Document:

Exhibit 10.55 Renewed Term Loan Note

Exhibit 10.55
RENEWED TERM LOAN NOTE
$5,045,000                                                         July 30, 2010
                   Renewed April 1, 2013 
                            (“Effective Date”)

For value received, the undersigned, INDUSTRIAL SERVICES OF AMERICA, INC., a Florida corporation ("ISA"), ISA INDIANA, INC., an Indiana corporation (“ISA Indiana”), and each of the other Persons that become a Borrower under the Credit Agreement after the Closing Date (such Persons, together with ISA and ISA Indiana, are each a “Borrower” and, collectively, “Borrowers”), hereby jointly and severally promise to pay to the order of FIFTH THIRD BANK, an Ohio banking corporation (“Lender”), the principal sum of FIVE MILLION FORTY-FIVE THOUSAND AND 00/100 DOLLARS ($5,045,000), on the dates and in the principal amounts provided in the Credit Agreement dated as of July 30, 2010, as amended by the First Amendment to Credit Agreement dated as of April 14, 2011, the Second Amendment to Credit Agreement dated as of November 16, 2011, the Third Amendment to Credit Agreement dated as of March 2, 2012, the Fourth Amendment to Credit Agreement dated as of August 13, 2012, the Fifth Amendment to Credit Agreement dated as of November 14, 2012, and the Sixth Amendment to Credit Agreement dated of even date herewith (as the same may be hereafter amended, supplemented or restated from time to time, the “Credit Agreement”) by and among Borrowers, the Persons party thereto as “Lenders” (including, without limitation, Lender), and Fifth Third Bank, as Agent and LC Issuer, in lawful money of the United States of America and in immediately available funds, and to pay interest on the unpaid principal balance of this Term Loan Note (this “Note”), in like money and funds, for the period commencing on the date of this Note until such Indebtedness evidenced by this Note shall be paid in full, at the rates per annum and on the dates and at the offices provided in the Credit Agreement. The entire unpaid principal balance of this Note, together with all accrued but unpaid interest, shall, if not sooner paid or required to be paid pursuant to the Credit Agreement, be due and payable on April 30, 2014.

This Note is one of the Term Loan Notes referred to in the Credit Agreement and is entitled to the benefits and security, and is subject to the terms and conditions, of the Credit Agreement, including, without limitation, acceleration upon the terms provided therein and in the other Loan Documents. All capitalized terms used herein which are defined in the Credit Agreement and not otherwise defined herein shall have the meanings given in the Credit Agreement.

The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for voluntary and mandatory prepayments of Loans upon the terms and conditions specified therein. This Note is subject to voluntary prepayment, in full or in part, in accordance with, and subject to the terms of, the Credit Agreement.

If, at any time, the rate of interest contracted for, and computed in the manner provided, in the Credit Agreement (“Applicable Rate”), together with all fees and charges as provided for in the Credit Agreement or in any other Loan Document (collectively, the “Charges”), which are treated as interest under applicable law, exceeds the maximum lawful rate (the “Maximum Rate”) allowed under applicable law, it is agreed that such contracting for, charging or receiving of such excess amount was an accidental and bona fide error and the provisions of this paragraph will govern and control. The rate of interest payable under the Credit Agreement and this Note, together with all Charges, shall be limited to the Maximum Rate; provided, however, that any subsequent reduction in the Daily LIBOR-Based Rate or the LIBOR Tranche-Based Rate (or in the interest rate equal to the Prime Rate plus the Applicable Prime Rate Margin in the event LIBOR Rate Loans are no longer permitted or available under the Credit Agreement) shall not reduce the Applicable Rate below the Maximum Rate until the total amount of interest earned under the Credit Agreement and this Note, together with all Charges, equals the total amount of interest which would have accrued at the Applicable Rate if the Applicable Rate had at all times been in effect. If any payment hereunder, for any reason, results in Borrowers having paid interest in excess of that permitted by applicable law, then all excess amounts theretofore collected by Lender shall be credited on the principal balance of the Obligations (or, if all sums owing hereunder have been paid in full, refunded to Borrowers), and the amounts thereafter collectible hereunder shall immediately be deemed reduced, without the necessity of the execution of any new document, so as to comply with applicable law and permit the recovery of the fullest amount otherwise called for hereunder.

