Document:

ex10a.htm

    AMENDMENT NO. 1, dated as of
August 25, 2008, to EMPLOYMENT
AGREEMENT, dated as of October 16, 2007 (the “Amendment”), by and between
DCAP GROUP, INC., a
Delaware corporation (the “Company”), and BARRY GOLDSTEIN (the
“Employee”).

     

    RECITALS

     

    WHEREAS, the Company and the
Employee are parties to an Employment Agreement, dated as of October 16, 2007
(the “Employment Agreement”), which sets forth the terms and conditions upon
which the Employee is employed by the Company and upon which the Company
compensates the Employee.

     

    WHEREAS, the Employee serves
as Chairman of the Board (“Chairman”)  and Chief Investment Officer
(“CIO”) of Commercial Mutual Insurance Company (“CMIC”).

    

    WHEREAS, the Employee has
entered into an Employment Contract with CMIC (the “CMIC Employment Contract”)
pursuant to which, among other things, he will be required to devote a
significant portion of his working hours to the fulfillment of his duties and
responsibilities as Chairman and CIO of CMIC and he will be entitled to receive
compensation from CMIC in consideration therefor.

     

    WHEREAS, the Company and the
Employee desire to amend the Employment Agreement to give effect to the
Employee’s entering into the CMIC Employment Contract.

     

    NOW, THEREFORE, in
consideration of the foregoing, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties,
intending to be legally bound, hereby agree as follows:

     

    
      1. Paragraph
3.1 of the Employment Agreement is amended to read as follows:

       

    

    “3.1           During
the Term, the Employee shall expend all of his working time for the Company
(subject to the further provisions hereof); shall devote his best efforts,
energy and skill to the services of the Company and the promotion of its
interests; and shall not take part in activities detrimental to the best
interests of the Company.  Notwithstanding the foregoing, during the
term of the Employment Contract between Commercial Mutual Insurance Company
(“CMIC”) and the Employee, dated as of July 1, 2008 (the “CMIC Employment
Contract”), the Employee shall be entitled to devote up to the number of hours
per year currently provided for in the CMIC Employment Contract in the
fulfillment of his duties and responsibilities as Chairman of the Board and
Chief Investment Officer of CMIC, it being understood and agreed that such
permitted activity is subject to the reduction in Base Salary provided for in
Paragraph 4.2 hereof.”

     

    2. The
following sentence is added to the end of Paragraph 4.2 of the Employment
Agreement:

     

    “4.2           Effective
July 1, 2008, the Base Salary shall be reduced on a dollar-for-dollar basis to
the extent of the salary payable by CMIC to the Employee pursuant to the CMIC
Employment Contract.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. Except as
amended hereby, the Employment Agreement shall continue in full force and effect
in accordance with its terms.  This Amendment shall be governed by,
and interpreted and construed in accordance with, the laws of the State of New
York, excluding choice of law principles thereof.  In the event any
clause, section or part of this Amendment shall be held or declared to be void,
illegal or invalid for any reason, all other clauses, sections or parts of this
Amendment which can be effected without such void, illegal or invalid clause,
section or part shall nevertheless continue in full force and
effect.

     

    4. This
Amendment may be executed in one or more counterparts, each of which shall be
deemed an original, and all of which taken together shall constitute one and the
same instrument.

     

    5. Signatures
hereon which are transmitted via facsimile shall be deemed original
signatures.

     

    6. The
Employee acknowledges that he has been represented by counsel or has been
afforded an opportunity to be represented by counsel in connection with this
Amendment.  Accordingly, any rule or law or any legal decision that
would require the interpretation of any claimed ambiguities in this Amendment
against the party that drafted it has no application and is expressly waived by
the Employee.  The provisions of this Amendment shall be interpreted
in a reasonable manner to give effect to the intent of the parties
hereto.

     

    

     

    {Remainder
of page intentionally left blank.  Signature page
follows.}

     

    

     

    
      
        
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    IN WITNESS WHEREOF, the
Company and the Employee have executed this Amendment as of the date first above
written.

     

    

     

    DCAP
GROUP, INC.

     

    

     

    By:  /s/
Morton L.
Certilman                  

    Morton L.
Certilman, Secretary

     

    

    
        

    /s/
Barry
Goldstein                                  

    Barry
Goldsteinex10b.htm

    AMENDMENT
NO. 4 TO SECURED SUBORDINATED

    PROMISSORY
NOTES AND WARRANTS

    

    DCAP
GROUP, INC.

    1158
Broadway

    Hewlett,
New York 11558

    

    August
13, 2008

    

    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 as set forth

    on
Schedule A attached hereto

    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”).

