Loading...
HomeMy WebLinkAbout03-5612IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MD NATURALS, LTD. Plaintiff V. RITE AID CORPORATION Defendant Case No. ~)3 CIVIL ACTION - LAW JURY TRIAL DEMANDED NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint is served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in th9 Complaint or for any other claim or relief requested by the Plaintiff YOU MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IMPORTANT TO YOU. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE OR KNOW A LAWYER, THEN YOU SHOULD GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Lawyer Referral Service Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 717-249-3166 1-800-900-9108 IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. MidPenn Legal Services 8 Irvine Row Carlisle, PA 17013 717-243 -9400 1-800-822-5288 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MD NATURALS, LTD. Plaintiff V. RITE AID CORPORATION Defendant Case No. CIVIL ACTION - LAW JURY TRIAL DEMANDED AVISO USTED HA SIDO DEMANDADO EN LA CORTE. Si usted desea defenderse de las quejas expuestas en las pfiginas siguientes, debe tomar acci6n dentro de veinte (20) dias a partir de la fecha en que recibi6 la demanda y el aviso. Usted debe presentar comparecencia escrita en persona o por abogado y presentar en la Corte por escrito sus defemsas o sus objeciones a las demandas em su contra. Se le avisa que si no se defiende, el caso puede proceder sin usted y la Corte puede decidir en su contra sin mas aviso o notificaci6n por cualquier dinero reclamado en la demanda o por cualquier otra queja o compensaci6n reclamados por el Demandante. USTED PUEDE PERDER DINERO, O PROPIEDADES U OTROS DERECHOS IMPORTANTES PARA USTED. LLEVE ESTA DEMANDA A UN ABOGADO IMMEDIATAMENTE. SI USTED NO TIENE O NO CONOCE UN ABOGADO, VAYA O LLAME A LA OFICINA EN LA DIRECCION ESCRITA ABAJO PARA AVERIGUAR DONDE PUEDE OBTENER ASISTENCIA LEGAL. Lawyer Referral Service Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 717-249-3166 1-800-900-9108 SI USTED NO PUEDE PAGARLE A UN ABOGADO, I~STA OFICINA PUEDE PROVEERI~ INFORMATION ACERCA AGENCIAS QUE PUEDAN OFRECER SERVICIOS LEGAL A PERSONAS ELIGIBLE AQ UN HONORARIO REDUCIDO O GRATIS. MidPenn Legal Services 8 Irvine Row Carlisle, PA 17013 717-243-9400 1-800-822-5288 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MD NATURALS, LTD. : : Plaintiff : V. -' : RITE AID CORPORATION : : Defendant : CIVIL ACTION - LAW JURY TRIAL DEMANDED COMPLAINT MD Naturals, LTD (hereinafter "MD Naturals") by its attorneys, John L. Senft, James E. Chiaruttini, and the law finn of Barley, Snyder, Senft, & Cohen, LLC, files the following Complaint against Rite Aid Corporation (hereinafter "Rite Aid"): 1. MD Naturals is a registered Maryland Corporation with its principal place of business located at 6008 Avon Drive, Bethesda, Maryland 20814. 2. Rite Aid conducts regular business in numerous states, including Maryland and the Commonwealth of Pennsylvania. 3. Rite Aid is registered in the Commonwealth of Pennsylvania as a foreign business entity and maintains a principal place of business in Pennsylvania of 30 Hunter Lane, Camp Hill, PA 17011. 4. Jurisdiction is proper because the parties agreed that any lawsuits would be governed by Pennsylvania law and that the venue for any such conflicts and lawsuits would be Cumberland County, Pennsylvania. COUNT ONE (Breach of Contract) 5. MD Naturals incorporates by reference the allegations contained in all preceding paragraphs of this Complaint with the same effect as if fully set forth herein. 6. MD Naturals incorporates the "Guaranteed Sales Agreement" of the parties, a true and correct copy of which is attached hereto as Exhibit A. 7. On or about July 8, 2002, Rite Aid entered into an agreement with MD Naturals, whereby Rite Aid agreed to purchase and sell a dietary aid manufactured and sold by MD Naturals. See Exhibit A, attached. 8. Paragraph 2 of the "Guaranteed Sales Agreement" provides that there would be a 120-day review period in which Rite Aid would assess the performance of the MD Naturals product. See Exhibit A, attached. 9. Paragraph 2 of the "Guaranteed Sales Agreement" states that "[d]uring the review period, Rite Aid will pay only for those products that are actually sold...". 10. On November 25, 2002, Rite Aid placed its initial order in the amount of $108,000 worth of MD Naturals product, and MD Naturals delivered the requested amount to Rite Aid in a timely fashion. 11. In January, 2003; February, 2003; March, 2003; and April, 2003, Rite Aid placed additional orders with MD Naturals, which orders totaled more than $52,000 in product. The orders were timely delivered to Rite Aid. 12. Rite Aid acted in an outrageous manner by failing to pay any money to MD Naturals for any of the product that has been sold and is in breach of the parties' agreement. 13. Further, Rite Aid pursuant to the contract had an obligation to stock and advertise Plaintiffs product in 956 stores. Upon information and belief, Defendant failed to meet this Obligation, thereby breaching the contract and causing damages to the Plaintiff in the form of reduced sales, for which damages Rite Aid is liable. 14. Further, MD Naturals has paid Rite Aid advertisement fees and costs for the marketing of its product, as sold by Rite Aid, and Rite Aid has received the benefit of those fees 2 and costs. The averments set forth in Count II hereof are incorporated by reference into this Count I. 15. MD Naturals has at all times material h~eto complied with the agreements between the parties and fulfilled its obligations thereunder. 16. The prices and amounts charged by MD Naturals for its products were and are reasonable and are the prices agreed upon by the parties. 17. The specific amount of damages suffered by MD Naturals is not yet known, but the amount in controversy exceeds the applicable threshold for compulsory arbitration. WHEREFORE, MD Naturals demands judgment against Rite Aid for all amounts due for product sold, lost sales and profits, and for fees for advertising and promotional program, plus interest, costs and such other relief deemed appropriate by this Honorable Court. COUNT 'FWO (Unjust Enrichment) 18. MD Naturals incorporates by reference all allegations contained in the preceding paragraphs of this Complaint with the same effect as if fully set forth herein. 19. In addition to the "Guaranteed Sales Agreement" entered into between Rite Aid and MD Naturals, the parties also entered into a "Promotional Funding Agreement," which mandates MD Naturals' participation and contribution regarding Rite Aid's promotional and advertisement program. The "Promotional Funding Agreement" is attached hereto as Exhibit B and incorporated herein. 20. The "Promotional Funding Agreement" requires MD Naturals to contribute 5% of Rite Aid's gross purchases of MD Naturals' products for Rite Aid's fiscal year... (but not less than the minimum promotional funding commitment). 21. MD Naturals paid the 5% contribution amount of the "Promotional Funding Agreement", but has not received adequate and sufficient advertisement and promotion of its product from Rite Aid. 22. Rite Aid has been unjustly enriched by receiving, accepting, and benefiting from the 5% contribution from MD Naturals without providing adequate and sufficient advertising of the MD Naturals product pursuant to the parties' agreement. 23. The specific amount of damages are as yet unknown, but the collective claims of MD Naturals exceed the threshold for compulsory arbitration. WHEREFORE, MD Naturals demands judgment against Rite Aid in an unliquidated amount for all fees and costs paid for advertising and promotion, plus interest, costs, and such other relief as deemed proper by this Honorable Court. COUNT THREE (Breach of Contract) 24. MD Naturals incorporates by reference all allegations contained in the preceding paragraphs of this Complaint with the same effect as if fully set forth at length. 25. Pursuant to the "Promotional Funding Agreement" between the parties, Rite Aid was obligated to provide adequate and sufficient advertising and promotion of the MD Naturals product in exchange for the 5% contribution by MD Naturals to the advertising and promotional program. 26. Rite Aid has failed to provide adequate and sufficient advertising and promotion of the MD Naturals product pursuant to the agreement of the parties. 