
aforesaid  Option  Agreement  to provide Upgrade with an option to acquire fifty
percent  (50%) of the issued and outstanding shares of stock of UltraCard on the
terms  and  conditions  set  forth  herein;

     NOW, THEREFORE in consideration of the mutual promises contained herein and
the payment of $1.00 by each party to the other, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties  hereto  agree  as  follows:

                            ARTICLE 1: INTERPRETATION

1.1     DEFINITIONS. Capitalized words and terms which are not otherwise defined
in this Amending Agreement shall have the meaning given to those words and terms
in  the  Option  Agreement  as  amended  by  this  Amending  Agreement.

1.2     SECTIONS  AND HEADINGS, The division of this Agreement into Articles and
Sections  and  the  insertion  of  headings are for the convenience of reference
only, and shall not affect the construction or interpretation of this Agreement.
The  terms "this Agreement", "hereof", "hereunder" and similar expressions refer
to  this Amending Agreement No. 2 and not to any particular Article, Section, or
other  portion  hereof  and  include any agreement or instrument supplemental or
ancillary  hereto.  Unless  something  in  the  subject  matter  or  context  is
inconsistent  therewith,  references  herein  to  Articles  and  Sections are to
Articles  and  Sections  or  this  Agreement.

1.3     EXTENDED  MEANINGS.  Words  importing  the  singular  number  only shall
include  the  and  vice  and  words  importing  gender  shall include masculine,
feminine  and  neuter  genders.

<PAGE>
1.4     UNITED  STATES  DOLLARS.  Unless otherwise provided herein, all monetary
amounts  set  forth  in  this  Agreement  are  in  United  States  dollars.

                    ARTICLE 2: AMENDMENT TO OPTION AGREEMENT

     Except  as  otherwise  provided  in  Article  3 below, all of the terms and
conditions  contained  in  the  Option Agreement shall continue to apply without
change  or  amendment.

                            ARTICLE 3: AMENDED TERMS

3.1     OPTION  PRICE.  Article  1,  Paragraph 1.1(c) of the Option Agreement is
hereby  amended  and  replaced  with  the  following  paragraph:

          "(c) "Option Price" means US $7,500,000 required to be paid to acquire
          all of the Optioned  Shares  which may be  purchased by Upgrade  under
          this Agreement;"

3.2     OPTIONED SHARES. Article 1, Paragraph 1.l (d) of the Option Agreement is
hereby  amended  and  replaced  with  the  following  paragraph:

          "(d)  "Optioned  Shares" means  approximately  thirty-one and one-half
          percent (31.5%) of the issued and  outstanding  Shares on the close of
          the acquisition of all the Optioned Shares under this Agreement.  This
          percentage shall be adjusted, if necessary,  in order to guarantee and
          insure that Upgrade will own, on the close of the  acquisition  of all
          the  Optioned  Shares,  a total of fifty  percent  (50%) of all of the
          issued  and  outstanding  Shares of  UltraCard,  including  the Shares
          currently owned by Upgrade." Until UltraCard  completes an IPO Upgrade
          agrees that it will  maintain no more than one board seat on the board
          of directors of UltraCard Inc.

3.3     DEMONSTRATION  DATE.  A  new  paragraph  shall  be  added  to Article 1,
Paragraph  1.1  (g),  to  define  the  term  "Demonstration  Date"  as  follows:

          "(g) "Demonstration Date" means the date on which all of the following
          events have occurred: (i) UltraCard has provided Upgrade with proof of
          concept which shall consist of a  demonstration  of the read/write and
          storage technology.  Upgrade acknowledges it has observed and reviewed
          the  demonstration  proof of concept  provided  by  UltraCard  on July
          24-25, 1998.

<PAGE>
3.4     PAYMENT  OF  OPTION  PRICE.  Article  2,  Paragraph  2.4  of  the Option
Agreement  is  hereby  amended  and  replaced  with  the  following  paragraph:

          "2.4 Upgrade shall acquire the optioned shares of UltraCard and tender
          the  option  price to  UltraCard  in  accordance  with  the  following
          schedule:

          (a)     $434,900.00  which  UltraCard  acknowledges  receipt  of;
          (b)     $50,000.00  on  or  before  February  01,  1999:
          (c)     $300,000.00  on  or  before  February  05,1999;
          (d)     $300,000.00  on  or  before  February  12,  1999;
          (e)     $300,000.00  on  or  before  February  19,  1999;
          (f)     $600,000.00  on  or  before  March  25,  1999;
          (g)     $2,669,000.00  on  or  before  May  10,  1999;
          (h)     $3,000,000.00  on  or  before  May  30,  1999;

          Upgrade shall be issued  optioned  shares at a price of 1.90 per share
          of UltraCard  for payments  specified in  subparagraph  (a)-(g).  Upon
          final remittance of the Option Price payment specified in subparagraph
          (h),  Upgrade shall have been issued Shares equal to 30% of the issued
          and outstanding Shares of UltraCard."

3.5     FAILURE  TO  TENDER BY TERMINATION DATE. Article 2, Paragraph 2.6 of the
Option  Agreement  is  hereby amended and replaced with the following paragraph:

          "2.6 Failure to tender the specified amount of the Option Price by the
          close of business forty eight hours from any of the dates scheduled in
          subparagraphs  2.4(a),  (b), (c), (d), (e), (f). (g), (h) or (I) above
          will result in the  immediate  termination  of this  Agreement for any
          Optioned Shares still remaining under this Agreement at that time.

3.6     REPRESENTATIONS  AND WARRANTIES OF ULTRACARD. Two additional paragraphs,
Paragraphs  4.8  and  4.9.  shall  be  added  to  Article  4  as  follows:

          "4.8  UltraCard  shall  reserve and set aside no more than One Million
          (l,000,000)  authorized but unissued Shares of the corporation,  which
          Shares shall be part of and subject to a combined  incentive  and or a
          stock plan to be adopted and implemented by UltraCard."

          "4.9 UltraCard warrants that from the date Upgrade acquires all of the
          Optioned  Shares  under this  Agreement  until the date of any initial
          public  offering of the Shares of UltraCard,  UltraCard shall not take
          any  action or in any way allow or cause  Upgrade's  ownership  of the
          issued and outstanding  shares of UltraCard to become diluted so as to
          result in Upgrade  owning less than fifty  percent (50%) of all of the
          issued  and  outstanding  Shares  of  UltraCard.  In  the  event  that
          UltraCard  requires  additional  financing  prior to an initial public

<PAGE>
          offering  of  UltraCard,   Inc.  shares,  Upgrade  agrees  to  provide
          sufficient debt financing on mutually  agreeable  terms.  Both parties
          agree  that  repayment  of any debt  financing  will be paid out of an
          initial public offering of UltraCard, Inc. shares.

                               ARTICLE 4: GENERAL

4.1     FULL  FORCE  AND  EFFECT. Except as expressly amended by this Agreement,
all  of  the  terms,  conditions,  and  provisions of the Option Agreement shall
remain  in  full  force  and  effect.

