Document:

EX-10.3

EXHIBIT 10.3

REGISTRATION RIGHTS AGREEMENT

REGISTRATION RIGHTS AGREEMENT dated as of the 6th day of March, 2009 (this “Agreement”) by and
between CONVERTED ORGANICS, INC., a Delaware corporation (the “Corporation”), and PROFESSIONAL
OFFSHORE OPPORTUNITY FUND, LTD. (the “Investor”).

W I T N E S S E T H :

WHEREAS, the Investor owns or has the right to purchase or otherwise acquire shares of
the Common Stock (as hereinafter defined) of the Corporation; and

WHEREAS, the Corporation and the Investor deem it to be in their respective best interest to
set forth the rights of the Investor in connection with the registration of certain shares of
Common Stock under applicable securities laws; and

WHEREAS, the execution and delivery of this Agreement is a condition to the Securities
Purchase Agreement entered into by the Investor and the Corporation on the date hereof;

NOW, THEREFORE, in consideration of the premises and mutual covenants and obligations
hereinafter set forth, the Corporation and the Investor hereby agree as follows:

Section 1. Definitions.

As used in this Agreement the following terms shall have the following meanings:1

(a) “Class B Warrant Market Value” means the average closing bid price of the Class B Warrant
for the period which the Corporation has failed to comply with this Registration Rights Agreement.

(b) “Closing Date” means March 2, 2009, or such other date when the Securities Purchase
Agreement and other Transaction Documents were executed by the Corporation and the Investor.

(c) “Commission” means the Securities and Exchange Commission or any other Federal Agency at
the time administering the Securities Act.

(d) “Common Stock” means the common stock, par value $0.0001, of the Corporation.

(e) “Convertible Note” means the Convertible Note entered into between the Corporation and
Professional Offshore Opportunity Fund, Ltd., and dated the date hereof.

(f) “Exchange Act” means the Securities Exchange Act of 1934 or any successor Federal statute,
and the rules and regulations of the Commission promulgated thereunder, all as the same shall be in
effect from time to time.

(g) “Investor” means Professional Offshore Opportunity Fund, Ltd., and includes any successor
to, or assignee or transferee of, any such person who or which agrees in writing to be treated as
an Investor hereunder and to be bound by the terms and comply with all applicable provisions
hereof.

(h) “Other Shares” means at any time those shares of Common Stock which do not constitute
Primary Shares or Registrable Securities.

(i) “Primary Shares” means at any time the authorized but unissued shares of Common Stock held
by the Corporation in its treasury.

(j) “Registrable Securities” means (i) all shares of Common Stock issuable upon conversion in
full of the Convertible Note issued to the Investor upon Stockholder Approval (the “Conversion
Shares”); (ii) all shares of Common Stock issuable upon exercise of Warrants issued to the Investor
as of the date hereof (the “Warrant Shares”), (iii) the Warrants and (iv) any securities issued or
issuable upon any future conversion, stock split, dividend or other distribution, recapitalization
or similar event with respect to the foregoing.

(k) “Registration Statement” means any registration statement of the Corporation relating to
the registration for resale of Registrable Securities (in an amount permissible under the Rule 415
Interpretive Position) that is filed pursuant to the provisions of this Agreement.

(l) “Rule 144” means Rule 144 promulgated under the Securities Act or any successor rule
thereto.

(m) “Securities Act” means the Securities Act of 1933 or any successor Federal statute, and
the rules and regulations of the Commission thereunder, all as the same shall be in effect from
time to time.

(n) “Securities Purchase Agreement” shall have the meaning set forth in the Recitals.

(o) “Warrants” means the Class B Warrants (trading under symbol COINZ) issued pursuant to the
Securities Purchase Agreement.

Section 2. Registration.

(a) Mandatory Registration. Not later than ten (10) calendar days following the date
of the Corporation obtaining Stockholder Approval, the Corporation shall prepare and file with the
Commission a Registration Statement or Registration Statements (as necessary) on Form S-1 (or, if
such form is unavailable for such a registration, on such other form as is available for such a
registration), covering the resale of all Registrable Securities, which Registration Statement(s)
shall state that, in accordance with Rule 416 promulgated under the 1933 Act, such Registration
Statement also covers such indeterminate number of additional shares of Common Stock as may become
issuable upon future conversions, stock splits, stock dividends or similar transactions.

Notwithstanding anything to the contrary herein, the Corporation and the Investor intend that
the number of shares to be registered shall be pursuant to Rule 415 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or
any similar rule or regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule (collectively “Rule 415”) and any interpretative positions of Rule
415 by the Commission. If the number of shares registered in the Registration Statement is less
than the Registrable Securities, the balance will be registered in a second registration statement
and any necessary subsequent registration statements as soon as permitted by securities laws. And,
in the event that any Registrable Securities are excluded from the Registration Statement due to
the interpretation of Rule 415, the Registrable Securities included in each registration statement
shall be allocated at the discretion of the Investor. 

(b) The Corporation shall have the Registration Statement filed with the Commission before the
expiration of ten (10) calendar days following Stockholder Approval (the “Filing Date”). If the
Registration Statement covering the Registrable Securities required to be filed by the Corporation
pursuant to Section 2(a) hereof is not filed on or before the Filing Date, then the Corporation
shall pay the Investor the sum of two percent (2%) of the face amount of each of the Convertible
Notes and two percent (2%) of the Class B Warrant Market Value of the Warrants as liquidated
damages, and not as a penalty, for each thirty (30) calendar day period, pro rata, following the
Filing Date until the Registration Statement is filed. The Corporation shall pay such liquidated
damages in cash.

Notwithstanding the foregoing, the amounts payable by the Corporation pursuant to this Section
shall not be payable to the extent any delay in the filing of the Registration Statement occurs
because of an act of, or a failure to act or to act timely by the Investor. The damages set forth
in this Section shall continue until the obligation is fulfilled and shall be paid within three (3)
business days after each thirty (30) day period, or portion thereof, until the Registration
Statement is filed. Failure of the Corporation to make payment within said three (3) business days
shall be considered a default.

The Corporation acknowledges that its failure to have the Registration Statement filed on or
prior to the Filing Date will cause the Investor to suffer damages in an amount that will be
difficult to ascertain. Accordingly, the parties agree that it is appropriate to include in this
Agreement a provision for liquidated damages. The parties acknowledge and agree that the liquidated
damages provision set forth in this section represents the parties’ good faith effort to quantify
such damages and, as such, agree that the form and amount of such liquidated damages are reasonable
and will not constitute a penalty. The payment of liquidated damages shall not relieve the
Corporation from its obligations to register the Common Stock and deliver the Common Stock pursuant
to the terms of this Agreement and the Subscription Agreement.

Notwithstanding the foregoing provisions of Section 2(b) providing for liquidated damages
under certain circumstances, as the sole exception to the requirement to pay such damages, in the
event the Commission disallows registration of the Registrable Securities pursuant to Rule 415
under the Securities Act, no such damages shall be payable so long as the Corporation then uses its
best efforts to register the maximum number of Registrable Securities in such registration
statements as the Commission permits and uses its best efforts thereafter to register in
appropriate registration statements any Registrable Securities not included in such registration
statements.

