SEC Contract Filing

Filing Date: 2020-04-03

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>mgrc-ex103_8.htm
<DESCRIPTION>EX-10.3
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<p style="text-align:right;margin-top:3pt;margin-bottom:0pt;margin-left:1.24%;text-indent:0%;font-weight:bold;font-family:Arial;font-size:11pt;font-style:normal;text-transform:none;font-variant: normal;">Exhibit 10.3</p>
<p style="text-align:justify;margin-top:3pt;margin-bottom:0pt;margin-left:1.24%;text-indent:0%;font-weight:bold;font-family:Arial;font-size:11pt;font-style:normal;text-transform:none;font-variant: normal;">AMENDED AND RESTATED FACILITY LETTER - Execution Copy</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:11pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:1.24%;text-indent:0%;font-family:Arial;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">March 30, 2020</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;">&nbsp;</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:9.5pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:1.23%;text-indent:0%;font-family:Arial;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Mr. Keith E. Pratt</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:1.23%;margin-right:71.99%;text-indent:0%;font-family:Arial;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Senior Vice President and Chief Financial Officer McGrath RentCorp</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:1.23%;margin-right:74.9%;text-indent:0%;font-family:Arial;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5700 Las Positas Road Livermore, CA 94550</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:11pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:1.23%;margin-right:49.17%;text-indent:0%;font-family:Arial;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Re:<font style="margin-left:41pt;">$12,000,000.00 Committed Credit Facility Dear Mr.</font><font style="letter-spacing:0.15pt;"> </font>Pratt:</p>
<p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;margin-left:1.23%;margin-right:1.45%;text-indent:0%;font-family:Arial;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">MUFG Union Bank, N.A. (&#8220;Bank&#8221;) is pleased to offer McGrath RentCorp, a California corporation (&#8220;Borrower&#8221;) a committed credit facility (&#8220;Facility&#8221;) under which the Bank will make advances&nbsp;&nbsp;&nbsp;&nbsp; to the Borrower from time to time up to and including March 31, 2025, not to exceed at any&nbsp;&nbsp; time the maximum principal amount of <font style="letter-spacing:-0.15pt;">Twelve </font>Million Dollars ($12,000,000.00),&nbsp;&nbsp;to&nbsp;&nbsp;be&nbsp;&nbsp;governed by the terms of the enclosed Credit Line Note (&#8220;Credit Line Note&#8221;) in favor of Bank, and subject to the conditions and agreements set forth<font style="letter-spacing:1.6pt;"> </font>below.</p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:10.5pt;">&nbsp;</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:0pt;margin-left:1.23%;margin-right:1.45%;text-indent:0%;font-weight:bold;letter-spacing:-0.05pt;font-family:Arial;font-size:11pt;font-style:normal;text-transform:none;font-variant: normal;">1.<font style="margin-left:23pt;"></font><font style="font-weight:normal;">This Facility is made available only in connection with Borrower&#8217;s use of the Bank&#8217;s sweep service for management of its checking account balances (&#8220;Sweep Service&#8221;). Therefore, this Facility shall commence on the date (&#8220;Effective Date&#8221;) of this letter 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</font><font style="letter-spacing:-0.25pt;font-weight:normal;"> </font><font style="font-weight:normal;">payable.</font></p>
<p style="margin-top:0pt;margin-bottom:0pt;text-indent:0%;font-size:10.5pt;">&nbsp;</p>
<p style="text-align:left;margin-top:0pt;margin-bottom:0pt;margin-left:1.23%;margin-right:1.45%;text-indent:0%;font-weight:bold;letter-spacing:-0.05pt;font-family:Arial;font-size:11pt;font-style:normal;text-transform:none;font-variant: normal;">2.<font style="margin-left:26pt;"></font><font style="font-weight:normal;">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 &#8220;Multibank Agreement&#8221; as used</font><font style="letter-spacing:1.3pt;font-weight:normal;"> </font><font style="font-weight:normal;">herein</font><font style="letter-spacing:1.25pt;font-weight:normal;"> </font><font style="font-weight:normal;">means</font><font style="letter-spacing:1.15pt;font-weight:normal;"> </font><font style="font-weight:normal;">that</font><font style="letter-spacing:1.25pt;font-weight:normal;"> </font><font style="font-weight:normal;">certain</font><font style="letter-spacing:1.3pt;font-weight:normal;"> </font><font style="font-weight:normal;">Amended</font><font style="letter-spacing:1.25pt;font-weight:normal;"> </font><font style="font-weight:normal;">and</font><font style="letter-spacing:1.05pt;font-weight:normal;"> </font><font style="font-weight:normal;">Restated</font><font