Document:

EX-10.1

THE REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL
NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION EXCEPT AS HEREIN PROVIDED AND THE REGISTERED
HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE OPTION FOR A PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED
BELOW) TO ANYONE OTHER THAN (I)        (THE “INITIAL HOLDER”) OR ANY OTHER UNDERWRITER
OR SELECTED DEALER PARTICIPATING IN THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF THE
INITIAL HOLDER OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

THIS PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO OCTOBER 14, 2010, ASSUMING THE SECURITIES
UNDERLYING THIS PURCHASE OPTION ARE COVERED BY AN EFFECTIVE REGISTRATION STATEMENT AND A CURRENT
PROSPECTUS IS AVAILABLE OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, IS AVAILABLE (AS DESCRIBED MORE FULLY IN THE COMPANY’S REGISTRATION STATEMENT (DEFINED
HEREIN)). THIS PURCHASE OPTION SHALL BE VOID AFTER 5:00 P.M EASTERN TIME, OCTOBER 14, 2014.

UNIT PURCHASE OPTION

FOR THE PURCHASE OF

* UNITS

OF

CONVERTED ORGANICS INC.

1. Purchase Option.

THIS CERTIFIES THAT, in consideration of $ ** duly paid by or on behalf of      
(the “Initial Holder”), as registered owner of this Purchase Option (this “Purchase
Option”), to CONVERTED ORGANICS INC. (the “Company”), the Initial Holder is entitled,
at any time or from time to time commencing on October 14, 2010 (the “Commencement Date”),
and at or before 5:00 p.m., Eastern Time, on October 14, 2014 (the “Expiration Date”),
which is five years from the effective date (the “Effective Date”) of the registration
statement (the “Registration Statement”) pursuant to which the Units (as defined below) are
offered for sale to the public (the “Offering”), but not thereafter, to subscribe for,
purchase and receive, in whole or in part, up to * units (the “Units”) of the Company, each
Unit consisting of one share of common stock of the Company, par value $0.0001 per share (the
“Common Stock”), and one Class H warrant to purchase one share of Common Stock at an
exercise price of $1.30 (each, a “Warrant” and together, the “Warrants”) expiring
on October 14, 2014. Each Warrant is the same as the warrants included in the Units being
registered for sale to the public by way of the Registration Statement (the “Public
Warrants”). If the Expiration Date is not a Business Day (as defined below), then this
Purchase Option may be exercised on the next succeeding Business Day in accordance with the terms
herein. During the period ending on the Expiration Date, the Company agrees not to take any action
that would terminate the Purchase Option. This Purchase Option is initially exercisable at $1.749
per Unit so purchased; provided, however, that upon the occurrence of any of the events specified
in Section 6 hereof, the rights granted by this Purchase Option, including the exercise price per
Unit and the number of shares of Common Stock included in the Units (and shares of Common Stock
underlying the Warrants) to be received upon such exercise, shall be adjusted as therein specified.

     

* The aggregate number of units subject to the unit purchase options is 300,000
units.

** The aggregate purchase price for the unit purchase options is $100.

The term “Exercise Price” shall mean the initial exercise price or the adjusted
exercise price, depending on the context.

The term “Holder” shall mean, as of any date, the Initial Holder and/or any transferee who
acquires this Purchase Option (in whole or in part) in accordance with Section 3.1 hereof.

The term “Business Day” shall mean any day, except a Saturday, Sunday or legal holiday on
which the banking institutions in the State of New York are authorized or obligated by law or
executive order to close.

2. Exercise.

2.1 Exercise Form. In order to exercise this Purchase Option, the exercise form attached
hereto must be duly executed and completed and delivered to the Company, together with this
Purchase Option and payment of the Exercise Price for the Units being purchased (payable in cash or
by certified check or official bank check). If the subscription rights represented hereby shall not
be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date, this Purchase Option
shall become null and void, without further force or effect, and all rights represented hereby
shall cease and expire.

2.2 Legend. Each certificate for the securities purchased under this Purchase Option shall
bear a legend as follows unless such securities are covered by an effective registration statement
under the Securities Act of 1933, as amended (the “Act”):

“The securities represented by this certificate have not been registered under the Securities Act
of 1933, as amended (“Act”), or applicable state law. The securities may not be offered for
sale, sold or otherwise transferred except pursuant to an effective registration statement under
the Act, or pursuant to an exemption from registration under the Act and applicable state law.”

2.3 Cashless Exercise.

2.3.1 Determination of Amount. In lieu of the payment of the Exercise Price multiplied by
the number of Units for which this Purchase Option is exercisable and in lieu of being entitled to
receive Units in the manner required by Section 2.1, the Holder shall have the right (but not the
obligation) to convert any exercisable but unexercised portion of this Purchase Option into Units
(the “Conversion Right”) as follows: upon exercise of the Conversion Right, the Company
shall deliver to the Holder (without payment by the Holder of any of the Exercise Price in cash)
that number of Units equal to the quotient obtained by dividing (x) the “Value” (as defined below)
of the portion of this Purchase Option being converted by (y) the “Current Market Price” (as
defined below) of the portion of the Purchase Option being converted. The “Value” of the
portion of this Purchase Option being converted shall equal the remainder derived from subtracting
(a) the product of (i) the Exercise Price multiplied by (ii) the number of Units underlying the
portion of this Purchase Option being converted from (b) the product of (i) Current Market Price of
a Unit multiplied by (ii) the number of Units underlying the portion of this Purchase Option being
converted. The “Current Market Price” of a Unit at any day shall mean (i) if the Units are listed
on a national securities exchange (including, without limitation, the NYSE Amex and the Nasdaq
Stock Market) or quoted on the OTC Bulletin Board (or any successor electronic inter-dealer
quotation system), the average closing price of a Unit for the thirty (30) trading days immediately
preceding the date of determination of the Current Market Price in the principal trading market for
the Units as reported by the exchange or the quotation system, as the case may be; (ii) if Units
are not listed on a national securities exchange or quoted on OTC Bulletin Board (or any successor
electronic inter-dealer quotation system), but is traded in the residual over-the-counter market,
the closing bid price for a Unit on the last trading day preceding the date in question for which
such quotations are reported by the Pink Sheets, LLC or similar publisher of such quotations; and
(iii) if the fair market value of the Units cannot be determined pursuant to clause (i) or (ii)
above, such price as the Board of Directors of the Company shall determine, in good faith.

2.3.2 Mechanics of Cashless Exercise. The Conversion Right described in this Section 2.3
may be exercised by the Holder on any Business Day on or after the Commencement Date and not later
than the Expiration Date by delivering this Purchase Option, with the duly executed exercise form
attached hereto and with the cashless exercise section completed, specifying the total number of
Units the Holder will purchase pursuant to such Conversion Right, to the Company.

2.4 No Obligation to Net Cash Settle. In no event will the Company be obligated to pay the
registered Holder of the Purchase Option any cash or otherwise “net cash settle” the Purchase
Option or the Warrants underlying the Purchase Option.

2.5 Warrant Exercise. Any Warrants underlying the Units shall be issued pursuant and
subject to the terms and conditions set forth in the Warrant Agreement, dated October 20, 2009,
among the Company, Computershare Inc. and Computershare Trust Company, N.A. (the “Warrant
Agreement”).