The Corporation shall have a Registration Statement be declared effective by the Commission on
or prior to ninety (90) days after the Filing Date. Following notification that the Commission has
no further comments on the Registration Statement, the Corporation shall have five (5) days to have
the Registration Statement declared effective. If the Registration Statement covering the
Registrable Securities required to be filed by the Corporation pursuant to Section 2(a) hereof is
not declared effective within ninety (90) days following the Filing Date, then the Corporation
shall pay the Investor the sum of two percent (2%) of the face amount of Convertible Note and
two percent (2%) of the Class B Warrant Market Value of the Warrants, as liquidated damages
and not as a penalty for each thirty (30) calendar day period, pro rata, following the ninety (90)
calendar day period after the Filing Date, until the Registration Statement is declared effective,
and two percent (2%) for each successive thirty (30) calendar day period thereafter. The
Corporation shall pay such liquidated damages in cash.

If the Registration Statement covering the Registrable Securities required to be filed by the
Corporation pursuant to Section 2(a) hereof is declared effective, but after the effective date the
Investor’s right to sell is suspended due to the Registration Statement being no longer effective,
then the Corporation shall pay the Investor the sum of two percent (2%) of the face amount of the
Convertible Note and two percent (2%) of the Class B Warrant Market Value of the Warrants for each
thirty (30) calendar day period, pro rata, following the suspension until such suspension ceases.

Notwithstanding the foregoing, the amounts payable by the Corporation pursuant to this Section
shall not be payable to the extent any delay in the effectiveness of the Registration Statement
occurs because of an act of or a failure to act or to act timely by the Investor. The damages set
forth in this Section shall continue until the obligation is fulfilled and shall be paid within
three (3) business days after each thirty (30) day period, or portion thereof, until the
Registration Statement is declared effective or such suspension is released. Failure of the
Corporation to make payment within said three (3) business days shall be considered a default.

The Corporation acknowledges that its failure to have the Registration Statement declared
effective within one hundred and twenty (120) days following the Closing Date or to permit the
suspension of the effectiveness of the Registration Statement will cause the Investor to suffer
damages in an amount that will be difficult to ascertain. Accordingly, the parties agree that it is
appropriate to include in this Agreement a provision for liquidated damages. The parties
acknowledge and agree that the liquidated damages provision set forth in this section represents
the parties’ good faith effort to quantify such damages and, as such, agree that the form and
amount of such liquidated damages are reasonable and will not constitute a penalty. The payment of
liquidated damages shall not relieve the Corporation from its obligations to register the Common
Stock and deliver the Common Stock pursuant to the terms of this Agreement and the Securities
Purchase Agreement.

(c) The Corporation agrees not to include any other securities in this Registration Statement
except securities holding currently effective resale or piggyback registration rights as disclosed
in the Securities Purchase Agreement between the Corporation and the Investor or as disclosed in
filings that the Corporation has made with the Commission as of the date hereof without Investor’s
prior written consent. Furthermore, the Corporation agrees that it will not file any other
Registration Statement for other securities (other than those for the equity credit line financing,
strategic partners or in connection with a merger, acquisition or other transaction that is not a
New Transaction, as such term is defined in the Convertible Note), until ninety (90) calendar days
after the Registration Statement for the Registrable Securities is declared effective.

(d) Piggyback Registration. Without limiting the obligations set forth in Section
2(a) through and including 2(d) of this Agreement, until the sooner of the date whereby an
exemption from registration is available under Rule 144 (without restrictions) of the rules and
regulations of the Securities and Exchange Commission, as amended, promulgated pursuant to the
Securities Act or the date that all of the Conversion Shares have been sold if the Corporation at
any time proposes for any reason to register Primary Shares, Registrable Securities or Other Shares
under the Securities Act (other than on Form S-4 or Form S-8 promulgated under the Securities Act
or any successor forms thereto), it shall give written notice to the Investor of its intention so
to register such Primary Shares, Registrable Securities or Other Shares at least 30 days before the
initial filing of such registration statement and, upon the written request, delivered to the
Corporation within 20 days after delivery of any such notice by the Corporation, of the Investor to
include in such registration Registrable Securities (which request shall specify the number of
Registrable Securities proposed to be included in such registration and shall state that the
Investor desires to sell such Registrable Securities in the public securities markets), the
Corporation shall cause all such Registrable Securities to be included in such registration on the
same terms and conditions as the securities otherwise being sold in such registration;
provided, however, that if the managing underwriter advises the Corporation that
the inclusion of all Registrable Securities requested to be included in such registration would
interfere with the successful marketing (including pricing) of the Primary Shares, Registrable
Securities or Other Shares proposed to be registered by the Corporation, then the number of Primary
Shares, Registrable Securities and Other Shares proposed to be included in such registration shall
be included in the following order:

(i) if the Corporation proposes to register Primary Shares, or Primary Shares and Other
Shares:

First, the Primary Shares; and

Second, the Registrable Securities and Other Shares requested
to be included in such registration (or, if necessary, such Registrable
Securities and Other Shares pro rata among the holders
thereof based upon the number of Registrable Securities and Other Shares
requested to be registered by each such holder); or

(ii) if the Corporation proposes to register Other Shares pursuant to a request for
registration by the holders of such Other Shares (other than pursuant to Section 2 hereof):

First, the Other Shares held by the parties demanding such
registration; and

Second, the Registrable Securities and Other Shares requested
to be registered by the holders hereof (or, if necessary, pro
rata among the holders thereof based on the number of Registrable
Securities and Other Shares requested to be registered by such holders).

Section 3. Preparation and Filing.

If and whenever the Corporation is under an obligation pursuant to the provisions of this
Agreement to effect the registration of any Registrable Securities, the Corporation shall as
expeditiously as practicable:

(a) prepare and file with the Commission a registration statement with respect to such
Registrable Securities and use its best efforts to cause such registration statement to become
effective and, upon the request of the holders of a majority of the Registrable Securities being
registered thereunder, keep such registration statement effective for a period of up to twelve
months or until the distribution contemplated in the registration statement has been completed;
provided, however, that (i) such twelve month period shall be extended for a period
of time equal to the period the holders of Registrable Securities refrain from selling any
securities included in such registration at the request of an underwriter of Common Stock (or other
securities) of the Corporation; and (ii) in the case of any registration of Registrable Securities
on Form S-3 which are intended to be offered on a continuous or delayed basis, such twelve month
period shall be extended, if necessary, to keep the registration statement effective until all such
Registrable Securities are sold, provided that Rule 415, or any successor rule under the Securities
Act, permits an offering on a continuous or delayed basis; and provided
further that applicable rules under the Securities Act governing the obligation to file a
post-effective amendment permit (in lieu of filing a post-effective amendment which (I) includes
any prospectus required by Section 10(a)(3) of the Securities Act or (II) reflects facts or events
representing a material or fundamental change in the information set forth in the registration
statement) the incorporation by reference, in the registration statement, of information required
to be included in (I) and (II) above to be contained in periodic reports filed pursuant to Section
13 or 15(d) of the Exchange Act.

(b) prepare and file with the Commission such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Securities Act with respect to the disposition of
all securities covered by such registration statement.