4.2     EXECUTION.  This Agreement may be executed in several counterparts, each
of  which,  when  so  executed,  shall  be  deemed  to  be an original, and such
counterparts  together  shall  constitute  one  and  the  same  instrument.

     IN  WITNESS  WHEREOF,  the  parties  hereto  have  executed  this  Amending
Agreement  as  of  the  day  and  year  set  forth  above.

ULTRACARD,  INC.                               UPGRADE  INTERNATIONAL,  INC.

By      Daniel  Kehoe                          By     Daniel  S.  Bland
  -------------------                            -------------------------------

Its     President                              Its  President
   -------------------                            ------------------------------

<PAGE>
                            AMENDING AGREEMENT NO. 3

     This  Amending  Agreement  is  made  30th   day  of  December, 1998, by and
between  ULTRACARD, INC. ("UltraCard"), a Nevada corporation, 5001 Birch Street,
Newport  Beach, California 92660, and UPGRADE INTERNATIONAL CORP. ("Upgrade"), a
Florida  corporation,  435  Martin  St.,  suite  1010, Blaine, Washington 98230.

     WHEREAS,  UltraCard  and Upgrade have entered into a letter agreement dated
January  30,  1998, and a subsequent Amending Agreement dated February 12, 1998.
Pursuant  to  which  Upgrade  purchased  18.5%  of the outstanding shares of the
capital  stock  of  UltraCard;  and

     WHEREAS,  UltraCard and Upgrade also entered into an Option Agreement dated
February  3,  1998,  pursuant to which UltraCard granted to Upgrade an option to
purchase  An additional 15% of the outstanding shares of stock of UltraCard; and

     WHEREAS,  UltraCard  and  Upgrade have agreed to amend certain terms of the
aforesaid  Option  Agreement  to provide Upgrade with an option to acquire fifty
percent  (50%) of the issued and outstanding shares of stock of UltraCard on the
terms  and  conditions  set  forth  herein;

NOW,  THEREFORE in consideration of the mutual promises contained herein and the
payment  of  $1.00  by  each party to the other, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties  hereto  agree  as  follows:

                            ARTICLE 1: INTERPRETATION

1.1     DEFINITIONS. Capitalized words and terms which are not otherwise defined
in this Amending Agreement shall have the meaning given to those words and terms
in  the  Option  Agreement  as  amended  by  this  Amending  Agreement.

1.2     SECTIONS  AND HEADINGS, The division of this Agreement into Articles and
Sections  and  the  insertion  of  headings are for the convenience of reference
only, and shall not affect the construction or interpretation of this Agreement.
The  terms "this Agreement", "hereof", "hereunder" and similar expressions refer
to  this Amending Agreement No. 2 and not to any particular Article, Section, or
other  portion  hereof  and  include any agreement or instrument supplemental or
ancillary  hereto.  Unless  something  in  the  subject  matter  or  context  is
inconsistent  therewith,  references  herein  to  Articles  and  Sections are to
Articles  and  Sections  or  this  Agreement.

1.3     EXTENDED  MEANINGS.  Words  importing  the  singular  number  only shall
include  the  and  vice  and  words  importing  gender  shall include masculine,
feminine  and  neuter  genders.

<PAGE>
1.4     UNITED  STATES  DOLLARS.  Unless otherwise provided herein, all monetary
amounts  set  forth  in  this  Agreement  are  in  United  States  dollars.

                    ARTICLE 2: AMENDMENT TO OPTION AGREEMENT

     Except  as  otherwise  provided  in  Article  3 below, all of the terms and
conditions  contained  in  the  Option Agreement shall continue to apply without
change  or  amendment.

                            ARTICLE 3: AMENDED TERMS

3.1     OPTION  PRICE.  Article  1,  Paragraph 1.1(c) of the Option Agreement is
hereby  amended  and  replaced  with  the  following  paragraph:

          "(c) "Option Price" means US $7,500,000 required to be paid to acquire
          all of the Optioned  Shares  which may be  purchased by Upgrade  under
          this Agreement;"

3.2     OPTIONED SHARES. Article 1, Paragraph 1.l (d) of the Option Agreement is
hereby  amended  and  replaced  with  the  following  paragraph:

          "(d)  "Optioned  Shares" means  approximately  thirty-one and one-half
          percent (31.5%) of the issued and  outstanding  Shares on the close of
          the acquisition of all the Optioned Shares under this Agreement.  This
          percentage shall be adjusted, if necessary,  in order to guarantee and
          insure that Upgrade will own, on the close of the  acquisition  of all
          the  Optioned  Shares,  a total of fifty  percent  (50%) of all of the
          issued  and  outstanding  Shares of  UltraCard,  including  the Shares
          currently owned by Upgrade."

3.3     DEMONSTRATION  DATE.  A  new  paragraph  shall  be  added  to Article 1,
Paragraph  1.1  (g),  to  define  the  term  "Demonstration  Date"  as  follows:

          "(g) "Demonstration Date" means the date on which all of the following
          events have occurred: (i) UltraCard has provided Upgrade with proof of
          concept which shall consist of a  demonstration  of the read/write and
          storage technology, and (ii) Upgrade has received written confirmation
          satisfactory  to Upgrade that the technology is viable both conditions
          of which  shall be  satisfied  on or before  August 5, 1998.  Further,
          Upgrade  acknowledges  it has observed and reviewed the  demonstration
          proof of concept provided by UltraCard on July 24-25, 1998.

<PAGE>
3.4     PAYMENT  OF  OPTION  PRICE.  Article  2,  Paragraph  2.4  of  the Option
Agreement  is  hereby  amended  and  replaced  with  the  following  paragraph:

          "2.4 Upgrade shall acquire the optioned shares of UltraCard and tender
          the  option  price to  UltraCard  in  accordance  with  the  following
          schedule:

          (a)     $4,34,900.00  which  UltraCard  acknowledges  receipt  of;
          (b)     $50,000.00  on  or  before  February  01,  1999:
          (c)     $300,000.00  on  or  before  February  05,  1999;
          (d)     $300,000.00  on  or  before  February  12,  1999;
          (e)     $300,000.00  on  or  before  February  19,  1999;
          (f)     $600,000.00  on  or  before  March  25,  1999;
          (g)     $2,669,000.00  on  or  before  May  10,  1999;
          (h)     $3,000,000.00  on  or  before  May  30,  1999;

          Upgrade shall be issued  optioned  shares at a price of 1.90 per share
          of UltraCard  for payments  specified in  subparagraph  (a)-(g).  Upon
          final remittance of the Option Price payment specified in subparagraph
          (h),  Upgrade shall have been issued Shares equal to 30% of the issued
          and outstanding Shares of UltraCard."

