HomeMy WebLinkAbout12-3632Merchants Express
Money Order Company, Inc.
PLAINTIFF
V.
Muammar S Mohamed
Individually, jointly and severally,
DEFENDANT
and
Sharifa Hussein Obad
Individually, jointly and severally,
DEFENDANT :
and
Chester Shop and Save Food Market, Inc.
also known as Chester Shop N Save
Corporation :
DEFENDANT
COURT OF COMMON PLEAS,
CUMBERLAND COUNTY
/a
No.
civil W94
2012
CONFESSION OF JUDGMENT
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Pursuant to the authority contained in the warrant of attorney, the original or a copy of
which is attached to the compliant filed in this action, I appear for the Defendants and
confess judgment in favor of the Plaintiff and against the Defendants as follows:
Principal: $18,429.65
Interest: $ 1,907.47
Lost Fee Income: $ 1,462.50
Attorney Fees: $ 6,539.89
Total: $ 28,339.51
evin . utkins, Esq.
Attorney for Defendants
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0-717
Merchants Express
Money Order Company, Inc.
PLAINTIFF
COURT OF COMMON PLEAS,
CUMBERLAND COUNTY
V.
Muammar S Mohamed
Individually, jointly and severally,
DEFENDANT
and
2012
i
o:?`?uy s
Pflt
No.
Sharifa Hussein Obad
Individually, jointly and severally,
DEFENDANT
and
Chester Shop and Save Food Market, Inc.
also known as Chester Shop N Save
Corporation
DEFENDANT
COMPLAINT IN CONFESSION OF JUDGMENT FOR MONEY
COUNT I - CONFESSION OF JUDGMENT
(MEMO V. SHOP N SAVE. MOHAMED AND OBAD)
1. Plaintiff is Merchants Express Money Order Company, Inc., hereinafter "MEMO"), a
Pennsylvania Corporation that engages in the issuance and sale of money orders and whose
address is 1029 Mumma Road, Wormleysburg, Pennsylvania, 17043.
2. Defendant Chester Shop and Save Food Market Inc., (hereinafter "SHOP N SAVE"),
is a corporation located at 1516 West 9 h Street, Chester, PA 19013 and doing business as Shop
N Save.
3. Defendant Muammar S. Mohamed (hereinafter "Mohamed"), is an individual
residing at 202 W Elkinton Avenue, Apartment B, Chester, PA 19013 and the spouse of Sharifa
Hussein Obad.
4. Defendant Sharifa Hussein Obad (hereinafter "Obad"), is an individual residing at
202 W Elkinton Avenue, Apartment B, Chester, PA 19013 and spouse of Muammar S.
Mohamed.
5. Defendant Mohamed is the owner and/or operator of Defendant SHOP N SAVE and
entered into the Trust Agreement on behalf of said Defendant and himself on or about January 4,
2004. A true and correct copy of the Trust Agreement under which Defendants Mohamed and
SHOP N SAVE are confessing judgment is attached hereto as Exhibit "A".
6. Defendants Mohamed and Obad, with the intent to induce MEMO to enter into a
Trust Agreement with Defendant SHOP N SAVE, entered into the Personal Indemnity and
Guaranty on or about January 6, 2004. A true and correct copy of the Personal Indemnity and
Guaranty under which Defendants Mohamed and Obad are confessing judgment is attached
hereto as Exhibit B".
7. The forgoing judgment against Defendants Mohamed, Obad and SHOP N SAVE, is
not being entered by confession against a natural person in connection with a consumer credit
transaction.
8. The Plaintiff has not assigned the Trust Agreement and Personal Indemnity and
Guaranty under which judgment is being confessed.
9. The Plaintiff has not entered judgment against Defendants in any jurisdiction for the
unpaid sum of $28,339.51 or any additional amount for a total of the debt demanded here.
10. The Defendants jointly and severally acted as selling agents for Plaintiff from January
21, 2004 until August 24, 2011.
11. Pursuant to the Trust Agreement, Defendants are required to hold all monies received
by them from the sale of money orders, including money order fees (hereinafter "trust funds"),
separate and apart from other funds of the Defendant for collection by the Plaintiff through
electronic or other means.
12. The Plaintiff attempted to collect the trust funds from Defendants on or about March
10, 2011, through an Automated Clearing House (hereinafter "ACH") method.
13. The Plaintiff, or its designated check-clearing banking center did not receive the
payment of the trust funds on March 10, 2011, as required by the Trust Agreement and the
Remittance by Electronic Funds Transfer agreement dated January 6, 2004 (hereinafter "Rider")
A true and correct copy of the Rider is attached hereto as part of the Trust Agreement in Exhibit
"A»
14. The failure of Plaintiff or its designated check-clearing banking center to receive trust
funds from the Defendant in accordance with the Trust Agreement and its Rider constitutes an
event of default allowing Plaintiff to enter judgment against Defendants.
15. Pursuant to the Trust Agreement, the Plaintiff suffered damages by the Defendants
conduct as follows:
Principal: $18,429.65
Interest: $ 1,907.47
Lost Fee Income: $ 1,462.50
Attorney Fees; $ 6,539.89
Total: $ 28,339.51
16. The Defendants' most recent 10-week sales average equaled 29 money orders causing
Plaintiff Lost Fee Income of $1,462.50 as a result of Defendants' default.
17. Plaintiff demands judgment in the aforementioned amount as authorized by the
Warrant of Attorney contained in the Trust Agreement attached hereto as Exhibit A.
18. The Warrant of Attorney contained in the Trust Agreement is less than twenty (20)
years old.
WHEREFORE, Plaintiff demands judgment in the amount of $28,339.51, as authorized by
the Warrant appearing in the attached Trust Agreement, together interest from the date of
judgment and costs.