27. MD Naturals has at all times complied with its obligations pursuant to the parties' agreement conceming advertising and promotion. 4 28. promotion. 29. Rite Aid is in breach of the parties' agreement concerning advertising and MD Naturals has suffered damages due to lost sales and profits as a result of the inadequate and insufficient advertising and promotion. 30. The specific amount of damages are as yet unknown, but the collective claims of MD Naturals exceed the threshold for compulsory arbitration. WHEREFORE, MD Naturals demands judgment against Rite Aid in an unliquidated amount for lost sales and profits and for the fees and costs associated with advertising and promotion, plus interest, costs, and such other relief as deemed proper by this Honorable Court. COUNT FOUR (Unjust Enrichment) 31. MD Naturals incorporates by reference all allegations contained in the preceding paragraphs of this Complaint with the same effect as if fully set forth at length. 32. On or about November 25, 2002, Rite Aid placed an initial order pursuant to the parties' "Guaranteed Sales Agreament" for $108,000 worth of MD Naturals product, and MD Naturals delivered the requested amount to Rite Aid in a timely fashion. 33. In January, 2003; February, 2003; March, 2003; and April, 2003, Rite Aid placed additional orders with MD Naturals, which orders totaled more than $52,000 in product. The orders were timely delivered to Rite Aid. 34. Rite Aid has not paid any money to MD Naturals for any of the product that has been ordered and sold. 35. Rite Aid has been unjustly enriched by receiving and accepting the product from MD Naturals and benefiting therefrom without any payment or remuneration to MD Naturals. 5 36. The specific amount of damages are as yet unknown, but the collective claims of MD Naturals exceed the threshold for compulsory arbitration. WHEREFORE, MD Naturals demands judgment against Rite Aid for all amounts due for product sold by Rite Aid, plus interest, costs and such other relief deemed appropriate by this Honorable Court. COUNT FIVE (Conversion) 37. MD Naturals incorporates by reference all allegations contained in the preceding paragraphs of this Complaint with the same effect as if fully set forth herein. 38. Pursuant to the "Guaranteed Sales Agreement" between the parties, Rite Aid owes certain and significant monies to MD Naturals for any product supplied by MD Naturals that was thereafter sold by Rite Aid. 39. Rite Aid has received product from MD Naturals as ordered and pursuant to the parties' agreement, but has failed and refused to deliver and pay to MD Naturals the amounts properly due for product sold. 40. Rite Aid's continued use of and exercise of control over these monies that are the property of MD Naturals is unauthorized. 41. Rite Aid's unauthorized actions have and continue to deprive MD Naturals from the use and benefit of these monies. 42. Rite Aid's actions constitute conversion. 43. The specific amount of damages are as yet unknown, but the collective claims of MD Naturals exceed the threshold for compulsory arbitration. WHEREFORE, MD Naturals demands judgment against Rite Aid for all amounts due for product sold by Rite Aid, plus interest, costs, and such other relief as deemed proper by this Honorable Court. COUNT SIX {Promissory Estoppel) 44. MD Naturals incorporates by reference all allegations contained in the preceding paragraphs of this Complaint with the same effect as if fully set forth herein. 45. Rite Aid specifically agreed in Paragraph 2 of the "Guaranteed Sales Agreement" that during the 120-day review period, it would pay MD Naturals for all of the product(s) that were actually sold. See Exhibit A. 46. On November 25, 2002, Rite Aid placed its initial order in the amount of $108,000 worth of MD Naturals product, and MD Naturals delivered the requested amount to Rite Aid in a timely fashion. 47. In January, 2003; February, 2003; March, 2003; and April, 2003, Rite Aid placed additional orders with MD Naturals, totaling more than $52,000 in product. The orders were timely delivered to Rite Aid as agreed upon. 48. MD Naturals, pursuant to the Rite Aid Promotional Funding Agreement, contributed approximately 5% of Rite Aid's gross purchases for advertising; however, Rite Aid failed to advertise the MD Naturals product as agreed. 49. MD Naturals relied to its detriment on the promises made by Rite Aid. Rite Aid failed to make good on its promises. It was clearly foreseeable that MD Naturals would rely on the promises made by Rite Aid. 50. Rite Aid should be estopped from denying payment to MD Naturals. 51. The amount in controversy exceeds the applicable threshold for compulsory arbitration. WHEREFORE, MD Naturals demands judgment against the Defendant, Rite Aid Corporation in an unliquidated amount for product sold by Rite Aid and for fees paid for advertising and promotion, plus interest, costs, and any and all other relief which this Honorable Court finds it entitled. COUNT SEVEN (Intentional Misrepresentation) 52. MD Naturals incorporates by reference all allegations contained in the preceding paragraphs of this Complaint with the same effect as if fully set forth herein. 53. At the time of contracting, Rite Aid made specific representations to MD Naturals in Paragraph 2 of the "Guaranteed Sales Agreement," including but not limited to agreeing that Rite Aid would pay MD Naturals for all of the product sold. 54. MD Naturals in reliance on this agreement with Rite Aid supplied numerous orders of product to Rite Aid and thousands of dollars in additional product towards the advertising and promotional program. 55. Rite Aid intentionally made false representations, as it has failed to pay Rite Aid for any of the product supplied, as agreed to in the "Guaranteed Sales Agreement." 56. The representations by Rite Aid were made to induce MD Naturals to enter into the agreements with Rite Aid and were made with the knowledge and intent that MD Naturals would rely upon such representations. 57. Rite Aid's representations to MD Naturals were made with such a reckless disregard for the truth that knowledge of the falsity of the statements can be imputed to Rite 8 Aid. Such actions by Rite Aid constitutes outrageous conduct and a reckless disregard for the rights of MD Naturals. 58. MD Naturals relied upon the misrepresentations made by Rite Aid, delivered several orders of its product. 59. MD Naturals has suffered a financial strain and detriment as a result of Rite Aid's misrepresentations. 60. The amount in controversy exceeds the applicable amounts for compulsory arbitration. WHEREFORE, MD Naturals demands judgment against the Defendant, Rite Aid Corporation in an unliquidated amount for the fees and costs paid for advertising and promotion, the amount of the product supplied, plus interest, costs, punitive damages, and any and all other relief which this Honorable Court finds it entitled. COUNT EIGHT (Intentional Misrepresentation-Concealment and Non-Disclosure) 61. MD Naturals incorporates by reference all allegations contained in the preceding paragraphs of this Complaint with the same effect as if fully set forth herein. 62. MD Naturals relied to its detriment on the promises made by Rite Aid. Rite Aid intentionally did not make good on its promises. It was clearly foreseeable that MD Naturals would rely on the promises made by Rite Aid. 63. Rite Aid failed to disclose to MD Naturals, prior to making additional orders for product, that it did not plan to comply with Paragraph 2 of the "Guaranteed Sales Agreement," and to pay MD Naturals for all of the product sold to date. 64. MD Naturals. The actions of Rite Aid were outrageous and in reckless disregard for the rights of 9 65. The amount in controversy exceeds the applicable amount for compulsory arbitration. WHEREFORE~ MD Naturals demands judgment against the Defendant, Rite Aid Corporation in an unliquidated amount for product sold and fees and costs associated with the advertising and promotional program, plus interest, costs, punitive damages, and any and all other relief to which this Honorable Court finds it entitled. COUNT NINE (Ne§li§ent Misrepresenta[ion) 66. MD Naturals incorporates by reference the allegations contained in all preceding paragraphs of this Complaint with the same effect as if fully set forth herein. 