3.5     FAILURE  TO  TENDER BY TERMINATION DATE. Article 2, Paragraph 2.6 of the
Option  Agreement  is  hereby amended and replaced with the following paragraph:

          "2.6 Failure to tender the specified amount of the Option Price by the
          close if business forty eight hours from any of the dates scheduled in
          subparagraphs  2.4(a),  (b), (c), (d), (e), (f). (g), (h) or (I) above
          will result in the  immediate  termination  of this  Agreement for any
          Optioned Shares still remaining under this Agreement at that time.

3.6      REPRESENTATIONS AND WARRANTIES OF ULTRACARD. Two additional paragraphs,
Paragraphs  4.8  and  4.9.  shall  be  added  to  Article  4  as  follows:

          "4.8  UltraCard  shall  reserve and set aside no more than One Million
          (l,000,000)  authorized but unissued Shares of the corporation,  which
          Shares shall be part of and subject to a combined  incentive  and or a
          stock plan to be adopted and implemented by UltraCard."

          "4.9 UltraCard warrants that from the date Upgrade acquires all of the
          Optioned  Shares  under this  Agreement  until the date of any initial
          public  offering of the Shares of UltraCard,  UltraCard shall not take
          any  action or in any way allow or cause  Upgrade's  ownership  of the
          issued and outstanding  shares of UltraCard to become diluted so as to
          result in Upgrade  owning less than fifty  percent (50%) of all of the
          issued  and  outstanding  Shares  of  UltraCard.  In  the  event  that
          UltraCard requires additional financing prior to an initial public

<PAGE>LICENSE AGREEMENT

THIS  LICENSE  AGREEMENT made and entered into as of October 1, 1999, is between
AMPEX  CORPORATION,  a  corporation  of  Delaware, having a place of business at
Redwood  City,  California  ("LICENSOR"),  and UltraCard, Inc., a corporation of
Nevada,  having  a  place  of  business  at  Campbell,  California ("LICENSEE").

                                   WITNESSETH:

WHEREAS,  LICENSOR  has developed propriety and trade secret technology relating
to  the  recording and reproduction of information on magnetic media using a low
coercivity magnetic layer, generally referred to as "Keepered Media Technology,"
and  has  obtained  patents  in the United States and elsewhere relating to such
technology  ("Keepered  Media  Patents");  and

WHEREAS,  LICENSEE  has  developed  propriety  and  trade  secret technology for
enhancing  the  recording of information on magnetic media particularly suitable
for  use  as  a  recordable  strip  or  surface  on a transportable card or as a
portable  card  ("Magnetic  Card");  and

WHEREAS,  LICENSEE  wishes  to  incorporate  Keepered  Media  Technology  in the
development  of  its  Magnetic  Cards  and  wishes to incorporate Keepered Media
Technology  into its development, manufacture, use and/or sale of Magnetic Cards
and  to  that end, LICENSEE believes it appropriate to have, and is desirous  of
acquiring  and  has  requested LICENSOR to grant it, a non-exclusive licenses to
use  its  Keepered  Media  Technology  in  Magnetic  Cards;  and

WHEREAS, LICENSEE is desirous of having assurance that its Magnetic Cards may be
manufactured,  used  and sold throughout the world, without risk of infringement
of  such  patents of LICENSOR; and to that end, LICENSEE believes it appropriate
to have, and is desirous of acquiring, and has requested LICENSOR to grant it, a
non-exclusive  license  under  the  Keepered  Media  Patents for Magnetic Cards.

NOW,  THEREFORE,  in  consideration of the foregoing and in consideration of the
mutual  terms  hereinafter  set  forth,  the  parties  hereby  agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

Section  1.     "MAGNETIC  CARD"  means  a data card, transaction card, portable
-----------
card  or  other  transportable  card disposed for writing and reading storage of
information  through  use of linearly, radially, accurately or circumferentially
shaped  tracks  for  storing  magnetic  signals, and which incorporates KEEPERED
MEDIA  TECHNOLOGY.

Section  2.     "MAGNETIC  CARD  RECORDER"  means  a recorder utilizing magnetic
-----------
media  for  recording  and/or  reproducing  information  on  a  MAGNETIC  CARD.

Section  3.     "REPLACEMENT  PART"  means  a  non-consumable  component  or
-----------
subassembly,  covered  by  KEEPREED  MEDIA  PATENT  or  KEEPREED  MEDIA  PATENT
APPLICATION,  for use in MAGNETIC CARD RECORDER previously sold, leased, used or
otherwise  disposed  of  by  LICENSEE  under  this  Agreement.

Section 4.     "LICENSED PRODUCT" means a MAGNETIC CARD, MAGNETIC CARD RECORDER,
----------
or  REPLACEMENT  PART covered by one or more of the claims of the KEEPERED MEDIA
PATENTS.

                                  Page 1 of 11
<PAGE>
Section  5.     "KEEPERED  MEDIA"  means a recording medium using low coercivity
-----------
magnetic  material  to enhance its recording and/or reproducing characteristics.

Section  6.     "KEEPERED  MEDIA  PATENTS"  means the patents and utility models
-----------
listed  on  the  attached SCHEDULE. A useful in MAGNETIC CARDS and MAGNETIC CARD
RECORDERS  with respect to which LICENSOR shall have the right to grant licenses
of  the  scope  herein  granted  without  the  payment  of  royalties  or  other
consideration to third parties, except for payments to an AFFILIATE of LICENSOR.
LICENSOR  represents  that  it  has  used  its  best efforts to list in attached
SCHEDULE  A  all patents useful in MAGNETIC CARDS and MAGNETIC CARD RECORDERS in
the  field of this license owned by it and issued or published prior to the date
of this Agreement. In the event that any of such patents have been omitted, they
will  be  added  to  SCHEDULE  A  at  any  time  at  the  request  of  LICENSEE.

Section  7.     "KEEPERED  MEDIA PATENT APPLICATIONS" means all applications for
-----------
patent  and  utility  model of any country of the world useful in MAGNETIC CARDS
and  MAGNETIC  CARD RECORDERS having a filing date prior to October 1, 1999, and
any  counterpart  patent applications of other countries, and any continuations,
reissues  or  divisionals of such applications, regardless of filing, which when
issued  or  published  will  become  "KEEPERED  MEDIA  PATENTS." Upon request of
LICENSEE,  LICENSOR  will  provide  an  updated  copy of SCHEDULE A showing with
current  information  regarding  KEPPERED  MEDIA  PATENTS.

Section  8.     "KEEPERED  MEDIA  TECHNOLOGY"  means  the  proprietary and trade
-----------
secret  technology  developed by LICENSOR and useful in the design, development,
manufacture,  recording  and  reading  of  MAGNETIC  CARDS  using low coercivity
magnetic  material  to enhance its recording and/or reproducing characteristics.

Section  9.     "LICENSED  TRADEMARK"  means "Keepered Media" in word, stylized,
-----------
graphic  or  logo  form.

