Document:

Exhibit 10(i) Term Line Note, dated July 28, 2006 in principal amount of $1,300,000

    M&T
      BANK

    Manufacturers
      and Traders Trust Company

    TERM
      LINE NOTE

    Maryland

     

    
      
        	
                July
                  __, 2006

              	
                $1,300,000.00

              

      

       

    

    BORROWER: 
Payments,
      Inc., a New York corporation

     and

     DCAP
      Group, Inc., a Delaware corporation

    

     with
      its primary place of business located at: 

     1158
      Broadway 

     Hewlett,
      New York 11557

     Attention: Barry
      B.
      Goldstein

    

    
      	
              BANK:

            	
              MANUFACTURERS
                AND TRADERS TRUST COMPANY, a New York banking corporation with its
                banking
                offices at One M&T Plaza, Buffalo, NY 14203 Attention: Office of the
                General Counsel.

            

    

    

    Promise
      to Pay.
      For
      value received, intending to be legally bound, Borrower promises to pay to
      the
      order of the Bank, on the dates set forth below, the principal sum of One
      Million Three Hundred Thousand Dollars ($1,300,000.00) (the “Principal”) plus
      interest as agreed below and all fees and costs (including without limitation
      attorneys’ fees and disbursements whether for internal or outside counsel) the
      Bank incurs in order to collect any amount due under this Note, to negotiate
      or
      document a workout or restructuring, or to preserve its rights or realize upon
      any guaranty or other security for the payment of this Note
      (“Expenses”).

    

    Financing
      Agreement; Financing Documents. This
      Note
      is the “Term Line Note” described in an Amended and Restated Financing and
      Security Agreement of even date herewith by and between the Borrower and the
      Lender (as amended, modified, restated, substituted, extended and renewed at
      any
      time and from time to time, the “Financing Agreement”). The indebtedness
      evidenced by this Note is included within the meaning of the term “Obligations”
as defined in the Financing Agreement. This Note is one of the “Financing
      Documents” (as that term is defined in the Financing Agreement). All capitalized
      terms used herein and not otherwise defined shall have the meaning set forth
      in
      the Financing Agreement.

    

    Interest.
      The
      unpaid Principal of this Note shall earn interest calculated on the basis of
      a
      360-day year for the actual number of days of each year (365 or 366), from
      and
      including the date the proceeds of this Note are disbursed to, but not
      including, the date all amounts hereunder are paid in full, at a rate per year
      as set forth in Section 2.4.1 (Applicable Interest Rate -Term Line) of the
      Financing Agreement. 

    

    Maximum
      Legal Rate.
      It is
      the intent of the Bank and Borrower that in no event shall interest be payable
      at a rate in excess of the maximum rate permitted by applicable law (the
“Maximum Legal Rate”). Solely to the extent necessary to prevent interest under
      this Note from exceeding the Maximum Legal Rate, Borrower agrees that any amount
      that would be treated as excessive under a final judicial interpretation of
      applicable law shall be deemed to have been a mistake and automatically
      canceled, and, if received by the Bank, shall be refunded to Borrower, without
      interest.

    

    Default
      Rate.
      If an
      Event of Default (defined below) occurs, the interest rate on the unpaid
      Principal shall immediately be automatically increased to the Post-Default
      Rate
      as set forth in the Financing Agreement. 

    

    Repayment
      of Principal and Interest; Late Charge.
      Payments
      shall be made in immediately available United States funds at any banking office
      of the Bank. Interest will continue to accrue until payment is actually
      received. Payments may be applied in any order in the sole discretion of the
      Bank but, prior to default, shall be applied first to past due interest,
      Expenses, late charges and principal, then to current interest, Expenses, late
      charges and principal, and last to remaining principal.

     

    The
      Maturity Date of this Note is the Term Line Maturity Date (as defined in the
      Financing Agreement).

     

    o Borrower
      shall pay the entire Principal on the Maturity Date. In addition, until the
      outstanding Principal is paid in full, payments of all accrued and unpaid
      interest in amounts which will vary will become due and payable on the
      _________________ day of each:

    o
      month
o
      quarter
o
      year
      commencing on _________________________, 20____.

    

    x Borrower
      shall pay the Principal in o
      monthly
x
      quarterly o
      annual
      installments commencing on September 1, 2006 and on the first day of each
o
      month
x
      quarter
o
      year
      thereafter consisting of equal installments each in the amount of $130,000.00
      and ONE (1) FINAL INSTALLMENT on the Maturity Date in an amount equal to the
      outstanding Principal together with all other amounts outstanding hereunder
      including, without limitation, accrued interest, costs and expenses. In
      addition, until the outstanding Principal is paid in full, payments of all
      accrued and unpaid interest in amounts which will vary will become due and
      payable on the first day of each: x
      month
o
      quarter
o
      year
      commencing on August 1, 2006.

    

    o Borrower
      shall pay Principal and interest in __________________ consecutive level
o
      monthly
o
      quarterly o
      annual
      installments consisting of both Principal and interest, amortized over a period
      of________ years, commencing on _________________________, 20____
      and on
      the ________________ day of each  o 
      month
 o 
      quarter
 o 
      year
      thereafter consisting of ______________ equal installments of Principal and
      interest each in the amount of $_______________________and ONE (1) FINAL
      INSTALLMENT on the Maturity Date in an amount equal to the outstanding Principal
      together with all other amounts outstanding hereunder including, without
      limitation, accrued interest, 

    
      
        1

      

      
        
        

      

      
        
        

      

    

    costs
      and
      expenses.
      PLEASE NOTE: The
      Final
      Installment may be higher than expected if any payment is received after its
      due
      date. Furthermore, to the extent that (i) the repayment terms of this Note
      contemplate level installments of Principal and interest during any period
      in
      which the applicable interest rate is a variable rate (“Variable Rate P&I
      Period”), and (ii) during any such Variable Rate P&I Period, the applicable
      interest rate changes in accordance with the terms of this Note, the following
      provisions shall apply: (a) if the amount of accrued interest during any
      installment period shall exceed the amount of Borrower’s scheduled installment
      of Principal and interest for that period, the amount of the installment due
      and
      payable to the Bank for that period shall be adjusted (i.e., increased) to
      equal
      the amount of interest accrued for that period, so as to avoid negative
      amortization; and (b) in all other instances of applicable interest rate
      fluctuation during a Variable Rate P&I Period, Borrower’s scheduled
      installment of Principal and interest will remain the same and, in such
      instances where the applicable interest rate increases, result in a greater
      portion of such installment amount being applied to interest due, leaving less
      available to reduce the Principal balance. Borrower understands that each
      scenario will result in a higher than expected Principal balance due and payable
      to the Bank on the Maturity Date, and agrees that, absent manifest error, the
      Bank’s determination of any amount due in connection herewith shall be
      conclusive.

