Document:

EXHIBIT 10.25

     STOCK OPTION AGREEMENT made as of the 1st day of May, 2000 between NATIONAL
MEDICAL HEALTH CARD SYSTEMS,  INC., a New York corporation (the "Company"),  and
David Gershen (the "Optionee").

     WHEREAS,  the  Optionee  is an  employee  of the  Company  or a  subsidiary
thereof;

     WHEREAS,  the  Company  desires to provide to the  Optionee  an  additional
incentive to promote the success of the Company;

     NOW,  THEREFORE,  in  consideration  of the  foregoing,  the Company hereby
grants to the Optionee  (the  "Grant")  the right and option to purchase  Common
Shares of the Company under and pursuant to the terms and conditions of the 1999
Stock Option Plan (the "Plan") and upon and subject to the  following  terms and
conditions:

        1. GRANT OF OPTION.

     The  Company  hereby  grants to the  Optionee  the right  and  option  (the
"Option") to purchase up to Thirty-Five  Thousand  (35,000) Common Shares of the
Company (the "Option Shares") during the following periods:

          (a) All or any part of Eleven  Thousand Six Hundred  Seventy  (11,670)
     Common Shares  ("Option  Share  Portion  (a)") may be purchased  during the
     period  commencing May 1, 2001 and  terminating at 5:00 P.M. on May 1, 2005
     (the "Expiration Date"). However, should the Optionee's employment with the
     Company  terminate  after  three (3) months of the date  hereof for reasons
     other  than  those  set forth in  Section  5.2 of that  certain  Employment
     Agreement  dated March 27, 2000  between  the  Company  and  Optionee  (the
     "Employment Agreement"), Option Share Portion (a) will be treated as though
     it were fully vested on the termination date of Optionee's  employment with
     the Company.

          (b) All or any part of Eleven Thousand Six Hundred Sixty-Five (11,665)
     Common Shares  ("Option  Share  Portion  (b)") may be purchased  during the
     period  commencing  on May 1,  2002 and  terminating  at 5:00  P.M.  on the
     Expiration Date. However, should the Optionee's employment with the Company
     terminate  after  three  (3)  months  of  the  second  year  of  Optionee's
     employment  with the  Company  for  reasons  other  than those set forth in
     Section 5.2 of the Employment  Agreement,  Option Share Portion (b) will be
     treated  as  though  it  were  fully  vested  on the  termination  date  of
     Optionee's employment with the Company.

          (c) All or any part of Eleven Thousand Six Hundred Sixty-Five (11,665)
     Common Shares  ("Option  Share  Portion  (c)") may be purchased  during the
     period  commencing  on May 1,  2003 and  terminating  at 5:00  P.M.  on the
     Expiration Date. However, should the Optionee's employment with the Company
     terminate after three (3) months of the third year of Optionee's employment
     with the Company  for reasons  other than those set forth in Section 5.2 of
     the  Employment  Agreement,  Option  Share  Portion  (c) will be treated as
     though  it  were  fully  vested  on  the  termination  date  of  Optionee's
     employment with the Company.

          (d)  Notwithstanding  anything to the contrary contained in Section 12
     (a) of the Plan,  the Option must be exercised in whole (or in part, if not
     fully  vested),  on  a  date  one  year  after  termination  of  Optionee's
     employment with the Company.  In addition,  upon  termination of Optionee's
     employment  with the Company for  reasons  other than those  referred to in
     Section 5.2 of the Employment Agreement

        2. NATURE OF OPTION.

     Such  Options to  purchase  the  Option  Shares  are  intended  to meet the
requirements  of Section 422 of the Internal  Revenue Code of 1986,  as amended,
relating to "incentive stock options".

        3. EXERCISE  PRICE.

     The exercise  price of each of the Option  Shares shall be Five Dollars and
no cents ($5.00) (the "Option Price").  The Company shall pay all original issue
or transfer taxes on the exercise of the Option.

        4. EXERCISE  OF  OPTIONS.

     The Option shall be  exercised in  accordance  with the  provisions  of the
Plan.  As soon as  practicable  after the receipt of notice of exercise  (in the
form  annexed  hereto as Exhibit A) and payment of the Option  Price as provided
for in the Plan, the Company shall tender to the Optionee certificates issued in
the Optionee's name evidencing the number of Option Shares covered thereby.

        5. TRANSFERABILITY.

     The  Option  shall not be  transferable  other  than by will or the laws of
descent and  distribution  and,  during the  Optionee's  lifetime,  shall not be
exercisable by any person other than the Optionee.

