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HomeMy WebLinkAbout12-5426 MERCHANTS EXPRESS USA,1nc. COURT OF COMMON PLEAS, CUMBERLAND COUNTY PLAINTIFF v. Jonathan Yaldo , 2012 Individually, jointly and severally, DEFENDANT ' ~ ~ ~ ut and No. ~ w --f Northland Party Shop, Inc., d/b/a ~ ~ Northland Party Shop w ~ ~x Corporation ~ ' ca DEFENDANT ~ Z 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: $ 56,436.36 Interest: $ 1,241.16 Lost Fee Income: $ 4,118.40 Attorney Fees: $ 18,538.96 Total: $ 80,335.48 Kevin M. Lutkins, Esq. Attorney for Defendants pu~.~ ~ ~ie~ ~ i - MERCHANTS EXPRESS USA, Inc. COURT OF COMMON PLEAS, CUMBERLAND COUNTY PLAINTIFF v. Jonathan Yaldo , 2012 ~ -T, Individually, jointly and severally, s DEFENDANT ~ ~ - and No. 02' S~(~~.Q u w Northland Party Shop, Inc., d/b/a ~ Northland Party Shop Corporation DEFENDANT ~ -c COMPLAINT IN CONFESSION OF JUDGMENT FOR MONEY COUNT I -CONFESSION OF JUDGMENT (MEMO V. NORTHLAND AND YALDO) 1. Plaintiff is Merchants Express USA, Inc., (hereinafter "MEMO"), a Pennsylvania corporation wholly owned by Merchants Express Money Order Company, Inc., and engages in the issuance and sale of money orders and whose address is 1029 Mumma Road, Wormleysburg, Pennsylvania, 17043. 2. Defendant Northland Party Shop, Inc., (hereinafter "Northland"), is a corporation located at 18245 West 8 Mile Road, Detroit, Michigan 48219 and doing business as Northland Party Shop. 3. Defendant Jonathan Yaldo (hereinafter "Yaldo"), is an individual residing at 5330 Cheltenham Drive, Troy, MI 48098-2471. 4. Defendants Yaldo is the owner and/or operator of Defendant Northland and entered into the Trust Agreement on behalf of said Defendant Northland and himself on or about July 21, 2009. A true and correct copy of the Trust Agreement under which Defendants Yaldo and Northland are confessing judgment is attached hereto as Exhibit "A". ti - 5. Defendant Yaldo, with the intent to induce MEMO to enter into a Trust Agreement with Defendant Northland, agreed to personally guaranty the obligations of Defendant Northland. A true and correct copy of the Personal Indemnity and Guaranty under which Defendant Yaldo is confessing judgment is included in paragraph 12 of the Trust Agreement and again in paragraph 1 of the Agreement attached hereto as Exhibit "A". 6. The forgoing judgment against Defendants Yaldo and Northland, is not being entered by confession against a natural person in connection with a consumer credit transaction. 7. The Plaintiff has not assigned the Trust Agreement and Personal Indemnity and Guaranty under which judgment is being confessed. 8. The Plaintiff has not entered judgment against Defendants in any jurisdiction for the unpaid sum of $80,335.48 or any additional amount for a total of the debt demanded here. 9. The Defendants jointly and severally acted as selling agents for Plaintiff from August 18, 2009 until July 3, 2012. 10. 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. 11. The Plaintiff attempted to collect the trust funds from Defendants on June 25, 2012 and June 28, 2012 through an Automated Clearing House (hereinafter "ACH") method. 12. The Plaintiff, or its designated check-clearing banking center did npt receive the payment of the trust funds on June 25, 2012 and June 28, 2012, as required by the Trust Agreement. 13. The failure of Plaintiff or its designated check-clearing banking center to receive trust funds from the Defendant in accordance with the Trust Agreement constitutes an event of default allowing Plaintiff to enter judgment against Defendants. 