(c) use its best efforts to register or qualify such Registrable Securities under such other
securities or blue sky laws of such jurisdictions as the Investor reasonably requests and do any
and all other acts and things which may be reasonably necessary or advisable to enable the Investor
to consummate the disposition in such jurisdictions of the Registrable Securities owned by the
Investor; provided, however, that the Corporation will not be required to qualify
generally to do business, subject itself to general taxation or consent to general service of
process in any jurisdiction where it would not otherwise be required to do so but for this
paragraph (e) or to provide any material undertaking or make any changes in its By-laws or
Certificate of Incorporation which the Board of Directors determines to be contrary to the best
interests of the Corporation or to modify any of its contractual relationships then existing;

(d) furnish, upon request, to the Investor holding such Registrable Securities such number of
copies of a summary prospectus, if any, or other prospectus, including a preliminary prospectus, in
conformity with the requirements of the Securities Act, and such other documents as the Investor
may reasonably request in order to facilitate the public sale or other disposition of such
Registrable Securities;

(e) without limiting subsection (c) above, use its best efforts to cause such Registrable
Securities to be registered with or approved by such other governmental agencies or authorities as
may be necessary by virtue of the business and operations of the Corporation to enable the Investor
holding such Registrable Securities to consummate the disposition of such Registrable Securities;

(f) notify the Investor holding such Registrable Securities on a timely basis at any time when
a prospectus relating to such Registrable Securities is required to be delivered under the
Securities Act within the appropriate period mentioned in subparagraph (a) of this Section 3, of
the happening of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing and, at the request of the Investor, prepare
and furnish to the Investor a reasonable number of copies of a supplement to or an amendment of
such prospectus as may be necessary so that, as thereafter delivered to the offerees of such
shares, such prospectus shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing;

(g) subject to the execution of confidentiality agreements in form and substance satisfactory
to the Corporation, make available upon reasonable notice and during normal business hours, for
inspection by the Investor holding such Registrable Securities, any underwriter participating in
any disposition pursuant to such registration statement and any attorney, accountant or other agent
retained by the Investor or underwriter (collectively, the “Inspectors”), all pertinent financial
and other records, pertinent corporate documents and properties of the Corporation (collectively,
the “Records”), as shall be reasonably necessary to enable them to exercise their due diligence
responsibility, and cause the Corporation’s officers, directors and employees to supply all
information (together with the Records, the “Information”) reasonably requested by any such
Inspector in connection with such registration statement. Any of the Information which the
Corporation determines in good faith to be confidential and of which determination the Inspectors
are so notified, shall not be disclosed by the Inspectors unless (i) the disclosure of such
Information is necessary to avoid or correct a misstatement or an omission in the registration
statement, (ii) the release of such Information is ordered pursuant to a subpoena or other order
from a court of competent jurisdiction or (iii) such Information has been made generally available
to the public; the Investor agree that they will, upon learning that disclosure of such information
is sought in a court of competent jurisdiction, give notice to the Corporation and allow the
Corporation, at the Corporation’s expense, to undertake appropriate action to prevent disclosure of
the Information deemed confidential;

(h) Intentionally omitted.

(i) use its best efforts to obtain from its counsel an opinion or opinions in customary form
addressed to the Corporation and any selling shareholders;

(j) in the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the managing underwriter of such
offering. Each holder of Registrable Securities participating in such underwriting shall also
enter into and perform its obligations under such an agreement;

(k) provide a transfer agent and registrar (which may be the same entity and which may be the
Corporation) for such Registrable Securities and a CUSIP number for all such Registrable
Securities, in each case not later than the effective date of such registration;

(l) issue to any underwriter to which the Investor holding such Registrable Securities may
sell shares in such offering certificates evidencing such Registrable Securities;

(m) list such Registrable Securities on any national securities exchange on which any shares
of the Common Stock are listed or, if the Common Stock is not listed on a national securities
exchange, use its best efforts to qualify such Registrable Securities for inclusion on the
automated quotation system of the National Association of Securities Dealers, Inc. (the “NASDAQ”),
or such other national securities exchange as the holders of a majority of such Registrable
Securities shall reasonably request;

(n) otherwise use its best efforts to comply with all applicable rules and regulations of the
Commission and make available to its security holders, as soon as reasonably practicable, earnings
statements (which need not be audited) covering a period of 12 months beginning within three months
after the effective date of the registration statement, which earnings statements shall satisfy the
provisions of Section 11 (a) of the Securities Act; and

(o) subject to all the other provisions of this Agreement, use its best efforts to take all
other steps necessary to effect the registration of such Registrable Securities contemplated
hereby.

(p) Each holder of the Registrable Securities, upon receipt of any notice from the Corporation
of any event of the kind described in Section 3(f) hereof, shall forthwith discontinue disposition
of the Registrable Securities pursuant to the registration statement covering such Registrable
Securities until such holders’ receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3(f) hereof, and, if so directed by the Corporation, such holder shall
deliver to the Corporation all copies, other than permanent file copies then in such holder’s
possession, of the prospectus covering such Registrable Securities at the time of receipt of such
notice.

Section 4. Expenses.

All expenses (other than underwriting discounts and commissions relating to the Registrable
Securities, as provided in the last sentence of this Section 4) incurred by the Corporation in
complying with Section 3, including, without limitation, all registration and filing fees
(including all expenses incident to filing with the Financial Industry Regulatory Authority, Inc.
“FINRA”), fees and expenses (including reasonable legal fees of Investor’s counsel) of complying
with securities and blue sky laws, printing expenses, fees and expenses of the Corporation’s
counsel and accountants, Corporation’s filings, shall be paid by the Corporation; provided,
however, (i) all underwriting discounts and selling commissions applicable to the
Registrable Securities and Other Shares shall be borne by the holders selling such Registrable
Securities and Other Shares, in proportion to the number of Registrable Securities and Other Shares
sold by each such holder and (ii) provided however the Corporation shall not be liable or
responsible to pay the fees of Investor’s attorney for the review of any registration statement.

Section 5. Indemnification.

(a) In connection with any registration of any Registrable Securities under the Securities Act
pursuant to this Agreement, the Corporation shall indemnify and hold harmless the holders of
Registrable Securities, each underwriter, broker or any other person acting on behalf of the
holders of Registrable Securities and each other person, if any, who controls any of the foregoing
persons within the meaning of the Securities Act against any losses, claims, damages or
liabilities, joint or several (or actions in respect thereof), to which any of the foregoing
persons may become subject under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue
statement or allegedly untrue statement of a material fact contained in the registration statement
under which such Registrable Securities were registered under the Securities Act, the Exchange Act
or any preliminary prospectus or final prospectus contained therein or otherwise filed with the
Commission, any amendment or supplement thereto or any document incident to registration or
qualification of any Registrable Securities, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading or, with respect to any prospectus, necessary to make
the statements therein in light of the circumstances under which they were made not misleading, or
any violation by the Corporation of the Securities Act or state securities or blue sky laws
applicable to the Corporation and relating to action or inaction required of the Corporation in
connection with such registration or qualification under such state securities or blue sky laws;
and shall reimburse the holders of Registrable Securities, such underwriter, such broker or such
other person acting on behalf of the holders of Registrable Securities and each such controlling
person for any legal or other expenses reasonably incurred by any of them in connection with
investigating or defending any such loss, claim, damage, liability or action; provided,
however, that the Corporation shall not be liable in any such case to the extent that any
such loss, claim, damage, liability or action (including any legal or other expenses incurred)
arises out of or is based upon an untrue statement or allegedly untrue statement or omission or
alleged omission made in said registration statement, preliminary prospectus, final prospectus,
amendment supplement or document incident to registration or qualification of any Registrable
Securities in reliance upon and in conformity with written information furnished to the Corporation
through an instrument duly executed by the holders of Registrable Securities or their counsel or
underwriter specifically for use in the preparation thereof; provided further,
however, that the foregoing indemnity agreement is subject to the condition that, insofar
as it relates to any untrue statement, omission or alleged omission made in any preliminary
prospectus but eliminated or remedied in the final prospectus (filed pursuant to Rule 424 of the
Securities Act), such indemnity agreement shall not inure to the benefit of any Investor,
underwriter, broker or other person acting on behalf of holders of the Restricted Shares from whom
the person asserting any loss, claim, damage, liability or expense purchased the Restricted Shares
which are the subject thereof, if a copy of such final prospectus had been made available to such
person and the Investor, underwriter, broker or other person acting on behalf of holders of the
Registrable Securities and such final prospectus was not delivered to such person with or prior to
the written confirmation of the sale of such Registrable Securities to such person.

