Document:

<PAGE>
                                                                   Exhibit 10.17

                                                                  Project L06276
                                                                  Contract 5F

                              AIA Document AlOl/CMa

                           STANDARD FORM OF AGREEMENT
                          BETWEEN OWNER AND CONTRACTOR

                 where the basis of payment is a STIPULATED SUM

                    1992 CONSTRUCTION MANAGER-ADVISER EDITION

      THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES; CONSULTATION WITH AN
     ATTORNEY IS ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION.

The 1992 Edition of AIA Document A201/CMa, General Conditions of the Contract
for Construction, Construction Manager-Adviser Edition, is adopted in this
document by reference. Do not use with other general conditions unless this
document is modified.

AGREEMENT

made as of the Nineteenth day of December in the year of Two Thousand Six
(in words, indicate day, month and year)

BETWEEN the Owner:                      Converted Organics of Woodbridge, LLC
(Name and address)                      99 Madison Avenue
                                        Fanwood, NJ 07023

and the Contractor:                     Hatzel and Buehler, Inc.
(Name and address)                      5A South Gold Drive
                                        Hamilton, NJ 08691

For the following Project:              Converted Organics of Woodbridge, LLC
(Include detailed description of        75 Crows Mill Road
Project, location, address and scope)   Keasbey, NJ

The Construction Manager is:            The Construction Partnership, Inc.
(Name and address)                      436 Creamery Way, Suite 100
                                        Exton, PA 19341

The Architect is:                       For the purposes of this Agreement all
(Name and address)                      references to "Architect" shall be
                                        intended to mean "Process Engineer".
                                        Process Engineer is:

                                             Weston Solutions, Inc.
                                             1 Wall Street
                                             Manchester, NH 03101

The Owner and Contractor agree as set forth below.

Copyright 1975, 1980, (C)1992 by The American Institute of Architects, 1735 New
York Avenue, N.W., Washington, D.C. 2OO06-5292. Reproduction of the material
herein or substantial quotation of its provisions without the written permission
of the AIA violates the copyright laws of the United States and will subject the
violator to legal prosecution

(LOGO)   AIA DOCUMENT A101/CMA - OWNER-CONTRACTOR AGREEMENT, CONSTRUCTION
         MANAGER-ADVISER EDITION - AIA(R) - (C)1992 - THE AMERICAN INSTITUTE OF
         ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006-5292 -
         WARNING: UNLICENSED PHOTOCOPYING VIOLATES U.S. COPYRIGHT LAWS AND WILL
         SUBJECT THE VIOLATOR TO LEGAL PROSECUTION.

                                                               A101/CMA-1992   1
<PAGE>

                                    ARTICLE 1
                             THE CONTRACT DOCUMENTS

The Contract Documents consist of this Agreement, Conditions of the Contract
(General, Supplementary and other Conditions), Drawings, Specifications, Addenda
issued prior to execution of this Agreement, other documents listed in this
Agreement and Modifications issued after execution of this Agreement; these form
the Contract, and areas fully a part of the Contract as if attached to this
Agreement or repeated herein. The Contract represents the entire and integrated
agreement between the parties hereto and supersedes prior negotiations,
representations or agreements, either written or oral. An enumeration of the
Contract Documents, other than Modifications, appears in Article 9.

                                    ARTICLE 2
                            THE WORK OF THIS CONTRACT

The Contractor shall execute the entire Work described in the Contract
Documents, except to the extent specifically indicated in the Contract Documents
to be the responsibility of others, or as follows:

Provide Electrical work in accordance with the Contractor's Proposal dated
November 13, 2006 and Contractor's letter, dated November 30, 2006, the Terms
and Conditions of which shall take precedence over any other contract document
including, but not limited to, the specifications listed in Attachment "A" and
drawings listed in Attachment "B". In the event of a conflict between said
proposal and any other contract documents, the said proposal shall be
controlling.

                                    ARTICLE 3
                 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

3.1 The date of commencement is the date from which the Contract Time of
Paragraph 3.2 is measured, and shall be the date of this Agreement, as first
written above, unless a different date is stated below or provision is made for
the date to be fixed in a notice to proceed issued by the Owner.

