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HomeMy WebLinkAboutPR 24933: AUTHORIZING THE PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION TO ENTER INTO AN ADVANCED WELDING TRAINING AGREEMENT WITH SZSME VENTURES, INC. PPA,_)r r ECONOMIC DEVELOPMENT CORP Arur INTEROFFICE MEMORANDUM Date: 05/11/2026 To: The Honorable Mayor and City Council Through: Ronald Burton,CPM I City Manager From: Krystle Muller, PAEDC, CEO RE: P.R.24933 I A resolution approving an Advanced Welding Training Agreement between the City of Port Arthur EDC and SZSME Ventures, Inc. d/b/a Welding World Academy for advanced welding workforce training services for eligible Port Arthur residents. Introduction: The Port Arthur Economic Development Corporation (PAEDC) requests City Council authorization to enter into an Advanced Welding Training Agreement with SZSME Ventures, Inc. d/b/a Welding World Academy ("WWA") for Fiscal Years 2026-2027 to provide advanced welding workforce training opportunities for eligible Port Arthur residents seeking careers in industrial welding, fabrication, shipbuilding, and related skilled trades. Background: The proposed agreement authorizes Welding World Academy to recruit, train, and support eligible Port Arthur residents through an Advanced Welding Training Program designed to enhance welding skills and prepare participants for industrial employment. The program is structured as an advanced welding upskilling initiative focused on preparing participants to qualify as"combo welders"capable of performing multiple welding processes commonly required by industrial employers. The training program includes advanced competencies in: SMAW/FCAW on Plate—Tee Joints(all positions),V-Groove (all positions), SMAW or GTAW on Pipe—All positions.The agreement provides advanced welding instruction consisting of approximately 180 instructional hours over a 12-week period on a rolling, self-paced basis for up to five (5)eligible Port Arthur residents. Budget Impact: PAEDC will authorize funding in an amount not to exceed $30,000 for the initial twelve(12)month term of the agreement, subject to annual appropriation and approval of the budget,and subject to renewal of the agreement with successful completion and employment. Training reimbursement shall be structured on a performance-based milestone reimbursement model at $6,000 per participant as follows: 25% ($1,500) upon enrollment/start of approved participant 50% ($3,000) upon completion of 90 training hours and satisfactory documented program progress, 25% ($1,500) upon completion of the remaining 90 training hours,final performance evaluation,and submission of training completion documentation. Recommendation: It is recommended that the City Council approve a resolution authorizing the PAEDC to execute the Advanced Welding Training Agreement with SZSME Ventures,Inc.d/b/a Welding World Academy. This partnership expands access to advanced industrial welding training, supports employer workforce demand, and strengthens the long-term economic competitiveness. p P. R.No. 24933 5/11/2026 SDG RESOLUTION NO. A RESOLUTION AUTHORIZING THE PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION TO ENTER INTO AN ADVANCED WELDING TRAINING AGREEMENT WITH SZSME VENTURES, INC. DB/A WELDING WORLD ACADEMY TO PROVIDE ADVANCED WELDING WORKFORCE TRAINING SERVICES FOR UP TO FIVE (5) ELIGIBLE PORT ARTHUR RESIDENTS IN AN AMOUNT NOT TO EXCEED $30,000 OVER A TWELVE (12) MONTH TERM,(FY 26-$24,000.00 AND FY 27-$6,000.00)SUBJECT TO ANNUAL APPROPRIATION AND APPROVAL OF THE BUDGET. FY 26 FUNDS ARE AVAILABLE IN PAEDC ACCOUNT NO. 120-80-625-5475-00-00-000 (JOB TRAINING PROGRAMS). WHEREAS, the Texas Legislature passed House Bill 1967 during the 83`d Legislative Session, which amended Chapter 501 of the Local Government Code by adding §501.163, allowing economic development funds to be utilized for the purpose of pre-employment training and education; and WHEREAS, the Port Arthur Economic Development Corporation ("PAEDC") is committed to workforce development initiatives that create pathways to employment for Port Arthur residents; and WHEREAS, PAEDC has identified a need for advanced welding workforce training aligned with industrial fabrication, shipbuilding and related skilled trades critical to the economic competitiveness of Port Arthur and the Southeast Texas region; and WHEREAS, SZSME Ventures, Inc. d/b/a Welding World Academy has proposed an advanced welding training program designed to provide upskilling opportunities and advanced welding competencies for eligible Port Arthur residents; and WHEREAS,the proposed program will provide advanced welding training opportunities for up to five (5) eligible Port Arthur residents and align participants with regional employer workforce demand; and WHEREAS, at its regular meeting on May 4, 2026, the Port Arthur Economic Development Corporation ("PAEDC") Board of Directors approved entering into a one (1) year Advanced Welding Training Agreement with SZSME Ventures, Inc. d/b/a Welding World Academy in an amount not to exceed $30,000, subject to annual appropriation of funds, with an option to renew as detailed in the Agreement attached hereto as Exhibit"A"; and WHEREAS,the estimated fiscal year allocation of funds under the Agreement is $24,000 in FY 2026 and $6,000 in FY 2027, with actual expenditures dependent upon participant enrollment and milestone attainment. