Document:

Exhibit 10.3

 

Execution
Version

 

PLEDGE AGREEMENT

 

This Pledge Agreement
(as amended, modified or supplemented from time to time, this “Agreement”) is made as of September 28, 2017
(the “Effective Date”), by and between IOENGINE, LLC, a Delaware limited liability company (the “Secured
Party”) and GlassBridge Enterprises, Inc., a Delaware corporation f/k/a Imation Corp. (the “Pledgor”).

 

WHEREAS, pursuant to
that certain Settlement Agreement dated as of even date herewith between the Pledgor and the Secured Party (the “Settlement
Agreement”), the Pledgor is obligated to make future payments to the Secured Party, as evidenced by that certain Secured
Promissory Note, made by the Pledgor to the order of the Secured Party dated as of the date hereof (the “Settlement Note”);

 

WHEREAS, the Pledgor
has agreed to execute and deliver this Agreement and grant to the Secured Party all of Pledgor’s right, title and interest
in the Pledged Collateral in order to secure the Pledgor’s obligations under the Settlement Note;

 

WHEREAS, the Secured
Party’s willingness to accept the Settlement Note pursuant to the Settlement Agreement is subject to the condition that the
Pledgor executes and delivers this Agreement;

 

NOW, THEREFORE, in consideration of
the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Pledgor and the Secured Party hereby agree as follows:

 

1.                  
Defined Terms. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings
provided for in the Settlement Note. In addition, the following terms shall have the meanings set forth below:

 

“Acceptable
Bank” means any commercial bank organized under the laws of the United States or any state thereof having combined capital
and surplus of not less than $250,000,000.

 

“Bank Collateral”
means any of the following that become Pledged Collateral in accordance with Section 6 below: (i) any irrevocable standby
letter of credit issued to the Secured Party by any Acceptable Bank, which letters of credit (A) shall be delivered to the Secured
Party, (B) may be drawn on demand by the Secured Party subject only to the delivery of a certificate to the issuing bank executed
by the Secured Party certifying that an Event of Default has occurred under the Settlement Note (and there being no other conditions
to drawing such letter of credit) and (C) require the issuer thereof to provide at least thirty (30) days’ notice to the
Secured Party of the renewal or non-renewal thereof and provides that the Secured Party may draw the full amount of the letter
of credit if it is not renewed or extended, (ii) any cash or cash equivalents held in a designated account of Pledgor with an Acceptable
Bank, which account shall be subject to the exclusive dominion and control of the Secured Party pursuant to a customary control
agreement which shall provide the Secured Party the right to withdraw any amounts contained therein upon the occurrence of an Event
of Default without the need for any notice or consent of the Pledgor and/or (iii) any bank guaranty provided by an Acceptable Bank
in form and substance reasonably acceptable to the Secured Party.

 

“Collateralization Amount”
means, as of any date of determination, the sum of (x) sixty six and two-thirds percent (66.67%) of the Pledged Note Applicable
Value under each Pledged Note as of such date of determination in which Secured Party has a valid and enforceable first priority
lien plus (y) the value of any Pledged Collateral that consists of Bank Collateral in which the Secured Party has a valid
and enforceable first priority lien. For purposes of determining the Collateralization Amount, the value of Bank Collateral shall
equal the face amount of any undrawn letter of credit or bank guaranty, or the amount of cash or cash equivalent of any deposit
accounts, in each case that are pledged to the Secured Party as Bank Collateral as of such date of determination in accordance
with the terms of this Agreement. The Pledgor shall deliver a calculation of the Collateralization Amount to the Secured Party
no later than five (5) Business Days after the Secured Party has requested a calculation (together with supporting documentation
containing reasonable detail). The Secured Party may not request more than four (4) such calculations in any calendar year, provided
that during the occurrence of an Event of Default there shall be no limitation on the frequency of such requests.

 

    	
PLEDGE
                                         AGREEMENT (GlassBridge Enterprises, Inc. / IOENGINE LLC) 

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                                         1 of 7

     

    

  

“Event of
Default” has the meaning specified in Section 10 below.