3. Transfer.

3.1 General Restrictions. The registered Holder of this Purchase Option, by its acceptance
hereof, agrees that, in accordance with the Financial Industry Regulatory Authority Inc. (FINRA)
Rule 5110(g)(1), it will not sell, transfer, assign, pledge or hypothecate this Purchase Option (in
whole or in part) or any interest herein for a period of one year following the Effective Date to
anyone other than (i) the Initial Holder or an underwriter or a selected dealer participating in
the Offering or (ii) a bona fide officer or partner of the Initial Holder or of any such
underwriter or selected dealer (each, a “Permitted Transferee”). On and after the first
anniversary of the Effective Date, this Purchase Option may be sold, transferred, assigned,
pledged, hypothecated or otherwise disposed of, in whole or in part, subject to compliance with
applicable securities laws. In order to make any permitted assignment, the Holder must deliver to
the Company the assignment form attached hereto duly executed and completed, together with the
Purchase Option and payment of all transfer taxes, if any, payable in connection therewith. The
Company shall, within five (5) Business Days following receipt thereof, transfer this Purchase
Option on the books of the Company and shall execute and deliver a new Purchase Option or Purchase
Options of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the
aggregate number of Units purchasable hereunder or such portion of such number as shall be
contemplated by any such assignment.

3.2 Restrictions Imposed by the Act. The securities evidenced by this Purchase Option shall
not be transferred unless and until (a) the Company has received a written opinion of counsel for
the Holder that the securities may be transferred pursuant to an exemption from registration under
the Act and applicable state securities laws, the availability of which is established to the
reasonable satisfaction of the Company (the Company hereby agrees that the opinion of Mintz, Levin,
Cohn, Ferris, Glovsky and Popeo, P.C. shall be deemed satisfactory evidence of the availability of
an exemption) or (b) a new registration statement or a post-effective amendment to the Registration
Statement relating to such securities has been filed by the Company and declared effective by the
Securities and Exchange Commission (the “Commission”), a current prospectus is available
and compliance with applicable state securities laws has been established.

4. New Purchase Options to be Issued.

4.1 Partial Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this
Purchase Option may be exercised or assigned in whole or in part. In the event of the exercise or
assignment hereof in part only, upon surrender of this Purchase Option for cancellation, together
with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price
(except to the extent the Holder elects to exercise this Purchase Option by means of a cashless
exercise as provided by Section 2.3 above) and/or transfer tax, the Company shall cause to be
delivered to the Holder without charge a new Purchase Option of like tenor to this Purchase Option
in the name of the Holder evidencing the right of the Holder to purchase the number of Units
purchasable hereunder as to which this Purchase Option has not been exercised or assigned. In
addition, the Company shall cause to be delivered to any Permitted Transferee without charge a new
Purchase Option of like tenor to this Purchase Option in the name of such transferee evidencing the
right of such transferee to purchase the number of Units purchasable hereunder as to which this
Purchase Option has been transferred to such transferee.

4.2 Lost Certificate. Upon receipt by the Company of evidence satisfactory to it of the
loss, theft, destruction or mutilation of this Purchase Option and of reasonably satisfactory
indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase
Option of like tenor and date. Any such new Purchase Option executed and delivered as a result of
such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on
the part of the Company.

5. Registration Rights.

5.1 General. As used in this Section 5, the term “Registrable Securities” means the
securities underlying this Purchase Option, including the Units, the shares of Common Stock and
Warrants issued as part of the Units and the shares of Common Stock underlying the Warrants;
provided, that, any such securities shall cease to be Registrable Securities when: (a) a
registration statement with respect to the sale of such securities shall have become effective
under the Act and such securities shall have been sold, transferred, disposed of or exchanged in
accordance with such registration statement; (b) such securities shall have been transferred
pursuant to Rule 144 of the Act (or any similar rule or regulation then in force), new certificates
for them not bearing a legend restricting further transfer shall have been delivered by the Company
and they may be publicly resold without volume or method of sale restrictions without registration
under the Securities Act; (c) such securities may be sold under Rule 144 by the Holder without
volume limitation restrictions; or (d) such securities shall have ceased to be outstanding. A
“majority” of the Registrable Securities shall be calculated by assuming that any outstanding
Purchase Options are exercised for Units in accordance with the terms of such Purchase Options and
that any Warrants are exercised for shares of Common Stock in accordance with the terms of such
Warrants.

5.2 Demand Registration.

5.2.1 Grant of Right. At any one time (and not more than one time) during the five-year
period following the Effective Date, the Holders of at least 51% of the Registrable Securities
(“Majority Holders”) may make a written demand for registration under the Act of all or
part of their Registrable Securities (a “Demand Registration”). Any request for a Demand
Registration (a “Demand Request”) shall specify the number and type of Registrable
Securities proposed to be sold and the intended method(s) of distribution thereof. The Company will
notify all Holders of Registrable Securities of the demand, and any Holder of Registrable
Securities who wishes to include all or a portion of such Holder’s Registrable Securities in the
Demand Registration shall so notify the Company within fifteen (15) Business Days following
delivery of the notice from the Company (such Holders who timely deliver notice together with the
Majority Holders, the “Demanding Holders”). The Company will then use its reasonable best
efforts (a) to prepare and file within sixty (60) days a new registration statement or a
post-effective amendment to the Registration Statement covering the resale of the Registrable
Securities which the Demanding Holders have requested to be registered and (b) to cause such
registration statement to be declared effective as soon as possible thereafter, subject to Section
5.2.4.

5.2.2 Terms. With respect to any offerings under this Section 5.2 other than offerings made
pursuant to Section 5.2.4, the Company shall bear all fees and expenses attendant to registering
the Registrable Securities, including the reasonable fees and expenses of one legal counsel
selected by the Majority Holders to represent them in connection with the sale of the Registrable
Securities, except that the Company shall not be required to pay any underwriting commissions
(which commissions, if any, shall be borne by the Demanding Holders participating in the
registration). The Company agrees to use its reasonable best efforts to qualify or register the
Registrable Securities in such States as are reasonably requested by the Majority Holder(s);
provided, however, that in no event shall the Company be required to register the Registrable
Securities in a state in which such registration would cause (a) the Company to be obligated to
qualify to do business in such state or would subject the Company to taxation as a foreign
corporation doing business in such jurisdiction or (b) the principal stockholders of the Company to
be obligated to escrow their shares of capital stock of the Company. The Company shall use its
reasonable best efforts to cause any registration statement or post-effective amendment filed
pursuant to the demand rights granted under Section 5.2.1 to remain effective for a period of
twelve (12) consecutive months from the effective date of such registration statement or
post-effective amendment, plus any period during which disposition of securities thereunder is
interfered with by any stop order or injunction of the Commission or any governmental agency or
court.

5.2.3 Effective Registration. A registration will not count as a Demand Registration until
the registration statement filed with the Commission with respect to such Demand Registration has
been declared effective and the Company has complied with all of its obligations under this
Agreement with respect thereto; provided, however, that if, after such registration statement has
been declared effective, the offering of Registrable Securities pursuant to a Demand Registration
is interfered with by any stop order or injunction of the Commission or any other governmental
agency or court, the registration statement with respect to such Demand Registration will be deemed
not to have been declared effective unless and until (i) such stop order or injunction is removed,
rescinded or otherwise terminated, and (ii) a majority-in-interest of the Demanding Holders
thereafter elect to continue the offering.