14. Pursuant to the Trust Agreement, the Plaintiff suffered damages by the Defendants conduct as follows: Principal: $ 56,436.36 Interest: $ 1,241.16 Lost Fee Income: $ 4,118.40 Attorney Fees: $ 18,538.96 Total: $ 80,335.48 15. T'he Defendants' most recent 10-week sales average equaled 84 money orders causing Plaintiff Lost Fee Income of $4,118.40 as a result of Defendants' default. 16. Plaintiff demands judgment in the aforementioned amount as authorized by the Warrant of Attorney contained in the Trust Agreement attached hereto as Exhibit A. 17. The Warrant of Attorney contained in the Trust Agreement is less than twenty (20) years old. WHEREFORE, Plaintiff demands judgment in the amount of $80,335.48, 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. NORTHLAND AND YALDO) 18. The averments set forth in paragraphs 1 through 17 are incorporated by reference as if set forth in full herein. 19. Defendant Yaldo signed the above referenced Trust Agreement containing a personal guaranty and indemnity, and the documents appended thereto, on behalf of The Northland. 20. The failure of Yaldo to remit the trust funds is a violation of the terms and provisions of the Trust Agreement is a breach of the fiduciary relationship created by the Trust Agreement. WHEREFORE, Plaintiff demands judgment in the amount of $80,335.48, 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. NORTHLAND AND YALDOI 21. The averments set forth in paragraphs 1 through 20 are incorporated by reference as if set forth in full herein. 22. The Trust Agreement created fiduciary obligations owed by the Defendant to the Plaintiff. 23. In breach of their fiduciary obligations, Defendant Yaldo: 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. 24. Defendant performed all of the above actins intentionally, willfully, maliciously, and with wanton disregard for the rights of Plaintiff. 25. 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 $80,335.48, 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. NORTHLAND AND YALDO) 26. The averments set forth in paragraphs 1 through 25 are incorporated by reference as if set forth in full herein. 27. Plaintiff avers, on information and belief, that Defendant Yaldo converted the trust funds owed Plaintiff to his own personal uses. 28. Defendant Yaldo'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 $80,335.48, 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. NORTHLAND AND YALDO) 29. The averments set forth in paragraphs 1 through 28 are incorporated by reference as if set forth in full herein. 30. Plaintiff avers, upon information and belief, that Defendant wrongfully retained the trust funds. 31. 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. 32. The Defendant's retention of the benefits conferred by Plaintiff without paying the value of such benefits would be inequitable and unjust. 33. 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 $80,335.48, 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. NORTHLAND AND YALDO) 34. The averments set forth in pazagraphs 1 through 33 aze incorporated by reference as if set forth in full herein. 35. The Trust Agreement cleazly states that all money orders and trust funds are Plaintiff's property. 36. 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. 37. 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. 38. By operation of law, Plaintiff is the owner and Defendant is the trustee for all assets so commingled. 39. 