Exhibit 10.7

EXECUTION VERSION

FIRST AMENDMENT AND WAIVER

TO CREDIT AGREEMENT

THIS FIRST AMENDMENT AND WAIVER TO CREDIT AGREEMENT, dated as of March 11, 2011
(this “Amendment”), to the Existing Credit Agreement (such capitalized term and
other capitalized terms used in this preamble and the recitals below to have the
meanings set forth in, or are defined by reference in, Article I below) is made
by MCGRATH RENTCORP, a California corporation (the “Borrower”) and the Lenders
party hereto.

W I T N E S S E T H:

WHEREAS, the Borrower, the Lenders and Bank of America, N.A., as Administrative
Agent, Swing Line Lender, and L/C Issuer are all parties to the Credit
Agreement, dated as of May 14, 2008 (as amended or otherwise modified prior to
the date hereof, the “Existing Credit Agreement”, and as amended by this
Amendment and as the same may be further amended, supplemented, amended and
restated or otherwise modified from time to time, the “Credit Agreement”); and

WHEREAS, the Borrower has requested that the Lenders amend Section 5.19 of the
Existing Credit Agreement and waive any previous noncompliance by the Borrower
and its Subsidiaries with the prior missing language being added in this
Amendment to Section 5.19, and the Lenders are willing to effect such amendments
and waivers, on the terms and subject to the conditions hereinafter set forth.

NOW, THEREFORE, the parties hereto hereby covenant and agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1. Certain Definitions. The following terms when used in this
Amendment shall have the following meanings (such meanings to be equally
applicable to the singular and plural forms thereof):

“Amendment” is defined in the preamble.

“Amendment Effective Date” is defined in Article III.

“Borrower” is defined in the preamble.

“Credit Agreement” is defined in the first recital.

“Existing Credit Agreement” is defined in the first recital.

 

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SECTION 1.2. Other Definitions. Terms for which meanings are provided in the
Credit Agreement are, unless otherwise defined herein or the context otherwise
requires, used in this Amendment with such meanings.

ARTICLE II

AMENDMENTS TO CREDIT AGREEMENT

Effective on (and subject to the occurrence of) the Amendment Effective Date,
the provisions of the Existing Credit Agreement referred to below are hereby
amended in accordance with this Article II. Except as expressly so amended, the
Existing Credit Agreement shall continue in full force and effect in accordance
with its terms.

SECTION 2.1. Amendments to Section 5.19. Section 5.19 of the Existing Credit
Agreement is hereby amended and restated in its entirety to read as follows:

“Neither the Borrower nor any of its Subsidiaries has entered into any
Contractual Obligation (other than this Agreement or any other Loan Document)
that (a) limits the ability (i) of any Subsidiary to make Restricted Payments to
the Borrower or any Guarantor or to otherwise transfer property to the Borrower
or any Guarantor, (ii) of any Subsidiary to Guarantee the Indebtedness of the
Borrower or (iii) of the Borrower or any Subsidiary to create, incur, assume or
suffer to exist Liens on property of such Person; provided that this clause
(iii) does not apply to any negative pledge incurred or provided (x) in favor of
any holder of Indebtedness permitted under Section 7.03(e) solely to the extent
any such negative pledge relates to the property financed by or the subject of
such Indebtedness, (y) under the Prudential Note Documents or (z) under the
documents evidencing any Indebtedness described in Section 7.03(f); (b) requires
the grant of a Lien to secure an obligation of such Person if a Lien is granted
to secure another obligation of such Person (other than pursuant to the
Prudential Note Documents or any Indebtedness described in Section 7.03(f)); or
(c) materially and adversely affects such Person’s business or property, assets,
operations or condition, financial or otherwise.”

ARTICLE III

WAIVER

Effective on (and subject to the occurrence of) the Amendment Effective Date,
the Lenders hereby waive, until the Amendment Effective Date, any Event of
Default which may have resulted from the representation set forth in clause
(a)(iii) of Section 5.19 of the Credit Agreement (or any other representation,
contained in any Loan Document or other certified or signed document delivered
in connection with any Loan Document, as to compliance with the Loan Documents
or the absence of Defaults or Events of Default) being incorrect when made, but
solely to the extent that any such Event of Default existed due to the absence
of the amendments being made to the language of Section 5.19 in and by this
Amendment.

