Document:

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                                                                  Exhibit 10.5.2

                                MCGRATH RENTCORP

                         2000 LONG-TERM STOCK BONUS PLAN

                                 XXXXX XXXXXXXX

                               2001-2003 PROGRAM

        This Agreement by and between Xxxxx Xxxxx ("Xxxxxx") and McGrath
RentCorp, a California corporation, provides that Xxxxxx is a participant in the
2001-2003 Program of the McGrath RentCorp 2000 Long-Term Stock Bonus Plan under
the following terms and conditions.

        1. INITIAL VALUES: LTB Base Points:           XXX
                           EBITDA Multiplier:         X.X
                           Strike Result:           XX.X%
                           Backward
                           Average EVPS:           $XX.XX

        2. DEFINITIONS. For purposes of this Agreement, the following terms will
have the following meanings ascribed to such terms below.

               2.1 "Average EVPS Increase Percentage" shall be calculated in the
manner set forth in Section 3.1.4 below.

               2.2 "Backward Average EVPS" shall be the number set forth in
Section 1 above. (The Backward Average EVPS set forth above was calculated by
adding together the EVPS for the years 1998, 1999 and 2000, and then dividing
that sum by three (3).)

               2.3 "Board" shall mean the Board of Directors of McGrath
RentCorp.

               2.4 "Change in Control" shall mean that there has been a
corporate merger or consolidation, a sale of all or substantially all of the
assets, or a purchase of outstanding shares that results in a corporation,
partnership, person or group of persons (which corporation, partnership, person
or group of persons is not affiliated with Robert P. McGrath) owning (i) more
than fifty percent (50%) of McGrath RentCorp's outstanding voting securities or
(ii) all or substantially all of its assets and business.

               2.5 "Debt" for any particular fiscal year shall mean the
aggregate amount as of the end of that fiscal year, without duplication, of all
of McGrath RentCorp's (1) obligations for borrowed money, (b) obligations
evidenced by bonds (other than assessment and other special bonds associated
with real property holdings), debentures, notes or other similar instruments,
(c) capitalized lease obligations, and (d) obligations or liabilities of others
secured by a lien on any of McGrath RentCorp's assets, whether or not such
obligation or liability is assumed.

               2.6 "EBITDA" for any particular fiscal year shall mean (1) the
Income from Operations of McGrath RentCorp for that year as disclosed in McGrath
RentCorp's published, audited financial statements for that year; plus (2)
Depreciation and Amortization for that year as disclosed in McGrath RentCorp's
audited financial statements for that year; plus (3) any other non-cash items of
expense included in such Income from Operations that are not reasonably expected
by McGrath RentCorp's management to settle in cash; and minus (4) any non-cash
items of income included in such Income from Operations that are not reasonably
expected by McGrath RentCorp's management settle in cash.

               2.7 "EBITDA Multiplier" shall be the number set forth in Section
1 above.

               2.8 "Enterprise Value" for any particular fiscal year shall be
calculated in the manner set forth in Section 3.1.1 below.

               2.9 "EVPS" for any particular fiscal year shall be calculated by
dividing the Enterprise Value for that year by the Number of Shares for that
year.

               2.10 "Forward Average EVPS" shall be calculated in the manner set
forth in Section 3.1.3 below.

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               2.11 "Xxxxxx Shares" shall mean all securities of McGrath
RentCorp now owned by Xxxxxx or hereafter acquired by him in any manner
whatsoever.

               2.12 "LTB Base Points" shall be the number set forth in Section 1
above.

               2.13 "LTB Final Points" shall be calculated in the manner set
forth in Section 3.1.5 below.

               2.14 "Number of Shares" for any particular fiscal year shall mean
the Shares Used In Per Share Calculation, Diluted as such figure is disclosed in
McGrath RentCorp's published, audited financial statements for that year.

               2.15 The "Option to Repurchase" is the option granted by Xxxxxx
in Section 6 below to McGrath RentCorp to purchase the Xxxxxx Shares.

               2.16 "Stock Bonus Allocation" shall be the number of shares of
McGrath RentCorp Common Stock allocated to Xxxxxx as a bonus under this Program,
as determined in accordance with Section 3.2 below.

               2.17 "Stock Value" as of a particular date shall mean the then
current fair market value of McGrath RentCorp's Common Stock determined by
calculating the average of the high and low prices reported for transactions in
such Common Stock for each of the five preceding days on which transactions
occurred on NASDAQ or any exchange on which the stock is then traded, as
reported by The NASDAQ Stock Market, Inc. In the event McGrath's Common Stock is
not then traded on NASDAQ or an exchange, the fair market value of the Common
Stock shall be determined by the Board in good faith.

               2.18 "Strike Result" shall be the number set forth in Section 1
above.

               2.19 A "Successor to McGrath RentCorp" shall be (i) any
corporation which is the surviving corporation in a merger or consolidation with
McGrath RentCorp, or (ii) any corporation, partnership or person(s) which
acquires all or substantially all of the assets of McGrath RentCorp in a
transaction wherein a majority of the employees of McGrath RentCorp continue to
be employed by such purchaser.

               2.20 "Termination of Employment" shall mean the termination of
Xxxxxx's employment with McGrath RentCorp (and its subsidiaries) for any reason
whatsoever, whether by voluntary resignation due to disability or otherwise, by
reason of Xxxxxx's death, or at the election of McGrath RentCorp for any reason
whatsoever. A leave of absence approved by the Board of Directors of McGrath
RentCorp shall not be considered to be a Termination of Employment for purposes
of this Agreement.

        3. CALCULATION OF STOCK BONUS ALLOCATION.

               3.1 Calculation of LTB Final Points. As soon as the audited
financial statements of McGrath RentCorp for the year ended December 31, 2003
have been published, the LTB Final Points shall be calculated as follows:

               3.1.1 Enterprise Value shall be calculated for each of the years
2001, 2002 and 2003 in accordance with the following formula: Enterprise Value =
(EBITDA * EBITDA Multiplier) - Debt.

