THIRTEENTH AMENDMENT TO
GENERAL CREDIT AND SECURITY AGREEMENT
THIS AGREEMENT, dated and effective as of January 23, 2003, between
SPECTRUM Commercial Services Company, a Minnesota Corporation, having its
mailing address and principal place of business at Xxx Xxxxxxxxx Xxxxxx, Xxxxx
000, Xxxxxxxxxxx, Xxxxxxxxx 00000 (herein called "Lender" or "SCS"), and
Appliance Recycling Centers of America, Inc., a Minnesota corporation, having
the mailing address and principal place of business at 0000 Xxxxxxxxx Xxxxxxxxx,
Xxxxxxxxxxx, XX 00000, (herein called "Borrower"), amends that certain General
Credit and Security Agreement dated August 30, 1996, ("Credit Agreement") as
amended. Where the provisions of this Agreement conflict with the Credit
Agreement, the intent of this Agreement shall control.
1. The definition of "Borrowing Base" appearing in Paragraph 2 is amended in its
entirety to read as follows:
"Borrowing Base" shall mean the sum of (i) Eighty percent
(80%) of the net amount of Eligible Receivables or such
greater or lesser percentage as Lender, in its sole
discretion, shall deem appropriate, plus (ii) the lesser of
(x) Two Hundred Fifty Thousand and No/100ths Dollars
($250,000) or (y) Twenty Five percent (25%) of the net amount
of Eligible Inventory (excluding Eligible Whirlpool Inventory
and Eligible Scratch and Dent Inventory), or such greater or
lesser dollars and/or percentage as Lender, in its sole
discretion, shall deem appropriate, plus (iii) the lesser of
(x) Three Million and No/100ths Dollars ($3,000,000) or (y)
Fifty percent (50%) of the net amount of Eligible Scratch and
Dent Inventory, or such greater or lesser dollars and/or
percentage as Lender, in its sole discretion, shall deem
appropriate, plus (iv) the lesser of (x) Four Million and
No/100ths Dollars ($4,000,000) or (y) Eighty percent (80%) of
the net amount of Eligible Whirlpool Inventory, or such
greater or lesser dollars and/or percentage as Lender, in its
sole discretion, shall deem appropriate, provided however,
that notwithstanding the dollar limits contained in
subsections (ii) - (iv) above, that the total aggregate amount
available under subsections (ii) - (iv) shall in no event
exceed Six Million and No/100ths Dollars ($6,000,000), or such
greater or lesser dollars as Lender, in its sole discretion,
shall deem appropriate.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.
SPECTRUM COMMERCIAL SERVICES APPLIANCE RECYCLING CENTERS
COMPANY OF AMERICA, INC.
By /s/Xxxxxx X. Xxxxxxxxx By /s/Xxxxxx X. Xxxxxxx
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Xxxxxx X. Xxxxxxxxx, Principal
Its President
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