Section  10.     "AFFILIATE"  as used herein with reference to any party hereto,
------------
means  any  person, association, corporation or other legal entity in which such
party  owns,  directly or indirectly, a beneficial interest of ten percent (10%)
or  more,  or  which,  directly or indirectly, owns a beneficial interest of ten
percent  (10%)  or  more  in  such,  party,  or  which,  directly or indirectly,
controls, or is controlled by, or under common control with, such party, For the
purpose  of  this  definition,  the  terms "controls," "controlled by" or "under
common  control  with," as used with respect to any person, firm, corporation or
other legal entity means the possession, directly or indirectly, of the power to
direct  or  cause  the  direction of the management and policies of such person,
firm, corporation or other legal entity, whether through the ownership of voting
securities,  or  by  contract,  or  otherwise.

Section  11.     "SUBSIDIARY,"  as used herein with reference to a party hereto,
------------
means  a  corporation  or  other  legal entity, more than fifty percent (50%) of
whose  outstanding  shares of stock or other securities entitled to cote for the
election  of  directories  or other managing authority (other than any shares of
stock  whose voting rights are subject to restriction) is owned or controlled by
such  party,  directly  or  indirectly.

Section  12.     "ROYALTY  YEAR"  shall  mean the twelve month period commencing
------------
from  October  1  of  each  year.

                                   ARTICLE II
                                GRANT OF LICENSE

Section  1.     LICENSOR  hereby  grants  to LICENSEE a personal, non-exclusive,
-----------
indivisible,  non-transferable  license  under  the  KEEPERED  MEDIA PATENTS and
KEEPERED  MEDIA  PATENT

                                  Page 2 of 11
<PAGE>
APPLICATION  to  which  reference  is  made in Section 6 and 7, respectfully, of
ARTICLE  I  hereof, to make, and use, sell, lease or otherwise transfer LICENSED
PRODUCTS  throughout  the world. LICENSOR further grants to LICENSEE a personal,
non-exclusive,  indivisible,  non-transferable  license  to  use  KEEPERED MEDIA
TECHNOLOGY.

Section  2.     The licenses granted under Section 1 of this Article II shall be
-----------
exclusive  as  long  as  LICENSEE  shall meet and continue to meet the following
requirements:
a.     LICENSEE  shall establish and maintain a business for the manufacture and
       sale  of  LICENSED  PRODUCTS
b.     LICENSEE shall make all minimum royalty payments required for exclusivity
       under  Section  3  of  Article  IV.
Upon  any  failure  of  LICENSEE  to  meet  any  of the requirements to maintain
LICENSEE's  license  under this Agreement as exclusive, the license shall become
non-exclusive forthwith and shall remain non-exclusive for the remaining term of
the  License  Agreement.

                                   ARTICLE III
                                      TERM

The  term  of  the  patent  license herein granted shall commence as of the date
first  set  forth  above and shall continue as to each KEEPERED MEDIA PATENT for
its  life  and  as to each KEEPERED MEDIA PATENT APPLICATION for the life of any
patents  issuing thereon, unless this license if terminated sooner in accordance
with  the  provisions  of  ARTICLE  VIII, hereof. The term of the license herein
granted  under KEEPERED MEDIA TECHNOLOGY shall commence as of the date first set
forth  above  and shall continue in perpetuity, unless his license is terminated
sooner  in  accordance  with  the  provisions  of  ARTICLE  VIII,  hereof.

                                   ARTICLE IV
                              PAYMENT AND ROYALTIES

Section 1.     As to each MAGNETIC CARD manufactured by or for LICENSEE and sold
----------
or otherwise disposed of by LICENSEE or manufactured, sold or otherwise disposed
of by others under license for LICENSEE throughout the world until expiration of
the  last  to  expire  of  the  KEEPERED  MEDIA  PATENTS, LICENSEE shall pay the
following  royalties  to  LICENSOR  during  each  ROYALTY  YEAR.

     $0.05  per  MAGNETIC  CARD  for  the  first  300  million  MAGNETIC  CARDS
     $0.03  per  MAGNETIC  CARD  for  the  next  300  million  MAGNETIC  CARDS
     $0.01  per  MAGNETIC  CARD  for  each  addition  MAGNETIC  CARD

Section 2.     As to each MAGNETIC CARD manufactured, sold or otherwise disposed
----------
of  by  LICENSEE  or manufactured, sold or otherwise disposed of by others under
license  from LICENSEE throughout the world for a period of five (5) years after
expiration  of  the last to expire of the KEEPERED MEDIA PATENTS, LICENSEE shall
pay  the  following  royalties  to  LICENSOR  during  each  ROYALTY  YEAR:

     $0.02  per  MAGNETIC  CARD  for  the  first  300  million  MAGNETIC  CARDS
     $0.01  per  MAGNETIC  CARD  for  the  next  300  million  MAGNETIC  CARDS
     $0.005  per  MAGNETIC  CARD  for  each  addition  MAGNETIC  CARD

                                  Page 3 of 11
<PAGE>
Section  3.     As  to  LICENSED PRODUCTS other than MAGNETIC CARDS, the royalty
-----------
due  until  expiration of the last to expire of the KEEPERED MEDIA PATENTS shall
be  three  percent  (3%)  of  net  sales, which shall be gross sales less actual
discounts,  sales  commissions,  freight,  taxes  and  returns.

Section  4.     The minimum royalties to be paid by LICENSEE to LICENSOR for all
-----------
LICENSED  PRODUCTS  to  maintain  it  exclusivity  shall  be  as  follows:

   First Year                    $ 0
   Second ROYALTY YEAR           Royalties of at least $875 thousand per quarter
   Third ROYALTY YEAR            Royalties of at least $15 million for the year
   Fourth ROYALTY YEAR           Royalties of at least $24 million for the year
   Each Subsequent ROYALTY YEAR  Royalties of at least $24 million for the year

Section 5.     It is understood and agreed that all sums of money referred to in
----------
this Agreement as being payable by LICENSEE to LICENSOR shall be sums payable at
a United States Bank to be designated by LICENSOR, in the United States dollars.

Section  6.     Within  sixty (60) day after March 31, June 30, September 30 and
-----------
December  31 of each year, LICENSEE shall submit to LICENSOR an accurate written
report,  duly  certified  once  a  year  by  LICENSEE's chief financial officer,
setting  forth for LICENSEE, and for each sublicensee of LICENSEE, the number of
MAGNETIC  CARDS  sold,  leased  or  otherwise  transferred  during the preceding
quarter,  the  total  number  of  MAGNETIC  CARDS  sold,  leased,  or  otherwise
transferred  to  date  during the current year and the royalty payable. LICENSEE
also  shall  report the actual royalties paid if such amount is greater than the
royalties  payable  in  order  to  maintain  exclusivity.

Section  7.     Payments  provided for in this Agreement shall, when delinquent,
-----------
be  subject to a late payment charge calculated at an annual rate of 3% over the
prime  rate  or  successive  prime rates in effect in New York, New York, U.S.A.
during the delinquency. However, if the rate of such late payment charge exceeds
the maximum permitted by law, such charge shall be reduced to such maximum rate.

