Exhibit 10.4

REAFFIRMATION AND AMENDMENT OF GUARANTY AND
REAFFIRMATION OF SECURITY

In
satisfaction of the condition set forth in the First Amendment to Credit
Agreement between Agent, LC Issuer, the Lenders and Borrowers (the Amendment),
the undersigned (Guarantors) hereby: (i) consent to the Amendment and
to the transactions contemplated therein, (ii) ratify and reaffirm their
Guaranty dated as of July 30, 2010 (the Guaranty), (iii) acknowledge
and agree that Guarantors are not released from their obligations under the
Guaranty by reason of the Amendment, the Amended and Restated Revolving Loan
Note or the transactions contemplated thereby and that the obligations of
Guarantors under the Guaranty extend to the Credit Agreement and the other Loan
Documents, as amended, or as amended and restated, in connection with the
Amendment, and (iv) confirm that the Amendment shall not in any manner (A)
constitute the refinancing, refunding, payment or extinguishment of the
indebtedness evidenced by the existing Loan Documents and secured by their
Security Agreement dated as of July 30, 2010 (the Security Agreement);
(B) be deemed to evidence a novation of the outstanding balance of the
indebtedness secured by the Security Agreement; or (C) affect, replace, impair,
or extinguish the creation, attachment, perfection or priority of the Liens on
the Loan Collateral granted pursuant to the Security Agreement or any other
Security Document evidencing, governing or creating a Lien on the Loan
Collateral. Guarantors further ratify and reaffirm any and all grants of Liens
to Agent on the Loan Collateral to secure Guarantors obligations owing under
the Guaranty, and Guarantors acknowledge and confirm that the grants of the
Liens to Agent on Guarantors Loan Collateral: (1) represent continuing Liens
on all such Loan Collateral, (2) secure all of the Guaranteed Obligations (as
defined in the Guaranty), and (3) represent valid, first and best Liens on all
such Loan Collateral, subject to the Permitted Liens.

The
undersigned agree that the first sentence of Section 16.9 of the
Guaranty is hereby amended in its entirety by substituting the following in its
stead:

| |                                                                                    | 
| | ---------------------------------------------------------------------------------- | 
| | The maximum
 aggregate liability of Guarantors under this Guaranty is $52,960,000. | 

Except as amended hereby, all of the provisions of the Guaranty are
ratified and confirmed and remain in full force and effect.

This
Reaffirmation and Amendment of Guaranty and Reaffirmation of Security shall not
be construed, by implication or otherwise, as imposing any requirement that
Agent notify or seek the consent of Guarantors relative to any past or future
extension of credit, or modification, extension or other action with respect
thereto, in order for any such extension of credit or modification, extension
or other action with respect thereto to be subject to the Guaranty or the
Security Agreement, it being expressly acknowledged and reaffirmed that
Guarantors have under the Guaranty and the Security Agreement consented, among
others things, to modifications, extensions and other actions with respect
thereto without any notice thereof or further consent

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thereto. All references in any of the Loan Documents to the Guaranty
will be deemed to be references to the Guaranty as amended by this Reaffirmation
and Amendment of Guaranty and Reaffirmation of Security. This Reaffirmation and
Amendment of Guaranty and Reaffirmation of Security may be signed by facsimile
signatures or other electronic delivery of an image file reflecting the
execution hereof, and if so signed, (i) may be relied on by each party and
Fifth Third Bank as if this Reaffirmation and Amendment of Guaranty and
Reaffirmation of Security were a manually signed original and (ii) will be
binding on each party for all purposes. All capitalized terms used in this
Reaffirmation and Amendment of Guaranty and Reaffirmation of Security and not
otherwise defined herein shall have the meanings ascribed thereto in the
Amendment.

[Signature Page Follows]

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IN WITNESS
WHEREOF, the undersigned have executed this Reaffirmation and
Amendment of Guaranty and Reaffirmation of Security as of the Effective Date.

| |                                                          | 
| | -------------------------------------------------------- | 
| | ISA Indiana Real Estate, LLC                             | 
| | ISA Logistics LLC                                        | 
| | ISA Real Estate, LLC                                     | 
| | 7021 Grade Lane LLC                                      | 
| | 7124 Grade Lane LLC                                      | 
| | 7200 Grade Lane LLC                                      | 
| | Computerized
 Waste Systems, LLC                         | 
| | ISA
 Recycling LLC                                       | 
| | Waste
 Equipment Sales & Service Co., LLC                | 
| |                                                          | 
| | By:   Industrial
 Services of America, Inc., sole member | 

| |     |                                          
| | --- | -----------------------------------------
| | By: | /s/
 Alan Schroering                     
| |     |                                          
| |     | Alan
 Schroering, Chief Financial Officer

Accepted as of the Effective Date.

FIFTH THIRD BANK, as Agent

|    |                                     | 
|--- | ----------------------------------- | 
|By: | /s/ Donald K. Mitchell              | 
|    |                                     | 
|    | Donald K.
 Mitchell, Vice President | 

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