Borrowers hereby agree to pay all costs of collection, including, without limitation, Attorneys' Fees, if this Note is not paid when due, whether or not legal proceedings are commenced.
All of the obligations of Borrowers hereunder are joint, several and primary. No Borrower shall be, or be deemed to be, an accommodation party with respect to this Note.
Presentment or other demand for payment, notice of dishonor and protest are expressly waived.
This Note is issued, not as a refinancing or refunding of or payment toward, but as a continuation of, the Obligations of Borrowers to Lender pursuant to that certain Term Loan Note dated as of July 30, 2010 in the principal amount of $8,800,000.00 (the “Prior Note”), together with any and all additional Term Loans incurred under this Note. Accordingly, this Note shall not be construed as a novation or extinguishment of the Obligations arising under the Prior Note, and its issuance shall not affect the priority of any Lien granted in connection with the Prior Note. Interest accrued under the Prior Note prior to the Effective Date remains accrued and unpaid under this Note and does not constitute any part of the principal amount of the Indebtedness evidenced hereby. All Revolving Loans created or existing under, pursuant to, as a result of, or arising out of, the Prior Note shall, together with any and all additional Revolving Loans incurred under this Note, continue in existence under this Note, which Obligations Borrowers acknowledge, reaffirm, and confirm to Lender. The Indebtedness evidenced by this Note will continue to be secured by all of the collateral and other security granted to Lender under the Prior Note and the other Loan Documents.
THIS NOTE HAS BEEN DELIVERED AND ACCEPTED AT AND SHALL BE DEEMED TO HAVE BEEN MADE AT CINCINNATI, OHIO. THIS NOTE SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF OHIO (WITHOUT REFERENCE TO OHIO CONFLICTS OF LAW PRINCIPLES).
AS A SPECIFICALLY BARGAINED INDUCEMENT FOR AGENT, LC ISSUER AND LENDERS TO ENTER INTO THE CREDIT AGREEMENT AND EXTEND CREDIT TO BORROWERS, BORROWERS, AGENT, LC ISSUER AND LENDERS AGREE THAT ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS NOTE, ITS VALIDITY OR PERFORMANCE, AND WITHOUT LIMITATION ON THE ABILITY OF AGENT, LC ISSUER OR ANY LENDER, OR THEIR RESPECTIVE SUCCESSORS AND ASSIGNS, TO EXERCISE ALL RIGHTS AS TO THE LOAN COLLATERAL AND TO INITIATE AND PROSECUTE IN ANY APPLICABLE JURISDICTION ACTIONS RELATED TO REPAYMENT OF THE OBLIGATIONS, SHALL BE INITIATED AND PROSECUTED AS TO BORROWERS, AGENT, LC ISSUER AND LENDERS AND THEIR SUCCESSORS AND ASSIGNS AT CINCINNATI, OHIO. AGENT, LC ISSUER, LENDERS AND BORROWERS EACH CONSENT TO AND SUBMIT TO THE EXERCISE OF JURISDICTION OVER THEIR RESPECTIVE PERSONS BY ANY COURT SITUATED AT CINCINNATI, OHIO HAVING JURISDICTION OVER THE SUBJECT MATTER, AND EACH CONSENTS THAT ALL SERVICE OF PROCESS BE MADE BY CERTIFIED MAIL DIRECTED TO BORROWERS, AGENT, LC ISSUER AND LENDERS AT THEIR RESPECTIVE ADDRESSES SET FORTH IN SECTION 12.2 OF THE CREDIT AGREEMENT OR AS OTHERWISE PROVIDED UNDER THE LAWS OF THE STATE OF OHIO. EACH BORROWER WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER, AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.
IN RECOGNITION OF THE HIGHER COSTS AND DELAY WHICH MAY RESULT FROM A JURY TRIAL, THE PARTIES HERETO WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (a) ARISING HEREUNDER OR IN CONNECTION WITH THE LOAN DOCUMENTS, OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY FURTHER WAIVES ANY RIGHT TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY HERETO MAY 