COUNT II - BREACH OF CONTRACT
(MEMO V. MOHAMED AND OBAD)
19. The averments set forth in paragraphs 1 through 17 are incorporated by reference as if
set forth in full herein.
20. Defendant Mohamed signed the above referenced Trust Agreement, and the
documents appended thereto, on behalf of The SHOP N SAVE.
21. Defendant Mohamed also signed the above-reference Personal Indemnity and
Guaranty Agreement, pursuant to which he made himself personally liable for any default by
The SHOP N SAVE under the Trust Agreement.
22. The failure of Mohamed to remit the trust funds is a violation of the terms and
provisions of the Trust Agreement, and in addition, is a breach of the fiduciary relationship
created by the Trust Agreement.
WHEREFORE, Plaintiff demands judgment in the amount of $28,339.51, as authorized by
the Warrant appearing in the attached Trust Agreement, together interest from the date of
judgment and costs.
COUNT III - BREACH OF FIDUCUARY DUTY
(MEMO V. MOHAMED AND OBAD)
23. The averments set forth in paragraphs 1 through 21 are incorporated by reference as if
set forth in full herein.
24. The trust Agreement created fiduciary obligations owed by the Defendant to the
Plaintiff.
25. In breach of their fiduciary obligations, Defendant Mohamed:
a. Failed to hold the trust finds in trust, as property of Plaintiff;
b. Deprived Plaintiff of the use and benefits of its money;
c. Failed to make the required payments or dispositions of trust funds to Plaintiff;
d. Commingled the trust funds with those of their own; and
e. Appropriated the trust funds for their own use and benefit, or elsewhere.
26. Defendant performed all of the above actins intentionally, willfully, maliciously, and
with wanton disregard for the rights of Plaintiff.
27. Defendant's actions, as enumerated above, constitute a breach of fiduciary duty to
Plaintiff under the laws of the Commonwealth of Pennsylvania and the terms of the Trust
Agreement.
WHEREFORE, Plaintiff demands judgment in the amount of $28,339.51, as authorized by
the Warrant appearing in the attached Trust Agreement, together interest from the date of
judgment and costs.
COUNT IV - CONVERSION
(MEMO V. MOHAMED AND OBAD)
28. The averments set forth in paragraphs 1 through 26 are incorporated by reference as if
set forth in full herein.
29. Plaintiff avers, on information and belief, that Defendant Mohamed converted the
trust funds owed Plaintiff to his own personal uses.
30. Defendant Mohamed's personal use of the trust funds and thus his intentional
deprivation of the use and benefit of the trust funds properly due and owing Plaintiff, constitutes
conversion under the laws of the Commonwealth of Pennsylvania.
WHEREFORE, Plaintiff demands judgment in the amount of $28,339.51, as authorized by
the Warrant appearing in the attached Trust Agreement, together with interest from the date of
judgment and costs.
COUNT V - UNJUST ENRICHMENT
(MEMO v. MOHAMED AND OBAD)
31. The averments set: forth in paragraphs 1 through 29 are incorporated by reference as if
set forth in full herein.
32. Plaintiff avers, upon information and belief, that Defendant wrongfully retained the
trust funds.
33. Plaintiff conferred the benefit of the use of the money orders and other property upon
the Defendant and said Defendant appreciated, accepted and retained such benefits.
34. The Defendant's retention of the benefits conferred by Plaintiff without paying the
value of such benefits would be inequitable and unjust.
35. As a result of Defendant's retention of the trust funds and/or Plaintiffs other
property, Defendant has damaged Plaintiff while unjustly enriching himself in the amount set
forth above together with the value of the property retained, and the benefits conferred upon
Defendant as a result of the use of the money orders and property, plus interest and costs.
WHEREFORE, Plaintiff demands judgment in the amount of $28,339.51, as authorized by
the Warrant appearing in the attached Trust Agreement, together with interest from the date of
judgment and costs.
COUNT VI - CLAIM FOR POSSESSION OF PROPERTY AND TRUST FUNDS
(MEMO V. MOHAMED AND OBAD)
36. The averments set forth in paragraphs 1 through 34 are incorporated by reference as if
set forth in full herein.
37. The Trust Agreement clearly states that all money orders and trust funds are
Plaintiff's property.
38. The terms of the Trust Agreement require the Defendant to segregate and hold apart,
all trust funds and/or proceeds from the sale of money orders.
39. The terms of the Trust Agreement clearly state that all non-trust funds and/or property
commingled with trust funds and/or proceeds are impressed with a trust for the Plaintiff's
benefit.
40. By operation of law, Plaintiff is the owner and Defendant is the trustee for all assets
so commingled.
41. Despite Plaintiff's demand for return of the trust funds and other property, Defendant
refused to remit the trust funds and other property impressed with a trust by operation of law to
Plaintiff in violation of the Trust Agreement.
WHEREFORE, Plaintiff demands judgment in the amount of $28,339.51, as authorized by
the Warrant appearing in the attached Trust Agreement, together interest from the date of
judgment and costs.
Kevin . Lutkins, Esq.
Attorney for Plaintiff
Attorney ID: 76859
Date:
?? 2?/L
VERIFICATION
The undersigned individual hereby states that he/she is an employee of the Pennsylvania
Food Merchants Association with the authority to verify the statements contained in the
foregoing complaint involving its wholly owned subsidiary, Merchants Express Money
Order Company. The undersigned individual also states that the statements made in the
aforementioned complaint are true and correct to the best of his/her knowledge, information,
and belief. The undersigned understands that the statements therein are made subject to the
penalties of 18 Pa. Cons. Stat. §4904 relating to unsworn falsifications to authorities.