     

    Prepayment
      Premium.
      During
      the term of this Note, Borrower shall have the option of paying the unpaid
      Principal to the Bank in advance of the Maturity Date, as set forth in Section
      2.2.6 (Optional Prepayments of Term Line) of the Financing Agreement.

    

    Representations,
      Warranties and Covenants. Borrower
      represents, warrants and acknowledges to, and agrees and covenants with, the
      Bank that now and until this Note is paid in full:

    

    a.  Business
      Purpose.
      This
      Note evidences a commercial loan and an extension of credit for a commercial
      purpose within the meaning of the Commercial Law Article of the Annotated Code
      of Maryland, and the loan proceeds shall be used only for a business purpose
      and
      not for any personal, family or household purpose.

    

    b.  Good
      Standing; Authority.
      Borrower
      is an entity (i) duly organized and existing and in good standing under the
      laws
      of the jurisdiction in which it was formed, (ii) duly qualified, in good
      standing and authorized to do business in every jurisdiction in which failure
      to
      be so qualified might have a material adverse effect on its business or assets
      and (iii) has the power and authority to own each of its assets and to use
      them
      as contemplated now or in the future.

    

    c.  Legality.
      The
      execution, issuance, delivery to the Bank and performance by Borrower of this
      Note (i) are in furtherance of Borrower’s purposes and within its power and
      authority; (ii) do not (a) violate any statute, regulation or other law or
      any
      judgment, order or award of any court, agency or other governmental authority
      or
      of any arbitrator or (b) violate Borrower’s certificate of incorporation or
      other governing instrument, constitute a default under any agreement binding
      on
      Borrower, or result in a lien or encumbrance on any assets of Borrower; and
      (iii) have been duly authorized by all necessary corporate or partnership
      action.

    

    d.  Compliance.
      The
      Borrower conducts its business and operations and the ownership of its assets
      in
      compliance with each applicable statute, regulation and other law, including
      without limitation environmental laws. All approvals, including without
      limitation authorizations, permits, consents, franchises, licenses,
      registrations, filings, declarations, reports and notices (the “Approvals”)
      necessary to the conduct of Borrower’s business and for Borrower’s due issuance
      of this Note have been duly obtained and are in full force and effect. The
      Borrower is in compliance with all conditions of each Approval.

    

    e.  Financial
      and Other Information.
      For each
      year until this Note is paid in full, Borrower shall provide to the Bank in
      form
      and number of copies and by accountants satisfactory to the Bank, such financial
      information as required by the Financing Agreement. 

    

    f.  Accounting;
      Tax Returns and Payment of Claims.
      Borrower
      will maintain a system of accounting and reserves in accordance with generally
      accepted accounting principles, has filed and will file each tax return required
      of it and, except as disclosed in an attached schedule, has paid and will pay
      when due each tax, assessment, fee, charge, fine and penalty imposed by any
      taxing authority upon Borrower or any of its assets, income or franchises,
      as
      well as all amounts owed to mechanics, materialmen, landlords, suppliers and
      the
      like in the ordinary course of business.

    

    g.  Title
      to Assets; Insurance.
      Borrower
      has good and marketable title to each of its assets free of security interests
      and mortgages and other liens except as disclosed in its financial statements
      or
      on a schedule attached to this Note or pursuant to the Bank’s prior written
      consent. Borrower will maintain its property in good repair and will maintain
      and on request provide the Bank with evidence of insurance coverage satisfactory
      to the Bank including without limitation fire and hazard, liability, worker’s
      compensation and business interruption insurance and flood hazard insurance
      as
      required.

    

    h.  Judgments
      and Litigation.
      There is
      no pending or threatened claim, audit, investigation, action or other legal
      proceeding or judgment, order or award of any court, agency or other
      governmental authority or arbitrator (each an “Action”) which involves Borrower
      or its assets and might have a material adverse effect upon Borrower or threaten
      the validity of this Note or any related document or transaction. Borrower
      will
      immediately notify the Bank in writing upon acquiring knowledge of any such
      Action.

    

    i.  Notice
      of Change of Address and of Default.
      Borrower
      will immediately notify the Bank in writing (i) of any change in its address
      or
      of the location of any collateral securing this Note, (ii) of the occurrence
      of
      any Event of Default defined below, (iii) of any material change in Borrower’s
      ownership or management and (iv) of any material adverse change in Borrower’s
      ability to repay this Note.

    

    j.  No
      Transfer of Assets.
      Until
      this Note is paid in full, Borrower shall not without the prior written consent
      of the Bank (i) sell or otherwise dispose of substantially all of its assets,
      (ii) acquire substantially all of the assets of another entity, (iii) if it
      is a
      corporation, participate in any merger, consolidation or other absorption or
      (iv) agree to do any of these things.

    

    Events
      of Default.
      The
      following constitute an event of default (“Event of Default”): (i) failure by
      Borrower to make any payment when due (whether at the stated maturity, by
      acceleration or otherwise) of the amounts due under this Note, the Financing
      Agreement or the other Financing 

     

    
      
        2

      

      
        
        

        
        

      

      
        
        

      

    

     

