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Exhibit 10.20


SEVENTEENTH AMENDMENT TO
GENERAL CREDIT AND SECURITY AGREEMENT
(Note: A Fifteenth Amendment does not exist)

        THIS AGREEMENT, dated and effective as of January 12, 2005, between SPECTRUM Commercial Services Company, a Minnesota Corporation, having its mailing address and principal place of business at Two Appletree Square, Suite 415, Bloomington, Minnesota 55435 (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 7400 Excelsior Boulevard, Minneapolis, MN 55426, (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 "Eligible Whirlpool Inventory" under Paragraph 2 is hereby deleted and replaced with the following:
2.
The following definition is added to Paragraph 2:
3.
Paragraph 3 is hereby deleted and replaced with the following:

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4.
Paragraph 4(a) is hereby deleted and replaced with the following:

2


5.
Paragraph 4(b) is hereby deleted and replaced with the following:
6.
New Paragraph 4B is hereby added as follows:
7.
Paragraph 5 entitled "Interest" is hereby deleted and replaced with the following:

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8.
Paragraph 6 entitled "Set-Off" etc. is hereby deleted and replaced with the following:

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9.
Paragraph 8(a) is hereby deleted and replaced with the following:
10.
Paragraph 17(a)(vi) is hereby deleted and replaced with the following new paragraphs 17(a)(vi), 17(a)(vii) and 17(a)(viii);

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11.
Paragraph 17(b) is hereby deleted and replaced with the following:
12.
Effective as of January 1, 2005, Paragraph 17(i) is hereby deleted and replaced with the following:
13.
Paragraph 17(1) is hereby deleted and replaced with the following:
14.
Paragraph 17(m) is hereby deleted and replaced with the following:
15.
Paragraph 17(o) is hereby deleted and replaced with the following:
16.
Paragraph 18(b) is hereby deleted and replaced with the following:
17.
Paragraph 23 is hereby deleted and replaced with the following:

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        IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

SPECTRUM COMMERCIAL SERVICES COMPANY   APPLIANCE RECYCLING CENTERS OF AMERICA, INC.

By

/s/  
STEVEN LOWENTHAL      

 

By

/s/  
EDWARD R. CAMERON      
Steven I. Lowenthal, Co-CEO   Its Pres.

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REAFFIRMATION
Of Edward R. Cameron

        The undersigned, Edward R. "Jack" Cameron, hereby reaffirms all of the terms of the Support Agreement issued by him in favor of SPECTRUM Commercial Services Company (including its participants and assigns) and dated as of December 29, 2004, and acknowledges that such agreement is in full force and effect according to its terms. The undersigned understands and acknowledges that this Reaffirmation is required by SPECTRUM Commercial Services Company as a condition to the execution of the Seventeenth Amendment to the General Credit and Security Agreement between Appliance Recycling Centers of America, Inc. and SPECTRUM Commercial Services Company.

Dated as of: January 12, 2005   /s/  EDWARD R. CAMERON      
Edward R. Cameron

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SEVENTEENTH AMENDMENT TO GENERAL CREDIT AND SECURITY AGREEMENT (Note: A Fifteenth Amendment does not exist)
REAFFIRMATION Of Edward R. Cameron