David Bush
EXH I BIT A
MERCHANTS EXPRESS MONEY ORDER COMPANY/MEMO MONEY ORDER COMPANY
PERSONAL MONEY ORDER TRUST AGREEMENT
THIS AGREEMENT is made between MIItCHANTS EXPRESS MONEY ORDER COMPANY, d/b/a MEMO, MEMO MONEY ORDER COMPANY, d/b/a MEMO, Pennsylvania
Corporations or MEMO MONEY ORDER COMPANY OF NEW YORK INC, d/b/a MEMO, a New York Corporation, or any subsidiary d/b/a/ MEMO (`MEMO') and the individual(s)
and/or entities identified below, hereafter referred to as Tnstee(s).
In consideration of the mural promises contained in this agreement and mtending to be kg;* bound hereby, the parties agree as follows
1. Agency. MEMO appoints Trustee to act as a special agent of MEMO at each of Trustee's retail establishments approved fix the sale of money orders issued by MEMO. Trustee accepts such
appointment in accordance with the teams and conditions specified in this Agreement and in the attached Rider herein incorporated and made a part hereof
2 Trust Relationship. Trustee shall receive and hold in trust for MEMO all blank money orders delivered in Trustee by MEMO and all money received by Trust c fivmn the sale of money orders,
indudingwithout lnitation the money order fees established by MEMO from time to acne ("trust funds'). Trustee shad hold the tout funds separate and apart from other funds of Trustee.
3. Money Order Fees. In consideration of the services redeed to Trustee by MEMO, Trustee shad pay MEMO a fee ("Money Order Fees') specified in the attached cider. Money Order Fees
may be modified by MEMO at any time upon thirty (30) days poor notice to Trustee.
4. Matesiab Supplied by MEMO. For the sole purpose of selling money orders puus<ant to this Agreement; MEMO will supply Trustee with the following
A. An adequate supply of blank- money orders, serially numbered and consisting of two or three parts The first put being the money order instrument itself (stub/purchaser's receipt with
two
part); the second part being the accounting (store) copy, arid the third part being the purchaser's copy with a three part fora
B. An agency installation folder conta-g adequate supplies of money order reporting fours, mailing labels, lost money order claim cards, stop payment foams and various other foams
necessary for the conbmto s and ongoing operation of a money order pnwrrn Furthermore; Tnstm agrees to comply with all Federal and State regulations goveavng eurrmcy transaction
reports aid for record keeping.
C. A money order imprinter of the quality necessary to imprint the money order dollar value firmly into the money order so as to inhibit the alteration of any item Money order imprinters
shall
be of two different types consisting of bah electronic honey order dispenses and rnan ual money order imprinters. At MEMO s sole discretio:>, either type of dispenser shall be issued
to
agent. Manual money order dispenses shall contain an idantifyamg plate, which shall read "Iv[EMO" followed by the Trustee I.D. number. Electronic amoney order dispenses shall be
programmed by MEMO to indicate Trustee I.D. number on rnpnnted money orders. Such money order imprinter shall at all times continue to be the sole property of MEMO and shall
not be removed from the Trustee's retail establishment where it was originally installed by MEMO. Any other money order dispenses not owned by MEMO and used by Trustee to
imprint money orders mist be approved by MEMO.
D. Such advertising material as MEMO in its sole discretion shall deteanine.
5. Right to an Acdountmg. Notwithstanding any other provision of this Agreement, MEMO shall have the right, at all reasonable times, with or without notice, to access Trustee's premises
and to
inspect and perform an accounting of or cause its employees or agents to inspect and perform an accenting ci ; the cash receipts, Matey Order Fees, the accounting (store) copies of money
cedes soli and the Trustee's inventory of unissued money order. A charge will be assessed against Trustee to recover egmenses incurred by MEMO when an audit is made due to Trustee's
breath of this Agreement or if the audit discloses a breach. (See audit fee/penalty fee schedule).
6. Rules and Regulations. Trustee shall comply with the following rules and regulations:
A. No money order shall be issued or sold to anyone in payment of any obligation of Trustee or used in any manner for Trustee's own purposes.
B. Only cash shall be accepted as payment for money orders issued or sold No check or other paper transmitted or deposited by Trustee to or for MEMO shall constitute a remittance to
MEMO until actually collected, MEMO to have the option in each case as to whether to deposit any such paper for collection.
C Tnnstee shall safeguard all unissued money orders and the money order imprinter with the highest degree of care The care exeecised in regard to money orders shad be at least as that
applicable to cash. Trustee shall report to MEMO the serial number of each money order stolen of missing and all other information relating to the even; imrmedately upon discovery of
the fact, but in any event of later than twenty-f om (2,? hours prior to the money orders being Presented for payment to MEMO so that payment can be stopped on such missing or stolen
money orders. Such report shall be by telephone and immediately confirmed in writing. Trustee shall be solely responsible for all loses arising fran, and shall indemnify MEMO and hold
harmless regarding any and all stolen or missing money orders as well as any money order imprinters issued to Trustee. Ftrdreatrore, Trusts shall be responsible for repair or replacement
of
any issued money order dispensers stolen or damaged as a result of misuse, negligence, abuse, fire or otherwise. Said responssbulrty and liability of Trustee shall not be limited by
Trustee's
compliance with the safeguarding care, and reporting obligations set forth in this paragraph
a Tnustee shall at all tunes maintain a sound financial position and provide current financial information to MEMO as requested by MEMO. Trustee shall conduct operations so that the
funds
generated from the sale of money orders will not be in jeopardy nor seem in the opinion of a reasonable person to be in jeopardy and shall case the issuance of money orders and notify
MEMO irn medmtely, should such jeopardy arise Notification to MEMO shall be made promptly by telephone and marrodutely confirmed in writing "Sand Fuanaal Condition" shall
mean that there has been no material adverse dhange in the business, operations, condition (financial or otherwise) or prospects of the Trustee and that neither Trustee or any Guarantor
has
become itrsolvent, generally unable to pay its debts as they become due, involuntarily suspended transaction of its business, trade a general assignment for the benefit of creditors,
instituted a
proceeding desdabed in Paragraph 7B or consented to any such order for relief declaration, finding or relief described therein, institute a proceeding described in Paragraph 7B or consented
to any such appointment or to the tiling of possession by any such official or all or any substantial part of its property, whether or not any such proceeding is instituted, or has taker
any
action in firdherannce of any of the foregoing A lack of sand financial condition shall also include when Trustee furls to pay, on the date which the same is due, any sin payable hereunder
or fails to pay its creditors generally or nukes representations to MEMO or to other creditors that it must delay any such payment under conditions which, in the sole discretion of MEMO,
it
appears that Trustee is no longer in a sound financial condition
E Trustee shall provide MEMO by facsimile transmittal or registered mail three (3) weeks advance notice of proposed change(s) in the ownership of either Trustee's business,
the management of Trustee's business, the sale of fifty-one percent (519/6) or more of Trustee's assets, or the entry into or termination of business affiliated with Trustee.
