Document:

EXHIBIT 10.9

 Exhibit 10.9 
  
 FORM OF 
 DEFERRED STOCK AWARD AGREEMENT 
  
 UNDER THE
DIAMONDROCK HOSPITALITY COMPANY 
 2004 STOCK OPTION AND INCENTIVE PLAN 
  
 Name of Grantee: 
 No. of Shares: 
 Purchase Price per Share: 
 Grant Date: 
 Final Acceptance Date: 
  

This Deferred Stock Award Agreement (the “Agreement”), made as of the
             day of             , 2005 (the “Grant Date”) by and between DiamondRock Hospitality
Company (the “Company”), and              (the “Grantee”), evidences the grant by the Company of certain shares of Deferred Stock set forth above
(the “Award”) to the Grantee on such date and the Grantee’s acceptance of the Award in accordance with the provisions of the DiamondRock Hospitality Company 2004 Stock Option and Incentive Plan (the “Plan”).
The Company and the Grantee agree as follows: 
  
 1. Basis
for Award. This Award is made in accordance with Section 8 of the Plan. 
  
 2. Deferred Stock Awarded. 
  
 (a) The Company hereby awards to the Grantee, in the aggregate the number of shares of Deferred Stock set forth above. 
  
 (b) The Company shall in accordance with the Plan establish and maintain an account (the “Deferred Stock Account”) for the Grantee, and such
account shall be credited with the number of shares of Deferred Stock granted to the Grantee. 
  
 (c) Until the payment of Deferred Stock awarded to the Grantee, the Deferred Stock and any related securities, dividends or other property nominally credited to a Deferred Stock Account shall not be sold, transferred,
or otherwise disposed of and shall not be pledged or otherwise hypothecated. 
  
 (d) Upon the payment of any dividends (or other distribution) by the Company, the Company shall, on the day such dividend (or other distribution) is paid, credit the Deferred Stock Account with additional shares (or a
fraction of a share) of Deferred Stock equal to the fair market value of the Stock (determined as of the close of the New York Stock Exchange on such payment date) in lieu of paying such dividend or making such other distribution. The determination
of fair market value shall be made by the Administrator acting in good faith. Any such additional shares of Deferred Stock shall be subject to the same vesting schedule and deferral as the original Award and such additional shares shall be paid on
the same date that the original Award is paid. On the date that the Award is paid, all fractional shares shall be eliminated. 
  
 3. Vesting and Deferral Period. The Deferred Stock covered by this Agreement shall vest on the Grant Date. Notwithstanding the foregoing,
except as provided in Section 4 

  

 1 

 
below, settlement and payment of the Deferred Stock shall automatically be deferred for a period of five (5) years from the Grant Date (the “Deferral
Period”) and shall be paid in accordance with Section 4 below. Notwithstanding the foregoing, if Grantee’s service with the Company is terminated for Cause (as defined below) prior to the expiration of the Deferral Period, all amounts
credited to the Grantee’s Deferred Stock Account shall be forfeited and no payments shall be made to the Grantee hereunder. For purposes hereof “Cause” shall mean the occurrence of any of the following events based on a determination
by the Board of Directors of the Company (the “Board”) in good faith: (i) the conviction or indictment of the Grantee of, or the entry of a plea of guilty or nolo contendere by the Grantee to, any felony; (ii) fraud, misappropriation or
embezzlement by the Grantee; (iii) the Grantee’s willful failure or gross negligence in the performance of his assigned duties for the Company, which failure or gross negligence continues for more than 15 days following the Grantee’s
receipt of written notice of such willful failure or gross negligence from the Board; (iv) any act or omission of the Grantee that has a demonstrated and material adverse impact on the Company reputation for honesty and fair dealing; (v) the breach
by the Grantee of his duties under any agreement he is a party to with the Company or any of its affiliates or any material term of any such agreements; or (vi) a material violation by Grantee of the Company’s employment policies which
continues for more than 15 days following written notice of such violation from the Board. 
  