         6. INCORPORATION  BY REFERENCE.

     The terms and conditions of the Plan are hereby  incorporated  by reference
and made a part hereof.

        7. NOTICES.

     Any  notice  or  other   communication  given  hereunder  shall  be  deemed
sufficient  if in writing and hand  delivered or sent by registered or certified
mail, return receipt requested,  addressed to the Company, 26 Harbor Park Drive,
Port Washington, New York 11050, Attention: Secretary and to the Optionee at the
address indicated below.  Notices shall be deemed to have been given on the date
of hand delivery or mailing, except notices of change of address, which shall be
deemed to have been given when received.

        8. BINDING  EFFECT.

     This  Agreement  shall be  binding  upon and  inure to the  benefit  of the
parties  hereto  and their  respective  legal  representatives,  successors  and
assigns.

        9. ENTIRE   AGREEMENT.

     This Agreement,  together with the Plan, contains the entire  understanding
of the parties  hereto  with  respect to the  subject  matter  hereof and may be
modified only by an instrument executed by the party sought to be charged.

<PAGE>

        IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
day and year first above written.

                                                  NATIONAL MEDICAL HEALTH CARD
                                                    SYSTEMS, INC.

                                                  By:/s/Bert E. Brodsky
                                                  Bert E. Brodsky

                                                  /s/David Gershen
                                                  Signature of Optionee

                                                  David Gershen
                                                  Name of Optionee

                                                  2 Pal Court,
                                                  Plainview, NY 11803
                                                  Address of Optionee

<PAGE>
                                   EXHIBIT A

                   NATIONAL MEDICAL HEALTH CARD SYSTEMS, INC.

                              OPTION EXERCISE FORM

     The  undersigned  hereby  irrevocably  elects to exercise the within Option
dated  ____________,  2000 to the extent of purchasing Common Shares of National
Medical Health Card Systems, Inc. The undersigned hereby makes a payment of $ in
payment therefor.

                                                  David Gershen
                                                  Name of Optionee

                                                  Signature of Optionee
                                                  Address of Holder

                                                  DateEXHIBIT 10.26

                   NATIONAL MEDICAL HEALTH CARD SYSTEMS, INC.

                              EMPLOYMENT AGREEMENT

     EMPLOYMENT  AGREEMENT,  dated as of May 3, 2000,  by and  between  National
Medical  Health Card Systems,  Inc., a New York  corporation  with an office and
place of business at 26 Harbor Park Drive, Port Washington,  New York 11050 (the
"Company"),  and James Bigl, who resides at Pilots Point Marina,  Westbrook,  CT
06498. (the "Employee").

                                    RECITALS:

     A. The Company is engaged in providing  comprehensive  prescription benefit
management services to the general commercial market.

     B. The Company  wishes to assure itself of the services of the Employee for
the period provided in this  Agreement,  and the Employee is willing to serve in
the employ of the Company on a full-time  basis,  for said period,  and upon the
other terms and conditions hereinafter provided.

                                   AGREEMENT:

     1. TERM OF EMPLOYMENT.

     1.1 The  Company  hereby  employs the  Employee,  and the  Employee  hereby
accepts  employment  with the  Company,  all in  accordance  with the  terms and
conditions  hereof,  for an  initial  term of one  (1)  year  commencing  on the
Commencement  Date (as defined in Subsection 1.2 hereof) and ending  (subject to
the provisions of Section 5 hereof) on the date immediately  preceding the first
anniversary of the Commencement Date (the "Initial Term"). The employment of the
Employee  shall  continue  hereunder  after the Initial  Term to commence on the
first  anniversary  of the  Commencement  Date (such  period  being  hereinafter
referred to as the "Extended  Term"),  unless the Company or the Employee  shall
give  notice to the other of the  election  of the  Company or the  Employee  to
terminate  the  employment  of the Employee at the end of the Initial Term or at
any  time  during  the  Extended  Term as the case may be.  (The  period  of the
Company's  employment of the Employee  shall be  hereinafter  referred to as the
"Employment Period".)

     1.2 As used in this Agreement, the term "Commencement Date" shall mean June
12, 2000.

     2. DUTIES.

     2.1 During the  Employment  Period,  the Employee  shall be employed by the
Company and shall serve as its President and Chief Operating  Officer.  Employee
shall report on a regular  basis  directly to the  Company's  Chairman and Chief
Executive  Officer and shall perform such duties consistent with his position as
of such nature as are usually  associated  with such  office,  and the  Employee
shall and have such powers relating to the Company as shall from time to time be
assigned to him by the Board of Directors of the Company.