                                    ARTICLE V
                              RIGHT TO SUBLICENSEE

Section  1.     LICENSEE's  right  to  grant  sublicenses  under  this  License
-----------
Agreement  shall  be  subject  to  the  following  prerequisites:

a.     LICENSEE  shall  have satisfied and continues to satisfy the requirements
       set forth in Section 2 of Article II to  maintain  an  exclusive  license
       under this Agreement.

b.     LICENSEE  shall  have  notified  LICENSOR of the identity of the proposed
sublicensee  and  received LICENSOR's written approval, which approval shall not
be  unreasonably  withheld.

Section 2.     Any sublicense granted by LICENSEE shall be of a scope no greater
----------
than  the  non-exclusive  license  granted  under  Section 1 of this Article II.

Section  3.     LICENSEE shall not have the right to grant sublicenses under the
-----------
LICENSED  TRADEMARK.

                                  Page 4 of 11
<PAGE>
Section 4.     LICENSEE shall not have the right to grant to any sublicensee the
----------
further  right  to  grant  any  sublicenses.

Section  5.     LICENSEE  shall  include  a  provision  in  each sublicense that
-----------
termination  of  the  License  Agreement  shall  terminate  the  sublicense.

Section  6.     LICENSEE  shall  include  a  provision  in  each  sublicense
-----------
substantially  identical  to  Article  VII  hereof, but giving both LICENSEE and
LICENSOR  the  right  audit.  LICENSEE  shall  provide to LICENSEE a copy of the
results  of  any  audit  conducted  by  LICENSOR.

                                   ARTICLE VI
                                   TRADEMARKS

Section  1.     LICENSOR  hereby  grants  to  LICENSEE  for  the  term  of  this
-----------
Agreement,  a  non-exclusive  license  to  affix or have affixed to the LICENSED
TRADEMARK  to  LICENSED  PRODUCTS  manufactured  for  sale or for use worldwide,
provided,  however,  that should LICENSEE intend to affix the LICENSED TRADEMARK
to  the LICENSED PRODUCTS in any location or in any manner other than as already
approved  by  LICENSOR, LICENSEE shall submit an example of such use to LICENSOR
for  LICENSOR's  approval,  which  approval  shall not be unreasonably withheld.

Section  2.     The  benefit of this Agreement shall be personal to LICENSEE who
-----------
shall  not,  without  the prior written consent of LICENSOR, which consent shall
not be unreasonably withheld, assign the same or any part with any of its rights
of  obligations  hereunder.  No  rights  are granted hereby to LICENSEE to grant
franchises  or  sublicenses  with  respect  to  the  LICENSED  TRADEMARK.

Section  3.     LICENSEE  shall submit to LICENSOR for prior approval samples of
-----------
all  advertising  or promotional material, packaging, or such other materials on
which  the  LICENSED TRADEMARK appear, or are intended to be used in relation to
the  LICESED  PRODUCTS, and LICENSEE agrees to make any requested changes to the
satisfaction  of  LICENSOR  on  such  packaging,  advertisements,  and any other
materials  bearing  the LICENSED TRADEMARK. Once such approval has been given or
waived  by  LICENSOR,  further  approval  of the same subject matter need not be
obtained  for future or repeated use, except upon the request of LICENSOR in the
event  LICENSOR adopts a material change in the any of the LICENSED TRADEMARK as
used  in  its  business,  but  all  such  material  shall be consistent with the
maintenance  of  the  excellent  reputation  of  LICENSOR.

Section  4.     LICENSOR  represents  that  it  is  the  exclusive  owner of the
-----------
LICENSED  TRADEMARK.  All  use  of  the  LICENSED  TRADEMARK, or any of them, by
LICENSEE  shall  be  for the benefit of and on behalf of LICENSOR, no rights are
assigned  with respect to the LICENSED TRADEMARK, or any of them, except for the
right  to  use  the  LICENSED  TRADEMARK  pursuant to the Agreement; and neither
LICENSEE  not  its employees shall be a party to any application to register the
LICENSED  TRADEMARK,  or  any  of them, or any translation or imitation thereof,
LICENSEE  shall  not  knowingly  commit,  cause,  or  be  a  party  to  any  act
inconsistent with the preservation of the rights LICENSOR in and to the LICENSED
TRADEMARK.

Section  5.     At the request of LICENSOR at LICENSOR's expense, LICENSEE shall
-----------
(a) furnish proof of use of the LICENSED TRADEMARK in any country in which it is
used  by  LICENSEE, and (b) execute any papers or documents necessary to protect
the  rights  of  LICENSOR  and  such  documents as may be reasonably required to
support  such  activity.  LICENSOR  shall  bear  the cost of any registration or
renewal  of  its  proprietary  rights in the LICENSED TRADEMARK, or any of them.

                                  Page 5 of 11
<PAGE>
Section  6.     LICENSEE  shall affix any notices, such as patent numbers, etc.,
-----------
as  may be reasonably required by LICENSOR to any LICENSED PRODUCTS manufactured
under  this  Agreement.  Such  notices  shall be affixed at a reasonably visible
location  in  the manner required by LICENSOR along with any other notices which
may be required by the local law in which the LICENSED PRODUCTS are manufactured
or  sold.

Section  7.     LICENSEE  shall  advise LICENSOR promptly upon becoming aware of
-----------
activity  by any unlicensed third party which constitutes infringement of any of
the LICENSED TRADEMARK licensed hereunder. LICENSOR reserves the exclusive right
to  decide  whether  to  institute a lawsuit and to assume full control over the
proceedings  thereof.

Section  8.     The quality of all LICENSED PRODUCTS produced and sold under any
-----------
of the LICENSED TRADEMARK, shall be reasonably maintained by the LISENSEE to the
satisfaction of LICENSOR. LICENSEE will not use any of the LICENSED TRADEMARK on
any  other product until it has received the approval of such use from LICENSOR,
which  approval  shall  not  be  unreasonably  withheld.

Section  9.     Upon  request  of  LICENSOR and with reasonable notice, LICENSEE
-----------
shall  provide, during the initial approval process and at subsequent intervals,
the  opportunity  for a representative of LICENSOR to conduct inspections of the
manufacturing  and  storage  operations of LICENSEE during normal business hours
with  respect  to  any LICENSED PRODUCTS, for the purposed of verifying that the
nature  and  quality  thereof  and  the  use  of  the  LICENSED TRADEMARK are in
compliance  with the requirements of this Agreement. At the request of LICENSOR,
LICENSEE  will  supply  for  inspection  of  LICENSOR,  or  its  authorized
representative,  regular  production  samples  of  each model of product type of
LICENSED  PRODUCTS  (upon  which any of the LICENSED TRADEMARK is used) or other
evidence  showing the quality of the products provided by LICENSEE. In the event
the nature or quality of the LICENSED PRODUCTS or the use of any of the LICENSED
TRADEMARK  is  not in compliance with the requirements of this Agreement, and if
after  reasonable  notice to LICENSEE of at least 60 days, specifying the nature
of  the  deficiency  and  setting  forth LICENSOR's recommendations as to how to
remedy  such  deficiency,  the deficiency has not been corrected so as to comply
with  the  requirements of this Agreement, LICENSOR upon thirty (30) days notice
may  at its sole discretion suspend the license to use the LICENSED TRADEMARK in
connection  with the LICENSED PRODUCTS in question until the deficiency has been
corrected.