5.2.4 Underwritten Offerings. If a majority-in-interest (based on the number of Registrable
Securities being registered (assuming any securities exercisable for shares of Common Stock are so
exercised)) of the Demanding Holders so elect and such holders so advise the Company in writing as
part of the Demand Request, the offering of such Registrable Securities pursuant to such Demand
Registration shall be in the form of an underwritten offering. In such event, the right of any
Holder of Registrable Securities to include its Registrable Securities in such registration shall
be conditioned upon such Holder’s participation in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting to the extent provided herein. All Demanding
Holders proposing to distribute their securities through such underwriting shall enter into an
underwriting agreement in customary form with the underwriter or underwriters selected for such
underwriting by the majority-in-interest of the Demanding Holders. If the managing underwriter or
underwriters for a Demand Registration that is to be an underwritten offering advises the Company
and the Demanding Holders in writing that the dollar amount or number of Registrable Securities
which the Demanding Holders desire to sell, taken together with all other securities which the
Company desires to sell and all other securities, if any, as to which registration has been
requested pursuant to written contractual piggy-back registration rights held by other stockholders
of the Company, exceeds the maximum dollar amount or maximum number of securities that can be sold
in such offering without adversely affecting the proposed offering price, the timing, the
distribution method, or the probability of success of such offering (such maximum dollar amount or
maximum number of securities, as applicable, the “Maximum Number of Securities”), then the
Company shall include in such registration: (i) first, Registrable Securities as to which Demand
Registration has been requested by the Demanding Holders (allocated pro rata in accordance with the
number of shares or other securities that each such Person has requested be included in such
registration, regardless of the number of shares held by each such Person (such proportion is
referred to herein as “Pro Rata”)) that can be sold without exceeding the Maximum Number of
Securities; (ii) second, to the extent that the Maximum Number of Securities has not been reached
under the foregoing clause (i), securities that the Company desires to sell that can be sold
without exceeding the Maximum Number of Securities; and (iii) third, to the extent that the Maximum
Number of Securities have not been reached under the foregoing clauses (i) and (ii), securities for
the account of other persons that the Company is obligated to register pursuant to written
contractual piggy-back registration rights with such persons and that can be sold without exceeding
the Maximum Number of Securities.

5.2.5 Withdrawal. If a majority-in-interest of the Demanding Holders disapprove of the
terms of any underwriting or are not entitled to include all of their Registrable Securities in any
offering, such majority-in-interest of the Demanding Holders may elect to withdraw from such
offering by giving written notice to the Company and the underwriter or underwriters of their
request to withdraw prior to the effectiveness of the registration statement filed with the
Commission with respect to such Demand Registration. If the majority-in-interest of the Demanding
Holders withdraws from a proposed offering relating to a Demand Registration, then the Company
shall cease all efforts to secure such registration, and such registration shall not count as a
Demand Registration provided for in Section 5.2.

5.2.6 Permitted Delays. The Company shall be entitled to postpone, for up to sixty (60)
days from the date of receipt of a Demand Request, the filing of any registration statement under
this Section 5.2, if (a) at any time prior to the filing of such registration statement the
Company’s Board of Directors determines, in its good faith business judgment, that such
registration and offering would materially and adversely affect any financing, acquisition,
corporate reorganization, or other material transaction involving the Company, and (b) the Company
delivers to the Demanding Holders written notice thereof within five (5) business days from the
date of receipt of a Demand Request; provided, that the Company may not exercise this postponement
right more than once during any 12-month period.

5.3 “Piggy-Back” Registration.

5.3.1 Grant of Right. If at any time during the first seven years following the Effective
Date the Company proposes to file a registration statement under the Act with respect to an
offering of equity securities, or securities exercisable or exchangeable for, or convertible into,
equity securities, by the Company for its own account or for securityholders of the Company for
their accounts (or by the Company and by securityholders of the Company including, without
limitation, pursuant to Section 5.2.1), other than (A) a registration of securities relating solely
to an offering and sale to employees or directors of the Company pursuant to any employee stock
plan or other employee benefit plan arrangement, (B) a registration on Form S-4 or S-8 or any
successor form to such forms, (C) an exchange offer or offering of securities solely to the
Company’s existing stockholders, (D) an offering of debt that is convertible into equity
securities, (E) a dividend reinvestment plan, or (F) solely in connection with a merger,
consolidation or non-capital raising bona fide business transaction, then the Company shall (i)
give written notice of such proposed filing to the holders of Registrable Securities as soon as
practicable but in no event less than ten (10) days before the anticipated filing date, which
notice shall describe the amount and type of securities to be included in such offering, the
intended method(s) of distribution and the name of the proposed managing underwriter or
underwriters, if any, of the offering, and (ii) offer to the holders of Registrable Securities in
such notice the opportunity to register the sale of such number of shares of Registrable Securities
as such holders may request in writing within five (5) days following receipt of such notice (a
“Piggy-Back Registration”). The Company shall cause such Registrable Securities to be
included in such registration and shall use its reasonable best efforts to cause the managing
underwriter or underwriters of a proposed underwritten offering to permit the Registrable
Securities requested to be included in a Piggy-Back Registration to be included on the same terms
and conditions as any similar securities of the Company and to permit the sale or other disposition
of such Registrable Securities in accordance with the intended method(s) of distribution thereof.
All holders of Registrable Securities proposing to distribute their securities through a Piggy-Back
Registration that involves an underwriter or underwriters shall enter into an underwriting
agreement in customary form with the underwriter or underwriters selected for such Piggy-Back
Registration.

5.3.2 Terms. The Company shall bear all fees and expenses attendant to registering the
Registrable Securities, including the reasonable fees and expenses of any legal counsel selected by
a majority-in-interest of the Holders requesting inclusion of securities pursuant to Section 5.3 to
represent them in connection with the sale of the Registrable Securities, but the Holders shall pay
any and all underwriting commissions. The Company agrees to use its reasonable best efforts to
qualify or register the Registrable Securities in such states as are reasonably requested by the
majority-in-interest of the Holder(s); provided, however, that in no event shall the Company be
required to register the Registrable Securities in a state in which such registration would cause
(a) the Company to be obligated to qualify to do business in such state, or would subject the
Company to taxation as a foreign corporation doing business in such jurisdiction or (b) the
principal stockholders of the Company to be obligated to escrow their shares of capital stock of
the Company. The Company shall use its commercially reasonable efforts to cause any registration
statement or post-effective amendment filed pursuant to the “piggy-back” rights granted under
Section 5.3 to remain effective for a period of nine (9) consecutive months from the effective date
of such registration statement or post-effective amendment.

5.3.3 Underwritten Offerings. If the managing underwriter or underwriters for a Piggy-Back
Registration that is to be an underwritten offering advises the Company and the holders of
Registrable Securities in writing that the dollar amount or number of securities which the Company
desires to sell, taken together with the securities, if any, as to which registration has been
demanded pursuant to written contractual arrangements with persons other than the holders of
Registrable Securities and the Registrable Securities as to which registration has been requested
under Section 5.3, exceeds the Maximum Number of Securities, then the Company shall include in any
such registration:

(a) If the registration is undertaken for the Company’s account: (A) first, securities that the
Company desires to sell that can be sold without exceeding the Maximum Number of Securities; (B)
second, to the extent that the Maximum Number of Securities has not been reached under the
foregoing clause (A), Registrable Securities, as to which registration has been requested pursuant
to the applicable written contractual piggy-back registration rights of such securityholders, Pro
Rata, that can be sold without exceeding the Maximum Number of Securities; and (C) third, to the
extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A)
and (B), securities for the account of other persons that the Company is obligated to register
pursuant to written contractual piggy-back registration rights with such persons and that can be
sold without exceeding the Maximum Number of Securities; and

(b) If the registration is a “demand” registration undertaken at the demand of persons other than
either the holders of Registrable Securities, (A) first, securities for the account of the
demanding persons that can be sold without exceeding the Maximum Number of Securities; (B) second,
to the extent that the Maximum Number of Securities has not been reached under the foregoing clause
(A), securities that the Company desires to sell that can be sold without exceeding the Maximum
Number of Securities; (C) third, to the extent that the Maximum Number of Securities has not been
reached under the foregoing clauses (A) and (B), Registrable Securities, as to which registration
has been requested pursuant to the applicable written contractual piggy-back registration rights of
such securityholders, Pro Rata, that can be sold without exceeding the Maximum Number of
Securities; and (D) fourth, to the extent that the Maximum Number of Securities has not been
reached under the foregoing clauses (A), (B) and (C), securities for the account of other persons
that the Company is obligated to register pursuant to written contractual piggy-back registration
rights with such persons and that can be sold without exceeding the Maximum Number of Securities.