     2.2  During the  Employment  Period,  the  Employee  shall  devote his full
business time, best efforts, energies, attention and ability to the business and
interests of the Company.  Company acknowledges that with management's approval,
such  approval not to be  unreasonably  withheld,  Employee may sit on boards of
non-competing  companies  so long as  Employee's  involvement  does not  prevent
Employee from meeting obligations to Company.

     3. COMPENSATION.

     3.1 As full compensation for his services and undertakings pursuant to this
Agreement,  the Employee shall receive a salary at the rate of  $188,000.00  per
year,  subject to adjustment as hereafter  provided,  payable in twenty-six (26)
equal  installments  or other more frequent  installments in accordance with the
regular pay policies of the Company.  Employee's compensation shall be increased
by an amount to be determined by the parties each year of the Extended  Term. In
addition,  the  Employee  shall be entitled to receive a bonus of $25,000 at the
start of the Initial Term. Employee shall also be entitled to participate in the
bonus pool allocated for senior  executives,  of which Employee will be entitled
to receive an amount equal to five (5%) percent of bonus pool which presently is
anticipated to be fifteen (15%) percent of adjusted increase earnings from prior
year.

     3.2 During the  Employment  Period,  the Employee shall also be entitled to
(a) four (4) weeks paid  vacation  annually,  (b)  participate  in group medical
insurance and other  benefits or programs of the Company  hereafter  established
and made available by the Company to its employees,  and (c)  officers/directors
insurance, the cost of which will be borne by the Company. The Company agrees to
waive, where applicable and permissible  pursuant to the terms of any such plan,
any enrollment waiting period in the Company's group medical insurance plans and
retirement plans.

     3.3 The Company shall deduct from the Employee's salary, bonus or incentive
compensation  any federal,  state or city  withholding  taxes,  social  security
contributions  and any other  amounts  which may be  required  to be deducted or
withheld by the Company  pursuant to any federal,  state or city laws,  rules or
regulations.  3.4 The Company shall  reimburse the Employee,  or cause him to be
reimbursed,  for  nonaccountable  expenses incurred by him in the performance of
his duties  hereunder or in furtherance of the business  and/or  interest of the
Company, in an amount of $12,000.00.

     4. STOCK OPTIONS.

     Simultaneously  upon the execution of this Agreement,  the Employee will be
granted by the Company an option to purchase  100,000  shares of Common Stock of
the  Company,  such  options to vest in  accordance  with the terms of the Stock
Option Agreement attached hereto and made part of this Agreement as Exhibit A.

     5. TERMINATION.

     5.1 If the Employee dies or becomes disabled during the Employment  Period,
his salary and all other rights under this Agreement  shall terminate at the end
of the month during which death or disability  occurs.  For the purposes of this
Agreement,  the Employee  shall be deemed to be "disabled" if he has been unable
to  perform  his  duties  for  six  consecutive  months  or nine  months  in any
twelve-month  period,  all as determined in good faith by the Board of Directors
of the Company.  Notwithstanding  the  definition  of disabled  contained in the
preceding  sentence,  in the event that the  Employee  is  receiving  disability
insurance  benefits  during any period prior to termination of this Agreement as
provided in this  Section  5.1,  the  Employee's  salary  shall be reduced by an
amount equal to such disability insurance benefits during such period.

     5.2 The Company,  in addition to any other remedies available to it, either
at law or in equity,  may terminate this Agreement without any further liability
or obligation to the Employee  from and after the date of such  termination,  by
delivering  to  Employee  written  notice  upon  the  occurrence  of  any of the
following events:

     (a)  commission  by the  Employee  of a material  breach of this  Agreement
which, if curable, remains uncured for fifteen (15) days after Employee receives
written notice thereof, or

     (b) indictment of the Employee for a felony or other serious crime.

     5.3 In the event that the Company  terminates  this  Agreement for a reason
other than those set forth in Section  5.2 hereof or should  Employee  terminate
the Agreement for "Good Reason" as hereinafter  defined (but not in the event of
termination by Employee without Good Reason), the Company shall pay the Employee
an amount equal to the Employee's then current annual salary and  nonaccountable
expenses and shall continue group medical  insurance and similar health benefits
(the  "Severance  Pay")  for one  year  after  termination  of  employment  (the
"Severance Period"). However, such Severance Pay shall immediately be reduced by
the amount of salary received by the Employee  during the Severance  Period upon
Employee's obtaining employment with another employer.  The Company shall assist
Employee in procuring new employment and Employee  agrees to give  consideration
to any and all prospective employers procured by the Company.