(Insert the date of commencement, if it differs from the date of this Agreement
or, if applicable, state that the date will be fixed in a notice to proceed.)

     DATE OF COMMENCEMENT SHALL BE FIXED WITHIN 45 DAYS OF THE DATE OF THIS
AGREEMENT.

Unless the date of commencement is established by a notice to proceed issued by
the Owner, the Contractor shall notify the Owner, through the Construction
Manager, in writing not less than five days before commencing the Work to permit
the timely filing of mortgages, mechanic's liens and other security interests.

3.2 The Contractor shall achieve Substantial Completion of the entire Work not
later than

(Insert the calendar date or number of calendar days after the date of
commencement Also insert any requirements for earlier Substantial Completion of
certain portions of the Work, if not stated elsewhere in the Contract
Documents.)

          425 DAYS FROM THE NOTICE TO PROCEED

, subject to adjustments of this Contract Time as provided in the Contract
Documents.

(Insert provisions, if any, for liquidated damages relating to failure to
complete on time)

AIA DOCUMENT A101/CMA - OWNER-CONTRACTOR AGREEMENT, CONSTRUCTION MANAGER-ADVISER
EDITION - AIA(R) - (C)1992 - THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK
AVENUE, N.W., WASHINGTON, D.C. 20006-5292 - WARNING: UNLICENSED PHOTOCOPYING
VIOLATES U.S. COPYRIGHT LAWS AND WILL SUBJECT THE VIOLATOR TO LEGAL PROSECUTION.

                                                               A101/CMA-1992   2

<PAGE>

                                    ARTICLE 4
                                  CONTRACT SUM

4.1 The Owner shall pay the Contractor in current funds for the Contractor's
performance of the Contract the Contract Sum of Two Million One Hundred Thirty
Four Thousand Dollars ($2,134,000), subject to additions and deductions as
provided in the Contract Documents.

4.2 The Contract Sum is based upon the following alternates, if any, which are
described in the Contract Documents and are hereby accepted by the Owner:

(State the numbers or other identification of accepted alternates. If decisions
on other alternates are to be made by the Owner subsequent to the execution of
this Agreement, attach a schedule of such other alternates showing the amount
for each and the date until which that amount is valid.)

4.3 Unit prices, if any, are as follows:

AIA DOCUMENT A101/CMA - OWNER-CONTRACTOR AGREEMENT, CONSTRUCTION
MANAGER-ADVISER EDITION - AIA(R) - (C)1992 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006-5292 - WARNING:
UNLICENSED PHOTOCOPYING VIOLATES U.S. COPYRIGHT LAWS AND WILL SUBJECT THE
VIOLATOR TO LEGAL PROSECUTION.

                                                               A101/CMA-1992   3

<PAGE>

                                    ARTICLE 5
                                PROGRESS PAYMENTS

5.1 Based upon Applications for Payment submitted by the Contractor to the
Construction Manager, and upon Project Applications and Certificates for Payment
issued by the Construction Manager and Architect, the Owner shall make progress
payments on account of the Contract Sum to the Contractor as provided below and
elsewhere in the Contract Documents.

5.2 The period covered by each Application for Payment shall be one calendar
month ending on the last day of the month, or as follows:

5.3 Provided an Application for Payment is submitted to the Construction Manager
not later than the 25th day of a month, the Owner shall make payment to the
Contractor not later than the 30th day of the following month. If an Application
for Payment is received by the Construction Manager after the application date
fixed above, payment shall be made by the Owner not later than 30 days after the
Construction Manager receives the Application for Payment.

5.4 Each Application for Payment shall be based upon the Schedule of Values
submitted by the Contractor in accordance with the Contract Documents. The
Schedule of Values shall allocate the entire Contract Sum among the various
portions of the Work and be prepared in such form and supported by such data to
substantiate its accuracy as the Construction Manager or Architect may require.
This schedule, unless objected to by the Construction Manager or Architect,
shall be used as a basis for reviewing the Contractor's Applications for
Payment.