               3.1.2 EVPS shall then be calculated for each of the years 2001,
2002 and 2003 by taking the Enterprise Value for that year and dividing it by
the Number of Shares for that year.

               3.1.3 Forward Average EVPS shall then be calculated by adding
together the EVPS for each of the years 2001, 2002 and 2003 calculated in
accordance with Section 3.1.2 above, and then dividing that sum by three (3).

               3.1.4 The Average EVPS Increase Percentage shall then be
calculated in accordance with the following formula: Average EVPS Increase
Percentage = (Forward Average EVPS - Backward Average EVPS) / Backward Average
EVPS.

               3.1.5 LTB Final Points are then calculated in accordance with the
following formula: LTB Final Points = LTB Base Points * (Average EVPS Increase
Percentage - Strike Result) * 100.

               3.2 Allocation of Stock Bonus. Xxxxxx shall be allocated one (1)
share of McGrath RentCorp Common Stock for each LTB Final Point, or portion
thereof, calculated in accordance with Section 3.1 above.

               3.2.1 The number of shares of McGrath RentCorp Common Stock to be
allocated to Xxxxxx pursuant to this Section 3.2 shall be proportionally
adjusted for any increase or decrease in the number of outstanding shares of
Common Stock of

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McGrath RentCorp resulting from a subdivision or consolidation of shares, or for
the payment of a stock dividend (but only on the Common Stock), or for any other
increase or decrease in the number of such shares effected without receipt of
consideration by McGrath RentCorp. Adjustments under this Section 3.2.1 shall be
determined by the Board, whose determination as to what adjustments shall be
made, and the extent thereof, shall be final, binding and conclusive.

        4. ISSUANCE OF SHARE CERTIFICATES.

               4.1 Issuance of Stock Certificates. As soon as reasonably
practical following the determination of Xxxxxx's Stock Bonus Allocation,
McGrath RentCorp shall cause five stock certificates to be issued in the name of
Xxxxxx, each one evincing twenty percent (20%) of the number of shares of
McGrath RentCorp Common Stock allocated to him as a Stock Bonus.

               4.2 Delivery of First Stock Certificate. McGrath RentCorp shall
deliver to Xxxxxx one (1) of the stock certificates issued in accordance with
Section 4.1 above.

               4.3 Delivery and Re-Delivery of Four Remaining Stock
Certificates. McGrath RentCorp shall deliver the remaining four (4) stock
certificates to Xxxxxx, and Xxxxxx shall promptly redeliver back to McGrath
RentCorp the four (4) stock certificates to be held by McGrath RentCorp for
later redelivery to Xxxxxx in accordance with, and subject to, the forfeiture
provisions set forth in Section 5 below.

               4.4 Option to Receive a Portion in Cash. With respect to the
shares of Common Stock delivered to Xxxxxx pursuant to Section 4.2 above, or
with respect to any shares redelivered to him in accordance with Section 5.2
below, Xxxxxx may elect, by written notice given to McGrath RentCorp not less
than ten (10) days nor more than thirty (30) days prior to the delivery or
redelivery of a certificate evincing such shares, to receive the Stock Value of
such shares in cash, in lieu of the issuance and delivery of such shares. For
purposes of determining the Stock Value of such shares, the Stock Value shall be
calculated as of the date of such notice.

               4.4.1 Notwithstanding the foregoing right to elect to receive
cash, the maximum amount of cash which Xxxxxx shall have the right to receive in
lieu of the issuance and delivery of shares shall be forty percent (40%) of the
aggregate Stock Value of Xxxxxx's entire Stock Bonus Allocation.

        5. FORFEITURE UPON TERMINATION OF EMPLOYMENT.

               5.1 Termination of Employment Prior to End of Program. In the
event of Xxxxxx's termination of employment prior to December 31, 2003, Xxxxxx
shall have no right to receive any Stock Bonus Allocation nor any certificates
evincing any shares of McGrath RentCorp Common Stock to be issued pursuant to
this Agreement.

               5.2 Subsequent Delivery of Stock Certificates. Provided Xxxxxx
has remained in the employ of McGrath RentCorp, or its subsidiaries,
continuously from the date hereof through the applicable subsequent certificate
delivery date, one certificate evincing twenty percent (20%) of the Stock Bonus
Allocation held in the possession of McGrath RentCorp in accordance with Section
4.3 above, shall be delivered to Xxxxxx on December 31, 2004, and another one of
the certificates shall be delivered to Xxxxxx each December 31 thereafter for as
long as Xxxxxx remains in the continuous employ of McGrath RentCorp, or its
subsidiaries, until December 31, 2007, at which time all five stock certificates
shall have been delivered to Xxxxxx.

               5.3 Termination of Employment Subsequent to December 31, 2003. In
the event of Xxxxxx's Termination of Employment subsequent to December 31, 2003,
Xxxxxx shall have the right to retain, subject to the Option to Repurchase set
forth in Section 6 below all share certificates evincing Stock Bonus Allocations
which had been delivered to him pursuant to Sections 4.2 or 5.2 above prior to
his Termination of Employment; however, upon his Termination of Employment, such
share certificates still held at that time by McGrath RentCorp pursuant to
Section 4.3 or 5.2 above shall be immediately forfeited by him, and the shares
evinced thereby shall be deemed canceled and returned to the status of
authorized but unissued shares of McGrath RentCorp, and Xxxxxx shall have no
further rights or claims thereto.

        6. OPTION TO REPURCHASE. Upon Termination of Employment, Xxxxxx shall,
and does hereby, offer for sale to McGrath RentCorp, all, but not less than all,
of the Xxxxxx Shares on the terms specified in this Section 6.

               6.1 Notice of Exercise. In order to exercise the Option to
Repurchase the Xxxxxx Shares, McGrath RentCorp shall give notice of its
intention to so exercise to Xxxxxx, or to his personal representative in the
event of his death or incapacity, within three (3) months following his
Termination of Employment.

<PAGE>

               6.2 Repurchase Price. The Repurchase Price for the repurchase of
the Xxxxxx Shares shall be the Stock Value as of the date of Termination of
Employment or as of the date of the giving of the notice of exercise of the
Option to Repurchase, with the election of which price shall apply being stated
in the notice of exercise.

