<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>bgsoa502.txt
<DESCRIPTION>OPTION AGREEMENT
<TEXT>
     STOCK  OPTION  AGREEMENT,  entered  into as of the 15th  day of May,  2002,
between DCAP GROUP,  INC., a Delaware  corporation  (the  "Company"),  and BARRY
GOLDSTEIN (the "Optionee").

     WHEREAS,  the Optionee is an employee of the Company and is a member of the
Board of Directors of the Company and its subsidiaries thereof; and

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

     NOW,  THEREFORE,  in  consideration  of the  foregoing,  the Company hereby
grants to the  Optionee  the right and option to purchase  Common  Shares of the
Company under and pursuant to the terms and  conditions  of the  Company's  1998
Stock Option Plan (the "Plan") and upon the following terms and conditions:

     1. GRANT OF OPTION. The Company hereby grants to the Optionee the right and
option (the "Option") to purchase up to One Million (1,000,000) Common Shares of
the Company  (the  "Option  Shares")  during the period  commencing  on the date
hereof and terminating at 5:00 P.M. on May 15, 2007 (the ""Expiration Date").

     2. NATURE OF OPTION. The Option is not intended to meet the requirements of
Section  422 of the  Internal  Revenue  Code of 1986,  as  amended,  relating to
"incentive stock options."

     3. EXERCISE PRICE. The exercise price of each of the Option Shares shall be
Thirty  Cents ($.30) (the "Option  Price").  The Company  shall pay all original
issue or transfer taxes on the exercise of the Option.

     4. EXERCISE OF OPTIONS.  The Option shall be exercised in  accordance  with
the provisions of the Plan. As soon as  practicable  after the receipt of notice
of exercise  and payment of the Option  Price as provided  for in the Plan,  the
Company shall tender to the Optionee a certificate issued in the Optionee's name
evidencing the number of Option Shares covered thereby.

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

     6. TERMINATION OF EMPLOYMENT. The Option shall remain exercisable until the
Expiration  Date  notwithstanding  any termination or cessation of employment or
other   association  with  the  Company  or  its  subsidiaries  for  any  reason
whatsoever.

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

<PAGE>

     8. NOTICES.  Any notice or other  communication  given  hereunder  shall be
deemed  sufficient if in writing and  delivered  personally or sent by facsimile
transmission,  overnight mail or courier or registered or certified mail, return
receipt  requested,  postage  prepaid,  addressed  to the  Company at 90 Merrick
Avenue,  9th Floor,  East  Meadow,  New York 11554,  Attention:  Secretary  (fax
number:  (516) 794-4529),  and to the Optionee at the address set forth below or
to such other address as either party may hereafter  designate in writing to the
other party in accordance with the provisions hereof. Notices shall be deemed to
have been given on the date of mailing or transmission, except notices of change
of address, which shall be deemed to have been given when received.

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

     10. ENTIRE AGREEMENT. This Stock Option Agreement,  together with the Plan,
contains  the entire  understanding  of the parties  hereto with  respect to the
subject matter hereof and may be modified only by an instrument  executed by the
party sought to be charged.  No  amendment  on the part of the Company  shall be
valid unless approved by its Board of Directors.

     11.  GOVERNING LAW. This Stock Option  Agreement  shall be governed by, and
construed  in  accordance  with,  the laws of the State of New  York,  excluding
choice of law rules thereof.

     12. EXECUTION IN COUNTERPARTS.  This Stock Option Agreement may be executed
in  counterparts,  each of which shall be deemed to be an original,  but both of
which together shall constitute one and the same instrument.

     13.  FACSIMILE  SIGNATURES.  Signatures  hereon which are  transmitted  via
facsimile shall be deemed original signatures.

     14. INTERPRETATION; HEADINGS. The provisions of this Stock Option Agreement
shall be interpreted in a reasonable  manner to give effect to the intent of the
parties hereto.  The headings and captions under sections and paragraphs of this
Stock Option  Agreement are for  convenience of reference only and do not in any
way modify, interpret or construe the intent of the parties or affect any of the
provisions of this Stock Option Agreement.


       Remainder of Page Intentionally Left Blank. Signature Page Follows.

                                        2

<PAGE>

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


                                  DCAP GROUP, INC.


                                  By: /s/ Morton L. Certilman
                                     ----------------------------------
                                     Morton L. Certilman, Secretary

                                  /s/ Barry Goldstein
                                  -------------------------------------
                                  Barry Goldstein

                                  P.O. Box 450
                                  Hewlett, New York  11557
                                  -------------------------------------
                                  Address

                                  (516) 374-4484
                                  -------------------------------------
                                  Fax Number

                                        3

<PAGE>


</TEXT>
</DOCUMENT>