67. Rite Aid had a duty to MD Naturals to convey and represent proper and accurate information as to its ability to pay for product and to advertise and promote the product pursuant to the agreements of the parties. 68. Rite Aid breached its duties to MD Naturals by not accurately representing or disclosing its ability to pay the amounts agreed upon for product sold and the extent of advertising for the MD Naturals product. 69. Rite Aid was therefore negligent in its representations to MD Naturals, which representations were relied upon by MD Naturals to its detriment. 70. Rite Aid negligently failed to make good on its promises. It was clearly foreseeable that MD Naturals would rely and on the promises made 71. The financial injuries to MD Naturals were the direct and/or proximate cause of the negligent misrepresentations of Rite Aid as to the agreements and business dealings between the parties. 10 72. The amount in controversy exceeds the applicable amount for compulsory arbitration. WHEREFORE, MD Naturals demands judgment against the Defendant, Rite Aid Corporation in an unliquidated amount for product sold and for the fees paid towards the advertising and promotional program, plus interest, costs, and any and all other relief which this Honorable Court finds it entitled. COUNT TEN (Unfair Competition) 73. MD Naturals incorporates by reference the allegations contained in all preceding paragraphs of this Complaint with, the same effect as if fully set forth herein. 74. Prior to delivering the MD Naturals Product to Rite Aid, MD Naturals spent a substantial amo~jnt of time, labor, and money in the creation of the dietary supplement delivered to Rite Aid. 75. Rite Aid aggressively advertised other dietary products including their own store brand dietary aids. Rite Aid did not aggressively advertise MD Naturals' products as agreed. 76. MD Naturals has suffered financially due to Rite Aid's failure to appropriately advertise MD Naturals' products alongside of the other dietary aids sold at the store. 77. The actions of Rite Aid were in contravention of the parties agreements and constitute unfair competition against MD Naturals. 78. The actions of Rite Aid were outrageous and in reckless disregard for the rights of MD Naturals and constitute conduct warranting the imposition of exemplary damages. 79. The amount in controversy exceeds the applicable amount for compulsory arbitration. 11 WHEREFORE, MD Naturals demands judgment against Rite Aid in an unliquidated amount for product sold and fees paid towards the advertising and promotional program, plus punitive damages, interest, costs, and any and all other relief which this Honorable Court finds it entitled. John ~L2 /ntt, Es'qzt~e ID #6~ James 6. Chiaruttini, Esquire ID # 82060 Barley, Snyder, Senft & Cohen, LLC 100 East Market Street York, PA 17401 717-846-8888 Attorneys for Plaintiff Co-counsel (Maryland): Thomas J. Whiteford, Esquire Nichole M. Hatcher, Esquire W'hiteford, Taylor & Preston, LLP 210 West Pennsylvania Avenue Towson, MD 21204-4515 410-832-2000 12 VERIFICATION I, Edward Levien, President of MD Naturals, Ltd., hereby verify that the facts set forth in the foregoing Complaint are tree and correct to the best of my knowledge, information and belief. To the extent that any of the averments in the foregoing document are based upon the understanding or application of law, I have relied upon counsel in making this Verification. This Verification is made subject to the pen~.S~4~ating to unswom falsification to authorities. Edwprd Levien, Presidefft MD [Naturals, Ltd. Dated: 10/07/2003 15:01 F.LI 410 $~2 208~ , {UL.. '2. 2002 .J:5?AM W,T.& P. NO, 036 P. 1 Rite Aid will c~rmidcr Vcndor'a pro&mt(s) for dis¢oution and sale under the tcrma and ctmditiorm eot fozth in this Agreement In consideati.on of Rite A~d's algeement to xwkW a new entry into its m~, u well as in condderetkn of the mutual premises contained herein, the patties agree as follows: Vand~ 'vtl]] ~ar~nt~ ~e aala o£¥elldor', produot(a) to Rite/Lid at bot~ L'~tl~tomer 8~ti~ Craters (i.e. distdbufitm ~t~) end tet~ 1, During the ~nt one hundred twenty (1:20) days, or ~.k other period a~ Rite ~ ~y determi~ in its sole disctet~tm (it bckg und~mtood by Yendm tht Rite Aid ~ tankage this Agre~cnt in its sola ~a~etitm at my ~ ~r any ~'~vhtsoevor) followin~ the date it-the Vmdor'a ~ ddlvery dprodu~.) te Ute.Aid (the "Review P~dod'~, V~d~'a ao~ount will. h on a review.tutus to pmntt ~ Aid'to mae. the peffor~vce ortho ptoduct(a)~:Ymin~ the Review Period, Rite ~a wm pv only fw . tho~ product(a) that are actually 9ola, and ~ AId's payment will l~e rcduccd by any and d] cash dlscotmts or other debit amounts (including, but not m~Uxl to, advci~IdnS, disphy~, markdow~ end p~d~e l~otecA/tm) due to Kite Aid. If a~ the end of the Review Pcrlod, Rite Aid determines, kits sole discretion, thal thc Vendor's prmhct(a) is not sellin~ BI an ata~pmbio rite, then Rite Aid w/ll have the right to (a) tequl~e Vendor ~o re-view a~l moaity Vendor'-- marketing plan lo ensure future suece, and (b) ~ttmd the du~ date of the original invoice subraitted by Vendor. Rite Aid also 1~ th~ risht to requtr~ a cash paymmt~ ~s d.dbed in paragraph (S) below. The foreljotn$ rights arcnet exclusive. At the end of the Review Pmied, Rite Aid may terminate .~t. Agre,nm~. pkes the Ve~dor tm Rite Aid's mxstomary paym~'nt umm. or extend the Kevtew Period as Rite Aid, in iL~ sole discretion, so dr. gres. If~ ~kv time Rite Aid determines in im adc diserction that V~aor'a ln'oduot(s) performance lxmtinu~ to be unacceptable, Rim Aid will have th~ ri~.ht to rems at Vendor's cxp~e ell unsold paoduct(s) to Vendor"s taoillty in rm~rn for Vendor's cash payment W Rite Aid for a~y prod~ots for which Pdte Aid has paid, but have not sold. Vendor's payment to Rik Aid shall be made (a) by wh-e trmaf= ofknm~liately aYallablc ~ds or g~-tificd ched~ and (b) no lair than fifteeli (15) days after Rite Aid has r~raed the I~rOdUOt(a). ~pon settlement ofVmdor'a aOoount~ all out3tmd~§ invoiec~ xvill be paid promptly, lc~e any and all cash dis~oums or other debit amounts due to Rite Aid, Thc ttmns and conditions of this ASreement ur~ in addillon to, and hi no way limit, 1~ Aid*s ~ told ramedlei ~der Rite Aid's Vendor P~file, standard tums -~,! conditions or purchase orders. In the ~cnt ofincomdst~n~F b~wem g~e i~rms and 10/07/2003 15:01 FAX 410 832 208~ W.T.& P, ., NO. 035 P. ~ cO~litiom of the A~'~t md any of/he forego/n8 docmnmts, this Agreement conffi~t o£hws provisions. Any lawsuit brought with ~esard M ibis Ouanmt _ _~,~_ Sales A~rOenl~t wi~lbe venued in the Court oi'~-mon Ple~a~ C~mb~antt Co~mty, The ps. les spee. ificaily a~re~ thai 13 Pa C,S,A. §~..~o6 & 1327(b) ~r~ inspplicable ami tkat ¥~ndor will s~-p~ returned Soo& in ~eir"ss-is" c~ndllion. B. All re, urns are a~ dak of vendor. 10/07/2003 15:01 FAX 410 832 208,5 W,T.& P, . mUG ~2 '0:~ 12::~3 ~ RITE A~b 7t7 97S 5711 T~3 91411~:~22~15 Contract # ~002 p. ~,**'~ 08390 Rite Aid PromOtional Funding Agreement Fiscal Year 2003. ~ .-,-. .,/ ,_ ,Category Mgr./ASSOC. Category Mgr.; ;"~'~' .,,~//~'7~/ . Company Name: / '4 ~ /~./,,~',,7'-~,'~,/~/_,,,~ __ Vendor #: -,'wO~'~~ Con~act: .. '~'~F7 .~."J'~- J ~J Phone #:'"~'t~ ,~":~ (~ jj/a Fax #: ~[-' ~''~ ~,~.~"~' //~.'~L ~'¢~/tLj' (Supplier) hereby agrees to participate in Rite Aid's Fiscal Year 2003 sup, pl.,~..ar, promotional program in the amount indicated herein. The amount to be paid by Supplier will b~../.~,~_._~ of Rite Aid's gross pumheses of Supplier's produ~s for Rite ^ld°s fiscal year ending March 1, 20~$ (but not less than the Minimum Promotionai Funding Commitment set forth below). The Funding will be used to develop and eo-execu~e marketing support deemed appropriate by Supplier's Rite Aid Category Manager for promoting and advancing the sales of SuppIler°s products in Rite Aid stores. The Promotional Funding is in addition ~0 and not in substitution for or diminution of any negotiated pricing, p~yment terms, volume incentives, rebates, older contract purchase incentives, funding for retail markdowns, off-she~f displays, Single Check Rebate fl4.ffillment, new items, new store allowances, Health Resource Rite Advice participation, Trade Show participation, Rite Aid Heaith and Beauty F_xpra, Rite Aid. Foundation Charity Golf Classic, or other programs now existing or that may be developed from time to time. 7he Supplier~s Minimum Promotlonai Funding Commitment Is firm and non-eancelable. Proof of performance will not be provided. Invoicing (for deduction from amounts owing by Rite Aid to Supplier) of the Minimum Promotional Funding Commitment will occur in four equal instaJlments on or about 5/01/02, 8/01/02, 11/01/0~ and 2/01/03. The Promotional Funding is based on actual fiscal year 2003 (March 3, 2002 - March t, 2003) gross purchases, if actual gross purchases exceed the Forecasled Gross Purchases set forth below, the additional funding will be billed and deducted in the final involoing on or about MINIMUM PROMOTIONAL FUNDING COMMITMENT: FORECASTED yELLOW COPY - A~,~OC. CATEGORY MGR. PINK COPY *~( TDTRL PRGE.