5.3.4 Maintenance of Priority. Until such time as the Company has registered the
Registrable Securities, so long as there are Registrable Securities hereunder, the Company shall
not grant to any person piggy-back rights superior to the rights of the Holders of Registrable
Securities hereunder.

5.3.5 Withdrawal. Any Holder of Registrable Securities may elect to withdraw such Holder’s
request for inclusion of Registrable Securities in any Piggy-Back Registration by giving written
notice to the Company of such request to withdraw at least five (5) Business Days prior to the
effectiveness of the Registration Statement. Notwithstanding any such withdrawal, the Company shall
pay all expenses incurred in connection with the withdrawn registration statement in accordance
with Section 5.3.2 above.

5.4 General Terms.

5.4.1 Indemnification. The Company shall indemnify the Holder(s) of the Registrable
Securities to be sold pursuant to any registration statement hereunder and each person, if any, who
controls any such Holder within the meaning of Section 15 of the Act or Section 20(a) of the
Securities Exchange Act of 1934, as amended (“Exchange Act”), against any loss, claim,
damage, expense or liability (including all reasonable attorneys’ fees and other expenses
reasonably incurred in investigating, preparing or defending against litigation, commenced or
threatened, or any claim whatsoever whether arising out of any action between the underwriter and
the Company or between the underwriter and any third party or otherwise) to which any of them may
become subject under the Act, the Exchange Act or otherwise, based upon such registration
statement, but only to the same extent and with the same effect as the provisions pursuant to which
the Company has agreed to indemnify the Initial Holder contained in Section 7 of the Underwriting
Agreement (the “Underwriting Agreement”) among the Company and the Initial Holder, as
representative of the Holders participating in the Offering, dated the Effective Date, pursuant to
which the Company has agreed to indemnify the Initial Holder. The Holder(s) of the Registrable
Securities to be sold pursuant to such registration statement, and their successors and assigns,
shall severally, and not jointly, indemnify the Company, its officers and directors and each
person, if any, who controls the Company within the meaning of Section 15 of the Act or Section
20(a) of the Exchange Act, against any loss, claim, damage, expense or liability (including all
reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or
defending against litigation, commenced or threatened, or any claim whatsoever) to which they may
become subject under the Act, the Exchange Act or otherwise, arising from information furnished by
or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in
such registration statement to the same extent and with the same effect as the provisions contained
in Section 7 of the Underwriting Agreement, pursuant to which the underwriters have agreed to
indemnify the Company.

5.4.2 Exercise of Purchase Options. Nothing contained in this Purchase Option shall be
construed as requiring the Holder(s) to exercise this Purchase Option or Warrants underlying this
Purchase Option prior to or after the initial filing of any registration statement or the
effectiveness thereof.

5.4.3 Documents Delivered to Holders. In case of an underwritten offering which includes
Registrable Securities pursuant to the terms hereof, the Company shall furnish, or cause to be
furnished, to the Initial Holder, as representative of the Holders participating in the offering,
(i) an opinion of counsel substantially in the form furnished to the underwriter or underwriters
and (ii) a comfort letter from the Company’s independent public accountants substantially in the
form furnished to the underwriter or underwriters; provided, that, comfort letters are at the time
being customarily furnished by independent public accountants to selling securityholders in similar
circumstances. The Company shall deliver promptly to the Initial Holder, as representative of the
Holders participating in the offering, copies of all correspondence between the Commission, on the
one hand, and the Company, its counsel and/or auditors, on the other hand, and permit the Initial
Holder, as representative of the Holders participating in the offering, to do such investigation,
upon reasonable advance notice, with respect to information contained in or omitted from the
registration statement as it deems reasonably necessary to comply with applicable securities laws
or rules of the Financial Industry Regulatory Authority. Such investigation shall include access to
books, records and properties and opportunities to discuss the business of the Company with its
officers and independent auditors, all to such reasonable extent and at such reasonable times and
as often as the Initial Holder, as representative of the Holders participating in the offering,
shall reasonably request. The Company shall not be required to disclose any confidential
information or other records to the Initial Holder, as representative of the Holders participating
in the offering, or to any other person, until and unless such persons shall have entered into
reasonable confidentiality agreements (in form and substance reasonably satisfactory to the
Company) with the Company with respect thereto.

5.4.4 Underwriting Agreement. If an underwritten offering is requested pursuant to Section
5.2.4, the Company shall enter into an underwriting agreement with the managing underwriter(s), if
any, selected by any Holders pursuant to Section 5.2.4 or Section 5.3.3, which managing underwriter
shall be reasonably acceptable to the Company. Such agreement shall be reasonably satisfactory in
form and substance to the Company, each participating Holder and such managing underwriter(s), and
shall contain such representations, warranties and covenants by the Company and such other terms as
are customarily contained in agreements of that type used by the managing underwriter. The
participating Holders shall be parties to any underwriting agreement relating to an underwritten
sale of their Registrable Securities and shall agree to such covenants and indemnification and
contribution obligations of selling stockholders as are customarily contained in agreements of that
type used by the managing underwriter. Further, such Holders shall execute appropriate custody
agreements and otherwise cooperate fully in the preparation of the registration statement and other
documents relating to any offering in which they include Registrable Securities pursuant to this
Section 5. Each Holder shall also furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of such securities as
shall be reasonably required to effect the registration of the Registrable Securities.

5.4.5 Obligation to Suspend Distribution. The Holder agrees, that upon receipt of any
notice from the Company of the happening of any event as a result of which the prospectus included
in any registration statement covering Registrable Securities, 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, such Holder will immediately discontinue disposition of Registrable Securities pursuant
to the Registration Statement covering such Registrable Securities until such Holder’s receipt of
the copies of a supplemental or amended prospectus, and, if so desired by the Company, such Holder
shall deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company
a certificate of such destruction) 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.

6. Adjustments.

6.1 Adjustments to Exercise Price and Number of Securities. The Exercise Price and the
number of securities underlying the Purchase Option shall be subject to adjustment from time to
time as hereinafter set forth:

6.1.1 Stock Dividends — Split-Ups. If after the date hereof, and subject to the provisions
of Section 6.3 below, the number of outstanding shares of Common Stock is increased by a stock
dividend payable in Common Stock or by a split-up of Common Stock or other similar event, then, on
the effective date thereof, the number of shares of Common Stock included in each of the Units
purchasable hereunder shall be increased in proportion to such increase in outstanding shares. In
such case, the number of shares of Common Stock, and the exercise price applicable thereto,
underlying the Warrants included in each of the Units purchasable hereunder shall be adjusted in
accordance with the terms of the Warrants. For example, if the Company declares a two-for-one stock
dividend and, at the time of such dividend, this Purchase Option entitles the holder to purchase
one Unit at a price of $1.749, upon effectiveness of the dividend, this Purchase Option will be
adjusted to allow for the purchase of one Unit at $1.749 per Unit, each Unit entitling the Holder
to receive two shares of Common Stock and two Warrants (each Warrant exercisable for $0.65 per
share).

6.1.2 Aggregation of Shares. If after the date hereof, and subject to the provisions of
Section 6.3, the number of outstanding shares of Common Stock is decreased by a consolidation,
combination or reclassification of Common Stock or other similar event, then, on the effective date
thereof, the number of shares of Common Stock included in each of the Units purchasable hereunder
shall be decreased in proportion to such decrease in outstanding shares. In such case, the number
of shares of Common Stock, and the exercise price applicable thereto, underlying the Warrants
included in each of the Units purchasable hereunder shall be adjusted in accordance with the terms
of the Warrants.