5.5 Applications for Payment shall indicate the percentage of completion of each
portion of the Work as of the end of the period covered by the Application for
Payment.

5.6 Subject to the provisions of the Contract Documents, the amount of each
progress payment shall be computed as follows:

5.6.1 Take that portion of the Contract Sum properly allocable to completed Work
as determined by multiplying the percentage completion of each portion of the
Work by the share of the total Contract Sum allocated to that portion of the
work in the Schedule of Values, less retainage of Ten percent (10%) Pending
final determination of cost to the Owner of changes in the Work, amounts not in
dispute may be included as provided in Subparagraph 7.3.7 of the General
Conditions;

5.6.2 Add that portion of the Contract Sum properly allocable to materials and
equipment delivered and suitably stored at the site for subsequent incorporation
in the completed construction (or, if approved in advance by the Owner, suitably
stored off the site at a location agreed upon in writing), less retainage of ten
percent (10%);

5.6.3 Subtract the aggregate of previous payments made by the Owner; and

5.6.4 Subtract amounts, if any, for which the Construction Manager or Architect
has withheld or nullified a Certificate for Payment as provided in Paragraph
9.5 of the General Conditions.

5.7 The progress payment amount determined in accordance with Paragraph 5.6
shall be further modified under the following circumstances:

5.7.1 Add, upon Substantial Completion of the Work, a sum sufficient to increase
the total payments to One Hundred percent (100%) of the Contract Sum, less such
amounts as the Construction Manager recommends and the Architect determines for
incomplete Work and unsettled claims; and

5.7.2 Add, if final completion of the Work is thereafter materially delayed
through no fault of the Contractor, any additional amounts payable in accordance
with Subparagraph 9.10.3 of the General Conditions.

5.8 Reduction or limitation of retainage, if any, shall be as follows:

(If it is intended, prior to Substantial Completion of the entire Work, to
reduce or limit the retainage resulting from the percentages inserted in
Subparagraphs 5.6.1 and 5.6.2 above, and this is not explained elsewhere in the
Contract Documents, insert here provisions for such reduction or limitation.)

AIA DOCUMENT A101/CMA - OWNER-CONTRACTOR AGREEMENT. CONSTRUCTION MANAGER-ADVISER
EDITION - AIA(R) - (C)1902 - THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK
AVENUE, N.W., WASHINGTON, D.C. 20006-5292 - WARNING: UNLICENSED PHOTOCOPYING
VIOLATES U.S. COPYRIGHT LAWS AND WILL SUBJECT THE VIOLATOR TO LEGAL PROSECUTION.

                                                               A101/CMA-1992   4

<PAGE>

                                    ARTICLE 6
                                  FINAL PAYMENT

Final payment, constituting the entire unpaid balance of the Contract Sum, shall
be made by the Owner to the Contractor when (1) the Contract has been fully
performed by the Contractor except for the Contractor's responsibility to
correct nonconforming Work as provided in Subparagraph 12.2.2 of the General
Conditions and to satisfy other requirements, if any, which necessarily survive
final payment; and (2) a final Project Certificate for Payment has been issued
by the Construction Manager and Architect; such final payment shall be made by
the Owner not more than 30 days after the issuance of the final Project
Certificate for Payment, or as follows:

                                    ARTICLE 7
                            MISCELLANEOUS PROVISIONS

7.1 Where reference is made in this Agreement to a provision of the General
Conditions or another Contract Document, the reference refers to that provision
as amended or supplemented by other provisions of the Contract Documents.

7.2 Payments due and unpaid under the Contract shall bear interest from the date
payment is due at the rate stated below, or in the absence thereof, at the legal
rate prevailing from time to time at the place where the Project is located.

(Insert rate of interest agreed upon, if any.)

(Usury laws and requirements under the Federal Truth in Lending Act, similar
stale and local consumer credit laws and other regulations at the Owner's and
Contractor's principal places of business, the location of the Project and
elsewhere may affect the validity of this provision. Legal advice should be
obtained with respect to deletions or modifications, and also regarding
requirements such as written disclosures or waiters.)