               6.3 Terms of Payment. Payment of the Repurchase Price shall be
made at the time that the notice of exercise of the Option to Repurchase is
given. McGrath RentCorp may first offset against the Repurchase Price due to
Xxxxxx any amount of indebtedness owed by Xxxxxx to McGrath RentCorp. Payment of
the net amount of the Repurchase Price after the offset of indebtedness shall be
as follows:

        6.3.1 One-third (1/3) thereof in cash or by check; and

               6.3.2 The remaining two-thirds (2/3) thereof by means of the
delivery of a Promissory Note, bearing interest at the rate of nine percent (9%)
per annum on the unpaid principal amount, and payable in ten (10) equal annual
installments of principal plus accrued interest, commencing one year from the
date thereof. Such Note shall permit prepayment of any amount by McGrath
RentCorp at any time without penalty.

               6.4 Other Shareholders. McGrath RentCorp may assign, partially or
completely, its Option to repurchase to one or more of its shareholders, and
each such assignee shall have the right to repurchase the Xxxxxx Shares in his,
her or its own name and for his, her or its own account, all on the same terms
and conditions specified in this Section 6; provided, that the exercise of the
Option to Repurchase as so assigned shall result in the repurchase of all of the
Xxxxxx Shares.

               6.5 Restrictive Legend. The certificates evincing the Xxxxxx
Shares shall be endorsed with an appropriate legend referring to the Option to
Repurchase granted by this Section 6. Xxxxxx shall immediately cause to be
delivered to McGrath RentCorp all certificates evincing Xxxxxx Shares which are
currently outstanding so that they may be imprinted with such a legend. Such
certificates shall be returned to Xxxxxx after they have been imprinted with the
appropriate legend.

               6.6 Permitted Transfers. Notwithstanding the provisions of this
Section 6, nothing herein shall prevent Xxxxxx from making a bona fide sale or
gift of any of the Xxxxxx Shares.

        7. RESTRICTED ACTIVITIES.

               7.1 Unfair Trade Practices. Xxxxxx acknowledges that the success
of McGrath RentCorp's business as conducted depends to a large extent upon the
business practices and methods used by it and upon the knowledge of the needs,
preferences and particularities of each of its customers and suppliers, which
practices, methods and knowledge are continuously developed by McGrath RentCorp.
Xxxxxx further acknowledges that these practices, methods and knowledge
constitute trade secrets which are valuable assets belonging to McGrath
RentCorp. Accordingly, Xxxxxx agrees that, during his employment with McGrath
RentCorp and for a period of five (5) years immediately following his
Termination of Employment, he shall not, either directly or indirectly, (i)
disclose to any person, firm or corporation, or use himself in any way, any
trade secret of McGrath RentCorp (except as may be required in the course of his
employment with McGrath RentCorp and for its benefit), or (ii) call on, solicit,
divert or take away, or attempt to call on, solicit, divert or take away any
person, firm or corporation who is a customer of or a supplier to McGrath
RentCorp, or who is being solicited by McGrath RentCorp at the time of Xxxxxx's
Termination of Employment, or who had been a customer of or supplier to McGrath
RentCorp during the six months immediately preceding Xxxxxx's Termination of
Employment.

               7.2 Covenant Not to Compete. In order to protect the element of
good will purchased in part by payment of the Repurchase Price for the Xxxxxx
Shares, and as part of the consideration for the payment of the Repurchase Price
in the event McGrath RentCorp (or some of its shareholders) purchases all of the
Xxxxxx Shares, Xxxxxx agrees, for a period of two (2) years after such purchase,
not to engage or participate, or cause any other person, firm or corporation to
become engaged, in any activity or business within the geographical regions
within which McGrath RentCorp conducts its business as of the date of
Termination of Employment, either directly or indirectly, as an employee, agent,
representative, partner, owner, director, officer or investor, which is in the
same or similar business as McGrath RentCorp. For purposes of this Section 7.2,
a purchase of the Xxxxxx Shares shall be deemed to have occurred when McGrath
RentCorp (and/or other shareholders) tenders the Repurchase Price in accordance
with Section 6.3 above.

               7.3 Enforcement. Xxxxxx agrees that a violation on his part of
any of the terms of this Agreement shall cause irreparable damage, the exact
amount of which is impossible to ascertain, and for that reason agrees that
McGrath RentCorp (and/or the other shareholders) shall be entitled to a decree
of specific performance of the terms hereof and/or an injunction restraining
further violations; said right to be in addition to any other remedies available
under law.

        8. SUCCESSOR TO MCGRATH RENTCORP.

<PAGE>

               8.1 Assumption of Program Obligations by Successor. Any Successor
to McGrath RentCorp shall be required to assume the obligations then outstanding
under this Program, or in the alternative, to enter into a substitute program
which is approved and accepted by Xxxxxx in writing, which approval and
acceptance shall not be unreasonably withheld.

               8.2 Termination of Employment. As used in this Section 8 only,
"Termination of Employment" shall not include a termination of Xxxxxx's
employment by reason of his voluntary resignation due to disability or otherwise
or by reason of his death.

               8.3 Effect of Change in Control. In the event of a Termination of
Employment at the time of a Change in Control or thereafter,

               8.3.1 The share certificate delivery schedule set forth in
Sections 4 and 5 above shall accelerate and the full Stock Bonus Allocation
shall vest as of the date of such Termination of Employment notwithstanding
Section 5.3 above, and all share certificates then held by McGrath RentCorp
pursuant to Section 4.3 above shall be delivered to Xxxxxx; and

               8.3.2 In the event Xxxxxx's Termination of Employment is prior to
December 31, 2003, the calculation of the LTB Final Points in Section 3.1 above
shall be made as of the last fiscal quarter completed prior to the Termination
of Employment, with appropriate adjustments to the calculation therein of the
Average Return on Equity.