 

“Issuer”
means NXSN Acquisition Corp., a Delaware corporation.

 

“Issuer Insolvency
Event” means any of the following: (A) The Issuer (i) files, or consents by answer or otherwise to the filing against
it of, a petition or Reorganization (as defined below), (ii) makes an assignment for the benefit of its creditors, (iii) consents
to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to
any substantial part of its property, (iv) is adjudicated as insolvent or to be liquidated, or (v) takes corporate action for the
purpose of approving a Reorganization with respect to the Issuer, or any of the foregoing; (B) a governmental authority enters
an order appointing, without consent by the Issuer, a custodian, receiver, trustee or other officer with similar powers with respect
to the Issuer or with respect to any substantial part of the Issuer’s property, or constituting an order for relief or approving
a petition for Reorganization, or any such petition is filed against the Issuer and such petition is not dismissed within sixty
(60) days; or (C) the Issuer fails to pay scheduled principal or interest on the Pledged Note as and when due and such failure
remains uncured for fifteen (15) Business Days.

 

“Issuer Reorganization”
means (i) any insolvency or bankruptcy case or proceeding, or any receivership, liquidation, reorganization or other similar case
or proceeding in connection therewith, relative to the Issuer or its assets, (ii) any liquidation, dissolution or other winding
up of the Issuer, whether voluntary or involuntary and whether or not involving insolvency or bankruptcy.

 

“Original
Pledged Note” shall mean that certain Senior Secured Convertible Note dated January 23, 2017, issued by the Issuer to
the order of the Pledgor, in the original principal amount of $25,000,000, a copy of which is attached hereto as Exhibit A.

 

“Other NXSN
Note” has the meaning specified in Section 3 below.

 

“Permitted
Liens” means (i) inchoate liens for taxes, fees, assessments or other governmental charges not yet due; (ii) in the case
of Bank Collateral consisting of cash on deposit, liens of a depositary bank or collecting bank in such deposits granted in the
ordinary course of business securing amounts owing to such bank for cash management or operating account arrangements; and (iii)
subordinated liens subject to subordination and/or intercreditor agreements in form and substance reasonably satisfactory to the
Secured Party.

 

“Pledged Collateral”
has the meaning specified in Section 2 below.

 

“Pledged Note”
means the Original Pledged Note or a Replacement Note or a Restatement Note, as applicable.

 

“Pledged Note
Applicable Value” means, as of any date of determination, (a) at any time during which an Issuer Insolvency Event is
not occurring, the outstanding principal balance under the Pledged Note as of such date of determination, (b) at any time on or
before the ninetieth (90th) day following the commencement of an Issuer Insolvency Event, seventy percent (70%) of the outstanding
principal balance under the Pledged Note as of such date of determination, (c) at any time after the ninetieth (90th) day but on
or before the one-hundred and twentieth (120th) day following the commencement of an Issuer Insolvency Event, fifty
percent (50%) of the outstanding principal balance under the Pledged Note as of such date of determination, (d) at any time after
the one-hundred and twentieth (120th) day following the commencement of an Issuer Insolvency Event, 25 percent (25%)
of the outstanding principal balance under the Pledged Note as of such date of determination.

 

    	
PLEDGE
                                         AGREEMENT (GlassBridge Enterprises, Inc. / IOENGINE LLC) 

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“Pledged Note
Proceeds” means the amount of (i) principal payments made to or on behalf of the Pledgor or its designee under the Pledged
Note and/or the Other NXSN Note; (ii) consideration received by or on behalf of the Pledgor or its designee upon the sale, transfer
or assignment, or in exchange for or as part of the restructuring, reduction or work-out of the obligations of all or a portion
of the Pledged Note and/or Other NXSN Note; and (iii) consideration received by or on behalf of the Pledgor or its designee for
effectuating the conversion or split of all or a portion of the Pledged Note and/or Other NXSN Note (but not including any preferred
stock issued upon the conversion thereof or any Other NXSN Note).

 

“Replacement
Note” has the meaning specified in Section 3.1 below.

 

“Restatement
Note” has the meaning specified in Section 3.2 below.