    Documents,
      or any part thereof, or there occurs any event or condition which after notice,
      lapse of time or both will permit such acceleration; (ii) Borrower defaults
      in
      the performance of any covenant or other provision with respect to this Note,
      the Financing Agreement, or any other agreement between Borrower and the Bank
      or
      any of its affiliates or subsidiaries (collectively, “Affiliates”); (iii)
      Borrower fails to pay when due (whether at the stated maturity, by acceleration
      or otherwise) any indebtedness for borrowed money owing to the Bank (other
      than
      under this Note), any third party or Affiliate or the occurrence of any event
      which could result in acceleration of payment of any such indebtedness or the
      failure to perform any agreement with any third party or Affiliate; (iv) the
      reorganization, merger, consolidation or dissolution of Borrower (or the making
      of any agreement therefor); the sale, assignment, transfer or delivery of all
      or
      substantially all of the assets of Borrower to a third party; or the cessation
      by Borrower as a going business concern; (v) the death or judicial declaration
      of incompetency of Borrower, if an individual; (vi) failure to pay, withhold
      or
      collect any tax as required by law; the service or filing against Borrower
      or
      any of its assets of any lien (other than a lien permitted in writing by the
      Bank), judgment, garnishment, order or award; (vii) if Borrower becomes
      insolvent or is generally not paying its debts as such debts become due; (viii)
      the making of any general assignment by Borrower for the benefit of creditors;
      the appointment of a receiver or similar trustee for Borrower or its assets;
      or
      the making of any, or sending notice of any intended, bulk sale; (ix) Borrower
      commences, or has commenced against it, any proceeding or request for relief
      under any bankruptcy, insolvency or similar laws now or hereafter in effect
      in
      the United States of America or any state or territory thereof or any foreign
      jurisdiction or any formal or informal pro-ceeding for the dissolution or
      liquidation of, settlement of claims against or winding up of affairs of
      Borrower; (x) any representation or warranty made in this Note, the Financing
      Agreement, any related document, any agreement between Borrower and the Bank
      or
      any Affiliate or in any financial statement of Borrower proves to have been
      misleading in any material respect when made; Borrower omits to state a material
      fact necessary to make the statements made in this Note, the Financing
      Agreement, any related document, any agreement between Borrower and the Bank
      or
      any Affiliate or any financial statement of Borrower not misleading in light
      of
      the circumstances in which they were made; or, if upon the date of execution
      of
      this Note, there shall have been any material adverse change in any of the
      facts
      disclosed in any financial statement, representation or warranty that was not
      disclosed in writing to the Bank at or prior to the time of execution hereof;
      (xi) any pension plan of Borrower fails to comply with applicable law or has
      vested unfunded liabilities that, in the opinion of the Bank, might have a
      material adverse effect on Borrower’s ability to repay its debts; (xii) an
      adverse change in the Borrower, its business, assets, operations, management,
      ownership, affairs or condition (financial or otherwise) from the status shown
      on any financial statement or other document submitted to the Bank or any
      Affiliate, and which change the Bank determines will have a material adverse
      effect on (a) the Borrower, its business, assets, operations or condition
      (financial or otherwise), or (b) the ability of the Borrower to pay or perform
      any obligation to the Bank; (xiii) the occurrence of any event described in
      sub-paragraph (i) through and including (xii) hereof with respect to any
      guarantor or any other party liable for, or whose assets or any interest therein
      secures, payment of any of the amounts due under this Note; (xiv) Borrower
      fails
      to supply new or additional collateral within ten (10) days of request by the
      Bank; or (xv) the Bank in good faith deems itself insecure with respect to
      payment or performance under this Note, the Financing Agreement or any of the
      other Financing Documents.

    

    Rights
      and Remedies Upon Default.
      Upon the
      occurrence of any Event of Default, the Bank without demand of performance
      or
      other demand, presentment, protest, advertisement or notice of any kind (except
      any notice required by law) to or upon the Borrower or any other person (all
      and
      each of which demands, presentments, protests, advertisements and notices are
      hereby waived), may exercise all rights and remedies under the Borrower’s
      agreements with the Bank or its Affiliates, applicable law, in equity or
      otherwise and may declare all or any part of any amounts due hereunder not
      payable on demand to be immediately due and payable without demand or notice
      of
      any kind and terminate any obligation it may have to grant any additional loan,
      credit or other financial accommodation to the Borrower. All or any part of
      any
      amounts due hereunder whether or not payable on demand, shall be immediately
      due
      and payable automatically upon the occurrence of an Event of Default in
      sub-paragraph (ix) above, or at the Bank’s option, upon the occurrence of any
      other Event of Default. The provisions hereof are not intended in any way to
      affect any rights of the Bank with respect to any amounts due hereunder which
      may now or hereafter be payable on demand.

    

    Right
      of Setoff.
      The Bank
      shall have the right to set off against the amounts owing under this Note any
      property held in a deposit or other account with the Bank or any Affiliates
      or
      otherwise owing by the Bank or any Affiliate in any capacity to Borrower or
      any
      Guarantor or endorser of this Note. Such setoff shall be deemed to have been
      exercised immediately at the time the Bank or such Affiliate elects to do
      so.

    

    Miscellaneous.
      This
      Note, together with any related loan and security agreements and guaranties,
      contains the entire agreement between the Bank and Borrower with respect to
      the
      Note, and supersedes every course of dealing, other conduct, oral agreement
      and
      representation previously made by the Bank. All rights and remedies of the
      Bank
      under applicable law and this Note or amendment of any provision of this Note
      are cumulative and not exclusive. No single, partial or delayed exercise by
      the
      Bank of any right or remedy shall preclude the subsequent exercise by the Bank
      at any time of any right or remedy of the Bank without notice. No waiver or
      amendment of any provision of this Note shall be effective unless made
      specifically in writing by the Bank. No course of dealing or other conduct,
      no
      oral agreement or representation made by the Bank, and no usage of trade, shall
      operate as a waiver of any right or remedy of the Bank. No waiver of any right
      or remedy of the Bank shall be effective unless made specifically in writing
      by
      the Bank. Borrower agrees that in any legal proceeding, a copy of this Note
      kept
      in the Bank’s course of business may be admitted into evidence as an original.
      This Note is a binding obligation enforceable against Borrower and its
      successors and assigns and shall inure to the benefit of the Bank and its
      successors and assigns. If a court deems any provision of this Note invalid,
      the
      remainder of the Note shall remain in effect. Section headings are for
      convenience only. Singular number includes plural and neuter gender includes
      masculine and feminine as appropriate.

    

    Notices.
      Any
      demand or notice hereunder or under any applicable law pertaining hereto shall
      be in writing and duly given if delivered to Borrower (at its address on the
      Bank’s records) or to the Bank (at the address on page one and separately to the
      Bank officer responsible for Borrower’s relationship with the Bank). Such notice
      or demand shall be deemed sufficiently given for all purposes when delivered
      (i)
      by personal delivery and shall be deemed effective when delivered, or (ii)
      by
      mail or courier and shall be deemed effective three (3) business days after
      deposit in an official depository maintained by the United States Post Office
      for the collection of mail or one (1) business day after delivery to a
      nationally recognized overnight courier service (e.g.,
      Federal
      Express). Notice by e-mail is not valid notice under this or any other agreement
      between Borrower and the Bank.

    

    Joint
      and Several.
      If there
      is more than one Borrower, each of them shall be jointly and severally liable
      for all amounts and obligations which become due under this Note and the term
      “Borrower” shall include each as well as all of them.

