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HomeMy WebLinkAbout12-36311 Merchants Express Money Order Company, Inc. PLAINTIFF V. Ernest Kayda, Jr. Individually, jointly and severally, DEFENDANT and Wendy L Krezan Individually, jointly and severally, DEFENDANT and Hideaway Mini Mart Inc. doing business as Hideaway Mini Mart Corporation DEFENDANT COURT OF COMMON PLEAS, CUMBERLAND COUNTY !a - s4o,M Na Teter 2012 No. CONFESSION OF JUDGMENT 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: $12,451.67 Interest: $ 93.39 Lost Fee Income: $ 0.00 Attorney Fees: $ 3,763.52 Total: $ 16,308.58 evin M. utkins, Esq. Attorney for Defendants ?(o-OOP/J i177/ Merchants Express COURT OF COMMON PLEAS, Money Order Company, Inc. CUMBERLAND COUNTY PLAINTIFF v. (x' C-c,,,? , 1 Ernest Kayda, Jr. , 2012 Individually, jointly and severally, DEFENDANT' and No. 3?, ( ?d?k Wendy L Krezan Individually, jointly and severally, DEFENDANT' and Hideaway Mini Mart Inc. doing business as Hideaway Mini Mart Corporation DEFENDANT' COMPLAINT IN CONFESSION OF JUDGMENT FOR MONEY COUNT I - CONFESSION OF JUDGMENT (MEMO V. HIDEAWAY, KAYDA AND KREZAN) 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 Hideaway Mini Mart Inc. (hereinafter "HIDEAWAY"), is a corporation located at 1306 Brookline Boulevard, Pittsburgh, PA 15226 and doing business as Hideaway Mini Mart. 3. Defendant Ernest Kayda, Jr. (hereinafter "Kayda"), is an individual residing at 876 Van Kirk Street, Clairton, PA 15025 and the spouse of Wendy Krezan. 4. Defendant Wendy Krezan (hereinafter "Krezan"), is an individual residing at 876 Van Kirk Street, Clairton, PA 15025 and spouse of Ernest Kayda, Jr. Defendant Kayda is the owner and/or operator of Defendant HIDEAWAY and entered into the Trust Agreement on behalf of said Defendant and himself on or about February 5, 1998. A true and correct copy of the Trust Agreement under which Defendants Kayda and HIDEAWAY are confessing judgment is attached hereto as Exhibit "A". 6. Defendants Kayda and Krezan, with the intent to induce MEMO to enter into a Trust Agreement with Defendant HIDEAWAY, entered into the Personal Indemnity and Guaranty. A true and correct copy of the Personal Indemnity and Guaranty under which Defendants Kayda and Krezan are confessing judgment is attached hereto as Exhibit "B". 7. The forgoing judgment against Defendants Kayda, Krezan and HIDEAWAY, 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 $16,308.58 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 May 27, 1998 until April 11, 2012. 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 April 2, 2012, 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 April 2, 2012, as required by the Trust Agreement and the Remittance by Electronic Funds Transfer agreement dated February 5, 1998 (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: $12,451.67 Interest: $ 93.39 Lost Fee Income: $ 0.00 Attorney Fees. $ 3,763.52 Total: $16,308.58 16. The Plaintiff is not making a claim for lost fee income. 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 $16,308.58, 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. KAYDA AND KREZAN) 19. The averments set forth in paragraphs 1 through 17 are incorporated by reference as if set forth in full herein. 20. Defendant Kayda signed the above referenced Trust Agreement, and the documents appended thereto, on behalf of The HIDEAWAY. 21. Defendant Kayda also signed the above-reference Personal Indemnity and Guaranty Agreement, pursuant to which he made himself personally liable for any default by The HIDEAWAY under the Trust. Agreement. 22. The failure of Kayda 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 $16,308.58, 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. KAYDA AND KREZAN) 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 Kayda: 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 $16,308.58, 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. KAYDA AND KREZAN) 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 Kayda converted the trust funds owed Plaintiff to his own personal uses. 30. Defendant Kayda'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 $16,308.58, 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. KAYDA AND KREZAN) 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 Plaintiff's 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 $16,308.58, 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. KAYDA AND KREZAN) 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 $16,308.58, as authorized by the Warrant appearing in the attached Trust Agreement, together interest from the date of judgment and costs. Kevin M. u kms, Esq. Attorney for Plaintiff Attorney ID: 76859 Date: ?as/z 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. - 'J kz--" 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 MERCHANTS EXPRESS MONEY ORDER COMPANY or MEMO MONEY ORDER COMPANY, dlb/a MEMO, Pennsylvania corporations ('MEMOS and the individual(s) and/or entities identified below, hereafter referred to as Merchant(s). in consideration of the mutual promises contained in this Agreement and intending to be legally bound hereby, the parties agree as follows: 1. Agency. MEMO appoints Merchant to act as a special agent of MEMO at each of Merchant's retail establishments approved for the sale of money orders issued by MEMO. Merchant accepts such appointment in accordance with the terms and conditions specified in this Agreement and in the attached Rider herein incorporated and made a part hereof. 