 

“Required
Collateral Value” means, as of any date of determination, the amount of the outstanding principal balance under the Settlement
Note, including any PIK Interest Accrual Amount as defined in the Settlement Note.

 

“UCC”
means the Uniform Commercial Code as enacted in the State of New York or any other applicable jurisdiction.

 

2.                  
Pledge. The Pledgor hereby grants and pledges to the Secured Party a security interest in all of its right, title
and interest in and to the following, whether now owned or existing or hereafter acquired or arising:

 

		(a)	the Pledged Note;

 

		(b)	if all or any portion of the Pledged Note has been replaced by Bank Collateral pursuant to Section
5 below, the Bank Collateral; and

 

		(c)	all products and proceeds (as defined in the UCC) of the foregoing ((a)-(c) collectively, the “Pledged
Collateral”).

 

The Pledgor authorizes the Secured Party
to file a UCC-1 financing statement in the form attached hereto as Exhibit B (the “UCC-1”) describing
the Pledged Collateral in any required jurisdiction. Upon the pledge of any Replacement Note or Bank Collateral, the Secured Party
is hereby authorized to file a new or amended UCC-3 financing statement to reflect such additional collateral in any required jurisdiction.
Notwithstanding any provision in this Agreement to the contrary, no provision of this Agreement shall require the Pledgor to deliver
to the Secured Party the original (a) Original Pledged Note or (b) Replacement Note, subject in all respects to the rights and
remedies available to the Secured Party after the occurrence of an Event of Default.

 

3.                  
Exchanges of the Pledged Note.

  

    	
PLEDGE
                                         AGREEMENT (GlassBridge Enterprises, Inc. / IOENGINE LLC) 

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3.1              
Replacement Note. The Pledgor and the Secured Party agree that the Pledgor shall be entitled, in its sole discretion,
to “split” the Pledged Note into one or more secured promissory notes of similar tenor and following such “split”
only one such note shall then remain as Pledged Collateral under this Agreement in replacement of the Original Pledged Note (such
promissory note, the “Replacement Note” and such promissory note or notes arising from the “split”
that are not thereafter pledged, the “Other NXSN Note”), so long as: (a) the Collateralization Amount is equal
to or greater than the Required Collateral Value after giving pro forma effect to pledge of the Replacement Note; (b) the
Replacement Note shall be senior in payment priority to the Other NXSN Note; and (c) the Replacement Note shall contain identical
terms with respect to the obligors, interest, security, and maturity date. Notwithstanding any provision herein to the contrary,
the face principal amount of the Replacement Note may be lower than the Original Pledged Note and the Replacement Note may or may
not (as determined by the Pledgor in its sole discretion) include any features that permit the noteholder to convert any principal
owing on such Replacement Note into preferred stock of the Issuer. The Pledgor shall notify the Secured Party in writing at least
ten (10) Business Days in advance of the “split,” which notice shall include finalized drafts of the Replacement Note
and the Other NXSN Note and an agreement by the holder of the Other NXSN Note to subordinate payments on the Other NXSN Note to
the payments in full and in cash under the Replacement Note, which agreement shall be reasonably satisfactory to the Secured Party.

 

3.2              
Restatement Note. The Pledgor and the Secured Party agree that the Pledgor shall be entitled, in its sole discretion,
to amend or restate the Pledged Note from time to time in replacement of the Original Pledged Note (such promissory note, the “Restatement
Note”), so long as: (a) the principal amount of the Restatement note is an amount equal to or greater than $25,000,000
minus the amount of any principal payments actually made to the Secured Party in respect to the Settlement Note; (b) the Restatement
Note shall contain identical terms with respect to the obligors, interest, security, guarantees, payment dates, payment triggering
events, the form of consideration and maturity date as the Original Pledged Note, and shall otherwise have terms no less favorable
to the Company than the Original Pledged Note other than with respect to the aggregate principal amount outstanding thereunder
(which may be reduced to no less than $25,000,000) minus the amount of any principal payments actually made to the Secured Party
in respect to the Settlement Note, and (c) the amendment or restatement occurs on or prior to the date that is one-hundred and
eighty (180) days after the date hereof (after which, amendment or restatement of the Pledged Note may only be done so long as
the conditions of clause (a) and clause (b) to this Section 3.2 are satisfied, and the consent of the Secured Party is obtained,
which shall not be unreasonably withheld). The Pledgor shall notify the Secured Party in writing at least ten (10) Business Days
in advance of any such amendment or restatement, which notice shall include finalized drafts of the Restatement Note.

