Document:

THIRD AMENDMENT AND RATIFICATION OF CREDIT
AGREEMENT AND OTHER LOAN 

DOCUMENTS

 

THIS THIRD AMENDMENT AND
RATIFICATION OF CREDIT AGREEMENT AND OTHER LOAN DOCUMENTS (this “Agreement”) is entered into on February 8, 2018,
by ENVIROSTAR, INC., a Delaware corporation (the “Borrower”), STEINER-ATLANTIC CORP., a Florida corporation (“Steiner”),
DRYCLEAN USA LICENSE CORP., a Florida corporation (“Dryclean USA”), WESTERN STATE DESIGN, INC., a Delaware corporation
(“Western State”; Steiner, Dryclean USA and Western State, collectively, the “Original Guarantor”), MARTIN-RAY
LAUNDRY SYSTEMS, INC., a Delaware corporation (“Martin”), Tri-State Technical
Services, Inc., a Delaware corporation (“Tri-State”) and AAdvantage
Laundry Systems, Inc., a Delaware corporation (“AAdvantage”) (Original Guarantor, Martin, Tri-State, and AAdvantage,
individually and/or collectively, the “Guarantor”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Bank”).

 

RECITALS:

 

A.       Borrower
requested and Bank agreed to make a term loan in the amount of $5,000,000.00 (the “Term Loan”) to Borrower, as evidenced
by that certain Term Note dated as of October 7, 2016 from Borrower in favor of Bank in the original principal amount of $5,000,000.00
(the “Original Term Note”), which Original Term Note is secured by that certain Security Agreement: Business Assets
dated as of October 7, 2016 from Borrower and Original Guarantor in favor of Bank (as the same may be amended or modified from
time to time, the “Security Agreement”).

 

B.       Borrower
also requested and Bank agreed to issue a line of credit in the amount of $15,000,000.00 (the “Line of Credit”) to
Borrower, as evidenced by that certain Line of Credit Note dated as of October 7, 2016 from Borrower in favor of Bank in the original
principal amount of $15,000,000.00 (the “Original Line of Credit Note”), which Original Line of Credit Note is secured
by the Security Agreement. The Term Loan and the Line of Credit are collectively referred to as the “Loan.”

 

C.       As
additional security for the Original Term Note and the Original Line of Credit Note, each Original Guarantor executed and delivered
to Bank those certain Continuing Guaranty agreements dated as of October 7, 2016 (as each of the same may be amended or modified
from time to time, individually and/or collectively, the “Original Guaranty”).

 

D.       In
connection with the execution of the Original Term Note and the Original Line of Credit Note and the Security Agreement, Borrower
and Bank entered into that certain Credit Agreement dated as of October 7, 2016 (as the same may be amended or modified from time
to time, the “Credit Agreement”).

 

E.       Thereafter,
Borrower acquired Martin and in connection therewith, Borrower, Original Guarantor and Martin entered into that certain Amendment
and Ratification of Credit Agreement and Other Loan Documents dated as of June 23, 2017 (the “First Amendment”), which
First Amendment which added Martin as a co-guarantor under the Loan. Contemporaneously therewith, Martin executed and delivered
to Bank (i) that certain Continuing Guaranty dated as of June 23, 2017 in favor of Bank (as the same may be amended or modified
from time to time, the “Martin Guaranty”), and (ii) that certain Security Agreement: Business Assets dated as of June
23, 2017 in favor of Bank, which secures Martin’s obligations under the Martin Guaranty and the other Loan Documents (as
defined below) (as the same may be amended or modified from time to time, the “Martin Security Agreement”).

 

F.       In
connection with the acquisition of Tri-State by the Borrower, the Borrower requested and Bank agreed to increase the Term Loan
to be $7,172,399.00, as evidenced by that certain Amended and Restated Term Note dated as of October 30, 2017 from Borrower in
favor of Bank in the original principal amount of $7,172,399.00 (the “Term Note”), which Term Note amended, restated,
increased and superseded the Original Term Note in its entirety, and is secured by the Security Agreement. In connection therewith,
Borrower, Original Guarantor, Martin and Tri-State entered into that certain Second Amendment and Ratification of Credit Agreement
and Other Loan Documents dated as of October 30, 

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2017 (the “Second Amendment”), which added Tri-State as a co-guarantor
under the Loan and otherwise modified the Loan. Accordingly, Tri-State executed and delivered to Bank (i) that certain Continuing
Guaranty dated as of October 30, 2017 in favor of Bank (as the same may be amended or modified from time to time, the “Tri-State
Guaranty”), and (ii) that certain Security Agreement: Business Assets dated as of October 30, 2017 in favor of Bank, which
secures Tri-State’s obligations under the Tri-State Guaranty and the other Loan Documents (as defined below) (as the same
may be amended or modified from time to time, the “Tri-State Security Agreement”).

