Document:

Exhibit 10(m) Reaffirmation of and Amendment to Stock Pledge Agreement, dated
      as of July 28, 2006

    REAFFIRMATION
      OF AND AMENDMENT TO STOCK PLEDGE AGREEMENTS

     

    THIS
      REAFFIRMATION OF AND AMENDMENT TO STOCK PLEDGE AGREEMENTS (this “Agreement”)
      is
      made as of the 28th
      day of
      July, 2006, by 

     

    DCAP
      GROUP, INC., a corporation organized under the laws of the State of Delaware
      (“DCAP”),
      BARRY
      SCOTT AGENCY, INC., a corporation organized under the laws of the State of
      New
      York, BARRY SCOTT COMPANIES, INC., a corporation organized under the laws of
      the
      State of Delaware, and BLAST ACQUISITION CORP., a corporation organized under
      the laws of the State of Delaware (each a “Pledgor”
and
      collectively the “Pledgors”).
      

     

    for
      the
      benefit of MANUFACTURERS AND TRADERS TRUST COMPANY, a New York State Bank,
      in
      its
      capacity as “Agent”
for
      itself and other “Lenders”
under
      the Financing Agreement (as hereinafter defined)
      (the
“Secured
      Party”).

     

    RECITALS

    
       

      A. PAYMENTS
        INC., a corporation organized under the laws the State of New York (“Payments
        Inc.”),
        and
        DCAP GROUP, INC., a corporation organized and existing under the laws of
        the
        State of Delaware (“Parent”),
        of
        which Payments Inc. is a wholly-owned subsidiary, jointly and severally (the
        “Borrower”)
        have
        applied to the Agent and the Lenders for credit facilities consisting of
        a
        revolving credit facility in the maximum principal amount of $20,000,000
        and a
        term line facility in the maximum principal amount of $2,500,000 to be advanced
        pursuant to and in accordance with the terms and conditions of an Amended
        and
        Restated Financing and Security Agreement of even date herewith (as amended,
        modified, restated, substituted, extended and renewed at any time and from
        time
        to time, the “Financing
        Agreement”)
        by and
        among the Borrower, the Agent, Manufacturers and Traders Trust Company, a
        New
        York State Bank organized under the laws of the State of New York, in its
        capacity as a Lender, and such other entities that may become Lenders under
        the
        Financing Agreement from time to time. The Financing Agreement amends and
        restates the “Original
        Financing Agreement”
(as
        that term is defined in the Financing Agreement).

       

    

    B. All
      defined terms used in this Agreement and not defined herein shall have the
      meaning given to such terms in the Financing Agreement.

     

    C. The
      Pledgors are parties to the “Stock
      Pledge Agreements”
(as
      that term is defined in the Original Financing Agreement).

     

    D. The
      Pledgors have requested that the Agent and the Lenders enter into the Financing
      Agreement with the Borrower and make the credit facilities described in the
      Financing Agreement available to the Borrower.

     

    E. The
      Agent
      and the Lenders have required, as a condition to entering into the Financing
      Agreement, that the Pledgors execute this Agreement as additional security
      for
      the payment and performance of the “Obligations”
(as
      that term is defined in the Financing Agreement) and as an affirmation of their
      indebtedness, liabilities and obligations of the Pledgors under, the
“Stock
      Pledge Agreements”
      (as
      that
      term is defined in the Original Financing Agreement).
      References in the Financing Agreement and the other Financing Documents to
      the
      Stock Pledge Agreements means the “Stock Pledge Agreements” (as that term is
      defined in the Original Financing Agreement), as reaffirmed and amended by
      this
      Agreement and as
      amended, restated, modified, substituted, extended and renewed from time to
      time.