2- Trust Relationship. Merchant shall receive and hold in trust for MEMO all blank money orders delivered to Merchant by MEMO and all money received by Merchant from the sale of money orders, including without limitation the money order fees established by MEMO from time to time ("trust funds'). Merchant shall hold the trust funds separate and apart from other funds of Merchant 3. Money Order Fees. In consideration of the services rendered to Merchant by MEMO, Merchant shall pay MEMO a fee ("Money Order Fees/ specified in the attached Rider. Money Order Fees may be modified by MEMO at any time upon thirty (30) days prior notice to Merchant 4. Materials Supplied by MEMO. For the sole purpose of selling money orders pursuant to this Agreement, MEMO will supply Merchant with the following A. An adequate supply of blank money orders, serially numbered and consisting of two or three parts: The first part being the money order instrument itself (stub/ purchaser's receipt with 2 part); the second part being the accounting (store) copy, and the third part being the purchaser's copy with a three part form. B. An agency installation folder containing adequate supplies of money order reporting forts, mailing labels, lost money order claim cards, stop payment forms and various other forms necessary for the continuous and on-going operation of a money order program. Furthermore, Agent agrees to comply with all Federal and State regulations governing currency transaction reports and 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 both electronic money order dispensers and manual money order imprinters. At MEMO's sole discretion, either type of dispenser may be issued to agent Manual money order dispensers shall contain an identifying plate which shall read `MEMO' followed by the merchant agent I.D. number. Electronic money order dispensers shall be programmed by MEMO to indicate Agent I.D. number on imprinted money orders. Such money order imprinters shall at all times continue to be the sole property of MEMO and shall not be removed from the Merchant's retail establishment where it was originally installed by MEMO. Any other money order dispensers not owned by MEMO and used by Agent to imprint money orders must be approved by MEMO. D. Such advertising material as MEMOin its sole discretion shall determine. 5. Right to an Accounting. Notwithstanding any other provision of this Agreement, MEMO shall have the right, at all reasonable times, with or without notice, to access Merchants premises and to inspect and perform an accounting of, or cause its employees or agents to inspect and perform an accounting of, the cash receipts, Money Order Fees, the accounting (store) copies of money orders sold and the Merchant's inventory of unissued money orders. A charge will be assessed against Merchant to recover expenses incurred by MEMO when an audit is made due to Merchant's breach of this Agreement or if the audit discloses a breach. (See audit fee/penalty fee schedule). 6. Rules and Regulations. Merchant 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 Merchant or used in any manner for Merchant'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 Merchant 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. Merchant shall safeguard all unissued money orders and the money order imprinter with the highest degree of care. The care exercised in regard to money orders shall be at least as that applicable to cash. Merchant shall report to MEMO the serial number of each money order stolen or missing, and all other information relating to the event, immediately upon discovery of the fact, but in any event not later than twenty-tour (24) 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. Merchant shall be solely responsible for all losses arising from, 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 Agent Futhermore, Agent 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 responsbility and liability of Merchant shall not be limited by Merchant's compliance with the safe guarding, care, and reporting obligations set forth in this paragraph . D. Merchant shall at all times maintain a sound financial position and provide current financial information to MEMO as requested by MEMO. Merchant 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 cease the issuance of money orders and notify MEMO immediately, should such jeopardy arise. Notification to MEMO shall be made promptly by telephone and immediately confirmed in writing. E. Merchant shall provide MEMO by faxcimile transmittal or registered mail three (3) weeks advance notice of proposed change(s) in the ownership of either Merchant's business. the management of Merchant's business, the sale of fifty-one percent (51%) or more of Merchant's assets, or the entry into or termination of businesses affiliated with Merchant No assignment, discussed in the subparagraph, shall be effective without the prior written approval of MEMO. Any attempt by Merchant shall be void, ab initao. If Merchant fails to give such notification, Merchant, as well as its successor, shall remain liable for the payment of all sums and the performance of all duties required by this Agreement F. At Merchant's retail establishments where money orders are sold, Merchant shall sell only MEMO money orders. G Merchant shall sell MEMO money orders only at Merchant's specifically approved places of business or future places of business as approved by MEMO. H. Merchant shall remain open during the course of normal business hours for the duration of this agreement Failure to do so shall constitute a breach of this agreement Term of Agreement The term of this Agreement shall run for a period of two (2) years from the date of this Agreement and shall renew automatically for successive two (2) year periods. After the initial two year term of this Agreement, Merchant may terminate this Agreement upon six (6) months prior written notice to MEMO, and MEMO may terminate this Agreement upon sixty (60) days prior written notice to Merchant. Notwithstanding the foregoing, MEMO may terminate this Agreement at any time, immediately and without notice, and/or enter judgment according to the provisions of Paragraph 11 hereof, upon the happening of any of the following events: A. MEMO or its designated check-clearing banking center does not receive the accounting documentation or payment of trust funds (including money order sale proceeds and Money Order Fees), within the time period and terms specified in the Rider to this Agreement B. The non-performance by Merchant of any obligations of Merchant pursuant to this Agreement C. Merchant or any Guarantor commits any affirmative act of insolvency, or upon the filing by Merchant or any Guarantor