(b) In connection with any registration of Registrable Securities under the Securities Act
pursuant to this Agreement, each holder of Registrable Securities shall severally and not jointly
indemnify and hold harmless (in the same manner and to the same extent as set forth in the
preceding paragraph of this Section 5) the Corporation, each director of the Corporation, each
officer of the Corporation who shall sign such registration statement, each underwriter, broker or
other person acting on behalf of the holders of Registrable Securities and each person who controls
any of the foregoing persons within the meaning of the Securities Act with respect to any statement
or omission from such registration statement, any preliminary prospectus or final prospectus
contained therein or otherwise filed with the Commission, any amendment or supplement thereto or
any document incident to registration or qualification of any Registrable Securities, if such
statement or omission was made in reliance upon and in conformity with written information
furnished to the Corporation or such underwriter specifically for use in connection with the
preparation of such registration statement, preliminary prospectus, final prospectus, amendment,
supplement or document; provided, however, that the maximum amount of liability in
respect of such indemnification shall be limited, in the case of each Seller of Registrable
Securities, to an amount equal to the net proceeds actually received by such Seller from the sale
of Registrable Securities effected pursuant to such registration.

(c) Promptly after receipt by an indemnified party of notice of the commencement of any action
involving a claim referred to in the preceding paragraphs of this Section 5, such indemnified party
will, if a claim in respect thereof is made against an indemnifying party, give written notice to
the latter of the commencement of such action. The failure of any indemnified party to notify an
indemnifying party of any such action shall not (unless such failure shall have a material adverse
effect on the indemnifying party) relieve the indemnified party on account of this Section 5. In
case any such action is brought against an indemnified party, the indemnifying party will be
entitled to participate in and to assume the defense thereof, jointly with any other indemnifying
party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to
such indemnified party, and after notice from the indemnifying party to such indemnified party of
its election so to assume the defense thereof, the indemnifying party shall not be responsible for
any legal or other expenses subsequently incurred by the indemnified party in connection with the
defense thereof; provided, however, that if any indemnified party shall have
reasonably concluded that there may be one or more legal or equitable defenses available to such
indemnified party which are additional to or conflict with those available to the indemnifying
party, or that such claim or litigation involves or could have an effect upon matters beyond the
scope of the indemnity agreement provided in this Section 5, the indemnifying party shall not have
the right to assume the defense of such action on behalf of such indemnified party (but shall have
the right to participate therein with counsel of its choice) and such indemnifying party shall
reimburse such indemnified party and any person controlling such indemnified party for that portion
of the fees and expenses of any counsel retained by the indemnified party which is reasonably
related to the matters covered by the indemnity agreement provided in this Section 5. If the
indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not
be obligated to pay the fees and expenses of more than one counsel with respect to such claim.

(d) If the indemnification provided for in this Section 5 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, claim, damage,
liability or action referred to herein, then the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified
party as a result of such loss, claim, damage, liability or action in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of the
indemnified party on the other in connection with the statements or omissions which resulted in
such loss, claim, damage, liability or action as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.
In no event shall contribution obligations of this Section 5(b) exceed the net profits from the
offering received by such holder after deducting underwriting fees, discounts and commissions. No
person guilty of fraudulent misrepresentation shall be entitled to contribution from any person.

Section 6. Underwriting Agreement.

Notwithstanding the provisions of Sections 2, 3, 4 and 5, to the extent that the Investor
shall enter into an underwriting or similar agreement, which agreement contains provisions covering
one or more issues addressed in such Sections, the provisions contained in such agreement
addressing such issue or issues shall control; provided, however, that any such
agreement to which the Corporation is not a party shall not be binding upon the Corporation. No
holder may participate in any underwritten registration hereunder unless such holder (a) agrees to
such holder’s securities on the basis provided in any underwriting arrangements and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other
documents reasonably and customarily required under the terms of such underwriting arrangements.

Section 7. Information by Investor.

The Investor shall furnish to the Corporation such written information regarding the Investor
and the distribution proposed by the Investor as the Corporation may reasonably request in writing
and shall be reasonably required in connection with any registration, qualification or compliance
referred to in this Agreement.

Section 8. Exchange Act Compliance.

With a view to making available to the Investor the benefits of Rule 144 promulgated under the
Act and any other rule or regulation of the Commission may at any time permit an Investor to sell
securities of the Corporation to the public without registration or pursuant to a registration on
Form S-3, the Corporation agrees, on and after becoming subject to reporting obligations under the
federal securities laws, to:

(a) make and keep public information available, as those terms are understood and defined in
Rule 144, at all times after ninety (90) days after the effective date of the first registration
statement filed by the Corporation for the offering of its securities to the general public;

(b) file with the Commission in a timely manner all reports and other documents required of
the Corporation under the Securities Act and the Exchange Act; and

(c) furnish to any Investor, so long as the Investor owns any Registrable Securities,
forthwith upon request (i) a written statement by the Corporation that it has complied with the
reporting requirements of Rule 144, and (ii) such other information as may be reasonably requested
in availing any Investor of any rule or regulation of the Commission which permits the selling of
any such securities without registration or pursuant to such form. Notwithstanding anything to the
contrary in this Section, so long as the Corporation makes all required filings under the Exchange
Act, it shall be deemed to comply with this Section without any further action or notice to the
Investor.

Section 9. No Conflict of Rights.

The Corporation shall not, after the date hereof, grant any registration rights which conflict
with or impair the registration rights granted hereby.

Section 10. Termination.

This Agreement shall terminate and be of no further force or effect when there shall no longer
be any Registrable Securities outstanding; provided that Sections 4 and 5 shall survive any
termination of this Agreement.

Section 11. Successors and Assigns.

This Agreement shall bind and inure to the benefit of the Corporation and the Investor and,
subject to Section 13, the respective successors and assigns of the Corporation and the Investor.

Section 12. Assignment.

The Investor may assign its rights hereunder to any purchaser or transferee of Registrable
Securities; provided, however, that such purchaser or transferee shall, as a condition to the
effectiveness of such assignment, be required to execute and deliver to the Corporation a
counterpart to this Agreement agreeing to be treated as an Investor whereupon such purchaser or
transferee shall have the benefits of, and shall be subject to the restrictions contained in, this
Agreement as if such purchaser or transferee was originally included in the definition of an
Investor herein and had originally been a party hereto.

Section 13. Third Party Beneficiaries.

This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be
enforced by, any other Person

Section 14. Entire Agreement.

This Agreement and the other writings referred to herein or therein or delivered pursuant
hereto or thereto, contain the entire agreement among the Investor and the Corporation with respect
to the subject matter hereof and supersede all prior and contemporaneous arrangements or
understandings with respect thereto.

Section 15. Notices.

All notices, requests, consents and other communications hereunder to any party hereunder
shall be in writing and shall be deemed effectively given upon personal delivery; upon confirmed
transmission by telecopy or telex if sent during normal business hours of the recipient (or if not,
on the next Trading Day of the recipient); three days after deposit with the United States Post
Office, by registered or certified mail, postage prepaid; or otherwise upon delivery by hand or by
messenger or one day after deposit with a nationally recognized courier service, addressed to such
party at the address set forth below or such other address as may hereafter be designated in
writing by such party to the other parties:

if to the Corporation, to:

Converted Organics, Inc.