Section  10.     LICENSEE shall indemnify and hold LICENSOR harmless against all
------------
claims,  suits,  costs, damages and judgements incurred, claimed or sustained by
third  parties,  whether  for  personal  injury or otherwise, arising out of the
manufacture or sale of products or services under any of the LICENSED TRADEMARK.

                                   ARTICLE VII
                                     RECORDS

Section  1.     LICENSEE  will keep true records of account, including copies of
-----------
invoices and other records, in sufficient detail to enable the royalties payable
hereunder to be determined, and agrees to permit such invoices and records to be
audited at any reasonable time during business hours by an independent certified
public  accountant  selected  by  LICENSOR  (which  shall  be  a  major national
accounting  firm)  to  the  extent  necessary  to verify the royalty reports and
payments herein provided for; provided, however, that said independent certified
public  accountant  shall  report no details of his audit unless the audit shows
the reports to have been inaccurate. If such audit shows additional royalties to
be due, LICENSEE shall within thirty (30) days from the date of the audit report
either  pay the additional amount to LICENSOR or object to such audit report, in
which event the details of the audit shall be made available to both parties. If
the  additional  royalties due for the period of the audit are greater than five
percent  (5%)  of  the  royalties  reported  and  paid,  LICENSEE  shall  pay

                                  Page 6 of 11
<PAGE>
the  cost of the audit. If such audit report shows that excessive royalties have
been  paid,  LICENSOR  and  LICENSEE  shall,  prior  to crediting such excess to
further  royalties,  be  entitled  to review such audit details, unless LICENSEE
shall  waive  the  right  to such credit. Any such information pertaining to the
audit  shall  be  treated  as  confidential  information.

                                  ARTICLE VIII
                          INFRINGMENT BY THIRD PARTIES

Section  1.     In  the  event  either party determines that any of the LICENSED
-----------
PATENTS  is  infringed  by  a  product within the scope of LICENSED PRODUCTS, as
defined  herein,  such  party shall promptly notify the other party, in writing,
setting  forth  the  basis  for  its  belief  of such infringement. LICENSOR and
LICENSEE  shall  meet  and  conger  to  determine  action  to  be  taken.

Section  2.     LICENSOR  shall have the right, but not the obligation to pursue
-----------
such  infringement,  including  the  filing  of  an  infringement  action,  at
LICENSORS's  sole  expense.

Section  3.     In  the  event  LICENSOR,  at  any  point  in  pursuing  such
-----------
infringement, elects not pursue the infringement any further, LICENSOR may grant
to  LICENSEE  the right continue pursuit of such matter, including the filing of
an  infringement  action,  at  LICENSEE's  sole  expense,  provided

a.     LICENSEE  has  complied  with  all  of its obligation under the Agreement
b.     LICENSEE has maintained exclusivity as provided in Article II, Section 2,
       and
c.     LICENSEE  has  complied with any other reasonable requirements imposed by
       LICENSOR  as  a  condition  for  such  action.

Section  4.     In the event litigation is commenced by either party, such party
-----------
shall  bear  the  burden  of all expenses of such litigation, including, without
limitation,  attorneys fees and court costs. The party bringing the action shall
timely provide to the other party, at its expense, complies of all pleadings and
other  papers  filed  or  received  in connection with the suit. The other party
shall  have  the right to participate in any such litigation tough its owl legal
counsel,  at  its  own  sole  expense.

Section  5.     Any  settlement  of such litigation shall require the consent of
-----------
both  parties,  which  consent  shall  not  be  unreasonably  withheld, From the
proceeds of any settlement or final conclusion of any litigation, any amounts so
recovered  shall  be  applied  first  to  the  reimbursement  of  the litigation
expenses,  including  attorneys  fees,  of  the party bringing such suit. In the
event  the  proceeds  are  insufficient  for  such  reimbursement,  the
non-reimbursement of any unpaid litigation expenses shall be borne by such party
and no credits shall be allowed in any event against royalties due hereunder. In
the  event the proceeds are in excess of the reimbursement, any remaining amount
shall  be  shared between the parties, two-third (2/3)to the party bringing suit
and  one  third  (1/3)  to  the  other  party.

                                   ARTICLE IX
                                   TERMINATION

Section  1.     LICENSEE  acknowledges  that  this  License  Agreement  and  the
-----------
obligations  herein  undertaken are predicated upon LICENSOR's trade secrets and
proprietary  information  in  the KEEPERED MEDIA TECHNOLOGY, as well as KEEPERED
MEDIA PATENTS and KEEPERED MEDIA PATENTS APPLICATIONS. Nothing in this Agreement
is intended to or shall be construed to require LICENSEE to take a license under
any  KEEPERED  MEDIA  PATENTS  or  KEEPERED  MEDIA  PATENT APPLICATION listed in
SCHEDULE  A, and any KEEPERED MEDIA PATENTS or KEEPERED MEDIA PATENT APPLICATION
may  be  deleted  from  such SCHEDULE upon thirty (30) days written notice prior
thereto,  thereby  relinquishing  the license thereunder. If, in accordance with
the  provisions  of  this  Section,  LICENSEE acts to delete all of the KEEPERED
MEDIA  PATENTS  and  KEEPERED  MEDIA  PATENT  APPLICATIONS

                                  Page 7 of 11
<PAGE>
from  SCHEDULE  A,  then  this  Agreement shall terminate automatically upon the
effective  date  of  such  deletion.

Section  2.     LICESEE  shall  not  withhold any royalty payments because of an
-----------
alleged invalidity of any KEEPERED MEDIA PATENT, except as provided hereafter in
this  section  with  respect  to  KEEPERED  MEDIA  PATENTS of the United States.
Royalty  payments  shall  not  be  withheld  by  LICENSEE  because of an alleged
invalidity of a KEEPERED MEDIA PATENT of the United States unless LICENSEE gives
LICENSOR thirty (30) days prior written notice of its intention and the basis of
the  alleged  invalidity.  If LICENSEE withholds royalties because of an alleged
invalidity  of  a KEEPERED MEDIA PATENT if the United States, or gives notice of
its  intention  to  do so, or challenges the validity of any such KEEPERED MEDIA
PATENT, LICENSOR shall have the right to unilaterally delete such KEEPERED MEDIA
PATENT  from  SCHEDULE  A  of  this  Agreement  thereby  terminating all license
privileges  to  LICENSEE  thereunder,  except  as  to  this  Agreement  thereby
terminating  all  license  privileges  to  LICENSEE thereunder, except as to any
LICENSED  PRODUCT  in  respect  of  which  a royalty had previously been paid to
LICENSOR  pursuant to this Agreement. LICENSOR may exercise such right to delete
by  notice to LICENSEE at any time after the right to delete such KEEPERED MEDIA
PATENT  arises.