7.3 Temporary facilities and services:

(Here insert temporary facilities and services which are different from or in
addition to those included elsewhere in the Contract Documents.)

7.4 Other Provisions:

(Here list any special provisions affecting the Contract.)

Insurance requirements shall be as set forth in the attached "Contractor's
Statement of Insurance Conditions".

The execution of this Agreement is continent on the Owner securing a letter from
the Bank of New York confirming financing if this project in the amount of a
minimum of $17,500,000 including $700,000 in contingency funds.

AIA DOCUMENT A101/CMA - OWNER-CONTRACTOR AGREEMENT, CONSTRUCTION MANAGER-ADVISER
EDITION - AIA(R) - (C)1992 - THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK
AVENUE, N.W., WASHINGTON, D.C. 20006-5292 - WARNING: UNLICENSED PHOTOCOPYING
VIOLATES U.S. COPYRIGHT LAWS AND WILL SUBJECT THE VIOLATOR TO LEGAL PROSECUTION.

                                                               A101/CMA-1992   5

<PAGE>

                                    ARTICLE 8
                            TERMINATION OR SUSPENSION

8.1 The Contract may be terminated by the Owner or the Contractor as provided in
Article 14 of the General Conditions.

8.2 The Work may be suspended by the Owner as provided in Article 14 of the
General Conditions.

                                    ARTICLE 9
                        ENUMERATION OF CONTRACT DOCUMENTS

9.1 The Contract Documents, except for Modifications issued after execution of
this Agreement, are enumerated as follows:

9.1.1 The Agreement is this executed Standard Form of Agreement Between Owner
and Contractor, AIA Document A101/CMa, 1992 Construction Manager-Adviser
Edition.

9.1.2 The General Conditions are the General Conditions of the Contract for
Construction, AIA Document A201/CMa, 1992 Construction Manager-Adviser Edition.

9.1.3 The Supplementary and other Conditions of the Contract are those contained
in the Project Manual dated _______________________________, and are as follows:

<TABLE>
<CAPTION>
DOCUMENT   TITLE   PAGES
--------   -----   -----
<S>        <C>     <C>

</TABLE>

9.1.4 The Specifications are those contained in the Project Manual dated as in
Subparagraph 9.1.3, and ace as follows:

(Either list the Specifications here or refer to an exhibit attached to this
Agreement)

<TABLE>
<CAPTION>
SECTION    TITLE   PAGES
--------   -----   -----
<S>        <C>     <C>

</TABLE>

                               See Attachment "A"

AIA DOCUMENT A101/CMA - OWNER-CONTRACTOR AGREEMENT, CONSTRUCTION MANAGER-ADVISER
EDITION - AIA(R) - (C)1992 - THE AMERICAN INSTITUTE OF ARCHITECTS. 1735 NEW YORK
AVENUE, N.W., WASHINGTON. DC 20006-5292 - WARNING: UNLICENSED PHOTOCOPYING
VIOLATES U.S. COPYRIGHT LAWS AND WILL SUBJECT THE VIOLATOR TO LEGAL PROSECUTION.

                                                                 A101/CMA-1992 6

<PAGE>

9.1.5 The Drawings are as follows, and are dated ___________________ unless a
different date is shown below.

(Either list the Drawings here or refer to an exhibit attached to this
Agreement.)

<TABLE>
<CAPTION>
NUMBER     TITLE   DATE
------     -----   ----
<S>        <C>     <C>

</TABLE>

                               See Attachment "B"

9.1.6 The Addenda, if any, are as follows:

<TABLE>
<CAPTION>
NUMBER     DATE    PAGES
------     ----    -----
<S>        <C>     <C>

</TABLE>

Portions of Addenda relating to bidding requirements are not part of the
Contract Documents unless the bidding requirements are also enumerated in this
Article 9.