 4. Payment. Except as provided in the Plan, upon the earlier to occur of (i) a Sale Event or (ii) expiration of the Deferral Period, the Grantee’s Deferred Stock Account shall be paid in full
and payment shall be made in the form of shares of Stock equal to the number of Deferred Stock credited to the Grantee’s Deferred Stock Account which are being paid and settled. The Administrator shall cause a stock certificate to be delivered
to the Grantee with respect to such shares of Stock free of all restrictions hereunder, except for applicable federal securities laws restrictions. Any securities, cash dividends or other property credited to the Deferred Stock Account other than
Deferred Stock shall be paid in kind, or, in the discretion of the Committee, in cash. Notwithstanding the foregoing, to the extent that a Grantee is a “specified employee” as defined under Section 409A of the Code at the time the payments
contemplated hereunder are to be made, any payments of deferred compensation that may be made as a result of the Grantee’s separation from service shall commence six (6) months and one day following such separation from service if earlier
payment would be a violation of Section 409A of the Code. In addition, the timing of certain payment of awards provided for under this Plan may be revised as necessary for compliance with Section 409A of the Code with or without a Grantee’s
consent. This Section 4 is not intended to accelerate the payment of deferred compensation within the meaning of Section 409A of the Code in a manner which would subject the Grantee to any taxes and penalties under Section 409A of the Code. As such,
this Section 4 shall operate only to accelerate the payment of any Award, if such acceleration does not cause the Grantee to become subject to taxes and penalties under Section 409A(a)(1)(B) of the Code or otherwise violate Section 409A(a)(2) of the
Code. 
  
 5. Compliance with Laws and
Regulations. The issuance of shares of Stock upon the settlement of the Deferred Stock shall be subject to compliance by the Company and the Grantee with all applicable requirements of securities laws, other applicable laws and regulations
of any stock exchange on which the Shares may be listed at the time of such issuance or transfer. The Grantee understands that the Company is under no obligation to register or qualify the Stock with the United States Securities and Exchange
Commission, any state securities commission or any stock exchange to effect such compliance. 
  

 2 

 6. Tax Withholding. The Grantee agrees that no later than the date as of which the
Deferred Stock vest and/or are settled, the Grantee shall pay to the Company (in cash or to the extent permitted by the Administrator, shares of Stock otherwise deliverable to the Grantee hereunder or previously held by the Grantee whose Fair Market
Value on the day preceding the date the Deferred Stock vests and/or are settled is equal to the amount of the Grantee’s tax withholding liability) any federal, state or local taxes of any kind required by law to be withheld, if any, with
respect to the Deferred Stock. Alternatively, the Company or its Subsidiary shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Grantee (including payments due when the Deferred Stock
vest and/or settled) any federal, state or local taxes of any kind required by law to be withheld. 
  
 7. Nontransferability. Except as provided in the Plan, this Award is not transferable. 
  
 8. No Right to Continued Employment. Nothing in this
Agreement shall be deemed by implication or otherwise to impose any limitation on any right of the Company or any of its affiliates to terminate the Grantee’s employment at any time, in the absence of a specific written agreement to the
contrary. 
  
 9. Representations and Warranties of
Grantee. The Grantee represents and warrants to the Company that: 
  
 (a) Agrees to Terms of the Plan. The Grantee has received a copy of the Plan and has read and understands the terms of the Plan and this Agreement, and agrees to be bound by their terms and conditions. The
Grantee acknowledges that there may be adverse tax consequences upon the vesting and/or settlement of Deferred Stock or thereafter and that the Grantee should consult a tax adviser prior to such time. The Company makes no guarantee to the Grantee
that the Award granted hereunder will not be taxable prior to payment or that the Plan and this Award comply with Section 409A of the Code. 
  
 (b) Cooperation. The Grantee agrees to sign such additional documentation as may reasonably be required from time to time by the Company.

  
 10. Adjustment Upon Changes in
Capitalization. In the event of a Change in Stock as set forth in Section 3 of the Plan, the Administrator may make appropriate adjustments to the number and class of shares relating to the Deferred Stock as it deems appropriate, in its sole
discretion, to preserve the value of this Award. The Committee’s adjustment shall be made in accordance with the provisions of Section 3 of the Plan and shall be effective and final, binding and conclusive for all purposes of the Plan and this
Agreement. 
  
 11. Governing Law;
Modification. This Agreement shall be governed by the laws of the State of Maryland without regard to the conflict of law principles. The Agreement may not be modified except in writing signed by both parties. 
  
 12. Defined Terms. Except as otherwise provided herein,
or unless the context clearly indicates otherwise, capitalized terms used but not defined herein have the definitions as provided in the Plan. The terms and provisions of the Plan are incorporated herein by reference. In the event of a conflict or
inconsistency between the non-discretionary terms and provisions of the Plan and the provisions of this Agreement, the Plan shall govern and control. 
  

 3 

 13. Miscellaneous. The masculine pronoun shall be deemed to include the feminine,
and the singular number shall be deemed to include the plural unless a different meaning is plainly required by the context. 
  
 IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date first above written. 
  