    
       

      
        
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    Governing
      Law; Jurisdiction.
      This
      Note has been delivered to and accepted by the Bank and will be deemed to be
      made in the State of Maryland. Except as otherwise provided under federal law,
      this Note will be interpreted in accordance with the laws of the State of
      Maryland excluding its conflict of laws rules. BORROWER
      HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR
      FEDERAL COURT IN THE STATE OF MARYLAND WHERE THE BANK MAINTAINS A BRANCH AND
      CONSENTS THAT THE BANK MAY EFFECT ANY SERVICE OF PROCESS IN THE MANNER AND
      AT
      BORROWER’S ADDRESS SET FORTH ABOVE FOR PROVIDING NOTICE OR DEMAND; PROVIDED THAT
      NOTHING CONTAINED IN THIS NOTE WILL PREVENT THE BANK FROM BRINGING ANY ACTION,
      ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY RIGHTS AGAINST BORROWER
      INDIVIDUALLY, AGAINST ANY SECURITY OR AGAINST ANY PROPERTY OF BORROWER WITHIN
      ANY OTHER COUNTY, STATE OR OTHER FOREIGN OR DOMESTIC
      JURISDICTION.
      Borrower
      acknowledges and agrees that the venue provided above is the most convenient
      forum for both the Bank and Borrower. Borrower waives any objection to venue
      and
      any objection based on a more convenient forum in any action instituted under
      this Note.

    

    Waiver
      of Jury Trial. BORROWER AND THE BANK HEREBY KNOWINGLY, VOLUNTARILY AND
      INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY BORROWER AND THE BANK MAY HAVE
      IN
      ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS NOTE
      OR
      THE TRANSACTIONS RELATED HERETO. BORROWER REPRESENTS AND WARRANTS THAT NO
      REPRESENTATIVE OR AGENT OF THE BANK HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
      THAT THE BANK WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS JURY
      TRIAL WAIVER. BORROWER ACKNOWLEDGES THAT THE BANK HAS BEEN INDUCED TO ENTER
      INTO
      THIS NOTE BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS
      SECTION.

    

    Power
      to Confess Judgment. BORROWER HEREBY EMPOWERS ANY ATTORNEY OF ANY COURT OF
      RECORD, AFTER THE OCCURRENCE OF ANY EVENT OF DEFAULT HEREUNDER, TO APPEAR FOR
      BORROWER AND, WITH OR WITHOUT COMPLAINT FILED, CONFESS JUDGMENT, OR A SERIES
      OF
      JUDGMENTS, AGAINST BORROWER IN FAVOR OF THE BANK OR ANY HOLDER HEREOF FOR THE
      ENTIRE PRINCIPAL BALANCE OF THIS NOTE, ALL ACCRUED INTEREST AND ALL OTHER
      AMOUNTS DUE HEREUNDER, TOGETHER WITH COSTS OF SUIT AND AN ATTORNEY’S COMMISSION
      OF THE GREATER OF TEN PERCENT (10%) OF SUCH PRINCIPAL AND INTEREST OR $1,000
      ADDED AS A REASONABLE ATTORNEY’S FEE, AND FOR DOING SO THIS NOTE OR A COPY
      VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT. BORROWER HEREBY FOREVER
      WAIVES AND RELEASES ALL ERRORS IN SAID PROCEEDINGS AND ALL RIGHTS OF APPEAL
      AND
      ALL RELIEF FROM ANY AND ALL APPRAISEMENT, STAY OR EXEMPTION LAWS OF ANY STATE
      NOW IN FORCE OR HEREAFTER ENACTED. INTEREST ON ANY SUCH JUDGMENT SHALL ACCRUE
      AT
      THE DEFAULT RATE. NO SINGLE EXERCISE OF THE FOREGOING POWER TO CONFESS JUDGMENT,
      OR A SERIES OF JUDGMENTS, SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR
      NOT
      ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE INVALID, VOIDABLE, OR VOID,
      BUT THE POWER SHALL CONTINUE UNDIMINISHED AND IT MAY BE EXERCISED FROM TIME
      TO
      TIME AS OFTEN AS THE BANK SHALL ELECT UNTIL SUCH TIME AS THE BANK SHALL HAVE
      RECEIVED PAYMENT IN FULL OF THE DEBT, INTEREST AND COSTS. THE
      PROVISIONS OF THIS SECTION DO NOT APPLY TO ANY LOAN EVIDENCED BY THIS NOTE
      THAT
      IS WITHIN THE SCOPE OF THE SECTION ENTITLED “SPECIAL PROVISIONS - LOANS OF
      $75,000 OR LESS” AND MADE TO AN INDIVIDUAL OR SOLE PROPRIETOR
      BORROWER.

    

    Preauthorized
      Transfers from Deposit Account. If
      a
      deposit account number is provided in the following blank Borrower hereby
      authorizes the Bank to debit Borrower’s deposit account
      #______________________________with the Bank automatically for any amount which
      becomes due under this Note.

    

    Acknowledgment.
      Borrower
      acknowledges that it has read and understands all the provisions of this Note,
      including the Confession
      of Judgment, Governing Law, Jurisdiction
      and
      Waiver of Jury Trial,
      and has
      been advised by counsel as necessary or appropriate.

    

    WITNESS
      the due
      execution hereof as a SEALED INSTRUMENT the day and year first above
      written.

     

    

      
        	 	
                BORROWERS:

                PAYMENTS,
                  INC.

              
	 	 
	
                ______________(SEAL)  

                 

              	
                BY:_______________________(SEAL)

                Name:
                  _____________________

                Title:
                  ______________________

              
	 	 
	 	
                DCAP
                  GROUP, INC.

              
	 	 
	
                ______________(SEAL)  

                 

              	
                BY:_______________________(SEAL)

                Name:
                  _____________________

                Title:
                  ______________________

              

      

    

     

     

    

    [Acknowledgements
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    ACKNOWLEDGMENT

    

    STATE
      OF
      _________________ )

    :
      SS.

    COUNTY
      OF
      _______________ )

    

    On
      the
      __________ day of July, in the year 2006, before me, the undersigned, a Notary
      Public in and for said State, personally
      appeared______________________________________, personally known to me or proved
      to me on the basis of satisfactory evidence to be the individual(s) whose
      name(s) is (are) subscribed to the within instrument and acknowledged to me
      that
      he/she/they executed the same in his/her/their capacity(ies), and that by
      his/her/their signature(s) on the instrument, the individual(s), or the person
      upon behalf of which the individual(s) acted, executed the
      instrument.