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 $80,335.48, as authorized by the Warrant appearing in the attached Trust Agreement, together interest from the date of judgment and costs. Kevin M. utkins, Esq. Attorney for Plaintiff Attorney ID: 76859 Date: z VERIFICATION The undersigned individual hereby states that he/she is an employee of Merchants Express Money Order Company, Inc., with the authority to verify the statements contained in the foregoing complaint involving Merchants Express USA, Inc., a wholly owned subsidiazy of Merchants Express Money Order Company, Inc., a Pennsylvania corporation. The undersigned individual also states that the statements made in the aforementioned complaint aze true and correct to the best of his/her knowledge, information, and belief. The undersigned understands that the statements therein aze made subject to the penalties of 18 Pa. Cons. Stat. §4904 relating to unsworn falsifications to authorities. David Bush MERCHANTS EXPRESS MONEY ORDER COMPANY, INC. AND SUBSIDIARIES 1029 Mumma Rd, P.O. Box 8863 Camp Hill, PA 17001- 8863 (800) 922 - 8079 Fax (717) 214 - 5989 www.memoco.com MONEY ORDERS Trustee Agreement for. Corporation Name: Northland Patty Shoff Inc Store Name: Northland Party S~ # of Locations: Address: 18245 West 8 Mile Road City: Detroit State: M~ Zip Code: 4$219 Telephone Number. j~13~ 532 - 7277 Fag Number: ~ - ~ ~P ~ E-Mail Address: Website Address: Legal Entity: ~ Corporation II LLC II Partnership ~ Sole Proprietorship Products: ? Money Orders D Gift Certificates Instructions: If you are an officer or the owner of 10% or more of the business you will need to sign at one of the red numbered signature areas on the Trust Agreement and the Electronic Funds Transfer. If warded, your spouse will need to sign at the corresponding blue numbered spouse signature areas, if not married please notate by affixing N/A in the corresponding blue numbered spouse signature areas. Please attach a voided check for the account MEMO or its designated representative will be drafting. Please provide copies of photo ID's of all individuals who sign these documents. If you have any questions please feel free to contact your sales representative or the Sales and Marketing Department at (800) 922 - 8079. FOR IIVTERNAL USE ONLY 11~.RCEIANTS EXP'RES.S MONEY ORDER COMPANY, nvc. Money Orders Lead # 20064 ' MEMO MONEYORDFR COMPANY, INC. MERCHANTS ERPRESS USA, IIVC. MEMO MONEYORDffit COMPANY OF NEW YORE, INC. Trustee # ~ ~ ~ S 3 s~ R,~_ Bryan Hannan ~ N ~ ~ ~ n ~'"3 c y~;H~Fy~ $ y~•-I~.g~°'•'~~`'~ ~ HH ~ 'f{'y ~ y~ ~•g ~ ~a~ ~ a+ ~ ~y ~5jdd y y bt g g. ~ R ~ R a R ~ ~ ~ z~ o y~ y ~ R R ~ z y ~ 5 g gR,y ~ g. R~ ~y ~p•~ R~ ~ ~ ~ y~. riy gg ~~p.~ ~p"d~ Off~?d! dS ~ 6. g R, O g ~p ~ y 'u .H ~~~8 ~q ~ C~~ ~'O ~ 6 R' .R O R O~ ~ ~ ~R+g ~ ~ ~ ~ ~ yp R n 'R,~pyQ~p+ ,~~f~~~~~p` M ~BQ }}~~j~ g ~N ~Oc'~ y ~ Op ~ .yy ~r ~ `4 ~1 yy OI qp p i•F' oq. 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H~ ~H N ~ ~ ~ a WHATSOEVER, THEN ANYATTORNEY OR THE PROTHONOTARY OR CLEREOF ANY COURT OF RECORD IS I~RFSYAUITiOR1ZEDAND EMPOWERED TO AGAIN APPFAIt FORAND CONFESS OR ENTER jUDGMF~TT AGAINST TRUSTEE;SUBJECT, HOWEVER, TO THE LiM1TATION THAT SUCH SUBSEQUENT ENTRY OR CONFESSION OF JUDGMENT MAY ONLYBE DONETO CUREANY ERRORS IN PRIOR PROCEEDINGS,AND ONLYTO THE EETIIVT' THAT SUCH ERRORSARE SUBJECT TO CURE IN THE IA'TE PRO(~INGS. TRU51'EEAG'~vOWLEDGES'THA'I' BY AUTHORTLiAiGMEMO TO CONFESS JUDCdVIFNT HEREUNDER, TRUSTEE WAIVES THE RIGI~I' TO NOTICE INA PRIOR JUDICIAL PROCEEDING TO DETERIl~vE TT RIGHTS AND LZABII1T1F5. TRUSI~ FURT!'