Document:

EX-4.8

Exhibit 4.8

REGISTRATION RIGHTS AGREEMENT

          This
REGISTRATION RIGHTS AGREEMENT (this
“Agreement”) dated August 27, 2007, is among CHANGING WORLD TECHNOLOGIES, INC., a Delaware corporation,
(including its successors, the “Company”), and the securityholders listed on the signature
pages hereof (the “Securityholders”).

RECITALS

          WHEREAS,
each of the Securityholders has previously purchased shares (the “Shares”) of
Common Stock, par value $.01 per share (the “Common Stock”), of the Company and/or Warrants
to purchase Common Stock (the “Warrants”); and

          WHEREAS, each of the Securityholders has previously been granted registration rights or
entered into an agreement pursuant to which the Company is obligated to grant such rights; and

          WHEREAS, the parties hereto desire to enter into this Agreement to provide those certain
rights, as provided herein, to each of the Securityholders party hereto.

          NOW, THEREFORE, in consideration of the premises, mutual covenants and agreements hereinafter
contained and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

ARTICLE I — DEFINITIONS

     1.1 Definitions.

          (a) For purposes of this Agreement, the following terms shall have the meanings specified in
this Section 1.1.

          “Affiliate” means, with respect to any Person, any Person who, directly or indirectly
through one or more intermediaries, controls, is controlled by or is under common control with any
Person.

          “Business Day” means a day other than a Saturday, Sunday or other day on which
commercial banks are authorized or required to close under the laws of the United States or the
State of New York.

          “Common Stock Equivalents” means, without duplication with any other Common Stock or
Common Stock Equivalents, any rights, warrants, options, convertible securities or indebtedness,
exchangeable securities or indebtedness, or other rights, exercisable for or convertible or
exchangeable into, directly or indirectly, Common Stock of the Company and securities convertible
or exchangeable into Common Stock of the

 

 

Company, whether at the time of issuance or upon the passage of time or the occurrence of any
future event.

          “Effective Date” means the date of the final prospectus relating to the Company’s
first underwritten offering of any of its securities to the general public.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar
federal statute, and the rules and regulations promulgated by the SEC thereunder.

          “Holder” means (i) a Securityholder and (ii) any direct or indirect transferee of any
such Securityholder, including any securityholder that receives shares of Common Stock upon a
distribution or liquidation of a Holder, who has been assigned the rights of the transferor Holder
under this Agreement.

          “Person” or “person” means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust, unincorporated
organization or government or other agency or political subdivision thereof.

          “register,” “registered” and “registration” refer to a registration
effected by preparing and filing a registration statement in compliance with the Securities Act,
and the declaration or ordering of the effectiveness of such registration statement.

          “Registrable Securities” means (i) the Shares, (ii) the Warrant Shares, and (iii) any
Common Stock of the Company issued as a dividend or other distribution with respect to, in
exchange for or in replacement of the Shares and the Warrant Shares; provided that any Shares or
other shares of Common Stock shall not be considered Registrable Securities (y) at such time as
all of the shares of Common Stock held by a holder may be freely traded (without limitation or
restriction as to quantity or timing and without registration under the Securities Act or, if the
Company’s securities are listed in a foreign jurisdiction, any act similar to the Securities Act)
under Rule 144(k) promulgated under the Securities Act or otherwise under any foreign rule or
regulation and (z) if such Shares, Warrant Shares, or other shares of Common Sock have been
previously sold pursuant to a registration under the Securities Act or a similar foreign rule or
regulation.

          “SEC” means the Securities and Exchange Commission or any other Federal agency at the
time administering the Securities Act.

          “Securities Act” means the Securities Act of 1933, as amended, or any similar Federal
statute, and the rules and regulations promulgated by the SEC thereunder.

          “Warrant Shares” means the Common Stock issuable to the holder of a Warrant upon
exercise of such Warrant.

2

 

     1.2 Other Definitional and Interpretive Matters. Unless otherwise expressly provided
or the context otherwise requires, for purposes of this Agreement the following rules of
interpretation apply.

          (a) When calculating the period of time before which, within which or following which any act
is to be done or step taken pursuant to this Agreement, the date that is the reference date in
calculating such period is excluded. If the last day of such period is a non-Business Day, the
period in question ends on the next succeeding Business Day.

          (b) Any reference in this Agreement to $ means U.S. dollars.

          (c) The Exhibits and Schedules to this Agreement are hereby incorporated and made a part
hereof as if set forth in full in this Agreement and are an integral part of this Agreement. Any
capitalized terms used in any Schedule or Exhibit but not otherwise defined therein are defined as
set forth in this Agreement.

          (d) Any reference in this Agreement to gender includes all genders, and words imparting the
singular number also include the plural and vice versa.

          (e) The provision of a Table of Contents, the division of this Agreement into Articles,
Sections and other subdivisions and the insertion of headings are for convenience of reference
only and do not affect, and should not be utilized in, the construction or interpretation of this
Agreement.

          (f) All references in this Agreement to any “Article,” “Section,” “Schedule” or “Exhibit” are
to the corresponding Article, Section, Schedule or Exhibit of this Agreement.

          (g) The words “herein,” “hereinafter,” “hereof,” and
“hereunder” refer to this Agreement as a whole and not merely to a subdivision in which
such words appear unless the context otherwise requires.

          (h) The word “including” or any variation thereof means “including, but
not limited to,” and does not limit any general statement that it follows to the specific or
similar items or matters immediately following it.

ARTICLE II — REGISTRATION RIGHTS

     2.1 Demand Registration.

          (a) At any time six (6) months after the Company’s initial public offering pursuant to a firm
commitment underwriting and prior to the fifth anniversary of the Company’s initial public
offering, each of the Securityholders holding Registrable Securities
(the “Demanding
Holders”) shall have the right (which right is in addition to the piggyback registration rights
provided for under Section 2.2 hereof), exercisable by written notice to the Company (the
“Demand Registration Request”), to have the

3

 

Company prepare and file with the SEC, a registration statement and such other documents,
including a prospectus, as may be necessary (in the opinion of both counsel for the Company and
counsel for such holder) in order to comply with the provisions of the Securities Act
(collectively, the “Registration Statement”), so as to permit a public offering and sale
of the Registrable Securities by the holder thereof; provided that (i) the aggregate proceeds of
such public offering are reasonably expected to exceed $10,000,000, (ii) the Company shall not be
obligated to effect more than two (2) Demand Registration Requests in any calendar year, (iii)
none of the Securityholders (including any permitted transferee of a Securityholder) may exercise
more than one Demand Registration Request in any calendar year, and (iv) no Securityholder
(including any permitted transferee of a Securityholder) may exercise more than a total of three
Demand Registration Requests during the term of this Agreement.