     5.4 The  Employee  shall have "Good  Reason" to  terminate  his  employment
hereunder if such termination shall be the result of:

          (a)  a  material  diminution  during  the  Employment  Period  in  the
     Employee's duties, responsibilities, reporting relationship or title as set
     forth in Section 2.1 hereof;

          (b)  a  breach  by  the  Company  of  the  compensation  and  benefits
     provisions set forth in Section 3 hereof; or

          (c) a material breach by the Company of any of the other terms of this
     Agreement.

     6. COVENANT NOT TO DISCLOSE.

     6.1 The  Employee  covenants  and  undertakes  that he will not at any time
during or after the termination of his employment hereunder reveal,  divulge, or
make known to any person,  firm,  corporation,  or other  business  organization
(other than the Company or its  affiliates,  if any), or use for his own account
any  customers'  lists,  trade  secrets,  or  any  secret  or  any  confidential
information ("Confidential  Information") of any kind used by the Company during
his employment by the Company, and made known (whether or not with the knowledge
and permission of the Company,  whether or not developed,  devised, or otherwise
created in whole or in part by the efforts of the Employee, and whether or not a
matter of public knowledge  unless as a result of authorized  disclosure) to the
Employee  by reason of his  employment  by the  Company.  The  Employee  further
covenants and agrees that he shall retain such knowledge and  information  which
he has acquired or shall acquire and develop  during his  employment  respecting
such Confidential  Information in trust for the sole benefit of the Company, its
successors and assigns and upon  termination of his employment with the Company,
return same to the Company.  Employee shall, if asked to by the Company,  sign a
statement acknowledging, among other things, that Employee has returned all such
Confidential Information.

     7. COVENANT NOT TO COMPETE; NON-INTERFERENCE.

     7.1 The Employee covenants and undertakes that during the Employment Period
and for a period of three (3) years  after the  Severance  Period,  he will not,
whether  for his own  account  or for the  account  of any other  person,  firm,
corporation  or  other  business  organization,  interfere  with  the  Company's
relationship with, or endeavor to entice away from the Company any person, firm,
corporation or other business  organization  who or which at any time during the
Employee's  employment  with the Company  was an  employee,  consultant,  agent,
supplier,  customer or active prospect of the Company or in the habit of dealing
with the Company.

     8. COVENANT TO REPORT; PATENT, ETC.

     8.1 The Employee shall promptly communicate and disclose to the Company all
inventions, discoveries,  improvements and new writings, in any form, whatsoever
(hereinafter   "Inventions")  including,   without  limitation,   all  software,
programs,  routines,  techniques,  procedures,  training aides and instructional
manuals  conceived,  developed  or  made by him  during  his  employment  by the
Company, whether solely or jointly with others, and whether or not patentable or
copyrightable,  (A) which relate to any matters or business  carried on or being
developed by the Company,  or (B) which result from or are suggested by any work
done by him in the course of his  employment by the Company.  The Employee shall
also promptly communicate and disclose to the Company all other data obtained by
him  concerning  the  business  or affairs  of the  Company in the course of his
employment by the Company.

     8.2 All written  materials,  records and documents  made by the Employee or
coming into his possession  during the Employment Period concerning the business
or affairs of the Company shall be the sole  property of the Company,  and, upon
the  termination  of the  Employment  Period or upon the  request of the Company
during the Employment  Period, the Employee agrees to render to the Company such
reports of the  activities  undertaken  by the Employee or  conducted  under the
Employee's  direction,  pursuant  hereto  during  the  Employment  Period as the
Company may request.

     8.3 The Employee will assign to the Company all right in the Inventions and
will assist the Company or its designee during and subsequent to his employment,
at the Company's sole expense,  in filing patent and/or  copyright  applications
on, and obtaining for the Company's  benefit patents and/or  copyrights for such
Inventions  in any and all  countries,  and will  assign to the Company all such
patent and/or copyright  applications,  all patents and/or  copyrights which may
issue thereon,  said Inventions to be and remain the sole and exclusive property
of the Company or its designee whether or not patented and/or copyrighted.

     8.4 Any Invention conceived,  developed or made by the Employee and related
to  Employee's   responsibilities  at  Company,  within  one  (1)  year  of  the
termination  of his  employment,  whether  such  termination  of  employment  is
voluntary  or  involuntary,  shall  be  deemed  to have  arisen  out of and been
conceived,  developed  or made by the  Employee  during  his  employment  by the
Company, unless established to have been conceived,  developed or made after the
termination of such employment.