Attn: Ed Gildea

7A Commercial Wharf West

Boston, Massachusetts 02110

Telephone: (617) 624-0111

Fax: (617) 624-0333

with a copy to: (which shall not constitute notice):

Cozen O’Connor

Attn: Ralph V. De Martino, Esq.

The Army and Navy Building

1627 I Street, NW

Suite 1100

Washington, DC 20006

Telephone: 202-912-4800

Fax: 202-912-4830

if to the Investor, to:

Professional Offshore Opportunity Fund, Ltd.

? Professional Traders Management, LLC

Attn: Howard Berger

1400 Old Country Road, Suite 206

Westbury, New York 11590

Telephone: 516-228-0070

Fax: 516-228-8083

with a copy to (which shall not constitute notice):

Anslow & Jaclin LLP

Attn: Joseph M. Lucosky, Esq.

Eric M. Stein, Esq.

195 Route 9 South

Manalapan, NJ 07726

Telephone: (732) 409-1212

Facsimile: (732) 577-1188

All such notices, requests, consents and other communications shall be deemed to have
been delivered (a) in the case of personal delivery or delivery by telecopy, on the date of such
delivery, (b) in the case of dispatch by nationally-recognized overnight courier, on the next
business day following such dispatch and (c) in the case of certified or registered mail (return
receipt requested), on the third business day after the posting thereof.

Section 16. Modifications; Amendments; Waivers.

The terms and provisions of this Agreement may not be modified or amended, nor may any
provision be waived, except pursuant to a writing signed by the Corporation and the holders of at
least a majority of the Registrable Securities then outstanding.

Section 17. Counterparts.

This Agreement may be executed in any number of counterparts, and each such counterpart hereof
shall be deemed to be an original instrument, but all such counterparts together shall constitute
but one agreement.

Section 18. Facsimile Signature.

In the event that any signature is delivered by facsimile transmission, PDF, electronic
signature or other similar electronic means, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such signature page were an original thereof.

Section 19. Headings.

The headings of the various sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed to be a part of this Agreement.

Section 20. Governing Law.

This Agreement shall be governed by and construed in accordance with the internal laws of the
State of New York, without regard to conflicts of law principles.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

	1	 	All capitalized terms not otherwise defined
herein shall have the meaning ascribed to them in the Securities Purchase
Agreement.

1

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement as of the date first

set forth above.

CONVERTED ORGANICS, INC.

By:      

Name: Ed Gildea

Title: President and Chief Executive Officer

PROFESSIONAL OFFSHORE OPPORTUNITY

FUND, LTD.

By:      

Name: Howard Berger

Title: Manager

2EX-10.1

AGREEMENT

THIS AGREEMENT (“Agreement”), dated as of March 6, 2009, is made by and between Actel
Corporation, a California corporation (“Actel” or the “Company”), and the entities
and natural persons listed on Schedule A hereto and their affiliates (collectively, the “Ramius
Group”) (each of the Company and the Ramius Group, a “Party” to this Agreement, and
collectively, the “Parties”).

WHEREAS, the Ramius Group may be deemed to beneficially own shares of common stock of Actel
(the “Common Stock”) totaling, in the aggregate, 2,264,272 shares, or approximately 8.8% of
the Common Stock issued and outstanding on the date hereof; and

WHEREAS, Actel and the Ramius Group have agreed that it is in their mutual interests to enter
into this Agreement.

NOW, THEREFORE, in consideration of the premises and the representations, warranties, and
agreements contained herein, and other good and valuable consideration, the Parties mutually agree
as follows:

1.  Representations and Warranties of the Ramius Group. The Ramius Group represents and
warrants to Actel that (a) this Agreement has been duly authorized, executed and delivered by the
Ramius Group, and is a valid and binding obligation of the Ramius Group, enforceable against the
Ramius Group in accordance with its terms, except as enforcement thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar
laws generally affecting the rights of creditors and subject to general equity principles; (b) the
execution of this Agreement, the consummation of any of the transactions contemplated hereby, and
the fulfillment of the terms hereof, in each case in accordance with the terms hereof, will not
conflict with, or result in a breach or violation of the organizational documents of the Ramius
Group as currently in effect; and (c) as of the date of this Agreement, the Ramius Group may be
deemed to beneficially own in the aggregate 2,264,272 shares of Common Stock.

2.  Representations and Warranties of Actel. Actel hereby represents and warrants to the
Ramius Group that (a) this Agreement has been duly authorized, executed and delivered by Actel, and
is a valid and binding obligation of Actel, enforceable against Actel in accordance with its terms,
except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and
subject to general equity principles; (b) the execution of this Agreement, the consummation of any
of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case in
accordance with the terms hereof, will not (1) conflict with, result in a breach or violation of,
constitute a default (or an event which with notice or lapse of time or both could become a
default) under or pursuant to, result in the loss of a material benefit or give any right of
termination, amendment, acceleration or cancellation under, or result in the imposition of any
lien, charge or encumbrance upon any property or assets of Actel or any of its subsidiaries
pursuant to any law, any order of any court or other agency of government, Actel’s Restated
Articles of Incorporation (as amended January 3, 2003) (the “Restated Articles”), Actel’s
Amended and Restated Bylaws (the “Bylaws”), or the terms of any indenture, contract, lease,
mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition,
covenant or instrument to which Actel is a party or bound or to which its property or assets is
subject or (2) trigger any “change of control” provisions in any agreement to which Actel is a
party; and (c) no consent, approval, authorization, license or clearance of, or filing or
registration with, or notification to, any court, legislative, executive or regulatory authority or
agency is required in order to permit Actel to perform its obligations under this Agreement, except
for such as have been obtained.

3. Directorships.

(a) Prior to the time that Actel mails its definitive proxy statement for its 2009 annual
shareholder meeting (the “2009 Annual Meeting”), but in any event no later than March 23,
2009, Actel’s board of directors (the “Board”) and all applicable committees of the Board
shall take all necessary actions to (i) increase the size of the Board from six (6) to nine (9)
members and (ii) appoint Gavin T. Molinelli, Eric J. Zahler and Jeffrey C. Smith (the “New
Appointees”) to fill the vacancies on the Board created by increasing its size to nine (9)
members.

(b) Actel agrees that the Board and all applicable committees of the Board will nominate no
more than eight (8) members for election to Actel’s Board at the 2009 Annual Meeting. Actel
further agrees that the Board and all applicable committees of the Board will take all actions
necessary and appropriate to amend the Bylaws to reduce the size of the Board to eight (8) members
effective at the 2009 Annual Meeting.

