PAYMENT AGREEMENT. Background
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- Lester Ward
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1 PAYMENT AGREEMENT THIS PAYMENT AGREEMENT is made effective December, 2016 between the Board of Trustees of Western Michigan University, a Michigan constitutional body corporate, located at 1903 W. Michigan Ave. Kalamazoo, MI ( WMU ) and Jakarta International College, a private international college located at Graha Mandiri 2nd Floor, Jl. Imam Bonjol 61, Menteng, Jakarta, Indonesia ( JIC ). Background The Government of Papua, a Province of Indonesia ( Papua ), offers scholarships to certain citizens of Papua. WMU received 40 students sponsored through this program ( Papua Students ). Papua s guarantee to pay the tuition and fees of the Papua Students is attached to this Agreement as Appendix A. The Papua Students have been enrolled at WMU since Summer 2 term of 2016, but WMU has not received payment for any of the invoices submitted to Papua, which are attached hereto as Appendix B (the Outstanding Invoices ). The Outstanding Invoices total $783, before late fees. Prior to their arrival at WMU, the Papua Students had been enrolled at JIC. JIC and WMU have a Twinning Agreement (attached hereto as Appendix C) pursuant to which students who complete two years of study at JIC may transfer to WMU. The Papua Students were placed at WMU due in part to WMU s relationship with JIC. Papua has informed WMU that it is unable to pay WMU the Outstanding Invoices until approximately April JIC, however, has agreed to pay WMU the amount due for the Outstanding Invoices and receive reimbursement if, and only if, WMU receives payment from Papua, all on the terms and conditions set forth herein. NOW THEREFORE, it is hereby agreed between the parties, as follows: Agreement 1. Outstanding Sum Owed. WMU shall add a late fee of 1.5% per month to each of the Outstanding Invoices, as shown on Appendix D. The total sum of the Outstanding Invoices plus the late fees as of the date of this Agreement equals $812, (the Outstanding Sum Owed ). WMU will invoice Papua for the Outstanding Sum Owed, and Papua is expected to pay WMU the Outstanding Sum Owed, plus any additional late fees, on or about April Payment of Outstanding Sum Owed. JIC agrees to pay WMU in full the amount of the Outstanding Invoices without the late fees (stated above) on or before December 19, 2016 (the JIC Payment ). JIC is not obligated to advance any additional funds on behalf of Papua, including subsequent late fees. 3. Reimbursement to JIC. If, and only if, the payment in whole or in part of the Outstanding Sum Owed is received from Papua, WMU agrees to reimburse JIC the amount of such payment received from Papua. JIC-WMU Payment Agreement November 2016 Page 1
2 4. Pay if Paid Condition. WMU is obligated to make the reimbursement under Section 3 of this Agreement if, and only if, payment is received from Papua for the Outstanding Sum Owed, and only to the extent of such payment. To the extent WMU does not receive payment from Papua for the Outstanding Sum Owed, then WMU will have no obligation under Section 3 of this Agreement to repay JIC. This Agreement shall continue so long as a partial amount is outstanding, until the termination date in Section Termination. This Agreement shall continue in effect until the earlier of (i) full repayment of the JIC Payment, or (ii) June 30, Upon termination, WMU shall have no further obligation to reimburse or repay JIC any remaining amount of the JIC Payment, and JIC waives and releases WMU from any obligation to reimburse or repay JIC the JIC Payment under this Agreement or under any other agreement or legal claim. 6. Assignment. Neither party hereto may assign its rights or delegate its duties under this Agreement without the prior written approval of the other party hereto. 7. Miscellaneous. This Agreement contains the entire agreement between the parties regarding the subject matter hereof. This Agreement may be amended only by the mutual written agreement of the parties hereto. The invalidity of any portion of this Agreement shall in no way affect the balance hereof. This Agreement shall be construed in accordance with the internal laws of the State of Michigan. The parties hereto have executed this Agreement as of the date first set forth above. BOARD OF TRUSTEES OF WESTERN MICHIGAN UNIVERSITY JAKARTA INTERNATIONAL COLLEGE Jan Van Der Kley, Treasurer By: Its: JIC-WMU Payment Agreement November 2016 Page 2
3 Appendix A Papua Guarantees JIC-WMU Payment Agreement November 2016 Page 3
4 JIC-WMU Payment Agreement November 2016 Page 4
5 JIC-WMU Payment Agreement November 2016 Page 5
6 JIC-WMU Payment Agreement November 2016 Page 6
7 JIC-WMU Payment Agreement November 2016 Page 7
8 JIC-WMU Payment Agreement November 2016 Page 8
9 Appendix B - Outstanding Invoices (Papua Province Government) Invoice Date Invoice No. * Descriptions Invoice Amount May 24, Extended orientation, room & board for 40 students on June 11-29, 2016 $ 85, July 12, Summer semester - medical insurance $ 6, July 19, Summer II 2016 semester $ 217, October 4, Fall 2016 semester $ 468, October 17, Summer II 2016 semester - additional $ 4, October 24, 2016 Record initiation fee (1 time fee) for Alberta Kendom $ Grand Total Amount $ 783, *See attached invoices JIC-WMU Payment Agreement November 2016 Page 9
10 Appendix C Twinning Agreement JIC-WMU Payment Agreement November 2016 Page 10
11 JIC-WMU Payment Agreement November 2016 Page 11
12 JIC-WMU Payment Agreement November 2016 Page 12
13 JIC-WMU Payment Agreement November 2016 Page 13
14 JIC-WMU Payment Agreement November 2016 Page 14
15 JIC-WMU Payment Agreement November 2016 Page 15
16 JIC-WMU Payment Agreement November 2016 Page 16
17 JIC-WMU Payment Agreement November 2016 Page 17
18 JIC-WMU Payment Agreement November 2016 Page 18
19 Appendix D - Late Fees Payments not made within 30 days of the invoice are subject to a 1.5% monthly service charge (18% annually) until paid. Outstanding Invoices plus the late fees Invoice #41824 dated 5/24/2016 for June Orientation and Room and Board $85, /24/2016 Service charge $1, /24/2016 Service charge $1, /24/2016 Service charge $1, /24/2016 Service charge $1, /24/2016 Service charge $1, /24/2016 Service charge $1, Total due on Invoice #41824 $93, Invoice # dated 7/12/2016 for medical insurance for Summer $6, /12/2016 Service charge $ /12/2016 Service charge $ /12/2016 Service charge $ /12/2016 Service charge $ Total due on Invoice # $7, Invoice # dated 7/19/2016 for Summer II $217, /19/2016 Service charge $3, /19/2016 Service charge $3, /19/2016 Service charge $3, /19/2016 Service charge $3, Total due on Invoice # $231, Invoice # dated 10/04/2016 for Fall semester $468, /04/2016 Service charge $7, Total due on Invoice # $475, JIC-WMU Payment Agreement November 2016 Page 19
20 Invoice # dated 10/17/2016 additional Summer II charges $4, /17/2016 Service charge $71.18 Total due on Invoice # $4, Invoice # dated 10/24/2016 Records Initiation fee for Alberta Atiop Kendom $ /24/2016 Service charge $4.50 Total due on Invoice # $ Grand Total of Outstanding Invoices plus late fees $812, \ JIC-WMU Payment Agreement November 2016 Page 20
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