In Re National Service Lines, Inc. of New Jersey

MEMORANDUM OPINION

DAVID P. McDONALD, Bankruptcy Judge.

FINDINGS OF FACT(1) Jerry Juenger and Elmer Tonsing at one time were stockholders of National Service Lines, Inc. (“National”). A dispute arose between them and National resulting in state court litigation which was resolved by an agreement executed April 6, 1984, styled “Agreement and Security Agreement” (the “Agreement”).(2) Paragraph 10 of the Agreement states:

“10. Security for Payment. As evidence of the sums payable herein, NSL agrees to execute and to deliver four (4) separate Promissory Notes, two each to Tonsing and Juenger, one…