          (b) The Company covenants and agrees to give written notice of any Demand Registration
Request to all holders of Common Stock (including holders of Registrable Securities) and securities
convertible into, or exchangeable for, Common Stock, within ten (10) days from the date of the
Company’s receipt of any such Demand Registration Request. After receiving notice from the Company
as provided in this Section 2.1, such holders may request the Company to include their shares of
Common Stock in the Registration Statement to be filed pursuant to this Section 2.1 by notifying
the Company of their decision to have such securities included within ten (10) days of their
receipt of the Company’s notice; provided that a holder shall not be entitled to register shares of
Common Stock if (y) all of the shares of Common Stock then held by such holder may be freely traded
(without limitation or restriction as to quantity or timing and without registration under the
Securities Act or, if the Company’s securities are listed in a foreign jurisdiction, any act
similar to the Securities Act) under Rule 144(k) promulgated under the Securities Act or otherwise
under any foreign rule or regulation and (z) if such shares of Common Sock have been previously
sold pursuant to a registration statement under the Securities Act or a similar foreign rule or
regulation.

          (b) If, in the written opinion of the Company’s managing underwriter, if any, or the Company,
including in any registration pursuant to Section 2.1 the total number of shares of Common Stock
requested to be registered by the Demanding Holders and any other holder of Common Stock requesting
registration of his or its shares of Common Stock will materially adversely affect the entire
offering (an “Adverse Effect”), then the shares of Common Stock to be included in such
demand registration shall equal the number of shares which the Company is so advised or so
determines can be sold in such offering without causing an Adverse Effect and such shares included
in such registration shall be allocated pro rata among the holders (including the holders of
Registrable Securities) requesting registration on the basis of the number of shares of Common
Stock requested to be included in such registration by each such holder.

          (c) Notwithstanding the foregoing, if at any time of any request to register Registrable
Securities pursuant to this Section 2.1, the Company (x) is engaged or has substantially developed
plans to engage within 90 days of the time of the request, in a registered public offering as to
which holders may include Registrable Securities

4

 

pursuant to Section 2.2, (y) is engaged in any other activity which, in the good faith
determination of the Company’s board of directors (the “Board of Directors”), would be
adversely affected by the requested registration to the material detriment of the Company or (z)
the Company’s Board of Directors determines, in its good faith, that it is in the best interests
of the Company not to disclose the existence of or facts surrounding a significant corporate
development or transaction then pending or in progress, then the Company may at its option direct
that such request be delayed for a period not in excess of the earlier of (i) 90 days from the
date of such request in the event that such offering or such other material activity, as the case
may be, has not commenced during such 90 day period, (ii) 180 days from the Effective Date of such
offering, if applicable, (iii) 120 days from the date of commencement of such other material
activity, if applicable, or (iv) such time that the Company is no longer in good faith actively
and diligently pursuing such offering or such activity; provided that such right to delay a
request may be exercised by the Company not more than twice in any
15 month period.

     2.2 Piggyback Registrations.

          (a) If, at any time that any of the Registrable Securities are outstanding, the Company
proposes to prepare and file with the SEC a Registration Statement and such Registration Statement
allows other securityholders of the Company to register their securities thereunder, the Company
will give written notice of its intention to do so by registered mail (“Notice”), at least
twenty (20) days prior to the initial filing of each such Registration Statement, to all holders
of the Registrable Securities. Upon written request within ten (10) days after receipt of the
Notice, a holder (a “Requesting Holder”) may request that the Company include any of the
Requesting Holder’s Registrable Securities in the proposed Registration Statement, and the Company
shall, as to each such Requesting Holder, use commercially reasonable efforts to effect the
registration under the Securities Act or any similar act, rule or regulation of any foreign
governmental authority on which the Company’s securities are traded, of the Registrable Securities
which it has been so requested to register (“Piggyback Registration”); provided,
however, that if, in the written opinion of the Company’s managing underwriter, if any,
for such offering, or the Company, the inclusion of all or a portion of the Registrable Securities
requested to be registered, when added to the securities being registered by the Company or the
selling securityholder(s), will exceed the maximum amount of the Company’s securities which can be
marketed (i) at a price reasonably related to their then current market value, or (ii) without
otherwise triggering an Adverse Effect, then the portion of the securities to be registered on
behalf of the Requesting Holders, shall equal the number of shares which the Company is so advised
can be sold in such offering without causing an Adverse Effect less the number of shares being
sold by the Company and such shares included in such registration on behalf of the Requesting
Holders shall be allocated pro rata among the Requesting Holders on the basis of the number of
shares of Common Stock requested to be included in such registration by each Requesting Holder.

     2.3 Holdback Agreement. In the event of any registration of shares of
Common Stock in connection with an underwritten public offering, the Holders agree not

5

 

to effect any sale of any Registrable Securities (other than as part of such public offering),
including pursuant to Rule 144K, during the 14 days prior to the effective date of such
registration statement (except as part of such registration statement) or during the period after
such effective date as reasonably required by the managing underwriter of an underwritten
offering, but in no event longer than the earlier of (i) the shortest period applicable to the
officers, directors and stockholders (other than the holders of the Shares) holding 5% or more of
the capital stock of the Company or (ii) 180 days.

     2.4 Company Covenants in Connection with Registration.

          (a) In connection with any registration under Article II hereof, the Company shall file the
Registration Statement as expeditiously as possible, but in any event no later than sixty (60)
days following receipt of any demand therefor, shall use its commercially reasonable efforts to
cause any such Registration Statement to be declared effective at the earliest possible time, and
shall furnish each holder of Registrable Securities such number of prospectuses (including each
free writing prospectus used in connection therewith) as shall reasonably be requested. Once
effective, the Company shall maintain the effectiveness of the Registration Statement until the
earlier of (i) the date that all of the Registrable Securities included in such offering have been
sold, or (ii) one hundred and eighty days after the effectiveness of such Registration Statement;

          (b) The Company shall pay all costs, fees and expenses (other than underwriting fees,
discounts and nonaccountable expense allowance applicable to the Registrable Securities) in
connection with all Registration Statements filed pursuant to Article II hereof including, without
limitation, the Company’s legal and accounting fees, printing expenses, and blue sky fees and
expenses and the fees and expenses of one counsel retained by the holders of Registrable
Securities up to a maximum of $10,000;

          (c) The Company shall take all necessary action which may be required to (i) qualify or
register the Registrable Securities included in the Registration Statement, for offering and sale
under the securities or blue sky laws of such states as are reasonably requested by the holders of
such securities and (ii) list the Registrable Securities on the principal securities exchange (or
the Nasdaq Stock Market) on which the Common Stock is so listed;

          (d) The Company shall indemnify and hold harmless the holders of the Registrable Securities,
and each officer, director, employee and agent of the holders of the Registrable Securities, from
and against any and all losses, claims, damages and liabilities, including attorney fees caused by
any untrue statement of a material fact contained in any Registration Statement, any post-effective
amendment to such Registration Statement, or any prospectus included therein required to be filed
or furnished by reason of this Article II, any free-writing prospectus used in connection
therewith, or caused by any omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading; except insofar as such losses, claims,
damages or liabilities are caused by any such untrue statement or omission based upon information
furnished or required to be furnished in writing to the Company

6

 

by the holders of the Registrable Securities or underwriter within the meaning of the Securities
Act and each officer, director, employee and agent of the holders of the Registrable Securities
and underwriter;

