Carla R. Walworth(CW-5401)Cynthia A.Curtin

JUDGECROTTY

PAUL, HASTINGS, JANOFSKY & WALKER LLP 75East55thStreet

New York, NewYorkTelephone:212-318-6000

Facsimile:

UNITEDSTATESDISTRICTCOURTSOUTHERN DISTRICT OF NEWYORK

CV2231

·.

Civil ActionNo.

Complaint

COMPLAINT

Capital One, National Association,by its attorneys Paul, Hastings, JanofskyWalkerLLP, hereby files its Complaint, and states as follows:

INTRODUCTION

1.Plaintiff Capital One, National Association, ("Capital One" or"Bank")bringsthisactiontorecoverapproximately$370,141.75owedtoitbyJacobFrydman("Frydman"), under a credit account agreement and guaranty. Frydman borrowed moneyandreceived other financial accommodations from Capital One, and Frydman promised topaycertain amounts, including principal and interest, totaling $370,141.75, on the conditionsset

forththerein.Inaddition,inordertoinduceCapitalOnetoextendorcontinuetoextendcreditor otherfinancialaccommodations,FrydmanexecutedaguarantyunconditionallyguaranteeinghisobligationstotheBank.Frydmanhasdefaultedonhisobligations.AlthoughCapitalOnepromptly provided Frydman with a Demand Letter notifying him of his default, Frydman hasnotpaidCapitalOne theoutstandingbalanceowed.Therefore,CapitalOnebringsthisactionforbreachofcontract,amongotherclaims,inordertorecoverthedebtowedtoitbyFrydman.

Parties

2.Plaintiff Capital One is a national bank with its principal place ofbusinesslocated at 1680 Capital One Drive, McLean, Virginia 22102. Capital One is a successor bymergerto NorthForkBank("NorthFork"),whichmergedwithandintoCapitalOne,N.A.onor about August 1,2007.

3.On information and belief, Defendant and Interpleader DefendantJacobFrydman ("Frydman") is a New York resident, residing at 40 Fulton Street, Floor 6, NewYork,NY10038.

Jurisdiction andVenue

4.This Court has jurisdiction over the subject matter of this actionpursuantto 28 U.S.C. §1332 because (i) complete diversity of citizenship exists between the parties;and

(ii) the amount in controversy exceeds $75,000.00 exclusive of interest and costs.

5.Venue in this District is proper under 28 U.S.C. § 1391 because Frydman

is subject to personal jurisdiction in this District and the events at issue occurred in thisvenue.Thus venue is not inconvenient for the parties.

Count 1

(Breach of Contract Under the Restated Elite Agreement and the EliteGuarantyAgainst Defendant Frydman)

B.The Restated EliteAgreement

6.On or about October 29, 2004, pursuant to a credit account agreementbyand between North Fork and Frydman, Capital One agreed to make available to Frydman alineofcredituptotheaggregateamountof$100,000.00asevidencedbyanElitePlusCreditAccount Agreement, dated October 29, 2004 (the "Elite Agreement"). The Elite Agreement isattached hereto as Exhibit1.

7.On or about January 9, 2008, defendant Frydman executed theRestatedElite Plus Credit Account Agreement, (the "Restated Elite Agreement"), by and between NorthFork and Frydman, increasing the maximum credit limit available to Frydman under theRestatedEliteAgreementtotheaggregateamountof$450,000.00.Byitsterms,theEliteAgreementwasreplaced,superseded,andmodifiedbytheRestatedEliteAgreement. AcopyoftheRestatedElite Agreement is attached hereto as Exhibit2.

8.Under the terms and conditions of the Restated Elite Agreement,Frydmanborrowed money and received other financial accommodations from plaintiff Bank,and

Frydman promised to pay the principal amount plus interest thereon from the date thereofas providedtherein.

9.Pursuant to the Paragraph "Method of Payment" of the RestatedElite Agreement, Frydman was required to make monthly payments equal to the sum of (a) 1/601of

thethenunpaidprincipalbalanceattheendofthestatementperiodor$200,whicheverisgreater,plus(b)anyamountloanedoverthecreditlimit,plus(c)allinterestatarateprovided

therein (North Fork's prime rate plus 1.0%), plus (d) late charges and (e) any unpaidpriorminimum payment. Exhibit 2 at1.