 

G.       In
connection with the acquisition of AAdvantage by the Borrower, the Borrower has now requested and Bank has agreed to increase the
Line of Credit Loan to now be $20,000,000.00, as evidenced by that certain Amended and Restated Promissory Note dated as of even
date herewith from Borrower in favor of Bank in the original principal amount of $20,000,000.00 (the “Line of Credit Note”),
which Line of Credit Note amends, restates, increases and supersedes the Original Line of Credit Note in its entirety, and is secured
by the Security Agreement. In connection therewith, Borrower, Original Guarantor, Martin, Tri-State and AAdvantage are also entering
into this Agreement, which adds AAdvantage as a co-guarantor under the Loan and otherwise modifies the Loan. Accordingly, AAdvantage
is executing and delivering to Bank (i) that certain Continuing Guaranty dated as of even date herewith in favor of Bank (as the
same may be amended or modified from time to time, the “AAdvantage Guaranty”), and (ii) that certain Security Agreement:
Business Assets dated of even date herewith in favor of Bank, which secures AAdvantage’s obligations under the AAdvantage
Guaranty and the other Loan Documents (as defined below) (as the same may be amended or modified from time to time, the “AAdvantage
Security Agreement”).

 

H.       The
Term Note, the Line of Credit Note, the Credit Agreement, as modified by the First Amendment, the Second Amendment and this Agreement,
the Security Agreement, the Original Guaranty, the Tri-State Guaranty, the Martin Guaranty, the AAdvantage Guaranty the Martin
Security Agreement, the Tri-State Security Agreement, the AAdvantage Security Agreement and all other documents executed by Borrower
and Guarantor in connection with the Loan are hereinafter referred to collectively as the “Loan Documents.” Capitalized
terms not otherwise defined herein shall have the meaning ascribed thereto in the Loan Documents.

 

I.        Bank
is willing to modify the Loan, increase the Line of Credit Loan and add AAdvantage as a guarantor under the Loan, provided that
Borrower and Guarantor give Bank the representations, assurances and other agreements hereinafter set forth.

 

W I T N E S S E T H :

 

In consideration of Bank's
continued extension of credit and the agreements contained herein, the parties agree as follows:

 

1.       The
Recitals contained hereinabove are true and correct and are made a part hereof.

 

2.       AAdvantage
is hereby added as a guarantor under the Loan. All references in the Credit Agreement and other Loan Documents to the “Guarantor”
shall now include AAdvantage.

3.       All
references in the Credit Agreement and the other Loan Documents to the “Line of Credit Note” shall now mean the “Line
of Credit Note” defined in Recital “G” above.

4.       All
references to the “Loan Documents” in the Credit Agreement and other Loan Documents shall now include the AAdvantage
Guaranty and the AAdvantage Security Agreement.

5.       Section
4.3 (f) of the Credit Agreement is hereby deleted and the following inserted in lieu thereof:

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f)       Concurrent
with the delivery of the financial statements required herein, Borrower shall deliver a covenant compliance certificate in the
form attached as Exhibit A hereto, which certificate shall be certified as true and correct by person with appropriate Borrower
authority (a “Compliance Certificate”). To the extent required by Bank, each Compliance Certificate shall be accompanied
by historical and proforma EBITDA and other supporting information as Bank may require for any such Guarantor acquired during the
prior twelve (12) month period.

6.       Section
4.9 (a) is hereby deleted and the following inserted in lieu thereof:

(a)       FIXED
CHARGE COVERAGE RATIO (FCCR). Borrower, on a combined basis with each Guarantor, shall maintain a minimum Fixed Charge Coverage
Ratio of not less than 1.25 to 1.00. For purposes of this Agreement, “Fixed Charge Coverage Ratio” shall be defined
as: (I) the sum of net profit after tax, depreciation, amortization, interest expense (including any interest permitted to be paid
on shareholder debt) less net distributions less unfinanced capital expenditures, plus (i) any stock compensation expense provided
there is no present or future cash impact from such stock compensation expense and (ii) one-time fees, costs and expenses related
to the acquisition of any Guarantor, as well as commercially reasonable, one-time fees, costs and expenses related to future acquisitions,
approved by Bank, in accordance with the terms of this Agreement and the other Loan Documents, divided by (II) the sum of interest
expense, the current portion of long term debt (including any principal payments permitted to be paid on shareholder debt), and
capital lease payments.

 

This financial covenant shall be tested
quarterly commencing with the quarter ending December 31, 2017 and calculated on a rolling, four quarters basis; provided, however,
that the calculations for the testing periods for the first four (4) quarterly testing periods of any entity which becomes a Guarantor
through an acquisition by Borrower, shall be calculated by combining the financial statements of Borrower and such Guarantor (with
add-backs to such Guarantor’s financial statements to be adjusted by Borrower to give effect to Bank approved transaction
expenses incurred by such Guarantor in connection with its acquisition by Borrower), for the applicable rolling four quarter period,
and shall include current portion of long term debt in an amount equal to current portion of long term debt as shown on Borrower’s
quarterly financial statement.