FILE A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
Each Borrower hereby acknowledges and agrees as follows:

a.     Each and every reference to and any and all representations, warranties, covenants and undertakings of, Borrowers herein, including but not limited to the Events of Default shall be deemed to apply to each of the undersigned, jointly and separately.

b.    The obligations and liabilities of each of the undersigned Borrowers under, and all representations, warranties and covenants in, this Note and the Loan Documents shall be direct and primary and joint and several in all respects whatsoever.

c.    Bank may deal with any undersigned Borrower as if it were the sole obligor, without impairing in any way the liability of any other obligor. Without limiting the generality of that right, Bank may in particular release, impair, or fail to perfect an interest in any collateral of any undersigned Borrower, waive defaults by any of them, or extend or compromise the liability of any of them without the consent of the other undersigned obligors.

d.     Each of the undersigned Borrowers represents that it has carefully considered the alternatives to and the legal consequences of incurring joint and several liability under this Note and has determined that by such arrangement it is able to obtain financing on terms more favorable than otherwise, and that under a joint and several facility each will realize substantial interest savings over alternative financing arrangements.

e.    Bank may bring a separate action or actions under this Note against each or any of the undersigned Borrowers, whether such action is brought against any other Borrower, or any other Borrower is not joined therein. Each of the undersigned Borrowers agrees that any release which may be given to any other Borrower shall not release any other Borrower from its obligations hereunder. Each of the undersigned Borrowers hereby waives any right to assert against Bank any defense (legal or equitable), set off, counterclaim, or claims which any of them individually may now or any time hereafter have against any other Borrower.

f.     Any and all present and future debt and other obligations of any of the undersigned Borrowers to another Borrower is hereby subordinated to the full payment and performance of all amounts due to Bank, whether under this agreement or otherwise.

g.    Each of the undersigned Borrowers is presently informed as to the financial condition of the other Borrowers and all other circumstances of each other relating to this Note and the other Loan Documents which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the amounts due hereunder. Each of the undersigned Borrowers hereby covenants that it will continue to keep itself informed as to the financial condition of the other Borrowers, the status of the other Borrowers, and all circumstances which bear upon the risk of nonpayment. Absent a written request from any of the undersigned Borrowers to Bank for information, each of the undersigned Borrowers hereby waives any and all rights it may have to require Bank to disclose to such Borrower any information which Bank may now or hereafter acquire concerning the condition or circumstances of the other Borrowers.

h.    Each of the undersigned Borrowers waives all rights to notices of default, existence, creation, or incurring of new or additional indebtedness, and all other notices of formalities to which each such Borrower, may as joint and several Borrower, hereunder be entitled.

i.    The liability of any of the undersigned Borrowers hereunder shall survive discharge or compromise of any obligation of any other Borrower in bankruptcy or otherwise.

j.    Each of the undersigned Borrowers hereby waives all defenses, counterclaims and off-sets of any kind or nature, whether legal or equitable, that may arise: (i) directly or indirectly from the present or future lack of validity, binding effect or enforceability of this Note, any other Loan Documents or any other document or instrument evidencing, 

securing or otherwise relating to the Obligations, (ii) from Bank's impairment of any collateral, including the failure to record or perfect the Bank's interest in any collateral, or (iii) by reason of any claim or defense based upon an election of remedies by Bank in the event such election may, in any manner, impair, affect, reduce, release, destroy or extinguish any right of contribution or reimbursement of any Borrower, or any other rights of any undersigned Borrower to proceed against any other Borrower, guarantor, or against any other person or any collateral

In Witness Whereof, Borrowers, intending to be legally bound, have caused this Note to be executed and delivered by its duly authorized officer as of the Effective Date and at the place set forth above.
	