        9. MISCELLANEOUS PROVISIONS.

               9.1 Tax Withholding. McGrath RentCorp (or any of its subsidiaries
which employ Xxxxxx) shall have the right to deduct any sums that federal, state
or local tax law requires to be withheld with respect to the issuance of Common
Stock under this Program or as otherwise may be required by such laws. McGrath
RentCorp (or such subsidiary) may require, as a condition to issuing shares of
Common Stock under this Program, that Xxxxxx or his beneficiaries pay any sums
that federal, state or local tax law requires to be withheld with respect to
such issuance.

               9.2 Privileges of Stock Ownership. Xxxxxx shall not be entitled
to the privileges of stock ownership as to any shares of Common Stock which have
been allocated to him but for which certificates have not been issued and
delivered to him.

               9.3 Non-Transferability of Stock Bonus Allocation. The right
granted hereby to Xxxxxx to receive shares of McGrath RentCorp Common Stock
under certain circumstances shall be non-transferrable by Xxxxxx other than by
will or the laws of descent and distribution. McGrath RentCorp shall not be
liable for the debts, contracts or engagements of Xxxxxx or his beneficiaries,
and rights under this Program may not be taken in execution or by attachment or
garnishment, or by any other legal or equitable proceeding; nor shall Xxxxxx or
his beneficiaries have any right to assign, pledge or hypothecate any rights or
benefits hereunder.

               9.4 No Effect on Employment. Nothing contained in this Agreement
shall confer upon Xxxxxx any right to continue in the employ of McGrath RentCorp
(or its subsidiaries) or constituted any contract or agreement of employment.

               9.5 Governmental Regulations. This Program, the grant of Stock
Bonus Allocations and the issuance of Common Stock hereunder shall be subject to
all applicable rules and regulations of governmental authorities. At the time of
the issuance of any shares of Common Stock to Xxxxxx under this Program, and as
a condition to the issuance of such shares, Xxxxxx shall give such
representations and warranties in writing to McGrath RentCorp as its legal
counsel shall deem appropriate to insure compliance with applicable securities
laws and regulations. McGrath RentCorp may place upon the certificates evincing
the shares of Common Stock being issued legends referring to restrictions on
transfer as may be appropriate in connection with compliance with applicable
securities laws and regulations.

        10. STANDARD PROVISIONS.

               10.1 Notices. All notices, requests, demands and other
communications under this Agreement shall be in writing and shall be deemed to
have been duly given (i) on the date of service if delivered personally, (ii) on
the date of transmission if sent by facsimile transmission with printed proof of
electronic receipt, (iii) on the date of delivery if delivered by a courier
service with proof of delivery, or (iv) on the third business day after mailing
if mailed by first class mail, certified, return receipt requested, postage
prepaid, to the following addresses:

               If to McGrath RentCorp, then to:  McGrath RentCorp
                                                 5700 Las Positas Road
                                                 Livermore, CA 94550
                                                 Attn: Corporate Secretary
                                                 Facsimile No.: 1-925-453-3200

<PAGE>

                                With a copy to:  Christopher Ream, Esq.
                                                 2600 El Camino Real, Suite 410
                                                 Palo Alto, CA 94306
                                                 Facsimile No.: 1-650-856-8448

                         If to Xxxxxx, then to:  Xxxxxx Xxxxxx
                                                 McGrath RentCorp
                                                 5700 Las Positas Road
                                                 Livermore, CA 94550
                                                 Facsimile No.: 1-925-453-3200

               10.2 Entire Agreement; Modification; Waiver. This Agreement
constitutes the entire agreement between the parties pertaining to the subject
matter contained herein and supersedes all prior and contemporaneous agreements,
representations and understandings of the parties. No supplement, modification
or amendment to this Agreement shall be binding unless executed in writing by
the party to be charged. No waiver of any of the provisions of this Agreement
shall be deemed, or shall constitute, a waiver of any other provision, whether
or not similar, nor shall any waiver constitute a continuing waiver. No waiver
shall be binding unless executed in writing by the party making the waiver.

               10.3 Remedies. The rights and remedies provided to any party
herein shall be cumulative and in addition to any other or further rights or
remedies available at law or in equity.

               10.4 Disputes. All disputes, controversies and claims arising out
of or relating to this Agreement, or the interpretation, construction,
performance or breach hereof shall be settled by arbitration in accordance with
the rules of the American Arbitration Association, regardless of whether one of
the parties fails or refuses to participate; and such arbitration shall take
place in Alameda County, State of California. Judgment upon the award rendered
by the arbitrator may be entered in any Court having jurisdiction thereof.
Notwithstanding the foregoing, either party hereby may bring an action in the
Superior Court of the State of California in and for Alameda County for
injunctive relief. In the event any court action is instituted, or a referral is
made to arbitration, to settle any dispute arising under this Agreement or to
enforce any right or obligation hereunder, the prevailing party shall be
entitled to recover its or his attorney fees and other expenses associated
therewith.

               10.5 Severability. In case any one or more of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, the meaning of such provision shall be
construed (to the extent feasible) so as to render the provisions valid and
enforceable, and if no feasible construction would save the provision, its
invalidity, illegality or unenforceability shall not affect any other provision
of this Agreement; rather this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never been contained herein.

               10.6 Governing Law. This Agreement shall be construed in
accordance with, and governed by, the laws of the State of California as applied
to contracts that are executed and performed entirely in California.

               10.7 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall be constitute one and the same instrument.

        IN WITNESS WHEREOF, this Agreement has been executed and delivered as of
the ________ day of November, 2001, by the undersigned Chairman of the Board and
Chief Executive Officer of McGrath RentCorp, thereunto duly authorized by the
Board of Directors of said corporation, and by Xxxxxx.