~RACffi~TOWLEDGES THAT MEMO MAY OBTAIN AJUDC3letE[~TT' AGAINST TRU5T88 WITHOUT TTSPRIOR ENOWI~GE OR CONSENTAND WITHOUT TRUSTEE'S OPPORTUIVrIYTO RAISBANY DBFffiVSE, SET OFF, COUNTERCLAIIK OROTHER CLAIMTRUSTEEMAYHAVE TRUSTEE EXPRESSLY WAIVES SUCH RIGHTSASAN ERPLTCITAND MATERIAL PART OF THE CONSIDERATION PORMEM05TRUSTAGREHI~TTTOMAEE MEMO PRODUCTS AVAn a~ p' TO THETRUSTEE 11. Lia)r>1LLy. Tntsbee, of Tautees fizedorn horn negiig~ce air other fiatlS shaIlbe absoludy liablc A To make rcz~ttoe m MEMO of the face amwnt far aIl MEMO pmdtxts sold, the appLcahle bees, and aIl other monies due MEMO this Taut 1~oeartatS ce~xdleas of the mysterious arndn-arysemolu dnncc oz loss of any funds horn Tnuhx's possession by season of the honest oc d'ahonest ad of say pe~xi, ad of God, or othec~vise. B. To remit m MEMO the total amaxtt a~f aIl sums of money that may be espertded by oc fix MEMO in Paying any MEMO products ddiveted bq MEMO m Tmstae that art subsogttendq pr<srnad far payment; whether ere not MEMO;s ~ liable m pay the same. This atbparagraph sbaIl not apply m any MEMO products as m which Tmstce slnll have fitIlype~'aamcd Tiiu~s duties under th's Tnut Agrament G MEMO Iiabaily. Ezoept as pmaidcdm this Trust AgreanatK MEMO makes no wamoties whether ~ implied a< stamrory in cmnectim with this Trust Ag~ecmart MEMO expnsly disdains all way of meeshutmhility and fitness far a partiarlarputpose MEMO shall Trot be reeportuble oa-Eabie far any ktet profile, amseq~ tpaaal arputritive, e~mphry or itrd~daital damages 8 from the fa~7ure a~f the Prod<tct(s). The sore and eacitsivc kab~lty of MEMO m Tnutx and remedy of Tnutte heraatder (mduding 12 II~iDF.MI AND P~ER.SO GU~ARANT'Y. TO IIVDUCE MEMO TO E> INTO THIS TRUGREEMENT, TRUy"TEg AND THE UNDERSIGNED INDTirIDUAL(S) SHALL JOINTLY AND SFVTi11AT T.y, INDI?I1II1iIF'Y, DEFEND AND HOk.D t~TAUtuT.Tr_cS MEMO FROM AND AGAINST ANY AND ALL LOSSES, DAMAGES, LIABIIdTIES, CI.AII4TS, ACTIONS, SUITS, PROCEEDINGS, JUDGMENTS, ASSF,.SSMENTS, FINES, PENALTIES, COSTS, IIVT'EREST, AND EEPENSES (INCLUDING, BUT NOT LII?TITED TO, SETTLIIKENT' 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 TRUSTEE OR TRUSTEE'S EMPLOYEES, AGENTS, ASSOCIATES OR REPRESPNTATTYES (WTR WITHIN OR WITHOUT THEIR SCOPE OF PERFORMANCE UNDER THIS TRUST AGREELITEIVI~. THE PARTIES TO TH8 TRUST AGREE6TEIV!' SHALL BE RELEASZID FROM LIABILITY HEREUNDER FOR FAILURE TO PERFORM ANY OF THE OBLIGATIONS FIEREIN WI>tERE SUCH FAILURE TO PERFORM OCCURS BY REASON OF ANY ACT OF GOD, NATIONAL EMERGENCY, MECHANICAL OR Fi.F.['TRTCAj, gREAEDOWN, CIVIL COMMOTION OR THE ORDER, BEQULSTTION, REQUEST OR RECOI?~IIKFNDATION OF ANY GOVER1VhIFNTAL PROCLAMATION, REGULATION OR ANY OTHER CAUSE BEYOND EITHER PARTY'S REASONABLE CONTROL INCLUDING WEATHER THE UNDERSIGNED INDIVIDUAL DOES PERSONALLY GUARANTEE AND BECOME SURETY FOR TRUSTEE'S FULL PERFORMANCE OF THE TRUST' AGREEMEN'T', INCLUDING WITH LII~IITATION THE PROMPT AND PUNCTUAL PAYMENT OF ALL AMOUNTS BECOMING DUE FROM TRUSTEE TO MEMO HEREUNDER THE TRUST AGREEMENT MAY BE MODIFIED BY MEMO WITHOUT NOTICE TO THE UNDERSIGNED AND WITHOUT AFFECTING THIS PARAGRAPH. MEMO MAY ENFORCE THIS PARAGRAPH AGAINST THE UNDERSIGNED IN THE COURT OF COMMON PLEAS OP CiJM$RRT.ATVTI CQjJNT']y, PENNSYLVANIA, A$ WELL AS IN ANY OTHER COURT AND STATE HAVING JURISDICTION, WFIETHER OR NOT ANY ACTION I5 EVER TAEEN BY MEMO AGAINST TRUSTEE (AND/OR GUARANTOR). THE UNDERSIGNED HEREBY WATfTE ALL NOTICES WHATSOEVER WITH RESPECT TO THIS GUARAN'T'Y EECEPT FOR NOTICE OF DEMAND FOR PAYbffiVT FROM THE UNDERSIGNED. THE UNDERSIGNED HEREBY CONSENT TO THE TA.SING OF, OR THE FAILURE TO TAEE, FROM TIME TO TII?SE WITHOUT NOTICE TO THE UNDERSIGNED, ANY ACTION OF ANY NATURE WHATSOEVER WITH RESPECT TO THE TRUST AGREEMENT, INCLUDING BUT NOT LIIrIITED TO ANY RENEWALS, ERTFN5IONS, MODIFICATIONS, POSTPONE11~1VTS, COMPROMISES, INDULGENCES, WAIVERS, SURRENDERS EECHANGES, RFi.FASF,,c AND FAILURE TO PURSUE OR PRESERVE RIGHTS AGAINST ANY PERSON, AND THE UNDERSIGNED SHALL REMAIN FUIZ.Y IJABLE IiERFAN N~ANDING ANY OF THE FOREGOING. EECEPT AS PROVIDED HEREIN, THE UNDERSIGNED FIERF.SY WAIVE ALT:. DEFENSES WHATSOEVER TO THE UNDERSIGNED'S LIABILITY HEREUNDER EgCEPT THE DEFENSES OF (1) PAYMENT, AND LACE OF NOTICE AS REQUIRED IN THE TRUST