     

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

     

    The parties agree as
follows:

     

    1. The
Maturity Date for each of the Notes is hereby extended from September 30, 2008
to the earlier of (a) July 10, 2009 or (b) ninety (90) days following the
effective date on which Commercial Mutual Insurance Company (“CMIC”) is
converted from an advance premium cooperative insurance company to a stock
property and casualty insurance company and the surplus notes of CMIC held by
the Company are converted into a controlling interest in CMIC (subject to
acceleration as hereinafter provided).

     

    2. On the
date on which the aggregate principal amount of the Notes is paid in full, an
additional amount (the “Additional Amount”) equal to $10,000 (in the aggregate
for all of the Noteholders), multiplied by the number of whole or partial
calendar months from October 1, 2008 through the Maturity Date, shall be paid to
the Noteholders.  Notwithstanding the foregoing, in the event that a
portion, but not all, of the aggregate principal amount of the Notes is paid,
from the date on which such partial payment is made and through the Maturity
Date, the $10,000 amount shall be reduced proportionately to the extent of the
partial payment.  The Noteholders shall be entitled to their
respective pro rata portion of the Additional Amount based upon the principal
amount of their Note redeemed in relation to the aggregate principal amount of
the Notes redeemed.  As an illustration of the foregoing, in the event
the entire $1,500,000 aggregate principal amount of the Notes is paid on July
10, 2009, the Additional Amount for the Noteholders, in the aggregate, would be
$100,000 ($10,000 x 10 months (October 2008 through July 2009)).  As a
further illustration of the foregoing, in the event $750,000 of the aggregate
principal amount of the Notes is paid on February 14, 2009 and the remaining
$750,000 aggregate principal amount of the Notes is paid on July 10, 2009, the
Additional Amount for the Noteholders, in the aggregate, would be $72,500
($10,000 x 4.5 months (October 2008 through February 14, 2009) plus $5,000
(based on one-half of the aggregate principal amount of the Notes having been
repaid) x 5.5 months (February 15, 2009 through July 2009)) and would be payable
on July 10, 2009.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. In the
event that the Company consummates a sale of assets, borrows funds, and/or
consummates a debt or equity financing, and/or any combination of the foregoing,
the Company shall each time a transaction is consummated, use the net proceeds
from such transaction in the following order of priority:  (x) set
aside $750,000 on a cumulative basis for working capital needs, (y) satisfy the
Company’s existing indebtedness, if any, to Manufacturers and Traders Trust
Company; and (z) prepay the principal amounts of the Notes on a pro rata
basis.

     

    4. The
Company agrees that, prior to the payment in full of the amounts due under the
Notes, it will not grant a security interest in any of its assets as security
for the repayment of indebtedness.

     

    5. This
Agreement constitutes the entire agreement between the parties pertaining to the
subject matter hereof, and supersedes all prior agreements or understandings as
to such subject matter.

     

    6. No
amendment or modification of this Agreement shall be valid unless made in
writing and signed by the party to be charged therewith.

     

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

     

    8. This
Agreement shall be construed and interpreted and the rights granted herein
governed in accordance with the laws of New York, without giving effect to
conflict of laws principles.

     

    9. The
parties acknowledge that they have been represented by counsel, or have been
accorded the opportunity to be represented by counsel, in connection with this
Agreement.  Accordingly, any rule or law or any legal decision that
would require the interpretation of any claimed ambiguities in this Agreement
against the party that drafted it has no application and is expressly waived by
the parties.  The provisions of this Agreement shall be interpreted in
a reasonable manner to give effect to the intent of the parties
hereto.

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    10. Except as
amended hereby, the Notes and shall continue in full force and effect in
accordance with their respective terms.

     

    Very
truly yours,

    

    DCAP
GROUP, INC.

    

    By: /s/
Barry B.
Goldstein             

          Barry
B. Goldstein, President

    

    

    Agreed:

     

    /s/
Jack
Seibald                                             

    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 as set forth on Schedule A attached hereto

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
A

    

    

    
      	
               

               

              Name

            	 
      	
               

              Outstanding
      Principal

              Amount of Note

            
	
              IRA
      FBO Stewart R. Spector,

                 Pershing
      LLC Custodian

            	 
      	
               

              $461,538.49

            
	
               

              IRA
      FBO Jack D. Seibald,

                   Pershing
      LLC Custodian

            	 
      	
               

               

              $288,461.54

            
	
               

              J.M.J
      Realty Company

            	 
      	
               

              $230,769.23

            
	
               

              Sanders
      Opportunity Fund (Inst.), LP

            	 
      	
               

              $166,153.85

            
	
               

              Take-Two
      Capital LP

            	 
      	
               

              $115,384.61

            
	
               

              Sanders
      Opportunity Fund, LP

            	 
      	
               

              $64,615.39

            
	
               

              Michael
      Rosen and Catherine Rosen

            	 
      	
               

              $57,692.31

            
	
               

              Kidstone
      LLC

            	 
      	
               

              $115,384.61

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