10.Pursuant to the paragraph "Entire Balance Due/Default" of theRestatedEliteAgreement,uponaneventofdefault,asprescribedintheRestatedEliteAgreement(the"RestatedEliteAgreementEventsofDefault"),theBankmaydeclaretheentireunpaidbalancedue and payable . Exhibit 2 at2.

11.Among the other Restated Elite Agreement Events of Default, theBankmay declare the entire unpaid balance due and payable upon the happening of the (i) failureto

pay any amount required by the Restated Elite Agreement when due, or failure to havesufficient fundsinthedemanddepositaccounttopermitautomaticdebitofanyamountdue;(ii)failuretomake any other payment to the Bank when due and (iii) the occurrence of default under any

instrument or agreement, whether direct or contingent, for the payment of money. Exhibit 2at2.

12.Pursuant to the paragraph "Interest Rate" of the Restated EliteAgreement, fromandaftertheoccurrenceofanEventofDefault,theinterestratepayableincreasestofivepercent (5%) over the then applicable interest rate under the Restated Elite Agreement. Exhibit 2at1.

13.Pursuant to the paragraph "Late Charges" of the Restated Elite Agreement, if there are insufficient funds in the demand deposit account, or a minimummonthly

payment is not paid when due, Frydman will pay a late charges of four percent (4%) of the

payment due plus the applicable overdraft charge. Exhibit 2 at 1.

14.In order to induce plaintiff bank from time to time, in its discretion, to

extend or continue credit or other financial accommodations to Frydman, defendant Frydman

jexecuted and delivered to the Bank that certain Guaranty dated July 19, 2004 (the "Elite

Guaranty"), in connection with an Elite Plus Credit Application. The Elite Guaranty

iunconditionallyguaranteedthepaymentobligationsofFrydmantoplaintiffBank,includingbut

notlimitedtoloans,interest,latecharge,feesandattorney'sfees. AcopyoftheEliteGuaranty

iisattachedheretoasExhibit3.

15.On July 29, 2010 ,Frydman failed to pay the monthly payment dueunder

ltheRestatedEliteAgreement,andfailedtopaymonthlypaymentsduethereafter.

116.As of July 29, 2010, Frydman has defaulted and remains in default of the

fobligation to pay Capital One on all amounts due under the Restated Elite Agreement, including

Ibut not limited to, all interest and associated commissions, fees, expenses and costs. By letter

ldatedNovember22,2010,plaintiffBankmadeademandforpaymentonFrydmanforthe

Iamounts owing under the Restated Elite Agreement and the Elite Guaranty (the "Elite DemandLetter"). Pursuant to the Elite Demand Letter, plaintiff Bank declared the entire unpaid balance

ofprincipalandinterest,andallotheramountspayableundertheRestatedEliteAgreementimmediately due and payable . A copy of the Elite Demand Letter is attached hereto as Exhibit 4.

C.Breach of the Restated Elite Agreement and the EliteGuaranty

17.To date, Frydman has not paid the outstanding principal balance oftheRestated EliteAgreement.

18.Frydman has breached the Restated Elite Agreement, for thosereasons statedabove,includingbutnotlimitedtothefailuretocomplywiththeobligationsundertheRestated Elite Agreement to pay to Capital One the full amount of the unpaid principal inthe amount of $370, 141.75 together with interest and all associated commissions, fees,expenses,

andcosts,whichbecamedueandpayableondemandfromCapitalOne.Ascheduleshowingthe calculationoftheamountsofprincipal,interestandlatechargesdueasofMarch31,2011underthe Restated Elite Agreement is attached hereto as Exhibit 5.

19.Frydman' s breach of contract has resulted in damages to Capital One inanamount to be determined at trial, which is far in excess of the jurisdictional amount of thisCourt.

20.Pursuant to the paragraph "Collection Costs" of the RestatedEliteAgreement, Frydman agreed to pay the Bank's attorney's fees in the event that the Bankretains

counsel with respect to enforcement of the Restated EliteAgreement.

21.Capital One has incurred and continues to incur costs andexpenses,including fees and disbursements of in-house and outside counsel, to enforce theobligationsunder theAgreement.

•j

_1,_!

above.

Count2

(Estoppel AgainstFrydman)

22.CapitalOnerepeatsandreallegeseachandeveryallegationassetforth

23.In entering into the transactions at issue, Capital One relied directlyupon

the express representations of Frydman with regard to the Restated Elite Agreement and theEliteGuaranty (the"Agreements").