~2 10/07/200~ 15:01 ~.&~ 410 852 2085 ~', T.& P. ~]003 Rite Aid Promotional Funding Agreement '¢ " Fiscal Year 2004 ' - . (Supplier) hereb~ agrees.to pa?cipate in Rite Aid s Fh,:~d Ye~' supplier pmmoaon~ pmg~ In ~e amount indicted heroin. ~e ~ount ~o be ~id by S~-ppher ~11' be ~ % of R~e Aid's grin pumhases of Supp ecs produ~s for Rite A d s fl~l ~/e~r e~g . Feb~W 28, 2~4 (but ~ot le~ ~ the Mlnlmua Promo~onal Fun~ng Oommib.nt ~elow). ~e Funding will be 'used to develop and co-~e ma~eflng euppo~ deem~a~ropria~e ~y 8upplier's R~e Aid Cafego~ Manager for prorating and a¢~oing the l~l~, ,cf Supp~er'~ producm in R~e Aid stores. The Promotional Funding is In ~dditlon b and not In f~ubsti(¢ic~, for or dlminutiozl of any negotiated pddng, payment ten~s, volume incentives, rebatea, purcha~ ino~tiv~, finding for ~tail ma~do~s, off-shelf displays,. 8ingle Oh~l( Reb&~e ~lfillment~ haw Items, new aore allowanoee, Hee~ Resouroe Rite A¢ice pa~ld[~btlon, 's~'r, tde Show ~oipation, Bite Aid Health ~d Bau~ Expos. Rite Aid Foundation Ohad~ Golf ClariS, or °~er progra~, now ~i~ing or that may be developed from time to time. T The Suppliers Minimum Promotional Funding Comm~ent is firm and no~lable. ~=~'oof of peHo~an~e ~11 not be provided. Invoicing (~r dedu¢ion from ~ounts owing btf Rite ~kl to ' SupplJe~ of fie Minimum Promotional Funding Oommi~ent will omur in ~ur equal in~llmen~ on oF about ~01/03. ~01/03. 11/01/03 ~nd ~01/~. The Pmm~ional Funding Is based on aotual ~al y~r 2004 (Mamh 2, 2003 - Fl~bm~ 28. ~04) gm~s pu,'oh~es. If aotual gross pumh~s.s exceed the Forecasted Gross Pumhages below, the additional funding ~11 be billed ~d deducted in the final ~nvot~ng on or &bo~ b~0/~. FOREOADTED GROSS P~OHASES: GREEN 0OPY -A~U~NG YELLOW COPY - A~D~. ~TE~ MGI:I, PIN~¢0,)PY - ~PPLIER IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MD NATURALS, LTD. : Plaintiff : V. : RITE AID CORPORATION : : Defendant : Case No. 03-5612 Civil Term CIVIL ACTION - LAW JURY TRIAL DEMANDED PETITION FOR ADMISSION PRO ItAC VICE The undersigned hereby moves this Court to specially admit Thomas J. Whiteford to the Bar of the Court of Common Pleas of Cumberland County, Pennsylvania for purposes limited to the above captioned action, and in support thereof states the following: 1. Your Petitioner is a member in good standing of the Bar of the Commonwealth of Pennsylvania, having been admitted to practice in 1998. Your Petitioner has appeared as counsel for Plaintif£ in the above captioned action. 3. Thomas J. Whiteford is a partner of the law firm of Whiteford, Taylor & Preston, LLP, which has an office address of 210 West Pennsylvania Avenue, Towson, Maryland 21204- 4515. 4. Mr. Whiteford is admitted to practice law in the State of Maryland, and is cuncently a mcnnber in good standing of the following Bars and Courts: Maryland State Bar Association, Baltimore County Bar Association, U.S. District Court for the District of Maryland. I 5. Mr. Whiteford is not subject to pending disciplinary proceedings in any jurisdiction. WHEREFORE, the undersigned moves your Honorable Court to specially admit Thomas J. Whiteford to the Bar of the Court of Common Pleas of Cumberland County, Pennsylvania for purposes limited to the above captioned action. Respectfully submitted, BARLEY, SI ER, T & COHEN, LLC Ely Jan /E. [~ No. 82060 meys far Plhnfiff 100 E~t M~ket S~eet P.O. Box 15012 York, PA 17405-7012 (717) 846-8888 1219556 VERIFICATION I, Thomas J. Whiteford, hereby verify that the facts set forth in the foregoing Petition are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.A. §4904 relating to unswom falsification to authorities. Dated: I)]~/o~ CERTIFICATE OF SERVICE I hereby certify that on this date I served a true and con:eot copy of the foregoing Petition by depositing a copy of same in the United States Mail, first el.ass, postage prepaid, at York, Pennsylvania, addressed as follows: Rite Aid Corporation 30 Hunter Lane Camp Hill, PA 17011 Dated: November/',/'~, 2003 BARLEY, S~'Di~T & C?HEN, LLC //(_ Jam#E. C~ini 100~East Market Street P.O. Box 15012 York, PA 17405-7012 (717) 846-8888 1003 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MD NATURALS, LTD. : Plaintiff : : RITE AID CORPORATION : : Defendant : Case No. 03-5612 Civil Term CIVIL ACTION - LAW JURY TRIAL DEMANDED ORDER In consideration of the Petition to Admit Pro Hac Vice, it is hereby ordered that Thomas J. Whiteford shall be specially admitted to the Bar of the Court of Common Pleas of Cumberland County, Pennsylvania for purposes of the above captioned action only. BY THE COURT, MD NATURALS, LTD. Plaintiff VS. RITE AID CORPORATION Defendant 1N THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION NO. 03-5612 JURY TRIAL DEMANDED ENTRY OF APPEARANCE TO THEPROTHONOTARY: KindlyentertheappearanceofBrianP. Downey, RandyL. Varnerandthefirmof PepperHamilton, LLP, onbehalfofde~ndant, RiteAidCorporation. Date: November 21, 2003 200 One Keystone Plaza North Front and Market Streets P.O. Box 1181 Harrisburg, PA 17108-1181 (717) 255-1155 Attorneys for Defendant Rite Aid Corporation CERTIFICATE OF SERVICE I, Brian P. Downey, hereby certify that on November 21, 2003 a tree and correct copy of the foregoing Entry of Appearance was served via First Class, U.S. mail upon the following: John L. Senft, Esquire James E. Charuttini, Esquire Barley, Snyder, Senft & Cohen, LLC 100 East Market Street York, PA 17401 Thomas J. Whiteford, Esquire Nichole M. Hatcher, Esquire Whiteford, Taylor & Preston, LLP 210 West Pennsylvania Avenue Towson, MD 21204-4515 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MD NATURALS, LTD. Plaintiff V. RITE AID CORPORATION Defendant Case No. 03-5612 Civil Term CIVIL ACTION - LAW JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I hereby certify that on this date I served a tree and correct copy of the Order of Court, as entered of record by the Honorable Kevin J. Hess of the Cumberland County Court of Common Pleas on November 18, 2003, admitting pro hac vice Thomas J. Whiteford, Esquire, of Maryland, by depositing a copy of same in the United States Mail, first class, postage prepaid, at York, Pennsylvania, addressed as follows: Rite Aid Corporation 30 Hunter Lane Camp Hill, PA 17011 Dated: November ~[, 2003 BARLEY, S~ER,~LLC By Jame~E. C hiklalt, ffni 100/~ast Market Street P.Ott Box 15012 York, PA 17405-7012 (717) 846-8888 SHERIFF'S RETURN - CASE NO: 2003-05612 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CIYMBERLAND MD NATUR3tLS LTD VS RITE AID CORPOP~ATION REGULAR CPL. TIMOTHY RETIZ , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according says, the within COMPLAINT & NOTICE was served upon RITE AID CORP DEFENDANT , at 1124:00 HOURS, at 30 HUNTER LANE CAMP HILL, PA 17011 JAMIE KRETIZER, PAP~ALEGAL, a true and attested copy of COMPLAINT & NOTICE the on the 31st day of October , __ by handing to ADULT IN CHARGE together with to law, 2003 and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 10.35 Affidavit .00 Surcharge 10.00 .00 38.35 Sworn and Subscribed to before me this /$~-~ day of A.D. ~othonotary ' So Answers: R. Thomas Kline 11/03/2003 BARLEY SNYDER MD NATURALS, LTD. Plaintiff VS. RITE AID CORPORATION Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CWIL ACTION NO. 03-5612 JURY TRIAL DEMANDED DEFENDANT RITE AID CORPORATION'S PRELIMINARY OBJECTIONS TO THE COMPLAINT OF MD NATURALS. LTD. Rite Aid Corporation ("Rite Aid"), by and through its undersigned attorneys, pursuant to Pa.R.C.P. 1028, files these preliminary objections to the complaint of MD Naturals, Ltd, ("MD Naturals") ("Complaint") and avers as follows: Preliminary Objection Pursuant to Pa.R.C.P. 1028(a)(4) Le~,al Insufficiency of a Pleadin~ (Demurrer) Pa.R.C.P. 1028(a)(4) permits Rite Aid to file a preliminary objection if the Complaint is legally insufficient. 