AGREII~NT. UPON DEFAULT I~REUNDER, THE UNDERSIGNED FIEREBY AUTHORIZES AND EMPOWERS IRREVOCABLY THE PROTHONOTARY OR ANY CI.ER% OR ANY ATTORNEY OF ANY COURT OF RECORD OF PENNSYLVANIA OR ELSAF TOi APPEAR FOR AND TO CONFESS jUDGMEiVT AGAINST THE UNDERSIGNED FOR ALL AMOUNTS DUE HEREUNDER, PLUS ALL COSTS OF SUIT, LEGAL INTEREST TO DATE, AND THIRTY PERCENT (30•/.) ADDED FOR ATTORNEY'S FEES, RELEASING ERRORS, WAIVING STAY OF E%ECUTION, AND AUTHORIZING THE IMMEDIATE ISSUE OF A WRIT OF ESECUTION, ATd. IN ACCORDANCE WITH THE PENNSYLVANIA RULES OF CIVII. PROCEDURE. FOR SUCH PURPOSE, THIS TRUST AGREF,MEIVT OR A COPY HEREOF VERIFY BY AFFIDAVIT BY THE UNDERSIGNED OR ON BEHALF OF THE UNDERSIGNED BY SAID PROTHONOTARY, CLERE 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 ffiIERCTSE THEREOF; THE SAlID: MAY BE EXERCISED, FROM TII1ZE TO TIIKE, AS OFTEN AS MEMO SHALL DEEM NECPSSARY AND DESIRABLE, AND THIS TRUST AGREEl4IElVT' SHALL BE A SUFFICIENT WARRANT THERB.FORE. THE UNDERSIGNED ACENOWLEDGE THAT BY AUTHORIZING MEMO TO CONFESS JUDGMFIVT HEREUNDER, THE UNDERSIGNED HAVE WAIVED THE RIGHT TO NOTICE IN A PRIOR JUDICIAL PROCEEDING TO DETERMINE THEIR RIGHTS AND i iATtTT 7'iTFS, THIS GUARANTY TS GIVEN IN CONNECTION WITH AND EVIDENCES THE OBLIGATION OF THE UNDERSIGNED TO MAEE PAYMENT IN CONNECTION WITH A COMMERCIAL TRANSACTION. THIS GUARANTY IS IRREVOCABLE AND SHAiLL BE BIIVDING AND OPERATIVE UNTIL SUCH TIME AS MEMO SHALL HAVE BEEN PAID AI.L SUMS OWED TO TT UNDER THE TRUST AGREEMENT AND THAT MAY ARISE PURSUANT TO THIS GUARANTY. 13. Secardty. As further cauidcmtion of appoattrnatt by MEMO as its agcctS and in ceder m proton MEMCt's property ham conveo;ioq Tnueee hereby gents m MEMO a oontitnring severity interest in, includc~g butrtot limed m tits fi~llowatg Tntstee's bank aooounS trtvenhxy, accounts rcodvabie, assi~att of leasS goodwill and bottrues at oll Tmsta kxstio~ns. Trustee agn3es m ezecvtc aIl documents necessary m create oc perfect verb seamty interest, in but not lixrimd tq reccaded Unifaan Coaarririal Code-Finar~at Statecrrnt Futon; MEMO rte the right m require addticoal co?atmi as it dams necessary far ongoing approval and for the duratim of the Tnut ([JCCl(s)) filings. AgRanatt In the event Trustee dnnges owneahip is Tnssbee's busincss in airy tansactim sitmlar m those set forth m paragraph 4(D) herail; withoutprior notice and approval by MEMO as set frith therein Tmstee hereby gents a security interest in the proceeds of airy such traasacfion uM7 such time as an approved account is mestab8shed. 14. Notices: Notices required os pemutted under this Trust Agreement shall be deemcd to havc bran given on personal delivery (including ovemig}tt courier service), and if by ma>7 on the third day after the marl is deposited in the U.S. Matz, by first class marl, postage prepaid return meipt requested and addressed to MEMO at 1029 Murruna Road, P.O. Boa 8863, Camp HiIl, PA 17001-8863 or to Truster at the address shown an the Application (or such subsequcnt address as has been provided to MEMO by Ttustce). 15. Choice aI'Iaw. This Tnuc Agreement shaIl be construed under and;n accordance with the laws oaf the CacntrtornvoLh afPetinsylvarria, dtsce~vtg any rules relating m the droice a< conflict of hove. The panes axtseat m vernx and persoml jtmsdictiocr in Cumbedarrd County, Paxmylvarva, oe; in the ease of MEMCrs exorcise of rights under Paragraphs 9 and 1l hereof in any other coat of rrcaad in Pmttsyh~oia or dscwlrrc 1G a with law: Tnrs~e shaIl abide by (and c~u its off, principak and cmpkryexs m abide by) all fedeal, slate and local laws and reguMaROns applirsbk m Tnsstee's busine~ and sttvicxs provided. They are m inchrde but are not linrited roc (a) Slate Iaoensng Taws, (b) the