			
	DIAMONDROCK HOSPITALITY COMPANY
		
	By:	 	 
	 	 	 Name:
 Title:

  

			
	 GRANTEE

		
	By:	 	 
	 	 	 

  

	

	

  

 4Amendment No. 1 To The Third Amended And Restated Credit Agreement

 Exhibit 10.15 
  
 AMENDMENT NO. 1 
 TO THE 
 THIRD AMENDED AND RESTATED CREDIT AGREEMENT 
 DATED MAY 7, 2004 
  
 This Amendment No. 1 to Third Amended and Restated Credit Agreement (this “Amendment”) is dated as of July 11, 2005, by and among McGRATH RENTCORP, a California corporation (the “Borrower”), the
banks listed on the signature pages hereof (individually a “Bank” and collectively “Banks”), and UNION BANK OF CALIFORNIA, N.A., as agent (the “Agent”) for the Banks. 
  
 Recitals 
  
 A. Agent, Banks and Borrower are parties to a Third Amended and Restated Loan Agreement dated as of May 7, 2004 (as amended,
modified and supplemented from time to time, the “Credit Agreement”). 
  
 B. Borrower wishes to increase the aggregate Commitment from the Banks from $130 million to $190 million, to extend the availability of the Commitment for approximately one year beyond its current termination date,
and to amend certain interest rate, commitment fee and financial covenants of the Credit Agreement. Banks are willing to so increase and extend the Commitment and to amend the Credit Agreement in other respects on and subject to the terms and
conditions set forth in this Amendment. 
  
 C. Each capitalized
term used but not otherwise defined herein shall have the meaning ascribed thereto in the Credit Agreement. 
  
 NOW, THEREFORE, the parties hereto hereby agree as follows: 
  
 Article I 
 Amendments to Credit
Agreement 
  
 This Amendment shall be deemed to be an
amendment to the Credit Agreement and shall not be construed in any way as a replacement or substitution therefor. All of the terms and conditions of, and terms defined in, this Amendment are hereby incorporated by reference into the Credit
Agreement as if such terms and provisions were set forth in full therein. 
  
 1.1 Borrower has requested that Banks amend the Credit Agreement in certain respects, including the extension of additional credit in the form of a $60 million increase in the Commitment. Banks are willing to increase
the Commitment and to amend the Credit Agreement on the terms and conditions set forth in this Amendment. 
  
 1.2 Article 1 of the Credit Agreement, entitled “Definitions,” is hereby amended as follows: 
  
 (a) The definition of “Commitment” is amended by replacing
the reference to “One Hundred Thirty Million Dollars ($130,000,000)” therein to “One Hundred Ninety Million Dollars ($190,000,000).” 

 (b) The definition of “EBITDA” is amended by adding to the end thereof an additional
proviso, as follows: “provided further, that EBITDA shall also include proforma EBITDA from the Borrower’s acquisition of Class Leasing, Inc., calculated by multiplying $366,667 by the number of full months prior to the
acquisition of Class Leasing, Inc. included in the determination of EBITDA.” 
  
 (c) The definition of “Pro Rata Share” is amended and restated in its entirety to read as follows: 
  
 “Pro Rata Share” means, with respect to each Bank, the percentage set forth next to that Bank’s name as follows:

  

				
	 Bank

	  	Pro Rata Share

	 
	 Union Bank of California, N.A.
	  	25.26315789	%
	 Bank of America, N.A.
	  	21.05263158	%
	 U.S. Bank National Association
	  	17.89473684	%
	 Comerica Bank
	  	17.89473684	%
	 Wells Fargo Bank, N.A.
	  	17.89473684	%

  
 (d) The definition of
“Termination Date” is amended by replacing the reference to “July 2, 2007” therein to “June 30, 2008.” 

 1.3 Section 2.3.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:

  
 2.3.2. Rate Options and Applicable
Margins. The Rate Options and Applicable Margins for Loans shall be determined based upon the type of Loan and the current Funded Debt/EBITDA Ratio, as set forth in the table below: 
  

					
	 Type of Loan /
 Rate
Option

	  	 Funded Debt/
 EBITDA Ratio

	  	Applicable Margin on
Revolving Loans

	 Eurodollar Loans /
 Interbank Rate
 (Reserve Adjusted):
	  	 Equal to or greater than
 1.75 to 1.00
	  	1.10%
			