2. The Complaint contains ten (10) counts, all of which are based on either the "Guaranteed Sales Agreement," the "Promotional Funding Agreement," or both. See Complaint, ~[~[ 5-79. A true and correct copy of the Complaint is attached as Exhibit A. 3. The Complaint includes claims based both in contract and in tort. 4. When a tort claim involves actions arising only from a contractual relationship, the plaintiff is limited to bringing a breach of contract claim. Sadtler v. Jackson- Cross Co., 402 Pa, Super. 492, 497, 587 A.2d 727, 730 (1991) (when a breach of a contractual relationship is expressed in terms of tortious conduct, the cause of action is properly brought in contract and not in tort); Sunquest Info. Systems v. Dean Witter Reynolds, 40 F.Supp.2d 644, 651 (W.D.Pa. 1999) (under Pennsylvania law, plaintiff may not assert fraud or negligent misrepresentation claim when those theories are merely restatements of what is essentially a breach of contract claim; if the "gist of the action" is based upon the contract, the claim must sound in contract). 5. MD Naturals' claims arise wholly from the contractual relationship between it and Rite Aid. contract claims: MD Naturals has improperly joined the following tort claims with its a. Count Five (Conversion); b. Count Seven (Intentional Misrepresentation); Non-Disclosure); Count Eight (Intentional Misrepresentation--Concealment and d, Count Nine (Negligent Misrepresentation); and e. Count Ten (Unfair Competition). -2- WHEREFORE, Rite Aid requests that this Court dismiss Count Five (Conversion), Count Seven (Intentional Misrepresentation), Count Eight (Intentional Misrepresentation--Concealment and Non-Disclosure), Count Nine (Negligent Misrepresentation), and Count Ten (Unfair Competition), with prejudice, because they fail to state a legally sufficient claim. Preliminary Objection Pursuant to Pa.R.C.P. 1028(a)(2) and (3) Failure to Plead with Specificity Material Facts 7. Pa.R.C.P. 1028(a)(2) authorizes a defendant to file a preliminary objection for a failure of the pleading to conform to law or rule of court. 8. Pa.R.C.P. 1028(a)(3) authorizes a defendant to file a preliminary objection due to insufficient specificity in a pleading. 9. Pa.R.C.P. 1019(a) requires pleadings to state the material facts upon which a cause of action is based in a concise and summary form. 10. Connor v. Allegheny General Hospital, 501 Pa. 306, 461 A.2d 600, 602 n.3 (1983), mandates that a defendant either preliminarily object to vague allegations in a complaint when it does not understand the allegations well enough to answer and prepare a defense or risk having the plaintiff amend the complaint on the eve of trial to include more specific allegations. 11. The Complaint contains vague, general and infinitely expandable allegations. In particular, the MD Naturals alleges: -3- a. in paragraph 41 of the Complaint that "Rite Aid's unauthorized actions have and continue to deprive MD Naturals from the use and benefit of these monies," without specifying what "unauthorized actions" Rite Aid is alleged to have taken; b. in paragraph 49 of the Complaint that "MD Naturals relied to its detriment on the promises made by Rite Aid," and that "Rite Aid failed to make good on its promises," and "[lit was clearly foreseeable that MD Naturals would rely on the promises made by Rite Aid," without identifying the alleged Rite Aid "promises"; c. in paragraph 53 of the Complaint that "Rite Aid made specific representations to MD Naturals in Paragraph 2 of the 'General Sales Agreement,' including but not limited to agreeing that Rite Aid would pay MD Naturals for all of the product sold," which is improper in light of the "not limited to" language; d. in paragraph 55 of thc Complaint that "Rite Aid intentionally made false representations," without specifying what those alleged representations were; e. in paragraph 56 of the Complaint that Rite Aid made "representations" without specifying what those alleged representations were; f. in paragraph 57 of the Complaint that "Rite Aid's representations to MD Naturals were made with such a reckless disregard for the truth... "without specifying what those alleged representations were; g. in paragraph 58 of the Complaint that "MD Naturals relied upon the misrepresentations made by Rite Aid," without specifying what those alleged misrepresentations were; -4- h. in paragraph 59 of the Complaint that "MD Naturals has suffered a financial strain and detriment as a result of Rite Aid's misrepresentations," without specifying what those alleged misrepresentations were; i. in paragraph 62 of the Complaint that "MD Naturals relied to its detriment on the promises made by Rite Aid," that "Rite Aid intentionally did not make good on its promise," and that "lilt was clearly foreseeable that MD Naturals would rely on the promises made by Rite Aid," without specifying what those alleged promises were; j. in paragraph 69 of the Complaint that "Rite Aid was therefore negligent in its representations to MD Naturals, which representations were relied upon by MD Naturals to its detriment," without specifying what those alleged representations were; k. in paragraph 70 of the Complaint that "Rite Aid negligently failed to make good on its promise," and that "lilt was clearly foreseeable that MD Naturals would rely and (sic) on the promises made," without specifying what the alleged promises were; 1. in paragraph 71 of the Complaint that "The financial injuries.. .were the direct and/or proximate cause of the negligent misrepresentations of Rite Aid," without specifying the alleged negligent misrepresentations; and m. in paragraphs 73-78 of the Complaint that Rite Aid has engaged in unfair competition without providing enough specificity to allow Rite Aid to determine whether the cause of action is pleaded under the common law or a statute, and is so vague and conclusory as to not allow Rite Aid to determine if Count Ten even states a legal claim. 12. Such vague and conclusory pleading fails to contain the specific, concise and summary statement of facts required by Pennsylvania law and should be stricken from the Complaint. WHEREFORE, Rite Aid requests this Court strike paragraphs 41, 49, 53, 55, 56, 57, 58, 59, 62, 69, 70, 71, and 73-78 of the Complaint. Respectfully subm'ltte;~/~ Pepper Hamilton LLP 200 One Keystone Plaza North Front & Market Streets Harrisburg, PA 17101 (717) 255-I 155 phone (717) 238-0575 fax Dated: December 18, 2003 Attorneys for Rite Aid Corporation -6- IN TH~ COURT OF COMMON II, FAS CI~MBERLAND COUNTY, Pe, NNSYI,VANIA NATURA~ LTD. : AID CORFORATION : Defmd~nt : CIVIL ACTION o LAW YOU HAV]/BF, I/N SUED iN COURT. If you w/sh to defend a~/n~t the ~ ~: fo~h in the followi~p~gea, you mu~t t*ke a~/m ~lwmry (20) day~ after th/, Complain* is ~erwd, by ~t~g a wril~n al~.armce l~rsoP, ally or by atlm'p~-y and ~iin~/n wrili~g with ~he Cour~ yo~ d~mse~ or objecliom t9/h~ claims set fm~h apinst yo~ Yo~ ar~ warned tl~t if you fall ~o do ~o, th~ ~se may pro~l wi~ou~ you and a jud/m~t may be ~m'ed a~/n~t you by ~ Court will,om fur~,,oti~ for my mo~y' e,l~/i~ ~ Compldm or for my other claim or relief req~e~ed by the Pla/nfi~ YOU MAY LOSE MONi/Y OR'PROFERTY OR OTHET, RIGHTS ~IFORTA!qT TO YOU. YOU SHOULD TAKi/THIS PAPER TO YOUR LAWYI~ AT ONCE. IF YOU DO NOT HAV]~ OR KNOW A LA~ ~ YOU SHOULD OO TO OR TI/LEPHONE ~ OFFICE SHT FORTH BIKOW TO FIND OUT WHERIi YOU CAN GET LI/OAL H~LP. Lawyer R~f~,,~l Sen/ce Cumberland C~u~ty Bar Aswc/~/on 2 Lib~ Av~uo C~isl~, PA 17013 717-249-3 I~ 1-80~9~9108 IF YOU CANNOT AFFORD TO HIRE'A LAWYER, THIS OFi~ICE MAY BB ABLE TO PROVIDE YOU WITH II'FORMATION ABOUT AGENCIES THAT MAY OFFER LBO,AL 8F. RV~CES TO BLIG~IBL8 PLq~.SONS AT A REDUCED FF2/OR NO FE~. Mid,Pmn I~gal S~vices 8 Irviae Row CarllSl~, PA 17013 717-243-9400 1-800-822,5288 IN THB COURT OF COMMOI~' CUMBERLA/qD COUiNT¥, P~V~ ~ NAT~, LTD. : P~ : Case No. ~ ~ CO~O~ON : C~ A~ON- ~W D~end~t : ~RY T~ DE~ ~ ~d ~e law ~ of B~ley, L ~ Na~ ~ a ~m~ M~md ~on ~ im ~p~ p]~ of b,~n~ Io~ a~ ~08 Avon Dfiv~ ~d~ ~l~ 20814. 