 

4.             Required Collateral Value. The Pledgor hereby covenants that, except as provided in Section 6.1 below, at
all times the Collateralization Amount shall be equal to or greater than the Required Collateral Amount.

 

5.             Pledgor’s Rights. Unless an Event of Default has occurred and is continuing, the Pledgor shall be entitled
to (i) receive and retain all payments of interest that are paid on the Pledged Note (except that receipt and retention of principal
are governed by the following subsection (ii)), (ii) receive and retain all payments of principal that are paid on the Pledged
Note, provided that Secured Party is provided with Bank Collateral in an amount equal to the Pledged Note Proceeds, (iii) assign,
transfer or otherwise dispose of the Pledged Note in exchange for consideration, provided that the Pledgor must provide the Secured
Party with Bank Collateral in an amount equal to the Pledged Note Proceeds, and (iv) exercise all rights of the holder of the Pledged
Note; provided the Pledgor shall not exercise any rights to convert the Pledged Note or any portion thereof into preferred
stock unless it gives the Secured Party no less than ten (10) Business Days’ advance written notice, and the Pledgor provides
Bank Collateral in an amount such that the Collateralization Amount is equal to or greater than the Required Collateral Value.

  

    	
PLEDGE
                                         AGREEMENT (GlassBridge Enterprises, Inc. / IOENGINE LLC) 

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6.             Replacement Collateral.

 

6.1              
Pledged Note Proceeds. If the Pledgor or its designee realizes Pledged Note Proceeds, Pledgor must provide the Secured
Party with Bank Collateral within ten (10) Business Days of its realization of such Pledged Note Proceeds in an amount equal to
such Pledged Note Proceeds (up to the aggregate principal amount outstanding under the Settlement Note as of such date) and the
Collateralization Amount shall continue to be greater than the Required Collateral Value after giving pro forma effect to
such realization. Nothing contained in this Pledge Agreement shall have the effect of prohibiting the Pledgor from consummating
one or more transactions that would result in the realization of Pledged Note Proceeds subject to the obligations set forth in
the foregoing sentence.

 

6.2              
Issuer Insolvency Event. In the event of an Issuer Insolvency Event that is not cured within five (5) Business Days,
to the extent necessary, the Pledgor must provide the Secured Party with Bank Collateral sufficient to ensure the Collateralization
Amount is equal to or greater than the Required Collateral Amount.

 

6.3              
Bank Collateral. If the Bank Collateral is cash, the Pledgor shall take all necessary actions to provide the Secured
Party with control of such Bank Collateral within the meaning of Section 9-104 of the UCC promptly upon providing such Bank Collateral.
In addition, the Pledgor may at any time in its discretion, replace the Pledged Note in its entirety with Bank Collateral provided
that the Collateralization Amount shall be equal to or greater than the Required Collateral Value. Once the Secured Party is provided
with Bank Collateral pursuant to the preceding sentence, the Secured Party’s security interest in the Pledged Note will automatically
terminate without any further action required on the part of the Secured Party.

 

7.             Rights of the Secured Party.

 

7.1              
Certain Rights of the Secured Party. The Secured Party shall not be liable for failure to collect or realize upon
this Agreement or any collateral security hereof, or any part hereof, or for any delay in so doing, nor shall the Secured Party
be under any obligation to take any action whatsoever with regards thereto.

 

7.2              
Care in Custody of Pledged Collateral. The Secured Party shall be deemed to have exercised reasonable care in the
custody and preservation of the Pledged Collateral and in protecting any rights with respect to the Pledged Collateral against
prior parties, if the Secured Party takes such actions for that purpose as the Pledgor shall reasonably request in writing.