of any petition under any bankruptcy, reorganization, insolvency, or moratorium law, or any law for the relief of, or relating to debtors; or the filing of any involuntary petition against Merchant under any bankruptcy statute, or the appointment of a receiver or trustee to take possession of the property or assets of Merchant; or the subjection of any of Merchant's property or assets to any levy, seizure, assignment or sale for or by any creditor or governmental agency. Termination. Upon the expiration or termination of this Agreement, Merchant immediately shall deliver to MEMO all cash receipts from the sale of money orders, money order fees due MEMO. accounting (store) copies of money orders issued, the money order imprinter and any and all materials or documents provided to Merchant by MEMO pursuant to this Agreement, mciuding, but not limited to, all blank money order forms. All obligations, covenants, liabilities, and indemmoes ui Merchant hereunder shall survive the expiration or termination of this Agreement Uability. Merchant, regardless of Merchant s freedom from negligence or other fault, shall be absolutely liable: A . To make remittance to MEMO of the face amount of all money orders sold, the applicable Money Order Fees, and all other monies due MEMO under ,,his Agreement, regardless of the mysterious or non-mysterious disappearance or loss of any funds from Merchant'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 sums of money that may be expended by or for MEMO in paying any money orders delivered by MEMO to Merchant that are subsequently presented for payment, whether or not MEMO is legally liable to pay the same. This subparagraph shall not apply to any money order as to which Merchant shall have fully performed Merchant's duties under this Agreement 10. Indemnity. Merchant shall indemnify, defend and hold harmless MEMO from and against any and all losses, damages, liabilities, claims, actions, suits, proceedings, judgments, assessments, fines, penalties, costs, interest, and expenses (including, but not limited to, settlement cost and reasonable lop[ and accounting fees) sustained by MEMO resulting from or arising out of any act or omission to act, whether honest, dishonest, negligent or otherwise by Merchant or Merchant's employees, agents, associates or representatives (whether within or without their scope of performance). 11. Confession of Judgment Merchant hereby irrevocably authorizes and empowers any attomey 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 Merchant 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 (181/6), and for any other sums due MEMO under this Agreement, together with expenses and costs of suit and reasonable attorney's fees said fees not to exceed thirty percent (30%) of said amounts and sums, for collection as provided herein. For such purpose, this Agreement or a copy hereof verified by affidavit by Merchant or on behalf of Merchant by said attorney. Prothonotary or Clerk, shall be sufficient warrant The remedies of MEMO as provided herein and the warrants contained herein shall be enforced in accordance with the terms of this Agreement and may be pursued singly, successively, or together at the sole discretion of MEMO and as often as occasion therefor shall 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 Merchant 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 therefor. 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 entered against Merchant hereunder is stricken or opened upon application by or on Merchants behalf for any reason whatsoever, then any attorney or the Prothonotary or Clerk of any court of record is hereby authorized and empowered to again appear for and confess or enter judgment against Merchant; 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 later proceedings. Merchant acknowledges that by authorizing MEMO to confess judgment hereunder, Merchant waives the right to notice in a prior judicial proceeding to determine its rights and liabilities. Merchant further acknowledges that MEMO may obtain a judgment against Merchant without its prior knowledge or consent and without Merchant's opportunity to raise any defense, set off, counterclaim or other claim Merchant may have. Merchant expressly waives such rights as an explicit and material part of the consideration for MEMO's agreement to make money orders available to Merchant 12. Security. As further consideration of appointment by MEMO as it's anent, and in order to protect MEMO's property from conversion, Merchant hereby grants to MEMO a continuing security interest in Merchants bank account, inventory, accounts receivable and fodures at all Merchant locations. Merchant agrees to execute all documents necessary to create or perfect such security interest, including, but not limited to, recorded Uniform Commercial Code-Financial Statement ( UCCt(s)) filings. Furthermore, MEMO reserves the right to require additional collateral as it deems necessary for ongoing approval and for the duration of this agreement 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 1029 Mumma Road P.O. Box 8863 Camp Hill, PA 17001-8863 IF TO MERCHANT: See attached Rider. 14. Choice of Law. This Agreement shall 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 Cumberland County, Pennsylvania, or, in the case of MEMO's exercise of rights under Paragraph 11 hereof, in 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 failure to declare a default under this Agreement shall not constitute a waiver of any breach or of any provision of this Agreement and shall not prejudice the right and/or power of MEMO to proceed as fully as if it had not failed to enforce any provision of this Agreement. 16. Enforcement In the event of default under the terms of this agreement, Merchant agrees that MEMO shall, in addition to all other rights it may have under the law, have ft right of seeking specific performance in a court of equity. Furthermore, Merchant agrees to consent to the jurisdiction of a court of equity regarding the enforcement of this agreement and/or the enforcement of MEMO(s) rights in the event of any default by Merchants. 