Exhibit 10.3

AMENDMENT
TO THE
ASSET PURCHASE AGREEMENT
OF
VENTURE METALS, LLC

          THIS AMENDMENT to the Asset Purchase Agreement is made and entered
into as of the 1st day of July, 2010 (the “Effective Date”) by and among
Industrial Services of America, Inc. (“ISA”) and the undersigned, constituting
all of the Members of Venture Metals, LLC (“the Company”).

          WHEREAS, ISA and the members of the Company entered into an Asset
Purchase Agreement of Venture Metals, LLC in March 5, 2010 subject to ISA
shareholder approval, and the parties now desire to amend the Asset Purchase
Agreement.

          NOW THEREFORE, in consideration of the mutual covenants set forth
herein and in the Asset Purchase Agreement and for other good and valuable
consideration, the adequacy, receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

          1. Based on an independent appraisal conducted by Valuation Research
Corporation (VCR), ISA agrees to pay additional compensation, beyond that set
forth in the Asset Purchase Agreement, to Venture Metals for the Venture name,
the Venture customer and vender list and the Non-compete.

          SECTION 1.2 Additional Consideration for the Transferred Assets.

                    1.2.1 Venture Metals, LLC shall be entitled to receive
additional consideration for the transfer of assets upon the terms and subject
to the conditions set forth in this amended Agreement. In addition to the
consideration set forth in the Asset Purchase Agreement, ISA shall deliver to
the Company for the Transferred Assets and the Non-Compete Agreement up to
750,000 shares of ISA Common Stock in accordance with the following:

                    (a) Venture Metals, LLC shall receive up to ninety thousand
(90,000) shares of ISA common stock per annum commencing in 2011 for calendar
year 2010, and thereafter in 2012, 2013, 2014, 2015 and 2016 for calendar years
2011, 2012, 2013, 2014 and 2015, respectively, resulting in a maximum of four
hundred and fifty thousand (450,000) shares of ISA common stock over the such
period (but in no event greater than 90,000 shares in any one calendar year)
based on satisfaction of the return on net assets (“RONA”) criteria set forth in
Exhibit A attached hereto and incorporated herein by reference. Such
consideration shall be payable in the form of ISA common stock in one delivery
of a stock certificate, as soon as practicable following December 31, 2015
subject to applicable withholding and other taxes and other required deductions

                    (b) Venture Metals, LLC shall be entitled to receive
additional consideration for the transfer of assets up to three hundred thousand
(300,000) shares of ISA common stock based on satisfaction of the 5 year
(2010-2014) average return on net assets (“RONA”) criteria set forth in Exhibit
A attached hereto and incorporated herein by reference. Such consideration shall
be payable in the form of Company common stock in one delivery of a stock
certificate, as soon as practicable following December 31, 2014 subject to
applicable withholding and other taxes and other required deductions.

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          ISA and the Company have each caused this Agreement to be executed by
its duly authorized officer all as of the day and year first above written.

 

 

 

 

 

 

 

 

“ISA”

 

 

 

 

 

 

INDUSTRIAL SERVICES OF AMERICA, INC.

 

 

 

By: 

  /s/           Harry Kletter

 

 

 

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Title:

                 Chief Executive Officer

 

 

 

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the “Company”

 

 

 

 

 

 

VENTURE METALS, LLC

 

 

 

By:

  /s/            Steve Jones

 

 

 

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Steve Jones, Manager

 

 

 

 

 

 

 

By:

  /s/            Jeff Valentine

 

 

 

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Jeff Valentine, Manager

 

 

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EXHIBIT A

ADDITIONAL CONSIDERATION FOR TRANSFERRED ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

2010-2014 Average RONA Return

 

 

300,000

 

 

 

 

 

 

 

 

 

RONA

 

AVG Operating
Income

 

%

 

AWARD
SHARES

 

 

20

%

$

5,800,000

 

 

25.00

%

 

75,000

 

 

21

%

$

6,090,000

 

 

31.25

%

 

93,750

 

 

22

%

$

6,380,000

 

 

37.50

%

 

112,500

 

 

23

%

$

6,670,000

 

 

43.75

%

 

131,250

 

 

24

%

$

6,960,000

 

 

50.00

%

 

150,000

 

 

25

%

$

7,250,000

 

