Document:

EX-10.5

 EXHIBIT 10.5 

EXECUTION VERSION 
 CONSENT TO
CREDIT AGREEMENT 
 This Consent to Credit Agreement (this “Consent”) is entered into as of October 15, 2014
by and among ITT EDUCATIONAL SERVICES, INC., a Delaware corporation (the “Borrower”), the Lenders party hereto, and JPMORGAN CHASE BANK, N.A., as administrative agent (the “Administrative Agent”). 

RECITALS 
 A. The
Borrower, the financial institutions from time to time party thereto as lenders (the “Lenders”) and Administrative Agent are party to that certain Credit Agreement dated as of March 21, 2012, as amended by the First
Amendment thereto dated as of March 31, 2014, the Second Amendment thereto dated as of May 29, 2014, the Third Amendment thereto dated as of June 30, 2014, the Fourth Amendment thereto dated as of July 30, 2014 and the Fifth
Amendment thereto dated as of September 15, 2014 (the “Credit Agreement”). Unless otherwise specified herein, capitalized terms used in this Consent shall have the meanings ascribed to them by the Credit Agreement. 

B. The Borrower has requested that the Lenders and the Administrative Agent grant certain consents to the Credit Agreement, on the terms and
conditions set forth below. 
 Now, therefore, in consideration of the mutual execution hereof and other good and valuable consideration,
the parties hereto agree as follows: 
 1. Consents. 

(a) Notwithstanding anything to the contrary in Sections 5.01(b) or 5.01(c) of the Credit Agreement, the internally
prepared consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows described in Section 5.01(b) of the Credit Agreement, and the certificate of a Financial Officer of the Borrower as described in
Section 5.01(c) of the Credit Agreement, in each case, as of and for the fiscal quarter ending March 31, 2014, required to be furnished by the Borrower to the Administrative Agent and each Lender pursuant to Sections 5.01(b) and
5.01(c), are required to be furnished by November 15, 2014. 
 (b) Notwithstanding anything to the contrary in
Sections 5.01(b) or 5.01(c) of the Credit Agreement, the internally prepared consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows described in Section 5.01(b) of the Credit Agreement,
and the certificate of a Financial Officer of the Borrower as described in Section 5.01(c) of the Credit Agreement, in each case, as of and for the fiscal quarter ending June 30, 2014, required to be furnished by the Borrower to the
Administrative Agent and each Lender pursuant to Sections 5.01(b) and 5.01(c), are required to be furnished by November 15, 2014. 

 (c) Notwithstanding anything to the contrary in Sections 5.01(b) or 5.01(c)
of the Credit Agreement, the internally prepared consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows described in Section 5.01(b) of the Credit Agreement, and the certificate of a Financial
Officer of the Borrower as described in Section 5.01(c) of the Credit Agreement, in each case, as of and for the fiscal quarter ending September 30, 2014, required to be furnished by the Borrower to the Administrative Agent and each Lender
pursuant to Sections 5.01(b) and 5.01(c), are required to be furnished by December 15, 2014. 
 2. Representations and
Warranties of the Borrower. The Borrower represents and warrants that: 
 (a) This Consent has been duly executed and
delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 

(b) Each of the representations and warranties of the Credit Parties set forth in the Credit Documents are true and correct in
all material respects (except that any such representation or warranty which is already qualified as to materiality or by reference to Material Adverse Effect are true and correct in all respects) on and as of the date hereof, other than any such
representations and warranties that specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date in all material respects (except that any such representation or warranty which is already qualified as
to materiality or by reference to Material Adverse Effect shall be true and correct in all respects). 
 (c) No Default has
occurred and is continuing. 
 3. Effectiveness. This Consent shall become effective upon the execution and delivery hereof by the
Borrower, the Administrative Agent and the Required Lenders, and when the following additional conditions have been satisfied: 

(a) The Borrower has delivered to the Administrative Agent a copy of the audited consolidated balance sheet and related
statement of operations, stockholders’ equity and cash flows described in section 5.01(a) of the Credit Agreement for the fiscal year ending December 31, 2013. 