          (e) In connection with any Registration Statement in which a seller of Registrable Securities
is participating, each such seller will furnish to the Company in writing such information and
affidavits as the Company reasonably requests for use in connection with any such registration
statement or prospectus and, to the fullest extent permitted by law, each such seller will
indemnify the Company and its directors and officers and each person who controls the Company
(within the meaning of the Securities Act or the Exchange Act) against any and all losses, claims,
damages, liabilities and expenses (including, without limitation, reasonable attorneys’ fees and
disbursements) resulting from any untrue statement or alleged untrue statement of a material fact
contained in the registration statement, prospectus or any preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, but only to the extent
that such untrue statement or alleged untrue statement or omission or alleged omission is contained
in any information or affidavit so furnished in writing by such seller or any of its affiliates
specifically for inclusion in the registration statement; provided that the obligation to
indemnify will be several, not joint and several, among such sellers of Registrable Securities,
and, provided, further, that such liability will be limited to, the net amount
received by such seller from the sale of Registrable Securities pursuant to such registration
statement;

          (f) If for any reason the indemnification provided for in this Article II is held by a court
of competent jurisdiction to be unavailable to an indemnified party with respect to any loss,
claim, damage, liability or expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by
the indemnified party as a result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect not only the relative benefits received by the indemnified party and the
indemnifying party, but also the relative fault of the indemnified party and the indemnifying
party, as well as any other relevant equitable considerations;

          (g) The Company shall promptly deliver copies of all correspondence between the SEC and the
Company, its counsel or auditors and all memoranda relating to discussions with the SEC or its
staff with respect to the Registration Statement to each holder of Registrable Securities included
for such registration in such Registration Statement pursuant to Article II hereof requesting such
correspondence and memoranda and to the managing underwriter, if any, of the offering in connection
with which such holder’s Registrable Securities are being registered and shall permit each holder
of Registrable Securities and such underwriter to do such reasonable 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 NASD
Regulation, Inc. Such investigation shall include access to books, records and properties and
opportunities to discuss the business of the Company

7

 

with its officers and independent auditors, all to such reasonable extent and at such reasonable
times and as often as any such holder of Registrable Securities or underwriter shall reasonably
request; and

          (h) The Company shall use its reasonable best efforts to make available its employees and
personnel for participation in “road shows” and other marketing efforts and otherwise provide
reasonable assistance to the underwriters (taking into account the needs of the Company’s
businesses and the requirements of the marketing process) in the marketing of Registrable
Securities in any underwritten offering.

          (i) If requested by the managing underwriters or the Holders of a majority of the then
outstanding Registrable Securities being sold in connection with an underwritten offering, the
Company shall promptly include in a prospectus supplement or post-effective amendment such
information as the managing underwriters and such Holders may reasonably request in order to permit
the intended method of distribution of such securities and make all required filings of such
prospectus supplement or such post-effective amendment as soon as practicable after the Company has
received such request; provided, however, that the Company shall not be required to take any
actions under this Section 2.4(i) that are not, in the opinion of counsel for the Company, in
compliance with applicable law.

          (j) The Company shall take all reasonable action to ensure that any free writing
prospectus utilized in connection with any registration covered by Section 2 complies in all
material respects with the Securities Act, is filed in accordance with the Securities Act to the
extent required thereby, is retained in accordance with the Securities Act to the extent required
thereby and, when taken together with the related prospectus, will not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

     2.5
Suspension of Dispositions. Each Holder agrees that, upon
receipt of any notice (a “Suspension Notice”) from the Company of the happening of any event which makes any
statement made in a registration statement or related prospectus untrue or which requires the
making of any changes in such registration statement, prospectus or documents so that they will not
contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, and, as promptly as
practicable thereafter, prepare and file with the SEC and furnish a supplement or amendment to such
prospectus so that, as thereafter deliverable to the purchasers of such Registrable Securities,
such prospectus will not contain any untrue statement of a material fact or omit a material fact
necessary to make the statements therein, in light of the circumstances under which they were made,
not misleading, such Holder will forthwith discontinue disposition of Registrable Securities until
such Holder’s receipt of the copies of the supplemented or amended prospectus, or until it is
advised in writing (the “Advice”) by the Company that the use of the prospectus may be
resumed, and has received copies of any additional or supplemental filings which

8

 

are incorporated by reference in the prospectus, and, if so directed by the Company, such Holder
will deliver to the Company all copies, other than permanent file copies then in such Holder’s
possession, of the prospectus covering such Registrable Securities current at the time of receipt
of such notice. In the event the Company shall give any such notice, the time period regarding the
effectiveness of registration statements set forth in Section 2.4(a) hereof shall be
extended by the number of days during the period from and including the date of the giving of the
Suspension Notice to and including the date when each seller of Registrable Securities covered by
such registration statement shall have received the copies of the supplemented or amended
prospectus or the Advice. The Company shall use its commercially reasonable efforts and take such
actions as are reasonably necessary to render the Advice as promptly as practicable.

     2.6 Transfer of Registration Rights. The rights of each Holder under this Agreement
may not be assigned to a transferee or assignee of a Holder’s Shares unless the transfer of Shares
(i) is a Permissible Transfer in accordance with clauses (a)-(g) of Section 2.3 of the Company’s
Second Amended Shareholders’ Agreement, dated February 14, 2002, (ii) is otherwise permitted by
an agreement to which such Holder and the Company are party, or (iii) is to an affiliate of the
Holder and, in each case, the Company is given: (x) written notice by such Holder of the transfer,
stating the name and address of such transferee or assignee and identifying the securities with
respect to which such registration rights are being transferred or assigned; and (y) such assignee
agrees in writing to be bound by the terms of this Agreement.

     2.7 Deemed Underwriting.

          (a) In connection with any offering of Common Stock by a Holder as a selling shareholder
covered by a Registration Statement with the SEC or covered by Offering Materials (as defined
below) prepared by or on behalf of the Company and effected under Rule 144A or Regulation S (a
“Covered Offering”), if the SEC, any regulatory authority or any other governmental
authority, either before, on or after the effective date of any Registration Statement, expresses
the view that such Holder should be deemed an “underwriter” in connection with a Covered Offering,
the Company agrees, at the sole cost of such Holder:

               (i) to cooperate with such Holder in allowing it to conduct
customary “underwriter’s due diligence” with respect to the Company and satisfy its
obligations as an underwriter in connection with that Covered Offering;

               (ii) at the request of such Holder, to furnish to it from time to time on such dates as it may
reasonably request (x) to the extent that the Company is receiving a letter, dated as of such date,
from the Company’s independent accountants of the type customarily given by independent accountants
in an offering of the type contemplated by the Covered Offering, an executed copy of that letter
addressed to such Holder, and (y) to the extent that the Company is receiving opinion(s), dated as
of such date, of one or more counsel representing the Company in the Covered Offering (including
both outside counsel and counsel employed by the Company) of the type customarily given by counsel

9

 

in an offering of the type contemplated by the Covered Offering (including, without limitation, a
standard “10b-5” opinion), an executed copy of each such opinion addressed to such Holder; and

               (iii) to permit legal counsel to such Holder (as selected by such
Holder in its sole discretion) to review and comment upon any disclosures related to such Holder or
the possibility of such Holder being named as an
“underwriter”, as such term is defined in
Section 2(a)(11) of the Securities Act, or a “deemed” underwriter in (x) any Registration Statement
(including the related prospectus and free-writing prospectus) or offering memorandum (the
“Offering Materials”) at least five business days prior to its filing with the SEC or when
it is first used, as the case may be, and (y) each amendment or supplement to any Offering Material
within a reasonable number of days prior to its filing with the SEC or when it is first used, as
the case may be. The Company shall also not file any Registration Statement or amendment or
supplement thereto in a form to which legal counsel to such Holder reasonably objects.