(c) Actel agrees that the Board and all applicable committees of the Board will take all
actions necessary and appropriate to:

               (1) nominate the New Appointees, or any replacement director appointed pursuant
to Section 3(d) or Section 3(e) below as applicable (the “Replacement Appointees,” and
together with the remaining New Appointees, the “Ramius Directors”), for election to
Actel’s Board at the 2009 Annual Meeting (other than in the case of such person’s refusal to serve
or if such person has committed an act that would be grounds for removal from the Board for cause,
in which case the Ramius Group will have the right to designate and substitute another person or
persons, subject to prompt reasonable evaluation and determination by the Nominating Committee of
the Board (the “Nominating Committee”) in good faith after exercising its fiduciary duties
that such candidate has business experience in such areas as would reasonably be expected to
enhance the Board, consistent with Actel’s guidelines relating to director qualifications and Board
composition), together with up to five (5) other persons to be included in Actel’s slate of
nominees for director, with terms expiring at Actel’s 2010 annual shareholder meeting (the
“2010 Annual Meeting”);

(2) recommend, and reflect such recommendation in Actel’s definitive proxy statement in
connection with the 2009 Annual Meeting, that the shareholders of Actel vote to elect the Ramius
Directors as directors of Actel at the 2009 Annual Meeting;

(3) use its reasonable efforts to solicit and obtain proxies in favor of the election of the
Ramius Directors at the 2009 Annual Meeting, in the same manner as for the other candidates
nominated for election at the 2009 Annual Meeting; and

(4) ensure that, while any of the Ramius Directors remains in office, the Ramius Group will
have the right to designate at least one Ramius Director, subject to compliance with applicable
Securities and Exchange Commission (the “SEC”) and Nasdaq corporate governance rules, to
serve on each committee and sub-committee of the Board (or any substitutes therefor) now in
existence or created after the date hereof.

(d) Following the appointment of the New Appointees pursuant to Section 3(a) of this
Agreement, the Ramius Group agrees that it shall use reasonable efforts to select a candidate to
replace Mr. Molinelli to serve on the Board, subject to evaluation and approval by the Nominating
Committee using the standards described in Section 3(c)(1); provided, however, that such candidate
(i) shall not be an affiliate of the Ramius Group and (ii) shall have significant experience in the
semiconductor industry. The Nominating Committee shall not unreasonably withhold approval of such
person. In the event the Nominating Committee does not approve the person selected by the Ramius
Group, the Ramius Group will have the right to select an additional candidate for consideration by
the Nominating Committee who meets the standards described in the first sentence of this Section
3(d). Once the Nominating Committee has approved a candidate selected by the Ramius Group, the
Ramius Group shall take all necessary action to cause Mr. Molinelli to resign his position as a
director. Contemporaneously with such resignation, the Board shall appoint the candidate selected
by the Ramius Group and approved by the Nominating Committee to fill the vacancy on the Board
created by the resignation of Mr. Molinelli.

(e) Actel agrees that, during the term of this Agreement, if a Ramius Director resigns or is
otherwise unable to serve as a director or is removed for cause as a director (other than the
resignation of Mr. Molinelli pursuant to Section 3(d)), the Ramius Group will have the right to
designate and substitute a person or persons for appointment to the Board as a replacement
director, subject to evaluation and determination by the Nominating Committee using the standards
described in Section 3(c)(1); provided, however, (i) the substitute person designated by the Ramius
Group shall have experience consistent with the director being replaced and (ii) at no point
following the appointment of the candidate replacing Mr. Molinelli pursuant to Section 3(d) shall
the Ramius Directors consist of more than one (1) affiliate of the Ramius Group. The Nominating
Committee will not unreasonably withhold acceptance of any replacement director(s) recommended by
the Ramius Group. In the event the Nominating Committee does not accept a replacement director
recommended by the Ramius Group, the Ramius Group will have the right to recommend additional
replacement director(s) for consideration by the Nominating Committee. The Board will appoint such
replacement director to the Board no later than five (5) business days after the Nominating
Committee’s recommendation of such replacement director.

(f) Each of the Ramius Directors, upon election to the Board, will be governed by the same
protections and obligations regarding confidentiality, conflicts of interests, fiduciary duties,
trading and disclosure policies and other governance guidelines, and shall have the same rights and
benefits, including (but not limited to) with respect to insurance, indemnification, compensation
and fees, as are generally applicable to any non-employee directors of Actel.

(g) Actel agrees that it shall hold the 2009 Annual Meeting on June 5, 2009.

(h) Except as provided in Section 3(a) above, Actel agrees that prior to the 2010 Annual
Meeting, the Board and all applicable committees of the Board shall not (i) increase the size of
the Board to more than eight (8) directors or (ii) or take any other action to materially limit or
restrict the rights of or time allotted to its shareholders to nominate persons for election to the
Board (including but not limited to by amending the Restated Articles or Bylaws).

4. Standstill Restrictions.

(a) Subject to applicable law, including Section 13(d) and (g) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), except as permitted pursuant to the terms of this
Agreement, during the term of this Agreement, the Ramius Group shall not, and shall cause their
Affiliates and Associates (as defined below) under its control or direction not to, in any manner,
directly or indirectly:

  (i) solicit (as such term is used in the proxy rules of the Securities and Exchange
Commission (the “SEC”)) proxies or consents to vote any securities of Actel, or make, or in
any way participate in, any “solicitation” of any “proxy” within the meaning of Rule 14a-1
promulgated by the SEC under the Exchange Act to vote any shares of Common Stock with respect to
any matter, or become a “participant” in any “contested solicitation” for the election of directors
with respect to Actel (as such terms are defined or used in the Exchange Act and the rules
promulgated thereunder), other than solicitations or acting as a participant in support of all of
Actel’s nominees and proposals;

(ii) purchase or cause to be purchased or otherwise acquire or agree to acquire beneficial
ownership (as determined under Rule 13d-3 promulgated under the Exchange Act) of any Common Stock
or other securities issued by Actel, if in any such case, immediately after the taking of such
action, the Ramius Group would, in the aggregate, collectively beneficially own more than the
greater of (i) 14.9% of the then outstanding shares of Common Stock, or (ii) such percentage of the
then outstanding shares of Common Stock as is 0.1% less than the amount causing the Ramius Group to
become an “Acquiring Person” under the Company’s Preferred Stock Rights Agreement, dated October
17, 2003, as the same may be amended;

(iii) form, join or in any way participate in any “group” (within the meaning of Section
13(d)(3) of the Exchange Act) with respect to the Common Stock (other than a group comprised solely
of the Ramius Group);

(iv) deposit any Common Stock in any voting trust or subject any Common Stock to any
arrangement or agreement with respect to the voting of any Common Stock, other than any such voting
trust, arrangement or agreement solely among the Ramius Group;

(v) otherwise act, alone or in concert with others to (1) make any public statement critical
of Actel, its directors or management, other than as contemplated by Section 4(a)(vi)(3) below or
(2) control or seek to control the Board, other than through non public communications with the
officers and directors of Actel;

(vi) other than as provided in this Agreement, make any public announcement with respect to,
or offer to effect, seek or propose (with or without conditions) a merger, acquisition, disposition
or other business combination involving Actel, other than through non public communications with
the officers and directors of Actel; provided, however, that nothing herein will
limit the ability of (1) any member of the Ramius Group, or its respective Affiliates and
Associates, except as otherwise provided in Section 5, to vote its shares of Common Stock on any
matter submitted to a vote of the stockholders of the Company, (2)the Ramius Directors to exercise
their rights as members of the Board while serving as members of the Board or (3) the Ramius Group
to announce its opposition to any Board approved proposals related to a merger, acquisition,
disposition of all or substantially all of the assets of Actel or other business combination
involving Actel and not supported by Mr. Smith;

(vii) seek, alone or in concert with others, (1) to call a meeting of shareholders, or
(2) representation on the Board, except as specifically contemplated in Section 3(a), Section 3(c),
Section 3(d) and Section 4(b), or (3) the removal of any member of the Board; or

(viii) publicly disclose any request to amend, waive or terminate any provision of this
Agreement.