6.1.3 Replacement of Securities upon Reorganization, etc. In the case of any
reclassification or reorganization of the outstanding Common Stock other than a change covered by
Section 6.1.1 or 6.1.2 hereof or one that solely affects the par value of such Common Stock, or in
the case of any merger or consolidation of the Company with or into another corporation other than
a consolidation or merger in which the Company is the continuing corporation and which does not
result in any reclassification or reorganization of the outstanding Common Stock, or in the case of
any sale or conveyance to another corporation or entity of the property of the Company as an
entirety or substantially as an entirety in connection with which the Company is dissolved, the
Holder of this Purchase Option shall have the right thereafter (until the expiration of the right
of exercise of this Purchase Option) to receive upon the exercise hereof, for the same aggregate
Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of
stock or other securities or property (including cash) receivable upon such reclassification,
reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer,
by a holder of the number of shares of Common Stock of the Company obtainable upon exercise of this
Purchase Option and the underlying Warrants immediately prior to such event; and if any
reclassification also results in a change in shares of Common Stock covered by Section 6.1.1 or
6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3.
The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.

6.1.4 Changes in Form of Purchase Option. This form of Purchase Option need not be changed
because of any change pursuant to this Section, and Purchase Options issued after such change may
state the same Exercise Price and the same number of Units as are stated in the Purchase Options
initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new
Purchase Options reflecting a required or permissive change shall not be deemed to waive any rights
to an adjustment occurring after the Commencement Date or the computation thereof.

6.1.5 Adjustments of Warrants. To the extent the exercise price of the Warrants are changed
pursuant to Section 10 of the Warrant Agreement, either due to the anti-dilution provisions thereof
or otherwise, the exercise price of the Warrants underlying this Purchase Option shall be
proportionately changed. To the extent the duration of the Warrants is extended pursuant to the
Warrant Agreement or otherwise, the duration of the Warrants underlying this Purchase Option shall
be extended on identical terms.

6.2 Substitute Purchase Option. In the case of any consolidation of the Company with, or
merger of the Company with, or merger of the Company into, another corporation (other than a
consolidation or merger which does not result in any reclassification or change of the outstanding
Common Stock), the corporation formed by such consolidation or merger shall execute and deliver to
the Holder a supplemental Purchase Option providing that the holder of each Purchase Option then
outstanding or to be outstanding shall have the right thereafter (until the stated expiration of
such Purchase Option) to receive, upon exercise of such Purchase Option, the kind and amount of
shares of stock and other securities and property receivable upon such consolidation or merger, by
a holder of the number of shares of Common Stock of the Company for which such Purchase Option
might have been exercised immediately prior to such consolidation, merger, sale or transfer. Such
supplemental Purchase Option shall provide for adjustments which shall be identical to the
adjustments provided in this Section 6. The above provision of this Section 6 shall similarly apply
to successive consolidations or mergers. In the event of a merger or consolidation as described in
this Section, the Warrants underlying the Units shall be adjusted in accordance with and as set
forth in Section 12 of the Warrant Agreement.

6.3 Elimination of Fractional Interests. The Company shall not be required to issue
certificates representing fractions of shares of Common Stock or Warrants upon the exercise of this
Purchase Option, nor shall it be required to issue scrip or pay cash in lieu of any fractional
interests, it being the intent of the parties that all fractional interests shall be eliminated by
rounding any fraction up or down to the nearest whole number of Warrants, shares or other
securities, properties or rights.

6.4 Limitations on Monetary Damages. In no event shall the registered Holder of this
Purchase Option be entitled to receive any monetary damages if the securities underlying this
Purchase Option have not been registered by the Company pursuant to an effective registration
statement or a current prospectus is not available, provided the Company has fulfilled its
obligation to use reasonable best efforts to effect such registration and to make such prospectus
available.

7. Reservation and Listing. The Company shall at all times reserve and keep available out
of its authorized shares of Common Stock, solely for the purpose of issuance upon exercise of this
Purchase Option or the Warrants underlying this Purchase Option, such number of shares or other
securities, properties or rights as shall be issuable upon the exercise thereof. The Company
covenants and agrees that, upon exercise of this Purchase Option and payment of the Exercise Price
therefor, all shares of Common Stock and other securities issuable upon such exercise shall be duly
and validly issued, fully paid and non-assessable. The Company further covenants and agrees that
upon exercise of the Warrants underlying this Purchase Option and payment of the Warrant exercise
price therefor, all shares of Common Stock and other securities issuable upon such exercise shall
be duly and validly issued, fully paid and non-assessable. As long as this Purchase Option shall be
outstanding, the Company shall use its reasonable best efforts to cause all (a) Units issuable upon
exercise of this Purchase Option, (b) shares of Common Stock issuable upon exercise of this
Purchase Option, (c) Warrants issuable upon exercise of this Purchase Option, and (d) shares of
Common Stock issuable upon exercise of the Warrants included in the Units issuable upon exercise of
this Purchase Option to be listed (subject to official notice of issuance) on all securities
exchanges on which the Units, the shares of Common Stock or the Public Warrants issued in
connection with the Offering may then be listed and/or quoted.

8. Certain Notice Requirements.

8.1 Holder’s Right to Receive Notice. Nothing herein shall be construed as conferring upon
the Holder the right to vote or consent as a stockholder for the election of directors or any other
matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at any
time prior to the expiration of this Purchase Option and its exercise, any of the events described
in Section 8.2 below shall occur, then, in one or more of said events, the Company shall give
written notice of such event at least fifteen (15) days prior to the date fixed as a record date or
the date of closing the transfer books for the determination of the stockholders entitled to such
dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to
vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such
record date or the date of the closing of the transfer books, as the case may be. Notwithstanding
the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other
stockholders of the Company at the same time and in the same manner that such notice is given to
the stockholders.

8.2 Events Requiring Notice. The Company shall be required to give the notice described in
Section 8.1 upon the following events: (a) the Company shall offer to all the holders of its Common
Stock any additional shares of capital stock of the Company or securities convertible into or
exchangeable for shares of capital stock of the Company, or any option, right or warrant to
subscribe therefor, (b) the Company shall take a record of the holders of its Common Stock for the
purpose of entitling them to receive a dividend or distribution payable other than in cash, or a
cash dividend or distribution payable other than out of retained earnings, as indicated by the
accounting treatment of such dividend or distribution on the books of the Company, or (c) the
dissolution, liquidation or winding up of the Company (other than in connection with a
consolidation or merger) or a sale of all or substantially all of its property, assets and business
shall be proposed.

8.3 Notice of Change in Number of Securities. The Company shall, promptly after an event
requiring an adjustment in the number of shares of Common Stock underlying this Purchase Option or
the Warrants, send notice to the Holders of such event and change (“Change Notice”). The
Change Notice shall describe the event causing the change and the method of calculating the change
and shall be certified as being true and accurate by the Company’s Chief Executive Officer,
President or Chief Financial Officer.

8.4 Transmittal of Notices. All notices, requests, consents and other communications under
this Purchase Option shall be in writing and shall be deemed to have been duly made when hand
delivered, sent by facsimile (with confirmation of both transmission and receipt thereof and an
additional copy sent by overnight delivery service), or mailed by express mail or private courier
service: (a) if to the registered Holder of the Purchase Option, to the address of such Holder as
shown on the books of the Company, or (b) if to the Company, to the following address or to such
other address as the Company may designate by notice to the Holders:

	 
	Converted Organics Inc.