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby authorizes the PAEDC to enter into an Advanced Welding Training Agreement with SZSME Ventures, Inc. d/b/a Welding World Academy for advanced welding workforce training services for up to five (5) eligible Port Arthur residents in an amount not to exceed $30,000 over a twelve (12) month term, subject to renewal upon successful completion of this agreement. Section 3. The funding for this Agreement shall be budgeted and expended from PAEDC Account No. 120-80-625-5475-00-00-000,with$24,000.00 in FY 2026 and$6,000.00 in FY 2027, subject to annual appropriation of funds. Actual expenditures may be less than the amount stated above and shall be contingent upon participant enrollment,program completion,and achievement of contract payment milestones. Section 4. That this Resolution shall become effective immediately upon passage, READ, ADOPTED AND APPROVED on this day of A.D., 2026, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: #2557502 Page 2 Mayor Councilmembers NOES: • Charlotte M. Moses,Mayor ATTEST: Sherri Bellard,City Secretary APPROVED: „41-JKrystl Muller,PA C CEO APP VE A TO FO Guy . Goodson, PAEDC Attorney APPROVED A4• Roxann Pais Cotroneo,City Attorney APPROVED AS TO AVAILABILITY OF FUNDS: Apv Oa—) PYZ7 1 K yn'.a :oswell,Director of Finance #2557502 Page? Exhibit "A" #2557502 Page 4 ADVANCED WELDING TRAINING AGREEMENT BETWEEN PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION AND SZSME VENTURES, INC. RECITALS WHEREAS, the Port Arthur Economic Development Corporation ("PAEDC") Board of Directors is dedicated to improving the quality of life of Port Arthur residents who lack skills to qualify for an on-the-job training program with a local employer or skills to secure permanent employment in the current labor market; and WHEREAS, §501.162, Texas Local Government Code provides that PAEDC may authorize expenditures for job training to (i) create new jobs that pay wages that are at least equal to the prevailing wage for said occupation in the local labor market or (ii) increase payroll to pay wages that are at least equal to the prevailing wage for the applicable occupation in the local labor market; and WHEREAS, PAEDC has identified a need for individuals who can perform multiple welding processes and qualify as combination welders in the industrial welding, fabrication, ship building and related skilled trades critical to the economic competitiveness of the City of Port Arthur and the Southeast Texas region; and WHEREAS, PAEDC has determined that SZSME Ventures, Inc. d/b/a Welding World Academy ("WWA") has developed advanced welding training to provide additional welding process training, upgraded welding techniques, advanced plate and pipe training for eligible Port Arthur residents that meet instructional and curriculum requirements for employer-aligned training to lead to industrial employment("Program Participants"); and WHEREAS, WWA shall tailor curriculum towards the following advanced competencies (i) SMAW/FCAW on Plate-Tee Joints (all positions), V-Groove (all positions) and (ii) SMAW or GTAW on Pipe (all positions); and WHEREAS, PAEDC and WWA have agreed that the training program will consist of 180 total instructional hours over a 12-week period (approximately 15 hours per week), recognizing that Program Participants have baseline welding knowledge and are entering the program for upskilling their welding competencies; and WHEREAS, WWA will identify and train up to five (5) eligible Port Arthur residents in its training program after it has received authorization from the PAEDC and the City of Port Arthur, Texas (the "City") Council; and WHEREAS,PAEDC and WWA set forth in this Agreement the terms and conditions for PAEDC to provide funds for the industrial skills training by WWA for a path to employment for eligible Port Arthur residents into industrial trades. NOW, THEREFORE, in consideration of the Recitals set forth above which are incorporated into this Agreement as if fully set forth below and for other good and valuable consideration, PAEDC