 

7.       The
first paragraph of Section 4.9 (b) is hereby deleted and the following inserted in lieu thereof:

(b)       ASSET
COVERAGE RATIO. Borrower, on a combined basis with each Guarantor, shall maintain a minimum Asset Coverage Ratio of not less than
1.00 to 1.00, which shall be tested quarterly; provided, however, if utilization under the Line of Credit exceeds 65% of the maximum
commitment available under the Line of Credit for any quarter, the Asset Coverage Ratio will be tested monthly thereafter; provided,
however, if Borrower’s utilization under the Line of Credit is less than 65% of the maximum commitment available under the
Line of Credit for three (3) consecutive fiscal months during such monthly testing, the Asset Coverage Ratio will be tested quarterly
thereafter so long as Borrower remains in compliance with this utilization requirement as set forth in this Section 4.9(b). For
purposes of this Agreement, “Asset Coverage Ratio” shall be defined as: the ratio of (a) the sum of (i) ninety percent
(90%) of Eligible Government Account Receivables, plus (ii) eighty-five percent (85%) of Eligible Commercial Accounts Receivables,
less the Credit Memo Refresh Lag Reserve, plus (iii) the sum of (A) up to fifty percent (50%) of Eligible Equipment Inventory less
the Slow Moving Equipment Inventory Reserve, plus (B) up to thirty percent (30%) of Eligible Parts Inventory less the Slow Moving
Parts Inventory Reserve, divided by (C) the outstanding principal balance of 

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the Line of Credit. The foregoing advance rates may
be adjusted by Bank from time to time based on the results of any Field Exam or inventory appraisal(s) required herein or conducted
by Bank, provided further, that the Credit Memo Lag Reserve may be reduced or eliminated from the calculation of the Asset Coverage
Ratio if Bank receives evidence satisfactory to Bank in Bank’s reasonable discretion that such reserve is not required. For
purposes of calculating the Asset Coverage Ratio upon the acquisition of any Guarantor, such ratio shall be determined by a Compliance
Certificate provided by Borrower prior to the closing of the acquisition of such Guarantor so long as the closing of the amendment
to the Line of Credit adding such Guarantor occurs within three (3) business days from the closing of such acquisition.

 

8.       Section
4.9 (c) is hereby deleted and the following inserted in lieu thereof:

 

(c)       SENIOR
LEVERAGE RATIO. Borrower shall maintain a Senior Leverage Ratio of not more than 2.50 to 1.00. For purposes of this Agreement,
“Senior Leverage Ratio” shall be defined as: (I) Total Funded Senior Secured Debt divided by (II) earnings before interest,
taxes, depreciation and amortization (EBITDA). The calculation of EBITDA shall exclude certain non-cash items, limited to stock
compensation expense (provided there is no present or future cash impact from such stock compensation expense), gain/loss from
the sale of fixed assets and temporary non-cash items relating to swap obligations. The calculation of EBITDA shall also exclude
one-time fees, costs and expenses related to the acquisition of any Guarantor, as well as commercially reasonable, one-time fees,
costs and expenses related to future acquisitions, approved by Bank, in accordance with the terms of this Agreement and the other
Loan Documents. Funded Senior Secured Debt shall be defined as the outstanding principal balance of the Term Loan and the Line
of Credit.

This financial covenant shall be
tested quarterly commencing with the quarter ending December 31, 2017 and calculated on a rolling, four quarters basis; provided,
however, that the calculations for the testing periods for the first four (4) quarterly testing periods of any entity which becomes
a Guarantor through an acquisition by Borrower, shall be calculated by combining the financial statements of Borrower and such
Guarantor (with add-backs to such Guarantor’s financial statements to be adjusted by Borrower to give effect to Bank approved
transaction expenses incurred by such Guarantor in connection with its acquisition by Borrower), for the applicable rolling four
quarter period and shall include Total Funded Senior Secured Debt per the Borrower’s quarterly financial statement.

9.       Section
4.9 (d) is hereby deleted and the following inserted in lieu thereof:

(d)       TOTAL
LEVERAGE RATIO. Borrower shall maintain a Total Leverage Ratio of not more than 3.50 to 1.00. For purposes of this Agreement, “Total
Leverage Ratio” shall be defined as: (I) Total Funded Senior Secured Debt plus Subordinated Shareholder Debt divided by (II)
earnings before interest, taxes, depreciation and amortization (EBITDA). Total Funded Senior Secured Debt plus Subordinated Debt
shall be defined as the outstanding principal balance of all the Term Loan and the Line of Credit plus the outstanding principal
balance of any Subordinated Debt. The calculation of EBITDA shall not include non-cash expenses limited to stock compensation expense
(provided there is no present or future cash impact from such stock compensation expense), gain/loss from the sale of fixed assets
and temporary non-cash items relating to swap obligations. The calculation of EBITDA shall also exclude one-time fees, costs and
expenses related to the acquisition of any Guarantor, as well as commercially reasonable, one-time fees, costs and expenses related
to future acquisitions, approved by Bank, in accordance with 

    Page 4

     

    

the terms of this Agreement and the other Loan Documents. All Shareholder
Debt must be fully subordinated to all obligations under the Term Loan and the Line of Credit.