	 	  	 Equal to or greater than
 1.25 to 1.00 but less
than
 1.75 to 1.00
	  	0.90%
			
	 	  	Less than 1.25 to 1.00	  	0.75%
			
	 Reference Rate Loans
 / Reference Rate:
	  	[Not applicable]	  	0.00%

  
 The Applicable Margin
shall be subject to reduction or increase, as applicable and as set forth in the table above, on a quarterly basis according to the performance of Borrower as measured by the Funded Debt/EBITDA Ratio for the immediately preceding fiscal quarter of
Borrower. Any such increase or reduction in the Applicable Margin shall be effective on the next Business Day after receipt by Agent of the applicable financial statements and the corresponding Compliance Certificate. If the financial statements and
the Compliance Certificate of Borrower setting forth the Funded Debt/EBITDA Ratio are not received by the Agent by the date required pursuant to this Agreement, the Applicable Margin shall be determined as if the Funded Debt/EBITDA Ratio exceeds
1.75 to 1.00, commencing on the date when Borrower’s time to deliver such financial statements and Compliance Certificate shall have expired and continuing until such time as such financial statements and Compliance Certificate are received and
any Event of Default resulting from a failure to timely deliver such financial statements or Compliance Certificate has been waived in writing by the Required Banks. 
  
 Effective as of the date of this Amendment and continuing until the next adjustment required under Section 2.3.2, the Applicable Margin on
outstanding Revolving Loans is 0.90%, based on Borrower’s most recently reported Funded Debt/EBITDA Ratio. 
  
 1.4 Each Bank’s Pro Rata Share of the Commitment shall be the dollar amount set forth opposite such Bank’s name on the signature pages to this
Amendment. 
  
 1.5 Section 3.7 of the Credit Agreement is
hereby amended and restated in its entirety as follows: 
  
 3.7. Commitment Fee. Borrower shall pay to Agent, for distribution to each Bank in proportion to that Bank’s Pro Rata Share, commitment fees (the “Commitment Fee”) at the rate per annum shown in
the table below which corresponds to the current Funded Debt/EBITDA Ratio, applied to the daily unused Commitment, computed for the actual number of days elapsed on the basis of a year consisting of 360 days for the period from and including the
date of this Agreement to and including the Revolving Loan Termination Date, payable 

 in arrears (i) in quarterly installments on the last Business Day of each March, June September and
December commencing on the first such date to occur after the Effective Date, and (ii) on the Termination Date or the date on which the Commitment is terminated in full pursuant to Section 2.7 or Section 9.2. 
  

			
	 Funded Debt/
 EBITDA Ratio

	  	 Commitment Fee
 Percentage

	 Equal to or greater than 1.75 to 1.00
	  	0.25%
		
	 Equal to or greater than 1.25 to 1.00 but less than 1.75 to 1.00
	  	0.20%
		
	 Less than 1.25 to 1.00
	  	0.15%

  
 The applicable
Commitment Fee percentage shall be subject to reduction or increase, as applicable and as set forth in the table above, on a quarterly basis according to the performance of Borrower as measured by the Funded Debt/EBITDA Ratio for the immediately
preceding fiscal quarter of Borrower. Any such increase or reduction in the Commitment Fee percentage shall be effective on the next Business Day after receipt by Agent of the applicable financial statements and the corresponding Compliance
Certificate. If the financial statements and the Compliance Certificate of Borrower setting forth the Funded Debt/EBITDA Ratio are not received by the Agent by the date required pursuant to this Agreement, the Commitment Fee percentage shall be
determined as if the Funded Debt/EBITDA Ratio exceeds 1.75 to 1.00, commencing on the date when Borrower’s time to deliver such financial statements and Compliance Certificate shall have expired and continuing until such time as such financial
statements and Compliance Certificate are received and any Event of Default resulting from a failure to timely deliver such financial statements or Compliance Certificate has been waived in writing by the Required Banks. 
  
 1.6 Section 6.2 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows: 
  
 6.2.
Subsidiaries. Borrower has no Subsidiaries as of July 11, 2005, except: Mobile Modular Management Corporation, Space-Co Corporation, eRentCorp.com, AskSpecs.com, Enviroplex, Inc., TRS-RenTelco Inc., and eRentNetworks. Borrower has no Active
Subsidiaries as of the date of this Agreement except Enviroplex, Inc., TRS-RenTelco Inc., and Mobile Modular Management Corporation. 
  
 1.7 Sections 6.9 and 7.2 of the Credit Agreement are hereby amended to include as a permitted use of proceeds any acquisition otherwise permitted under
Section 8.1 of the Credit Agreement. 
  
 1.8 The form of
Compliance Certificate referenced in Section 7.3(c) of the Credit Agreement and attached thereto as Exhibit A is hereby replaced in its entirety with the form of Compliance Certificate attached to this Amendment as Exhibit “A”.