                                  MCGRATH RENTCORP

                                  BY
                                    -------------------------------------------

                                  ROBERT P. MCGRATH, CHAIRMAN OF THE BOARD
                                  AND CHIEF EXECUTIVE OFFICER

                                  ----------------------------------------------
                                  XXXXXXX  XXXXXX<PAGE>
                                                                    Exhibit 10.6

                                MCGRATH RENTCORP

                       ENVIROPLEX STOCK EXCHANGE AGREEMENT

                                  JULY 2, 2001

                                Table of Contents

<TABLE>
<S>                                                                  <C>
1. Exchange of Stock...................................................3
   1.1   Exchange of Stock.............................................3
   1.2   Closing.......................................................3
   1.3   Deliverables..................................................3
   1.4   Tax Free Exchange.............................................3
2. Representations and Warranties of the Company.......................3
   2.1   Organization, Good Standing and Qualification.................3
   2.2   Authorization.................................................3
   2.3   Valid Issuance of Securities..................................3
   2.4   Disclosure....................................................3
   2.5   Brokers or Finders............................................4
   2.6   No Representation as to Value.................................4
   2.7   No Further Agreement..........................................4
3. Representations and Warranties of the Enviroplex Stockholders.......4
   3.1   Authorization.................................................4
   3.2   Disclosure of Information.....................................4
   3.3   Acquiring Entirely for Own Account............................4
   3.4   Restricted Securities.........................................4
   3.5   Legends.......................................................4
   3.6   Brokers or Finders............................................5
   3.7   No Representation as to Value.................................5
   3.8   No Further Agreement..........................................5
   3.9   Independent Advice............................................5
4. Conditions of the Enviroplex Stockholders' Obligations at Closing...5
   4.1   Agreement Signed; Others to Close.............................5
   4.2   Representations and Warranties................................5
   4.3   All Deliverables Ready........................................5
5. Conditions of the Company's Obligations at Closing..................5
   5.1   Agreement Signed..............................................5
   5.2   Representations and Warranties................................5
   5.3   All Deliverables Ready........................................5
6. Deliverables by the Company at Closing..............................5
7. Deliverables by the Enviroplex Stockholders at Closing..............6
8. Standard Provisions.................................................6
   8.1   Further Assurances............................................6
   8.2   Survival of Warranties........................................6
   8.3   Finder's Fee..................................................6
   8.4   Fees and Expenses.............................................6
   8.5   Delays or Omissions...........................................6
   8.6   Entire Agreement..............................................6
   8.7   Construction and Titles.......................................6
   8.8   Severability..................................................6
   8.9   Governing Law.................................................7
   8.10  Confidentiality...............................................7
   8.11  Attorney's Fees...............................................7
   8.12  Mediation; Arbitration........................................7
   8.13  Corporate Securities Law......................................7
   8.14  Counterparts..................................................7

</TABLE>

Exhibits

Exhibit A   --   Schedule of Enviroplex Stockholders
Exhibit B-1 --   Spousal Consent (Sublett)
Exhibit B-2 --   Spousal Consent (Curtis)

<PAGE>

                                MCGRATH RENTCORP

                       ENVIROPLEX STOCK EXCHANGE AGREEMENT

        This Enviroplex Stock Exchange Agreement (the "Agreement") is made as of
the 2nd day of July, 2001 by and between McGrath RentCorp, a California
corporation (the "Company"), and each of the persons, severally and not jointly,
whose names are listed on Exhibit A attached hereto (each an "Enviroplex
Stockholder" and together the "Enviroplex Stockholders").

        The parties hereby agree as follows:

1.  Exchange of Stock.

        1.1 Exchange of Stock. Subject to the terms and conditions of this
Agreement, each Enviroplex Stockholder agrees to exchange at the Closing that
number of shares of Common Stock of Enviroplex, Inc., a California corporation
("Enviroplex") indicated with respect to such Enviroplex stockholder on Exhibit
A attached hereto, in consideration of the receipt of that number of shares of
the Company's Common Stock indicated with respect to such Enviroplex stockholder
on Exhibit A. Subject to the terms and conditions of this Agreement, the Company
agrees to issue to each Enviroplex stockholder at the Closing that number of
shares of the Company's Common Stock indicated with respect to such Enviroplex
stockholder on Exhibit A in consideration of the number of shares of Enviroplex
Common Stock indicated with respect to each such Enviroplex stockholder. The
shares of Common Stock of the Company issued to the Enviroplex Stockholders
pursuant to this Agreement shall be hereinafter referred to as the "McGrath
Stock."

        1.2 Closing. The exchange of shares of Enviroplex Common Stock for the
McGrath Stock shall take place at the offices of Christopher Ream, Legal
Counsel, 2600 El Camino Real, Suite 410, Palo Alto, California 94306, at 2:00
p.m., on July 2, 2001 (which time and place are designated as the "Closing"), or
at such other time and place as the Company and the Enviroplex Stockholders
shall mutually agree upon orally or in writing.

        1.3 Deliverables. At the Closing, the Company shall deliver to each
Enviroplex Stockholder those items specified in Section 6 below, and each
Enviroplex Stockholder shall deliver to the Company those items specified in
Section 7 below.

        1.4 Tax Free Exchange. The parties hereto intend that the exchange of
the Enviroplex Common Stock for McGrath Stock shall be tax free to the
Enviroplex Stockholders; however, no representation or guaranty as to the tax
treatment of the proposed transaction is being given by any party hereto.

2. Representations and Warranties of the Company. The Company hereby represents
and warrants to each Enviroplex Stockholder that:

        2.1 Organization, Good Standing and Qualification. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of California. The Company has all requisite corporate power and
authority to execute and deliver this Agreement, to issue the McGrath Stock, and
to carry out the provisions of this Agreement.

        2.2 Authorization. All corporate action on the part of the Company, its
officers, directors and shareholders necessary for the authorization, execution
and delivery of this Agreement, the performance of all obligations of the
Company hereunder, and the authorization, issuance and delivery of the McGrath
Stock has been taken or will be taken prior to the Closing.

        2.3 Valid Issuance of Securities. The McGrath Stock being issued to the
Enviroplex Stockholders hereunder, when issued and delivered in accordance with
the terms hereof for the consideration expressed herein, will be duly and
validly issued, fully paid and nonassessable and free of restrictions on
transfer other than restrictions on transfer under applicable state and federal
securities laws. Subject in part to the truth and accuracy of each Enviroplex
Stockholder's representations set forth in Section 3 of this Agreement, the
offer, exchange and issuance of the McGrath Stock as contemplated by this
Agreement are exempt from registration requirements of any applicable state and
federal securities laws of the United States.