7A Commercial Wharf West

Boston, MA 02110

Attn: Edward J. Gildea

Fax: (617) 624-0333

9. Miscellaneous.

9.1 Amendments. The Company and the Initial Holder may from time to time supplement or
amend this Purchase Option without the approval of any of the Holders in order to cure any
ambiguity, to correct or supplement any provision contained herein that may be defective or
inconsistent with any other provisions herein, or to make any other provisions in regard to matters
or questions arising hereunder that the Company and the Initial Holder may deem necessary or
desirable and that the Company and the Initial Holder deem shall not adversely affect the interest
of the Holders. All other modifications or amendments to this Purchase Option shall require the
written consent of and be signed by the Holder hereof.

9.2 Headings. The headings contained herein are for the sole purpose of convenience of
reference, and shall not in any way limit or affect the meaning or interpretation of any of the
terms or provisions of this Purchase Option.

9.3 Entire Agreement. This Purchase Option (together with the other agreements and
documents being delivered pursuant to or in connection with this Purchase Option) constitutes the
entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes
all prior agreements and understandings of the parties, oral and written, with respect to the
subject matter hereof.

9.4 Binding Effect. This Purchase Option shall inure solely to the benefit of and shall be
binding upon, the Holder and the Company and their respective successors, legal representatives and
permitted assigns, and no other person shall have or be construed to have any legal or equitable
right, remedy or claim under or in respect of or by virtue of this Purchase Option or any
provisions herein contained.

9.5 Governing Law; Submission to Jurisdiction. This Purchase Option shall be governed by
and construed and enforced in accordance with the laws of the State of New York, without giving
effect to conflict of laws. The Company hereby agrees that any action, proceeding or claim against
it arising out of, or relating in any way to this Purchase Option shall be brought and enforced in
the courts of the State of New York or of the United States of America for the Southern District of
New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The
Company hereby waives any objection to such exclusive jurisdiction and that such courts represent
an inconvenient forum. Any process or summons to be served upon the Company may be served by
transmitting a copy thereof by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed
personal service and shall be legal and binding upon the Company in any action, proceeding or
claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be
entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses
relating to such action or proceeding and/or incurred in connection with the preparation therefor.

9.6 Waiver, etc. The failure of the Company, the Initial Holder or any Holder to at any
time enforce any of the provisions of this Purchase Option shall not be deemed or construed to be a
waiver of any such provision, nor to in any way affect the validity of this Purchase Option or any
provision hereof or the right of the Company, the Initial Holder or any Holder to thereafter
enforce each and every provision of this Purchase Option. No waiver of any breach, non-compliance
or non-fulfillment of any of the provisions of this Purchase Option shall be effective unless set
forth in a written instrument executed by the party or parties against whom or which enforcement of
such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be
construed or deemed to be a waiver of any other or subsequent breach, non-compliance or
non-fulfillment.

9.7 Execution in Counterparts. This Purchase Option may be executed in one or more
counterparts, and by the different parties hereto in separate counterparts, each of which shall be
deemed to be an original, but all of which taken together shall constitute one and the same
agreement, and shall become effective when one or more counterparts has been signed by each of the
parties hereto and delivered to each of the other parties hereto.

9.8 Exchange Agreement. As a condition of the Holder’s receipt and acceptance of this
Purchase Option, the Holder agrees that, at any time prior to the complete exercise of this
Purchase Option by the Holder, if the Company and the Initial Holder enter into an agreement
(“Exchange Agreement”) pursuant to which they agree that all outstanding Purchase Options
will be exchanged for securities or cash or a combination of both, then the Holder shall agree to
such exchange and become a party to the Exchange Agreement.

[Remainder of this page left intentionally blank. Signature pages to follow.]

1

IN WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by its duly authorized
officer as of the 20th day of October, 2009.

CONVERTED ORGANICS INC.

By:      

Name:

Title:

Form to be used to exercise Purchase Option:

Converted Organics Inc.

7A Commercial Wharf West

Boston, MA 02110

Date:              , 20      

The undersigned hereby irrevocably elects to exercise all or a portion of the within Purchase
Option and to purchase Units of CONVERTED ORGANICS INC. and hereby makes payment of $       
(at the rate of $    per Unit) in payment of the Exercise Price pursuant thereto. Please
issue the Common Stock and Warrants as to which this Purchase Option is exercised in accordance
with the instructions given below.

or

The undersigned hereby irrevocably elects to convert its right to purchase Units purchasable
under the within Purchase Option by surrender of the unexercised portion of the attached Purchase
Option (with a value of $     ). Please issue the securities comprising the Units as to which this
Purchase Option is exercised in accordance with the instructions given below.

      

Signature

      

Signature Guaranteed

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

Name— (Print in Block Letters)

Address—

NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE
WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR
BY A FIRM HAVING MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

2

Form to be used to assign Purchase Option:

Converted Organics Inc.

7A Commercial Wharf West

Boston, MA 02110

ASSIGNMENT

(To be executed by the registered Holder to effect a transfer of the within Purchase Option):

FOR VALUE RECEIVED, does hereby sell, assign and transfer unto the right to purchase Units of
CONVERTED ORGANICS INC. (“Company”) evidenced by the within Purchase Option and does hereby
authorize the Company to transfer such right on the books of the Company.

Date:              , 20      

      

Signature

      

Signature Guaranteed

NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE
WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR
BY A FIRM HAVING MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

4728493v.7

3EX-10.2

CONVERSION AGENT AGREEMENT

This Conversion Agent Agreement (the “Agreement”) is entered into as of this 20th
day of October, 2009, between Converted Organics Inc., a company organized and existing under the
laws of the State of Delaware (the “Company”), and Computershare Inc., a Delaware corporation and
its fully owned subsidiary Computershare Trust Company, N.A., a national banking association doing
business at 250 Royall Street, Canton, Massachusetts (in its capacity as Conversion Agent,
including the performance of the Unclaimed Property and Lost Holders services as provided herein,
collectively the “Conversion Agent”, the “Transfer Agent” or the “Registrar” or individually
“Computershare” and the “Trust Company”, respectively),

WHEREAS, Computershare Trust Company, N.A. is presently the Transfer Agent and Registrar for
Company’s common stock, $0.0001 par value per share (the “Common Stock”), Company Class H warrants
(each, a “Warrant,” and together, the “Warrants”) and Company units (each unit consisting of one
share of Common Stock and one Warrant, each, a “Unit,” and together, the “Units”); and

WHEREAS, Company desires that Computershare Trust Company, N.A., and Computershare Inc. act as
Conversion Agent in connection with the conversion of such Units, and Computershare Trust Company,
N.A. and Computershare Inc. have indicated their willingness to do so.

NOW, THEREFORE, in consideration of the mutual covenants contained herein the parties hereto
agree as follows:

1. Appointment of Conversion Agent.

Company hereby appoints the Trust Company and Computershare as Conversion Agent for the
purpose of converting Units into Common Stock and Warrants. The Trust Company and Computershare
hereby agree to serve as such, upon the terms and conditions set forth herein.

2. Notification and Processing.

The Conversion Agent is hereby authorized and directed, and hereby agrees to:

A. The Conversion Agent is hereby authorized and directed, and hereby agrees to accept each
Unit in book entry and certificate form surrendered for conversion into one share of Common Stock
and one Warrant.

B. Mail, first class mail, postage prepaid, as soon as practicable, following the receipt of
written instructions from the Company, to each holder of record of Units certificates the following
material: (a) a copy of the Conversion Notice, including the Guidelines for Certification of
Taxpayer Identification Number on Substitute Form W-9, if applicable, relating to the Units, (b) an
envelope addressed to the Conversion Agent for use by such holder in exchanging his or her Units
for Common Stock and Warrants, and (c) a copy of the letter from the Company to holders of Units in
the form provided by the Company.