    

    Notary
      Public

    

    

    

    STATE
      OF
      _________________ )

    :
      SS.

    COUNTY
      OF
      _______________ )

    

    On
      the
      __________ day of July, in the year 2006, before me, the undersigned, a Notary
      Public in and for said State, personally
      appeared______________________________________, personally known to me or proved
      to me on the basis of satisfactory evidence to be the individual(s) whose
      name(s) is (are) subscribed to the within instrument and acknowledged to me
      that
      he/she/they executed the same in his/her/their capacity(ies), and that by
      his/her/their signature(s) on the instrument, the individual(s), or the person
      upon behalf of which the individual(s) acted, executed the
      instrument.

    

    Notary
      Public

    

    

    

    
 

    

    
      
        

      

    

    FOR
      BANK
      USE ONLY

    

    Authorization
      Confirmed: 

    Disbursement
      of Funds:

    

    Credit
      A/C # ____________________ Off
      Ck #_________________
      Payoff
      Obligation #__________________
      

    $ ____________________     
      $__________________            $___________________Exhibit 10(j) Security Agreement, dated July 28, 2006

    SECURITY
      AGREEMENT

    (Guarantor
      Security Agreement)

     

     

    THIS
      SECURITY AGREEMENT (Guarantor
      Security Agreement)
      (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”),
      DCAP
      MANAGEMENT CORP., a corporation organized under the laws of the State of New
      York, DCAP ACCURATE, INC., a Delaware corporation (“DCAP
      Accurate”),
      AIA-DCAP CORP., a corporation organized under the laws of the Commonwealth
      of
      Pennsylvania, 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, BARRY SCOTT ACQUISITION CORP., a
      corporation organized under the laws of the State of New York, BARON CYCLE,
      INC., a corporation organized under the laws of the State of New York, BLAST
      ACQUISITION CORP., a corporation organized under the laws of the State of
      Delaware, DEALERS CHOICE AUTOMOTIVE PLANNING, INC., a corporation organized
      under the laws of the State of New York, IAH, INC., a corporation organized
      under the laws of the State of Delaware, and INTANDEM CORP., a corporation
      organized under the laws of the State of New York (each an “Obligor”
and
      collectively the “Obligors”).
      

     

    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.

     

    
      
        1

      

      
        
        

        
        

      

      
        
        

      

    

     

    C. The
      Obligors, other than DCAP Accurate, are parties to the “Corporate
      Guaranty”
(as
      that term is defined in the Original Financing Agreement) and the “Guarantor
      Security Agreement”
(as
      that term is defined in the Original Financing Agreement).

     

    D. The
      Obligors 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 Obligors 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 amendment and
      restatement of, without a novation of the indebtedness, liabilities and
      obligations of the Obligors under, the “Guarantor
      Security Agreement”
(as
      that term is defined in the Original Financing Agreement). References in the
      Financing Agreement and the other Financing Documents to the “Guarantor
      Security Agreement”
shall
      mean this Agreement as
      amended, restated, modified, substituted, extended and renewed from time to
      time.

     

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

     

    FOR
      GOOD
      AND VALUABLE CONSIDERATION, the receipt and sufficiency of which the Obligor
      hereby acknowledges,

     

    FOR
      THE
      PURPOSE OF SECURING (i) all present and future indebtedness, liabilities and
      other obligations of any nature whatsoever (direct or indirect, fixed or
      contingent), and whether or not now contemplated, of the Obligor to Secured
      Party and the Lenders including, without limitation, those indebtedness,
      liabilities and other obligations arising pursuant to or in connection with
      this
      Agreement, that certain Amended and Restated Guaranty of Payment Agreement
      dated
      of even date herewith (the “Guaranty”)
      from
      the Obligor in favor of the Secured Party, as agent for itself and the other
      Lenders, and/or (ii) all present and future indebtedness, liabilities and other
      obligations of any nature whatsoever (direct or indirect, fixed or contingent;
      including, without limitation, the “Obligations”
as
      that
      term is defined the Financing Agreement ), and whether or not now contemplated,
      under or secured by the Financing Agreement from time to time (all indebtedness,
      liabilities and other obligations under clauses (i) and/or (ii) above
      collectively, the “Secured
      Obligations”),

     

    THE
      OBLIGOR HEREBY assigns, pledges and grants a security interest to Secured Party,
      and covenants and agrees that Secured Party shall have a perfected and
      continuing security interest in, all of the following property of the Obligor,
      all whether now owned or existing or hereafter acquired or created wherever
      situated (collectively, the “Collateral”):

     

    (a)  All
      inventory, and all warranties, licenses, franchises, documents, chattel paper
      and general intangibles related thereto (including, without limitation,
      software), and all returned, rejected or repossessed goods; and

     

    (b)  All
      accounts, contract rights, chattel paper (including, without limitation,
      electronic chattel paper), instruments, payment intangibles and other general
      intangibles, health-care-insurance receivables, money and documents, and all
      returned, rejected or repossessed goods, the sale or lease of which shall have
      given or shall give rise to any of the foregoing; and

    
       

      
        
          2

        

        
          
          

          
          

        

        
          
          

        

      

    

     

    (c)  All
      equipment, furniture, fixtures, and other goods together with (i) all additions,
      parts, fittings, accessories, special tools, attachments and accessions now
      and
      hereafter affixed thereto and/or used in connection therewith, (ii) leases
      and
      chattel paper with respect thereto, (iii) all replacements thereof and
      substitutions therefor and (iv) and all warranties, licenses, franchises, and
      general intangibles related to the foregoing (including, without limitation,
      software); and

     

    (d)  All
      general intangibles (including, without limitation, all books and records,
      things in action, contractual rights, tax returns, goodwill, literary rights,
      rights to performance, copyrights, trademarks and patents) and commercial tort
      claims; and

     

    (e)  All
      notes, notes receivable, drafts, letters of credit, letter-of-credit rights,
      supporting obligations, deposit accounts, investment property, security,
      acceptances, instruments and documents; and

     

    WITH
      RESPECT TO EACH AND ALL OF THE FOREGOING, all insurance policies and insurance
      proceeds related to any and all of the foregoing or otherwise and all cash
      and
      noncash proceeds thereof, and all books and records in whatever media (paper,
      electronic or otherwise) recorded or stored, with respect to any or all of
      the
      foregoing and all equipment, hardware and general intangibles necessary,
      beneficial or desirable to retain, access and/or process the information
      contained in those books and records, and all proceeds (cash and noncash) of
      the
      foregoing, it being the intention of the Obligor that the Collateral shall
      include all of the Obligor’s personal property. All terms used herein which are
      defined by the Maryland Uniform Commercial Code shall have the same meanings
      as
      assigned to them by the Maryland Uniform Commercial Code unless and to the
      extent varied by this Agreement.

