Document:

Amendment And Ratification Of Continuing Guaranty

 Exhibit 10.16 
  
 AMENDMENT AND RATIFICATION 
 OF 
 CONTINUING GUARANTY 
  
 This Amendment and Ratification of Continuing Guaranty is executed as of July 11, 2005, by each of Enviroplex, Inc., a
California corporation, Mobile Modular Management Corporation, a California corporation, and TRS-RenTelco Inc., a company organized under the laws of British Columbia, Canada (each, a “Guarantor”), for the benefit of the Banks under that
certain Third Amended And Restated Credit Agreement dated as of May 7, 2004 (as amended, modified, and supplemented from time to time, the “Credit Agreement”), by and among McGrath RentCorp, a California corporation (the
“Borrower”), such Banks and Union Bank Of California, N.A., as Agent for such Banks, in connection with certain amendments being made to the Credit Agreement. 
  
 Pursuant to the Credit Agreement, Guarantor executed and delivered to Agent that certain Continuing Guaranty dated as of May
7, 2004 or June 11, 2004 (each, a “Guaranty”). Borrower and Guarantors desire to amend the Credit Agreement in the manner set forth in that certain Amendment No. 1 to Third Amended and Restated Credit Agreement dated of even date herewith
(“Amendment No. 1”). Except as otherwise expressly set forth herein, all capitalized terms shall have the meaning set forth in the Credit Agreement, as amended by Amendment No. 1. In order to induce Banks and Agent to make such amendment,
each Guarantor hereby agrees as follows: 
  

	 	1.	Such Guarantor hereby acknowledges that the Credit Agreement is being amended as set forth in Amendment No. 1, among other things, to increase by $60 million the maximum amount
available for borrowing thereunder by Borrower, for an increased maximum amount of $190 million of revolving loans. 

  

	 	2.	Such Guarantor (a) acknowledges it has reviewed and hereby consents to the amendment of the Credit Agreement as set forth in Amendment No. 1; (b) hereby ratifies its obligations
under the Guaranty; (c) agrees that the “Principal Amount” defined in Section 2(a) of the Guaranty is hereby amended and increased to One Hundred Ninety Million Dollars ($190,000,000.00); and (c) agrees and confirms that the Guaranty shall
fully apply to all Obligations (as defined in the Guaranty). 

  
 This Amendment and Ratification may be executed in any number of counterparts and by different parties on separate counterparts, including counterparts transmitted by facsimile or other electronic means, each of
which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same instrument and agreement. 

 IN WITNESS WHEREOF, the undersigned has executed this Amendment and Ratification of Continuing Guaranty
as of the date first above written. 
  

			
	 GUARANTORS:

	
	 Enviroplex, Inc.

		
	 By:
	 	 /s/ Thomas Sauer

	 Title:
	 	Vice President & Chief Financial Officer
	
	 Mobile Modular Management Corporation

		
	 By:
	 	 /s/ Thomas Sauer

	 Title:
	 	Vice President & Chief Financial Officer
	
	 TRS-RenTelco Inc.

		
	 By:
	 	 /s/ Thomas Sauer

	 Title:
	 	Vice President & Chief Financial OfficerCommitted Credit Facility Letter Agreement

 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 
  

	Re:	$5,000,000.00 Committed Credit Facility 

  
 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 (and including any definitions and related provisions) of the Multibank Agreement. In the event the Multibank Agreement
terminates or expires prior to the termination or expiration of this Facility, the foregoing representations, covenants and obligations of Borrower shall nevertheless survive as between Borrower and Bank with respect to this Facility and shall
continue in effect until this Facility terminates or expires. No amendment or waiver of any provision of the Multibank Agreement after the date hereof shall be effective with respect to this Facility unless the Bank consents thereto in writing.

  
 4. Borrower acknowledges that any amount outstanding under the Credit Line
Note is included within the definition of “Debt” and “Outside Debt” under the Agreement. 
  
 5. Borrower shall pay to Bank a non-refundable commitment fee for this Facility for the period of time during which this Facility is available. Such fee shall be payable in arrears in quarterly installments on the
last day of each March, June, September, and December, and on the last day this Facility is available, to be computed at the rate per annum equal to 0.125% on the average unused amount of the Facility during such period. 
  