(b) Notwithstanding anything contained herein to the contrary, any member of the Ramius Group,
and any Affiliate or Associate of any such member, shall be entitled to:

(i) subject to Section 5, vote their shares in favor of the election of the Ramius Directors
at the 2009 Annual Meeting and on any other proposal duly brought before the 2009 Annual Meeting,
or otherwise vote as the Ramius Group determines in their sole discretion;

(ii) disclose, publicly or otherwise, how it intends to vote or act with respect to any
securities of the Company, any stockholder proposal or other matter to be voted on by the
stockholders of the Company (other than the election of directors) and the reasons therefor;

(iii) propose a slate of nominees for election as directors and/or one or more proposal(s) for
consideration or approval by shareholders at the 2010 Annual Meeting in order to comply with the
advance notice provisions or other requirements of the Restated Articles or the Bylaws; and

(iv) In the event a special meeting is called by a shareholder of Actel with respect to the
removal of directors, the Ramius Group may (A) cumulate the vote of the shares of Common Stock held
by the Ramius Group and vote in favor of the Ramius Directors and (B) solicit proxies to vote
against the removal of the Ramius Directors; provided, however, that if Actel solicits proxies to
vote against the removal of all directors, the Ramius Group may only solicit proxies to vote
against the removal of all directors and not just the Ramius Directors.

(c) As used in this Agreement, the terms “Affiliate” and “Associate” shall have the respective
meanings set forth in Rule 12b-2 promulgated by the SEC under the Exchange Act.

5.  Actions by the Ramius Group.

(a) At the 2009 Annual Meeting, the Ramius Group shall vote, and cause their respective
officers, directors, employees and agents to vote, all of the shares of Common Stock beneficially
owned by him or them for (i) each of Actel’s nominees for election to the Board, (ii) the
ratification of the appointment of Actel’s independent auditors and (iii) an amendment to Actel’s
Employee Stock Purchase Plan to increase the number of authorized shares reserved for issuance
thereunder to up to 2,500,000 shares of Common Stock subject to the favorable recommendation of the
RiskMetrics Group or such lower number of shares that the RiskMetrics Group endorses.

(b) Upon execution of this Agreement by the Parties, the Ramius Group shall not submit any
proposals or nominations for election to the Board at the 2009 Annual Meeting;

6.  Termination. This Agreement shall terminate and the obligations of the Parties under this
Agreement shall cease on the earlier of the following (the “Termination Date”):

(a) at the option of Actel, upon the earliest of a material breach by the Ramius Group of any
obligation hereunder which has not been cured within 14 days after the Ramius Group receives notice
of such breach from Actel

(b) at the option of the Ramius Group, upon a material breach by Actel of any obligation
hereunder which has not been cured within 14 days after Actel receives notice of such breach from
the Ramius Group;

(c) seven days prior to the date that an Actel shareholder may first submit a nomination for
the election of directors at the 2010 Annual Meeting pursuant to the bylaws of the Company as then
in effect;

(d) on the day that the Board publicly announces its nominees for election as directors at the
2010 Annual Meeting; or

(e) at any time, upon the written consent of all of the Parties.

7.  Public Announcement. Actel and the Ramius Group shall promptly disclose the existence of
this Agreement after its execution pursuant to a joint press release that is mutually acceptable to
the parties, including a description of the material terms of this Agreement. Subject to applicable
law, none of the Parties shall disclose the existence of this Agreement until the joint press
release is issued. The Parties agree that, while this Agreement remains in effect, each Party
shall refrain from any disparagement, defamation, libel, or slander with respect to any other Party
or its affiliates or from publicly criticizing such other Party or its affiliates.

8.  Nonpublic Information.

(a) In connection with discussions between the Ramius Group and their representatives and
Actel and its representatives, or otherwise during the term of this Agreement, the Ramius Group or
their representatives have obtained information about Actel or its securities that is confidential.
Each member of the Ramius Group agrees, as set forth below, to treat confidentially any such
information (whether oral or written, provided that all written information shall have been
identified as confidential) furnished to or otherwise obtained by the Ramius Group or their
representatives from Actel or on their behalf together with those portions of analyses, summaries,
notes or other documents prepared by the Ramius Group or any of their representatives which contain
or otherwise reflect such information (herein collectively referred to as the “Confidential
Information”). The Ramius Group agrees that, except with Actel’s prior written consent, neither
the Ramius Group nor their representatives will disclose any Confidential Information to any other
person or use any of the Confidential Information for any purpose other than on Actel’s behalf. For
purposes of this Agreement, the phrase “Confidential Information” shall not include information
which (i) becomes lawfully available to the public other than as a result of a disclosure by the
Ramius Group or their representatives, (ii) was lawfully available to the Ramius Group on a
nonconfidential basis prior to its disclosure to the Ramius Group or their representatives by Actel
or on its behalf or (iii) lawfully becomes available to the Ramius Group on a nonconfidential basis
from a source other than Actel or Actel’s representatives or agents, provided that to the knowledge
of the Ramius Group, such source is not bound by a confidentiality agreement with Actel. Actel has
no obligation to furnish Confidential Information to the Ramius Group or their representatives by
virtue of this Agreement. In the event that any member of the Ramius Group is requested pursuant
to, or required by, law, regulation, legal process or regulatory or civil authority to disclose any
portion of the Confidential Information, the Ramius Group shall give prompt notice to Actel, to the
extent such notice is legally permissible. The Ramius Group shall use all commercially reasonable
efforts to limit the scope of such required disclosure, and the Ramius Group shall be permitted to
disclose, without any liability to Actel, only that portion of the Confidential Information which
the Ramius Group’ counsel advises that the Ramius Group are legally required to disclose.

(b) In connection with this Agreement and the ongoing relationship of the Ramius Group (and
their affiliates) with Actel, there may be instances in which material nonpublic information
concerning Actel will be divulged to them by Actel or its representatives or agents. The Ramius
Group expressly acknowledge, on behalf of themselves and their representatives and agents, that
federal and state securities laws prohibit any person who misappropriates material nonpublic
information about a company from purchasing or selling securities of such company, or from
communicating such information to any other person under circumstances in which it is reasonably
foreseeable that such person is likely to purchase or sell such securities, until such information
has become public.

9.  Releases.

      (a)  The Ramius Group hereby agrees for the benefit of Actel, and each controlling
person, officer, director, shareholder, agent, affiliate, employee, partner, attorney, heir,
assign, executor, administrator, predecessor and successor, past and present, of Actel (Actel and
each such person being an “Actel Released Person”) as follows:

           (i) The Ramius Group, for themselves and for their members, officers, directors,
assigns, agents and successors, past and present, hereby agrees and confirms that, effective from
and after the date of this Agreement, they hereby acknowledge full and complete satisfaction of,
and covenant not to sue, and forever fully release and discharge each Actel Released Person of, and
hold each Actel Released Person harmless from, any and all rights, claims, warranties, demands,
debts, obligations, liabilities, costs, attorneys’ fees, expenses, suits, losses and causes of
action of any nature whatsoever, whether known or unknown, suspected or unsuspected (collectively,
“Claims”) that the Ramius Group may have against the Actel Released Persons, in each case
with respect to events occurring prior to the date of the execution of this Agreement.

(ii) The Ramius Group understands and agree that the Claims released by the Ramius Group above
include not only those Claims presently known but also include all unknown or unanticipated claims,
rights, demands, actions, obligations, liabilities, and causes of action of every kind and
character that would otherwise come within the scope of the Claims as described above. The Ramius
Group understands that they may hereafter discover facts different from or in addition to what they
now believe to be true, which if known, could have materially affected this release of Claims, but
they nevertheless waive any claims or rights based on different or additional facts.