Transactions included within this paragraph 6(E) include transfer of stock.- of Trustee, sale of partnership, interests, limited liability company or partnership's interest or any
similar transaction which effects a change in ownership or control of Trustee. No such transaction shall be approved until any successor entity, if any, has entered into
appropriate documentation, including a trust agreement No transactions, discussed in this subparagraph, shall be effective without the prior written approval of MEMO.
Any attempt by Trustee to effect such a transaction with MEMO approval shall be void, ab initio as to MEMO. If Trustee fails to give such notification, Trustee, as well as
its successor, shall remain liable for the payment of all sums and the performance of all duties required by the Agreement Any change of ownership or otherassignment
widsin the meaning of tlhis paragraph shall bind Trustee's successor or assignee to the tears and conditions of this Agreement
F. At Trustee's retail establishnrnt where mosey odes are sold, Trustee shall sell only MEMO mosey orders.
G. Trustee shall sell MEMO money order only at Tnnstee's specifically approved places of business or future place of business as approved by MEMO.
R Trustee shall remain open during the course of normal business horns for the duration of this agreement Famine to do so shall constitute a breach of this agreement
Term of Agreement The lean of this Agreement shall runs for a period of five (5) years from the date of this Agreement and shall renew autoutically for successive five (5) year periods
After
the initial five-year terns of this Agreement, Trustee may trrnrinate this Agnensest upon six (u) morsdhs prior writtm notice to MEMO, and MEMO may terurrtate this Agreement upon softy
(60)
days priorwuitten notice to Trustee M the event Trustee does not provide proper termrination notice, Trustee shall be responsible for lost fee income to MEMO for die duration of the
contract in
effect Fee intone shall be calculated using Trustees most recent 10-week sales average Notwithstanding the foregoing MEMO may terrinate this Agreement at any time, immediately and
without notice, and/or enter judgment according to the pro%wons of Paragraph 11 hereof upon the happening of any of the following events
MEMO or its designated check-clearing banking center does not receive the accounting documentation or payment of test finds (including money order sales proceeds and money order
fees), widen the time period and on the terms specified in the Rider to this Agreement
B. Trustee or any Guarantor commits any act of insolvency, or upon the filling by Trustee or any Guarantor of any petition under any bankruptcy, reoorg rizatim; insolvency, or moratorium
law, or any law for the relief or, or relating to debtors; or the filling of any involuntary petition against Trustee under any bankniptcy statute, of the appointment of a receiver or
trustee to take
possession of the property or assets of Trustee; or the subjection of any Trustees property or assets to any levy, seizure, assignment or sale for or by any creditor or governmental
agency
C The orrlimfoamance by Trustee of any obligations o:f Tnstee pursuant to this Agreement
The happening of any of the foregoing events shall be a default tinder this Agreement and, without any notice from MEMO, constitute a de6ult under any and all agreements of Trustee and/or
Trustee's guarantor(s) with Consumer Payment Services, or any other related company. In the event MEMO teatrirntes this agfeamnt due to a default; Trustee shall be responsible for lost
fee
income to MEMO for the duration of the contract in effect
Termination. Upon the expiration or ten ination of this kgreement; Trustee immediately shad deliver to MEMO all cash receipts from the sale of nxxwy orders, money order fees due MEMO,
accounting (store) copies of money orders issued, the money order imprinter and arty and an materials or documents provided to Trustee by MEMO pursuant to this Agreement including but
not
kTwrd to, all blame money order foam. All obligation, covenants, liabilities, and inderrnrities of Trustee hereunder shad survive the eq=ation or marmiation of this Agreerrtart A termination
notice provided by MEMO for any reason other than the expiration of dies Agreement shad be effective as of the happening of any such event causing oeanirntion under paragraph 7 hereof
or
upon the entry of confessed judgment whichever first occws
Confession of Judgment Trustee hereby irrevocably authomes and empowers any attorney or the Prothonotary or Clerk of any court of record, upon or after the occurrence of any
event described in paragraph 7, to appear for and to confess or enter judgment against Trustee for the face amount of all money orders sold pursuant to this Agreement, the
applicable Money Order Fees, accrued interest thereon, interest expense not to exceed eighteen percent (W19), and for any other suers dire MEMO under this Agreement,
together with expenses and cost of suit and reasonable attorneys fees and said fees not to exceed dirty parent (3091.) of said amount and sums, for collection as provided herein
including all legal fees inured in any Bankruptcy of Trustee. For such purpose, this Agreement or a copy hereof verified by affidavit by Trustee or on behalf of Trustee by said
attorney, Prothonotary or Clerk, shall be sufficient warrant The remedies of MEMO as provided herein and the warrants obtained herem shall be enforced in accordance with the
te®s of this Agreement and may be pursued singly, successively, or together at the sole discretion of MEMO and as ohm as occasion therefore shad occur. The failure to
exercise any such right or remedy shall in no event be construed as a waiver or release thereof The authority and power to appear for and confess or enter judgment against
Trustee shall not be exhausted by the initial exercise thereof and the same may be exercised, from time to time, as often as MEMO shall deem necessary and desirable, and this
Agreement or a copy hereof shall be a sufficient Warrant therefore One or more judgments may be confessed or entered in the same or different counties for all or part of the
sums described in this paragraph In the event any judgment enteral against Trustee hereunder a stricken or opened upon application by or on Trustees behalf for any reason
whatsoever, then any attorney or the Prothonotary or Clerk of any court of record is hereby authored and empowered to again appear for and confess or enter judgment against
Truster, subject, however, to the limitation that such subsequent entry or confession of judgment may only be done to cure any errors in prior proceedings, and only and to the
extent that such errors are subject to cure in the late proceedings.
