EXHIBIT 10.1

                              ATC HEALTHCARE, INC.

                             2000 STOCK OPTION PLAN


                                                                 August 21, 2006


Stephen Savitsky



Re:     Grant of NonQualifying Stock Options
        to Purchase Shares of the Class A
        Common Stock of ATC Healthcare, Inc.

Dear Stephen:

     You and ATC Healthcare,  Inc., a Delaware  corporation (the "Corporation"),
hereby agree as follows:

     1.  Reference.  This is the Stock Option  Agreement  referred to in Section
7(k) of the Corporation's 2000 Stock Option Plan (the "Plan").  The stock option
this Agreement grants is a Non Qualified Stock Option, as set forth in Section 2
below. This Agreement  incorporates all terms,  conditions and provisions of the
Plan.

     2. Stock Option.  The Corporation  hereby grants to the Optionee the option
(the "Stock  Option") to purchase  that number of shares of Class A Common Stock
of the  Corporation,  par value $.01 per  share,  set forth on  Schedule  A. The
Corporation will issue these shares as fully paid and nonassessable  shares upon
the Optionee's exercise of the Stock Option. The Optionee may exercise the Stock
Option in accordance with this Agreement any time prior to the tenth anniversary
of the date of grant of the Stock  Option  evidenced by this  Agreement,  unless
earlier  terminated  according to the terms of this  Agreement.  Schedule A sets
forth the date or dates after which the Optionee may exercise all or part of the
Stock Option, subject to the provisions of the Plan.

     3. Exercise of Stock Option.  The Optionee may exercise the Stock Option in
whole or in part by written notice  delivered to the  Corporation in the form of
Schedule B to this  Agreement.  If  exercisable  Stock Options as to 100 or more
shares are held by an Optionee, then such Stock Options may not be exercised for
fewer than 100 shares at any one time,  and if  exercisable  Stock  Options  for
fewer than 100 shares are held by an Optionee,  then Stock  Options for all such
shares must be exercised at one time.  The Optionee shall enclose with each such
notice  payment  by cash or by valid  check in an amount  equal to the number of
shares  as to  which  his  exercise  is made,  multiplied  by the  option  price
therefore;  provided,  however,  that if the Committee appointed by the Board of
Directors  pursuant  to  Section 2 of the Plan  shall,  in its sole  discretion,
approve,  payment  upon  exercise of the Stock Option in whole or in part may be
made by surrender to the Corporation in due form for transfer of shares of Class
A Common Stock of the Corporation.  In the case of payment in the  Corporation's
Class A Common  Stock,  such stock shall be valued at its Fair Market  Value (as
defined in Section 7 (b) of the Plan) as of the date of surrender of the stock.

     4.  Purchase  Price.  The option price per share shall be that set forth on
Schedule A

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<PAGE>

     5.  No  Rights  in  Option  Stock.  Optionee  shall  have  no  rights  as a
stockholder  in  respect of any shares  subject to the Stock  Option  unless and
until  Optionee has exercised the Stock Option in complete  accordance  with the
terms  hereof,  and shall have no rights  with  respect to shares not  expressly
conferred by this Agreement.

     6. Shares Reserved.  The Corporation  shall at all times during the term of
this  Agreement  reserve  and keep  available  such  number of shares of Class A
Common  Stock  as  will  be  sufficient  to  satisfy  the  requirements  of this
Agreement,  and shall pay all original  issue taxes on the exercise of the Stock
Option, and all other fees and expenses  necessarily incurred by the Corporation
in connection therewith.

     7.  Nonassignability.  The Stock  Option  and this  Agreement  shall not be
encumbered,  disposed of, assigned or transferred in whole or in part, except by
will or by the laws of descent  and  distribution.  Except as  described  in the
Plan,  the Optionee  alone may exercise the Stock Option.  All shares  purchased
pursuant to this Agreement shall be purchased for investment by the Optionee.

     8. Effect Upon  Employment.  Nothing in this Agreement  shall confer on the
Optionee any right to continue in the  employment  of the  Corporation  or shall
interfere in any way with the right of the  Corporation to terminate  Optionee's
employment at any time.

     9.  Successors.  This Agreement  shall be binding upon any successor of the
Corporation.


     In order to indicate your acceptance of the Stock Option on the above terms
and  conditions,  kindly sign the  enclosed  copy of this letter  agreement  and
return it to the Corporation.


                                                ATC HEALTHCARE, INC.




                                                /S/ Daniel M. Pess
                                                ------------------


                                                By:     Daniel M. Pess
                                                        Chief Financial Officer


Accepted and Agreed to:


/s/Stephen Savitsky
-------------------
Stephen Savitsky


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<PAGE>

                                                                      Schedule A


                           Non-Qualifying Stock Option


Date of Grant:    August 21, 2006

Name of Optionee: Stephen Savitsky

Number of Shares as to which the Option is Granted: 400,000

Option Price per Share:    $0.36

Exercisability of Options:

        Number of Shares                Date after which the
        as to which the                 Option is Exercisable
        Optionee May Exercise           (anniversaries refer
        the Option Granted              to the Date of Grant of the
        Hereby                          Stock Option, if applicable)
        ---------------------           ----------------------------

                80,000                  Vest on February 21, 2007

                13,334                  Vest each month on the 21st over the
                                        following 23 months

                13,318                  Vest on the 21st of the 30th month

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<PAGE>

                                                                      Schedule B

                         NOTICE OF ELECTION TO EXERCISE
                         ------------------------------
[
Attention:

Gentlemen:

     I hereby  irrevocably  elect to exercise  the Stock Option held by me under
the 2000 Stock  Option  Plan of ATC  Healthcare,  Inc.  (the  "Corporation")  to
purchase  shares of the Class A Common Stock,  par value $.01 per share,  of the
Corporation at an option price of $ per share.


       Enclosed is a check, payable to the order of the Corporation, in the
       amount of $


       A completed Exercise of Stock Option Payment Remittance Form is attached.

     Please  instruct [         ], Transfer Agent,  to issue ___  certificate(s)
for shares each and, if applicable, a separate certificate for the remaining
____ shares in my name as shown below. The following address is for the records
of the Transfer Agent for mailing stockholder communications:


                                      Name


                              Taxpayer I.D. Number
                     (i.e. Social Security/Insurance Number)


                                Number and Street


                               City State Zip Code


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<PAGE>

Please forward the certificate(s) to me at the following address:


                                Number and Street


                               City State Zip Code

     This election incorporates,  and is subject to, all terms and conditions of
the Plan and my Stock Option Agreement with the Corporation.  The Stock Option I
am exercising is stated to be:

                  [Check one]       (    )  Incentive Stock Option
                                    (    )  Nonqualifying Stock Option

     I am acquiring the foregoing  shares for investment  purposes only, and not
with a view to their sale or distribution.

Dated:


                                            Signature




                                            Print Name


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<PAGE>

                                                                    Schedule B-1


                              ATC HEALTHCARE, INC.

                                      2000
                                STOCK OPTION PLAN

                Exercise of Stock Option Payment Remittance Form


     In fulfillment of the  accompanying  Notice of Election to Exercise,  which
advises  you of my  intention  to  exercise  options to  purchase  shares of ATC
Healthcare,  Inc. Class A Common Stock at an option price of $ per share,  for a
total purchase price of $ , I enclose in full payment of the purchase price:

                  bank check in the amount of . . . . . . $
                  made payable to ATC Healthcare, Inc.



Dated:
      ----------------
                                                                       Signature
(     )  Incentive Stock Option
(     )  Nonqualifying Stock Option

                                                                       Type Name

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