AIA DOCUMENT A101/CMA - OWNER-CONTRACTOR AGREEMENT. CONSTRUCTION MANAGER-ADVISER
EDITION - AIA(R) - (C)1992 - THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK
AVENUE, N.W., WASHINGTON, DC 2OO06-5292 - WARNING: UNLICENSED PHOTOCOPYING
VIOLATES U.S. COPYRIGHT LAWS AND WILL SUBJECT THE VIOLATOR TO LEGAL PROSECUTION.

                                                               A101/CMA-1992   7

<PAGE>

9.1.7 Other documents, if any, forming part of the Contract Documents are as
follows:

(List here any additional documents which are intended to form part of the
Contract Documents The General Conditions provide that bidding requirements such
as advertisement or invitation to bid, Instructions to Bidders, sample forms and
the Contractor's bid are not part of the Contract Documents unless enumerated in
this Agreement. They should be listed here only if intended to be part of the
Contract Documents.)

This project is a New Jersey Economic Development Agency project. Contractor is
to meet all requirements of the NJEDA as stated in the meeting attended by
Construction Manager and Contractor on November 2, 2006. These items include but
are not limited to:

Prevailing wage requirements as documented in TCPI Meeting Minutes dated
November 2, 2006 and information package provided at the meeting (attached).

Affirmative action requirements as documented in TCPI meeting minutes dated
November 2, 2006 and information package provided at the meeting (attached).

NJEDA Exhibit "E" attached.

This Agreement is entered into as of the day and year first written above and is
executed in at least four original copies of which one is to be delivered to the
Contractor, one each to the Construction Manager and Architect for use in the
administration of the Contract, and the remainder to the Owner.

OWNER                                   CONTRACTOR

/s/ Edward Gildea                       /s/ Scott Eyester
-------------------------------------   ----------------------------------------
(Signature)                             (Signature)

EDWARD GILDEA, PRESIDENT                Scott Eyester - Vice President
(Printed name and title)                (Printed name and title)

(AIA LOGO)

CAUTION: You should sign an original AIA document which has this caution printed
in red. An original assures that changes will not be obscured as may occur when
documents are reproduced. See Instruction Sheet for Limited License for
Reproduction of this document.

AIA DOCUMENT A101/CMA - OWNER-CONTRACTOR AGREEMENT, CONSTRUCTION MANAGER-ADVISER
EDITION - AIA(R) - (C)1992 - THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK
AVENUE, N.W., WASHINGTON, D.C. 20006-5292 - WARNING: UNLICENSED PHOTOCOPYING
VIOLATES U.S. COPYRIGHT LAWS AND WILL SUBJECT THE VIOLATOR TO LEGAL PROSECUTION.

                                                               A101/CMA-1992   8

<PAGE>

                                 ATTACHMENT "A"

SPECIFICATION LIST (AS PREPARED BY WESTON SOLUTIONS, INC.)

<TABLE>
<CAPTION>
Title                                                             Revision
-----                                                             --------
<S>      <C>                                                      <C>
16000    Electrical Provisions                                       B
16010    Electrical General                                          B
16111    Conduit                                                     B
16114    Cable Trays                                                 B
16121    Medium Voltage Cable                                        B
16123    Wires and Cables                                            B
16130    Boxes                                                       B
16141    Wiring Devices                                              B
16170    Grounding & Bonding                                         B
16190    Supporting Devices                                          B
16195    Electrical Identification                                   B
16312    Unit Substation                                             B
16340    Medium Voltage Metal-Clad Switch Gear (C/B Switchgear)      B
16440    Disconnect Switches                                         B
16461    Dry Type Transformers                                       B
16470    Panelboards                                                 B
16480    Motor Control                                               B
16480A   Motor Control Center(s)                                     B
16510    Lighting Fixtures and Lamps                                 B
</TABLE>

<PAGE>

                                 ATTACHMENT "B"

DRAWING LIST (AS PREPARED BY CONVERTED ORGANICS)