               (iv) prepare and file with the SEC any amendments and/or
supplements to the Registration Statement (including the related prospectus and free-writing
prospectus) as may be necessary to respond to the SEC’s view that such Holder should be deemed an
“underwriter” in connection with the Covered Offering and use its reasonable best efforts to comply
with any related requests of the SEC so that the Registration Statement (including the related
prospectus) may be used by such Holder in connection with the disposition of Registrable
Securities.

          (b) In any underwriting, purchase or similar agreement relating to the Covered Offering (the
“Underwriting Agreement”), the Company agrees to indemnify and hold harmless such Holder,
its directors, officers and other persons, if any, who may control such Holder for any and all
loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any statement
or alleged statement in or omission or alleged omission from the Offering Material used in
connection with the Covered Offering as a result of such Holder being named as an underwriter or a
deemed underwriter. Furthermore, the Underwriting Agreement shall contain customary
indemnification for selling shareholders that are provided in offerings that are similar to the
Covered Offering and such indemnification shall specifically include any liability that such
Holder may incur as a result of being deemed an underwriter for purposes of the Covered Offering.

ARTICLE
III - MISCELLANEOUS

     3.1 Notices. Any notices or other communications required or permitted hereunder shall
be in writing, and shall be sufficiently given if made by hand delivery, by telex, by telecopier or
registered or certified mail, postage prepaid, return receipt requested, addressed as follows (or
at such other address as may be substituted by notice given as herein provided):

10

 

If to the Company:

Changing World Technologies, Inc.

460 Hempstead Avenue

West Hempstead, New York 11552

Attn: President

with a copy to:

Michael A. King

Weil, Gotshal & Manges, LLP

767 Fifth Avenue

New York, NY 10153

          If to any Holder, at its address on file with the Company.

          Any notice or communication hereunder shall be deemed to have been given or made as of the
date so delivered if personally delivered; when answered back, if telexed; when receipt is
acknowledged, if telecopied; and five calendar days after mailing if sent by registered or
certified mail (except that a notice of change of address shall not be deemed to have been given
until actually received by the addressee).

          Failure to transmit a notice or communication to a Holder or any defect in it shall not
affect its sufficiency with respect to other Holders. If a notice or communication is given or
made in the manner provided above, it is duly given, whether or not the addressee receives it.

     3.2 Governing Law. THIS AGREEMENT, THE RIGHTS AND OBLIGATIONS OF
THE PARTIES UNDER THIS AGREEMENT, AND ANY CLAIM OR CONTROVERSY DIRECTLY OR INDIRECTLY BASED UPON OR
ARISING OUT OF THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY), INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, SHALL IN ALL RESPECTS BE GOVERNED BY AND
INTERPRETED, CONSTRUED AND DETERMINED EXCLUSIVELY IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW THAT WOULD
REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.

     3.3 Jurisdiction. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY
CONSENTS TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE NEW YORK STATE SUPREME
COURT, COUNTY OF NEW YORK, AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND ANY APPELLATE COURT THEREFROM, FOR THE RESOLUTION
OF ANY AND ALL DISPUTES, CONTROVERSIES, CONFLICTS, LITIGATION OR ACTIONS ARISING OUT OF OR
RELATING TO THIS AGREEMENT AND THE SUBJECT MATTER HEREOF

11

 

AND AGREES NOT TO COMMENCE ANY LITIGATION OR ACTIONS ARISING OUT OF OR RELATING TO THIS AGREEMENT
AND THE SUBJECT MATTER HEREOF IN ANY OTHER COURT.

     3.4 Successors and Assigns. Except as otherwise expressly provided herein, this
Agreement shall be binding upon and benefit the Company, each Holder and their respective
successors and assigns.

     3.5 Duplicate Originals. All parties may sign any number of copies of this
Agreement. Each signed copy shall be an original, but all of them together shall represent the
same agreement.

     3.6 Severability. In case any provision in this Agreement shall be held invalid,
illegal or unenforceable in any respect for any reason, the validity, legality and enforceability
of any such provision in every other respect and the remaining provisions shall not in any way be
affected or impaired thereby.

     3.7 Entire Agreement; No Waivers; Amendments.

          (a) This Agreement (including the schedules and exhibits hereto) with respect to the subject
matter hereof (i) represents the entire understanding and agreement between the parties hereto and
(ii) supersedes any prior understandings, discussions and agreements between the parties hereto,
including any registration rights previously granted to any of the Securityholders. This Agreement
can be amended, supplemented or changed, and any provision hereof can be waived, only by written
instrument making specific reference to this Agreement signed by the party against whom enforcement
of any such amendment, supplement, modification or waiver is sought. No failure or delay on the
part of the Company or any Holder in exercising any right, power or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy
preclude any other or further exercise thereof or the exercise of any other right, power or remedy.
The remedies provided for herein are cumulative and are not exclusive of any remedies that may be
available to the Company or any Holder at law or in equity or otherwise.

          (b) Any provision of this Agreement may be amended or waived if, but only if, such amendment
or waiver is in writing and is signed by the Company and Holders who then own beneficially more
than 51% of the aggregate number of shares of Common Stock subject to this Agreement.

     3.8 Negotiated Agreement. This Agreement was negotiated by the parties with the
benefit of legal representation, and any rule of construction or interpretation otherwise requiring
this Agreement to be construed or interpreted against any party shall not apply to the construction
or interpretation hereof.

12

 

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

	 	 	 	 	 	 	 
	 	 	CHANGING WORLD TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Steven A. Carlson
 

Steven A. Carlson
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 

CWT REGISTRATION RIGHTS AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	CONAGRA FOODS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Patrick J. Keley
 

Patrick J. Keley
	 	 
	 

	 	Title:
	 	VP	 	 

CWT REGISTRATION RIGHTS AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	GSFS INVESTMENTS I CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Alan Waxman
 

Alan Waxman
	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 

CWT REGISTRATION RIGHTS AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	STONEHILL OFFSHORE PARTNERS LIMITED	 	 
	 
	 	 	 	 	 	 
	 	 	By: Stonehill Capital
Management LLC, Its Adviser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Sisitsky
 

	 	 
	 

	 	Name:
	 	Peter Sisitsky	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	STONEHILL INSTITUTIONAL PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By Stonehill Capital Management LLC, Its Adviser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Sisitsky
 

	 	 
	 

	 	Name:
	 	Peter Sisitsky	 	 
	 

	 	Title:
	 	Vice President	 	 

CWT REGISTRATION RIGHTS AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	CWT VENTURE GROUP I LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerome Finkelstein
 

	 	 
	 

	 	Name:	 	Jerome Finkelstein	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	HAROLD FINKELSTEIN	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Harold Finkelstein	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CWT VENTURE GROUP II LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Harold Finkelstein	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ALEXA M. ENTEL 1999 TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alexa M. Entel	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	DEBORAH ENTEL 2006 FAMILY TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Deborah Entel	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	JACOB ENTEL 1999 TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jacob Entel	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