Bank Socrecy Act and its reguhtioaq (c) Falenl cash rrpaatirtg roquirQnrnts and reBuhtions; (d) State Cuaency reporting mquffanait~ (e) Frdrml anei/or State anti-mmey ]amdeeirtg }awe and aIl Hiles and reguhtions, (,7 a? applicable state money transfer or sale of check hove and regulatim; (gj ad hxlml and spate privacy laws and regthtions; and (h) the USA Patriot Ad 17. Nor}WarvQ. The fie>lure of MEMO m enforce any provi.4on of this Tnut Agrexnunt or ila faAue m declare a deFniltundcr the Taut Agnerrna~t shaD not conatiatte a waiver ex any bread[ of arty proviman of [Iris TnutAgrearxnt and shaIl not prejudice the right and/ere power of MEMO m pnx«d as hilly as if it had not failed m enfocrx any pn7visiorr of this Trust Agreement 18. Fafonxment. in the event of default under the urns of this Trost Agreement, Tnarce agrees [hat MEMO shah in addition m aIl rights it mi~rt have under the law, bare the light of seeking speafic petfomnarnce in the text of equity. Ftxdxanor~ Tnatee agrees m consent m tine N of a court of equity regarding the enforcanent of this Trust Agreement and/or the enfocteanernt of MEMO(s) rights in the event of any default by Tnaoees. 19. Cast of Fne~. Tnan:e shaIl pay, on demand m MEMO, aD vests and expenses inchnding reasonable attorney's fees incuaed by MEMO in cormection with the enforcarnent of this Tnut Agrccncnt 20. C.mstrurbieo. AD references in this That Agreement in the singular shaD be censtxtred m inchnde the phial where applicable and the rrnsarline sha? inchnde a? other genders All covenants, agceer~tts and obtigatians in this Tnat Agrcarnent assumed by Tnatee shaIl be; and shaII be deemed m be, joint and several covaiants. Fieadin~ of dre paragraphs ~ this Tnat Ageanennt are for ooanvenience only and do not ~ ergr~nd, or otherwise consdnre the p~rovisians or conternCt of this That Agreement If any part of this Tnat Agreement is hekl m be unenfeaceable oar invalid ar prohdUited bylaw, said part shaIl be deemed m bare been stricken fiorrn the Trtat Agrcanent and the Tnat Agreanent shall be read and inLerpreoed as though the stricken part did not exist and shaIl not affat the rafidity ar enforceability of any otherpart of the Trust Agreanert 21. Assignments and Delegation MEMO may assign this Trust Agreement at any time without seeking any approval ar consent of Trustee. Trustee map not assign this Trust Agreement without prior written approval of MEMO. This Trust Agreement shaIl be binding on the respective parties as well as their heirs, successors and assigns. 22 Fatar Taut Ageem~ent This Tnr~ Agneana~ , mgether with airy and aIl attadxncnts, addand,sra, re}a6ed saudty doaar~cus and such riles and reguhtions as may be prantilgabed by MEMO for the isstnnce of and sale of MEMO produces horn time m ~ shaIl canstinrre the entire agroemeu between the parties herein. There are no other agcecrrents or undeaandinge, wrimen ar ocd, between the parties with respect m the subject matter of this That Agrm+aent Them shat be no modifipporu, arners, ar alrentions m this That ABeeerrent unku agreed m in writing, signed by afl patties This TnatAgfcerner[ shaD bind and irnrre m the benefit of thcparties, than respective heirs, successors, representatives andpropcr assigns. MEMO and Merd>,nt vndastand that a completed tdef~c signature is as valid as the original 23. Time of the Essence. Tyne is of the essence in this Trost Agreement WARNING - BY SIGNING THIS PAPER, YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TBIAL IF YOU DO NOT PAY ON TIME, A COURT jUDCd1~NT MAY BE TAffiV AGAINST' YOU WITHOUT YOUR PRIOR >I~IOWLEDGE, AND THE POWF1t OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIIIIS YOU MAY HAVE AGAINST THE