and WWA hereby agree as follows: AGREEMENT DATES AGREEMENT EFFECTIVE DATE 1. This Industrial Skills Training Services Agreement (the "Agreement") is entered into and shall become effective after the final approval of the City Council and the execution of this Agreement by duly authorized representatives of WWA and PAEDC. TERM OF AGREEMENT 2. This Agreement shall have a term of twelve (12) months from its effective date on or about June_, 2026,through May_2027. EXTENSION OF AGREEMENT 3. This Agreement may be extended beyond its initial twelve (12) month term for an additional term to be determined by PAEDC provided the promised performance by WWA has been met as outlined in this Agreement. PARTIES 4. PAEDC located at 501 Procter Street, Port Arthur, Texas 77640, is a not-for- profit corporation. It is duly authorized to do business in the State of Texas under Chapter 504, Texas Local Government Code, its Board of Directors has approved this Agreement, and this Agreement has been duly authorized by Resolution of the City Council. As so authorized and as provided by the PAEDC bylaws, the President and Secretary of the PAEDC Board have the authority to execute this Agreement. 5. SZSME Ventures, Inc., 3308 Medical Triangle Street, Port Arthur, Texas 77642, and its duly authorized representative for purposes of this Agreement is Zulema Escobedo. CONDITIONS PRECEDENT 6. This Agreement has no legal consequences unless and until both the Board of Directors of the PAEDC and the City Council approve this Agreement in its final form. PROMISED PERFORMANCE 7. The parties agree to perform as follows. #2549506 Page 2 (a) PERFORMANCE BY PAEDC (1) Funding in the amount of$30,000 is allocated to WWA for the initial twelve (12) month term of this Agreement subject to annual appropriation and availability of legally available funds for the fiscal year of the program. PAEDC is not obligated beyond the fund appropriated for the fiscal year shown in this Agreement. (2) For the advanced welding training and placement services, WWA will be paid $6,000 per trainee, with payment of training costs and placement services as follows: • 25% ($1,500) at enrollment • 50% ($3,000) completion of 90 training hours and satisfactory documented skills progression. • 25% ($1,500) completion of 90 training hours and satisfactory documented skills progression. (3) No reimbursement shall be made for any training costs incurred prior to the effective date of this Agreement. (4) PAEDC has agreed that the training provided by WWA shall be on a rolling self-paced basis. (b) PERFORMANCE BY WWA (1) WWA has agreed to provide training components to include (i) welding safety and OSHA-aligned practices, (ii) blueprint reading (introductory), (iii) welding math and measurement, (iv) SMAW, FCAW, GMAW processes, (v) Fit-up techniques, (vi) 3G and 4G plate weld preparation and (vii) final performance evaluation administered by WWA (the "Programs") as outlined in the PAEDC training Provider Application attached hereto as Exhibit "A" and made a part hereof for all purposes. (2) WWA will provide Program progress focusing on the advanced welding skills development of Program Participants rather than third-party credential issuance. Thereby, WWA will be responsible for providing verification to PAEDC as to (i) training completion verification, (ii) documented skills progression, (iii) final performance evaluation and (iv) well test readiness. (3) WWA shall provide not less than 180 hours of advanced welding instruction to five (5) Port Arthur residents in the programmatic activities as outlined in paragraph 7(b)(1) above. (4) WWA shall provide funding for all costs of the Programs including faculty instruction, promotion, advertising and administrative charges #2549506 Page 3 necessary to manage, coordinate and administer the Programs, lab access, welding consumables and Program completion. (5) WWA shall provide PAEDC with a record of training hours offered and completed for each Program Participant/trainee, the number of trainees completing the training hours and identify Port Arthur residents who have accessed the training. In addition to WWA maintain the referenced attendance log and training progress documentation in 7(b)(2) above, WWA shall provide documents on all final evaluation and weld testing by Program Participants. Said records in subsection 7(b) shall be retained for five (5) years and are subject to audit by PAEDC or other authorized representatives as hereinafter stated. Additionally, it will provide any additional documentation requested by the City. (6) WWA shall solely be responsible for recruiting eligible Program Participants as potential trainees. (7) WWA shall be required to provide the following