C. Receive and examine all Units submitted for conversion and accompanying Conversion Notice
for proper execution in accordance with the terms thereof. Such examination shall include
determination that such Units are in proper form for transfer on the share registry books of the
Transfer Agent and verification that no stop order has been issued against the Units represented by
the surrendered certificates by reason of loss, theft, destruction or other invalidity. If more
than one person is the record holder of any such Units, the Conversion Notice must be signed by
each record holder. Certificates held by “Affiliates” (as defined in paragraph M, below) should be
treated in accordance with said paragraph M.

D. Retain or return to holders (as applicable) those conversion documents evidencing some
deficiency in execution and make reasonable attempts to inform the former Unit holders of the need
to correct such deficiency.

E. Accept conversions signed by persons acting in a fiduciary or representative capacity only
if such capacity is shown on the Conversion Notice and proper evidence of their authority so to act
has been submitted.

F. Accept conversions from persons alleging loss, theft or destruction of their certificates
upon receipt of an appropriate affidavit of loss, applicable processing fee and a corporate bond of
indemnity which shall include indemnification of the Company and the Conversion Agent for the Units
evidenced by such certificate or certificates by a surety all in such form and substance as have
been approved by the Conversion Agent.

G. Accept conversions for the Common Stock and Warrants to be issued other than in the name
that appears on the Units submitted for conversion, where (i) such Units are duly endorsed or
accompanied by appropriately signed stock powers, (ii) the signature thereon is guaranteed by a
participant in a signature guarantee program approved by the Securities Transfer Association, and
(iii) any necessary stock transfer taxes are paid and proof of such payment is submitted or funds
therefore are provided to the Conversion Agent, or it is established by the holder that no such
taxes are due and payable.

H. Issue, as Transfer Agent and Registrar for the Company’s Common Stock and Warrants, upon
surrender of Units and properly executed Conversion Notice, one share of Common Stock and one
Warrant, registered in such names as are appropriate pursuant to properly executed Conversion
Notice, for every Units represented by such Certificate(s); provided that no fractional shares of
Common Stock or Warrants shall be issued. Arrange for the issuance of single certificates for all
the shares of Common Stock and Warrants to which each holder is entitled (“Company Certificates”)
or Statement of Holding reflecting new shares of the Company’s Common Stock and Warrants in the
Direct Registration System, unless such holder has attached written instructions to the contrary to
his or her Conversion Notice.

I. As Transfer Agent and Registrar, record and countersign the Company Certificates in such
names and in such amounts as the Conversion Agent may request in writing and deliver such
certificates to or upon the written order of the Conversion Agent.

J. Cancel, as Conversion Agent, all Units accepted for conversion and retain such Units
pending further instructions from Company.

K. Promptly deliver, in accordance with the instructions in the Conversion Notice, the
Company Certificates issued as provided in paragraph H above.

L. If appropriate, deliver the Company Certificates or Statements of Holding by first class
mail under the provisions of the Conversion Agent’s first class mail bond protecting the Conversion
Agent from loss or liability arising out of the non-receipt or non-delivery of such Company
Certificates or Statements of Holding or arising out of the replacement thereof, for any deliveries
where market value does not exceed the amount of the Conversion Agent’s first class mail bond. Any
mail delivery exceeding such amount shall be delivered by registered mail or overnight mail and
shall be insured separately for the replacement value of its contents at the time of mailing.

M. When Units registered in the name of any “Affiliate” (listed on Exhibit B hereto which
shall be provided to the Conversion Agent prior to the conversion are surrendered):

(1) Arrange for the issuance of Company Certificates in the name of any other person only
with the proper approval of the Company.

(2) Issue in exchange therefor, as Transfer Agent and Registrar for the Company Common Stock
and Warrants, Company Certificates with a legend in the form set forth on Exhibit C hereto
applied to each of such certificates.

N. Create a special account for the issuance of Common Stock and Warrants to Unit holders who
have not yet surrendered Units. When any such Units are surrendered, convert them for Company
Certificates. The Company shall provide an opinion of counsel prior to the conversion date to set
up a reserve of Common Stock and Warrants. The opinion shall state that all Common Stock and
Warrants are:

(1) registered under the Securities Act of 1933, as amended, and all appropriate State
securities law filings have been made with respect to the shares; and

(2) validly issued, fully paid and non-assessable.

O. At the request of the Company, return to the Company any and all necessary records,
information and material concerning and representing unconverted Units.

P. Maintain on a continuing basis a list of holders who have not yet converted their Units.

Q. Accept and respond to all telephone requests for information relative to the conversion of
Units in connection with the conversion.

1

	 	 	 
	3.	 	Concerning the Conversion Agent and the Company.
	 	 	The Conversion Agent:

A. shall have no duties or obligations other than those specifically set forth herein or as
may subsequently be requested of the Conversion Agent by the Company with respect to the
conversion;

B. may rely on and shall be held harmless by the Company in acting upon any certificate,
instrument, opinion, notice, letter, facsimile transmission, telegram or other document, or any
security delivered to it, and reasonably believed by it to be genuine and to have been signed by
the proper party or parties;

C. may rely on and shall be held harmless in acting upon written or oral instructions from the
Company with respect to any matter relating to its acting as Conversion Agent specifically covered
by this Agreement; and

D. may consult with counsel satisfactory to it (including counsel for the Company) and shall
be held harmless in relying on the written advice or opinion of such counsel in respect of any
action taken, suffered or omitted by it hereunder in good faith and in accordance with such advice
or opinion of such counsel.

The Company shall immediately advise the Conversion Agent of any changes in the conversion
rate or price to be used in calculating the fractional share cash-in-lieu payment, if any.

4. Compensation of the Conversion Agent by the Company.

The Company shall pay fees for the services rendered hereunder, as set forth in the attached
Fee Schedule. The Conversion Agent shall also be entitled to reimbursement from the Company for
all reasonable and necessary expenses paid or incurred by it in connection with the administration
by the Conversion Agent of its duties hereunder.

5. Unclaimed Property and Lost Holders.

The Conversion Agent shall report unclaimed property to each state in compliance with state
laws and shall comply with Section 17Ad-17 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), for lost Holders.  The Conversion Agent will charge the Company its standard fees
plus out-of-pocket expenses (including the cost of due diligence mailings) for such services. The
Company acknowledges and agrees that in the case of reports made and property delivered pursuant to
an initial or voluntary compliance program administered by private auditing agents retained by
state unclaimed property administrators, the Conversion Agent will be compensated for its efforts
in facilitating the Company’s involvement in such a program including the provision of the
necessary records and remittance of property in the manner required by the program by means of an
expense reimbursement payment based on a percentage of the property remitted to the states through
participation in the program. The Company will not be charged for any services performed by the
Conversion Agent in conjunction with the program to the extent that the Conversion Agent receives
an expense reimbursement and agrees to reimburse the Conversion Agent for any out-of-pocket
expenses incurred in the performance of such services. The Company acknowledges and agrees that for
purposes of compliance with applicable state unclaimed property laws, the commencement of the
running of any applicable dormancy period relating to owner property consisting of the distribution
of cash and/or shares pursuant to the terms of this agreement.

6. Indemnification/Limitation of Liability.

The Company covenants and agrees to indemnify and to hold the Conversion Agent harmless
against any costs, expenses (including reasonable fees of its legal counsel), losses or damages,
which may be paid, incurred or suffered by or to which it may become subject, arising from or out
of, directly or indirectly, any claims or liability resulting from its actions as Conversion Agent
(including as Conversion Agent the provision of services under §§ 5 herein) pursuant hereto;
provided, that such covenant and agreement does not extend to, and the Conversion Agent shall not
be indemnified with respect to, such costs, expenses, losses and damages incurred or suffered by
the Conversion Agent as a result of, or arising out of, its gross negligence, bad faith, or willful
misconduct.