(b) Each of the Subsidiary Guarantors has executed and delivered a Reaffirmation of Guaranty and Security Documents in the form
of Exhibit A hereto. 
 (c) The Borrower shall have paid (i) to the Administrative Agent for the account of each
Lender consenting to this Consent an fee equal to 0.05% of such Lender’s Commitment as of the date hereof after giving effect to this Consent, (ii) to the Administrative Agent for its own account any other agreed fees relating hereto,
which fees shall be deemed fully earned and non-refundable on the date hereof, and (iii) to Winston & Strawn LLP all outstanding legal fees and expenses in connection with this Consent and the other Loan Documents. 

 4. Reference to and Effect Upon the Credit Agreement. 

(a) Except as specifically set forth above, the Credit Agreement shall remain in full force and effect and is hereby ratified
and confirmed. 
 (b) The execution, delivery and effectiveness of this Consent shall not operate as a waiver of any right,
power or remedy of the Administrative Agent or any Lender under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement, except as specifically set forth herein. Upon the effectiveness of this Consent, each reference
in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby. 

(c) This Consent shall constitute a Credit Document. 

5. Costs and Expenses. The Borrower hereby affirms its obligation under Section 9.03 of the Credit Agreement to pay all reasonable
out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the preparation and administration of this Consent
(whether or not the transactions contemplated hereby shall be consummated). 
 6. Governing Law. This Consent shall be construed in
accordance with and governed by the law of the State of New York. 
 7. Headings. Section headings in this Consent are included
herein for convenience of reference only and shall not constitute a part of this Consent for any other purposes. 
 8. Counterparts.
This Consent may be executed in any number of counterparts, each of which when so executed shall be deemed an original but all such counterparts shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of
this Consent by email or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Consent. 

9. Release of Claims. The Borrower and the other Credit Parties hereby releases, remises, acquits and forever discharges each Lender,
the Administrative Agent and each L/C Issuer and each of their respective employees, agents, representatives, consultants, attorneys, officers, directors, partners, fiduciaries, predecessors, successors and assigns, subsidiary corporations, parent
corporations and related corporate divisions (collectively, the “Released Parties”), from any and all actions, causes of action, judgments, executions, suits, debts, claims, demands, liabilities, obligations, damages and expenses of
any and every character, known or unknown, direct or indirect, at law or in equity, of whatever nature or kind, whether heretofore or hereafter arising, for or because of any manner of things done, omitted or suffered to be done by

 
any of the Released Parties prior to and including the date of execution hereof, and in any way directly or indirectly arising out of any or in any way connected to this Consent or the other
Credit Documents (collectively, the “Released Matters”). The Borrower and each other Credit Party each hereby acknowledges that the agreements in this Section 9 are intended to be in full satisfaction of all or any alleged
injuries or damages arising in connection with the Released Matters. The Borrower and each other Credit Party each hereby represents and warrants to each Lender, Agent and each L/C Issuer that it has not purported to transfer, assign or otherwise
convey any right, title or interest of the Borrower or any other Credit Party in any Released Matter to any other Person and that the foregoing constitutes a full and complete release of all Released Matters. 

THE BORROWER AND EACH OTHER CREDIT PARTY AGREES TO ASSUME THE RISK OF ANY AND ALL UNKNOWN, UNANTICIPATED OR MISUNDERSTOOD DEFENSES, CLAIMS,
CONTRACTS, LIABILITIES, INDEBTEDNESS AND OBLIGATIONS WHICH ARE RELEASED, WAIVED AND DISCHARGED BY THIS CONSENT. THE BORROWER AND EACH OTHER CREDIT PARTY HEREBY WAIVES AND RELINQUISHES ALL RIGHTS AND BENEFITS WHICH IT MIGHT OTHERWISE HAVE UNDER ANY
CIVIL CODE OR ANY SIMILAR LAW, TO THE EXTENT SUCH LAW MAY BE APPLICABLE, WITH REGARD TO THE RELEASE OF SUCH UNKNOWN, UNANTICIPATED OR MISUNDERSTOOD DEFENSES, CLAIMS, CONTRACTS, LIABILITIES, INDEBTEDNESS AND OBLIGATIONS. TO THE EXTENT THAT SUCH
LAWS MAY BE APPLICABLE, THE BORROWER AND EACH OTHER CREDIT PARTY WAIVES AND RELEASES ANY RIGHT OR DEFENSE WHICH IT MIGHT OTHERWISE HAVE UNDER ANY OTHER LAW OR ANY APPLICABLE JURISDICTION WHICH MIGHT LIMIT OR RESTRICT THE EFFECTIVENESS OR SCOPE OF
ANY OF THEIR WAIVERS OR RELEASES HEREUNDER. 
 [signature pages follow] 

 IN WITNESS WHEREOF, the parties have executed this Consent as of the date and year first above
written. 
  