2. ~ ~d ~n~ r~ b~~ in num~ ~ inclu~ng M~lmd md · e Co~onw~ PA 17011. ' 4. J~ ~ ~ .g~ed ~ P~lv~ law ~ ~t ~ ~ C~l~d Co~, P~lv~ CO~ 5. ~ Na~s in~rat~ by r~ ~e ~lega~ ~n~ ~ ~ ~e~ng p~ap~ offs Compl~nt ~ ~e s~e e~ ~ iffy s~ fo~ h~in. d'. MD Naturals incorporates the "C, umante~:d Sales Agreement" o£the parties, a m~e and correct copy of which is aY. ached hereto a~ Exl~'bit A. ?. On or about July $, 2002, Rite A/d entered into an a~re~nen! with MD Naturals, whereby Rite Aid a~eed to purchase and sell a dietary aid manufactured and soId by MD Naturals. See Bxhibit A, attached. 5. Paragraph 2 of the 'Ousrantead Salas Agreement" provides that there would bca 120-day rev/ow per/od/n wh/ch Rite Aid would assess tho performance of theMD lqatura/s product. See BxbJb/t A, attached. 9. Paragraph 2 of the "Guaranteed Sales Agr~menff sta~es tl2t ~[d]ufi~ the review period, Rite Aid will l~y only/'or those products that are actually sold.. 10. On November 25, 2002, Rite Ai~l placed its in/~al order in the amount of $108.000 worth of MD Naturals product, and MD Natur~s.delivcmi thc requested amount to Rite Aid in a timely fashion. 11. In J. anuary, 2003; l%bruary, 2003; March, 2003; and April, 2003, Rite Aid placed adclitio~al orders with MD lqatorals, which orde~ totaled more than $52,000 in product. The orders were timely delivered to Rite Aid. . 12. Rite Aid acted/n an ouffagaous mannar By fail/ng to pay any money tolvfD Naturals for any of the ~oduct that has beeo sold and is in breach of the parties' a~'eement. 13. Further, Rite Aid Pu~uant to ~he contract had an obligation to stock and advertise Plaint/fl's product in 956 stores. Upon/n£ormafion and boiler, Defendant fa/led to meet this Obligation, thereby breaching the contract and caua/ng damages to thc Pla/ntiffin thc form of reduced sales, for which damages Rite Aid i~ l/able. 14. Further, MD Naturals h~ paid Rite Aid advc~/samant fees and costs for the markcting of its ~roduct, as sold by Ritc Aid, and Rite A/d has rece/ved thc bcnefi! of those toes 2 and costs. The averments set ft~rth in Count H hereof are incorporated by reference into this Count Io ! 5. lVlD Naturals has at all times material hereto compli~ with the agreements between the parties and fulfi))ed its obligations thereunder. !6. The prices and amounts charged by MD Naturals for its products were ami are reasonable and are the prices agreed vpon by the parties. 17. The ~peeifl¢ amoun~ ot~damages suffered by MD Naturals is not yet known, but the amount in controversy exceeds th~ applicable threshold for compulsory arbitration. WHEREFORE, MD Naturals demauds judgmeat against Rite Aid for all amounts due for product sold, lost sales and pmfiis~ and for fees ~or advertising a~l promottoP, al pro,rim; plus intel~t, cosls and such oilier relief d~m~d appropriate by ~is Honorable CourL COUNT T~O (r. Tn~st Em'ichmentl 18. MD Hatura]s incorporatM by re.i'er~c,~ all alle~lioi~1 colltain~d in'Ibc precediol~ paragraphs of This COmplaint wi~h ~ho same eib'ccc as if fully set forth hm~in. 19. In addition to ~he 'G~ante~xl Sa]es A~re~Tnent" ~ter~d into bm~n Rite aid ~d MD l',lal~Tals, the parties a]so entered into a 'Promotional l~mdinl: A~r~ernent." whic~h mandates MD Naturals' psrti~ipatio~ and con~ibu~ion re~sri~inG Rite ),id'$ p~omoti0na] and advertisemen~ pro.-am. The "Promotional Ptmdto~ A~'~rnent" is ai~ach~ h~'eto as Exhibit B 20. The 'PromOtional l~undinil Asrctment" r~cluir~ MD Nalura]s co conm'but~ $% of P, ite Aid's ~roes puroheses oi~MD Naturals' produots i'or Rite ,Md% flail year... (but not tha~ The m~nirnum promolional.t~undinG commitment). 21. MD Naturals paid the 5% contn'bution amount of the "Promotional Funding Agreement", but hss not received adequate and sufficient advertisement and promotion of its produc~ tom Rite Aid. 22. Rite Aid bsa been unju~ly enriched by r~ceivin~ accept/rig, ~a benefiti~ ~ the 5% contn'but/on from MD Naturals wiflaout providing adequate and sufficient advertising of the MD Naturals product pursuant to the pa~ie~' agreement.. 23. Thc specific am0unt ol~clamages are as yet uriknown, but the coll~g~ ~s o£ MD Naturals cxceed the threshold for compulsory arbitralion. WHHR~ORE, MD Naturals demands jud~nent agsi~t P,t~e Aid in an unliquidated amouni for ali tees ancl costs paid for adverti~i-$ and promotion,'plus intetesf, costs, and such other telteff as cleemecl ptope~ by this Honorable Court. ¢Ob'NT ~ 24. MD Naturals incorporates by reference all allegations contained in ~h~ preying paragrapks of this 'Complaint with the same ~ffect as if fully set forth at length. 25. Pm~-uaot m the "Promotional ~,a!~g Agr~em~i" betwee~ the par~es, Rite Aid was obligated ~o provide adequate and sufl~clent advertising and promotion off the IvlD Naturals product in cxcha~ge for the 5% con~ibugon by MD Nat~als to the adve~lising and promotional 26. Rite Aid has failed to provide adequate and sufficient advertising and promotion o£the MD Naturals product pursuant to the asreement of the parties. 27. MD Haturals ha~ at ali times complied with its oblit:alions pursuant'to the parties, agreement concerrgng advertising and promotiom 4 promotion. 29.. Rite Aid is in breach of the partie~' agreemen! coucer~ing advert/sing and ]vid Nal~v~M has suffered dama~e~ due to lost sales and profits as a result of thc hadequate and instfffici~t! edvet~ing ~ promotion. 30. The ~peci/ic amount ofd,m~ges are as yet udmown, but the collect/'~e da/ms of IvlD Naturals exceed the thrasholc~ for comptttsoo' erbitratlom. WHIgR~ORB, MD Naturals demands judgmant agalm-t Rite Aid in an unliquidated amount for lost sales and profit~ and for the fees and cost~ a~ociated wi~ advertising and promot/on, plus interest, cost~, and such other relief as deemed proper by tiffs Honorable Court. 31. MD Tqatmals incorporates by reference all allegations contained/n the preceding parasraphs ofth/s Complaint with the stone effect as if fully set forth at length. 32. On or about November 25, 2002, Rite Aid placed an init/al order pursuant to the part/es' "Guaranteed Sales Agreement" For ~108,000 worth of lVZD Natttrals product, and 'Naturab delivered the requested amount to Rite Aid in a timely fasb/on. 33. fm Sanuary, 2OO3; Pebruary, 2OO3; March, 2OO3; and April, 2oo3, Rite Aid placed acld/fional orde~ with MD Naturals, which orders tote/ed more than $52,000 in product. The orde~ we~'e t/meJy delivered to Rite A/d. 34. Rite Aid bas not paid any money to MD Nstutals for any ofthe product that bas been org¢~ and sold. 35. R/re Aid baa been unjustly ea~/checl by rccei~/ng and accepting',he product fi.om MD Naturals and benefiting therefrom without any payment or rcmunerat/on to ~ Naturals. 56. The specific amount of damages are as yet unknown, but the collective claims of MD Naturals exceed the threshold for compulsory arbitrati~ WHEREFOR~ MD Naturals demands judgrnent against Rite Aid for all amounts due for prodtzct sold by Rite Aid, plus interest, custs arid such other relief deemed appropriate by this Honorable Court COUNT i,~v'E (Conversion) 37. MD Naturals incorporates by re~erencc all allegations conteined in the preceding para.phs oral, in Complaint with the same effect es ii'fully set forth herein. 38. Pursuant to the "Guaranteed Sales A~reement" between the l~rties, Rite Aid owes certain and significant monies to MD Naturals for any proc'uct supplied by MD Naturals tl~t was thereai~ar sold by Rite Aid. · 39. Rite Aid has received product fi'om MD Naturals as ordered and pursuant to the parties' a~recment, but has failed and refused to dcliver and pay to MD Naturals the amounts properly due for product sold. 40. Rite Aid's contkmed use of and exercise of control over these monies that are the property of MD Nattnuls is unanthorized. 41. Rite Aid's unauthorized itctions have and continue to deprive MD Naturals from the use and benefit of these monies. 42. Rite Aid's actions constitute conversion. 43. The specific amot~nt of damages are as yet unknown, but the collective clnlm~ of MD Natwals exceed thc threshold for con~pulsory arbitration. 6 WHF, RBFORB, MD Naturals demands judgmcm agsln.~f Rite Aid for all amounts duc for product sold by Rite Aid, plus interest, ¢os~ and such othe~ relief as deemed prc~e~ by this Honorable Cour~ COT~ $~X 44. MD Naturals incorporates by r~t'erence all allegations co~tained in the preceding paragraphs of~is Complaint with the sarde effect as if fully set forth herein. 