24.Frydman entered into the Agreements with full knowledge of CapitalOne'srelianceuponhisrepresentationsthereinand,indeed,madesuchrepresentationstoinduceCapital One to relythereon.

25.Capital One has been injured as a direct and proximate resultofFrydman's failure to honor the express representations in theAgreements.

26.Based upon the foregoing, Frydman is now estopped from disputingthe representations and promises in theAgreements.

Count3

{UniustEnrichment and Quantum Meruit Against Frydman)

27.CapitalOnerepeatsandreallegeseachandeveryallegationassetforth

above.

28.As a result of Frydman's conduct as set forth above, Frydman hasbeenunjustlyenriched.

29.Capital One is entitled to recovery under the doctrines ofquasi-contract, quantum meruit and unjustenrichment.

WHEREFORE, Plaintiff Capital One respectfully requests that this Court enter

judgment in its favor and against Frydman asfollows:

(a)On the First Count, a judgment against Frydman in the amountto

be determined at trial, including all damages sustained, rights and remedies available as provided

under the Restated Elite Agreement and the Elite Guaranty, costs and expenses incurred in this

action, including attorney's fees, and any other expenses, and all interest on the damages

jsustainedasaresultofthebreach,onallcommissions,costs,andexpensesapplicableunderthe

Restated Elite Agreement and the Elite Guaranty, and related documents and on all attorney's

Ifeesincurredinenforcingitsrightsassetforththerein;

(b) OntheSecondCount,ajudgmentagainstFrydmanintheamount

to be determined at trial, including all damages sustained, rights and remedies, reasonable costs

and expenses incurred in this action, including attorney's fees, and any other expenses;

J(c) On the Third Count, a judgment against Frydman in the amount toI bedeterminedattrial,includingalldamagessustained,rightsandremedies,reasonablecostsandf

!expensesincurredinthisaction,includingattorney'sfees,andanyotherexpenses;

l(d) The costs and disbursements as taxed by the Clerk of the Court;

-and

-I

(e)Awarding Capital One such other and further relief as the Courtmay deem just and proper under the circumstances.

Dated: New York, NewYorkMarch 31,2011

LEGAL_US_E #92289559.1

75East55thStreetNew York, NewYork

Telephone:212-318-6000

Facsimile:

ATTORNEYS FOR PLAINTIFFCAPITAL ONE, NATIONAL ASSOCIATION

0759022881

Account No.:759022881Name: Jacob FrydmanAddress: 111FultonStreet

New York, NY10038

NORTH FORKBANK

RESTATED ELITE PLUS CREDIT ACCOUNT AGREEMENT

Date: October 29,2004Credit Limit: Sl00,000.00

Demand Deposit Account No.: 9054020038

DEFINITIONS:

The words "you" and "yow''mean eachand all persons whosubmittedtheapplicationfortheaccountandwhoare boundbythisEliteCreditAccountAgreement. Theword "the Bank" means North Fork Bank its successors and assigns. The word "Agreement" meaus this Elite Credit AccountAeement. Theword"LoanAccount"meansthe Elite Credit Loan Account established pursuant to the termsofthisAgreement.

EFFECTOFUSINGLOANACCOUNT:

Whenyouusethisaccount,youareagreeingtoandwillbebolllldbythetermsandconditionsofthisAgreement.YoucertifythatallinformationyougavetheBanlctoobtaintheLoanAccountistrueandcorrect.Eachpersonwhosignedtheapplicationforthisacco\Ultwillbeindividuallyandjointly responsible for all amounts due on theLoanAccount.

METHODOFUSEANDLIMITATIONS:

TheBankwillsupplyyouwithEliteCreditAccountdrafts.So long as no Event of Default, as defined herein,basoccurredandthisAgreementhasnotbeencancelled,youmay obtain loans for yourself up to your credit limitbywriting drafts on the Loan Account. Drafts must thenbedepositedtoyourdemanddepositaccountindicatedabove.The Bank will supply you with twelve (12) drafts atnocharge.Youmustpayfordraftsinexcessoftwelve(12). Youmustpayafeeof$150.00peryearforeachyearorpartofayearthisAgreementisineffect.