     

    The
      Obligor further agrees that the Secured Party shall have in respect thereof
      all
      of the rights and remedies of a secured party under the Maryland Uniform
      Commercial Code as well as those provided in this Agreement. Notwithstanding
      the
      fact that the proceeds of the Collateral constitute a part of the Collateral,
      the Obligor may not dispose of the Collateral, or any part thereof.

     

    1.  The
      Obligor covenants with and warrants to Secured Party that:

     

    (a)  The
      Obligor will store the Collateral in appropriate containers, in safe and secure
      locations, and in accordance with applicable laws, will take all steps necessary
      to preserve and maintain the Collateral and its value, and will not permit
      anything to be done to the Collateral which may materially impair its value
      or
      security. Secured Party, or agents designated by Secured Party, shall be
      permitted to enter the premises of the Obligor and examine, audit and inspect
      the Collateral at any reasonable time and from time to time without
      notice.

     

    (b)  At
      its
      expense, the Obligor will defend the title to the Collateral (or any part
      thereof), and will promptly upon request by the Secured Party execute,
      acknowledge and deliver or obtain any financing statement, continuation
      statement, security agreement, assignment, instruments, acknowledgments,
      landlord, bailee and other third party waivers, filings 

     

     

    
      
        3

      

      
        
        

        
        

      

      
        
        

      

       

      or
        other
        document as may be necessary or beneficial, in the opinion of the Secured
        Party,
        to perfect (by control or otherwise), preserve, provide notice of, maintain,
        continue, realize upon, protect and/or extend the assignment, lien or security
        interest granted to the Secured Party under this Agreement and its priority.
        The
        Obligor agrees that a copy of a fully executed security agreement and/or
        financing statement shall be sufficient to satisfy for all purposes the
        requirements of a financing statement as set forth in Article 9 of the
        applicable Uniform Commercial Code. Further, to the extent permitted by
        applicable laws, the Secured Party is authorized to file, without the Obligor’s
        signature, one or more financing statements, amendments to financing statements,
        correction statements or other notices disclosing the Secured Party’s liens and
        other security interests. All financing statements and notices may describe
        the
        Secured Party’s collateral as all assets or all personal property of Obligor.
        The Obligor hereby ratifies and confirms the validity of any and all financing
        statements filed by the Secured Party prior to the date of this
        Agreement.

    

     

    (c)  The
      Obligor will maintain on the goods included among the Collateral hazard
      insurance with fire and extended coverage, naming Secured Party as an additional
      insured and sole loss payee, in amounts, with endorsements, from insurers and
      otherwise in form and substance satisfactory to Secured Party as determined
      by
      Secured Party from time to time.

     

    (d)  The
      Obligor will immediately notify the Secured Party of each change which has
      caused, and of each proposed change which the Obligor believes would cause,
      the
      information contained on EXHIBIT A to this Agreement to be no longer accurate,
      complete and correct

     

    2.  The
      Obligor hereby represents and warrants to and covenants with the Secured Party
      that:

     

    (a)  The
      Obligor has full power and authority to execute and deliver this Agreement
      and
      to incur and perform the obligations provided for therein, all of which have
      been duly authorized by all proper and necessary action of the appropriate
      governing body of the Obligor and by all necessary third parties including,
      without limitation, Governmental Authorities. This Agreement constitutes valid
      and legally binding obligations of the Obligor, enforceable in accordance with
      their terms.

     

    (b)  There
      is
      no charter, bylaw, stock provision, partnership, operating agreement, articles
      of organization, partnership agreement, or other document pertaining to the
      organization, power or authority of the Obligor and no provision of any existing
      agreement, mortgage, indenture, contract, law, court or administrative order
      or
      proceeding binding on or applicable to the Obligor or affecting its property,
      which would conflict with or in any way prevent the execution, delivery or
      carrying out of the terms of this Agreement.

     

    (c)  The
      Obligor has good title to the Collateral and the Collateral is free and clear
      of
      liens, security interests, claims, encumbrances, and assignments, except those
      granted to the Secured Party, except, with
      respect to the assets of Barry Scott Companies, Inc. only,
      those
      granted to The Progressive Corporation, and except, with respect to assets
      of
      DCAP Accurate purchased from Accurate Agency of Western New York, Inc., Louisons
      Associates Limited and Accurate Agency, Inc., security interests granted to
      those persons in the assets purchased.

     

    
       

      
        
          4

        

        
          
          

          
          

        

        
          
          

        

      

    

    (d)  The
      Secured Party has and will at all times continue to have as security for the
      Secured Obligations a valid and perfected security interest in all of the
      Collateral.

     

    (e)  At
      the
      time this Agreement is executed and delivered, there exists no default under
      this Agreement and no condition that with the giving or notice or the passage
      of
      time would be a default under this Agreement.

     

    (f)  The
      information contained in EXHIBIT A, which is attached to and a part of this
      Agreement, is accurate, complete and correct.

     

    3.  The
      Obligor shall be in default under this Agreement and the Secured Obligations
      if
      the Obligor (i) breaches any agreement, covenant and warranty under this
      Agreement or any other agreement, covenant or warranty between the Obligor
      and
      the Secured Party, (ii) is in default under any of the other Secured
      Obligations, including, without limitation, any agreement with respect thereto,
      (iii) transfers to another location any of the Collateral, or makes any change
      which would cause the information contained on EXHIBIT A to this Agreement
      to be
      no longer accurate, complete and correct, (iv) transfers or assigns (including,
      without limitation, transfers or assignments by merger, consolidation or
      operation of law) or sells, conveys, leases, assigns, transfers or otherwise
      disposes of all or any part of the Collateral, except inventory sold in the
      ordinary course of business prior to an event of default, (v) permits (or if
      there shall arise) any security interest, encumbrance, financing statement,
      lien
      (including, without limitation, tax lien) or charge of any kind on the
      Collateral, except for the liens of Secured Party pursuant to this Agreement
      and
      except for the liens of The Progressive Corporation on the assets of Barry
      Scott
      Companies, Inc., (vi) changes the Obligor's name, state of organization, or
      entity structure, or become organized under the laws of an additional state,
      (vii) liquidates, dissolves or terminates its existence, (viii) admits in
      writing its inability generally to pay its debts as they mature or shall make
      any assignment for the benefit of any of its creditors, (ix) is the subject
      of
      federal or state bankruptcy, insolvency, receivership or trustee proceedings,
      or
      (x) suffers (or if there shall occur) an “Event of Default” (as that term is
      defined in the Financing Agreement or in any of the other Financing
      Documents).