CREDITOR, WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH TRUST AGREIII~N T, OR ANY OTHER CAUSE. Corpaabe~store Name: Northland Parry ShQ~ Inc 1. Signature (Business) Jotsst6on Yddo SIG 2 Signature (Individually) Signature (Spouse) Joeat6on Yaldo 3I HERE Jooat6on Yttldo's SPOUSE SIGN HERE 3. Signature (individuall}) Signature (Spuuse) 4. tiigriat~ire (Indivxiually) Si>;rtature (Spouse) Place inter tie dab Date: ' 0 yes are sipiq tie contracts MERCHANTS EXPRESS MONEY ORDER COMPANY, INC. MEMO MONEY ORDER COMPANY, INC. MERC EXPRESS USA, INC. MEM ONEY ORDER COMPANY OF W YORK, INC. B (/V y Title, Date *If not married, please indicate by a>ffi~aing "N/A" in the blue "Signature (Spouse)" area. 2/5/2009 AGREEMENT This agreement is made and entered into as of the day of , 2009, between Merchants Express USA, Inc (MEMO) and Northland Patty Shop Inc d/b/a Northland Patty Shop (Trustee) and Jonathon Yaldo (Guarantor). Con~~**P•~tiy with the execution of this Agreement, MEMO and Trustee/Guarantor have entered into a certain Money Order Trust Agreement. As a material inducement for MEMO to eater into and ezecuu the Trust Agreement, the Trustee/Guarantor has agreed to enter this Agreement to grant MEMO further rights and remedies against Trustee under the Trust Agreement and, if applicable, any default by Guarantor under the personal Guaranty. Therefore, in consideration of the foregoing, and other good and valuable consideration, the receipt and adequary of which are hereby acknowledged, MEMO and Trustee/Guarantor hezeby consent and agree s follows: 1. Confession of Judgment Truster/Guatmtor hetcby irrevocably authorizes and empawccs ffiy attomeq ar the Prothonotary ar Ckrk of nay court of record, upon ar after the occurrence of any event desm~bed in paragraph 7, m appear fix and m confess ar ent>*r judgment against Trustee far the face amount of aIl monry orders solo pursuant to this Agreement, the applicable Money Order Fees, accrued iatnrest theroon, interest expense not m eaooed eighteen percent (1 S%), and for nay other sums due MEMO under this Agreernt, together with expenses and cost of suit and reasonable atbomey's fees and said fees not m exceed nutty percent (30%) of said amount and sums, far collection as provided herein including aIl legal fees incurned in nay Bankntptry of Trustee. For such purpose, this Agrarnent or a copy hereof verified by affidavit by Trusue ar on behalf of Trustee by said attorney, Prothonotary ar (aetk shall be sufficient warrant The remedies of MEMO as provided hetdn and the warrants obtained herein shaft be enforeai in accordance with the terns of this tlp~eanent and may be pursued singly, successively, ar togetirr at the sole disctlction of MEMO and as oftcn as occaaon dunefare shaIl occur. The fi$IlM t0 e7[er+CJSe any such right ar remedy sllaIl 1a no event be CUn5fr11ed aS a waiver ar relCBSe thereof. The authority and power m appear for and confess ar enter judgment against Trustee shaIl not be exhausoed by the initial exetase thereof, and the same may be excrased, final time to time, as often as MEMO shaIl deem necessary and desirable, and this Agroement ar a copy hereof shaIl be a sufficient Watzant therefore One ar more judgments may be confessed of entered in the same ar diffeflent coimtics for aIl ar part of the sums desmbed in this paragraph. In the event any judgment enicred against Trustee hereunder is stricken ar opened upon appltratYOn by ar on Trustee's behalf for any reason whatsoever, then any attorney ar the Prothonotary ar Cleric of any court of record is hereby authorized and empowered to again appear for and confess ar enter judgment against Trustee; subject; however, to the limitation that such subsequent entry ar confession of judgment may only be done to cute any errors in poor proceedings, and only and to the extent that such errors are subject to cure in the late pmreedmgs. 