Section  3.     If LICENSEE shall fail to render reports or make any payments as
-----------
and  when  due  hereunder  or shall otherwise be in default of any obligation of
this  Agreement, LICENSOR shall have the right to give written notice thereof to
LICENSEE, and, if within sixty (60) days after the date of such notice, LICENSEE
shall  not  have cured such default, the LICENSOR may, at its option, cause this
Agreement  to  terminate  forthwith  by  giving  written notice to the effect to
LICENSEE.

Section  4     To  the extent permitted by law, LICENSOR shall have the right to
----------
terminate  this  Agreement  at  any  time  upon or after filing by LICENSEE of a
petition in bankruptcy or insolvency, or upon or after the filing by LICENSEE of
any  petition or answer seeking reorganization, readjustment or rearrangement of
the  business of LICENSEE under any law or any government regulation relating to
bankruptcy  or  insolvency,  or  upon or after the appointment of a receiver for
all,  or  substantially  all,  of the property of LICENSEE, or upon or after the
making  by LICENSEE of any assignment or attempted assignment for the benefit or
creditors,  or  upon or after the institution by LICENSEE of any proceedings for
the  liquidation  or  winding  up of its business, or for the termination of its
corporate  charter;  and  upon  the exercise of such right, this Agreement shall
terminate  fifteen  (15)  days after notice in writing, to that effect, has been
given  by  LICENSOR  to  LICENSEE.

Section 5.     No failure or delay on the part of LICENSOR to exercise its right
----------
of  termination  hereunder  for  any  one or more defaults shall be construed to
prejudice  its  right  of  termination  for  such,  or  any other, or subsequent
default.

Section  6.     Any  termination as provided herein shall not in any way operate
-----------
to limit any of LICENSOR's rights of remedies, either at law or in equity, or to
relieve  LICENSEE  of  any  obligation,  accrued  prior  to  such  termination.

                                    ARTICLE X
                                     NOTICES

All notices and demands which shall or may be given or required pursuant to this
Agreement  shall be in writing and effective upon receipt. Any notice under this
Agreement  shall be addressed to the party to whom such notice is to be given as
follows:

                                  Page 8 of 11
<PAGE>
LICENSOR:
---------
Ampex  Corporation
500  Broadway,  M.S.  1101
Redwood  City,  CA  94063-3199

Attn:  General  Counsel

LICENSEE:
---------
UltraCard,  Inc.
1550  S.  Bascom  Ave.
Campbell,  CA  95008-0656

Attn:  President

                                   ARTICLE XI
                             SUCCESSORS AND ASSIGNS

Section  1.     Neither  this Agreement nor any of the rights and other benefits
-----------
established by it shall be directly or indirectly assigned, transferred, divided
or  shared  by LICENSEE to or with any person, association, corporation or other
legal  entity  whatsoever,  without prior written consent of LICENSOR, except to
successors  by  merger,  acquisition,  reorganization or consolidation of, or to
purchasers  of,  the  entire  business  relation  to  the subject matter of this
Agreement and associated goodwill of LICENSEE, and except as provided in Section
2  of  this  ARTICLE.

Section  2.     LICENSEE  may,  by  thirty (30) days written notice to LICENSOR,
-----------
extend  the rights, benefits and obligations of this Agreement to any SUBSIDIARY
of  LICENSEE,  but only for so long as it remains a SUBSIDIARY of LICENSEE. Each
notice  shall  state  the  name  and address of such SUBSIDIARY. Thereupon, this
Agreement shall be binding upon and inure to the benefit of said SUBSIDIARY, but
not its SUBSIDIARIES, successors, or assigns. In the event of such extensions by
LICENSEE  to  a  SUBSIDIARY,  LICENSEE  shall  remain  primarily  liable for all
obligations  of  such  SUBSIDIARY  under  this  Agreement.

Section 3.     This Agreement may be assigned by LICENSOR and shall inure to the
----------
benefit  of  such assigns and any successors of LICENSOR. LICENSOR shall provide
notice  to  LICENSEE  of  any  such  assignment.

                                   ARTICLE XII
                            MISCELLANEOUS PROVISIONS

Section  1.     It  is  the  intention of the parties hereto that this Agreement
-----------
shall  be  construed, interpreted and applied in accordance with the laws of the
State  of  California,  United  States  of  America.

Section 2.     This Agreement sets forth the only agreement and understanding of
----------
the  parties  on  the subject of MAGNETIC CARDS and MAGNETIC CARD RECORDERS with
the  exception of the Confidentiality Agreement dated as of August 27, 1999, and
except  for  that  agreement  which shall remain in force in accordance with its
terms,  merger all prior discussions between them, terminated and supersedes any
prior  negotiations,  memoranda  or  agreements,  whether  oral  or written, and
neither of the parties shall be bound by any conditions, definitions, warranties
or  representations  other than expressly provided in this Agreement. Or as duly
set  forth on or subsequent to the date hereof in writing and signed by a proper
and  duly  authorized  officer  of  the  party  to  be  bound  thereby.

                                  Page 9 of 11
<PAGE>
Section  3.     This  Agreement has been prepared in the English language. It is
-----------
understood  that  the  English  text  of  this  Agreement  shall be the official
governing  version of the Agreement. Each party will receive one English copy of
this  Agreement  executed  by  all  other  parties.

Section  4.      Nothing  contained  in  this  Agreement  shall be construed as:
-----------

(a)     conferring  an  obligation  upon either LICENSOR or LICENSEE to bring or
        prosecute actions or suits against  third parties  for  infringement; or
(b)     an  obligation  by  either party to furnish any technical information or
        know-how  to  the  other  party.

Section 5.     It is understood and agreed that no representation us made and no
----------
warranty  is  given by LICENSOR that LICENSED PRODUCTS manufactured, used, sold,
leased  or  otherwise  disposed of by LICENSEE under the terms of this Agreement
are  free  of  claims  of  infringement  of  the patent rights of third parties.

Section 6.     In the event LICENSOR shall hereafter grant any license under the
----------
KEEPERED  MEDIA PATENTS and KEEPERED MEDIA TECHNOLOGY for monetary consideration
including  a  royalty,  at  a  rate  more  favorable  than that provided herein,
LICENSOR shall notify LICENSEE thereof and effective upon the date of such other
license  and  for  as long as such more favorable royalty rate is in effect, the
royalty  rate  applicable  to  the  license  granted to LICENSEE herein shall be
reduced  to  the  royalty  rate  specified  in  such  other license, but only if
LICENSEE  accepts  any  less  favorable  monetary  and  other  terms that may be
included  in  the  agreement  under  which  such  other license is granted. This
Section  shall  not  apply  in  cases  where  LICENSOR receives in lieu of or in
addition  to  a  cash royalty, a grant of patent rights, a royalty-free or other
license,  or  other  considerations  than  that  provided  in  this  Agreement.