17. Cost of Enforcement. Merchant shall pay, on demand by MEMO, all costs and expenses including reasonable attorney's fees incurred by MEMO in connection with the enforcement of this Agreement in a court of equity. 18. Construction. All references in this Agreement in the singular shall be construed to include the plural where applicable and the masculine shall include all other genders. All covenants, agreements and obligations in this Agreement assumed by Merchant shall be, and shall be deemed to be, joint and several covenants. Headings of the paragraphs of this Agreement are for convenience only and do not limit, expand, or otherwise construe the provisions or contents of this Agreement 19. Entire Agreement This Agreement, together with all attachments and riders, related security documents and such rules and regulations as may be promulgated by MEMO for the issuance of money orders from time to time, shall constitute the entire agreement between the parties hereto. There are no other agreements or understandings, written or oral, between the parties with respect to the subject matter of this agreement. There shall be no modifications, amendments, or alterations to this agreement unless agreed to in writing, signed by all parties. This agreement shall bind and inure to the benefit of the parties, their respective heirs, successors, representatives and proper assigns. 20. Time of the Essence. Time is of the essence in this Agreement and the Rider Z _ Date MERCHANT Cor orate or Store Name f MERCHANTS EXPRESS MONEY RDER COMPANY/ MEMO MON Y B Title BY Merchant (Individual) `? Title LXX? Merchant (Individual) F000995 Merchant (individual) 10 MERCHANTS EXPRESS MONEY ORDER COMPANY/MEMO MONEY ORDER COMPANY PERSONAL MONEY ORDER TRUST AGREEMENT THIS AGREEMENT is made between MERCHANTS EXPRESS MONEY ORDER COMPANY or MEMO MONEY ORDER COMPANY, d/b/a MEMO, Pennsylvania corporations ("MEMO') and the individual(s) and/or entities identified below, hereafter referred to as Merchant(s). In consideration of the mutual promises contained in this Agreement and intending to be legally bound hereby, the parties agree as follows: 1. Agency. MEMO appoints Merchant to act as a special agent of MEMO at each of Merchant's retail establishments approved for the sale of money orders issued by MEMO. Merchant accepts such appointment in accordance with the terms and conditions specified in this Agreement and in the attached Rider herein incorporated and made a part hereof. 2. Trust Relationship. Merchant shall receive and hold in trust for MEMO all blank money orders delivered to Merchant by MEMO and all money received by Merchant from the sale of money orders, including without limitation the money order fees established by MEMO from time to time ("trust funds'). Merchant shall hold the trust funds separate and apart from other funds of Merchant 3. Money Order Fees. In consideration of the services rendered to Merchant by MEMO, Merchant shall pay MEMO a fee ("Money Order Feed specified in the attached Rider. Money Order Fees may be modified by MEMO at any time upon thirty (30) days prior notice to Merchant 4. Materials Supplied by MEMO. For the sole purpose of selling money orders pursuant to this Agreement, MEMO will supply Merchant with the following A An adequate supply of blank money orders, serially numbered and consisting of two or three parts: The first part being the money order instrument itself (stub/ purchaser's receipt with 2 part); the second part being the accounting (store) copy, and the third part being the purchaser's copy with a three part form. B. An agency installation folder containing adequate supplies of money order reporting forms, mading labels, lost money order claim cards, stop payment forms and various other forms necessary for the continuous and on-going operation of a money order program. Furthermore, Agent agrees to comply with all Federal and State regulations governing currency transaction reports and 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 both electronic money order dispensers and manual money order imprinters. At MEMO's sole discretion, either type of dispenser may be issued to agent Manual money order dispensers shag contain an identifying plate which shall read "MEMO" followed by the merchant agent I.D. number. Electronic money order dispensers shall be programmed by MEMO to indicate Agent I.D. number on imprinted money orders. Such money order imprinters shag at all times continue to be the sole property of MEMO and shall not be removed from the Merchant's retail establishment where it was originally installed by MEMO. Any other money order dispensers not owned by MEMO and used by Agent to imprint money orders must be approved by MEMO. D. Such advertising material as MEMO-in its sole discretion shag determine. Right to an Accounting. Notwithstanding any other provision of this Agreement, MEMO shall have the right, at all reasonable times, with or without notice, to access Merchants premises and to inspect and perform an accounting of, or cause its employees or agents to inspect and perform an accounting of, the cash receipts, Money Order Fees, the accounting (store) copies of money orders sold and the Merchants inventory of unissued money orders. A charge will be assessed against Merchant recover expenses incurred by MEMO when an audit is made due to Merchants breach of this Agreement or if the audit discloses a breach. (See audit fee/penalty fee schedule). 