  
 1.9 Section 7.11(b) of the Credit Agreement is hereby amended
and restated in its entirety as follows: “(b) a ratio of Funded Debt to EBITDA of not more than 2.25 to 1.00 at all times; and” 

 1.10 Section 8.4 of the Credit Agreement is amended by replacing the reference to “One Hundred
Million Dollars ($100,000,000)” therein to “One Hundred Twenty-five Million Dollars ($125,000,000).” 
  
 1.11 Banks agree that in the event all the Banks consent in writing at any time to a Transfer by Borrower of its ownership interests in a Subsidiary which
is at the time of such Transfer an Active Subsidiary and which Transfer would otherwise be prohibited under Section 8.2 of the Credit Agreement, then from and after the date of such Transfer such entity shall no longer be considered an Active
Subsidiary for purposes of the Credit Agreement, including without limitation, the provisions of Articles 7, 8 and 9 thereof, and any Continuing Guaranty previously executed and delivered by such entity shall be terminated and released. 

 
 ARTICLE II 
 Conditions to Effectiveness 
 of Amendment  
  
 2.1 The effectiveness of this Amendment is subject to the fulfillment to the
satisfaction of Agent, in its sole discretion, of the following conditions precedent: 
  
 (a) Borrower shall have executed and delivered to Agent and to each Bank an original counterpart of this Amendment, and to each Bank a replacement Revolving Note, in the form attached hereto as Exhibit
“B”, completed with the applicable amount of such Bank’s Commitment as amended by this Amendment and referencing such Bank’s prior Revolving Note being replaced. 
  
 (b) Borrower shall have paid to Agent for ratable distribution to Banks, a one-time facility fee in the amount of $95,000 in
connection with the increase in the Commitment and this Amendment, and shall have reimbursed Agent its costs and expenses, including attorneys’ fees and costs, incurred in connection with the negotiation, preparation and closing of this
Amendment. 
  
 (c) Agent shall have received appropriate
authorization documents, including borrowing resolutions and certificates of incumbency, confirming to Agent’s satisfaction that all necessary corporate and organizational actions have been taken to authorize Borrower to enter into this
Amendment. 
  
 (d) Agent shall have received such other documents,
instruments or agreements as Agent may require to effectuate the intents and purposes of this Amendment. 
  
 Article III 
 Representations and Warranties 
  
 Borrower hereby represents and warrants to Agent and each Bank that:

  
 3.1 After giving effect to the amendment of the Credit
Agreement pursuant to this Amendment and the consummation of the transactions contemplated hereby (i) each of the 

 representations and warranties set forth in Article 6 of the Credit Agreement is true and correct in all respects as if
made on the date hereof (with references to the Credit Agreement being deemed to include this Amendment), and (ii) there exists no Default or Event of Default under the Credit Agreement after giving effect to this Amendment. 
  
 3.2 Borrower has full corporate power and authority to execute and deliver
this Amendment, to make and deliver the replacement Revolving Notes, and to perform the obligations of its part to be performed thereunder and under the Credit Agreement as amended hereby. Borrower has taken all necessary action, corporate or
otherwise, to authorize the execution and delivery of this Amendment and each of the documents described herein. No consent or approval of any person, no consent or approval of any landlord or mortgagee, no waiver of any lien or similar right and no
consent, license, approval or authorization of any governmental authority or agency is or will be required in connection with the execution or delivery by Borrower of this Amendment or the performance by Borrower of the Credit Agreement as amended
hereby. 
  
 3.3 This Amendment, the replacement Revolving Notes
and the Credit Agreement as amended hereby are, or upon delivery thereof to Banks will be, the legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their respective terms, except as such enforceability
may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally. 
  
 Article IV 
 Miscellaneous 
  
 4.1 The Credit Agreement, the other Loan Documents and all agreements,
instruments and documents executed and delivered in connection with any of the foregoing shall each be deemed to be amended hereby to the extent necessary, if any, to give effect to the provisions of this Amendment. Except as so amended hereby, the
Credit Agreement and the other Loan Documents shall remain in full force and effect in accordance with their respective terms. 
  
 4.2 Borrower agrees to pay Agent on demand reasonable fees and costs of attorneys incurred by Agent in connection with the preparation, negotiation and
execution of this Amendment and any document required to be furnished hereunder. 
  
 4.3 This Amendment 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. 
  
 [signature pages follow] 

 [Signature Page To Amendment No. 1 To Third Amended And Restated Credit Agreement] 
  
 IN WITNESS WHEREOF, Borrower, Banks and Agent have executed this Amendment as
of the date set forth in the preamble hereto. 
  