This financial covenant shall be
tested quarterly commencing with the quarter ending December 31, 2017 and calculated on a rolling, four quarters basis; provided,
however, that the calculations for the testing periods for the first four (4) quarterly testing periods of any entity which becomes
a Guarantor through an acquisition of Borrower, shall be calculated by combining the financial statements of Borrower and such
Guarantor (with add-backs to such Guarantor’s financial statements to be adjusted by Borrower to give effect to Bank approved
transaction expenses incurred by such Guarantor in connection with its acquisition by Borrower), for the applicable rolling four
quarter period and shall include Total Funded Senior Secured Debt and Total Subordinated Debt per the Borrower’s quarterly
financial statement.

10.       Section
4.9 (f) is hereby deleted and the following inserted in lieu thereof:

(f)       DISTRIBUTIONS.
Beginning with distributions relating to fiscal year 2017 net income, distributions shall be limited to a maximum of 35% of Net
Income and, in any event, prohibited during the continuance of an Event of Default. The calculation of Net Income shall exclude
one-time fees, costs and expenses related to the acquisition of any such Guarantor and shall exclude commercially reasonable one-time
fees, costs and expenses approved by Bank, related to other acquisitions approved by Bank in accordance with the terms of this
Agreement and the other Loan Documents. All distributions made on account of the 2016 calendar year attributable to 2016 net income
shall not exceed those attributable to 2015 fiscal year net income.

11.       Borrower
acknowledges, represents and confirms to Bank that: (i) the Loan Documents are valid and binding upon Borrower and are enforceable
in accordance with the terms thereof; (ii) all of the terms, covenants, conditions, representations, warranties and agreements
contained in the Loan Documents are hereby ratified and confirmed in all respects; (iii) there are no defenses, set-offs, counterclaims,
cross-actions or equities in favor of Borrower to or against the enforcement of the Note or any other Loan Document; (iv) no payments
of interest or any other charges have been made to Bank or paid by Borrower in connection with any indebtedness evidenced by the
Note which would result in the computation or earning of interest in excess of the maximum rate of interest which is legally permitted
under the laws of the State of Florida or federal law, in effect from time to time, whichever is the highest; (v) Bank is under
no obligation to further amend or modify the Loan Documents; and (vi) no default now exists under the Loan Documents.

12.       Guarantor
represents and warrants unto Bank that: (i) the Guaranty and all other documents executed by Guarantor in connection with the
Loan are valid and binding obligations of Guarantor, enforceable in accordance with their terms; (ii) the Loan Documents, as modified
herein, shall continue to be guaranteed by Guarantor pursuant to the terms of each Guaranty; (iii) all of the terms, covenants,
conditions, representations, warranties and agreements contained in the Guaranty are hereby ratified and confirmed in all respects;
and (iv) no oral representations, statements, or inducements have been made by Bank with respect to the Guaranty or any other
Loan Document.

13.       Except
as amended by this Agreement and the documents executed in connection herewith, no term or condition of the Loan or the other Loan
Documents shall be modified and the same shall remain in full force and effect; provided, however, if any provision of this Agreement
is in conflict with, or inconsistent with, any provision in the Loan Documents, then the provision contained in this Agreement
shall govern and control.

 

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14.       This
Agreement shall be binding upon, and shall inure to the benefit of, the respective successors and assigns of the parties hereto.

 

15.       This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original. Said counterparts shall constitute
but one and the same instrument and shall be binding upon each of the undersigned individually as fully and completely as if all
had signed but one instrument so that the joint and several liability of each of the undersigned shall be unaffected by the failure
of any of the undersigned to execute any or all of said counterparts.