6. Rules and Regulations. Merchant 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 Merchant or used in any manner for Merchants own purposes. B. Only cash shag be accepted as payment for money orders issued or sold. No check or other paper transmitted or deposited by Merchant 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. Merchant shall safeguard all unissued money orders and the money order imprinter with the highest degree of care. The care exercised in regard to money orders shall be at least as that applicable to cash. Merchant shall report to MEMO the serial number of each money order stolen or missing, and all other information relating to the event, immediately upon discovery of the fact, but in any event not later than twenty-four (24) 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. Merchant shag be solely responsible for all losses arising from, 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 Agent Futhermore, Agent 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 responsibility and liability of Merchant shall not be limited by Merchant's compliance with the safe guarding, care, and reporting obligations set forth in this paragraph . D. Merchant shall at all times maintain a sound financial position and provide current financial information to MEMO as requested by MEMO. Merchant 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 cease the issuance of money orders and notify MEMO immediately, should such jeopardy arise. Notification to MEMO shall be made promptly by telephone and immediately confirmed in writing. E. Merchant shag provide MEMO by faxcimile transmittal or registered mail three (3) weeks advance notice of proposed change(s) in tho.ownership.of -either Merchant's business. the management of Merchant's business, the sale of fifty-one percent (511%) or more of Merchants assets or the entry into or termination of businesses affiliated with Merchant No assignment, discussed in the subparagraph, shall be effective without the prior written approval of MEMO. Any attempt by Merchant shag be void, ab initio. If Merchant fails to give such notification. Merchant, as well as its successor, shall remain liable for the payment of all sums and the performance of all duties required by this Agreement F. At Merchants retail establishments where money orders are sold, Merchant shall sell only MEMO money orders. Q_ Merchant shall sell MEMO money orders only at Merchants specifically approved places of business or future places of business as approved by MEMO. H. Merchant shall remain open during the course of normal business hours for the duration of this agreement Failure to do so shall constitute a breach of this agreement 7. Term of Agreement. The term of this Agreement shall run for a period of two (2) years from the date of this Agreement and shall renew automatically for successive two (2) year periods. After the initial two year term of this Agreement, Merchant may terminate this Agreement upon six (6) months prior written notice to MEMO, and MEMO may terminate this Agreement upon sixty (60) days prior written notice to Merchant Notwithstanding the foregoing, MEMO may terminate this Agreement at any time, immediately and without notice, and/or enter judgment according to the provisions of Paragraph 11 hereof, upon the happening of any of the following events: A MEMO or its designated check-clearing banking center does not receive the accounting documentation or payment of trust funds (including money order sale proceeds and Money Order Fees), within the time period and terms specified in the Rider to this Agreement B. The non-performance by Merchant of any obligations of Merchant pursuant to this Agreement C. Merchant or any Guarantor commits any affirmative act of insolvency, or upon the filing by Merchant or any Guarantor of any petition under any bankruptcy, reorganization, insolvency, or moratorium law, or any law for the relief of, or relating to debtors: or the firing of any involuntary petition against Merchant under any bankruptcy statute, or the appointment of a receiver or trustee to take possession of the property or assets of Merchant; or the subjection of any of Merchant's property or assets to any levy, seizure, assignment or sale for or by any creditor or governmental agency. Termination. Upon the expiration or termination of this Agreement, Merchant immediately shall deliver to MEMO all cash receipts from the sale of money orders, money order fees due MEMO, accounting (storey copies of money orders issued, the money order imprinter and any and all materials or documents provided to Merchant by MEMO pursuant to this Agreement, including, but not limited to, all blank money order forms. All obligations, covenants, liabilities, and indemnil e.s Merchant hereunder shall survive the expiration or termination of this Agreement 9_ Liability. Merchant, regardless of Merchant s freedom from negligence or other fault, shall be absolutely liable: A . To make remittance to MEMO of the face amount of all money orders sold, the applicable Money Order Fees, and all other monies due MEMO under t'lis Agreement, regardless of the mysterious or non-mysterious disappearance or loss of any funds from Merchant'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 sums of money that may be expended by or for MEMO in paying any money orders delivered by MEMO to Merchant that are subsequently presented for payment, whether or not MEMO is legally liable to pay the same. This subparagraph shall not apply to any money order as to which Merchant shall have fully performed Merchant's duties under this Agreement. 10. Indemnity. Merchant shall indemnify, defend and hold harmless MEMO from and against any and all losses, damages, liabilities, claims, actions, suits, proceedings, judgments, assessments, fines, penalties, costs, interest, and expenses (including, but not limited to, settlement cost and reasonable legal and accounting fees) sustained by MEMO resulting from or arising out of any act or omission to act, whether honest, dishonest, negligent or otherwise by Merchant or Merchant's employees, agents, associates or representatives (whether within or without their scope of performance). 11. Confession of Judgment. Merchant hereby irrevocably authorizes 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 Merchant 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 (180/.), and for any other sums due MEMO under this Agreement, together with expenses and costs of suit and reasonable attorney's fees said fees not to exceed thirty percent (30%) of said amounts and sums, for collection as provided herein. For such purpose, this Agreement or a copy hereof verified by affidavit by Merchant or on behalf of Merchant by said attorney, Prothonotary or Clerk, shall be sufficient warrant The remedies of MEMO as provided herein and the warrants contained herein shall be enforced in accordance with the terms of this Agreement and may be pursued singly, successively, or together at the sole discretion of MEMO and as often as occasion therefor shall 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 Merchant 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 therefor. 