TENTH AMENDED AND RESTATED REVOLVING NOTE

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Exhibit 10.19

TENTH AMENDED AND RESTATED REVOLVING NOTE

         FOR VALUE RECEIVED , the undersigned, Appliance Recycling Centers of America, Inc. , a Minnesota corporation, whose principal place of business is located at 7400 Excelsior Boulevard, Minneapolis, MN 55426 ("Borrower") promises to pay to the order of SPECTRUM COMMERCIAL SERVICES COMPANY, a Minnesota corporation (the "Lender") at its office in Bloomington, Minnesota, or at such other place as any present or future holder of this Note may designate from time to time, the principal sum of (i) Eight Million and 00/100 Dollars ($8,000,000.00), or (ii) the aggregate unpaid principal amount of all advances and/or extensions of credit made by the Lender to Borrower pursuant to this Note as shown in the records of any present or future holder of this Note, whichever is less, plus interest thereon from the date of each advance in whole or in part included in such amount until this Note is fully paid. Interest shall be computed on the basis of the actual number of days elapsed and a 360-day year, at an annual rate equal to 2.95% per annum in excess of the Prime Rate (as defined below) (the "Initial Rate"), and that shall change when and as said Prime Rate shall change; provided, however, that (i) in no event shall the interest rate in effect hereunder at any time be less than 7.5% per annum; and (ii) interest payable hereunder with respect to each calendar month shall not be less than $37,500.00 regardless of the amount of loans, advances or other credit extensions that actually may have been outstanding during the month. Interest is due and payable on the first day of each calendar month and at maturity. The term "Prime Rate" shall have the meaning defined in the General Credit and Security Agreement between Borrower and Lender, as may be amended from time to time (the "Agreement"). Notwithstanding the foregoing, after an Event of Default, this Note shall bear interest until fully paid at five percent (5%) per annum in excess of the rate otherwise then in effect, which rate shall continue to vary based on further changes in the Prime Rate; provided, however, that after an Event of Default, (i) in no event shall the interest rate in effect hereunder at any time be less than 12.5% per annum; and (ii) interest payable hereunder with respect to each calendar month shall not be less than $62,500 regardless of the amount of loans, advances or other credit extensions that actually may have been outstanding during the month. Borrower also shall pay the holder of this Note a late fee equal to 10% of any payment under this Note that is more than 10 days past due.

        In the event Borrower earns a certain net profit as described in the Agreement, then the Initial Rate may be reduced to two and 45/100ths percent (2.45%) in excess of the Prime Rate (the "Adjusted Rate") all as described in the Agreement. Further, in the event Borrower opts to invoke the "Interest Discount" (as defined in the Agreement), the rate may also be reduced. [See the Agreement for the circumstances and requirements regarding possible interest rate reductions, all of which are incorporated herein by reference].

        All interest, principal, and any other amounts owing hereunder are due on December 31, 2007 (or as may be amended or extended on a year to year basis pursuant to the terms of the Agreement) or earlier UPON DEMAND by Lender or any holder hereof, and Lender specifically reserves the absolute right to demand payment of all such amounts at any time, with or without advance notice, for any reason or no reason whatsoever.

        All or any part of the unpaid balance of this Note may be prepaid upon sixty days prior written notice, provided, however, that if this Note is fully pre-paid prior to December 31, 2007 (or if the due date is amended or extended, the then current maturity date hereof), then there may be a prepayment charge as described in the Agreement. At the option of the then holder of this Note, any payment

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under this Note may be applied first to the payment of other charges, fees and expenses under this Note and any other agreement or writing in connection with this Note, second to the payment of interest accrued through the date of payment, "and third to the payment of principal. Amounts may be advanced and readvanced under this