MAXIMUMCREDIT:

Your credit limit is shown above and will be shownoneach monthly statement which the Bank will sendyou.You are not permitted to exceed your credit limit. TheBankmaychangeyourcreditlimitupordownatanytimeby giving notice in writing to you. If you write adraftwhich would cause the unpaid principal balance inyourLoanAccounttoexceedyourcreditlimit,theBankmayeitherrefusetohonoryourdraftormayhonoryourdraftandmalceyoualoaninexcessofyourcreditlimit.Anysuch loan together with interest must berepaidimmediatelyupondemandoftheBank.

PROMISE TOPAY:

Youpromise topaytotheorderoftheBankallamountsowed under this Agreement, plus interest, collectioncosts,(including,withoutlimitingattorneyfeespermittedunderthisagreement)andallotheramountsdue.PaymentwillbemadeassetforthinthisAgreement.

PERIODICSTATEMENT:

EachmonththeBankwillsendyouastatementonyourElite Credit Account. This statement will listall transactionsthatyoumadeintheLoanAccountduringtheprevious month. It will show what you haveborrowed,whatyouhaverepaid,itemscreditedanddebitedandwhatyou owe (new balance). It will also show interestrate

changes. This statement shall be deemed to beaccurateunlessyoureportanyerrorstotheBanlcwithinsixty(60)daysofthestatementdate.

METHOD OFPAYMENT:

The"minimummonthlypayment"(asdefinedherein)will be debited from your demand deposit account with the Bankwhendue. Youagreetohavesufficientfundsin.your demand deposit account to pennit such debits without creatinganoverdraft. Your"minimummonthly payment" is equal to thesumof (a) l/601h of the unpaid principal balance as of the end of the statement period or $200, whichever isgreater,plus(b)anyamountloanedoveryour credit limit,plus (c)all interest due ascomputed below, plus(d}alllatecharges,plus(e)anyunpaidpriorminimum payment. Notwithstanding theforegoing,youmaypaythe entireamount owed(plusinteresttothedateofpayment) infullatanytime.

PAYMENT-TIMEANDAPPLICATION:

There must be sufficient funds in your demanddepositaccountsothattheminimumpaymentmaybedebitedbythe Bank on the 29th day of each month. This isthe"paymentduedate".Eachmonth'spaymentwillbe appliedinthefollowingorder:(1)Interest;(2)Principal;(3)Latechargesandotherfees.Youmaymakepre-paymentsatanytimeinwholeorinpart.Prepayments willbeappliedfirstto principal, nellt to interest, and the remainder tolatecharges.

LATECHARGES:

If there are insufficient funds in your demanddepositaccount to malce the required minimum monthlypaymentwhendue,youwillpayalatefeeof4%ofthepaymentdueplustheapplicableoverdraftcharge.

INTERESTRATE:

Interest is payable at a rate equal to 1.00 % abovetheBank'sPrimeRate,adjustedasandwhensuchPrimeRatechanges. The Bank's Prime Rate is not necessarilythelowest rate charged to its customers and nothinghereinshallpreventtheBankfromlendingatlessthanitsPrimeRate. Interest shall be calculated on a daily basis ontheaveragedailybalanceofyourLoanAccountandshallbebasedupontheactualnwnberofdayselapsedanda360-day year. From and after the occurrence of an Eventof Defaulthereunder,theinterestratepayablehereundershallbeincreasedby5%overthethenapplicableinterestrate.IfalawwhichappliestothisLoanAccountandwhichsetsmaximum loan charges is finally interpreted so thattheinterestorotherloanchargescollectedortobecollectedin connection with your Loan Acco\Ultellceed thepermittedlimits, then (i) any such loan charges shall be reducedbythe . amountnecessto reduce the charges tothepermittedlimit;and{ii)anysumsaheadycollectedwhichexceeded permitted limits will be refunded. YoumaychoosetotakethisrefundbyacceptingareductionintheprincipalowedunderthisAgreementorbytakingadirect

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payment. If a refund reduces principal, the reductionwillbetreatedasapartialpayment.

CHANGESININTERESTRATE:

TheinterestratesetforthaboveisbasedupontheBank'sreview of yoW' fmanciaJ condition (and that ofanyguarantors) and the deposit relationship with theBank.TheBankmayhereafterchangeyourinterestrateonthirtydayswrittennoticetoyou.Anychangewillbeeffectiveimmediatelyandwillapplytoallamountsthenoutstandingandanyamowitsincurredthereafter.