41;. Rite Aid specifically agreed in Paragraph 2 of the "Ouaranteed Sales Agreement" that duzing the 120-day review period, it would pay MD Naturals for all of the product(s) that w~e actually sold. S~ Exhibit A. 46. On Novamber 2!;, 2002, Rite Aid placed its initial order in the amount o~ $108,000 wo~h o£MD Naturals product, and IVID Nat'orals delive~red the requested amount to Rite Aid in a timely ~hior~ 47. In Sanuary, 2003; February, 2003; March, 2003; and April, 2003, Rite Aid placed. additional orders with MD Naturals, totaling more than $$2,000 in product The ordms were timely delivezed 'to Rite Aid as agreed llpOfl. - 48. MD Naturals, pursuant to the Rite Aid Promogonal l~unding Agreement, cenha'buted approximately $% of Rite Aid's gross purchases £or adveitisin~; however, Rite Aid failed to advertise the MD Naturals product as a~reed. 49. MD Naha'als relied to its de~iment on the promises made by Rite Aid. Rite Aid failed to make good on its promises. It was elearly foreseeable that MD Naturals would rely on the promises made by Rite Aid. SO. Rite Aid should be estopped from dcnying payment to MD Natwels. 7 $1. The amount in controversy exceeds the applicable threshold for compulsory arbitration. WH~L~OR~ MD Nattuals demands judgmant against the Defendant, Rite Aid Corporation in an unliquldated an~ount for product sold by Rite Aid and for fees paid for advertising and ~romogon, plus/nteres~ costs, and any and all other relief, wit/ch th/s Honorable Court finds it entitled. COUNT~/lnq (IntentinnaJ Mbaep~ ez 52. MD Nattlrals/ncorporate~ by reference all alle/afiona contained in the preceding paragraphs of this Complaint with thc same e~ect as if fully set for'th herein. 53. At the time of contract/nE, R/te Aid made spec/fic represantatlons to MD ~aturals /n Paragraph 2 of the *Ousrantoed Sales Agreement,' inclucl/n8 but not limited to agree/ng that R/t,- A/d would pay MD Nalla-als for all of the Pt'°tluet sold. 54. MD Naturals/n reliance on th/s agreement w/th Rite Airl supplied numero~ orders ofl~xluct to Rite Aid and thousands ofdol]~ in addit/onal product t~wa~ls the advc~t/shig and promotional program. 55, Rite A/d/ntcn~onally made false representat/ons, as it has fa/led to pay R/te for any of the product stq0plied, as agreed to in the "Guaranteed Sales ABreement.'* 56. Thc reprasc~tations by R/to A/d were made to induce MD lqaturals to enter the agreeane~ts w/th Rite Aid and were made with the knowtedge and intent that ?viD Natmals wo~d t'ely upon such reLoresentatioas. 57. Rite A/d's tepr~entat/ons to MD Nattuals were made w/th such a reck]ess d/srogard for the truth that knowledge of the falsity of the state, hems can be imputed to Rite Aid. SI-ch actions by Ritc Aid collstitutes outrageous conduct and ~ reckless disregard for th~ rights o~MD lqamrals, 58. MD l~laturals relied upon thc misrepr~cntations made by Rite Aid, delivered several ordel's of its product. 59. MD Naturals bas suffered a financial strain and de~rimeat aS a result ofRite Aid's 60. The amotmt in controveray excengs th~ applicable amounts for compulsory athilration. WHEREFORE, MD l~laturnls demands jud~nent against the D~feodant, Rim Aid Corporation in an urgiquidated amount for the fees and costs paid for advertising and promotion, thc mount of the product supplied, plus interest, costs, punitive damages, and any and all other relief which this Honorable Court finds it entitled.. COUNT EIGHT (Intentional Mi*,~res~ntation-Conco-t,,~ent and Non-Dis'clostu~) 61. MD ixtaturals incorporates by reference all allegations contained in the preoedi~ p~agraphs oft his Complaint ~vith the same effect as if fully set forth herein. 62. MD Naturals relied to its dehime~t on the promises msde by Rita Aid. Rite Aid intentionally did not make good on its promises. It wa~ clearly forasesable that 1VID Naturals would rely on the promises made by Rite Aid. 63. Rite Aid failed to disclose to IVlD Naturais, prior to makin~ additional orders for product, that it did not plan to comply with Paragraph 12 of the "Ouarantead' Sales Agreement," and to t~a~ MD Naturals for all of the product sold to date. 64. The actions of Rite Aid w~re outrageous a~d in reckless disregard for the tighIs of MD Naturals. 65. The amoun! in c~ntrovc~y exceeds the applicable amount for compulsory arbitration. WHEREFORE, MD Naturals demands jud~cr~ent agsinst the Defendant, Rito Aid Corporation in an unliquidated amoun! for product sold and fees and costs associated with the adver~$i~g and promotional program, plus interest, costs, punitive damages, and any and all other relief to which this Honorable Court finds it entitled. 66. MD l~lalurals incotporales by referenc~ the allegations colltsi~ed in all prec~'l!~41 paragraphs of this Complaint with the sams eff~-t as if f~lly set forth herein. 67. Rite Aid had a duty to MD Naturals to convey ~d represent prop~' ~d a~corate information as to its abiliiy to pay for produot and to advertis& trod promote the producl pursuant lo the agr~men~s of the panic. 68. Rite Aid brcaclled it~ duties to MD Naturals by not a~rately r~presenting or disclosing its ability to psy thc amounts alp'eed upon for producl sold and the extent of adve~ising for the MD Naturals product. 69. Rite Aid was therefore negligent in its repr~entstions to MD N~ which represemations wero relied upon by MD Haturals to its detrimanL 70. Rite Aid negligently failed to make good on its promise. It was clearly foresocable that MD Naturals would rely and on th~ promise~ made 71. The fi~ncial injuri~ lo MD Naturals w~re the dir~-'t and/or proximat~ cause of th~ negligent misrepresentations of Rite Aid as to ~I~ agreements and business dealings between 10 72. The amotmt in controversy exceeds the applicable amount for compulsory arbitration. WHEREFORE, MD Naturals demands judgment against the Defendant, Rite Aid Corporation in an unliquidated amount for product sold and for the fe~ paid towards the advertising and promogonal program, plus/nterest, costs, and any and all other relief which this. Honorable Coun'finds it entitled. COUNT (Unfair Competition) ?3. MD Naturals incorporates by reference the alle~at/ons contained in all preceding peragraphs of this Complaint with, the same effect as if fully set fetch herein, 74. Prior to delivering the MD Naturals Product to Rite Aid, MD Natural~ spent a substantia~ amount of time, labor, and money in the a'eation of the dietary supplement delivered to Rite Aid. ?5. Rite Aid ae, gressively advertised other dietary products including their own store brand dietary aids. ]Rite Aid did not a~ressively advm~ise MD Naturals' products as agreed. 76. MD Naturals 1~ suffered financially due to Rite Aid's failure to appropriately advertise MD Naturals' products aion~side o£the other dietary aids sold et the store. 77. The actions of Rite Aid were in contravcntion o£the panics sgreemcots end constitute unfair competition against MD Naturals. 78. The actions of Rite Aid were outragen~ and in recideas disregard for the rights of MD Naturals and constitute conduct warranting the imposition of exemplury deranges. 79. The amount in controversy exceeds the appl!r~b!e amount for compulsory arbitration. 11 ~K~RF. FOI~, MD Nsiursls demands judgmeat aSslna Rite Aid in an ualiquidated amoun! for product sold a~d fees paid tow~ds the adverlistng and promotional pro~,,cu, plus punjiiv-- damages, interest, costs, and any and all other relief which this Honorable Court ftnds it ID # 82060 Barley, Snyder, Senft & Cohen, LLC York, PA 17t01 717-816-8888 Co<oumel Thc~mas 1. W~aite~rd, Nichole M. Hair. her, Esquire Whitdc~d, Taylor & Preston, 210 West Pennsylvania Avenue Towsen, MD 212~_ ~15 410-8~2-2000 12 VI?~I~ICATION I, Edward Levien, President of MD Nattffa]$, Ltd., hereby verify that the facts set forth/n the foregoing Complaint sre ~rue and correct to the best of my knowledge, inforro~on and belief. To the exumt that any of the averments in the foregoing doctunent arc based upon the understanding or application of law, I have relied upon counsel in tnnking d~is Verification. This Verific~ion is made subject to thc f~s/fication ~o authorities. lVlD~amrals, ~ HO, Q~3~ P. 1 AM'8 ~er~m~- Dopemn,~ l~c,,,bcd Mmr~ 4, 2002 J,U/u?/zuo-~ X$~OX ~'AZ &'LO 85~ Z085 W.T.& P. 1~002 7t? 9~"5 S?i~. T~ ~4~5 P.~ Aid Promotional Funding Agr me Fis l Year 2003. · e/~"/L~-~,~.[' (~uppIier} hereby a,gme-: to i:)m'tioiF~',., in Rite Aid's Fiscal Year 2003 suqp ,.~',, p~r~.