 6. This Facility letter will be governed by the laws of the State of California. 

 Enclosed is the original Credit Line Note and a copy of the this Facility letter together with an Authorization to Pay
Proceeds of Note and Loan Disbursement Instructions, and any other contract, instrument or document Bank requires to be executed and delivered in connection with this Facility (each a “Loan Document”). The Borrower’s executing the
Loan Documents and returning them to Bank together with an appropriate corporate resolution and incumbency certificate acceptable to Bank constitutes its agreement to the terms and conditions of this Facility. 
  
 BORROWER AND BANK HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION ARISING UNDER THIS FACILITY LETTER, THE CREDIT LINE NOTE OR ANY OTHER LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING
IN CONTRACT OR TORT OR OTHERWISE; AND ANY SUCH CLAIM, DEMAND ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY. BORROWER OR BANK MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE
OF THIS CONSENT OF BORROWER AND BANK TO WAIVE THEIR RIGHT TO TRIAL BY JURY. 
  
 This offer expires on July 31, 2005 unless the executed Loan Documents [and the corporate resolution and incumbency certificate] are returned to the Bank by then. If the Effective Date has not occurred by July 31, 2005 this
Facility letter and the Credit Line Note shall terminate and be of no further force and effect on such date. 
  
 We look forward to continuing to serve you. 
  
 Yours truly, 
  
 Union Bank of California, N. A. 
  

			
	 By:
	 	 /s/ Henry Montgomery III

	 	 	Henry G. Montgomery III
	 	 	Vice President
	
	 ACCEPTED AND AGREED:

	 MCGRATH RENTCORP, a

	 California Corporation

		
	 By:
	 	 /s/ Thomas Sauer

	 	 	Thomas J. Sauer
	 	 	Vice President and Chief
	 	 	Financial Officer

  
 Date: July 11, 2005Credit Line Note

 Exhibit 10.18 
  
 CREDIT LINE NOTE 
  

					
	 Borrower Name
 MCGRATH RENTCORP., a California corporation

			
	 Borrower Address
             5700 Las Positas Road
             Livermore, California 94550
	  	Office
East Bay Coporate
Banking
______________
Maturity Date
June 30, 2008	  	Loan Number
______________
Amount
$5,000,000

  

			
	$5,000,000	 	July 11, 2005

  
 FOR VALUE RECEIVED, on June 30,
2008, the undersigned (“Borrower”) promises to pay to the order of UNION BANK OF CALIFORNIA, N.A. (“Bank”), as indicated below, the principal sum of Five Million Dollars ($5,000,000), or so much thereof as is disbursed,
together with interest on the balance of such principal sum from time to time outstanding, at a per annum rate equal to the Reference Rate, such per annum rate to change as and when the Reference Rate shall change. 
  
 As used herein, the term “Reference Rate” shall mean the rate announced by Bank
from time to time at its corporate headquarters as its “Reference Rate.” The Reference Rate is an index rate determined by Bank from time to time as a means of pricing certain extensions of credit and is neither directly tied to any
external rate of interest or index nor necessarily the lowest rate of interest charged by Bank at any given time. 
  
 All computations of interest under this note shall be made on the basis of a year of 360 days, for actual days elapsed. 
  
 1. PAYMENTS. 
  
 1.1 INTEREST PAYMENTS. Borrower shall pay interest on the last day of each quarter commencing on the first such date
to occur after the first advance under this note. Should interest not be so paid, it shall become a part of the principal and thereafter bear interest as herein provided. 
  
 1.2 PRINCIPAL PAYMENTS. All principal outstanding on this note is due and payable on the earlier of June 30, 2008 or
any accelerated maturity date. 
  
 Borrower shall pay all amounts due under this
note in lawful money of the United States at Bank’s East Bay Corporate Banking Office, or such other office as may be designated by Bank, from time to time. 
  
 2. INTEREST RATE FOLLOWING DEFAULT. In the event of default, at the option of Bank, and, to the extent permitted by law, interest
shall be payable on the outstanding principal under this note at a per annum rate equal to two percent (2%) in excess of the interest rate specified in the initial paragraph of this note, calculated from the date of default until all amounts payable
under this note are paid in full. 
  