ENTIRE BALANCEDUE/DEFAULT:

You will be in default, and the Bank need not permitanyfurtherdrawsagainstyourLoanAccountandmayrequirethatyoupayeverythingthatyouowetoitifoneormoreofthe following occur (each such event being referred toasan"EventofDefault"):(1)Youfailtomakeanypaymentrequired hereunder when due or fail to havesufficientfundsinyourdemanddepositaccounttopennitautomaticdebit of any amount due; (2) you or any guarantor failtomake anyotherpaymenttotheBankwhendue;(3)youorany guarantor default under any instrument oragreement,whetherdirectorcontingent,forthepaymentofmoney;(4)you fail to comply with any other tenn, covenant,orcondition contamed in this Agreement; (5) anyrepresentation or warranty made in this Agreement oranyinstrument, document, or certificate, furnished by youoranyguarantorinconnectionwiththisAgreementisfalseormisleading; (6) a petition in bankruptcy is filed byoragainstyouoranyguarantor;(7)anactionorproceedingis commenced by or against you or any guarantorseekingdissolution,liquidation,composition,orarrangementortheappointment of a receiver; (8) you or any guarantoradmitinwritinganinabilitytopaydebtsastheymature,makeageneral assignment for the benefit of creditors, failtomaintain a satisfactory fmancial condition in a mannerinwhich the Bank reasonably believes is necessary torepaythe Loan Account; (9) a judgment or other judicialoradministrative detennination requiring the paymentofmoney is entered against you or any guarantor, ( 10)theguarantyofanyguarantortenninatesorisU11Cnforceableforanyreasonsuchasaguarantordies;(11)yourassetsorthose of any guarantor are pledged or become lienedorimpairedsuchthattheBankbelievesyourabilityorthatof

anyguarantor torepay theLoanAccountisimpaired;(12)youoranyguarantorbecomesdisabledordies;(13)youoranyguarantorfailtofurnishanyfinancialinfonnationorfinancial statements to the Bank or fail to permitaninspectionofbooks,recordsorpropertybytheBankoritsagents;(14)yougrantorcausetoexistasecurityinterestinanyofyourassets,exceptthatoftheBank;(15)youfailtousetheBankasyourprimaryBankfordepositsandloans;

(16)youfailtopayanytaxassessmentwhendue;or(17) theBanltdeterminesingoodfaiththatitwillnotberepaidherewideraccordingtothetermsofthisAgreement.

COVENANTSIREPRESlNTATIONS/WARRANTIES

Youherebycovenant,represent,andwarrantasfollows(whichrepresentationsandwarranties aretrueasofthedate hereof and shall be true on the date of anydraftagainst the Loan Account): (a) upon request youwillfurnish the Bank a copy of your personalfinancialstatement,aswellasthepersonalfinancialstatementsoftheguarantors,allinformandsubstanceacceptabletotheBank; (b) upon request, you will furnish the Bankwithcopiesofthesignedtaxreturns(withschedules)filedbyyouoranyofyourguarantorsforthepastthree(3)years

andthroughoutthetermofthisAgreement;(c)youhavefullpowerandauthoritytoenterintothisAgreement,andnothinginthisAgreementcontravenesanylaw,regulation,by-laworcontractualobligationbindinguponyouandyouwillfurnishproofofsametotheBank;(d)thisAgreementconstitutes your valid and legally binding obligationinaccordancewithitstermsandhasbeenfullyauthorizedbyallnecessary action;(e)therearenopendingnor,tothebest of your knowledge, any threatened actionsorproceedings before any court or administrativeagencywhich,ifdetenninedagainstyou,(oranyguarantor)wouldhaveamaterialadverseeffectonyour(oranyguarantor's)financialcondition,operations,orabilitytorepay;(f)thereportsandinfonnationfurnishedbyyouandallsuarantorsaretrueandaccurateinallmaterialrespects;(g)youwillmaintainyourprincipaldemanddepositaccountwiththeBank;(h)youwillkeepyourassetsinsuredagainsttheftanddestruction;(i)youwillpennittheBanktoexamineyourbooksandrecords,andaudityourinventory.

RIGHT OFOFFSET:

UpontheoccurrenceofanEventofDefault,theBankmaytakeanyamountyouhaveondepositwithitoranyaffiliateoftheBankandapplyittowardtheamountduewithoutlimitingtheforegomg,theBankmayexceriseanyandallrightsofoffsetitmayhavepursuanttostatuteandconunonlaw.