10. Liability. Trustee, rregudless of Trustees freedom from negligence or other fault shad be absolutely Gable:
A. To make remittance to MEMO of the face arno unt of all money orders sold, the applicable Maxey Order Fees, and all other armies due MEMO trader this Agteer>erit, regardless of the
mysterious or non-mysterious disappearance or loss of any funds from Trustee's possession by reason of the honest or dishonest act of any person, act of God, or otherwise
B. To remit to MEMO the total amount of all scans of money that may be expended by or for MEMO in paying any money orders delivered by MEMO to Trustee that are subsequently
presented for payment whether or not MEMO is krgAy liable to pay the same This subparagraph shall not apply to any money order as to which Trustee shad have fully performed
Trustee's duties under this Agreement
11. Indemnity. Trustee shall mdam»fy, defend and hold haanless MEMO from and against any and all losses, damages, liabilities, loam, actions, suns, proceedings, judgrnatta, assessments,
fires,
penalties, costs, interest, and apenses (including but not limited to, settlement cost and reasonable legal and accounting fees) sustained by MEMO resulting froth or arising out of any
act or
omission to act, whether honest dishonest, negligent or othexaise by Trustee or Tnstee's employees, agents, associates or representatives (whether within or without their scope of performance).
12 Security. As furher consideration of appoirttrrratt by MEMO as its agent and in order to protect MEMUs property from conversion, Trustee hereby grants to MEMO a contimiing security
interest in Trustees hanl• acco rit, inventory amounts rmm able, assignment of lease, and fixtures at all Trustee locations. Trustee agrees to execute all documents necessary to create
or perfect
sods security interest induding but not limited to, recorded Uniform Conareroal Code-Financial Statement (UCC1(s)) fillings. Furthermore, MEMO reserves the right to requite additional
collateral as it deems necessary for ongoing approval and for the duration of the Agreement In the event Trustee changes ownership in Trustee's business in any transaction sinvlu to
those set
forth in paragraph 6(E) hereof without prior notice and approval by MEMO as set forth therein, Trustee hereby grants a serenity interest in the proceeds of any such transaction until
such time as
an approved trust account is re-established
13. Notices. Except as otherwise stated, all notices, correspondence, and communications under this Agreement shall be in writing and addressed as follows:
IF TO MEMO: MEMO IF TO TRUSTEE See attached Rider
P.O. Box 8863
Camp Hill, PA 17001-8863
14. Choice of Law. This agreement shad be construed under and in accordance with the laws of the Commonwealth of Pennsylvania, disregarding any rules relating to the choice or conflict
of laws.
The parties consent to venue and personal jurisdiction in Curiberland Canty, Pennsylvania, or, in the case of MEMO's exercise of rights under Paragraph 11 hereof an any other court of
record
in Pennsylvania or elsewhere.
15. Non-Waiver. The failure of MEMO to enforce any provision of this Agreement or its 6rlur a to declare a default under this Agreement shall not constitute a waiver or any breach or
of any
provision of this Agreement and shall not prejudice the right and/or power of MEMO to proceed as frilly as if it had not failed to enforce any provision of this Agreement
16. Enforcement in the event of default under the team of this Agreement Trustee agrees that MEMO shad, in addition to all rights it might have under the lave, have the right of seeking
specified
performance in the court of equity. Furtheatnre, Tnstee agrees to consent to the jurisdiction of a court of equity, regarding the enfor+cemaut of this Agreement and/or the enf wcemett
of
MEMO(s) rights in the event of any default by Tnstem
17. Cost of Enforcement Trustee shad pay, on demand by MEMO, an costs and expenses including reasonableamomey?s fees incurred by MEMO in connection with the enforcement of this
Agreer ent
It Construction. Ad references in this Agreement in the singular shad be constrted to include the plural where applicable and the masculine shad include all other genders. All covenants,
agreements
and obligations in this Agreement assumed by Trustee shad be, and shad be deemed to be, joint and several cone mv& Headings of the paragraphs of this Agreement are for convenience only
and do not liarit expand, or otherwise construe die provisions or contents of this Agreement
19. Entire Agreement This Agreement together with all axudarrauts and riders, related security doaanents and such rules and regulations as may be promulgated by MEMO for die issuance
of
money orders from time to time, shad costiaute the entire agrmnent between the parties hereto. There are not other agreements or understandings, written or dual, between the patties
with
respect to the subject matter of this Agreement These shall be no modifications, ama>dnents, or alterations to this Agreement unless agreed to in writing signed by all parties. This
Agreement
shad bind and impure to the benefit of tie parties, their respective heirs, successors, representatives and proper assigns.