CWT REGISTRATION RIGHTS AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	BENJAMIN FINKELSTEIN 1999 TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CAROLINE S. FINKELSTEIN 1999 TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MALCOLM FINKELSTEIN 1999 TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MED PARTNERS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MICHAEL FINKELSTEIN 2006 FAMILY  TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EIZEL 33, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

CWT REGISTRATION RIGHTS AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	EMILY J. SILVER NON-GST 2007 TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EMILY J. SILVER GST 2007 TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EVE SILVER 2006 FAMILY TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EVE SILVER SPOUSAL LIFETIME ACCESS TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EVE SILVER 2007 GRANTOR RETAINED ANNUITY TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	LILA R. SILVER NON-GST TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

CWT REGISTRATION RIGHTS AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	LILA R. SILVER GST 2007 TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ZACHARY I. SILVER NON-GST TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ZACHARY I. SILVER GST 2007 TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

CWT REGISTRATION RIGHTS AGREEMENTEX-10.1

Exhibit 10.1

STOCK PURCHASE AGREEMENT

          This Stock Purchase Agreement (this “Agreement”) is dated as of September 19, 2006,
among CHANGING WORLD TECHNOLOGIES, INC., a Delaware corporation (the “Company”), and
HCM-CWT INVESTMENTS I, LLC (“Investor”).

          WHEREAS, subject to the terms and conditions set forth in this Agreement, the Company desires
to sell to Investor, and Investor desires to purchase from the Company 25,000 shares (the
“Shares”) of common stock, par value $.01 (the “Common Stock”) of the Company.

          NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration the receipt and adequacy of which are hereby acknowledged,
the Company and Investor agree as follows:

1. Purchase and Sale of the Shares. The Company hereby issues, sells and delivers to
Investor and Investor hereby purchases, and accepts delivery of, the Shares.

2. Closing.

     2.1 The Closing. The closing (the “Closing”) of the transactions contemplated
by this Agreement shall take place at 10:00 a.m., New York City time, on the date hereof (the
“Closing Date”), at the offices of Schulte Roth & Zabel LLP, 919 Third Avenue, New York,
New York 10022, unless another time, date or place is agreed to in writing by the parties hereto.

     2.2 Company Closing Deliveries. At the Closing, the Company shall deliver the
following to Investor:

          (a) A copy of the certificate of incorporation of the Company, as in effect immediately prior
to the Closing, certified by its chief executive officer as being in effect as of the Closing Date;

          (b) A copy of the by-laws of the Company, certified by its chief executive officer as
being in effect as of the Closing Date; and

          (c) A stock certificate issued to Investor representing the Shares to be delivered to
Investor; provided that the Company may deliver such certificate to Investor within (5) days
following the Closing in the event such certificate is not available for issuance on or prior to
the Closing.

     2.3 Investor Closing Deliveries. At the Closing, Investor shall deliver the following
to the Company:

          (a) $2,000,000 (the “Purchase Price”) by wire transfer of immediately available funds
to an account designated by the Company; and

          (b) A duly executed counterpart signature page to the Company’s stockholders agreement in the
form attached hereto as Exhibit A (the “Stockholders Agreement”) agreeing to be
bound by the terms thereof (as supplemented in Section 5.7 hereof).

 

 

3. Representations and Warranties of the Company. The Company represents and
warrants to Investor as follows in this Section 3.

     3.1 Organization, Standing and Power. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware, with full
corporate power and corporate authority to (a) own, lease and operate its properties, (b) carry on
its business as currently conducted by it and (c) execute and deliver, and perform under this
Agreement and each other agreement and instrument to be executed and delivered by it pursuant
hereto. True and complete copies of the certificate of incorporation of Company and all amendments
thereof (the “Certificate of Incorporation”), and of the by-laws of the Company, as amended
to date (the “By-Laws”), have heretofore been furnished to Investor.

     3.2 Capitalization. After giving effect to the transactions contemplated
herewith and taking into account, among other things, any and all anti-dilution rights of other
stockholders of the Company relating to or arising from the sale of the Shares, the authorized
capital of the Company will consist of (i) 4,500,000 shares of Common Stock, of which 2,711,821.838
shares are issued and outstanding, 214,416 shares are reserved for issuance under options and
warrants which are issued and outstanding, 90,785 shares are reserved for issuance under options to
be granted under the Company’s stock option plan, and 195,081 shares are reserved for issuance upon
the conversion of the Series A Preferred Stock, and (ii) 445,081 shares of preferred stock, of
which 195,081 shares are designated as Series A Preferred Stock, of which 195,081 shares are issued
and outstanding, and of which 250,000 shares are undesignated. As a result of the transactions
contemplated hereby, the Company is not obligated to issue any shares of Common Stock in respect of
anti-dilution rights in favor of any shareholders of the Company. Except as described on
Schedule 3.2 and as set forth above, (a) no shares of Common Stock are held in treasury;
(b) there are no other issued or outstanding equity securities of the Company or other securities
of the Company convertible or exchangeable at any time into equity securities of the Company; (c)
there are no outstanding stock appreciation rights, phantom stock rights, profit participation
rights, or other similar rights with respect to any capital stock of the Company; (d) the Company
is not subject to any commitment or obligation that would require the issuance or sale of
additional shares of capital stock of the Company at any time under options, subscriptions,
warrants, preemptive rights, anti-dilution rights or other rights or obligations; (e) as of the
Closing Date and immediately thereafter, no individual or entity has, or may be entitled to, any
rights to cause the Company to register any shares of capital stock held by them, other than
pursuant to the Series A SPA, the Exchange Agreement and the Goldman SPA (each as defined below);
and (f) the Company has not been party to any agreement, arrangement or understanding with respect
to the issuance by the Company of shares of capital stock of the Company other than (i) the
Securities Purchase Agreement between the Company and the investors set forth on Schedule A annexed
thereto, dated as of October 24, 2002 (the “Series A SPA”), (ii) the Securities Exchange
Agreement between the Company and Conagra Foods, Inc., dated as of July 21, 2005 (the “Exchange
Agreement”), (iii) the Stock Purchase Agreement between the Company and Gas Research Institute,
dated as of February 28, 2003, (iv) the Agreement between the Company and CWT Venture Group I LLC,
CWT Venture Group II LLC and Eizel 33, LLC, dated as of October 6, 1998, (v) the Stock Purchase
Agreement between the Company and GSFS Investments I Corp. (“Goldman”), dated September 30,
2005 (the “Goldman SPA”), (vi) various subscription agreements of the Company in
substantially the form attached hereto as Exhibit B, and (vii) pursuant to the Company’s
2002 Stock Option Plan. Each

2

 

stockholder of the Company has executed a counterpart signature page to the Stockholders
Agreement in the form attached hereto as Exhibit A, or to a more restrictive form of
such stockholders agreement.

     3.3 Issuance of the Shares. The issuance, sale and delivery of the Shares has been
duly authorized by all necessary corporate action on the part of the Company. The Shares, when so
issued, sold and delivered against payment therefor in accordance with the provisions of this
Agreement, shall be duly and validly authorized and issued, fully paid and nonassessable, and shall
not be subject to any liens, encumbrances, rights of first refusal, claims or security interests,
other than arising pursuant to applicable law (including securities laws) (collectively,
“Liens”) and the Stockholders Agreement.