16.       AS
A MATERIAL INDUCEMENT FOR BANK TO EXECUTE THIS AGREEMENT, BORROWER AND GUARANTOR DO HEREBY RELEASE, WAIVE, DISCHARGE, COVENANT
NOT TO SUE, ACQUIT, SATISFY AND FOREVER DISCHARGE BANK ITS OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS AND ITS AFFILIATES AND ASSIGNS
FROM ANY AND ALL LIABILITY, CLAIMS, COUNTERCLAIMS, DEFENSES, ACTIONS, CAUSES OF ACTION, SUITS, CONTROVERSIES, AGREEMENTS, PROMISES
AND DEMANDS WHATSOEVER IN LAW OR IN EQUITY WHICH BORROWER OR GUARANTOR EVER HAD, NOW HAS, OR WHICH ANY PERSONAL REPRESENTATIVE,
SUCCESSOR, HEIR OR ASSIGN OF BORROWER OR GUARANTOR HEREAFTER CAN, SHALL OR MAY HAVE AGAINST BANK, ITS OFFICERS, DIRECTORS, EMPLOYEES,
AND AGENTS, AND ITS AFFILIATES AND ASSIGNS, FOR, UPON OR BY REASON OF THE LOAN THROUGH THE DATE THAT THIS AGREEMENT IS EXECUTED.
BORROWER AND GUARANTOR FURTHER EXPRESSLY AGREE THAT THE FOREGOING RELEASE AND WAIVER AGREEMENT IS INTENDED TO BE AS BROAD AND INCLUSIVE
AS PERMITTED BY THE LAWS OF THE STATE OF FLORIDA.

17.       ARBITRATION.

(a)       Arbitration.
The parties hereto agree, upon demand by any party, to submit to binding arbitration all claims, disputes and controversies between
or among them (and their respective employees, officers, directors, attorneys, and other agents), whether in tort, contract or
otherwise in any way arising out of or relating to (i) any credit subject hereto, or any of the Loan Documents, and their negotiation,
execution, collateralization, administration, repayment, modification, extension, substitution, formation, inducement, enforcement,
default or termination; or (ii) requests for additional credit.

 

(b)       Governing
Rules. Any arbitration proceeding will (i) proceed in a location in Broward County, Florida selected by the American Arbitration
Association (“AAA”); (ii) be governed by the Federal Arbitration Act (Title 9 of the United States Code), notwithstanding
any conflicting choice of law provision in any of the documents between the parties; and (iii) be conducted by the AAA, or such
other administrator as the parties shall mutually agree upon, in accordance with the AAA’s commercial dispute resolution
procedures, unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed interest, arbitration fees and costs
in which case the arbitration shall be conducted in accordance with the AAA’s optional procedures for large, complex commercial
disputes (the commercial dispute resolution procedures or the optional procedures for large, complex commercial disputes to be
referred to herein, as applicable, as the “Rules”). If there is any inconsistency between the terms hereof and the
Rules, the terms and procedures set forth herein shall control. Any party who fails or refuses to submit to arbitration following
a demand by any other party shall bear all costs and expenses incurred by such other party in compelling arbitration of any dispute.
Nothing contained herein shall be deemed to be a waiver by any party that is a bank of the protections afforded to it under 12
U.S.C. §91 or any similar applicable state law.

 

(c)       No
Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration requirement does not limit the right of any party
to (i) foreclose against real or personal property collateral; (ii) exercise self-help remedies relating to collateral or proceeds
of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive relief,
attachment or the appointment of a receiver, before during or after the pendency of any arbitration proceeding. This 

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exclusion
does not constitute a waiver of the right or obligation of any party to submit any dispute to arbitration or reference hereunder,
including those arising from the exercise of the actions detailed in sections (i), (ii) and (iii) of this paragraph.

 

(d)       Arbitrator
Qualifications and Powers. Any arbitration proceeding in which the amount in controversy is $5,000,000.00 or less will be decided
by a single arbitrator selected according to the Rules, and who shall not render an award of greater than $5,000,000.00. Any dispute
in which the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote of a panel of three arbitrators; provided
however, that all three arbitrators must actively participate in all hearings and deliberations. The arbitrator will be a neutral
attorney licensed in the State of Florida or a neutral retired judge of the state or federal judiciary of Florida, in either case
with a minimum of ten years experience in the substantive law applicable to the subject matter of the dispute to be arbitrated.
The arbitrator will determine whether or not an issue is arbitratable and will give effect to the statutes of limitation in determining
any claim. In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the arbitrator's discretion)
any pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for summary adjudication.
The arbitrator shall resolve all disputes in accordance with the substantive law of Florida and may grant any remedy or relief
that a court of such state could order or grant within the scope hereof and such ancillary relief as is necessary to make effective
any award. The arbitrator shall also have the power to award recovery of all costs and fees, to impose sanctions and to take such
other action as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure,
the Florida Rules of Civil Procedure or other applicable law. Judgment upon the award rendered by the arbitrator may be entered
in any court having jurisdiction. The institution and maintenance of an action for judicial relief or pursuit of a provisional
or ancillary remedy shall not constitute a waiver of the right of any party, including the plaintiff, to submit the controversy
or claim to arbitration if any other party contests such action for judicial relief.

 

(e)       Discovery.
In any arbitration proceeding, discovery will be permitted in accordance with the Rules. All discovery shall be expressly limited
to matters directly relevant to the dispute being arbitrated and must be completed no later than 20 days before the hearing date.
Any requests for an extension of the discovery periods, or any discovery disputes, will be subject to final determination by the
arbitrator upon a showing that the request for discovery is essential for the party's presentation and that no alternative means
for obtaining information is available.