<TABLE>
<S>    <C>
G-l    Solid Waste Receiving
G-2    Not Included
G-3    Macerator and Y Tank
G-4    Digesters
G-5    Digesters
G-6    Not Included
G-7    Primary Screen and Press Feed Tank
G-8    Rotary Press
G-9    Clarifier and Cooling Tower
G-10   Filtrate and Filtrate Catch Tank
G-11   Evaporator System
G-12   Dryer System
G-13   Not Included
G-14   Pelletizer and Bagger
G-15   Hot Water Recovery System
G-16   Wastewater Treatment
G-17   Process Vapor
G-l8   Process Odor Control System
G-19   Boiler System
G-20   Compressed Air System
</TABLE>

<PAGE>

(TCPI LOGO)                                             CONTRACTORS STATEMENT OF
The Construction Partnership, Inc.                          INSURANCE CONDITIONS

All contractors performing services for Owner are required to provide the
following insurance with insurance companies licensed in the State in which the
work is being performed prior to the performance of the work:

1.   The Contractor shall purchase insurance as described below in a company or
     companies properly licensed to do business in the State in which the work
     is being performed and acceptable to the Construction Manager. Such
     insurance shall be written for not less than the limits specified below, or
     the minimum limits specified in the prime contract, whichever requirement
     is greater. Coverages shall be kept in force without interruption from the
     date of commencement of the work until final payment and termination of any
     coverage required to be maintained after final payment.

          a.   Workers Compensation

               Statutory coverage and amounts as required by the State in which
               the work is being performed.

               Employers Liability
               $500,000 Each Accident
               $500,000 Aggregate for Injury By Disease
               $500,000 Each Employee for Injury By Disease

          b.   Commercial General Liability including Premises and Operations,
               XCU covering explosion, collapse and underground hazards,
               Independent Contractors Protective, Products and Completed
               Operations, Blanket Contractual Liability, Personal Injury and
               Broad Form Property damage.

               Bodily Injury and Property Damage Combined
               $1,000,000 Any One Occurrence (Coverage A)
               $1,000,000 Any One Person or Organization (Coverage B)
               $2,000,000 Products/Completed Operations Aggregate
               $2,000,000 General Aggregate
               $50,000 Fire Damage
               $5,000 Medical Expense

               The general aggregate limit shall apply on a per project basis.

               General Liability insurance shall be written on an "occurrence"
               basis. General Liability insurance shall name the Construction
               Manager, Owner and Architect as Additional Insureds on a primary
               and noncontributory basis via ISO endorsements CG2037 & CG2033 or
               an endorsement providing equivalent coverage to the Additional
               Insureds. Coverage for Additional Insureds must be as broad as
               coverage provided to the Named Insured. Coverage shall not be cut
               back or limited for Additional Insureds.

                                                                     Page 1 of 2

<PAGE>

               Products and Completed Operations coverage shall be extended to
               Additional Insureds and shall be maintained with the same limits
               as above for three years commencing with final acceptance and
               payment by the Construction Manager.

               Contractual Liability insurance shall cover the Contractor's
               obligations under the indemnification agreement included herein.

          c.   Comprehensive Automobile Liability including coverage for owned,
               hired and non-owned vehicles.

               Bodily Injury and Property Damage Combined
               $1,000,000 each accident

          d.   Umbrella Liability

               Bodily Injury and Property Damage Combined
               $1,000,000 Products/Completed Operations Aggregate
               $1,000,000 General Aggregate
               $1,000,000 Any One Occurrence (Coverage A)
               $1,000,000 Any One Person or Organization (Coverage B)

               The general aggregate limit shall apply on a per project basis.

               Umbrella liability insurance shall be written on an "occurrence"
               basis and shall name the Construction Manager, Owner and
               Architect as Additional Insureds on a primary and noncontributory
               basis. Coverage for Additional Insureds must be as broad as
               coverage provided to the Named Insured. Coverage shall not be cut
               back or limited for Additional Insureds.

               Contractor agrees to furnish an Acord certificate of insurance to
               the Construction Manager prior to commencement of work. Such
               certificate shall provide that the required insurance coverages
               will not be cancelled, non-renewed or materially changed unless
               at least thirty (30) days prior to written notice is given to
               Construction Manager.

2.   Subcontractors of any tier shall be required to maintain the same
     insurance, which is required of the Contractor.