documentation prior to initiation of training and upon submittal of training cost invoices: • Insurance certificate showing commercial general liability and Worker's Compensation insurance as required by law and naming PAEDC as an additional named insured for the term of this Agreement; • Acknowledgement of indemnification set forth herein; and • Verification of classroom training location. PROGRAM PARTICIPANT ELIGIBILITY/CERTIFICATION 8. Program Participants must be verified residents of Port Arthur, Texas, and meet the eligibility requirements as outlined in Exhibit"A" attached hereto. REQUIRED DOCUMENTATION PRIOR TO PROGRAM INITIATION 9. WWA agrees to provide the following to be incorporated as Exhibit "B" to this Agreement: • Training course syllabus; • Instructor credentials; • Budget breakdown (if different from the performance payments set forth herein); • Training schedule for the training structure; • Program Participant credential verification; and • Sample assessments or skill evaluations. #2549506 Page 4 PAEDC'S CONDITIONAL OBLIGATIONS AND LIMITED LIABILITY 10. If completion rates for Program Participants fall below 60%, PAEDC, on providing ten (10) day written notice, may suspend authorization of future seats pending review. The PAEDC, at its sole option, may terminate this Agreement for nonperformance or failure to comply with the terms of this contract. In the event of such termination by the PAEDC, the PAEDC may, at its sole option, immediately cease all further funding, if any, required by this Agreement and the PAEDC shall not be liable to WWA or to any third parties for failure to make payments to WWA under the terms and conditions of this Agreement. 11. The PAEDC's sole liability/obligation shall be to WWA and shall be limited to the funding for the Programs detailed in this Agreement. The PAEDC shall not be liable, in contract or otherwise, for any expense, expenditure or cost incurred by or on behalf of WWA related to the Programs except as set forth in this Agreement. INDEMNIFICATION 12. WWA SHALL ASSUME THE RISK OF, BE LIABLE FOR, AND PAY ALL DAMAGE, LOSS, COST AND EXPENSE OF ANY PARTY, INCLUDING ANY OF ITS EMPLOYEES, ARISING OUT OF THE PERFORMANCE OF THIS AGREEMENT, EXCEPT THAT CAUSED BY NEGLIGENCE AND/OR WILLFUL MISCONDUCT SOLELY OF PAEDC AND ITS EMPLOYEES ACTING WITHIN THE SCOPE OF THEIR EMPLOYMENT. WWA SHALL HOLD HARMLESS FROM AND INDEMNIFY PAEDC AGAINST ALL CLAIMS, LOSSES, SUITS, ACTIONS, COSTS, COUNSEL FEES, LITIGATION COSTS, EXPENSES, DAMAGES, JUDGMENTS, OR DECREES BY REASON OF DAMAGE TO ANY PROPERTY OR BUSINESS AND/OR ANY DEATH, INJURY OR DISABILITY TO OR OF ANY PERSON OR PARTY, INCLUDING ANY EMPLOYEE, ARISING OUT OF OR SUFFERED, DIRECTLY OR INDIRECTLY, BY REASON OF OR IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT OR ANY ACT, ERROR OR OMISSION OF WWA, WWA'S EMPLOYEES, AGENTS OR SUBAGENCIES, WHETHER BY NEGLIGENCE OR OTHERWISE. WWA'S OBLIGATION SHALL INCLUDE, BUT NOT BE LIMITED TO INVESTIGATING, ADJUSTING, AND DEFENDING ALL CLAIMS ALLEGING LOSS FROM ACTION, ERROR OR OMISSION OR BREACH OF ANY COMMON LAW, STATUTORY OR OTHER DELEGATED DUTY BY WWA, ITS EMPLOYEES OR AGENTS. RECORDS/INSPECTION/PAEDC AUDIT 13. All records pertinent to this Agreement shall be retained by WWA for the 5-year period hereinabove stated. 14. WWA shall provide the following monthly reporting templates to the PAEDC: #2549506 Page 5 • Participant Name • Start Date • Hours Completed • Percent Completion • Expected Completion Date • Withdrawal (if applicable) Invoice Requirements: • Participant Name • Milestone Achieved • Amount Requested • Supporting Attendance Logs 15. Upon written request, WWA shall provide PAEDC with all additional reports reasonably necessary for PAEDC compliance with the Development Corporation Act of 1979. CHANGES AND AMENDMENTS 16. Any alterations, additions, or deletions to the terms of this Agreement shall be by amendment in writing and executed by all parties to this Agreement and approved by PAEDC. 17. Any alterations, additions, or deletions to the terms of this Agreement which are required by changes in Federal, state or local law are automatically incorporated into this Agreement without written amendment hereto and shall become effective on the date designated by such law or regulation. DEFAULT/TERMINATION 18. In the event of default of any of the obligations of WWA detailed herein, the PAEDC may, at its sole and exclusive option, withhold and/or disallow further PAEDC payments or incentives to WWA. 19. In addition to the foregoing, the PAEDC and WWA agree that this Agreement may be terminated at any time when both parties agree, in writing, to the terms and conditions of any such voluntary termination. ORAL AND WRITTEN AGREEMENTS/PRIOR