     3.4
Authority. The execution and delivery by the Company of this Agreement and of
all of the agreements and other documents to be executed and delivered by the Company
pursuant hereto (collectively, the “Company Documents”), the performance by the
Company of its obligations hereunder and thereunder, and the consummation of the transactions
contemplated hereby and thereby, have been duly and validly authorized by all necessary corporate action on
the part of the Company and the Company has all necessary corporate power and corporate
authority with respect thereto. This Agreement is, and when executed and delivered by the
Company, each of the Company Documents will be, in each case assuming such documents are
duly executed by the other parties thereto, the valid and binding obligations of the Company
enforceable in accordance with their respective terms, except as the same may be limited by
bankruptcy, insolvency, reorganization, moratorium or other laws affecting the rights of
creditors generally and subject to the rules of law governing (and all limitations on) specific
performance, injunctive relief, and other equitable remedies.

     3.5
Noncontravention. Neither the execution and delivery by the Company of this
Agreement or the Company Documents, nor the consummation of any of the transactions contemplated
hereby or thereby, nor the performance by the Company of any of its obligations hereunder or
thereunder, will (nor with the giving of notice or the lapse of time or both would) (a) conflict
with or result in a breach of any provision of the Certificate of Incorporation or By-Laws of the
Company, each as amended to date, or (b) give rise to a default, or any right of termination,
cancellation or acceleration, or otherwise be in conflict with or result in a loss of contractual
benefits to the Company or any of its Subsidiaries under any of the terms, conditions or provisions
of any note, bond, mortgage, indenture, license, agreement or other instrument or obligation to
which the Company or any of its Subsidiaries is a party or by which it or any of the Company’s or
any of its Subsidiary’s assets may be bound, or require any consent, approval or notice under the
terms of any such document or instrument (other than such consents, approval or notices that are
obtained or delivered prior to the Closing), or (c) violate any order, writ, injunction, decree,
law, statute, rule or regulation of any court or governmental authority which is applicable to the
Company or any of its Subsidiaries or (d) result in the creation or imposition of any Liens upon
any of the Company’s or its Subsidiaries’ assets or the Common Stock, or (e) interfere with or
otherwise adversely affect the ability of the Company or its Subsidiaries to carry on their
business after the Closing Date on substantially the same basis as it is now conducted or as
proposed to be conducted.

3

 

     3.6 Governmental Consents. No consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any federal, state or local
governmental authority on the part of the Company or its Subsidiaries is required in connection
with the valid execution and delivery of this Agreement, or the offer, sale or issuance of the
Shares hereunder, except such as has already been obtained.

     3.7 Litigation. Except as set forth on Schedule 3.7, there are no claims,
suits or actions, or administrative, arbitration or other proceedings or governmental
investigations, pending or, to the Company’s knowledge, threatened, adverse to the Company or its
Subsidiaries, the transactions contemplated hereby or the business of the Company or its
Subsidiaries or any of the assets of the Company or its Subsidiaries. There are no judgments,
orders, stipulations, injunctions, decrees or awards in effect which relate to the Company or its
Subsidiaries, this Agreement, the transactions contemplated hereby, the business of the Company or
its Subsidiaries or any of the assets of the Company or its Subsidiaries, the effect of which is
(a) to limit, restrict, regulate, enjoin or prohibit in any respect any business practice of the
Company or its Subsidiaries in any area or (b) otherwise adverse to the business, condition,
affairs, assets, capital stock or prospects of the Company or any of its Subsidiaries, financially
or otherwise, nor, to the Company’s knowledge, is the Company aware that there is any basis for the
foregoing.

     3.8 No Violation of Law. Except as set forth on Schedule 3.8, to the
knowledge of the Company, neither the Company nor its Subsidiaries are engaging in any activity or
omitting to take any action as a result of which it is in violation of any material law, rule,
regulation, zoning or other ordinance, statute, order, injunction or decree, or any other
requirement of any court or governmental or administrative body or agency, applicable to the
Company or its Subsidiaries, the business of the Company or its Subsidiaries or any assets of the
Company or its Subsidiaries, including, but not limited to, those relating to: occupational safety
and health matters; issues of environmental and ecological protection (e.g., the use,
storage, handling, transport or disposal of pollutants, contaminants or hazardous or toxic
materials or wastes, and the exposure of persons thereto); business practices and operations; labor
practices; employee benefits; and zoning and other land use laws and regulations.

     3.9 Subsidiaries. There are no direct or indirect subsidiaries of the Company, other
than (i) Resource Recovery Corporation, (“RRC”) a Delaware corporation, (ii) Thermal
Depolymerization Process LLC, (“TDP”) a Delaware limited liability company, and (iii) Renewable
Environmental Solutions, LLC, (“RES”) a Delaware limited liability company (together with RRC and
TDP, the “Subsidiaries”). 100% of the capital stock of RRC and 100% of the total membership
interests of RES and TDP are owned by the Company, free and clear of all Liens.

     3.10 Financial Statements. The Company has furnished to Investor the audited balance
sheet of the Company as of December 31, 2005 and the related audited statements of income (loss),
shareholders’ equity and changes in financial position for the fiscal year then ended and its
unaudited balance sheet and related statements of income (loss), shareholders’ equity and changes
in financial position for the period ending June 30, 2006 (collectively, the “Financial
Statements”). The Financial Statements: (a) are true, correct and complete; (b) have been
prepared in accordance with the books and records of the Company; (c) present fairly the

4

 

consolidated financial condition and consolidated operating results of the Company as of the dates
and for the periods indicated; and (d) have been prepared in accordance with generally accepted
accounting principles (“GAAP”) applied on a consistent basis except for year-end audit
adjustments and the absence of footnotes required under GAAP in the case of the unaudited financial
statements. The Company maintains and will continue to maintain a system of accounting established
and administered in accordance with GAAP.

     3.11
Absence of Changes. Except as otherwise set forth on Schedule 3.11, since
December 31, 2005, there has not been (i) any material adverse change in the financial condition,
results of operations, assets, liabilities, business or prospects of the Company or its
Subsidiaries; (ii) any material liability or obligation of any nature whatsoever (contingent or
otherwise) incurred by the Company or its Subsidiaries, other than (a) liabilities incurred in the
ordinary course of business and (b) obligations under contracts and commitments incurred in the
ordinary course of business and not required under GAAP to be reflected in the Financial
Statements, which, in the case of both clauses (a) and (b), individually or in the aggregate, are
not material to the financial condition or operating results of the Company or its Subsidiaries;
(iii) any material asset or property of the Company or its Subsidiaries made subject to a Lien of
any kind; (iv) any waiver of any material valuable right of the Company or its Subsidiaries, or any
cancellation of any material debt or claim held by the Company or its Subsidiaries; (v) any sale,
assignment or transfer of any tangible or intangible material asset of the Company or its
Subsidiaries, except for sales, assignments or transfers in the ordinary course of business; (vi)
any loan by the Company or its Subsidiaries to any officer, director, employee, consultant or
shareholder of the Company or its Subsidiaries, or any agreement or commitment therefor other than
routine travel or relocation advances, or loans made in the ordinary course of business; (vii) any
material damage, destruction or loss (whether or not covered by insurance) affecting the assets,
property, business or prospects of the Company or its Subsidiaries; (viii) any change in the
accounting methods, practices or policies followed by the Company or its Subsidiaries, including
any change in depreciation or amortization policies or rates; or (ix) any off-balance sheet
transactions.