3.   Qualification of Insurers: In order to determine financial strength and
     reputation of insurance carriers, all companies providing coverages
     required shall have financial rating not lower than A as listed in A.M.
     Best's Key Rating Guide, current edition. Companies with ratings lower than
     A will be acceptable only upon written consent of Construction Manager.

4.   Owner's or Construction Manager's insurance will not apply to machinery,
     tools and other non-expendable items of equipment owned or rented by
     subcontractor or its subcontractors or to other personal property of
     subcontractors, its subcontractors, or employees. TCPI shall not be liable
     for any loss or damage thereto.

5.   THE CERTIFICATES OF INSURANCE SHALL SPECIFY OWNER NAME, PROJECT TITLE AND
     PROJECT NUMBER. PLEASE HAVE YOUR AGENT FORWARD YOUR INSURANCE CERTIFICATE
     TO: THE CONSTRUCTION PARTNERSHIP, INC., 436 CREAMERY WAY, SUITE 100, EXTON,
     PA 19341.

                                                                     Page 2 of 2<PAGE>
                                                                   EXHIBIT 10.18

                                 PROMISSORY NOTE

$100,000                                                        OCTOBER 27, 2006
                                                                PORTLAND, OREGON

      FOR VALUE RECEIVED, Converted Organics Inc., a Delaware corporation
("Maker"), promises to pay to the order of Paulson Investment Company, Inc.
("Holder") the principal sum of One Hundred Thousand and no/l00ths Dollars
($100,000.00) (the "Obligation"). Interest on the Obligation shall accrue until
the Obligation is paid in full at the rate of ten percent (10%) per annum. The
Obligation and interest shall be payable in lawful money of the United States,
at Portland, Oregon or such other place as Holder hereof may designate.

      Interest shall be computed on the basis of a 365-day year or 366-day year,
as applicable, and actual days lapsed. Maker shall have the right to prepay at
any time in advance of maturity, without premium or penalty, all or any part of
the principal amount of this Promissory Note or interest thereon. Payments shall
be first applied to outstanding interest and thereafter to the principal.

      This Promissory Note shall be payable as follows:

      1.    If before December 31, 2006, this Promissory Note shall become due
            and payable in full at the time of the closing of the proposed
            public offering of securities of Maker pursuant to that certain
            Registration Statement on Form SB-2 (SEC File No. 333-135174) to be
            underwritten by a syndicate managed by Holder (the "Offering"). At
            the option of Holder, Holder may deduct such payment from the net
            proceeds otherwise payable by Holder to Maker at the closing of the
            Offering.

      2.    If after December 31, 2006, and the Offering has not closed or this
            Promissory Note has not been paid in full, this Promissory Note
            shall become due and payable in full thirty (30) days after any
            written or oral demand for payment by Holder.

      Maker waives diligence, presentment, demand, protest, and notice of any
kind whatsoever. The non-exercise by Holder of any of Holder's rights hereunder
in any instance shall not constitute a waiver thereof in that or any subsequent
instance.

<PAGE>

      Maker shall pay upon demand any and all expenses, including reasonable
attorney fees, incurred or paid by Holder without suit or action in attempting
to collect funds due under this Promissory Note. In the event an action is
instituted to enforce or interpret any of the terms of this Promissory Note
including, but not limited to, any action or participation by Maker in, or in
connection with, a case or proceeding under the U.S. Bankruptcy Code or any
successor statute, the prevailing party shall be entitled to recover all
expenses reasonably incurred at, before and after trial, on appeal, and on
review whether or not taxable as costs, including, without limitation,
attorneys' fees, witness fees (expert and otherwise), deposition costs, copying
charges and other expenses.

      This Promissory Note is to be construed in all respects and enforced
according to the laws of the State of Oregon.

      By order of and upon the authorization of the Board of Directors of
Converted Organics Inc.:

                                    "MAKER"

                                    CONVERTED ORGANICS INC.

                                    By:   /s/ Edward Gildea
                                        ----------------------------------------
                                    Its:  President
                                        ----------------------------------------

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