 

(f)       Class
Proceedings and Consolidations. No party hereto shall be entitled to join or consolidate disputes by or against others in any
arbitration, except parties who have executed any Loan Document, or to include in any arbitration any dispute as a representative
or member of a class, or to act in any arbitration in the interest of the general public or in a private attorney general capacity.

 

(g)       Payment
Of Arbitration Costs And Fees. The arbitrator shall award all costs and expenses of the arbitration proceeding.

 

(h)       Miscellaneous.
To the maximum extent practicable, the AAA, the arbitrators and the parties shall take all action required to conclude any arbitration
proceeding within 180 days of the filing of the dispute with the AAA. No arbitrator or other party to an arbitration proceeding
may disclose the existence, content or results thereof, except for disclosures of information by a party required in the ordinary
course of its business or by applicable law or regulation. If more than one agreement for arbitration by or between the parties
potentially applies to a dispute, the arbitration provision most directly related to the Loan Documents or the subject matter of
the dispute shall control. This arbitration provision shall survive termination, amendment or expiration of any of the Loan Documents
or any relationship between the parties.

 

18.       Waiver
of Bankruptcy Stay. BORROWER AND GUARANTOR HEREBY AGREE, IN CONSIDERATION OF THE RECITALS AND MUTUAL COVENANTS CONTAINED
HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE 

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HEREBY ACKNOWLEDGED, THAT IN THE
EVENT THAT BORROWER OR GUARANTOR SHALL FILE WITH ANY BANKRUPTCY COURT OF COMPETENT JURISDICTION OR BE THE SUBJECT OF ANY PETITION
UNDER TITLE 11 OF THE UNITED STATES CODE THE AUTOMATIC STAY IMPOSED BY SECTION 362 OF TITLE 11 OF THE UNITED STATES CODE IS WAIVED,
AND SUCH WAIVER CONSTITUTES “CAUSE” PURSUANT TO 11 U.S.C. SECTION 362(d)(1) FOR THE IMMEDIATE LIFTING OF THE AUTOMATIC
STAY IN FAVOR OF BANK, AND BORROWER AND GUARANTOR HEREBY KNOWINGLY AND IRREVOCABLY WAIVE ALL DEFENSES AND OBJECTIONS TO SUCH LIFTING
OF THE AUTOMATIC STAY.

 

[CONTINUES ON THE FOLLOWING PAGE]

 

 

    Page 8

     

    

IN WITNESS WHEREOF, the undersigned
have signed and sealed this Agreement on February 8, 2018.

 

	 	BORROWER:
	 	 	 
	 	ENVIROSTAR, INC., a Delaware corporation
	 	 	 
	 	By: 	/s/ Henry M. Nahmad
	   	 	Henry M. Nahmad, President
	 	 	 
	 	GUARANTOR:
	 	 	 
	 	STEINER-ATLANTIC CORP., a Florida corporation
	 	 	 
	 	 	 
	 	By:	/s/ Michael Steiner
	  	 	Michael Steiner, President
	 	 	 
	 	DRYCLEAN USA LICENSE CORP., a Florida

 corporation
	 	 	 
	 	 	 
	 	By:	/s/ Michael Steiner
	     	 	Michael Seiner, President
	 	 	 
	 	WESTERN STATE DESIGN, INC., a Delaware 

corporation
	 	 	 
	 	 	 
	 	By:	/s/ Henry M. Nahmad
	     	 	Henry M. Nahmad, President
	 	 	 
	 	MARTIN-RAY LAUNDRY SYSTEMS, INC., a 

Delaware corporation
	 	 	 
	 	 	 
	 	By:	/s/ Henry M. Nahmad
	      	 	Henry M. Nahmad, President
	 	 	 
	 	Tri-State Technical Services, Inc., a 

Delaware corporation
	 	 	 
	 	 	 
	 	By:	/s/ Henry M. Nahmad
	     	 	Henry M. Nahmad, President
	 	 	 
	 	AADVANTAGE LAUNDRY SYSTEMS, Inc., a 

Delaware corporation
	 	 	 
	 	 	 
	 	By:	/s/ Henry M. Nahmad
	   	 	Henry M. Nahmad, President

 

 

    Page 9

     

    

 

	 	BANK:
	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 	 
	 	By:	/s/Matthew Rapoport
	 	Name: Matthew Rapoport
	 	Title: Vice President

 

 

 

 

    Page 10AMENDED
AND RESTATED PROMISSORY NOTE

 

 

	$20,000,000.00	February 8, 2018

 

 

FOR
VALUE RECEIVED, the undersigned EnviroStar, Inc., a Delaware corporation ("Borrower") promises to pay to the order of
WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank") at its office at 333 SE 2nd Avenue, 22nd Floor, Miami, Florida 33131,
Attention: Matthew Rapoport, or at such other place as the holder hereof may designate, in lawful money of the United States of
America and in immediately available funds, the principal sum of TWENTY MILLION DOLLARS ($20,000,000.00) or so much thereof as
may be advanced and be outstanding pursuant to the terms of the Credit Agreement, as defined herein, with interest thereon, to
be computed on each advance from the date of its disbursement as set forth herein.