 

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ARTICLE IV

CONDITIONS TO EFFECTIVENESS

This Amendment shall become effective on the date first written above (the
“Amendment Effective Date”) following receipt by the Administrative Agent of
counterparts hereof executed on behalf of the Borrower and the Required Lenders.

ARTICLE V

MISCELLANEOUS

SECTION 5.1. Cross-References. References in this Amendment to any Article or
Section are, unless otherwise specified, to such Article or Section of this
Amendment.

SECTION 5.2. Loan Document Pursuant to Existing Credit Agreement. This Amendment
is a Loan Document executed pursuant to the Existing Credit Agreement and shall
(unless otherwise expressly indicated therein) be construed, administered and
applied in accordance with all of the terms and provisions of the Existing
Credit Agreement, as amended hereby, including Article X thereof.

SECTION 5.3. Successors and Assigns. This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

SECTION 5.4. Counterparts. This Amendment may be executed in counterparts (and
by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract. This Amendment constitutes the entire contract among the
parties relating to the subject matter hereof and supersedes any and all
previous agreements and understandings, oral or written, relating to the subject
matter hereof. Delivery of an executed counterpart of a signature page of this
Amendment by telecopy or other electronic imaging means shall be effective as
delivery of a manually executed counterpart of this Amendment.

SECTION 5.5. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, INCLUDING FOR SUCH
PURPOSES SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK.

SECTION 5.6. Full Force and Effect; Limited Amendment and Waiver. Except as
expressly amended or waived hereby, all of the representations, warranties,
terms, covenants, conditions and other provisions of the Existing Credit
Agreement and the other Loan Documents shall remain unchanged and shall continue
to be, and shall remain, in full force and effect in accordance with their
respective terms. The amendments and waivers set forth herein shall be limited
precisely as provided for herein to the provisions expressly

 

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amended or waived herein and shall not be deemed to be an amendment to, waiver
of, consent to or modification of any other term or provision of the Existing
Credit Agreement or any other Loan Document or of any transaction or further or
future action on the part of any Loan Party which would require the consent of
the Lenders under the Existing Credit Agreement or any of the Loan Documents.

SECTION 5.7. Representations and Warranties. In order to induce the Lenders to
execute and deliver this Amendment, the Borrower hereby represents and warrants
to the Lenders that, both before and after giving effect to this Amendment, all
statements set forth in clauses (a) and (b) of Section 4.02 of the Credit
Agreement are true and correct, except to the extent of the representation set
forth in Section 5.19(a)(iii) prior to giving effect to this Amendment.

 

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Amendment as of the date first above written.

 

MCGRATH RENTCORP By:   /s/ Keith E. Pratt   Name: Keith E. Pratt   Title: Chief
Financial Officer

 

First Amendment to Credit Agreement

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Acknowledged by

BANK OF AMERICA, N.A.,

as Administrative Agent

By:   /s/ Dora A. Brown   Name: Dora A. Brown   Title: Vice President

 

First Amendment to Credit Agreement

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BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender

By:

  /s/ Ronald J. Dorbny   Name: Ronald J. Dorbny   Title: Senior Vice President

 

First Amendment to Credit Agreement

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BANK OF THE WEST, as a Lender By:  

/s/ Robert Kido

  Name: Robert Kido   Title: Vice President

 

First Amendment to Credit Agreement

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Union Bank, N.A., as a Lender By:  

/s/ Henry Montgomery

  Name: Henry Montgomery   Title: Vice President

 

First Amendment to Credit Agreement

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WELLS FARGO BANK, N.A., as a Lender By:  

/s/ Eric R. Egan

  Name: Eric R. Egan   Title: AVP

 

First Amendment to Credit Agreement

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JPMORGAN CHASE BANK, N.A., as a Lender By:  

/S/ Keith Winzenried

  Name: Keith Winzenried   Title: Credit Executive

 

First Amendment to Credit Agreement

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U.S. BANK N.A., as a Lender By:  

/s/ Dev K. Ahuja

  Name: Dev K. Ahuja   Title: Assistant Vice President

 

First Amendment to Credit Agreement

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MALAYAN BANKING BERHAD, NEW YORK BRANCH, as a Lender By:  

/s/ Fauzi Zulkifli

  Name: Fauzi Zulkifli   Title: General Manager

 

First Amendment to Credit Agreement