AGREEMENTS 20. All oral and written agreements between the parties to this Agreement relating to the subject matter of this Agreement that were made prior to the execution of this Agreement have been reduced to writing and are contained in this Agreement. #2549506 Page 6 GOVERNING LAW 21. This Agreement shall be governed by the laws of the State of Texas, and venue for any matter arising or accruing under this Agreement shall be in the courts of competent jurisdiction of Jefferson County, Texas, where substantially all the performance under this Agreement shall occur. UNDOCUMENTED WORKERS 22. WWA and any branch, division or department of WWA certifies that they have not and will not knowingly employ an "undocumented worker" which means "an individual who, at the time of employment, is not lawfully admitted for permanent residence to the United States or authorized under law to be employed in that manner in the United States." WWA acknowledges that it has reviewed Chapter 2264, Texas Government Code, attached hereto as Exhibit "C" and made a part hereof for all purposes and hereby affirmatively agrees by execution of this Agreement to repay the amount of any grant with interest at the rate of ten (10%) percent per annum not later than the 120th day after the date PAEDC notifies WWA of a violation. WWA acknowledges PAEDC may bring a civil action or recover any amounts owed under this Chapter and further acknowledges that PAEDC may recover court costs and reasonable attorneys' fees incurred in an action brought under §2264.101(a). WWA is not liable for a violation of this Chapter by a subsidiary, affiliate or franchisee of WWA or by a person with whom WWA contracts. CERTIFICATION REGARDING LOBBYING/CONFLICT OF INTEREST DISCLOSURE 23. WWA shall comply with the Certification Regarding Lobbying attached hereto as Exhibit"D". WWA shall complete the Conflict of Interest attached hereto as Exhibit"E". ADDRESS OF NOTICE AND COMMUNICATIONS Port Arthur Economic Development Corporation 501 Procter Street Port Arthur, Texas 77640 ATTN: Chief Executive Officer SZSME Ventures, Inc. 3308 Medical Triangle Street Port Arthur, Texas 77642 Attn: Zulema Escobedo #2549506 Page 7 CAPTIONS 24. This Agreement has been supplied with captions to serve only as a guide to the contents. The caption does not control the meaning of any paragraph or in any way determine its interpretation or application. ATTORNEY APPROVALS APPROVED AS TO FORM: Guy Goodson, Legal Counsel for PAEDC VERIFIED AS CONSISTENT WITH CITY COUNSEL RESOLUTION: Resolution Number: City Attorney #2549506 Page 8 AGREEMENT EXECUTION PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION SIGNED AND AGREED TO on the day of , 2026. By: By: President Secretary Witness Witness #2549506 Page 9 SZSME VENTURES,INC. DB/A WELDING WORLD ACADEMY SIGNED AND AGREED TO on the day of , 2026. By: Its: Witness #2549506 Page 10 PP EXHIBIT "A" PAEDC PROVIDER APPLICATION Advanced Welding Training Program SECTION 1: ORGANIZATION INFORMATION Organization Name: SZSME Ventures, Inc. d/b/a Welding World Academy Program Title: Advanced Welding Training Program Training Location: 215 Highway 365 West Port Arthur, Texas 77640 Administrative Address: 3308 Medical Triangle Street Port Arthur, Texas 77642 Website: www.weldingworldacademy.com Texas Workforce Commission School Number: S6465 Texas Workforce Commission Status: Approved Career School and College SECTION 2: PRIMARY CONTACT Primary Contact: Christopher Gonzales Phone: 409-365-2992 Email: christopher@weldingworldacademy.com SECTION 3: PROGRAM INFORMATION Program Description The Advanced Welding Training Program is designed to provide advanced welding instruction and workforce upskilling opportunities for eligible Port Arthur residents seeking employment in #2549506 Page 11 industrial welding, fabrication, shipbuilding, petrochemical, manufacturing, and related skilled trades. Participants entering the program are expected to possess baseline welding knowledge or prior welding experience appropriate for advanced skills instruction. Advanced Welding Competencies • SMAW/FCAW on Plate—Tee Joints (all positions) • SMAW/FCAW on Plate—V-Groove (all positions) • SMAW or GTAW on Pipe—All positions • Welding safety and OSHA-aligned practices • Blueprint reading (introductory) • Welding math and measurement • Fit-up techniques • 3G and 4G plate weld preparation • Weld testing and performance evaluation Program Structure • Approximately 180 instructional hours • Approximately 12 weeks in duration • Approximately 15 instructional hours per week • Rolling enrollment/self-paced structure • Hybrid classroom and lab instruction Training Schedule Morning Schedule: Monday—Friday 8:00 AM— 1:00 PM Evening Schedule: Monday—Friday 