Promptly after the receipt by the Conversion Agent of notice of any demand or claim or the
commencement of any action, suit, proceeding or investigation, the Conversion Agent shall, if a
claim in respect thereof is to be made against the Company, notify the Company thereof in writing.
The Company shall be entitled to participate at its own expense in the defense of any such claim or
proceeding, and, if it so elects at any time after receipt of such notice, it may assume the
defense of any suit brought to enforce any such claim or of any other legal action or proceeding.
For the purposes of this Section 6, the term “expense or loss” means any amount paid or payable to
satisfy any claim, demand, action, suit or proceeding settled with the express written consent of
the Conversion Agent, and all reasonable costs and expenses, including, but not limited to,
reasonable counsel fees and disbursements, paid or incurred in investigating or defending against
any such claim, demand, action, suit, proceeding or investigation.

The Conversion Agent shall be responsible for and shall indemnify and hold the Company
harmless from and against any and all losses, damages, costs, charges, counsel fees, payments,
expenses and liability arising out of or attributable to the Conversion Agent’s refusal or failure
to comply with the terms of this Agreement, or which arise out of Conversion Agent’s negligence or
willful misconduct or which arise out of the breach of any representation or warranty of the
Conversion Agent hereunder, for which the Conversion Agent is not entitled to indemnification under
this Agreement; provided, however, that Conversion Agent’s aggregate liability during any term of
this Agreement with respect to, arising from, or arising in connection with this Agreement, or
from all services provided or omitted to be provided under this Agreement, whether in contract, or
in tort, or otherwise, is limited to, and shall not exceed, the amounts paid under this Agreement
by the Company to Conversion Agent as fees and charges, but not including reimbursable expenses.

Promptly after the receipt by the Company of notice of any demand or claim or the commencement
of any action, suit, proceeding or investigation, the Company shall, if a claim in respect thereof
is to be made against the Conversion Agent, notify the Conversion Agent thereof in writing. The
Conversion Agent shall be entitled to participate at its own expense in the defense of any such
claim or proceeding, and, if it so elects at any time after receipt of such notice, it may assume
the defense of any suit brought to enforce any such claim or of any other legal action or
proceeding. For the purposes of this Section 6, the term “expense or loss” means any amount paid
or payable to satisfy any claim, demand, action, suit or proceeding settled with the express
written consent of the company, and all reasonable costs and expenses, including, but not limited
to, reasonable counsel fees and disbursements, paid or incurred in investigating or defending
against any such claim, demand, action, suit, proceeding or investigation.

7. Further Assurance.

From time-to-time and after the date hereof, the Company shall deliver or cause to be
delivered to the Conversion Agent such further documents and instruments and shall do and cause to
be done such further acts as the Conversion Agent shall reasonably request (it being understood
that the Conversion Agent shall have no obligation to make any such request) to carry out more
effectively the provisions and purposes of this Conversion Agent Agreement, to evidence compliance
herewith or to assure itself that it is protected in acting hereunder.

8. Term.

This Agreement shall remain in effect until (a) all Unit holders have exchanged their Units or
all checks have been reported as unclaimed property to the appropriate state; (b) it is terminated
by either party upon a material breach of this Agreement which remains uncured for 30 days after
written notice of such breach has been provided; or (c) 30 days’ written notice has been provided
by either party to the other. Upon the effective date of such termination, all cash and other
payments, and all other property then held by the Conversion Agent hereunder shall be delivered by
it to such successor agent or as otherwise shall be designated in writing by the parties hereto.
Upon termination of the Agreement, the Conversion Agent shall retain all canceled certificates and
related documentation as required by applicable law.

9. Notices.

Until further notice in writing by either party hereto to the other party, all written
reports, notices and other communications between the Conversion Agent and the Company required or
permitted hereunder shall be delivered or mailed by first class mail, postage prepaid, addressed as
follows; provided that activity reports prepared by the Conversion Agent and sent to the Company
shall be sent by e-mail or fax to:

If to the Company, to:

Converted Organics Inc.

7A Commercial Wharf West

Boston MA 02110

Attention: President

If to the Conversion Agent, to:

Computershare Trust Company, N.A.

c/o Computershare Inc.

250 Royall Street

Canton, Massachusetts 02021

Attn: Reorganization Department

10. Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts and shall inure to the benefit of and the obligations created hereby
shall be binding upon the successors and assigns of the parties hereto.

11. Assignment.

A. Except as provided in Section 11(B) below, neither this Agreement nor any rights or
obligations hereunder may be assigned by either party without the written consent of the other
party. Notwithstanding the foregoing, Conversion Agent may, without further consent of the Company,
assign any of its rights and duties hereunder to any affiliated entity as Conversion Agent may deem
appropriate to carry out the terms of this Agreement.

B. The Conversion Agent may, without further consent on the part of the Company, subcontract
for the performance hereof with other subcontractors for systems, processing, telephone and mailing
services, and post-conversion clean up activities, as may be required from time to time; provided,
however, that the Conversion Agent shall be as fully responsible to the Company for the acts and
omissions of any subcontractor as it is for its own acts and omissions.

C. Except as explicitly stated elsewhere in this Agreement, nothing under this Agreement
shall be construed to give any rights or benefits in this Agreement to anyone other than the
Conversion Agent and the Company and the duties and responsibilities undertaken pursuant to this
Agreement shall be for the sole and exclusive benefit of the Conversion Agent and the Company.
This Agreement shall inure to the benefit of and be binding upon the parties and their respective
permitted successors and assigns.

12. Amendment.

This Agreement may not be changed orally or modified, amended or supplemented without an
express written agreement executed by each of the parties hereto.

13. Counterparts.

This Agreement may be executed in separate counterparts, each of which when executed and
delivered shall be an original, but all such counterparts shall together constitute but one and the
same instrument.

14. Third Party Beneficiaries.

This Agreement does not constitute an agreement for a partnership or joint venture between the
Conversion Agent and the Company. Neither party shall make any commitments with third parties that
are binding on the other party without the other party’s prior written consent.

15. Force Majeure.

In the event either party is unable to perform its obligations under the terms of this
Agreement because of acts of God, terrorists acts, strikes, equipment or transmission failure or
damage reasonably beyond its control, or other cause reasonably beyond its control, such party
shall not be liable for damages to the other for any damages resulting from such failure to perform
or otherwise from such causes. Performance under this Agreement shall resume when the affected
party or parties are able to perform substantially that party’s duties.

16. Consequential Damages.

Neither party to this Agreement shall be liable to the other party for any consequential,
indirect, special or incidental damages under any provision of this Agreement or for any
consequential, indirect, special or incidental damages arising out of any act or failure to act
hereunder even if that party has been advised of or has foreseen the possibility of such damages.

17. Severability.

If any provision of this Agreement shall be held invalid, unlawful, or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected
or impaired.

18. Confidentiality.

The Conversion Agent and the Company agree that all books, records, information and data
pertaining to the business of the other party which are transferred or received pursuant to the
negotiation or the carrying out of this Agreement including the fees for services set forth in the
attached Fee Schedule shall remain confidential, and shall not be voluntarily disclosed to any
other person, except as may be required by law.

19. Survival.

The provisions of Paragraphs 4-6, 9-11 and 14-20 shall survive any termination, for any
reason, of this agreement.

20. Merger of Agreement.

This Agreement constitutes the entire agreement between the parties hereto and supersedes any
prior agreement with respect to the subject matter hereof whether oral or written.

(Remainder of page intentionally left blank)

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers, hereunto duly authorized, as of the day and year first above written.

	 	 	 
	COMPUTERSHARE TRUST	 	CONVERTED ORGANICS INC.
	COMPANY, N.A.	 	 
	By:      

	 	By:     

Title:       Title: Edward J. Gildea, Chief Executive Officer

Date:       Date: October 20, 2009

COMPUTERSHARE INC.

By:      

Title:      

Date:      

3

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