 BORROWER:

									
			
	 	  	McGRATH RENTCORP	  	 
					
	 	  	 	  	By:	 	 /s/ Thomas Sauer

	  	 
	 	  	 	  	 	 	Thomas J. Sauer	  	 
	 	  	 	  	Title:	 	Vice President and Chief Financial Officer	  	 
				
	 	  	 	  	Notice Address:	  	 
	 	  	 	  	 	 	5700 Las Positas Road	  	 
	 	  	 	  	 	 	Livermore, California 94550	  	 
	 	  	 	  	 	 	Attention: Mr. Thomas Sauer, Chief Financial Officer	  	 
	 	  	 	  	 	 	Fax: 925-453-3200	  	 
				
	BANKS:	  	 	 	 	  	 
			
	 	  	UNION BANK OF CALIFORNIA, N.A.,	  	 
	 	  	            individually and as Agent	  	 
					
	 	  	 	  	By:	 	 /s/ Henry Montgomery

	  	 
	 	  	 	  	 	 	Henry G. Montgomery	  	 
	 	  	 	  	Title:	 	Vice President	  	 
				
	 	  	 	  	Notice Address:	  	Pro Rata Share of
	 	  	 	  	 	 	East Bay Commercial Banking Group	  	Commitment: $48,000,000
	 	  	 	  	 	 	Two Walnut Creek Center	  	Pro Rata Share: 25.26315789%
	 	  	 	  	 	 	200 Pringle Avenue, Suite 260	  	 
	 	  	 	  	 	 	Walnut Creek, CA 94596-3570	  	 
	 	  	 	  	 	 	Attention: Mr. Buddy Montgomery	  	 
	 	  	 	  	 	 	Fax No.: (925) 947-2424	  	 
			
	 	  	U.S. BANK NATIONAL ASSOCIATION	  	 
					
	 	  	 	  	By:	 	 /s/ Scott Smith

	  	 
	 	  	 	  	Name:	 	Scott T. Smith	  	 
	 	  	 	  	Title:	 	Vice President	  	 
			
	 	  	Notice Address:	  	Pro Rata Share of
	 	  	 	  	 	 	1331 N. California Boulevard, Suite 350	  	Commitment: $34,000,000
	 	  	 	  	 	 	Walnut Creek, CA 94596	  	Pro Rata Share: 17.89473684%
	 	  	 	  	 	 	Attention: Scott T. Smith, V.P.	  	 
	 	  	 	  	 	 	Fax No.: (925) 945-6919	  	 

 [Signature Page To Amendment No. 1 To Third Amended And Restated Credit Agreement] 
  

											
	 	 	BANK OF AMERICA, N.A.	  	 
					
	 	 	 	 	By:	 	 /s/ Ronald Druby

	  	 
	 	 	 	 	Name:	 	Ronald J. Druby	  	 
	 	 	 	 	Title:	 	Senior Vice President	  	 
				
	 	 	 	 	Notice Address:	  	Pro Rata Share of
	 	 	 	 	 	 	 	 	315 Montgomery Street, 13th Floor	  	Commitment: $40,000,000
	 	 	 	 	 	 	 	 	San Francisco, CA 94104	  	Pro Rata Share: 21.05263158%
	 	 	 	 	 	 	 	 	Attention: Ronald Drobny, Senior V.P.	  	 
	 	 	 	 	 	 	 	 	Fax No.: (415) 622-1878	  	 
			
	 	 	COMERICA BANK	  	 
					
	 	 	 	 	By:	 	 /s/ Michael G. Barker

	  	 
	 	 	 	 	Name:	 	Michael G. Barker	  	 
	 	 	 	 	Title:	 	Vice President	  	 
				
	 	 	 	 	Notice Address:	  	Pro Rata Share of
	 	 	 	 	 	 	 	 	1331 N. California Boulevard, Suite 400	  	Commitment: $34,000,000
	 	 	 	 	 	 	 	 	Walnut Creek, CA 94596	  	Pro Rata Share: 17.89473684%
	 	 	 	 	 	 	 	 	Attention: Mark Hillhouse, V.P.	  	 
	 	 	 	 	 	 	 	 	Fax No.: (925) 941-1999	  	 
			
	 	 	WELLS FARGO BANK, N.A.	  	 
					