        2.4 Disclosure. The Company's Common Stock is publicly traded and
regulated by the Securities and Exchange Commission. Disclosures regarding the
Company are contained in its Annual Report to Shareholders for the year 2000,
its Proxy Statement mailed to shareholders of the Company with respect to the
Company's May 30, 2001 Shareholders' Meeting, its Annual Report on Form 10-K for
the year 2000 filed with the Securities and Exchange Commission, and its
Quarterly Report on form 10-Q for the quarter ended March 31, 2001 filed with
the Securities and Exchange Commission. Further information regarding the
Company has been made available from time to time in press releases to the
public and in quarterly "Earnings Conference Calls" open to the public.

<PAGE>

        2.5 Brokers or Finders. The Company has no contract, arrangement or
understanding with any broker, finder or other similar person with respect to
the transactions contemplated by this Agreement.

        2.6 No Representation as to Value. The Company makes no representation
as to either the value of the McGrath Stock or the value of the shares of
Enviroplex Common Stock being exchanged therefor.

        2.7 No Further Agreement. The Company has not entered into any agreement
with, or made any promises to, or received promises from, either of the
Enviroplex Stockholders or any other person with respect to the possible
disposition of any shares of Enviroplex Common Stock which will still be held
after the Closing by either of the Enviroplex Stockholders.

3. Representations and Warranties of the Enviroplex Stockholders. Each
Enviroplex Stockholder hereby represents and warrants to the Company, as to
himself and not as to other Enviroplex Stockholders, that:

        3.1 Authorization. Such Enviroplex Stockholder has full power and
authority to enter into this Agreement and to perform his obligations hereunder.
The Enviroplex Stockholder owns the shares of Enviroplex Common Stock to be
transferred to the Company pursuant to this Agreement free and clear of all
liens and encumbrances, holds full right, title, and interest therein, and no
other person holds any interest in such shares of stock.

        3.2 Disclosure of Information. Such Enviroplex Stockholder has received
in a reasonable time prior to the date hereof the Company's Annual Report to
Shareholders for the year 2000, the Company's Proxy Statement mailed to
shareholders of the Company with respect to the Company's May 30, 2001
Shareholders' Meeting, the Company's Annual Report on Form 10-K for the year
2000 filed with the Securities and Exchange Commission, and the Company's
Quarterly Report on form 10-Q for the quarter ended March 31, 2001 filed with
the Securities and Exchange Commission. The Enviroplex Stockholder is aware that
further information regarding the Company has been made from time to time in
press releases to the public and in quarterly "Earnings Conference Calls" open
to the public, and has had an opportunity to review the same. The Enviroplex
Stockholder believes he has received all the information he considers necessary
or appropriate for deciding whether to acquire the McGrath Stock. The Enviroplex
Stockholder further represents that he has had an opportunity to ask questions
and receive answers from the Company regarding the terms and conditions of the
offering of the McGrath Stock as well as the business, properties, prospects and
financial condition of the Company, and to obtain additional information (to the
extent the Company possessed such information or could acquire it without
unreasonable effort or expense) necessary to verify the accuracy of any
information furnished to such Enviroplex Stockholder. The Enviroplex Stockholder
has not relied upon any information regarding the transactions contemplated by
this Agreement other than as set forth in this Agreement.

        3.3 Acquiring Entirely for Own Account. This Agreement is made with the
Enviroplex Stockholder in reliance upon the Enviroplex Stockholder's
representation to the Company, which by the Enviroplex Stockholder's execution
of this Agreement he hereby confirms, that the McGrath Stock to be acquired by
him will be acquired for investment for his own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof,
and that the Enviroplex Stockholder has no present intention of selling,
granting any participation in, or otherwise distributing the same. By executing
this Agreement, the Enviroplex Stockholder further represents that he does not
presently have any contract, undertaking, agreement or arrangement with any
person to sell, transfer or grant participation to such person or to any third
person, with respect to any of the McGrath Stock.

        3.4 Restricted Securities. The Enviroplex Stockholder understands that
the McGrath Stock has not been, and will not be, registered under the Securities
Act of 1933 by reason of a specific exemption from the registration provisions
of the Securities Act which depends upon, among other things, the bona fide
nature of the investment intent and the accuracy of the Enviroplex Stockholder's
representations as expressed herein. The Enviroplex Stockholder understands that
the McGrath Stock are "restricted securities" under applicable U.S. federal and
state securities laws and regulations, and that pursuant to these laws, the
Enviroplex Stockholder must hold the McGrath Stock unless they are registered
with the Securities and Exchange Commission and qualified by state authorities
or an exemption from such registration and qualification requirements is
available. The Enviroplex Stockholder acknowledges that the Company has no
obligation to register or qualify the McGrath Stock for resale. The Enviroplex
Stockholder further acknowledges that if an exemption from registration or
qualification is available, it may be conditioned on various requirements
including, but not limited to, the time and manner of sale, the holding period
for the McGrath Stock, and requirements relating to the Company which are
outside of the Enviroplex Stockholder's control and which the Company is under
no obligation, and may not be able, to satisfy.

        3.5 Legends. The Enviroplex Stockholder understands that the
certificates evincing the McGrath Stock may bear the following legend:

<PAGE>

               "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
               REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN
               ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
               WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR
               DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
               STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM
               SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
               REQUIRED UNDER THE SECURITIES ACT OF 1933."

        3.6 Brokers or Finders. The Enviroplex Stockholder has no contract,
arrangement or understanding with any broker, finder or other similar person
with respect to the transactions contemplated by this Agreement.

        3.7 No Representation as to Value. The Enviroplex Stockholder makes no
representation as to the value of the shares of Enviroplex Common Stock being
exchanged for the McGrath Stock.

        3.8 No Further Agreement. The Enviroplex Stockholder has not entered
into any agreement with, or made any promises to, or received promises from,
either the Company or any other person with respect to the possible disposition
of any shares of Enviroplex Common Stock which will still be held after the
Closing by either of the Enviroplex Stockholders.