     

    
      
        1

      

      
        
        

        
        

      

      
        
        

      

    

     

    NOW,
      THEREFORE, in order to induce the Agent and the Lenders to enter into the
      Financing Agreement: 

     

    1.  Each
      of
      the Pledgors (a) consents to the transactions contemplated by, and agreements
      made by the Borrower under, the Financing Agreement, (b) ratifies, confirms
      and
      reissues the terms, conditions, promises, covenants, grants, assignments,
      security agreements, waivers, agreements, representations, warranties and
      provisions contained in Stock Pledge Agreements, and (c) agrees that the Pledgor
      has no (and alternatively waives each and every) counterclaim, recoupment,
      setoff, reduction or defense with respect to the Pledgor's obligations under
      the
      Stock Pledge Agreements, however arising, in contract, in tort or otherwise
      and
      whenever arising; and (d) alternatively, releases, withdraws, waives and
      discharges any and all claims, rights, demands, damages, causes of action,
      judgments or liabilities which the Pledgor has, had or may have ever had against
      the Agent or the Lenders, including but not limited to any arising in connection
      with the Stock Pledge Agreements or the other Financing Documents. 

     

    2.  Without
      limiting the foregoing, the Pledgors, jointly and severally, acknowledge and
      agree that (a) references in the Stock Pledge Agreements to the term “Financing
      Agreement” mean the Financing Agreement as defined above in this Agreement and
      references in the Stock Pledge Agreements to the “Borrower,” “Obligations” and
      other terms defined in the Financing Agreement shall have the meaning set forth
      in the Financing Agreement), (b) the Obligations include, without limitation,
      the Revolving Credit Facility and the Term Line Facility described in the
      Financing Agreement and the Obligations are covered by the Stock Pledge
      Agreements; (c) in the Stock Pledge Agreements the Pledgors agreed, among other
      things, that the parties to the Financing Documents may from time to time
      modify, amend, change or terminate any provisions of any of the Financing
      Documents without in any way releasing, affecting or in any way impairing the
      obligations and liabilities of the Pledgors under the Stock Pledge Agreements,
      and (d) notwithstanding the Agent’s and the Lenders’ acceptance of this
      Agreement (notice of which acceptance is hereby waived), the parties may
      hereafter modify, amend, change or terminate any provisions of any of the
      Financing Documents without notice to, the further agreement of, or the consent
      of the Pledgors. 

     

    3.  This
      Agreement may be executed in any number of duplicate originals or counterparts,
      each of such duplicate originals or counterparts shall be deemed to be an
      original and taken together shall constitute but one and the same instrument.
      Each Pledgor agrees that the Pledgor’s signature may be delivered by facsimile
      or by pdf. If a Pledgor chooses to deliver the Pledgor’s signature by facsimile
      or by pdf, the Pledgor agrees to provide a counterpart of this Agreement with
      the Pledgor’s inked signature promptly to the Agent.

     

     

    [Signatures
      follow on next page]

     

     

    

     

    
      
        
          2

           

        

        
        

      

      
        
        

        
        

      

      
        
        

        
        

      

    

    Signature
      Page to

    

    REAFFIRMATION
      OF AND AMENDMENT TO STOCK PLEDGE AGREEMENTS

     

    IN
      WITNESS WHEREOF, each Pledgor has executed and delivered this Agreement under
      seal as of the day and year of the Financing Agreement.

     

    
       

      
        	
                 ATTEST:

                 

                ______________________

              	
                 DCAP
                  GROUP, INC.

                 

                By:____________________
                  (SEAL)

                Barry
                  B. Goldstein,

                President

              
	 	 
	
                ATTEST:

                 

                _______________________

              	
                BARRY
                  SCOTT AGENCY, INC. 

                 

                By:_____________________
                  (SEAL)

                Barry
                  B. Goldstein,

                President

              
	 	 
	
                ATTEST:

                 

                _______________________

              	
                BARRY
                  SCOTT COMPANIES, INC.

                 

                By:_____________________
                  (SEAL)

                Barry
                  B. Goldstein,

                President

              
	 	 
	
                ATTEST:

                 

                _______________________

              	
                BLAST
                  ACQUISITION CORP.