			
	ITT EDUCATIONAL SERVICES, INC.
		
	By:	 	 /s/ Daniel M. Fitzpatrick

	Name:	 	Daniel M. Fitzpatrick
	Title:	 	EVP CFO

  
  
  

  
 Consent Signature Page

 
			
	JPMORGAN CHASE BANK, N.A.,
	as a Lender and as the Administrative Agent
		
	By:	 	 /s/ Christina L Moungey

	Name:	 	Christina L Moungey
	Title:	 	Executive Director

  
  
  

  
 Consent Signature Page

 
			
	Bank of America, N.A., as a Lender
		
	By:	 	 /s/ Kevin M. Behan

	Name:	 	Kevin M. Behan
	Title:	 	Managing Director

 
			
	Wells Fargo Bank, N.A., as a Lender
		
	By:	 	 /s/ Michael J. Thomas

	Name:	 	Michael J. Thomas
	Title:	 	Senior Vice President

 
			
	Associated Bank, National Association, as a Lender
		
	By:	 	 /s/ Paul Korrison

	Name:	 	Paul Korrison
	Title:	 	Senior Vice President

 
			
	REGIONS BANK, as a Lender
		
	By:	 	 /s/ J. Richard Baker

	Name:	 	J. Richard Baker
	Title:	 	Senior Vice President

 
			
	[other Lenders], as a Lender Fifth Third Bank
		
	By:	 	 /s/ Paul D. Burch

	Name:	 	Paul D. Burch
	Title:	 	Vice President
		 	Fifth Third Bank
		 	10/14/14

 
			
	KeyBank National Association, as a Lender
		
	By:	 	 /s/ Stephen J. Jones

	Name:	 	Stephen J. Jones
	Title:	 	SVP

 
			
	[other Lenders], as a Lender
		
	By:	 	 /s/ Josh Bailey

	Name:	 	Josh Bailey
	Title:	 	Vice President, Citizens Bank

 EXHIBIT A 

REAFFIRMATION OF GUARANTY AND SECURITY DOCUMENTS 

The undersigned acknowledges receipt of a copy of the Consent dated as of October 15, 2014, agrees to such consents and to each of the
transactions referenced therein and hereby reaffirms its obligations under the Subsidiary Guaranty and the Security Documents. 
 Dated as
of October 15, 2014 
  

			
	ESI SERVICE CORP.
		
	By:	 	  

	Name:	 	
	Title:ex-10.39

 

 

 RELEASE AND SATISFACTION
 

 This RELEASE AND SATISFACTION, dated as of September 18, 2014 (the “Release”), is between TRITON EMISSION SOLUTIONS INC., a corporation incorporated in the State of Delaware (the “Borrower”) (formerly known as POLYSHIELD TECHNOLOGIES INC.  FKA GLOBETRAC INC.), and ACAMAR INVESTMENTS, INC. (the “Lender”), a corporation incorporated in the State of Washington.
 Whereas, Borrower and Lender executed that certain Loan Agreement dated as of April 19, 2012, as amended by Amendment No. 1 to Loan Agreement and Promissory Note dated as of November 16, 2012 (together the “Loan Agreement”), and that certain Security Agreement dated as of April 19, 2012 (the “Security Agreement”), and Borrower executed in favor of Lender that certain Promissory Note dated as of April 19, 2012 in the original principal amount of Two Hundred and Sixty Thousand U.S. Dollars (US $260,000) and that certain Promissory Note dated as of November 16, 2012 in the original principal amount of Twenty Five Thousand U.S. Dollars (US $25,000) (together the “Notes” and, together with the Loan Agreement and Security Agreement, the “Loan Documents”), that set forth the terms and conditions of loans made to Borrower by Lender.  
 

 Whereas, Lender has made additional loans to Borrower as follows:
 

 1)
 $ 40,000 on Feb 5, 2013
 2)
 $7,500 on Apr 5, 2013
 3)
 $7,000 on May 13, 2013
 4)
 $38,000 on Aug 30, 2013
 5)
 $3,187.5 on Jan 1, 2014
 

 Whereas, a UCC Financing Statement was filed in Delaware under Filing No. 2012 1517996 (“Financing Statement”), which secured Lender’s position as to the Collateral (as defined in the Security Agreement).
 