20. Time of the Essence. Time is of the essence in tins Agreerrent and the Rides
WARNING - BY SIGNING THIS PAPER, YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL IF YOU DO NOT PAY ON TIME, A COURT
JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE, AND THE POWER OF A COURT CAN BE USED TO COLLECT FROM
YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR, WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS
PART TO COMPLY WqH AGREEMENT, OR ANY OTHER CAUSE.
Date 0 _ TRUSTEE
MERCHANTS MO ORDER COMPANY/ Corporate/Store Name
MEMO MONEY ORDER COMPANY/ i
MEMO MONEY ER COMPANY OF NEW YORK INC Signm ure ,: s Tide o &A'yU 2
ell
Trustee (Individual)„?iITT_ l
By t 777 (?/ Trustee (Irudividual) V , D b N D
Title
Tnstee (Individual
Trustee (Individual)
MERCHANTS EXPRESS MONEY ORDER COMPANY
MEMO MONEY ORDER COMPANY
PERSONAL MONEY ORDER TRUST AGREEMENT
REMITTANCE BY ELECTRONIC FUNDS TRANSFER
This Rider is an integral part of the Personal Money Order Trust Agreement being executed by the parties simultaneously
herewith. Any changes to this Rider shall serve as an authorized addendum to the original Trust Agreement when properly
executed by both parties.
TRUSTEE: ... ?/
Corporate/Business Name
Street Address.ZQ5Z-6 42 ql'A V City 0,4AGfJ-1-6e- State ;04Zip Code / 0
Telephone Numbera/i: "Z//a-C 35?3 Fax Number Agent Number 1161 ?--
Legal Entity: U Corporation ? LLC ? Partnership Qr Sole Proprietorship
MONEY ORDER FEES:
Money Order fees shall be based upon the avera e meekly volume of Money Orders sold by Trustee.
Trustee's Money Order fee shall be $_ ' '- S per item at a maximum retail selling price of $ •
Additionally, a money order dispenser fee of $ per week/month shall apply. Weekly money order dispenser
fees shall be included with Trustee's last (if applicable) regular weekly ACH draft. Monthly money order dispenser fees
shall be included on the next regular weekly ACH draft following the last calendar day of a particular month.
The minimum monthly revenue generated by Trustee's account must equal $ per month. The difference
between the minimum monthly revenue and a combination of per item money order fees/money order dispenser fees will
be calculated monthly, reported via debit transmittal notice approximately three weeks following the close of a calendar
month, and will be drafted one week thereafter as part of Trustee's regular ACH draft.
Money Order fees may be modified by MERCHANTS EXPRESS MONEY ORDER COMPANY, d/b/a MEMO, or
MEMO MONEY ORDER COMPANY, d/b/a MEMO, Pennsylvania Corporations, or MEMO MONEY ORDER
COMPANY OF NEW YORK, INC., d/b/a/ MEMO, a New York Corporation ("MEMO'S at any time upon thirty (30)
days notice to Trustee or when MEI\20's ten week sales analysis indicates per item weekly volume not consistent with
MEMO's fee rate schedule.
PROCEDURE FOR SALE OF MONEY ORDERS:
Trustee shall sell money orders strictly pursuant to the following procedures:
A. Trustee shall sell only MEMO money orders in each retail establishment. Trustee shall ensure that the money orders
are held secure at all times, and that such money orders along with the funds generated from such sales, will not be in
jeopardy, nor seem in the opinion of a reasonable person, to be in jeopardy, and shall cease the issuance of money
orders and notify MEMO immediately, should such jeopardy arise.
B. Trustee shall sell money orders in strict numerical sequence in accordance with the number printed on each blank
money order.
C. The face amount of any money order sold by Trustee shall not exceed the sum of
D. Trustee shall not issue a money order until such time as Trustee has imprinted the applicable amount on the face of the
money order, utilizing only the imprinter approved by MEMO and no other imprinter; collected from the purchaser
the face amount of the money order and an additional amount determined by Trustee's retail fee; and removed and
retained the accounting (store) copy of the money order.
E. If the money order imprinter is not in proper operating condition or properly inked, Trustee shall immediately report
such fact to MEMO's Help Line at 1-800-864-5246.
F. MEMO may deliver blank money orders to Trustee, or to any agent, employee or representative of Trustee, by
whatever means MEMO deems appropriate, and MEMO is authorized to receive and issue a receipt for blank money
orders on behalf of Trustee.
TERMINATION:
Upon termination, cancellation, or breach of the Trust Agreement by Trustee, Trustee hereby agrees to one day's written
demand notice by MEMO to forthwith return by next day US mail or common mail carrier all Trust instruments in its
possession, including but not limited to money order imprinting machines, all blank money order forms, the face amount
and applicable money order fees due MEMO to date, and all other outstanding balances due MEMO, along with any other
materials supplied to Trustee by MEMO in accordance with the Trust Agreement (hereinafter "Trust Property'. In the
event that Trustee fails to return such items upon one day's written demand, Trustee hereby authorizes MEMO or its
representatives or appointed designees to appear at Trustee's place of business and peaceably obtain custody of all such
Trust Property listed herein. The costs of any repossession by MEMO shall be borne exclusively by the Trustee.
TRUST FUNDS REMITTANCE:
Any Trustee utilizing electronic money order dispensing equipment will be forwarded a weekly money order Sales
Summary Report, prior to the close of the sales reporting day. The weekly money order Sales Summary Report will reflect
money order sales for the applicable reporting period.