     3.12 Property and Assets. The Company does not own any real property. The Company owns
or has a valid leasehold interest in, all of the material properties and assets, used by it or
located on its premises, including all properties and assets reflected in the Financial Statements,
and except those disposed of since the date thereof in the ordinary course of business; none of
such properties or assets is subject to any mortgage, pledge, lien, security interest, lease,
charge or encumbrance other than those material terms which are described in the Financial
Statements. The Company is in compliance with all material terms of each lease to which it is a
party or is otherwise bound. The Company owns, or has a valid leasehold interest in, all assets
necessary for the conduct of its businesses as presently conducted. Neither the Company nor any of
its Subsidiaries are bound by, or subject to, any contract, agreement, arrangement or understanding
that limits or restricts in any way the ability of any affiliates of the Company to conduct or
engage in any business activities, except which are not material to the Company and its
Subsidiaries, taken as a whole.

     3.13 Intellectual Property. The Company or its Subsidiaries own or have a valid
license to use, or has a pending application for, all trademarks, service marks, trade names,
service names, copyrights, patents, patent applications, know-how, methods, processes or other
intellectual property, including, without limitation, rights to a technology known as Thermo-

5

 

Depolymerization and Chemical Reformer (collectively, the “Intellectual
Property”) that are
required to conduct the Company’s business and operations as now conducted and as proposed to be
conducted, all of which are, to Company’s knowledge, valid and in good standing and uncontested.
Except as set forth on Schedule 3.13, the Company and its Subsidiaries have not received
any notice or demand alleging that the Company or its Subsidiaries are infringing upon or otherwise
acting adversely to any trademarks, service marks, trade names, service names, copyrights, patents,
patent applications, know-how, methods, processes or other intellectual property of any other
person or entity, and there is no claim, proceeding or action pending or, to the knowledge of the
Company, threatened, with respect thereto. Except as set forth on Schedule 3.13, to the
Company’s knowledge, no person or entity is infringing upon the rights or ownership interest of the
Company or its Subsidiaries in the Intellectual Property.

     3.14 Taxes. The Company has filed or has obtained presently effective extensions with
respect to all Federal, state, county, local and foreign tax returns which are required to be filed
by it, such returns are true and correct and all taxes shown thereon to be due have been timely
paid.

     3.15 Insurance. The Company maintains such types and amounts of insurance with respect
to its business and properties, on both a per occurrence and an aggregate basis, as are customarily
carried by persons or entities engaged in the same or similar business as the Company.

     3.16 Securities Laws. Based in part upon the representations of Investor, the
issuance, sale and delivery of the Shares pursuant to this Agreement and the Certificate of
Incorporation of the Company shall be exempt from the registration requirements of Section 5 of the
Securities Act of 1933, as amended (the “Securities Act”).

     3.17 Related Party Transactions. (a) Set forth on Schedule 3.17(a) is a true
and complete list of all obligations and transactions (i) between the Company and its Subsidiaries,
on the one hand, and any affiliate of the Company and its Subsidiaries, on the other hand, or (ii)
between the Company and its Subsidiaries, on the one hand, and any of the officers, directors,
equity holders or employees, or any of the affiliates or associates (each term as defined in the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of the Company and its
Subsidiaries, on the other hand. Except as set forth on Schedule 3.17(a), to the knowledge
of the Company, no officer or director of the Company or person who owns at least 5% of the
outstanding equity of the Company (nor any parent, child or spouse of any of such persons, or any
trust, partnership or corporation in which any of such persons has or has had an interest), has,
(i) any interest or involvement in any entity which provided or sold, or provides or sells,
services or products which any of the Company or its Subsidiaries provides or sells, or proposes to
provide or sell or (ii) any interest or involvement in any entity which purchases from or sells or
provides to, any of the Company or its Subsidiaries, any goods or services; provided, that
ownership of no more than five percent of the outstanding voting stock of a publicly traded
corporation in and of itself shall not be deemed an interest in any entity for purposes of this
Section 3.17.

6

 

     (b) Each transaction set forth on Schedule 3.17(a) is on terms that are, in the
Company’s reasonable estimation, at least as favorable to the Company as would be available with
independent third parties dealing at arms’ length.

     3.18 Brokers; Commissions; Investment Banking Services.

          (a) None of the Company or its Subsidiaries or any of their respective officers, directors,
employees or stockholders has employed any broker or finder in connection with the transactions
with Investor contemplated by this Agreement.

          (b) Except as set forth on Schedule 3.18, none of the Company or its Subsidiaries is a
party to any contract obligating the Company or any of its Subsidiaries to pay commissions or fees
to any party in connection with the issuance or sale of any shares of capital stock or other
securities of the Company or any of its Subsidiaries.

          (c) Except as set forth on Schedule 3.18, none of the Company or its Subsidiaries is a
party to any contract which grants rights to any third party with respect to the performance of
investment banking services for the Company or its Subsidiaries, including, without limitation,
with respect to the sale of the Company or a public offering, including an initial public offering,
of securities of the Company or its Subsidiaries.

4. Representations and Warranties as
to Investor. Investor represents and warrants to the Company as follows:

     4.1
Investment. Investor is acquiring the Shares for its own account for investment and
not with a view to, or for sale in connection with, any distribution thereof, nor with a present
intention of distributing or selling the same, except for distributions or sales pursuant to a
registration statement or in which an exemption from registration exists for any such distribution
or sale.

     4.2 Authority. The execution and delivery by Investor of this Agreement and of
all of the agreements and other documents to be executed and delivered by Investor pursuant hereto
(collectively, the “Investor Documents”), the performance by Investor of its obligations
hereunder and thereunder, and the consummation of the transactions contemplated hereby and thereby,
have been duly and validly authorized by all necessary action on the part of Investor, and Investor
has all necessary power and authority with respect thereto. This Agreement is, and when executed
and delivered by Investor, each other Investor Document will be, the valid and binding obligation
of Investor enforceable in accordance with the respective terms thereof, except as the same may be
limited by bankruptcy, insolvency, reorganization, moratorium or other laws affecting the rights of
creditors generally and subject to the rules of law governing (and all limitations on) specific
performance, injunctive relief, and other equitable remedies.

     4.3 Experience. Investor acknowledges that (i) an investment in the Shares is
highly speculative and involves a high degree of risk and that Investor can bear the loss of its
investment hereunder and (ii) it has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of the investment in the Shares.

7

 

     4.4 No Market for the Shares. Investor understands that there is no market for any of
the Shares nor is there any assurance that one will develop in the near future, and that the
Shares have limited transferability.

     4.5 Accredited Investor. Investor is an “Accredited Investor” within the definition
set forth in Rule 501(a) of the Securities Act.