     9. REMEDIES.

     The Employee  acknowledges that the Company will have no adequate remedy at
law if the  Employee  violates  the terms of Section  6, 7 or 8 hereof.  In such
event,  the Company shall have the right, in addition to any other rights it may
have,  to obtain in any court of  competent  jurisdiction  injunctive  relief to
restrain any breach or threatened breach of or otherwise to specifically enforce
any of the covenants of such Sections.

     10. COMPLIANCE WITH OTHER AGREEMENTS.

     10.1  Employee and Company  represent and warrant to the other that each is
under  no  contract,  restriction  or  obligation  which  is  inconsistent  with
execution of this Agreement or the performance of his/its duties hereunder. Each
hereby agrees to indemnify the other for all losses,  damages,  costs,  fees and
expenses including  attorney's fees incurred by the other in connection with any
of the following:

          (a) any breach of the foregoing representations and warranties;

          (b) any lawsuit or other legal  proceeding in which it is claimed that
     the other has breached any trust, confidence or duty of loyalty, etc.;

          (c) any action or matter  relating  to the above  representations  and
     warranties.

     11. WAIVERS.

     A  waiver  by  the  Company  or  the  Employee  of a  breach  of any of the
provisions  of this  Agreement  shall not operate or be construed as a waiver of
any subsequent breach.

     12. BINDING EFFECT; BENEFITS.

     Subject to the provisions of Section 5 hereof this Agreement shall inure to
the  benefit  of,  and shall be  binding  upon,  the  parties  hereto  and their
respective successors, assigns, heirs, and legal representatives,  including any
corporation or other business  organization  with which the Company may merge or
consolidate or to which it may transfer substantially all of its assets. Insofar
as the  Employee  is  concerned,  this  Agreement,  being  personal,  cannot  be
assigned.

     13. NOTICES.

     All notices,  requests, demands and other communications which are required
or may be given under this Agreement  shall be in writing and shall be deemed to
have been duly given or made when delivered in person, by courier,  by facsimile
transmission  (with  proof of  delivery),  or four (4) days  after  dispatch  by
registered or certified mail,  postage paid,  return receipt  requested,  to the
party  to whom  the same is so given  or  made,  to the  address  of such  party
hereinabove set forth.

     14. ENTIRE AGREEMENT; AMENDMENTS; SURVIVAL COVENANTS.

     This  Agreement  contains the entire  Agreement,  and  supersedes all prior
agreements and understandings,  oral or written, between the parties hereto with
respect to the subject matter hereof. This Agreement may not be waived, changed,
amended,  modified or  discharged  orally,  but only by an  agreement in writing
signed by the party against whom any waiver, change, amendment,  modification or
discharge is sought.  The  covenants of the Employee  contained in Sections 6, 7
and 8 (insofar as they relate to the  Employment  Period) of this  Agreement and
the  covenants of the Company  contained in Section  5.3, if  applicable,  shall
survive the termination of the Employment Period.

     15. HEADINGS.

     The headings  contained in this  Agreement are for reference  purposes only
and shall not affect the construction or interpretation of this Agreement.

     16. SEVERABILITY.

     The  invalidity of all or any part of any Section of this  Agreement  shall
not render  invalid the  remainder of this  Agreement  or the  remainder of such
Section.  If any provision of this Agreement is so broad as to be unenforceable,
such provisions shall be interpreted to be only so broad as is enforceable.

     17. COUNTERPARTS.

     This Agreement may be executed in any number of counterparts, each of which
shall,  when  executed,  be deemed to be an original,  but all of which together
shall constitute one and the same instrument.

     18. GOVERNING LAW.

     This  Agreement  shall be governed by and construed in accordance  with the
laws of the State of New York,  without giving effect to principles  relating to
conflict of laws.

     19. INDEMNIFICATION.

     The  Company  shall,  to the  fullest  extent  permitted  by law and by its
Certificate of  Incorporation  and By-laws,  indemnify the Employee and hold him
harmless  for any acts or decisions  made by him in good faith while  performing
his duties pursuant to this Agreement.

<PAGE>

     IN WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of
the day and year first written above.

                                     NATIONAL MEDICAL HEALTH CARD SYSTEMS, INC.

                                     By/s/Bert E. Brodsky
                                          Bert E. Brodsky
                                          Chairman

                                     By:/s/James Bigl
                                           James Bigl

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