 

8.             Representations and Warranties. The Pledgor hereby represents and warrants to the Secured Party that, as of the Effective
Date:

 

8.1              
Ownership of the Pledged Collateral. The Pledgor is the legal and beneficial owner of the Pledged Collateral and
no liens exist against the Pledged Collateral (other than the lien created pursuant to this Agreement and Permitted Liens). The
security interests granted pursuant to this Agreement (a) constitute valid security interests in all of the Pledged Collateral
in favor of the Secured Party that will be perfected upon the filing of the UCC-1 Financing Statement in the office of the Secretary
of State of the State of Delaware and (b) are prior to all other liens on the Pledged Collateral in existence on the date hereof.

 

    	
PLEDGE
                                         AGREEMENT (GlassBridge Enterprises, Inc. / IOENGINE LLC) 

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8.2              
Authority to Enter into Agreement. The Pledgor has the corporate power and authority to enter into and perform its
obligations under this Agreement.

 

8.3              
Pledged Note. The Original Pledged Note is enforceable, in full force and effect and the Issuer has not breached
any of its material obligations under the Original Pledged Note.

 

The Company makes no
representations or warranties in this Agreement, express or implied, other than the express foregoing representations and warranties
of the Company made as of the Effective Date set forth in this Section 8.

 

9.             Covenants.

 

9.1              
Defense of Claims. The Pledgor will, upon the Secured Party’s written request, defend the Secured Party’s
right, title and security interest in and to the Pledged Collateral against the claims and demands of all persons whomsoever.

 

9.2              
Limitation on Liens. Except as permitted by this Agreement, the Pledgor will not create, incur or permit to exist
any lien with respect to any of the Pledged Collateral, except for the lien created by this Agreement and Permitted Liens.

 

9.3              
Place of Organization; Name. The Pledgor shall not, except upon 15 days’ prior written notice to the Secured
Party and delivery to the Secured Party of all additional executed financing statements and other documents reasonably requested
by the Secured Party to maintain the validity, perfection and priority of the security interests provided for herein, (i) change
its jurisdiction of organization or the location of its chief executive office or sole place of business or principal residence
as in effect on the date hereof or (ii) change its name.

 

9.4              
Maintenance of Perfected Security Interest: Further Documentation. (a) The Pledgor shall maintain the security interest
created by this Agreement as a perfected security interest having at least the priority described in Section 8.1 and (b)
and at any time and from time to time, upon the written request of the Secured Party, and at the expense of the Pledgor, the Pledgor
will promptly and duly execute and deliver, and have recorded, such further instruments and documents and take such further actions
as the Secured Party may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and
of the rights and powers herein granted.

 

10.           Event of Default. An “Event of Default” under this Agreement occurs if an Event of Default under the
Settlement Note occurs in accordance with the terms of the Settlement Note.

 

11.           Remedies. If an Event of Default has occurred and is continuing, the Secured Party may exercise all rights and remedies
of a secured party under the UCC or other applicable law.

 

12.           Termination. This Agreement and the security interests in the Pledged Collateral shall automatically terminate upon
the satisfaction in full of the Pledgor’s obligations under the Settlement Note (including payment in cash of all outstanding
amounts thereunder), at which time the Secured Party promptly shall take all reasonable actions requested by the Pledgor to evidence
the termination of its liens in the Pledged Collateral.

 

13.           Notices. All notices and other communications required or permitted hereunder shall be given in accordance with Section
9.1 of the Settlement Note.

 

    	
PLEDGE
                                         AGREEMENT (GlassBridge Enterprises, Inc. / IOENGINE LLC) 

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14.           Severability. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction,
then such provision or provisions shall be modified to the extent necessary to make such provision valid and enforceable, and to
the extent that this is impossible, then such provision shall be deemed to be excised from this Agreement, and the validity, legality
and enforceability of the rest of this Agreement shall not be affected thereby.

 

15.           No Waiver; Cumulative Remedies. The Secured Party shall not by any act, delay, omission or otherwise be deemed to
have waived any of its rights or remedies hereunder, and no waiver shall be valid unless in writing, signed by the Secured Party,
and then only to the extent therein set forth. A waiver of any right or remedy hereunder on any occasion shall not be construed
as a bar to any right or remedy that the Secured Party would otherwise have on any future occasion. No failure to exercise nor
any delay in exercising, on the part of the Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise of any
right, power or privilege. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and
are not exclusive of any rights or remedies provided by law to the Secured Party.

