Exhibit 10.17
July 7, 2005
Mr. Thomas J. Sauer
Vice President and
Chief Financial Officer
McGrath RentCorp
5700 Las Positas Road
Livermore, CA 94550
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Re:
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$5,000,000.00
Committed Credit Facility
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Dear Mr. Sauer:
Union Bank of California, N.A.
(“Bank”) is pleased to offer McGrath RentCorp, a
California corporation (“Borrower”) a committed credit
facility (“Facility”) under which the Bank will make
advances to the Borrower from time to time up to and including June
30, 2008, not to exceed at any time the maximum principal amount of
Five Million Dollars ($5,000,000.00), to be governed by the terms
of the enclosed Credit Line Note (“Credit Line Note”)
in favor of Bank, and subject to the conditions and agreements set
forth below.
1. This Facility is made available only in
connection with Borrower’s use of the Bank’s sweep
service for management of its checking account balances
(“Sweep Service”). Therefore, this Facility shall
commence on the date (“Effective Date”) Borrower
becomes a Sweep Service customer and this Facility shall terminate,
if not earlier terminated, on the date Borrower ceases to continue
as a Sweep Service customer. Upon such termination Bank shall have
no further obligation to fund advances under this Facility, and all
amounts owing under the Credit Line Note shall become immediately
due and payable.
2. As provided in the Credit Line Note, the
occurrence of an Event of Default under the Multibank Agreement
shall be a default under this Facility. The term “Multibank
Agreement” as used herein means that certain Third Amended
and Restated Credit Agreement dated as of May 7, 2004, by and among
Borrower, Bank, Bank of America, N.A., Comerica Bank - California,
Wells Fargo Bank, N.A. and U.S. Bank National Association and shall
include any amendments thereto as are consented to by Bank as set
forth herein. Each capitalized term not otherwise defined herein
shall have the meaning set forth in the Multibank
Agreement.
3. Borrower shall comply with, and repeats as if
fully set forth herein as of the date hereof, all of the
representations, covenants and obligations of Borrower set forth
under Articles 6, 7, 8 and 11 (