        3.9 Independent Advice. The Company has recommended that the Enviroplex
Stockholders obtain independent legal, tax and accounting advice with respect to
the exchange contemplated by this Agreement; and the Enviroplex Stockholder has
had an opportunity to retain and obtain advice from his own legal, tax and
accounting counsel and advisors.

4. Conditions of the Enviroplex Stockholders' Obligations at Closing. The
obligations of each Enviroplex Stockholder to the Company under this Agreement
are subject to the fulfillment, on or before the Closing, of each of the
following conditions, unless otherwise waived (the waiver of any of the
following conditions shall not be effective against any Enviroplex Stockholder
who does not consent in writing thereto):

        4.1 Agreement Signed; Others to Close. This Agreement shall have been
duly executed and delivered by the Company and by all the Enviroplex
Stockholders, and all the Enviroplex Stockholders shall close the transaction
concurrently.

        4.2 Representations and Warranties. The representations and warranties
of the Company contained in Section 2 shall be true and correct in all material
respects on and as of the Closing, with the same effect as though such
representations and warranties had been made on and as of the date of the
Closing. No representation or warranty of the Company contained in this
Agreement when read together contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements
contained herein or therein not misleading in light of the circumstances under
which they were made.

        4.3 All Deliverables Ready. All documents and other items to be
delivered to the Enviroplex Stockholders at the Closing as specified in Section
6 below, shall be duly executed, ready for delivery to the Enviroplex
Stockholders, and in form and substance reasonably satisfactory to the
Enviroplex Stockholders.

5. Conditions of the Company's Obligations at Closing. The obligations of the
Company to each Enviroplex Stockholder under this Agreement are subject to the
fulfillment, on or before the Closing, of each of the following conditions,
unless otherwise waived:

        5.1 Agreement Signed. This Agreement shall have been duly executed and
delivered by all of Enviroplex Stockholders, and all the Enviroplex Stockholders
shall have satisfied all of the conditions of this Section 5 and shall be
prepared to close the transaction.

        5.2 Representations and Warranties. The representations and warranties
of each Enviroplex Stockholder contained in Section 3 shall be true and correct
in all material respects on and as of the Closing, with the same effect as
though such representations and warranties had been made on and as of the
Closing.

        5.3 All Deliverables Ready. All documents and other items to be
delivered to the Company at the Closing as specified in Section 7 below, shall
be duly executed, ready for delivery to the Company, and in form and substance
reasonably satisfactory to the Company's counsel.

6. Deliverables by the Company at Closing. At the Closing, the Company shall
deliver to each of the Enviroplex Stockholders a certificate evincing the
McGrath Stock being acquired by the Enviroplex Stockholder pursuant to this
Agreement.

<PAGE>

7. Deliverables by the Enviroplex Stockholders at Closing. At the Closing, each
Enviroplex Stockholder shall deliver to the Company a certificate evincing the
shares of Enviroplex Common Stock to be exchanged by the Enviroplex Stockholder
for the McGrath Stock pursuant to this Agreement; together with an Assignment
Separate From Certificate (Stock Power) providing for the transfer of said
shares to the Company. In the event the certificate tendered by the Enviroplex
Stockholder is for a number of shares greater than that to be transferred to the
Company, the Company, the Enviroplex Stockholder and Enviroplex shall cooperate
to ensure that Enviroplex issues back to the Enviroplex stockholder a
certificate for the balance of the shares of Enviroplex Common Stock remaining
after the transfer to the Company.

8.  Standard Provisions.

        8.1 Further Assurances. Each of the parties hereto shall execute and
deliver such instruments and take such other actions as the other parties may
reasonably request in order to carry out the intent of this Agreement.

        8.2 Survival of Warranties. Unless otherwise set forth in this
Agreement, the warranties, representations and covenants of the Company and the
Enviroplex Stockholders contained in or made pursuant to this Agreement shall
survive the execution and delivery of this Agreement and the Closing.

        8.3 Finder's Fee. Each party, severally and not jointly, represents that
it neither is nor will be obligated for any finder's, broker's or similar fee or
commission in connection with the transactions contemplated by this Agreement.
Each Enviroplex Stockholder, severally and not jointly, agrees to indemnify and
to hold harmless the Company and each of the other Enviroplex Stockholders from
any liability for any commission or compensation in the nature of a finder's,
broker's or similar fee (and the costs and expenses of defending against such
liability or asserted liability) for which such Enviroplex Stockholder is
responsible. The Company agrees to indemnify and hold harmless each Enviroplex
Stockholder from any liability for any commission or compensation in the nature
of a finder's, broker's or similar fee (and the costs and expenses of defending
against such liability or asserted liability) for which the Company or any of
its officers, employees or representatives is responsible.

        8.4 Fees and Expenses. Each party shall pay its own fees and expenses
incurred with respect to this Agreement and the transactions contemplated
hereby.

        8.5 Delays or Omissions. No delay or omission to exercise any right,
power or remedy accruing to any party under this Agreement, upon any breach or
default of any other party under this Agreement, shall impair any such right,
power or remedy of such non-breaching or non-defaulting party nor shall it be
construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor
shall any waiver of any single breach or default be deemed a waiver of any other
breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any party of any
breach or default under this Agreement, or any waiver on the part of any party
of any provisions or conditions of this Agreement, must be in writing and shall
be effective only to the extent specifically set forth in such writing. All
remedies, either under this Agreement or by law or otherwise afforded to any
party, shall be cumulative and not alternative.

        8.6 Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto pertaining to the subject matter hereof, and any and
all other written or oral agreements relating to the subject matter hereof
existing between the parties hereto are expressly canceled.

        8.7 Construction and Titles. This Agreement has been negotiated between
the parties hereto, and the language hereof shall not be construed for or
against any party. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement. A reference herein to any section shall be deemed to include a
reference to every subsection thereof. All pronouns contained herein, and any
variations thereof, shall be deemed to refer to the masculine, feminine or
neuter, singular or plural, as the identity of the parties hereto may require.