 

DEFINITIONS:

 

As used herein, the following
terms shall have the meanings set forth after each, and any other term defined in this Note shall have the meaning set forth at
the place defined:

 

(a)       "Daily
One Month LIBOR" means, for any day, the rate of interest equal to LIBOR then in effect for delivery for a one (1) month period.

 

(b)       "LIBOR"
means the rate of interest per annum determined by Bank based on the rate for United States dollar deposits for delivery of funds
for one (1) month as published by the ICE Benchmark Administration Limited, a United Kingdom company, at approximately 11:00 a.m.,
London time, or, for any day not a London Business Day, the immediately preceding London Business Day (or if not so published,
then as determined by Bank from another recognized source or interbank quotation); provided, however, that if LIBOR determined
as provided above would be less than zero percent (0.0%), then LIBOR shall be deemed to be zero percent (0.0%).

 

(c)       "London
Business Day" means any day that is a day for trading by and between banks in dollar deposits in the London interbank market.

 

INTEREST:

 

(a)       Interest.
The outstanding principal balance of this Note shall bear interest (computed on the basis of a 360-day year, actual days elapsed)
at a fluctuating rate per annum determined by Bank to be two and twenty-five hundredths of one percent (2.25%) above Daily One
Month LIBOR in effect from time to time. Bank is hereby authorized to note the date and interest rate applicable to this Note and
any payments made thereon on Bank's books and records (either manually or by electronic entry) and/or on any schedule attached
to this Note, which notations shall be prima facie evidence of the accuracy of the information noted.

 

(b)       Taxes
and Regulatory Costs. Borrower shall pay to Bank immediately upon demand, in addition to any other amounts due or to become
due hereunder, any and all (i) withholdings, interest equalization taxes, stamp taxes or other taxes (except income and franchise
taxes) imposed by any domestic or foreign governmental authority and related in any manner to LIBOR, and (ii) costs, expenses and
liabilities arising from or in connection with reserve percentages prescribed by the Board of Governors of the Federal Reserve
System (or 

    -1- 

     

    

any successor) for "Eurocurrency Liabilities" (as defined in Regulation D of the Federal Reserve Board, as
amended), assessment rates imposed by the Federal Deposit Insurance Corporation, or similar requirements or costs imposed by any
domestic or foreign governmental authority or resulting from compliance by Bank with any request or directive (whether or not having
the force of law) from any central bank or other governmental authority and related in any manner to LIBOR. In determining which
of the foregoing are attributable to any LIBOR option available to Borrower hereunder, any reasonable allocation made by Bank among
its operations shall be conclusive and binding upon Borrower.

 

(c)       Default
Interest. From and after the maturity date of this Note, or such earlier date as all principal owing hereunder becomes due
and payable by acceleration or otherwise, or upon the occurrence and during the continuance of an Event of Default, then at the
option of Bank, in its sole and absolute discretion, the outstanding principal balance of this Note shall bear interest at an increased
rate per annum (computed on the basis of a 360-day year, actual days elapsed) equal to four percent (4%) above the rate of interest
from time to time applicable to this Note.

 

BORROWING AND REPAYMENT:

 

(a)       Borrowing
and Repayment of Principal. Borrower may from time to time during the term of this Note borrow, partially or wholly repay its
outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions of this Note, that certain Credit
Agreement dated as of October 7, 2016, as amended by that certain Amendment and Ratification of Credit Agreement and Other Loan
Documents dated as of June 23, 2017, that certain Second Amendment and Ratification of Credit Agreement and Other Loan Documents
dated as of October 30, 2017, and that certain Third Amendment and Ratification of Credit Agreement and Other Loan Documents dated
of even date herewith between Borrower and Bank (as the same may be amended or modified from time to time, the “Credit Agreement”),
and of any document executed in connection with or governing this Note; provided however, that the total outstanding borrowings
under this Note shall not at any time exceed the principal amount stated above. The unpaid principal balance of this obligation
at any time shall be the total amounts advanced hereunder by the holder hereof less the amount of principal payments made hereon
by or for Borrower, which balance may be endorsed hereon from time to time by the holder. The outstanding principal balance of
this Note shall be due and payable in full on October 7, 2021 (the “Maturity Date”).

 

(b)       Payment
of Interest. Interest accrued on this Note shall be payable on the seventh (7th) day of each month, commencing on
March 7, 2018.