SECURITYINTEREST:

As collateral security for all of your obligationsandliabilities to the Bank, rou grant the Bank acontinuingsecurityinterestinandlienonthefollowingproperty:AllmoneyorotherpropertyintheBank'spossession,whethernow held or later coming into the Bank'spossessionwhether on deposit or in safekeeping, custody,pledge,transmission,collectionorotherwiseforyouraccountortoyourcreditorbelongingtoyouorinwhichyoumayhavean interest, including but not limited to allproceeds,products, replacements, renewals, substitutions,msuranceproceeds,presentorfuture,withrespecttotheforegoing,(all of which property above is called"CollateralSecurity"). Your obligations and liabilities to theBank(whichwillbecalled"Liabilities"),meanallamountsdueto the Bank from you of any nature, including, butnotlimitedto,amountsdueunderthisAgreementwhethertheyalreadyexist,areincurredatthistime,orareincurredinthefuture,whethertheyaredirectorindirect,whether theyare absolute or contingent, whether they are securedorunsecured, whether tliey are matured orunmatured,whether therwere incurred by you alone or jointlyorseverally Wlth others or whether they wereoriginallycontracted with the Bank or others and are now orlaterowingtotheBank.

REMEDIES UNDERDEFAULT:

UpontheoccurrenceofanEventofDefaulttheBankshallhaveinadditiontoanyotherrightorremedygrantedunderthis Agreement or by law, the right of a securedpartyunder the Uniform Commercial Code. All rightsandremedies oftheBankshallbecumulative andnotmutuallyexclusiveandmaybeobtainedsinglyortogetheratanytimeortimes.Suchrightsandremediesshallalsoinclude,but not be limited to, the following: (a) the Bankmaytransfer into or out of their own name or that ofitsdesignee any or all of the Collateral Securityincludingstock, bonds and other securities and the Bank oritlldesignees may demand, sue for, collect, reserve, andholdaslikeCollateralSecurityanyorallinterest.dividendsand

ecaplusunsec.doc9/01

.....

incometherefromandexerciseallvotingandotherrightswithrespectthereto;(b)theBankshallnotbeobligatedtodemandpayment-o(protest,ortakeanystepstopreserveanyrightsinsuchCollateralSecurity,allofwhichremainyourobligation;(c)theBankmaysellanyorallCollateralSecuritywithoutnoticetoyou(exceptwhererequiredbylaw,inwhichcaseSdaysnoticebyordinarymailshallbedeemedreasonablenotice)atpublicorprivatesaleatsuchpriceanduponsuchtennsasitdeem.1advisable;(d)theBankshallhavetherighttobidandpurchaseatanysuchsale;(e)theproceedsofanysuchsaleshallfirstbeappliedtothecosts,expenses,andattorneyfeesinconnectionwiththe sale, and the remainder to the Liabilities insuchmanner as the Bank shall determine; (f) you andanyguarantorandanyotherobligorshallremainliableforanydeficiency; (g) the Bank need not liquidateCollateralSecuritybeforeseekingpaymentfromyouoranyguarantororanyotherobligorontheliabilities;(h)theBank.isauthorizedtotakepossessionoftheCollateralSecurityandmayenteranypremiseswheresuchCollateralSecurityislocated and remove same, (i) you will assembletheCollateral Security and make it available to the Bankatsuch place and time as the Bank may designate; (j)theBank may notify any account debtor to make paymentsto

''PERIODICREVIEW:

TheBankwillreviewyourhandlingoftheLoanAccountandyourcreditonaperiodicbasis.YoumustsupplyallfinancialstatementsandtaxreturnsrequestedbytheBank.Based upon the review, the Bank may decreaseortenninatetheLoanAccountandthisAgreement.

MISCELLANEOUS:

(a)YouagreethatamicrofilmorotherphotographiccopyofaninstrumentordocmnentusedinconnectionwiththeElite CreditAccountwillestablishtheamountyouowe;(b)youpermittheBanktoorderacreditreportorconsumerreport and to receive, obtain, and exchangecreditinformation on you and any guarantor. The willtellyou upon request whether or not a consumer reportwasreported,and,ifso,thenameandaddressoftheconsumerreportingagency;(c)youagreethattheBankmayacceptlate or partial payments, as well as payments thataremarked "paid in full" or contain otherrestrictiveendorsements, without losing any rights underthiAgreement;(d)youagreenottodrawontheLoanAccountexceptbyuseofEliteCreditAccountdraftsprovidedby

l

theBank.