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 entered against Merchant hereunder is stricken or opened upon application by or on Merchants behalf for any reason whatsoever, then any attorney or the Prothonotary or Clerk of any court of record is hereby authorized and empowered to again appear for and confess or enter judgment against Merchant 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 later proceedings. Merchant acknowledges that by authorizing MEMO to confess judgment hereunder, Merchant waives the right to notice in a prior judicial proceeding to determine its rights and liabilities. Merchant further acknowledges that MEMO may obtain a judgment against Merchant without its prior knowledge or consent and without Merchant's opportunity to raise any defense, set off, counterclaim or other claim Merchant may have. Merchant expressly waives such rights as an explicit and material part of the consideration for MEMO's agreement to make money orders available to Merchant 12. Security. As further consideration of appointment by MEMO as irs agent, and in order to protect MEMO s property from conversion, Merchant hereby grants to MEMO a continuing security interest in Merchants bank account, inventory, accounts receivable and fixtures at all Merchant locations. Merchant agrees to execute all documents necessary to create or perfect such security interest, including, but not limited to, recorded Uniform Commercial Code-Financial Statement ( UCC1(s)) filings. Furthermore, MEMO reserves the right to require additional collateral as it deems necessary for ongoing approval and for the duration of this agreement 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 1029 Mumma Road P.O. Box 8863 Camp Hill, PA 17001-8863 IF TO MERCHANT: See attached Rider. 14. Choice of Law. This Agreement shall 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 Cumberland County, Pennsylvania, or, in the case of MEMas exercise of rights under Paragraph 11 hereof, in 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 failure to declare a default under this Agreement shall not constitute a waiver of any breach or of any provision of this Agreement and shall not prejudice the right and/or power of MEMO to proceed as fully as it it had not tailed to enforce any provision of this Agreement. 16. Enforcement In the event of default under the terms of this agreement, Merchant agrees that MEMO shall, in addition to all other rights it may have under the law, have the right of seeking specific performance in a court of equity. Furthermore, Merchant agrees to consent to the jurisdiction of a court of equity regarding the enforcement of this agreement and/or the enforcement of MEM10(s) rights in the event of any default by Merchants. 17. Cost of Enforcement Merchant shall pay, on demand by MEMO, all costs and expenses including reasonable attorney's tees incurred by MEMO in connection with the enforcement of this Agreement in a court of equity. 18. Construction. All references in this Agreement in the singular shall be construed to include the plural where applicable and the masculine shall include all other genders. AN covenants, agreements and obligations in this Agreement assumed by Merchant shall be, and shall be deemed to be, joint and several covenants. Headings of the paragraphs of this Agreement are for convenience only and do not limit, expand, or otherwise construe the provisions or contents of this Agreement 19. Entire Agreement This Agreement, together with all attachments and riders, related security documents and such rules and regulations as may be promulgated by MEMO for the issuance of money orders from time to time, shall constitute the entire agreement between the parties hereto. There are no other agreements or understandings, written or oral, between the parties with respect to the subject matter of this agreement There shall be no modifications, amendments, or alterations to this agreement unless agreed to in writing, signed by all parties. This agreement shall bind and inure to the benefit of the parties, their respective heirs, successors, representatives and proper assigns. 20. Time of the Essence. Time is of the essence in this Agreement and the Rider. MERCHANT Date- MERCHANTS EXPRESS MONEY ORDER COMPANY/ MEMO MONEY ORDER COMPANY By Title 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: Merchant: Store Name 1 / r f / 1176&a?i_s0 //, Street dddress /_30 C) ?rxcaa /l i?u • City / j _ ?,r??t?J?P State ??? ` ZIP Code tS?fo Agent Number Telephone Number;a7 --3 r Legal Entity: ( ) rporation; ( ) Partnership; ( ) Sole Proprietorship Money Order Fees: Money Order Fees shall be based upon the weekly volume of Money Orders sold by Merchant Mer- chants Money Order Fee shall be $ - Z-Z_ per item at a maximum retail selling price of $ . 