                 

                By:_____________________
                  (SEAL)

                Barry
                  B. Goldstein,

                PresidentExhibit 10(r) Letter agreement, dated May 25, 2005, between DCAP Group, Inc.
      and Jack Seibald as representative

    AMENDMENT
      TO SECURED SUBORDINATED

    PROMISSORY
      NOTES AND WARRANTS

    

    DCAP
      GROUP, INC.

    1158
      Broadway

    Hewlett,
      New York 11558

    

    May
      25,
      2005

    

    Jack
      Seibald as representative and

    attorney-in-fact
      for the holders of

    the
      Secured Subordinated Promissory

    Notes
      of
      DCAP Group, Inc., dated

    July
      10,
      2003, in the outstanding aggregate

    principal
      amount of $1,500,000

    1336
      Boxwood Drive West

    Hewlett
      Harbor, NY 11557

    

    Dear
      Jack:

    

    Reference
      is made to the Secured Subordinated Promissory Notes of DCAP Group, Inc. (the
      “Company”), dated July 10, 2003, in the outstanding aggregate principal amount
      of $1,500,000 (collectively, the “Notes”) and held by the persons and entities
      set forth on Schedule A attached hereto (collectively, the
“Noteholders”).

    

    Reference
      is also made to the Warrants issued by the Company, dated July 10, 2003, to
      the
      Noteholders for the purchase of an aggregate of 97,500 shares of Common Stock
      of
      the Company (collectively, the “Warrants”).

    

    All
      capitalized terms used and not defined herein shall have the meanings ascribed
      thereto in the Notes.

    

    The
      parties agree that, in consideration of the extension hereby of the outside
      date
      by which the Warrants may be exercised from 5:00 P.M., Eastern Time, on January
      10, 2006 to 5:00 P.M., Eastern Time, on September 30, 2007, the Maturity Date
      for each of the Notes is hereby extended from January 10, 2006 to September
      30,
      2007. Except as amended hereby, the Notes and the Warrants shall continue in
      full force and effect in accordance with their respective terms.

     

    Very
      truly yours,

    

    DCAP
      GROUP, INC.

    

    By:_________________________     

     
      Barry B. Goldstein, President

     

    Agreed:

     

    __________________________

    Jack
      Seibald, as representative and attorney-

    in-fact
      for the holders of the Secured Subordinated

    Promissory
      Notes of DCAP Group, Inc., dated 

    July
      10,
      2003, in the outstanding aggregate principal amount

    of
      $1,500,000

    
      
        
           

        

         

      

      
         

        
        

      

      
         

        
        

      

    

    SCHEDULE
      A

    

    

    

    
      	
               

               

              Name

            	 	 	
              
              

              Outstanding
                Principal

              Amount
                of Note

            	 	 	
              Number
                of Shares

              of
                Common Stock

              Subject
                to Warrant

            	 
	
              IRA
                FBO Stewart R. Spector, 

              Pershing
                LLC Custodian

            	 	
              
              

              $

            	
              
              

              461,538.49

            	 	 	
              
              

              30,000

            	 
	
               

              IRA
                FBO Jack D. Seibald, 

              Pershing
                LLC Custodian

            	 	
              
              

              $

            	
              
              

              288,461.54

            	 	 	
              
              

              18,750

            	 
	
               

              J.M.J
                Realty Company

            	 	
              $

            	
              230,769.23

            	 	 	
              15,000

            	 
	
               

              Sanders
                Opportunity Fund (Inst.), LP

            	 	
              $

            	
              166,153.85

            	 	 	
              10,800

            	 
	
               

              Take-Two
                Capital LP

            	 	
              $

            	
              115,384.61

            	 	 	
              7,500

            	 
	
               

              Citco
                Trustees (B.V.I.) Limited as Trustee 

              of
                the MS Deferred Income Trust

            	 	
              
              

              $

            	
              
              

              115,384.61

            	 	 	
              7,500

            	 
	
               

              Sanders
                Opportunity Fund, LP

            	 	
              $

            	
              64,615.39

            	 	 	
              4,200

            	 
	
               

              Michael
                Rosen and Catherine Rosen

            	 	
              $

            	
              57,692.31

            	 	 	
              3,750

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