 3. DEFAULT AND ACCELERATION OF TIME FOR
PAYMENT. Default shall include, but not be limited to, any of the following: (a) the failure of Borrower to make any payment required 

 under this note when due; (b) any breach misrepresentation or other default by Borrower, any guarantor, co-maker
endorser, or any person or entity other than Borrower providing security for this note (hereinafter individually and collectively referred to as the “Obligor”) under any security agreement, guaranty or other agreement between Bank and any
Obligor; (c) the insolvency of any Obligor or the failure of any Obligor generally to pay such Obligor’s debts as such debts become due; (d) the commencement as to any Obligor of any voluntary or involuntary proceeding under any laws relating
to bankruptcy, insolvency, reorganization, arrangement, debt adjustment or debtor relief; (e) the assignment by any Obligor for the benefit of such Obligor’s creditors; (f) the appointment, or commencement of any proceedings for the
appointment, of a receiver, trustee custodian or similar official for all or substantially all of any Obligor’s property; (g) the commencement of any proceeding for the dissolution or liquidation of any Obligor; (h) the termination of existence
or death of any Obligor; (i) the failure of any Obligor to comply with any order, judgment, injunction, decree, writ or demand of any court or other public authority; (j) the filing or recording against any Obligor, or the property of any Obligor,
of any notice of levy, notice to withhold, or other legal process for taxes other than property taxes; (k) the default by any Obligor personally liable for amounts owed hereunder on any obligation concerning the borrowing of money; (l) the issuance
against any Obligor, or the property of any Obligor, of any writ of attachment, execution, or other judicial lien; (m) the deterioration of the financial condition of any Obligor which results in Bank deeming itself, in good faith, insecure; (n)
Borrower’s failure to comply with any provision of the Multibank Agreement (as defined in that certain facility letter between Borrower and Bank dated July 7, 2005 (“Facility Letter”), executed in connection herewith); or (o)
Borrower’s failure to comply with any provision of the Facility Letter. Upon the occurrence of any such default, Bank may declare, in its discretion, all obligations under this note immediately due and payable; however, upon the occurrence of
an event of default under d, e, f, g, or n all principal and interest shall automatically become immediately due and payable. 
  
 4. ADDITIONAL AGREEMENTS OF BORROWER. If any amounts owing under this note are not paid when due, Borrower promises to pay all costs and expenses, including
reasonable attorneys’ fees, incurred by Bank in the collection or enforcement of this note. Borrower and any endorsers of this note for the maximum period of time and the full extent permitted by law (a) waive diligence, presentment, demand,
notice of nonpayment, protest, notice of protest, and notice of every kind; (b) waive the right to assert the defense of any statute of limitations to any debt or obligation hereunder; and (c) consent to renewals and extensions of time for the
payment of any amounts due under this note. If this note is signed by more than one party, the term ‘Borrower” includes each of the undersigned and any successors in interest thereof; all of whose liability shall be joint and several. The
receipt of any check or other item of payment by Bank, at its option, shall not be considered a payment on account until such check or other item of payment is honored when presented for payment at the drawee bank. Bank may delay the credit of such
payment based upon Bank’s schedule of funds availability, and interest under this note shall accrue until the funds are deemed collected. In any action brought under or arising out of this note, Borrower and any endorser of this note, including
their successors and assigns, hereby consents to the jurisdiction of any competent court within the State of California, except as provided in any alternative dispute resolution agreement executed between Borrower and Bank, and consents to service
of process by any means authorized by said state law. The term “Bank” includes, without limitation, any holder of this note. This note shall be construed in accordance with and governed by the laws of the State of California. 

 This note is subject to the terms of the Facility Letter between Borrower and Bank executed in connection herewith but in
the event of any conflict between the terms of such Facility Letter and this note the terms of this note shall prevail. 
  

			
	MCGRATH RENTCORP, a
	 California corporation

		
	 By:
	 	 /s/ Thomas Sauer

	 	 	Thomas J. Sauer
	 	 	Vice President and
	 	 	Chief Financial Officer

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