 

56.25

%

 

168,750

 

 

26

%

$

7,540,000

 

 

62.50

%

 

187,500

 

 

27

%

$

7,830,000

 

 

68.75

%

 

206,250

 

 

28

%

$

8,120,000

 

 

75.00

%

 

225,000

 

 

29

%

$

8,410,000

 

 

81.25

%

 

243,750

 

 

30

%

$

8,700,000

 

 

87.50

%

 

262,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

%

$

8,990,000

 

 

93.75

%

 

281,250

 

 

32

%

$

9,280,000

 

 

100.00

%

 

300,000

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL STOCK AWARD

 

 

90,000

 

(Same schedule as above

 

 

 

 

RONA

 

Operating
Income

 

%

 

AWARD
SHARES

 

 

20

%

$

5,800,000

 

 

25.00

%

 

22,500

 

 

21

%

$

6,090,000

 

 

31.25

%

 

28,125

 

 

22

%

$

6,380,000

 

 

37.50

%

 

33,750

 

 

23

%

$

6,670,000

 

 

43.75

%

 

39,375

 

 

24

%

$

6,960,000

 

 

50.00

%

 

45,000

 

 

25

%

$

7,250,000

 

 

56.25

%

 

50,625

 

 

26

%

$

7,540,000

 

 

62.50

%

 

56,250

 

 

27

%

$

7,830,000

 

 

68.75

%

 

61,875

 

 

28

%

$

8,120,000

 

 

75.00

%

 

67,500

 

 

29

%

$

8,410,000

 

 

81.25

%

 

73,125

 

 

30

%

$

8,700,000

 

 

87.50

%

 

78,750

 

 

31

%

$

8,990,000

 

 

93.75

%

 

84,375

 

 

32

%

$

9,280,000

 

 

100.00

%

 

90,000

 

 

 

 

 

 

 

 

 

 

 

 

 

EXAMPLE: 100% Award

 

Year

 

Average Net
Assets

 

Operating
Income

 

%

 

 

2010

 

 

29,000,000

 

$

9,280,000

 

 

32

%

 

2011

 

 

28,000,000

 

$

8,960,000

 

 

32

%

 

2012

 

 

27,000,000

 

$

8,640,000

 

 

32

%

 

2013

 

 

28,000,000

 

$

8,960,000

 

 

32

%

 

2014

 

 

29,000,000

 

$

9,280,000

 

 

32

%

 

 

 

 

141,000,000

 

$

45,120,000

 

 

 

 

5yr AVG

 

 

28,200,000

 

$

9,024,000

 

 

32

%

 

 

 

 

 

 

 

 

 

 

 

 

AWARD

 

 

300,000

 shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXAMPLE: short of 32% RONA

 

Year

 

Average Net
Assets

 

Operating
Income

 

%

 

 

2010

 

 

29,000,000

 

$

9,280,000

 

 

32

%

 

2011

 

 

28,000,000

 

$

8,000,000

 

 

29

%

 

2012

 

 

27,000,000

 

$

5,000,000

 

 

19

%

 

2013

 

 

28,000,000

 

$

10,000,000

 

 

36

%

 

2014

 

 

29,000,000

 

$

10,000,000

 

 

34

%

 

 

 

 

141,000,000

 

$

42,280,000

 

 

 

 

5yr AVG

 

 

28,200,000

 

$

8,456,000

 

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

AWARD

 

 

262,500

 shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXAMPLE: over of 32% RONA

 

 

 

 

 

 

 

 

 

 

 

 

Year

 

Average Net
Assets

 

Operating
Income

 

%

 

 

2010

 

 

29,000,000

 

$

12,000,000

 

 

41

%

 

2011

 

 

28,000,000

 

$

14,000,000

 

 

50

%

 

2012

 

 

27,000,000

 

$

5,000,000

 

 

19

%

 

2013

 

 

28,000,000

 

$

6,000,000

 

 

21

%

 

2014

 

 

29,000,000

 

$

12,000,000

 

 

41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

141,000,000

 

$

49,000,000

 

 

 

 

5yr AVG

 

 

28,200,000

 

$

9,800,000

 

 

35

%

 

 

 

 

 

 

 

 

 

 

 

 

AWARD

 

 

300,000

 shares

 

 

 

 

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