X0202 4 2007-03-15 0 0001109740 CATUITY INC CTTY 0001393524 Graham Alan Mcstay LOYALTY MAGIC LEVEL 5, 140 BOURKE STR MELBOURNE C3 3000 AUSTRALIA 0 1 0 0 CEO - Loyalty-Magic Common Stock - Restricted 2007-03-15 4 A 0 15000 0 A 15000 D Stock Option 2.9 2007-03-15 4 A 0 10000 0 A 2017-03-15 Common Stock 10000 10000 D One-half of these shares will vest based on achieving the Board approved 2007 budgeted Earnings Before Interest and Taxes (EBIT) for Loyalty-Magic, subject to audit. The other half of these shares will vest based on achieving the Board approved 2008 budgeted Earnings Before Interest and Taxes (EBIT) for Loyalty-Magic, subject to audit. 25% of the 10,000 options will vest on March 15, 2007; 25% on March 15, 2008; 25% on March 15, 2009; the remaining 25% on March 15, 2010. Graham Alan McStay 2007-03-21