		
	 
	INDUSTRIAL SERVICES OF AMERICA, INC.

	 
	a Florida corporation

	 
	 

	By:
	  /s/ Orson Oliver

	 
	Orson Oliver as Chairman of the Board

	 
	 

	 
	ISA INDIANA, INC.

	 
	an Indiana corporation

	 
	 

	By:
	  /s/ Orson Oliver

	 
	Orson Oliver as Chairman of the BoardExhibit 10.57 - Form of Stock Option Agreement

Exhibit 10.57

THIS OPTION HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE ENCUMBERED, PLEDGED, HYPOTHECATED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THIS OPTION UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM AND SUBSTANCE TO THE COMPANY AND ITS COUNSEL TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SAID ACT.
____________________________

INDUSTRIAL SERVICES OF AMERICA, INC.
2009 LONG TERM INCENTIVE PLAN

NON-INCENTIVE STOCK OPTION
(NON-TRANSFERABLE)

OPTION CERTIFICATE

Industrial Services of America, Inc., a Florida corporation ("Company"), pursuant to action of the Compensation Committee of the Board of Directors and in accordance with the Industrial Services of America, Inc. 2009 Long Term Incentive Plan ("Plan"), hereby grants a Non-Incentive Stock Option ("Option") to __________  ("Director") to purchase from the Company ________ shares of Stock, at an Option Price of ____  per share (the "Option Price"), which Option is subject to all of the terms and conditions set forth in this Option Certificate and in the Plan.  This Option is granted effective as of __/__/__ ("Option Grant Date").

INDUSTRIAL SERVICES OF AMERICA, INC.

By:                            

Title:                            

TERMS AND CONDITIONS

§1.    Plan.  This Option is subject to all the terms and conditions set forth in the Plan and this Option Certificate, and all of the terms defined in the Plan shall have the same meaning herein when such terms start with a capital letter.  This Option is intended not to satisfy the requirements of § 422 of the Code.  A copy of the Plan will be made available to Director upon written request to the Chief Financial Officer of the Company.  

§ 2.    Order of Exercise.  The exercise of this Option shall not be affected by the exercise or non-exercise of any other option (without regard to whether such option constitutes an "incentive stock option" within the meaning of § 422 of the Code).

§ 3.    Date Exercisable.  This Option shall become exercisable in accordance with the following schedule on any normal business day of the Company occurring on or after the first date set forth below and before the date this Option expires under § 4.  

Number of Shares for which   
           On or After            Option First Becomes Exercisable

        
The maximum number of shares of Stock which may be purchased by exercise of this Option on any such day shall equal the excess, if any, of (a) the total number of shares of Stock subject to this Option on the Option Grant Date, as adjusted in accordance with § 4.2(e) of the Plan, and with respect to which this Option is vested, over (b) the number of shares of Stock which have previously been purchased by exercise of this Option, as adjusted in a manner consistent with § 4.2(e) of the Plan.

If at the time Director intends to exercise any rights under this Option, Director is an officer or is filing ownership reports with the Securities and Exchange Commission under Section 16(a) of the Exchange Act then Director should consult with the Company before Director exercises such rights because there may be additional restrictions upon the exercise of such rights.

§ 4.    Life of Option.  The Option shall expire when exercised in full; provided, however, the Option (to the extent not exercised in full) also shall expire immediately and automatically on the earlier of (a) the date which is the fifth anniversary of the Option Grant Date, or (b) the date the Director's service on the Board terminates for Cause.  A termination of Director's service for Cause shall exist for purposes of this § 4 only upon the occurrence of one or more of the following:  (i) Director commits any felony or any act of fraud, misappropriation or embezzlement, (ii) Director engages in conduct or activities damaging to the property, business or reputation of the Company or any affiliate of the Company, as determined by the Committee in good faith, (iii) Director engages in any act or omission involving malfeasance or negligence in the performance of Director's duties to the Company to the detriment of the Company or any affiliate of the Company, as determined by the Committee in good faith, (iv) Director fails to comply in any material respect with any applicable civil or criminal law, any written rules of ethical corporate conduct for directors of the Company or any affiliate of the Company or the terms of any policies or directives of the Board, as determined by the Committee in good faith, or (v) Director violates Director's fiduciary obligation to the Company or any affiliate of the Company.