SALES PERIOD:
BEGINNING DAY ENDING DAY REPORTING DAY AC /WIRE
A) ;rj ?A- - D 4
I,q
W15- Trustee will be provided all pertinent reportinVormation on the weekly money order Sales Summary Report. As per
predetermined schedules, MEMO will initiate an electronic transfer of funds due MEMO, including the face value of
money orders sold, plus applicable fees due MEMO, from Trustee's bank account to MEMO's bank account. If Trustee's
method of remittance is via wire, Trustee will initiate a wire transfer of applicable money order sales proceeds plus
applicable money order fees from amount Trustee's money order Trust Account to the designated MEMO bank deposit
account prior to 2:00 PM on the designated remittance day. All funds due MEMO must be included with remittance when
due. All outstanding statement balances due at this time must be included with remittance, including debits due MEMO
and/or credits due Trustee. If Trustee changes banks and/or bank accounts as identified in the Trustee's EFT agreement,
Trustee shall immediately inform MEMO of such change by telephone and promptly confirm in writing. This arrangement
shall not be revoked unless all funds due MEMO are paid in full. If Trustee did not sell any money orders during the Sales
Period, Trustee must still remit payment for outstanding balances as notified by MEMO. All voided money orders must be
voided through the electronic money order dispenser during the sale date only to avoid charges to Trustee's account. If a
voided money order is not voided in the money order dispenser, Trustee shall write, "NOT USED FOR PURPOSE
INTENDED" on the backside of the original money order and deposit the money order into Trustee's bank account. If
Trustee should write "void" on the face of the original money order, Trustee shall forward the original voided money order
to the MEMO office and MEMO will issue a refund to Trustee in the form of a replacement money order. Trustee shall
ensure that the electronic money order dispenser is available for MEMO to electronically transmit polling data on a daily
basis. If the electronic money order dispenser does not poll consistently, Trustee must provide MEMO with the money
order sales date manually as requested. Trustee ensures that the electric money order sales dispenser is always turned on and
always promptly connected to a clear telephone line during electronic polling transmission times.
WEEVorer COUNT NG D REMITT CE:
On _ and of each week, MEMO will calculate a weekly
money ale s total fro daily data obtained from Truste via electronic polling transmission of the money order
dispenser. MEMO will forward the weekly Money Order Sales Summary Report to Trustee as stated above. Trustee shall
reconcile the weekly Money Order Sales Summary Report with its records and inform MEMO of any differences. Trustee
must retain the accounting (store) copies at its location for a period of three months from the reporting period. Trustee
shall forward the accounting (store) copies to the MEMO office upon request. If the accounting (store) copies are not
requested during the three month retention period, Trustee shall discard the accounting (store) copies at its own discretion.
TRUSTEE
Corporate/Store Name ??Tz? S?y(J1 /v J?`
Signature `l??1a?G
TO ,r
Title -? ?P)
Date (,lc)q
MERCHANTS EXPRESS MONEY ORDER CO.
MEMO N
Signature
Title _
Date
ELECTRONIC: January 30, 2003
EXHIBIT B
MERCHANTS EXPRESS MONEY ORDER COMPANY
MEMO MONEY ORDER COMPANY
PERSONAL INDEMNITY AND GUARANTY
Intending to be legally bound hereby, and in order to induce MERCHANTS EXPRESS MONEY ORDER COMPANY, d/b/a/ MEMO,
MEMO MONEY ORDER COMPANY, d/b/a/ MEMO, Pennsylvania Corporations, or MEMO MONEY ORDER COMPANY OF
NEW YORK, INC, a New York Corporation, or any subsidiary d/b/a/ MEMO (-MEMO' to sign that certain Personal Money Order
Trust Agreement, Rider and amendments or changes thereto as may be in effect from time to time (collectively the "Agreement's with:
CS??C? l/C
Corporate/Business Name Swap /0 ?SX(
. ?/Y C f Stay Zip Cod dl
Street Addres Ci
u,?A)
and in consideration of its so doing, the Undersigned, jointly and severally, absolutely and unconditionally, personally guarantee and
become surety for Trustee's full performance of the Agreement, including without limitation the prompt and punctual payment of all
amounts becoming due from Trustee to MEMO thereunder, and shall indemnify and hold MEMO harmless against any and all damage,
loss expense (including attorney's fees) and/or liability sustained by it by reason of or related to Trustee's failure to perform the Agreement.
The Agreement may be modified by MEMO and Trustee without notice to the undersigned and without affecting this Guaranty. MEMO
may enforce this Guaranty against the undersigned in the Court of Common Please of Cumberland County, Pennsylvania (to which
jurisdiction of said Court the Undersigned consents), as well as in any other court and state having jurisdiction, whether or not any action is
ever taken by MEMO against Trustee.
The Undersigned hereby waive all notices whatsoever with respect to this Guaranty except for notice of demand for payment from the
Undersigned. The Undersigned hereby consent to the taking of, or the failure to take, from time to time without notice to the
Undersigned, any action of any nature whatsoever with respect to the Agreement, including but not limited to any renewals, extensions,
modifications, postponements, compromises, indulgences, waivers, surrenders exchanges, releases, and failure to pursue or preserve rights
against any person, and the Undersigned shall remain fully liable hereon notwithstanding any of the foregoing. Except as provided herein,
the Undersigned hereby waive all defenses whatsoever to the Undersigned's liability hereunder except the defenses of (1) payment, and (2)
lack of notice as requited in the Agreement.
Upon default hereunder, the Undersigned hereby authorizes and empowers irrevocably the Prothonotary or any Clerk or any attorney of
any court of record of Pennsylvania or elsewhere to appear for and to confess judgment against the Undersigned for all amounts due
hereunder, plus all costs of suit, legal interest to date, and thirty percent (309/6) added for attorney's fees, releasing errors, waiving stay of
execution, and authorizing the immediate issue of a writ of execution, all in accordance with the Pennsylvania Rules of Civil Procedure.