6:00 PM—9:00 PM Training Model Students shall complete hands-on welding practice and classroom instruction in a hybrid training environment designed to support advanced industrial welding readiness. Performance-Based Reimbursement Structure • 25% ($1,500)upon enrollment/start of approved participant • 50% ($3,000)upon completion of 90 training hours and satisfactory documented program progress #2549506 Page 12 • 25% ($1,500)upon completion of the remaining 90 training hours, final performance evaluation, and submission of training completion documentation Expected Outcomes • Advanced welding skills progression • Training completion verification • Final performance evaluation • Weld test readiness documentation • Employer referral readiness for industrial opportunities This Program is intended as an advanced workforce upskilling initiative and is not represented as a third-party welding certification program. Training Deliverables • Attendance records • Hours completed • Progress evaluations • Final performance evaluations • Weld test readiness documentation • Participant completion verification • Referral and employment outcome information when available SECTION 4: PROGRAM PARTICIPANT ELIGIBILITY REQUIREMENTS To be eligible for participation under this Agreement, Program Participants must: • Be residents of the City of Port Arthur, Texas • Be at least eighteen(18)years of age • Be legally authorized to work in the United States • Complete all PAEDC eligibility and intake documentation • Possess baseline welding knowledge or prior welding experience suitable for advanced welding instruction • Receive approval from PAEDC prior to enrollment 42549506 Page 13 EXHIBIT "B" REQUIRED DOCUMENTATION PRIOR TO PROGRAM INITIATION WWA shall provide and maintain the following documentation: • Training course syllabus • Instructor credentials • Budget breakdown • Training schedule • Program attendance documentation • Training progress documentation • Final performance evaluations • Weld readiness evaluations • Sample assessments or skills evaluations • Insurance certificate showing Commercial General Liability and Workers' Compensation coverage as required by law • Verification of training location • Any additional documentation reasonably requested by PAEDC #2549506 Page 14 • EXHIBIT "C" TEXAS GOVERNMENT CODE CHAPTER 2264 RESTRICTIONS ON USE OF CERTAIN PUBLIC SUBSIDIES Sec. 2264.051. STATEMENT REQUIRED IN APPLICATION FOR PUBLIC SUBSIDIES A public agency, state or local taxing jurisdiction, or economic development corporation shall require a business that submits an application to receive a public subsidy to include in the application a statement certifying that the business, or a branch, division, or department of the business, does not and will not knowingly employ an undocumented worker. Sec. 2264.052. CONDITION ON RECEIPT OF PUBLIC SUBSIDIES The statement required by Section 2264.051 must state that if, after receiving a public subsidy, the business, or a branch, division, or department of the business, is convicted of a violation under 8 U.S.C. Section 1324a(f),the business shall repay the amount of the public subsidy with interest, at the rate and according to the other terms provided by agreement. Sec. 2264.053. AGREEMENT REGARDING REPAYMENT OF INTEREST Before awarding a public subsidy to a business,the economic development corporation shall enter into a written agreement with the business specifying the rate and terms of repayment if required under Chapter 2264. SZSME Ventures, Inc. d/b/a Welding World Academy hereby acknowledges that it has reviewed Chapter 2264, Texas Government Code. Date: By: Signature: Its (Title): #2549506 Page 15 EXHIBIT "D" CERTIFICATION REGARDING LOBBYING For Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that: 1.No funds have been paid or will be paid by or on behalf of the undersigned to any person for influencing or attempting to influence an officer or employee of any agency, member of City Council, or PAEDC in connection with the awarding of any contract, grant, loan, cooperative agreement, or modification thereof. 2. The undersigned shall require that this certification language be included in all sub-awards at all tiers. This certification is a material representation of fact upon which reliance was placed when this transaction was entered into. Date: By: Signature: Its (Title): #2549506 Page 16 EXHIBIT "E" CONFLICT OF INTEREST DISCLOSURE SZSME Ventures, Inc. d/b/a Welding World Academy hereby certifies that it has fully complied with Local Government Code §176.006, as amended, regarding disclosure requirements for persons contracting or seeking to contract with a local governmental entity. Date: By: Signature: Its (Title): #2549506 Page 17