§ 5.    Method of Exercise of Option.  Director may (subject to § 3, § 4, § 11, § 12, 
§ 13 and § 16) exercise this Option in whole or in part (before the date this Option expires) on any normal business day of the Company by (a) delivering the Option Certificate to the Company at its principal place 

of business together with written notice of the exercise of this Option and (b) simultaneously paying to the Company the Option Price.  The payment of such Option Price shall be made either in cash or by check acceptable to the Company.

§ 6.    Delivery.  The Company's delivery of Stock pursuant to the exercise of this Option (as described in § 5) shall discharge the Company of all of its duties and responsibilities with respect to this Option.

§ 7    Adjustment.  The Committee shall have the right to make such adjustments to this Option as described under § 4.2(e) of the Plan.

§ 8.    Nontransferable.  This Option shall not be transferable by Director except by his will or by the laws of descent and distribution, and rights granted under this Option shall be exercisable during Director's lifetime only by Director.  If this Option is exercisable after the death of Director, the person or persons to whom this Option is transferred by will or by the laws of descent and distribution shall be treated as the Director under this Option Certificate.

§ 9.    Termination of Service.  Neither the Plan, this Option nor any related material shall give Director the right to continue to serve on the Board or shall adversely affect the right of the Company to terminate Director's service on the Board with or without cause at any time.

§ 10. Shareholder Status.  Director shall have no rights as a shareholder with respect to any shares of Stock under this Option until such shares have been duly issued and delivered to Director, and no adjustment shall be made for dividends of any kind or description whatsoever or for distributions of other rights of any kind or description whatsoever respecting such Stock except as expressly set forth in the Plan.

§ 11. Other Laws.  The Company shall have the right to refuse to issue or transfer any Stock under this Option if the Company acting in its absolute discretion determines that the issuance or transfer of such Stock might violate any applicable law or regulation, and any payment tendered in such event to exercise this Option shall be promptly refunded to Director.

§ 12. Securities Registration.  Director may be requested by the Company to hold any shares of Stock received upon the exercise of this Option for personal investment and not for purposes of resale or distribution to the public and Director shall, if so requested by the Company, deliver a certified statement to that effect to the Company as a condition to the transfer of such Stock to Director.  Director may be requested by the Company to deliver a certified statement to the Company that he or she will not sell or offer to sell any shares of Stock received upon the exercise of this Option unless a registration statement shall be in effect with respect to such Stock under the Securities Act of 1933, as amended, and the applicable state securities laws, or unless he or she shall furnish to the Company an opinion, in form and substance satisfactory to the Company, of legal counsel acceptable to the Company, that such registration is not required.  Certificates representing shares of Stock received upon the exercise of this Option may bear an appropriate restrictive legend reflecting the foregoing.

§ 13. Other Conditions.  Director shall (as a condition to the exercise of this Option) enter into any agreement or make any representations required by the Company related to the Stock to be acquired pursuant to the exercise of this Option, including any agreement which restricts the transfer of Stock acquired pursuant to the exercise of this Option and provides for the repurchase of such Stock by the Company under certain circumstances.

§ 14. Tax Withholding.  The Company shall have the right to withhold or retain from any payment to Director (whether or not such payment is made pursuant to this Option) or take such other action as is permissible under the Plan which the Company deems necessary or appropriate to satisfy any income or other tax withholding requirements as a result of the exercise of this Option.

§ 15. Governing Law.  The Plan and this Option shall be governed by the laws of the State of Florida.

§ 16. Modification, Amendment, and Cancellation.  The Company shall have the right to modify, amend, or cancel this Option in accordance with the terms of the Plan.

§ 17. Binding Effect.  This Option shall be binding upon the Company and Director and their respective heirs, executors, administrators and successors.

OPTION EXERCISE FORM

(To be executed by Director to
exercise the rights to purchase Stock
evidenced by the foregoing Option)

TO:    INDUSTRIAL SERVICES OF AMERICA, INC.

The undersigned hereby exercises the right to purchase _______________ shares of Stock covered by the attached Option in accordance with the terms and conditions thereof, and herewith makes payment of the Option Price for such shares in full.

                            
Signature of Director

                            

                                                    
                            
                                                    
Address

-    -         
Social Security Number

Dated: _________________

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