Apprentice Scholarship Loan Agreement
WHEREAS, the Joint Apprenticeship Committee of United Association Local Union No.72 (hereinafter “Committee”), and _____________________________ (hereinafter “Apprentice”) understand and agree that the Committee will expend significant sums of money for the training of the Apprentice in the specialized skills necessary for employment in the Plumbing and Pipefitting Industry; and
WHEREAS, those sums of money will result in substantial direct benefit, as well as a substantial indirect and intangible benefit, to the Apprentice from this training, which is valued, at a minimum, in the amount set forth in paragraph 1 hereto (the “Scholarship Loan”); and
WHEREAS, the Committee will grant a Scholarship Loan to the Apprentice in the amount set forth in Paragraph 1 hereof for the 1st year of the Apprentice’s training; and
WHEREAS, the Scholarship Loan amount for the Apprentice’s subsequent years of training will be calculated on or before the anniversary date of this Agreement and a new Agreement and Promissory Note for that amount will be sent to the Apprentice and the Apprentice agrees to promptly execute such new Agreement and Promissory Note; and
WHEREAS, the Apprentice hereby understands and agrees that the Apprentice assumes certain obligations arising out of the training provided by the Committee, including the obligation to repay the total Scholarship Loan made to the Apprentice by the Committee for all years of training; and
WHEREAS, the Apprentice will repay the Scholarship Loan to the Committee pursuant to the terms set forth herein by either cash payments or in-kind credits received by working in the Plumbing and Pipefitting Industry for Employers under collective bargaining agreements whereby those Employers make contributions to the Committee;
NOW, THEREFORE, the Committee and Apprentice Hereby Agree and Covenant, for the good and valuable consideration set forth herein, as follows: Mechanical Trades Institute will observe August 1, 2020 as their agreement date.
1. Scholarship Loan: The Committee and the Apprentice hereby agree that the current cost of the training, necessary equipment, maintenance and cost of operating the training facility, instructors’ salaries (where applicable), and related materials, and the amount of the Scholarship Loan for the 1st year of training covered by this agreement is $6,000.00 and that the Apprentice will execute this Agreement and the Promissory Note in that amount attached hereto as exhibit 1, and deliver such executed Agreement and Promissory Note to the Committee.
2. Subsequent Years of Training: The Committee and the Apprentice hereby agree that that cost of the training, necessary equipment, maintenance and cost of operating the training facility, instructors’ salaries (where applicable), and related materials for each subsequent year of training shall be calculated by the Committee on or before the anniversary date of this agreement. That calculation shall be the amount of a new Agreement and Promissory Note that the Apprentice shall execute for that year of training. A separate Agreement and Promissory Note shall be signed for each year of training.
3. Term of Training: The Committee will provide training worth at least the amount loaned to the Apprentice hereby during the period from August 1st, 2020 to August 1st, 2021.
4. Repayment of Scholarship Loan: The Scholarship Loan may be repaid by the Apprentice in full either in cash as set forth in Exhibit 1 hereto, or by in-kind credits, as set forth in Paragraph 7 hereof
5. Warranty of the Apprentice: The Apprentice agrees and warrants as a condition of receiving the Scholarship Loan that upon completion of the training provided pursuant to this Agreement, the Apprentice will neither seek nor accept employment from an Employer engaged in nor become an Employer engaged in, any general, mechanical, plumbing, or pipefitting work or any other work covered by the Constitution of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO, unless such employment is performed under the terms of a collective bargaining agreement that provides for the payment of contributions by such Employer to the Committee or like Joint Apprenticeship of Training Committee.
6. Breach of this Agreement: It will constitute an immediate breach of this Agreement if the Apprentice accepts employment in the Plumbing and Pipefitting industry from an Employer who does not have a collective bargaining agreement which provides for the payment of contributions to the Committee or like Joint Apprenticeship Committee. In this event, the apprentice would be responsible for the training cost for each year that he/she was in the apprenticeship program.
7. Repayment by In-Kind Credits: An Apprentice, who works pursuant to a collective bargaining agreement, as a journeyman or higher classification, for an employer making payments to the Committee or a like Joint Apprenticeship Committee or Training Committee, will receive a credit for each calendar year of such employment in accordance with the Repayment Schedule set out in the Promissory Note attached hereto as Exhibit 1, and all subsequent Promissory Notes signed by the Apprentice. The amount due the Committee for the Scholarship Loan will be reduced by such amount in accordance therewith.
All Amounts Due and Payable if Breach Occurs: If the Apprentice breaches this Agreement, all amounts due and owing on the Scholarship Loan, reduced by any credit received by the Apprentice pursuant to Paragraph 7 hereof, or by any cash payments made, will become immediately due and payable, together with interest at the prime interest rate then prevailing at the Cadence Bank in Atlanta, Georgia from the date of this Agreement, and all costs of collection hereof, including reasonable attorneys’ fees and all court costs. The Apprentice herby agrees and covenants to accept personal service and jurisdiction of any competent court determined by the Committee by the mailing of a copy of the Complaint brought pursuant to this Agreement to the current address provided in Paragraph 9 hereof.
Any Controversy or claim arising out of or relating to this Agreement or any other Scholarship Loan Agreement between the parties, or the breach thereof, shall be settled by arbitration pursuant to the commercial rules of the American Arbitration Association in accordance with Title 9 of the United States Code (Federal Arbitration Act) and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitrator shall be selected by the parties and, if necessary, from a list from the American Arbitration Association. The arbitrator shall be authorized to enjoin any act or practice that violates the terms of this Agreement and to award any and all relief necessary to redress such violations or to enforce any of the terms of this Agreement, including awarding monetary relief for all losses sustained as a result of such violations. Any monetary award in an arbitration initiated under this clause shall include pre-award interest at the prime rate and prevailing at the Cadence Bank in Atlanta, Georgia. The arbitrator shall also award to the prevailing party, if any, as determined by the arbitrator, all of its costs and fees. “Costs and fees” mean all reasonable pre-award expenses of the arbitration, including the arbitrator’s fees, administrative fees, travel expenses, out-of-pocket expenses such as copying and telephone, court costs, witness fees, and attorney fees.
In any judicial proceeding to enforce an arbitration award issued pursuant to this Paragraph, the court shall also award to the prevailing party, if any, as determined by the court, all its costs and fees. The Apprentice further agrees to accept personal service and jurisdiction of any competent court determined by the Committee by the mailing of a copy of the Complaint brought pursuant to this Agreement to the last known address of the Apprentice on file with JATC.
8. Waiver of Breach: An inadvertent breach of this Agreement can be waived in writing by the Committee in its sole discretion, and a waiver of such inadvertent breach of this Agreement will not be unreasonably withheld by the Committee.
9. Notice: All notices under this Agreement will be sent to the Committee and Apprentice as follows:
10. Plumbing and Pipefitting Industry: As used herein the term “Plumbing and Pipefitting Industry” means any and all types of work covered by the collective bargaining agreements to which the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO (hereinafter “United Association”) and/or any affiliated Local Union are a party or under the trade jurisdiction of the United Association’s Constitution; or in a related building trade.
Mechanical Trades Institute - Joint Apprenticeship and Training Trust
6120 Purdue Drive, SW, Atlanta, GA 30336
The Apprentice hereby agrees to notify promptly the Committee of any change in the Apprentice’s address.
I certify that all the information contained in this agreement is true and correct to the best of my knowledge.