 

(c)       Advances.
Advances hereunder, to the total amount of the principal sum stated above, may be made by the holder at the oral or written request
of any individual so authorized in the Borrower’s resolutions delivered in connection with the execution of the Credit Agreement.

 

(d)       Application
of Payments. Each payment made on this Note shall be credited first, to any interest then due and second, to the outstanding
principal balance hereof.

 

    -2- 

     

    

 

PREPAYMENT:

 

Borrower may prepay principal
on this Note at any time, in any amount and without penalty. If principal under this Note is payable in more than one installment,
then any prepayments of principal shall be applied to the most remote principal installment or installments then unpaid.

 

EVENTS OF DEFAULT:

 

This Note is made pursuant
to and is subject to the terms and conditions of the Credit Agreement. Any default in the payment or performance of any obligation
under this Note, or any defined event of default under the Credit Agreement, shall constitute an "Event of Default" under
this Note.

 

MISCELLANEOUS:

 

(a)       Remedies.
Upon the sale, transfer, hypothecation, assignment or other encumbrance, whether voluntary, involuntary or by operation of law,
of all or any interest in any real property securing this Note, if any, or upon the occurrence of any Event of Default, the holder
of this Note, at the holder's option, may declare all sums of principal and interest outstanding hereunder to be immediately due
and payable without presentment, demand, notice of nonperformance, notice of protest, protest or notice of dishonor, all of which
are expressly waived by Borrower, and the obligation, if any, of the holder to extend any further credit hereunder shall immediately
cease and terminate. Borrower shall pay to the holder immediately upon demand the full amount of all payments, advances, charges,
costs and expenses, including reasonable attorneys' fees (to include outside counsel fees and all allocated costs of the holder's
in-house counsel), expended or incurred by the holder in connection with the enforcement of the holder's rights and/or the collection
of any amounts which become due to the holder under this Note whether or not suit is brought, and the prosecution or defense of
any action in any way related to this Note, including without limitation, any action for declaratory relief, whether incurred at
the trial or appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection
with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank
or any other person) relating to Borrower or any other person or entity.

 

(b)       Obligations
Joint and Several. Should more than one person or entity sign this Note as a Borrower, the obligations of each such Borrower
shall be joint and several.

 

(c)       Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of New York, but giving effect to
federal laws applicable to national banks, without reference to the conflicts of law or choice of law principles thereof.

 

(d)       Savings
Clause. If at any time the interest rate set forth in this Note exceeds the maximum interest rate allowable under applicable
law, the interest rate shall be deemed to be such maximum interest rate allowable under applicable law.

 

(e)       Right
Of Setoff; Deposit Accounts. Upon and after the occurrence of an Event of Default, (a) Borrower hereby authorizes Bank, at
any time and from time to time, without notice, which is hereby expressly waived by Borrower, and whether or not Bank shall have
declared this Note to be due and payable in accordance with the terms hereof, to set off against, and to appropriate and apply
to the payment of, Borrower's obligations and liabilities under this Note (whether matured or unmatured, fixed or contingent, liquidated
or unliquidated), any and all amounts owing by Bank to Borrower (whether payable in U.S. dollars or any other currency, 

    -3- 

     

    

whether
matured or unmatured, and in the case of deposits, whether general or special (except trust and escrow accounts), time or demand
and however evidenced), and (b) pending any such action, to the extent necessary, to hold such amounts as collateral to secure
such obligations and liabilities and to return as unpaid for insufficient funds any and all checks and other items drawn against
any deposits so held as Bank, in its sole discretion, may elect. Borrower hereby grants to Bank a security interest in all deposits
and accounts maintained with Bank to secure the payment of all obligations and liabilities of Borrower to Bank under this Note.

 

(f)       Amended
and Restated Promissory Note. This Note amends, restates, increases and supersedes that certain Promissory Note dated October
7, 2016 executed by Borrower in favor of Bank in the principal amount of $15,000,000.00 (the “Original Note”). In the
event of any conflict between the terms of the Original Note and this Note, the terms of this Note shall control.

 

    -4- 

     

    

 

IN WITNESS WHEREOF, the undersigned has executed
this Note as of the date first written above.

 

 

EnviroStar, Inc., a Delaware corporation

 

 

By:/s/Henry M. Nahmad                

Henry M. Nahmad, President

 

	STATE OF 	 	)	 
	COUNTY OF	 	)	 

 

The foregoing instrument
was acknowledged before me this ___ day of February, 2018, by Henry M. Nahmad, as President of EnviroStar, Inc., a Delaware corporation,
on behalf of the corporation. He is personally known to me or produced _______________ as identification.

 

 

	 	 
	 	Print or Stamp Name:	 
	 	Notary Public: State of 	 
	 	Commission Number:	 
	 	My Commission Expires:	 

 

    -5-

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