 

16.           No Oral Modification; Successors. None of the terms or provisions of this Agreement may be waived, altered, modified
or amended, except by an instrument in writing, executed by the Secured Party and the Pledgor. This Agreement and all obligations
of the Pledgor hereunder shall be binding on its successors and assigns and shall, together with the rights and remedies of the
Secured Party hereunder, inure to the benefit of each the Secured Party and the Pledgor and its respective successors and assigns.

 

17.           Governing Law. This Agreement, the negotiation, terms and performance of this Agreement, the rights of the parties
under this Agreement, and all actions arising in whole or in part under or in connection with this Agreement shall be governed
by and construed in accordance with the domestic substantive laws of the State of New York, without giving effect to any choice
or conflict of law provision or rule that would cause the application of the laws of any other jurisdiction.

 

18.           Counterparts. This Agreement may be executed in one or more counterparts, and by different parties hereto on separate
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
Facsimile or electronic signatures shall constitute original signatures for all purposes of this Agreement.

 

19.           Construction; Headings. This Agreement shall be deemed to be jointly drafted by the Pledgor and the Secured Party
and shall not be construed against any person as the drafter hereof. The headings of this Agreement are for convenience of reference
and shall not form part of, or affect the interpretation of, this Agreement.

 

[SIGNATURE PAGE TO FOLLOW]

 

 

    	
PLEDGE
                                         AGREEMENT (GlassBridge Enterprises, Inc. / IOENGINE LLC) 

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IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the day and year first above written.

 

 

	 	PLEDGOR:
	 	 	 
	 	GLASSBRIDGE ENTERPRISES, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Danny Zheng
	 	Name:	Danny Zheng
	 	Title:	Chief Financial Officer
	 	 	Interim Chief Executive Officer
	 	 	 
	 	 	 
	 	 	 
	 	SECURED PARTY:
	 	 	 
	 	IOENGINE, LLC
	 	 	 
	 	 	 
	 	By:	/s/ Scott McNulty
	 	Name:	Scott McNulty
	 	Title:	CEO

 

 

 

 

 

    	Signature
                                         Page to Pledge Agreement

    	 

    

 

Exhibit A

 

[Attach Copy of Original Pledged Note]

 

 

 

 

 

 

     

     

    

 

 

Exhibit B

 

[Form of UCC-1 Financing Statement]ENVIROSTAR, INC.

2015 EQUITY INCENTIVE PLAN

NOTICE OF GRANT

AND

RESTRICTED STOCK AGREEMENT

Notice is hereby
given that you, the undersigned Participant, have been granted the number of shares of Common Stock of EnviroStar, Inc. (the “Company”)
set forth below (“Shares”), subject to the terms and conditions of the EnviroStar, Inc. 2015 Equity Incentive
Plan (the “Plan”) and this Notice of Grant and Restricted Stock Agreement, including the attachments hereto
(collectively, this “Agreement”). Capitalized terms used but not defined in this Agreement shall have the meanings
ascribed to such terms in the Plan.

	
         

        Participant:

         

	Shares Granted: 	
         

         

	Grant Date: 
	 	 
	
        Vesting Schedule:

         

 

By signing below,
you accept this grant of Shares and you hereby represent that you: (i) agree to the terms and conditions of this Agreement and
the Plan; (ii) have reviewed the Plan and this Agreement in their entirety, and have had an opportunity to obtain the advice of
legal counsel and/or your tax advisor with respect thereto; (iii) fully understand and accept all provisions hereof; and (iv) agree
to accept as binding, conclusive, and final all of the Committee’s decisions regarding, and interpretations of, the Plan
and this Agreement, in accordance with the terms and conditions of the Plan.

 

	 	
        AGREED TO AND ACCEPTED BY THE

        PARTICIPANT:

         

	 	 	 
	 	Name:	 
	 	Date:  	 
	 	Social Security No.:	 
	 	Address: 	 
	 	 	 

 

    1 

     

    

ENVIROSTAR, INC.