CANCELLATION:

EitheryouortheBankmaycancelthisAgreementatany

timeby giving written notice to the other. Even if the

theBank;(e)you agreetopayforcopiesandotherEliteCreditAccountandcheckrelatedservicesaccortotheBank'sscheduleoffees,asamendedfromtimetotime;(f)you agree that this Agreement shall be governed by the

laws of the State of New Yorlc without regard toits

Agreementiscanceled,youmuststillpaytheBankwhatyouowe.Intheeventofcancellation,youmaynolongerwrite drafts against the Loan Account. If no EventofDefaulthasoccurredoroccurs,youmaypaytheamount

duehereunderbymakingthirty-sixmonthlypaymentseach

conflictsoflawsrules;(g)youconsenttothejurisdictionoftheCourtoftheStateofNewYorkandvenueinSuffolkCounty,NewYork;(h)youandtheBankwaivetherighttotrial by jury; (i) you waive demand, presentment, and

protest;G)youwaivealldefenses,rightstosetoffandthe

I

consisting of l/36th of the principal balance outstandingatthe time of cancellation plus interest at the rate oftheBank'sPrimeRateplus21/2%perannum,adjustedasandwhen the Bank's Prime Rate changes on the unpaid

balance. The monthly payments may not be equalin

righttoimposeanycounterclaimsinanyelectionbroughtby the Bank (although you may assert such claims inaseparate lawsuit); (k) you agree that thisAgreementrepresentstheentireunderstandingbetweenyouandthe

Bank and may not be modified or tenninated orallyand

l

amount.

COLLECTION COSTS:

Ifyou donotpaytheBankwhatyouoweand theBanksends the matter to an attomey for collection, thenyouagreetopayareasonableattorney'sfeeupto20%ofthe

amount owed, plus court costs and disbursements,

that all waivers by the Bank must be in writing; (1)theBank has made no representations, warranties,oragreement except as set forth herein; (m) you maynotassignortransferyourrightsunderthisAgreement;(n)ifthisAw.cementappliestomorethanoneofyou,noticetoonewillbeconsiderednoticetoallofyou;(o)youagree

that you have received the fully completed copy ofthis

court,orotherwise.

remaindershallremaininfullforceandeffect. I

regardlessofwhetheranactioniscommencedand,ifso,

whetherin the trial court, appellate court, bankruptcy

Agreementandhavereaditandfullyunderstandit;(p)if

any provision of this Agreement is unenforceable, the

DELAY lNENFORCEMENT/WAJVER:

The Bank does not give up any of its rights bynotenforcing them right away. The Bank may enforceorwaive any right with respect to you or anyguarantorwithoutwaivingitastoanyotherpartyorguarantor.TheBankneednotgiveanyonenoticeofanywaiver,delayorrelease.Yourobligationsandthoseofanyguarantorsarenot affected by the Bahk's release of any partyorguarantor,releasinganysecurityorcollateral,orextendingormodifyinganyobligationhereunder.

CHANGES:

TheBank maychange thisAgreement at anytime. If itdoes,you willbetol3inwritingatyouraddressshownin itsrecords. Unlessyou telltheBankinwriting tocancel this Aeement within fifteen (15) days after the Bank's transnussionofnotice,allchangeswillbecomebindingon you.

OTHERPROVISIONS:

3ecaplusunsec.doc9/01

NORTH FORKBANK

RESTATED ELITE PLUS CREDIT ACCOUNT AGREEMENT

AccountNo.: 759022881 Name: JACOBFRYDMAN Address: 80DONALDDRIVE

HASTINGSONHUDSON,NY10706

DEFINITIONS:

The words ''you" and "your" mean each and allpersonswhosubmittedtheapplicationfortheaccountandwhoareboundbythisEliteCreditAccountAgreementTheword"the Bank" means North Fork Bank its successorsandassigns. The word "Agreement" means this EliteCreditAccountAr,rnent.Theword"LoanAccount"meanstheElite Credit Loan Account established pursuant tothetennsofthisAgreement.

EFFECTOFUSINGLOANACCOUNT:

Whenyouusethisaccount,youareagreeingtoandwillbeboundbythetennsandconditionsofthisAgreement.YoucertifythatallinfonnationyougavetheBanktoobtaintheLoanAccountistrueandcorrectEachpersonwhosigned the application for this account will be individuallyandjointly responsible for all amounts due on theLoanAccount.