     

    4.  Upon
      the
      occurrence of a default under this Agreement (and in addition to all of its
      rights, powers and remedies under this Agreement, the Guaranty, any other
      promissory notes, documents, instruments, guaranties, mortgages or other
      contract with or for the benefit of the Secured Party, or securing or evidencing
      payment of any indebtedness of the Obligor, at any time executed by the Obligor
      and/or any other person in connection with any of the Secured Obligations,
      all
      as the same may be amended, modified, restated, substituted, extended and
      renewed at any time and from time to time, the “Financing Documents”): The
      Secured Party may, in the exercise of its sole and absolute discretion, declare
      all or any part of the Secured Obligations to be immediately due and payable.
      The Secured Party shall have all of the rights and remedies of a secured party
      under the Maryland Uniform Commercial Code and other applicable laws. If the
      sale or other disposition of the Collateral fails to satisfy all of the Secured
      Obligations, the Obligor shall remain liable to Secured Party for any
      deficiency. Upon demand by Secured Party, the Obligor shall assemble the
      Collateral and make it available to Secured Party, at a place reasonably
      convenient for such purpose as designated by Secured Party. The Obligor shall
      hold in trust for the Secured Party all collections and proceeds of Collateral
      in the form received, shall not commingle those collections or proceeds with
      any
      other assets of the Obligor and shall deliver those collections and proceeds
      immediately to the Secured Party with

    
       

      
        
          5

        

        
          
          

          
          

        

        
          
          

        

         

        any
          necessary endorsement. The Secured Party or its agents may enter upon and
          remain
          on the Obligor’s premises to take possession of the Collateral, to remove it, to
          render it unusable, to collect it, or to sell or otherwise dispose of it
          and to
          take any other action permitted to be taken under this Agreement or under
          applicable laws. Any proceeds of the collection, the sale or other disposition
          of the Collateral will be applied by the Secured Party to the Secured
          Obligations (whether then due or not), at such time or times and in such
          order
          and manner of application as the Secured Party may from time to time in
          its sole
          and absolute discretion determine.

      

    

     

    5.  If
      the
      Obligor fails to take any action required to be taken by the Obligor under
      this
      Agreement (including, without limitation, obtaining required insurance), the
      Secured Party, in the exercise of its sole and absolute discretion, may do
      so in
      the name of the Secured Party or the Obligor as the Secured Party may elect,
      but
      at the cost and expense of the Obligor, which cost and expense shall be
      immediately due and payable to the Secured Party as part of the Secured
      Obligations. In addition to all other rights and remedies provided hereunder
      or
      as shall exist at law or in equity from time to time, the Secured Party may
      (but
      shall be under no obligation to), without notice to the Obligor, in the name
      of
      the Secured Party or in the name of the Obligor or otherwise, for the use and
      benefit of the Secured Party, but at the cost and expense of the Obligor, (i)
      following a default under this Agreement, extend, renew, demand, collect,
      enforce by legal or equitable proceedings or otherwise, exchange, surrender,
      compromise, give receipt for and give renewals, extensions, discharges and
      releases of, any and all of the Collateral; (ii) endorse or sign the name of
      the
      Obligor upon any items of payment, certificates of title, instruments, financing
      statements, securities, powers, documents, documents of title, or other writing
      relating to or part of the Collateral; and (iii) following a default under
      this
      Agreement, take any other action necessary or beneficial to realize upon or
      dispose of the Collateral. The Obligor hereby irrevocably appoints the Secured
      Party as its attorney-in-fact, with power of substitution from time to time,
      to
      take such actions as are described in this paragraph as well as any other action
      which the Obligor is required to take under this Agreement or under any of
      the
      other Financing Documents, including, without limitation, the execution,
      acknowledgment and delivery of any financing statement, continuation statement,
      security agreement, assignment, instruments, filings or other document as may
      be
      necessary or beneficial, in the opinion of the Secured Party, to perfect,
      preserve, provide notice of, maintain, continue, realize upon, protect and/or
      extend the assignment, lien or security interest granted to the Secured Party
      under this Agreement and its priority.

     

    6.  Without
      precluding other means for giving notice, any written notice of the sale,
      disposition or other intended action by Secured Party with respect to the
      Collateral given at least ten (10) days prior to such sale, disposition or
      other
      action and sent to the mailing address set forth on EXHIBIT A attached hereto,
      shall in all events constitute commercially reasonable notice to the
      Obligor.

     

    7.  The
      Obligor agrees to pay to Secured Party as part of the Secured Obligations all
      reasonable expenses, charges, costs, taxes, and fees (including, without
      limitation, reasonable attorney’s fees and expenses, whether incurred prior to
      the institution of any suit or other proceeding or otherwise) of any nature
      whatsoever paid or incurred by or on behalf of Secured Party or the Lenders
      in
      connection with the perfection, collection, maintenance, preservation,
      inspection, insuring, defense, protection, realization upon, disposition, sale
      or enforcement of all or any part of the Collateral or the enforcement or
      collection of the Secured Obligations.

    
       

      
        
          6

        

        
          
          

          
          

        

        
          
          

        

      

    

    8.  This
      Agreement may not be amended, modified, or changed in any respect except by
      an
      agreement in writing signed by the Secured Party and the Obligor. The Secured
      Party shall have the right at all times to enforce the provisions of this
      Agreement in strict accordance with the terms hereof, notwithstanding any
      conduct or custom on the part of the Secured Party in refraining from so doing
      at any time or times. The failure or delay of the Secured Party at any time
      or
      times to enforce the rights under such provisions, strictly in accordance with
      the same, shall not be construed as having created a custom in any way or manner
      contrary to specific provisions of this Agreement or as having in any way or
      manner modified or waived the same.