        8.8 Severability. If any provision of this Agreement is held to be
unenforceable under applicable law, it shall be interpreted, to the extent
possible, to enhance its enforceability in order to achieve the intent of the
parties to this Agreement. But if no feasible construction would save the
provision, the parties agree to renegotiate such provision in good faith. In the
event the parties cannot reach a mutually agreeable and enforceable replacement
for such provision, its invalidity, illegality or unenforceability shall not
affect any other provision of this Agreement; rather this Agreement shall be
construed as if such invalid, illegal or unenforceable provision had never been
contained herein; provided, however, no such severability shall be effective if
it materially changes the economic benefit of this Agreement to any party. The
invalidity of any provision of this Agreement as applied to certain
circumstances shall not affect the validity or enforceability of such provision
as applied to other circumstances or any other provisions of this Agreement.

<PAGE>

        8.9 Governing Law. This Agreement and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto are to be construed
in accordance with and governed by the laws of the State of California (as
permitted by Section 1646.5 of the California Civil Code or any similar
successor provision), without giving effect to any choice of law rule that would
cause the application of the laws of any jurisdiction other than the State of
California to the rights and duties of the parties hereto.

        8.10 Confidentiality. Each party hereto agrees that it shall at all
times keep confidential and not divulge, furnish or make accessible to anyone
any confidential information, knowledge or data concerning or relating to the
business or financial affairs of any other party hereto to which such party has
been or shall become privy by reason of this Agreement, discussions or
negotiations relating to the transactions contemplated hereby or thereby, except
with the prior written consent of such other party.

        8.11 Attorney's Fees. If any action at law or in equity (including
arbitration) is instituted to enforce or interpret the terms of this Agreement,
the prevailing party shall be entitled to reasonable attorney's fees, costs and
necessary disbursements in addition to any other relief to which such party may
be entitled.

        8.12 Mediation; Arbitration. Any controversy or claim arising out of or
relating to this Agreement, or the interpretation or breach hereof, shall be
referred to a neutral mediator agreed upon by the parties or selected pursuant
to the rules of Endispute, Inc. Each party shall bear its own expenses and
one-half of the expenses of the mediator. If after 90 days of the commencement
of mediation the controversy or claim has not been resolved, either party may
commence arbitration proceedings in Palo Alto, California in accordance with the
Commercial Arbitration Rules of the American Arbitration Association. If the
amount in controversy is $1,000,000 or more, the arbitration shall be held
before three arbitrators; otherwise, it shall be before a single arbitrator. In
any such arbitration proceedings, each party shall bear its own costs and
expenses and one-half of the expenses of the arbitrator(s); provided that the
arbitrator(s) shall have the authority, should he, she or they determine it
appropriate under the circumstances, to award reasonable attorneys fees and
costs to the prevailing party. Judgment upon the award rendered by the
arbitrator(s) shall be final and binding and may be entered in any court having
jurisdiction thereof.

        8.13 Corporate Securities Law. THE SALE OF THE SECURITIES WHICH ARE THE
SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF
CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SECURITIES OR
THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE
QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE
QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS
CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON
THE QUALIFICATION BEING OBTAINED UNLESS THE SALE IS SO EXEMPT.

        8.14 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.

<PAGE>

        The parties have executed this Enviroplex Stock Exchange Agreement as of
the date first written above by the undersigned, who have been duly authorized
to do so.

COMPANY:

MCGRATH RENTCORP

                                                      Address:

                                                         5700 Las Positas Road
                                                         Livermore, CA 94550
     By:
        ----------------------------------------
               Dennis C. Kakures, President

     By:
        ----------------------------------------
               Randle F. Rose, Secretary

ENVIROPLEX STOCKHOLDERS:

                                                      Address:

                                                         988 Doug Mitchell Place
                                                         Stockton, CA 95209

     --------------------------------------
             JOE G. SUBLETT

                                                      Address:

                                                         977 Stenton Way
                                                         Galt, CA 95632

     --------------------------------------
             DONALD M. CURTIS

<PAGE>

                                    EXHIBIT A

                       SCHEDULE OF ENVIROPLEX STOCKHOLDERS

<TABLE>
<CAPTION>
                                                                      Shares of McGrath
                                      Shares of Enviroplex           RentCorp Common Stock
Name of Enviroplex Stockholder    Common Stock to be Exchanged          to be Received
------------------------------    ----------------------------       ---------------------
<S>                               <C>                                <C>
Joe G. Sublett                                      7,000                      77,605

Donald M. Curtis                                      700                       7,761

</TABLE>

<PAGE>

                                  EXHIBIT B-1
                                       TO
                                MCGRATH RENTCORP
                       ENVIROPLEX STOCK EXCHANGE AGREEMENT

                                 SPOUSAL CONSENT

        The undersigned does hereby certify that she is the spouse of Joe G.
Sublett, the individual who executed the above Enviroplex Stock Exchange
Agreement. I consent to and agree with the transaction contemplated in the
Agreement by which shares of Common Stock of Enviroplex, Inc. owned by my
husband will be exchanged for shares of Common Stock of McGrath RentCorp. I
agree to execute and deliver such documents as may be necessary to carry out the
intent of this Agreement.

Dated: July 2, 2001.

                                           ------------------------------------
                                                      RITA A. SUBLETT

<PAGE>

                                  EXHIBIT B-2
                                       TO
                                MCGRATH RENTCORP
                       ENVIROPLEX STOCK EXCHANGE AGREEMENT

                                 SPOUSAL CONSENT

        The undersigned does hereby certify that she is the spouse of Donald M.
Curtis, the individual who executed the above Enviroplex Stock Exchange
Agreement. I consent to and agree with the transaction contemplated in the
Agreement by which shares of Common Stock of Enviroplex, Inc. owned by my
husband will be exchanged for shares of Common Stock of McGrath RentCorp. I
agree to execute and deliver such documents as may be necessary to carry out the
intent of this Agreement.

Dated: July 2, 2001.

                                           ------------------------------------
                                                      AURILLA A. CURTIS

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