2015 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK AGREEMENT

1.       Grant
of Restricted Stock. The Company has granted to you, the Participant, the number of Shares specified in the Notice of Grant
on the preceding page (the “Notice of Grant”), subject to the following terms and conditions. In consideration
of such grant, you agree to be bound by the terms and conditions of this Agreement and of the Plan.

2.       Forfeiture
Restrictions; Release of Shares; Acceleration Upon Death or Disability. Prior to the vesting of the Shares pursuant to the
vesting schedule specified in the Notice of Grant or as expressly set forth herein, the Shares shall remain subject to forfeiture.
Any and all Shares which remain subject to the forfeiture restrictions from time to time are sometimes hereinafter referred to
as “Unreleased Shares.” The forfeiture restrictions shall lapse as to the Shares granted in the amount(s) and
on the date(s) specified in the Notice of Grant (each, a “Release Date”); provided, however, that (i) in the
event of the Participant’s death or Disability (which, for all purposes of this Agreement, shall mean the permanent and total
disability of the Participant as defined in Section 22(e)(3) of the Code, or any successor rule or regulation) prior to the occurrence
of a Cessation (as defined below), the forfeiture restrictions shall immediately lapse with respect to all Unreleased Shares on
the date of the Participant’s death or determination of the Participant’s Disability, as the case may be (in which
case the date of the Participant’s death or determination of the Participant’s Disability, as the case may be, shall
be deemed a Release Date for purposes of this Agreement), and (ii) no Shares shall be released on any Release Date if, on or prior
to the Release Date, (a) the Participant failed to satisfy the performance goals specified in the Notice of Grant, if any (the
“Performance Goals”), or (b) a Cessation occurs. For purposes of this Agreement, the term “Cessation”
means the cessation of the Participant’s service as an officer, employee, director or consultant of the Company or its Subsidiaries
for any reason (including, without limitation, voluntary resignation or involuntary termination) other than the Participant’s
death or Disability, it being understood that a Cessation will not be deemed to occur so long as the Participant continues to serve
as an officer, employee, director or consultant of the Company or any of its Subsidiaries or as a result of a change in status
among officer, employee, director or consultant of the Company or any Subsidiary. Any question as to whether and when a Cessation
has occurred shall be determined by the Committee, and its determination shall be final and binding.

3.       Forfeiture
of Shares. If Participant fails to satisfy the specified Performance Goals, if any, or a Cessation occurs, then all Unreleased
Shares shall be immediately forfeited to the Company without consideration.

4.       Restriction
on Transfer. The Participant shall not sell, assign, pledge, exchange, hypothecate or otherwise transfer, encumber or dispose
of any Unreleased Shares; provided, for the avoidance of doubt, that the foregoing shall not be deemed to restrict or limit in
any manner the forfeiture of Unreleased Shares in accordance with the terms hereof.

5.       Retention
of Shares. The Company shall retain possession of the share certificates representing the Unreleased Shares, together with
attached stock power duly 

    2 

     

    

endorsed in blank. The Company shall hold the Unreleased Shares and related stock power until the vesting
thereof, at which time the Company shall deliver the share certificate(s) representing the vested Shares to the Participant (or
the Participant’s estate, if applicable).

6.       Status
of Stock. The Participant agrees that the Shares will not be sold or otherwise disposed of in any manner which would constitute
a violation of any applicable federal or state securities laws or the terms and conditions of this Agreement or the Plan. The Participant
further agrees (a) that the certificates representing the Shares may bear such legend or legends as the Company deems appropriate
in order to assure compliance with applicable securities laws, (b) that the Company may refuse to register the transfer of the
Shares on the stock transfer records of the Company if such proposed transfer would in the opinion of counsel satisfactory to the
Company constitute a violation of any applicable securities laws or the terms and conditions of this Agreement or the Plan and
(c) that the Company may give related instructions to its transfer agent, if any, to stop registration of the attempted transfer
of the Shares.