For such purpose, this Guaranty or a copy hereof verified by affidavit by the Undersigned or on behalf of the Undersigned by said
Prothonotary, Clerk or attorney, shall be sufficient warrant. The authority and power to appear for and to confess or enter judgment
against the Undersigned shall not be exhausted by the initial exercise thereof, the same may be exercised, from time to time, as often as
MEMO shall deem necessary and desirable, and this Guaranty shall be a sufficient warrant therefor. The Undersigned acknowledge that by
authorizing MEMO to confess judgment hereunder, the Undersigned have waived the right to notice in a prior judicial proceeding to
determine their rights and liabilities.
This Guaranty is given in connection with and evidences the obligation of the Undersigned to make payment in connection with a
commercial transaction. This Guaranty is irrevocable and shall be binding and operative until such time as MEMO shall have been paid all
sums owed to it under the Agreement and that may arise pursuant to this Guaranty. This Guaranty shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania, disregarding any rules relating to the choice or conflict of laws.
WARNING - BY SIGNING THIS PAPER, YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL IF YOU DO NOT
PAY ON TIME, A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE, AND
THE POWER OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE
AGAINST THE CREDITOR, WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO
COMPLY WITH AGREEMENT, OR ANY OTHER CAUSE.
Guarantor's Signature
YhUAMW9.s ---k
Print Guarantor's Name
Home Address
Q?
City 61r State Zip Code
?
Date
S 1 X74 0 b A
Guarantor's Signature
Print Spouse's Name
Home Address
Ink
City , State Zip Code
Date
*If not married, please indicate by affixing "N/A" on line for second Guarantor's signature. November 7, 2002
Merchants Express
Money Order Company, Inc
PLAINTIFF
V.
Muammar S Mohamed
Individually, jointly and severally,
DEFENDANT
and
Sharifa Hussein Obad
Individually, jointly and severally,
DEFENDANT
and
Chester Shop and Save Food Market, Inc
also known as Chester Shop N Save
Corporation
DEFENDANT
COURT OF COMMON PLEAS,
CUMBERLAND COUNTY
is - 36 3 - Owl lem
2012
AFFIDAVIT OF ADDRESSES
COMMONWEALTH OF PENNSYLVANIA SS:
COUNTY OF CUMBERLAND
The undersigned being duly sworn according to law, deposes and states that he is an
employee of the Pennsylvania Food Merchants Association with the authority to make this
Affidavit on behalf of the Plaintiff, Merchants Express Money Order Company, Inc. a wholly
owned subsidiary of the Pennsylvania Food Merchants Association. The undersigned also states
that the address of the Plaintiff is: 1029 Mumma Road, Wormleysburg, Pennsylvania, 17043 and
that the addresses of the Defendants are as follows:
SHOP N SAVE
1516 W 9th Street
Chester, PA 19013
SWORN to and subscribed
before me this I ,
day of V 1, , 2012.
N &4y P i lic
Muammar Mohamed Sharifa Hussein Obad
202 W. Elkinton Ave 202 W. Elkinton Ave
Apartment B Apartment B
Chester, PA 190 Chester, POly K I Davi
d Bush '
COMMONWEALTH OF PENNSYLVANIA
Notarial S:Nota Jennifer R. Hamelin, Public
Wormleysbu rg Boro, Cud County
My Commission Expire2, 2012
Member, Pennsylvania Association of Notaries
Merchants Express COURT OF COMMON PLEAS,
Money Order Company, Inc. CUMBERLAND COUNTY
PLAINTIFF
/a 3 6 3 66"j
v.
Muammar S Mohamed 12012
Individually, jointly and severally,
DEFENDANT
and
Sharifa Hussein Obad
Individually, jointly and severally,
DEFENDANT
and
Chester Shop and Save Food Market, Inc.
also known as Chester Shop N Save
Corporation
DEFENDANT
: No.
AFFIDAVIT OF NON-MILITARY SERVICE
COMMONWEALTH OF PENNSYLVANIA SS:
COUNTY OF CUMBERLAND
The undersigned being duly sworn according to law, deposes and states that he is an
employee of the Pennsylvania Food Merchants Association with the authority to make this
Affidavit on behalf of the Plaintiff, Merchants Express Money Order Company, a wholly owned
subsidiary of the Pennsylvania Food Merchants Association. The undersigned also states that to
the best of my knowledge, information, and belief, the Defendants are not in the Military or
Naval Service of the United States or its Allies, or o erwise within the provisions of the
Soldiers' and Sailors' Civil Relief Act of Congress AN?s amended.
10/1-01
David Bush
SWORN to and subscribed
before me this 1 ,
day of r , 2012.
COMMONWEALTH OF PENNSYLVANIA
Notarial Sea
Jennifer R. Hamelin, Notary Public
Wormleysburg Boro, Cumberland County
My Commission Expires July 12, 2012
Member, Pennsvivania Association of Notaries
No ar Puti is
Merchants Express COURT OF COMMON PLEAS,
Money Order Company, Inc. CUMBERLAND COUNTY
PLAINTIFF
is - 3 6 3, -- Oivd 7etou
v.
Muammar S Mohamed 12012
Individually, jointly and severally,
DEFENDANT
and No.
Sharifa Hussein Obad
Individually, jointly and severally,
DEFENDANT
and
Chester Shop and Save Food Market, Inc.
also known as Chester Shop N Save
Corporation
DEFENDANT
NOTICE
NOTICE IS GIVEN THAT A JUDGMENT IN THE ABOVE-CAPTIONED
MATTER HAS BEEN ENTERED AGAINST YOU.
HO A
If you have any questions concerning the above, please contact:
Kevin M. Lutkins, Esq.
Merchants Express Money Order Company
1029 Mumma Road
P.O. Box 8863
Camp Hill, PA 17001-8863
(800) 543-8207