~-6onal program in the amount ~ncllc~ted herein.. The amount to be paid by 8up_plier will beL~ of Rite AJd~ gr,~_ -- pum~'mee~ of Suppller'a produ~s ~a' Rite AId'~ fiscaJ year enmrlg Mm:ch 1,200,~ (but not less t~mrt the Minimum Promotional Funding C~mmitment eet forth below]. " The Funding will be used to clevelop and ~o-exeoute rnwkmlng support deemed appropriate by 8upplie~ Rite Aid Oatogo~' Manager for promoting and advancing the ea~ea of 8upplle~e ptoducl~ in Rite Aid atoms. The Prornolinrtal Funding la In addition to and not In substitution for or diminution of any negotiated pricing, payment terms, volume incentives, rebatss, other contract purchase ince~Uve~, funding for retail nlaflMowns, off-shelf displaya, Single CheCk Rebate ~ltillment, new items, new e~ore allowances, Health Resource Rite Advi~e partl~'q~ation, Trade Show participation. Rite Aid I-M-~h and Beauty I~ IRIte.Aid?ound~tlon Charity I:~olf Classic, or other programs now existing or that may be developed./mm time to ~ms. 7he l~upplier's Minimum Promotional Funding Oomrnitment I~ firm and non-can~elable. Proof of performance will not be provided, involcir!.g (for deduction/rom amount~ owing by Rite Aid to Supplier) of the Minimum Prom,,otl.e~al Fu ,nd. ing Oommltment will occur in four equal instaJlments on or about 5/01/02, S/01/02. 11/01/0~ an~ The Promotional Funding is ~ on aotual fiscal year 2003 ~larch 8, 2002- March 1, 2003) gm~ purd~e~es. If a~ual gross pumhases me:ced the For~--aust~ ~ Puroh~e~ ~et ~r~. below, the additfonal funding will be billed and deduoted in the anal invotelng on or about E/~0/0~, MINIMUM PROMOTIONAl. FUNDING COMMrrMENT: $, .'~'..~,.~'~. -) , . yElLOW COPY- A~..~OC. GATE,DRY M~q- PIHt(COPY'. SUPPLIER 15:01 ~ 410 832 2086 ~003 09 74 ' Fiscal Year 2004 Com~e:~ ~v*~, 1/~ ' Vend°re_ ' ' (Supplier) hereby agrees.to padlolpate in Rlte Ald'a Fi~u'al Ye~,- L~004 supplier promotional program in the amount Indicated herein, The amount to bo pakl by $~ppller ~11' be _~ % of Rite Aicre.groes ptrmhaaea of Suppliers pro. duc ~r Rite Aid~ fl~al ~ er~ng February 28, 2004 [but not leas than ~he Minimum Promotional Fund'mg Gommitmen~ s~f, rth below]. 'll~e Funding will be'used to develop and oo-exe~ute ma~kedrlg support deemec~_'appmpriate · by .~upplier'e FIIte Aid Ca(egmy Manager for promoting and advanoing the ealee ~f b-'uppter's produc~a in Rite Nd .stores. The Promotional Funding ia In addition t~ end not In mubsflt~ke for or diminution of any negotiated prldng, payment terms, volume {noontive$, rebatem, other c~ntrm3t purcha.se Incentives, funding for retail markclowrm, off-shaft dispteya,,Slngle Ohe~l(.R. ebal~e . fulfillment, new It~ma, ne~v ~om allowm'~ee.. HeaJth Rem:,Jme ~ ,Advice pa~tlellcm[tlon, :~'r. ade Show' ~1~ p?rtioipation, Rite Aid'Health and Beauty,ExPos, Rfte Aid Founda.flon Ohad~ G~lf Gla_~_ ~, or.~ther ~ p~Ogrems now existing or that may be developed from tlme to'time, The 8uppller's Minimum promotional Funding Co. mmltrnent Is firm and non-uaum~able. perfonn~noe wfll ~ be provided. Involclng (for dsdu~tion from arno _m~s. owing by Rite.~id to Sup. plier) of the Mmlmum Promotional. Funding Commitment will ocour m four eqLml k~t<;Ih~ent~ on or about 5/01103, ~/OllO3, 11./Ol/{3~ a~d 2/o1/o4. The Promotional Funding is baaed on a~tued fiscal year 2004 (March 2, 2003 -Februar~ ;'.8, 2004) grooa pu~.,ha~es. If autual l;Iroee puroha~e$ m<ooed the Forecasted Grolm PU .mhaee~ ~k ~orth below, the additional fUnding will be billed and deduuted in the final ir~oicing .C,'WHITE L~3F'Y' - OO-OP D~T. OIRE~I4 COPY - ACOOUNTIN~ Y~.LOW COPY- A~ ~OO. t:ATE~O R~ M~PL lal~l~O~aef. I~.lPPLILelq CERTIFICATE OF SERVICE I hereby certify that on December 18, 2003, a true and correct copy of the foregoing document was served via United States mail, first class postage prepaid, upon the following: John L. Senft, Esquire James E. Chiaruttini, Esquire Barley, Snyder, Senft & Cohen, LLC 100 East Market Street York, PA 17401 Thomas J. Whiteford, Esquire Nichole M. Hatcher, Esquire Whiteford, Taylor & Preston, LLP 210 West Pennsylvania Avenue Towson, MD 21204-4515 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MD NATURALS, LTD. : Plaintiff : V. .' : RITE AID CORPORATION : : Defendant : Case No. 03-5612 Civil Term CIVIL ACTION - LAW JURY TRIAL DEMANDED TO: * NOTICE OF PRAECIPE TO ENTER JUDGMENT BY DEFAULT Rite Aid Corporation 30 Hunter Lane Camp Hill, PA 17011 Brian P. Downey Pepper Hamilton, LLP 200 One Keystone Plaza, North Front and Market Streets P.O. Box 1181 Harrisburg, Permsylvania 17108-1181 (Dauphin Co.) DATE OF NOTICE: * December 15, 2003 IMPORTANT NOTICE YOU ARE 1N DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTEKED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. Cumberland County Bar Association Lawyer Referral Service 32 South Bedford Street Carlisle, PA 17013 717-249-3166 1-800-990-9108 IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. MidPenn Legal Se~,ices 8 Irvine Row Carlisle, PA 17013 717-243-9400 1-800-822-5288 Whiteford, Taylor & Preston 133, Thom~rJ.'Whitefbrd 210 ~¢fJ Pennsylvania Avenue Towsbn, MD 21204 (410) 832-2000 295868 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MD NATURALS, LTD. Plaintiff RITE AID CORPORATION Defendant Case No. 03-5612 Civil Term CIVIL ACTION - LAW JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I Hereby Certify that on this jr, ~t, day of December, 2003, a copy of a Notice of Praecipe to Enter Judgment By Default was :mailed, postage prepaid, to: Rite Aid Corporation 30 Hunter Lane Camp Hill, PA 17011 Brian P. Downey Pepper Hamilton, LLP 200 One Keystone Plaza, North Front & Market Streets P. O. Box 1181 Harrisburg, PA 17108-1187[ 4T0~'~d~!~!~ Pr eston L.L.P. 210 W. Pennsylvania Avenue Towson, MD 21204 ,) (410) 832-,.083 295874 MD NATURALS, LTD. Plaintiff VS. RITE AID CORPORATION Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION NO. 03-5612 JURY TRIAL DEMANDED PRAECIPE TO LIST CASE FOR ARGUMENT TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within matter for the next Argument Court. State matter to be argued: Defendant Rite Aid Corporation's Preliminary Objections to the Complaint of MD Naturals, Ltd. Identify counsel who will argue case: a. for plaintiff: John L. Senft, Esquire James E. Chiamttini, Esquire Barley, Snyder, Senft & Cohen, LLC Thomas J. Whiteford, Esquire Nichole M. Hatcher, Esquire Whiteford, Taylor & Preston, LLP b. for defendant: Brian P. Downey, Esquire Pepper Hamilton LLP I will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: Dated: January 13, 2004 February 4, 2004 x--,,,.~RIAN P. l~O~lqt~Y (59891) 'I~..~DY L. XA~ ~ 1943) 5°° North ~nt & M~FSt~d[ts H~isburg, PA 17101 (717) 255-1155 phone (717) 238-0575 hx Attorneys for Rite Aid Co~oration CERTIFICATE OF SERVICE I hereby certify that on January 13, 2004, a true and correct copy of the foregoing document was served via United States mail, first class postage prepaid, upon the following: John L. Senft, Esquire James E. Chiaruttini, Esquire Barley, Snyder, Senft & Cohen, LLC 100 East Market Street York, PA 17401 Thomas J. Whiteford, Esquire Nichole M. Hatcher, Esquire Whiteford, Taylor & Preston, LLP 210 West Pennsylvania Avenue Towson, MD 21204-4515 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MD NATURALS, LTD. Plaintiff Vo RITE AID CORPORATION Defendant Case No. 03-5612 Civil Term CIVIL ACTION - LAW JURY TRIAL DEMANDED TO: * NOTICE OF PRAECIPE TO DISCONTINUE Prothonotary of Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 DATE OF NOTICE: * January 22, 2004 Please mark the above-captioned case ended and discontinued without prejudice. Whi~aylor & Prestjn]/. / ~// By 5~ (W~:?'te~~ 210 W. Pennsylvania Avenue Towson, MD 21204 (410) 832-2000 297188 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA MD NATURALS, LTD. Plaintiff RITE AID CORPORATION Defendant Case No. 03-5612 Civil Term CIVIL ACTION - LAW JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I Hereby Certify that on this ~,~'day of January, 2004, a copy of a Notice of Praecipe to Discontinue was mailed, postage prepaid, to: Rite Aid Corporation 30 Hunter Lane Camp Hill, PA 17011 Brian P. Downey, Esquire Pepper Hamilton, LLP 200 One Keystone Plaza, North Front & Market Streets P. O. Box 1181 Harrisburg, PA 17108-1181 2~8~ Whiteford, Taylor & Preston L.L.P. 400 Court Towers 210 W. Pennsylvania Avenue Towson, MD 21204 (410) 832-2083