     

    9.  The
      rights, powers and remedies provided in this Agreement are cumulative, may
      be
      exercised concurrently or separately, may be exercised from time to time and
      in
      such order as the Secured Party shall determine, and are in addition to, and
      not
      exclusive of, rights, powers and remedies provided by applicable laws, all
      without regard to any right of the Obligor or any other person or entity to
      the
      marshalling of assets, which right the Obligor and any other person or entity
      who may be liable (by endorsement, guaranty, indemnity or otherwise) for all
      or
      any part of the Secured Obligations hereby waive to the extent permitted by
      applicable laws. Without limiting the generality of the foregoing, the Secured
      Party and the Lenders may: (a) proceed against any one or more Obligors and/or
      the Collateral with or without proceeding against any other Obligor or any
      other
      person obligated under any of the Secured Obligations; (b) proceed against
      the
      Obligor with or without proceeding under the other Financing Documents; (c)
      without reducing or impairing the obligation of the Obligor and without notice,
      release or compromise with any guarantor or other person liable for all or
      any
      part of the Secured Obligations; and (d) without reducing or impairing the
      obligations of the Obligor and without notice thereof: (i) fail to perfect
      the
      security interests and/or other interests of the Secured Party in any or all
      Collateral or to release any or all the Collateral or to accept substitute
      Collateral, (ii) allow all or any Secured Obligations to arise after the date
      of
      this Agreement, (iii) waive any provision of this Agreement, (iv) exercise
      or
      fail to exercise rights of set-off or other rights, (v) accept partial payments
      or extend from time to time the maturity of all or any part of the Secured
      Obligations, and (vi) take or fail to take any action under this Agreement
      or
      against any one or more persons obligated under the Secured Obligations. The
      Obligor, together with any guarantor, surety or indemnitor of all or any part
      of
      the Secured Obligations, hereby waives and releases all claims and defenses
      against the Secured Party and the Lenders and/or with respect to the payment
      or
      enforcement of the Secured Obligations and the Secured Party’s rights in the
      Collateral on account of any of the foregoing.

     

    10.  In
      case
      one or more provisions contained in this Agreement shall be invalid, illegal
      or
      unenforceable in any respect under any law, the validity, legality and
      enforceability of the remaining provisions contained herein shall remain
      effective and binding on the parties hereto and shall not be affected or
      impaired thereby.

     

    11.  “Obligor”
means
      the collective reference to each and every Person defined as a “Obligor” in the
      preamble of this Agreement or otherwise so identified in this Agreement from
      time to time, and to any one or more of such Persons, all jointly and severally,
      unless a specific Obligor is expressly identified. “Obligors” means the
      collective reference to all Persons included in the definition of “Obligor.” The
      headings in this Agreement are included herein for convenience only, shall
      not
      constitute a part of this Agreement for any other purpose, and shall not be
      deemed to affect the meaning or construction of any of the provisions hereof.
      The above Recitals are part of this Agreement

     

    
       

      
        
          7

        

        
          
          

          
          

        

        
          
          

        

      

    

     

    12.  This
      Agreement shall be binding upon and inure to the benefit of the Obligor and
      Secured Party and their respective successors and assigns.

     

     

    [Signatures
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          8

        

        
          
          

          
          

        

        
          
          

        

      

    

    

    SIGNATURE
      PAGE TO

    SECURITY
      AGREEMENT

    (GUARANTOR
      SECURITY AGREEMENT)

     

    WITNESS
      the signature and seal of the Obligors as of the day and year first above
      written.

     

    

    
      	
              WITNESS
                OR ATTEST:

               

              _______________________

            	
              DCAP
                GROUP, INC.

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            
	 	 
	
              ATTEST:

               

              _______________________

            	
              DCAP
                MANAGEMENT CORP.

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            
	 	 
	
              ATTEST:

               

              _______________________

            	
              DCAP
                ACCURATE, INC. 

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            
	 	 
	
              ATTEST:

               

              _______________________

            	
              AIA-DCAP
                CORP.

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            

    

     

    
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      SIGNATURE
        PAGE TO

      SECURITY
        AGREEMENT

      (GUARANTOR
        SECURITY AGREEMENT)

    

     

    
      	 	 
	
              ATTEST:

               

              _______________________

            	
              BARRY
                SCOTT AGENCY, INC. 

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            
	 	 
	
              ATTEST:

               

              _______________________

            	
              BARRY
                SCOTT COMPANIES, INC.

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            
	 	 
	
              ATTEST:

               

              _______________________

            	
              BARRY
                SCOTT ACQUISITION CORP.

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            
	 	 
	
              ATTEST:

               

              _______________________

            	
              BARON
                CYCLE, INC.

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            
	 	 
	
              ATTEST:

               

              _______________________

            	
              BLAST
                ACQUISITION CORP.

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            

    

     

    
      [Signatures
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      SIGNATURE
        PAGE TO

      SECURITY
        AGREEMENT

      (GUARANTOR
        SECURITY AGREEMENT)

    

     

     

    
      	 	 
	
              ATTEST:

               

              _______________________

            	
              DEALERS
                CHOICE AUTOMOTIVE PLANNING, INC.

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            
	 	 
	
              ATTEST:

               

              _______________________

            	
              IAH,
                INC.

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            
	 	 
	
              ATTEST:

               

              _______________________

            	
              INTANDEM
                CORP.

               

              By:_____________________
                (SEAL)

              Barry
                B. Goldstein,

              President

            
	 	 

    

     

    
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    ACKNOWLEDGEMENT
      PAGE TO

    SECURITY
      AGREEMENT

    (GUARANTOR
      SECURITY AGREEMENT)

    

    STATE
      OF
      MARYLAND, CITY OF BALTIMORE, TO WIT:

     

    I
      HEREBY
      CERTIFY, that on this ___ day of July, 2006, before me, a Notary Public of
      said
      State, personally appeared Barry B. Goldstein, who acknowledged himself to
      be
      the President of DCAP GROUP, INC., a corporation organized under the laws of
      the
      State of Delaware, and of each of the other Guarantors described in foregoing
      instrument, known to me (or satisfactorily proven) to be the person whose name
      is subscribed to the foregoing instrument and acknowledged that he executed
      the
      same for the purposes therein contained as the duly authorized President of
      each
      of said corporations by signing the respective names of the corporations by
      himself as President, respectively, of each.

     

     

    WITNESS
      my hand and Notarial Seal.

     

    

    ______________________________

    Notary
      Public

    My
      Commission Expires:

    

    
      
         

        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

    EXHIBIT
      A TO SECURITY AGREEMENT

     

     

    The
      Obligor further represents and warrants to the Secured Party that the
      information provided to the Lender on the Perfection Certificate dated on or
      about the Original Closing Date (as that term is defined in the Financing
      Agreement) with respect to each Obligor other than DCAP Accurate and on or
      about
      date of this Agreement in the case of DCAP Accurate, and provided by each
      Obligor to the Lender is true and correct and is incorporated into this
      Agreement by reference.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]