7 Money Order fees may be modified by MEMO at any time upon thirty (30) days notice to Merchant or when MEMO's 10 week sales analysis indicates per item weekly volume not consistent with MEMO's amount rate schedule. Procedure for Sale of Money Orders: Merchant shall sell money orders strictly pursuant to the following procedures: A. Merchant shall sell only MEMO money orders in each retail establishment and shall ensure that the money orders are held secure at all times and that such money orders are handled and sold, along with the cash generated from such sales, only by employees who are bonded by a company approved by MEMO. Merchant shall have the option, in lieu of providing a specific bond pursuant to this Agreement, of listing MEMO as an additional obligee on a blanket bond covering all of Merchant's employees. B . Merchant shall sell money orders in strict numerical sequence in accordance with the number printed on each blank money order. Oct C . The face amount of any money order sold by Merchant shall not exceed the sum of S??z - D . Merchant shall not issue a money order until such time as Merchant 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 Merchant which shall not be less than the applicable Money Order 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, Merchant shall immediately report such fact to MEMO or MEMO's authorized servicing vendor. F . MEMO may deliver blank money orders to Merchant, or to any agent, employee or representative of Merchant, by whatever means MEMO deems appropriate, and MEMO is authorized to receive and issue a receipt for blank money orders on behalf of Merchant. M0019 8/94 Trust Fund Remittance: wi a rin the momin of the repprt: REPORTING PERIOD EGI NIN DAY - DIN DA CALL DAY The Merchant will have all necessary information ready. (See Reporting Form for specifics.) Upon completion of the phone call, MEMO will initiate an electronic transfer to move the face value plus fees due MEMO from Mer- chants' to MEMO's bank account. All funds due MEMO must be available to MEMO at that time. If Merchant changes banks or bank accounts as identified in the Merchant's Credit Application, Merchant 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. W %A o ting and Remittances: On of each week, Merchant shall comp! on (1) ekly money order reporting form for the seven (7) day period nding on the immediately precedin ("Reporting Period") and shall mail MEMO the completed report along with the accounting (store) copy of each money order sold during the Reporting Period. If Merchant did not sell any money orders during the Reporting Period, Merchant shall so state on a weekly report and mail the completed report to MEMO. If a money order is spoiled before it is issued, Merchant shall mail the original and all copies of such money order, with an appropriate notation on such money order, to MEMO along with the next weekly report. In addition, Merchant shall at any time upon demand, transfer and deliver to MEMO all cash receipts from the sale of money orders, Money Order Fees due MEMO and the accounting (store) copies of money orders issued. ACCOUNTING DOCUMENTATION: Weekly accounting documentation in a form and manner acceptable to MEMO must be mailed by Merchant to MEMO within 24 hours after reporting period and shall be postmarked within 48 hours of reporting period. MERCHANT MERCHANTS EXPRESS MOVE MPANY MEMO MONEY ORDER Corporate o Store Name MEMO Re ive By X Title Title Date Sal Date EXHIBIT B PERSONAL INDEMNITY AND GUARANTY Intending to be legally bound hwvby? and in order M Induce MWWHANTS EXPF&W MONEY ORDER COMPANY or MEMO MONEY ORDER COMPANY ('lMlMO'1 to MpneyOrder Trust Ag nont and the Rldoraftehed thereto (ecNsaNvNy the "Agresmpnt'l with ("Merchant") 's-ISO and -00" surety for March nest's fuel ?. l Y and oo!!n. aWoluaeyy and unnondldpornoamlly?, persanMy gum and punctual payment of all arrrotaa bocci n1i due from Merchant to MEMO theriunder,land shall lndsnrti o firandholdMIEWO a aredsee spaMst any and all danags, lose expense (including attomey's fees) andlor NabiNty sustained by It by reason of or related to Merchant's fallure to perform the Agreement. The Ag?000100 may be modtfhd by MEMO and Merchant without notice to the undersigned and without affecting this Guaranty. MEMO may ertforco We Guaranty against to undomWW in the Court of Common Pleas of Cumberland County, Pennsylvania (to which jurisdiction of said Court the undersigned consents), a, well as in any other court and state having jurisdiction, whether or not any action Is over taken by MEMO 09MM Merchant. The Undersigned hereby wsiwe all nottoss whatsoever with respect to this Guaranty exospt for notice of demand for payment from the Undwelgried. The UnalenNpnad hereby ooraont to the taking of, or the feikrre to tale. from time 10 tits without notice to the Undersigned, any action of any nature whalsoever with respect to the Agreement, Including but not 1~ to any rsnswats, ex0ensions, modifications, postponements, compromises, bxkAgwwm, waivers, surrenders, swhenges, releases, and faillure to Woo or paesenve right sg&W any poraon, and the Une.relgned shall remain fully liable hereon nottvith n-Wr bap any of the tonrgoutg. Except a provided heroin, Mrs Undsrslip ned hereby wage all dslerass whatsoever to the Undersigned's NablRty hereunder exeept the defenses of (1) payment, and (2) lack of notice as required in the Agroment, Upon default hereunder, the Undersigned hereby authorises and empowers irrevocably the Prothonotary or any Clerk or any araall of any own due teeelwxsd.?r, pkkiis all a"l of cult, legIsevol a h ~ist?toappear dele. ar drter and to omfoes Judgment ~ forte oinst the n, r?elwgning for errors. welvii stay of 0000m. and the hvrwdIW Wow of a writ of Win, all in accordance with the Pennsyhranie Rube of CNN Procedure. For suoh purr Guars* or a Dopy hereof verified by affidavit by the Undersigned or on behalf of the Undersigned by said Prothwnotary, Clerk or attomey, shall be sufficient w re nt. The authority and power to appear for and fQ oordses or enter j against the Undersigned shall not be exhausted by the initial exerolee Owe : the same may be exercised, from onto time, a open as MEMO shah doom neoeuary and cfeNraft,-and this Guaranty shit be a sufficient wamnnt therefor. The Undersigned acknowledge that by authorising MEMO to confess judgm ni hereunder, the Undersigned have waived the right to. otice in a prior judicial proceeding to determine their rights and liabilities. This Ouarerity is own in connsoNon with and evidenoss the obligation of the Underaigrad to make payment in connection with a commercial transaction. This Guaranty Is irrevocable and shall be binding and operative until such time a MEMO 00 have been paid allaunts owed b it under the Apreemterht arhd that may arise pursuant to this Ouarenry. This Ouarwhty shall be gpwmed by and construed in accordance with the babas of the Commonwealth of Pennsylvania, disregarding any rules relating to the choice or en Me of laws. Guarantors Signature Print Guarantor's Name Home Address Home Address City state Zip Code Date city state Zip Code Date If not married, please indicate by affixing "N/A" on line for spouse's signature. M=6 1197 Merchants Express Money Order Company, Inc PLAINTIFF V. Ernest Kayda, Jr. Individually, jointly and severally, DEFENDANT and Wendy L Krezan Individually, jointly and severally, DEFENDANT and Hideaway Mini Mart Inc. doing business as Hideaway Mini Mart Corporation DEFENDANT COURT OF COMMON PLEAS, CUMBERLAND COUNTY la. -3631 Owl ter Al 2012 No. -,s-3' _. tm. AFFIDAVIT OF ADDRESSES COMMONWEALTH OF PENNSYLVANIA SS: COUNTY OF CUMBERLAND r ?. z-? l a .