           (b)  The Ramius Group agrees that so long as any Ramius Director is a member of the
Board, (i) no member of the Ramius Group shall, without the consent of Actel, instigate, solicit,
assist, intervene in, or otherwise voluntarily participate in any litigation or arbitration in
which Actel or any of its officers or directors are named as parties; provided that the foregoing
shall not prevent any member of the Ramius Group from responding to a validly issued legal process
and (ii) the Ramius Group agrees to give Actel at least five (5) business days notice of the
receipt of any legal process requesting information regarding Actel or any of its officers or
directors, to the extent that such notice is legally permissible.

           (c)  Actel hereby agrees for the benefit of the Ramius Group, and each controlling
person, officer, director, stockholder, agent, affiliate, employee, partner, attorney, heir,
assign, executor, administrator, predecessor and successor, past and present, thereof, as well as
each Ramius Director (the Ramius Group and each such person being a “Shareholder
Released Person”) as follows:

           (i) Actel, for itself and for its affiliates, officers, directors, assigns, agents
and successors, past and present, hereby agrees and confirms that, effective from and after the
date of this Agreement, it hereby acknowledges full and complete satisfaction of, and covenants not
to sue, and forever fully releases and discharges each Shareholder Released Person of, and holds
each Shareholder Released Person harmless from, any and all Claims of any nature whatsoever,
whether known or unknown, suspected or unsuspected, that Actel may have against the Shareholder
Released Persons, in each case with respect to events occurring prior to the date of the execution
of this Agreement.

(ii) Actel understand and agree that the Claims released by Actel above include not only those
Claims presently known but also include all unknown or unanticipated claims, rights, demands,
actions, obligations, liabilities, and causes of action of every kind and character that would
otherwise come within the scope of the Claims as described above. Actel understands that it may
hereafter discover facts different from or in addition to what it now believes to be true, which if
known, could have materially affected this release of Claims, but it nevertheless waives any claims
or rights based on different or additional facts.

           (d)   The Parties do hereby expressly waive and relinquish all rights and benefits
afforded by California Civil Code Section 1542, and do so understanding and acknowledging the
significance and consequences of such specific waiver of California Civil Code Section 1542. The
Parties acknowledge and understand that they are being represented in this matter by counsel of
their own choice, and acknowledge that they are familiar with the provisions of California Civil
Code Section 1542, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR.

Thus, notwithstanding these provisions of law, the Parties expressly acknowledge and agree
that this Section 10 is also intended to include in its effect, without limitation, all such claims
which they do not know or suspect to exist at the time of the execution of this Agreement, and that
this Agreement contemplates the extinguishment of those claims.

          (e)  The Parties intend that the foregoing release be broad with respect to the
matter released, provided, however, this release of Claims shall not include claims to enforce the
terms of this Agreement; and provided further that nothing in the foregoing release shall be deemed
or construed, now or hereafter, as limiting in any manner any right of indemnification inuring to
the benefit of any director or former director of Actel arising under the Restated Articles, the
Bylaws or otherwise.

10.  Remedies.

(a) Each of the Parties acknowledges and agrees that a breach or threatened breach by any
Party may give rise to irreparable injury inadequately compensable in damages, and accordingly each
Party shall be entitled to injunctive relief to prevent a breach of the provisions hereof and to
enforce specifically the terms and provisions hereof in any state or federal court having
jurisdiction, in addition to any other remedy to which such aggrieved Party may be entitled to at
law or in equity.

(b) In the event a Party institutes any legal action to enforce such Party’s rights under, or
recover damages for breach of this Agreement, the prevailing party or parties in such action shall
be entitled to recover from the other party or parties all costs and expenses, including but not
limited to reasonable attorneys’ fees, court costs, witness fees, disbursements and any other
expenses of litigation or negotiation incurred by such prevailing party or parties.

11. Expenses. Actel shall reimburse the Ramius Group for its reasonable, documented
out-of-pocket fees and expenses incurred (including legal expenses), not to exceed $30,000, in
connection with the filing of a Schedule 13D in connection with this Agreement, and any matters
related to the 2009 Annual Meeting and the negotiation and execution of this Agreement.

12. Notices. Any notice or other communication required or permitted to be given under this
Agreement will be sufficient if it is in writing, sent to the applicable address set forth below
(or as otherwise specified by a Party by notice to the other Parties in accordance with this
Section 12) and delivered personally or sent by recognized overnight courier, postage prepaid, and
will be deemed given (a) when so delivered personally, or (b) if sent by recognized overnight
courier, one day after the date of sending.

If to Actel:

Actel Corporation

2061 Stierlin Ct.

Mountain View, CA 94043

Attention: John East, Chief Executive Officer

Telephone: (650) 318-4200

Facsimile: (650) 318-2444

with a copy (which shall not constitute notice to Actel) to:

Wilson Sonsini Goodrich & Rosati

Professional Corporation

650 Page Mill Road

Palo Alto, California 94304

Attention: David J. Berger

            Henry P. Massey, Jr.

Telephone: (650) 493-9300

Facsimile: (650) 493-6811

If to the Ramius Group:

Ramius Value and Opportunity Master Fund Ltd

c/o RCG Starboard Advisors, LLC

599 Lexington Avenue, 20th Floor

New York, New York 10022

Attention: Jeffrey C. Smith

Owen S. Littman

Telephone: (212) 845-8900

Facsimile: (212) 845-7986

with a copy (which shall not constitute notice to the Ramius Group) to:

Olshan Grundman Frome Rosenzweig & Wolosky LLP

Park Avenue Tower

65 East 55th Street

New York, New York 10022

Attention: Steve Wolosky

Andrew Freedman

Telephone: (212) 451-2300

Facsimile: (212) 451-2222

13.  Entire Agreement. This Agreement constitutes the entire agreement between the Parties
pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements,
understandings, negotiations and discussions of the Parties in connection with the subject matter
hereof.

14.  Counterparts; Facsimile. This Agreement may be executed in any number of counterparts and
by the Parties in separate counterparts, and signature pages may be delivered by facsimile, each of
which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

15.  Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

16.  Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of California, without regard to choice of law principles
that would compel the application of the laws of any other jurisdiction.

17.  Severability. In the event one or more of the provisions of this Agreement should, for
any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of this Agreement, and this
Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been
contained herein.

18.  Successors and Assigns. This Agreement shall not be assignable by any of the Parties.
This Agreement, however, shall be binding on successors of the Parties.

19.  Amendments. This Agreement may not be modified, amended, altered or supplemented except
upon the execution and delivery of a written agreement executed by all of the Parties.

20.  Further Action. Each Party agrees to execute such additional reasonable documents, and to
do and perform such reasonable acts and things necessary or proper to effectuate or further
evidence the terms and provisions of this Agreement.

[Signatures are on the following page.]

     

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first
above written.

ACTEL CORPORATION

By: /s/ David L. Van De Hey

Name: David L. Van De Hey

Title: VP & GC

THE RAMIUS GROUP:

Schedule A

The Ramius Group

RAMIUS VALUE AND OPPORTUNITY MASTER FUND LTD

PARCHE, LLC

 

RAMIUS ENTERPRISE MASTER FUND LTD

 

RCG PB, LTD

RCG STARBOARD ADVISORS, LLC

RAMIUS ADVISORS, LLC

 

RAMIUS LLC

C4S & CO., L.L.C.

JEFFREY M. SOLOMON

PETER A. COHEN

MORGAN B. STARK

THOMAS W. STRAUSS

ERIC J. ZAHLER

GAVIN T. MOLINELLI

JEFFREY C. SMITH

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