 Whereas, Borrower has indicated to Lender that no later than September 19, 2014, Borrower will pay to Lender the sum of Three Hundred Thousand U.S. Dollars (US $300,000) (“Funds”) and Borrower wishes to be released from its obligations under the Loan Documents and with respect to all of the foregoing loans described above from Lender to Borrower (“Loans”). 
 

 Whereas, Lender is willing to release Borrower from its obligations under the Loan Documents and for all of the Loans upon satisfaction in full of Borrower’s obligations as set forth herein.
 

 Therefore, Lender and Borrower hereby agree as follows:
 

 1)
 On or before September 19, 2014, Borrower shall pay to Lender’s counsel in trust, via wire transfer in accordance with Lender’s instructions, the Funds, receipt of which shall be acknowledged by Lender’s counsel.  
 2)
 Upon (a) execution and delivery of this Release by all parties and (b) receipt of the Funds by Lender’s counsel in accordance with Paragraph (1), Lender’s counsel shall be authorized to pay over and deliver the Funds to Lender.
 

 

 

 
 

 

 

 3)
 In consideration of the payment described, Lender and its successors and assigns shall hereby release, remise, and forever discharge Borrower and its successors and assigns, and Borrower and its successors and assigns shall hereby release, remise, and forever discharge Lender and its successors and assigns, of and from any and every obligation, duty, responsibility, action, cause, claims or demands of any kind, nature or description, at law or equity or created by agreement or statute which it now has or which its successors and assigns hereafter can, shall, or may have arising under or relating to the Loans and the Loan Documents and the transactions reflected therein.
 4)
 Within ten (10) days of Paragraph (2) of this Release having being satisfied, Lender shall file a UCC-3 amendment to effectuate termination of the Financing Statement.  
 5)
 If Paragraphs (1) and (2) of this Release are not fully satisfied as required herein by September 19, 2014, this Release shall be deemed ineffective, notwithstanding whether it has been partially or fully executed by the parties hereto, and the Loans and the Loan Documents shall remain in full force and effect, and the Funds shall be returned to Borrower in accordance with Borrower’s instructions.
 

 Each party hereby represents and warrants that this Release is within its powers, has been duly authorized, and does not conflict with any of its organizational papers.  
 

 Lender hereby represents and warrants that Borrower has no other indebtedness or obligations to it or to any of its affiliates, officers, directors, or shareholders and, for the avoidance of doubt, hereby grants a release of any such indebtedness or obligations.  This does not include nor affect (a) any stock or equity interests of Lender or any of its affiliates in Borrower which may be held by Lender or its affiliates,  nor (b) obligations of any officers, directors, or shareholders of Borrower, all of which are and shall be unaffected by this Release.
 

 This Release may be executed in as many counterparts as necessary or convenient, and by the parties on separate counterparts, each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and the same agreement.  Signatures of the parties may be transmitted by facsimile (or other electronic transmission including email of a PDF signature) and shall be deemed to be original signatures for all purposes. At the request of a party, the parties will confirm facsimile transmitted (or other electronic transmission including email of a PDF signature) signatures by signing an original document.
 

 STATUTE OF FRAUDS DISCLOSURE. ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.
 

 

 [signature page follows]
 

 

 

 

 

 

 

 

 
 

 

 

 This Release and Satisfaction is dated as of the date first written above.
 

 	 	
	 BORROWER:
 TRITON EMISSION SOLUTIONS INC.
 

 Per:/s/ Rasmus Norling
       Rasmus Norling - C.E.O.
 

 Address where notices to the Borrower are to be sent:
 Triton Emission Solutions Inc.
 610 – 1100 Melville Street
 Vancouver, British Columbia
 CANADA  V6E 4A6
	 LENDER:
 ACAMAR INVESTMENTS, INC.
 

 Per:/s/ Bernie Van Maren
       Bernie Van Maren - Secretary
 

 Address where notices to the Lender are to be sent:
 Acamar Investments, Inc.
 45793 Luckakuck Way, Suite 202
 Chilliwack, British Columbia
 CANADA  V2R 5S3

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