-a r 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: HIDEAWAY Ernest Kayda, Jr. Wendy Krezen 1306 Brookline Blvd 876 Van Kirk St. 876 Van Kirk St. Pittsburgh, PA 15226 Clairton, PA 1 5 Clairton, PA 15025 David Bush SWORN to and subscribed before me this 2y , day of 1 -, 2012. ,,I P ',/ V'L", L ary Public COMMONWEALTH OF PENNSYLVANIA Notarial Seat Jennifer R. Hamelin, Notary Public Wormleysburg Boro, Cumberland County My Commission Expires July 12, 2012 Msmbsr, Psllnrplvania Association of Notaries Merchants Express COURT OF COMMON PLEAS, Money Order Company, Inc. CUMBERLAND COUNTY PLAINTIFF Clvi (T ?h Al - N3( V. Ernest Kayda, Jr. , 2012 Individually, jointly and severally, DEFENDANT and Wendy L Krezan Individually, jointly and severally, DEFENDANT and Hideaway Mini Mart Inc. doing business as Hideaway Mini Mart Corporation DEFENDANT No. ?., ?-r. -r r-' I -- co AFFIDAVIT OF NON-MILITARY SERVICE COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND SS: 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 of erwise within the provisions of the Soldiers' and Sailors' Civil Relief Act of Congress o M40 as amended. n David Bush SWORN to and subscribed before me this Z , day of , 2012. N 4 t y lic COMMONWEALTH OF PZy, YLV, NIA Notarial Seal Jennifer R. Hamelin, Notary Pubiic Wormleysburg Boro, Cumberland County My Commission Expires July 12, 2012 Member, Pennsylvania Association of Notaries Merchants Express Money Order Company, Inc. PLAINTIFF V. Ernest Kayda, Jr. Individually, jointly and severally, DEFENDANT and Wendy L Krezan Individually, jointly and severally, DEFENDANT and COURT OF COMMON PLEAS, CUMBERLAND COUNTY /a- 363( 0,viTeirge No. 2012 Hideaway Mini Mart Inc. doing business as Hideaway Mini Mart Corporation ; DEFENDANT NOTICE NOTICE IS GIVEN THAT A JUDGMENT IN THE ABOVE-CAPTIONED MATTER HAS BEEN ENTERE4AGAINST YOU. r4 _ u PROTHONOTARY 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 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Merchants Express CIVIL DIVISION Money Order Company, Inc. , 1 CASE NO. 12-3631 I Plaintiff(s), V. TYPE OF PLEADING: PRAECIPE TO AVOID JUDGMENT Ernest Kayda, Jr., ; BASED UPON BANKRUPTCY ORDER Individually,jointly and severally, FILED ON BEHALF OF: Wendy L. Krezan, ; Defendant(s) Individually,jointly and severally, and COUNSEL OF RECORD FOR PARTY: 1 Hideaway Mini Mart Inc., d/b/a Hideaway Mini Mart Corporation, Brian C. Thompson, Esquire Pa I.D. No. 91197 I Defendant(s). THOMPSON LAW GROUP 400 Penn Center Blvd., Ste. 306 Pittsburgh, PA 15235 Telephone(412) 823-8080 Facsimile(412) 823-8686 I -v+ CS i 1 s i I 1 t s I I IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Merchants Express CIVIL DIVISION Money Order Company, Inc. , CASE NO. 12-3631 Plaintiff(s), V. Ernest Kayda, Jr., Individually,jointly and severally, Wendy L. Krezan, Individually,jointly and severally, and Hideaway Mini Mart Inc., d/b/a ' Hideaway Mini Mart Corporation, Defendant(s). ; PRAECIPE TO AVOID JUDGMENT BASED UPON BANKRUPTCY ORDER TO THE PROTHONOTARY: Kindly record the attached Bankruptcy Court Order Avoiding the Plaintiff s Judicial Lien in the above referenced case pursuant to the attached order issued by Judge Deller on August 26, 2013. Respectfully Submitt Date: November 12, 2013 By: Bria ompson, Esquire PA ID No. 91197 THOMPSON LAW GROUP,P.C. Penn Center East 400 Penn Center Blvd, Suite 306 Pittsburgh, PA 15235 Telephone (412) 823-8080 Facsimile(412) 823-8686 bthompson@thompsonattomey.com 2 t PIKED IN THE UNITED STATES BANKRUPTCY COURT AUG 2 fi 2013 FOR THE WESTERN DISTRICT OF PENNSYLVANIA CLERK,U.S.BANKRUPTCY COURT WEST.DIST.OF PENNSYLVANIA IN RE: ) Chapter 13 Ernest Kayda, Jr., ) Bankruptcy No. 13-20184-JAD Debtor. ) Ernest Kayda, Jr., ) Movant, ) VS. ) Document No. Merchants Express Money Order Co., Inc., ) Related Document No. 4 5 Respondent. ) ORDER f�- AND NOW this day of 14yy(- L , 2013, upon consideration of Debtor's Motion to Avoid Judicial Lien,the Court orders the following: 1. The judicial lien of Respondent Merchant, filed and recorded at Case No. 12- 3631, Cumberland County Court of Common Pleas, impairs an exemption to which Debtor would be otherwise entitled under 11 U.S.C. 522(d). 2. The aforesaid judicial lien is hereby declared avoided and unenforceable in their entirety and the underlying debts are dischargeable as unsecured non-priority debts. United States Bankruptcy Judge In The United States Bankruptcy Court For The Wtateco District of Pennsylvania I,the undersigned Deputy Clerk,U.S.Bankruptcy Court in and for said District, 00 HEREBY CERTIFY that this "OPY has been compared with the original thereof and that it is ) complete and correce copy of such original as it appears of -cord and on file in iry office. IN TE TIMONY WHEREpF I.have hen;un c my ha At Pittsburgh in d D- rict,th-s ayof �� 20 Duty Clerk,U. .Bankruptcy Cou►k CERTIFICATE OF SERVICE I, Brian C. Thomson, Esquire, hereby certify that I served a true and correct copy of the Praecipe to Avoid Judgment Based on Bankruptcy Order by first class mail postage prepaid on November 12, 2013 on the following: Merchants Express Money Order Co., Inc. 1029 Mumma Road Lemoyne, PA 17043 Att: Bryan Hannan .,._,... Dated: November 12, 2013 By: Brian CA,Thompson, Esquire PA ID N _. 91197 THOMPSON LAW GROUP,P.C. Penn Center East 400 Penn Center Blvd, Suite 306 Pittsburgh, PA 15235 Telephone(412) 823-8080 Facsimile(412) 823-8686 bthompson@thompsonattomey.com 3