	 	 	 	 	By:	 	 /s/ Jane Rawles

	  	 
	 	 	 	 	Name:	 	Jane E. Rawles	  	 
	 	 	 	 	Title:	 	Vice President	  	 
				
	 	 	 	 	Notice Address:	  	Pro Rata Share of
	 	 	 	 	 	 	 	 	1200 Concord Avenue	  	Commitment: $34,000,000
	 	 	 	 	 	 	 	 	Concord, CA 94520	  	Pro Rata Share: 17.89473684%
	 	 	 	 	 	 	 	 	Attention: Martha L. Woods, V.P.	  	 
	 	 	 	 	 	 	 	 	Fax No.: (925) 682-7347	  	 

 EXHIBIT “A” 
 TO 
 AMENDMENT NO. 1 TO THIRD AMENDED AND 
 RESTATED CREDIT AGREEMENT 
  
 RESTATED FORM OF 
 COMPLIANCE CERTIFICATE 
  
 This Compliance Certificate is furnished pursuant to Section 7.3(d) of that certain Third Amended and Restated Credit
Agreement dated as of May 7, 2004, among the Borrower, certain Banks parties thereto and Union Bank of California, N.A., as Agent for the Banks, as from time to time modified, supplemented or amended (the “Agreement”). Unless otherwise
defined, all capitalized terms used in this Compliance Certificate have the respective meanings ascribed to them in the Agreement. 
  
 Borrower hereby represents and warrants as follows: 
  
 1. I am familiar with the Agreement and the business and operations of Borrower. 
  
 2. Except as otherwise specifically indicated, the information contained in this Certificate is true and accurate on and as
of                     ,          (the “Certification Date”). 
  
 3. As of the Certification Date and at all times during the quarter ending on
the Certification Date, Borrower has performed all obligations to be performed by it under (a) the Agreement, (b) any instrument or agreement to which Borrower is a party or under which Borrower is obligated, and (c) any judgment, decree, or order
of any court or governmental authority binding on Borrower. No Default or Event of Default has occurred, whether or not the same was cured, during such quarter. 
  

4. As of the Certification Date, the information set forth below is true, accurate and complete: 
  

						
	 (a)
	  	Section 7.11(a): Tangible Net Worth	  	 	 
			
	 	  	Tangible Net Worth	  	$	 
	 	  	 	  	
	

	 	  	Minimum Tangible Net Worth calculation:	  	 	 
			
	 	  	Base amount	  	$	127,500,000
	 	  	 	  	
	

	 	  	Plus: Fifty percent of Net Income (without reduction for Net Loss) after December 31, 2003	  	$	 
	 	  	 	  	
	

	 	  	Plus: 90% of the gross proceeds from stock issuance (excluding the first $2,000,000 of proceeds from the exercise of stock options after December 31, 2003)	  	$	 
	 	  	 	  	
	

	 	  	 Minimum Tangible Net Worth Total
	  	$	 
	 	  	 	  	
	

	 (b)
	  	Section 7.11(b): Funded Debt to EBITDA	  	 	 
	 	  	 This calculation is also used for Determination of Applicable Margin (Section 2.3.2) and Commitment Fee Percentage (Section 3.7)
	  	 	 
			
	 	  	Funded Debt (A)	  	$	 
	 	  	 	  	
	

						
	 	  	EBITDA (B)	  	$	                    
	 	  	 	  	
	

	 	  	            Ratio of A to B	  	 	 
	 	  	 	  	
	

	 	  	            Maximum permitted: 2:25 to 1:00	  	 	 
			
	 (c)
	  	Section 7.11(c): Fixed Charge Coverage Ratio	  	 	 
			
	 	  	1. EBITDA (A)	  	$	 
	 	  	 	  	
	

	 	  	2. Interest expense for the 4 fiscal quarter periods immediately ending on the date hereof	  	$	 
	 	  	 	  	
	

	 	  	3. Borrower’s current portion of long term debt (as determined in accordance with GAAP)	  	$	 
	 	  	 	  	
	

	 	  	4. Cash dividends paid for the 4 fiscal quarter periods immediately ending on the date hereof	  	$	 
	 	  	 	  	
	

	 	  	5. Cash taxes paid for the 4 fiscal quarter periods immediately ending on the date hereof	  	$	 
	 	  	 	  	
	

	 	  	6. Sum of 2 through 5 (B)	  	$	 
	 	  	 	  	
	

			
	 	  	            Ratio of A to B	  	 	 
	 	  	 	  	
	

	 	  	            Minimum required from Effective Date through December 31, 2004: 1.50 to 1	  	 	 
			
	 	  	            Minimum required from January 1, 2005 to December 31, 2005: 1.75 to 1	  	 	 
			
	 	  	            Minimum required from and after January 1, 2006: 2.00 to 1	  	 	 

  

					
	 	 	Executed this          day of
                    ,             .
			