Section  7.     If any of the claims of a KEEPERED MEDIA PATENT shall be held to
-----------
be invalid or limited as to scope by a court of last resort, or by a lower court
of  competent  jurisdiction  from  whose decree no appeal is taken or certiorari
granted,  within  the  period allowed therefor, the construction placed upon the
such  KEEPERED  MEDIA  PATENT by the courts shall be followed from and after the
date  of  entry  of  the decree of such court, and royalties shall thereafter be
payable  by  LICENSEE  only  in accordance with such construction until the same
shall  be modified or reversed by a subsequent court decree, and with respect to
claims  which  are  by  any  such  decree  held to be invalid, LICENSEE shall be
relieved  of  its  obligation  to  make reports and to pay royalties on LICENSED
PRODUCTS  sold  under  and  covered only by said claims, until the decision with
respect  to  such  claims  shall  be  modified or reversed by a subsequent court
decree.

Section  8.     Unless  otherwise specifically agreed to in writing by LICENSOR,
-----------
LICENSEE  agrees  not  to use the trade name "AMPEX" or the trademark "AMPEX" in
any  of  their  forms,  in  any manner with respect to LICENSED PRODUCTS. Unless
otherwise  specifically  agreed to in writing by LICENSOR and except as provided
under  Article  VI  of  this  Agreement,  LICENSEE  agrees  not  to  use  any
identification  names,  marks, or symbols with respect to LICENSED PRODUCTS that
in  any  respect  resemble those used on similar products manufactured by or for
LICENSOR.

Section  9.     LICENSEE agrees that it will not export or reexport, directly or
-----------
indirectly,  any  products  made  under KEEPERED MEDIA PATENTS to any country in
violation  of  any  United States export control laws or regulations as the same
may  be  modified  from  time  to  time.

                                  Page 10 of 11
<PAGE>
Section 10.     LICENSOR and LICENSEE agree that neither will willfully disclose
-----------
the  terms  and  conditions  of  this  License  Agreement  except:

a.   With the prior written consent of the other party,  which consent shall not
     be unreasonably withheld, or

b.   By  disclosure to a court or government  body having  jurisdiction  to call
     therefor, or

c.   As may be necessary to establish its rights hereunder.

AMPEX  CORPORATION                               ULTRACARD,  INC.

By:       /s/  XXX                               By:       /s/  XXX
   --------------------------                       ----------------------------

Title:     Vice  President                       Title:     President
      -----------------------                          -------------------------

Date:    November 12, 1999                       Date:     November 12, 1999
     ------------------------                         --------------------------

                                  Page 11 of 11
<PAGE>
                               AMPEX  CORPORATION
                           KEEPERED MEDIA PATENT LIST
                               SCHEDULE A - PART 2

Reference Number  Country       Patent No.        Expiration date
----------------  --------  -------------------  ------------------

3219              U.S.A.                4985795  January 15, 2008
                  JAPAN                 2027179  December 15, 2006
                  KOREA                  103266  December 15, 2006
                  TAIWAN                NI28358  December 31, 2002
3246              U.S.A.                5041922  July 23, 2010
                  AUSTRLA                594998  December 15, 2002
                  CANADA                1322407  September 21, 2010
                  JAPAN                 2704957  December 15, 2006
                  KOREA                   86611  December 15, 2001
                  TAIWAN               NI-28422  January 15, 2003
3261              U.S.A                 5153796  October 6, 2009
                  CANADA                1279726  January 29, 2008
                  JAPAN                 2571805  December 15, 2006
                  KOREA                  115084  December 15, 2006
                  TAIWAN               NI-49682  May 26, 2005
3336              U.S.A.                5189572  February 23, 2010
3386              U.S.A.                5130876  December 8, 2009
                  JAPAN     Application pending
                  KOREA     Application pending
3512              U.S.A.                5039655  July 28, 2009
3849              U.S.A.                5729413  December 20, 2015
                  EURPAT    Application pending
                  JAPAN     Application pending
3856              U.S.A.                5870260  February 9,2017
                  U.S.A.    Application pending
                  EURPAT    Application pending
                  JAPAN     Application pending
                  KOREA     Application pending
3858              U.S.A.                5861220  August 6, 2016
3859              U.S.A.                5843565  October 31, 2016
                  P.C.T.    Application pending
3860              U.S.A.                5830590  June 28, 2016
                  U.S.A.    Application pending
                  EURPAT    Application pending
                  JAPAN     Application pending

                                     Page 1
<PAGE>
                                AMPEX  CORPORATION
                            KEEPERED MEDIA PATENT LIST

                                SCHEDULE A-PART 1

Reference                         Title                        First Filing Date
Number
3219    MAGNETIC TRANSDUCER HAVING A SATURABLE KEEPER AND A         Dec 13, 1985
        RECORDING/REPRODUCING APPARATUS UTILIZING THE
        TRANSDUCER

3246    MAGNETIC RECORDING MEDIUM HAVING A MAGNETICALLY             Dec 13, 1985

3261    METHOD AND APPARATUS FOR MAGNETIC TRANSDUCING               Dec 13, 1985

3336    MAGNETIC CONTROL OF A TRANSDUCER SIGNAL TRANSFER ZONE       Mar 24, 1986
        TO EFFECT TRACKING OF A PATH ALONG A RECORD MEDIUM

3386    SOLID STATE SCANNING TRANSDUCER THAT UTILIZES LOW FLUX      Dec 8, 1989
        DENSITIES

3512    THIN FILM MEMORY DEVICE HAVING SUPERCONDUCTOR KEEPER        Jul 29, 1989
        FOR ELIMINATING MAGNETIC DOMAIN CREEP

3849    TWO-GAP MAGNETIC READ/WRITE HEAD                            Dec 20, 1995

3856    IMPROVED MAGNETIC RECORDING SYSTEM HAVING A                 Dec 20, 1995
        SATURABLE LAYER AND DETECTION USING MR ELEMENT

3858    METHOD AND APPARATUS FOR PROVIDING A MAGNETIC STORAGE       Aug 6, 1996
        AND REPRODUCING MEDIA WITH A KEEPER LAYER HAVING
        LONGITUDINAL ANISOTROPY

3859    PARTICULATE MAGNETIC MEDIUM UTILIZING KEEPER                Oct 31, 1996
        TECHNOLOGY AND METHOD OF MANUFACTURE

3860    MAGNETIC STORAGE AND REPRODUCING SYSTEM WITH A LOW          Jun 28, 1996
        PERMEABILITY KEEPER AND A SELF-BIASED MAGNETORESISTIVE
        REPRODUCE HEAD

                                     Page 1
<PAGE>

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