7.       Stockholder
Rights. Subject to the terms hereof, the Participant shall have the rights of a stockholder with respect to the Shares prior
to their vesting, including, without limitation, voting rights and the right to receive any dividends declared thereon; provided,
however, that stock distributed in respect of the Shares in connection with a stock split or stock dividend shall be subject to
the forfeiture restrictions and other terms of this Agreement to the same extent as the Shares and shall be included thereafter
as “Shares” for all purposes of this Agreement.

8.       Tax
Matters. The Participant has reviewed with the Participant's own tax advisors the federal, state, local and foreign tax consequences
of the transactions contemplated by this Agreement. The Participant is relying solely on such advisors and not on any statements
or representations of the Company or any of its employees or agents. The Participant understands that the Participant (and not
the Company) shall be responsible for the Participant's own tax liability that may arise as a result of the transactions contemplated
by this Agreement. The Participant understands that for U.S. taxpayers, Section 83 of the Code taxes as ordinary income the difference
between the purchase price for the Shares, if any, and the fair market value of the Shares as of the date any restrictions on the
Shares lapse. The Participant understands that if he or she is a U.S. taxpayer, the Participant
may elect to be taxed at the time the Shares are granted rather than when the restrictions on the Shares laps by filing an election
under Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days after the date of grant. The Participant
acknowledges that it is the Participant’s sole responsibility and not the Company’s to, if the Participant desires
to do so, file timely the election under Section 83(b) of the Code.

9.       General.

(a)       This
Notice and Agreement shall be governed by and construed under the laws of the State of Florida, without regard to the conflicts
of law principles thereof.

    3 

     

    

(b)       This
Agreement and the Plan, which is incorporated herein by reference, represents the entire agreement between the parties with respect
to the Shares granted to the Participant hereunder. In the event of a conflict between the terms and conditions of the Plan and
the terms and conditions of this Agreement, the terms and conditions of the Plan shall prevail.

(c)       Any
notice, demand or request required or permitted to be delivered by either the Company or the Participant pursuant to the terms
of this Agreement shall be in writing and shall be deemed given when delivered personally, deposited with a reputable courier service,
or deposited in the U.S. Mail, First Class with postage prepaid, and addressed to the Participant at the address set forth in the
Notice of Grant or to the Company at its principal executive offices, or, in each case, to such other address as either party may
specify in writing by like notice.

(d)       The
rights of the Company under this Agreement and the Plan shall be transferable to any one or more persons or entities, and all covenants
and agreements hereunder shall inure to the benefit of, and be enforceable by the Company's successors and assigns. The rights
and obligations of the Participant under this Agreement may only be assigned with the prior written consent of the Company, which
may be granted, withheld, conditioned or delayed in the Company’s sole discretion.

(e)       The
Participant agrees upon request to execute any further documents or instruments necessary or desirable to carry out the purposes
or intent of this Agreement.

(f)       Nothing
in this Agreement confers or will confer on the Participant any right with respect to continuance of employment or other service,
nor will it interfere in any way with any right to terminate or modify the terms of the Participant’s employment or other
service at any time.

 

#####

    4 

     

    

STOCK POWER

FOR VALUE RECEIVED
I, __________, hereby sell, assign and transfer unto EnviroStar, Inc. _________________________(__________) shares of Common Stock
of EnviroStar, Inc. standing in my name of the books of said corporation represented by Certificate No. ________ herewith and do
hereby irrevocably constitute and appoint _____________________________ to transfer the said stock on the books of the within named
corporation with full power of substitution in the premises.

This Stock Power
may be used only in accordance with the Notice of Grant and the Restricted Stock Agreement between EnviroStar, Inc. and the undersigned
dated _________.

	 	 	 	 
	Dated: _______________, 20___	 	 	 
	 	 	 	 
	 	 	Signature: ____________________________
	 	 	 	 
	 	 	Print Name: __________________
	 	 	 

 

INSTRUCTIONS:

Please DO NOT fill in any blanks other than the signature
lines.

The purpose of this assignment is
to enable the Company to receive the return of the Shares as set forth in the Agreement, without requiring additional signatures
on the part of the Participant.

    5

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