	 	 	 By:
	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

 EXHIBIT “B” 
 TO 
 AMENDMENT NO. 1 TO THIRD AMENDED AND 
 RESTATED CREDIT AGREEMENT 
  
 [Form of Replacement Revolving Note] 
  
 REVOLVING NOTE 
  

			
	 NOT TO EXCEED
	 	 
	 $                                .00
	 	San Francisco, California
	 	 	July     , 2005

  
 FOR VALUE RECEIVED,
the undersigned, McGrath Rentcorp, a California corporation (“Borrower”), promises to pay to
                                       
          (the “Bank”, or order, on or before the Revolving Loan Termination Date, or as otherwise provided in the Third Amended and Restated Credit Agreement dated as of May 7, 2004
among the Borrower, certain banks parties thereto, and Union Bank of California, N.A., as Agent for the Banks, as from time to time modified, supplemented or amended, (the “Agreement), the lesser of (i) the principal sum of
                                  DOLLARS
($    ,            ,000.00) or (ii) the aggregate unpaid principal amount of all Revolving Loans made by the Bank to Borrower pursuant to the
Agreement. Terms defined in the Agreement have the same meanings herein. 
  
 Borrower further promises to pay to the Bank, or order, interest on the unpaid principal amount hereunder from time to time outstanding from the date hereof until such amount shall have become due and payable (whether
at the stated maturity, by acceleration, or otherwise) at the rate(s) of interest and at the times provided in the Agreement. Borrower further promises to pay interest on any overdue payment of principal and (to the extent permitted by law) interest
as set forth in the Agreement. 
  
 Bank is authorized, but not
required, to record the date, amount, type, interest rate and Eurodollar Period (if applicable) of each Loan made by the Bank to Borrower, and each payment made on account thereof, on its books and records or on the schedule annexed hereto, and, in
the absence of manifest error, such recordation shall constitute prima facie evidence of the accuracy of the information so recorded; provided, however, that failure by the Bank to make any such recordation shall not affect any of the Obligations of
Borrower. 
  
 All payments of principal, interest, fees, or other
amounts due from Borrower hereunder, shall be in Dollars and in immediately available funds, without setoff, counterclaim or other deduction of any nature, and shall be made to Agent, at its address set forth on the signature pages of the Agreement,
prior to 10:00 a.m., San Francisco time, on the last date permitted therefor. 
  
 Except as otherwise provided in the Agreement, if any payment of principal or interest hereunder shall become due on a day which is not a Business Day, such payment shall be made on the next following Business Day and
such extension of time shall be included in computing interest in connection with such payment. 
  
 This Revolving Note is one of the “Revolving Notes” referred to in, evidences obligations of Borrower under, and is entitled to the benefits of,
the Agreement, which, among other things, provides for the acceleration of the maturity hereof upon the occurrence of certain circumstances and upon certain terms and conditions. This Revolving Note supersedes and replaces that certain Revolving
Note dated May 7, 2004, as amended from time to time, in the principal amount not to exceed                      Dollars
($                    ), executed by Borrower in favor of Bank (the “Previous Note”). As of the date of this Revolving Note, all
unpaid principal, interest and other amounts accrued and outstanding under the Previous Note shall for all purposes be and constitute unpaid amounts outstanding under and evidenced by this Revolving Note. 

 Borrower hereby expressly waives presentment, demand, notice of dishonor, protest, as such terms are
defined in Division 3 of the California Commercial Code, and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Revolving Note and the Agreement. 
  
 This Revolving Note shall be governed by, construed and enforced in
accordance with the laws of the State of California. 
  

			
	MCGRATH RENTCORP
		
	By:	 	  

	Name:	 	Thomas J. Sauer
	Title:	 	Vice President and Chief Financial Officer

 SCHEDULE OF LOANS 
  

This Revolving Note evidences Loans made, continued or converted under the Agreement to Borrower, on the dates, in the principal amounts, of the types,
bearing interest at the rates and having Eurodollar Periods (if applicable) set forth below, subject to the payments, prepayments, continuations and conversions of principal set forth below: 
  

															
	 Date Made,
Continued or
Converted

	 	 Principal
Amount
 of
 Loan

	 	 Type
 of
 Loan

	  	 Interest
 Rate

	  	 Duration
 of
 Eurodollar
 Period

	  	 Amount
 Paid
 Prepaid
Continued
 or
 Converted

	  	Unpaid
Principal
Amount

	  	Notation
Made By

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