2 The rights and rrmedies granted to MEMO heretmdes shall be is addition to any rights ar remedies MEMO may have under the Trost Agronnent, ar any otiur instrtnndrt execrrted by Trustee and/ar guarantor pursuant to the Trust Agreement or in conaecrtion wig the Tn~st Agreement, and aIl such remedies may be pursued conewrrntly, srrcessively ar separately. In the event any provisiain contained in this Agreement; the Trost Agreement ar in a~ other insmimcnt executed b9 Trustee/ Guarantor shaIl fore any reason whatsoever be held to be inappSCable, invalid, r~l ar unenforceable in any respect such uty, invalidity, ar unenforreabtlity shaIl not affect nay respect, such inapplimbrl'ty, invalidity, r~ty ar uaenfomrsl>t1i'ty shaIl not affect airy other prevision in such docwnents, but such documents shaIl be construed as if suds provision had never boon contained therein. ~ty~ >nvalid, ~ ar ~ IN WTINI3SS WHEREOF, the patties have caused this Agreement tb be executed by their duly authorized representatives as of the day and 1'~ first above written. Tivstee: Nortl~rlatud Pm' By~ Its: thou Yatio SIGN Guarantor. (Individual) (Spouse) Joratttwo Yaido SIGN HERE Jonat6~ Yddo's SPOUSE 3IGN HERE (Spouse) (Spouse) Accepted by Merchants Express USA, Inc. c ` BY~ Its: Michigan 2/162009 MERCHANTS EXPRESS USA, Inc. COURT OF COMMON PLEAS, CUMBERLAND COUNTY PLAINTIFF v. Jonathan Yaldo , 2012 Individually, jointly and severally, DEFENDANT ~y~ ~ - ~ ~c and No. Northland Party Shop, Inc., d/b/a Northland Pazty Shop Corporation DEFENDANT 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 Merchants Express Money Order Company, Inc., with the authority to make this Affidavit on behalf of the Plaintiff, Merchants Express USA, Inc., a wholly owned subsidiazy of Merchants Express Money Order Company, Inc., a Pennsylvania corporation. The undersigned also states that to the best of my knowledge, information, and belief, the Defendants aze not in the Militazy or Naval Service of the United States or ' s Allies, or otherwis 'thin the provisions of the Soldiers' and Sailors' Civil Relief Act of Con a of 1940 as e de David Bush SWORN to and subscribed before me this 2°I , day of ~llck , 2012. N P lic c~oMr~ori ~ ni of vv u? , Notary aubNc 1NOmdey~bunp 80% dmberiana touncy CArrnr1111bq 12, 2016 MERCHANTS EXPRESS USA, Inc. COURT OF COMMON PLEAS, CUMBERLAND COUNTY PLAINTIFF v. Jonathan Yaldo , 2012 Individually, jointly and severally, DEFENDANT and No. f v1- j ~ .+.o. Northland Party Shop, Inc., d/b/a Northland Party Shop Corporation DEFENDANT 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 Merchants Express Money Order Company, Inc., with the authority to make this Affidavit on behalf of the Plaintiff, Merchants Express USA, Inc., a wholly owned subsidiary of Merchants Express Money Order Company, Inc., a Pennsylvania corporation. 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: Northland Parry Shop, Inc. Hala Kamano 18245 West 8 Mile Road 5330 Cheltenham Drive Detroit, MI 48219 Tr MI 48098-2471 David Bush SWORN to and subscribed before me~,t~hi~s{- 2q , day of 2012. No 1' aoh+MOawFx?t+ of v U s~ cwt cowKr _ , ~.r; _ _ _ _ _ _ ~ - MERCHANTS EXPRESS USA, Inc. COURT OF COMMON PLEAS, CUMBERLAND COUNTY PLAINTIFF v. Jonathan Yaldo , 2012 Individually, jointly and severally, , DEFENDANT n and N - I o. ~ d~ Northland Party Shop, Inc., d/b/a Northland Party Shop Corporation DEFENDANT NOTICE NOTICE IS GIVEN THAT A JUDGMENT IN THE ABOVE-CAPTIONED MATTER HAS BEEN ENTERED AG ST 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 + 8,