     4.6 Legend. Investor understands that the certificate(s) representing the Shares and
will bear a restrictive legend thereon substantially as follows:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY OTHER APPLICABLE SECURITIES LAWS,
AND ARE RESTRICTED SECURITIES AS THAT TERM IS DEFINED UNDER RULE 144
PROMULGATED UNDER THE SECURITIES ACT. THESE SECURITIES MAY NOT BE
SOLD, PLEDGED, TRANSFERRED, DISTRIBUTED OR OTHERWISE DISPOSED OF IN
ANY MANNER UNLESS THEY ARE REGISTERED UNDER THE SECURITIES ACT AND
ANY APPLICABLE SECURITIES LAWS, OR UNLESS THE REQUEST FOR TRANSFER IS
ACCOMPANIED BY A FAVORABLE OPINION OF COUNSEL, REASONABLY
SATISFACTORY TO THE COMPANY, STATING THAT THE TRANSFER WILL NOT
RESULT IN A VIOLATION OF THE SECURITIES ACT OR ANY APPLICABLE STATE
SECURITIES LAWS.”

          The legend set forth above shall be removed and the Company shall issue a
certificate without such legend to the holder of the Shares upon which it is
stamped, if, unless otherwise required by state securities laws, (i) such Shares are
registered for resale under the Securities Act, (ii) in connection with a sale,
assignment or other transfer, such holder provides the Company with an opinion of
counsel, in reasonably acceptable form to the Company’s counsel, to the effect that
such sale, assignment or transfer of the Shares may be made without registration
under the applicable requirements of the Securities Act, or (iii) such holder
represents to the Company that such holder’s counsel has advised holder that the
Shares can be sold, assigned or transferred pursuant to Rule 144(k) under the
Securities Act.

5. Covenants

     5.1 Information Rights.

8

 

          (a) If the Company delivers any regularly prepared reports to Conagra Foods, Inc. (whether
pursuant to the Exchange Agreement or otherwise) or to Goldman (pursuant to the Goldman SPA or
otherwise) regarding the Company’s or its Subsidiaries’ corporate financial condition, the Company
will deliver the same reports and statements to Investor simultaneously.

          (b) The Company shall deliver to Investor (to the extent that the Company has not delivered
the reports to Investor under Section 5.1(a)) any annual or quarterly financial statements or
reports of the Company and its Subsidiaries on a consolidated basis prepared from time to time by
or on behalf of the Company promptly after such financial statements or reports are provided or
made available to Conagra Foods, Inc. or Goldman.

          (c) The rights in this Section 5.1 shall terminate upon the earlier of the initial public
offering of securities of the Company or any time at which the Company is otherwise required to
file public periodic reports with any governmental authority.

     5.2 Restrictions on Transfer. Investor agrees that it will not sell, assign or
transfer the Shares in violation of the Securities Act, or any other applicable state or foreign
securities laws (“Other Securities Laws”) and understands that it cannot sell, assign or
transfer the Shares unless the Shares are registered under the Securities Act or Other Securities
Laws or an exemption from such registration is applicable to such sale, assignment or transfer.

     5.3 Holdback. In the event of any registration of shares of Common Stock in
connection with an underwritten public offering, Investor agrees not to effect any sale of any
shares of Common Stock or any common stock equivalents (in each case, other than as part of such
public offering) during the 14 days prior to the effective date of such registration statement
(except as part of such registration statement) or during the period after such effective date as
reasonably required by the managing underwriter of an underwritten offering, but in no event longer
than the earlier of (i) the shortest period applicable to the officers, directors and stockholders
(other than the holders of the Shares) holding 5% or more of the capital stock of the Company or
(ii) 180 days; provided, that, notwithstanding the foregoing, Investor may sell up to 0.5% of the
total outstanding shares of Common Stock during such time.

     5.4 Expenses. Each party shall pay all of its own costs in connection with
the preparation, negotiation and execution of this Agreement and the consummation of the
transactions contemplated hereby.

     5.5 Right of First Offer.

          (a) Subject to the terms and conditions set forth below, from the date
hereof until such time as the Company effectuates an offering of its Common Stock to the public,
Investor shall have the right of first offer to purchase, on a pro rata basis, any Additional Stock
which the Company may, from time to time, propose to issue and sell. Investor’s pro rata share, for
purposes of this right of first offer, shall be determined by dividing (x) the total number of
shares of Common Stock which are owned by Investor, by (y) the total number of shares of
outstanding Common Stock on a fully-diluted basis. The failure by Investor to exercise its right

9

 

of first offer with respect to any particular issuance shall not affect in any way such right with
respect to any subsequent issuance.

          (b) The term “Additional Stock” shall mean Common Stock or
options, warrants or other rights to acquire or securities convertible into or exchangeable
for shares of Common Stock, including shares held in the Company’s treasury, but shall not include
(i) securities offered to the public pursuant to a registration statement approved by the
Board of Directors of the Company and filed with the Commission for a public offering and sale of
securities of the Company, (ii) securities issued for the acquisition of another corporation
or other entity by merger, purchase of all or substantially all of the assets of such other
corporation or other entity or other reorganization resulting in the ownership by the Company of not less
than 51% of the voting power of such other corporation or entity; provided that such transaction is
approved by a majority of the disinterested directors of the Company, (iii) options to
purchase up to 75,000 shares (as equitably adjusted for stock split, stock dividend, conversion or
reclassification) of Common Stock pursuant to the Company’s 2002 Stock Option Plan and any
options to purchase shares of Common Stock issued pursuant to the Company’s future stock
option plans or similar plans approved by the Board of Directors and the stockholders of the
Company, but only to the extent that not more than 15% of the options to purchase Common
Stock subject to any one such plan are issued to any one person or entity (including his or
its respective affiliates, as the case may be), (iv) securities issued as a result of any stock
split, stock dividend, conversion or reclassification of Common Stock, distributable on a pro rata basis to
all holders of Common Stock, (v) securities issued as a result of any stock split, stock dividend
or reclassification of Series A Preferred Stock, (vi) securities issued to any unaffiliated and
independent third party lenders pursuant to any bank financing arrangement approved by the
Board of Directors (including any securities issued upon exercise of such securities), (vii)
securities sold to stockholders of the Company pursuant to a general rights offering to all
stockholders, offered on a pro rata basis, (viii) securities issuable upon exercise of
options, warrants or other rights to acquire or securities convertible into or exchangeable for shares
of Common Stock that are currently outstanding, (ix) securities issued to directors of the
Company solely as compensation for service to the Company as a director up to a maximum of 10,000
shares of Common Stock (as equitably adjusted for stock split, stock dividend, conversion or
reclassification), (x) securities issued upon exercise or conversion of any Additional Stock,
(xi) securities issued in connection with any anti-dilution rights of any other stockholder of the
Company or (xii) securities sold pursuant to an offering or series of offerings of securities
of the Company up to an aggregate amount of $15,000,000.

          (c) In the event the Company intends to issue any Additional Stock, it
shall give Investor written notice (“First Offer Notice”) of such intention,
describing the type of Additional Stock to be issued, the price thereof and the general terms upon which the Company
proposes to effect such issuance. Investor shall have twenty (20) days (unless a shorter
period of time is agreed upon by Investor) from the date of any such First Offer Notice (the
“Initial Exercise Period”) to agree to purchase its pro rata share of such Additional Stock for
the purchase price and upon the terms and conditions specified in the Company’s First Offer Notice
by giving written notice to the Company stating the quantity of Additional Stock to be so
purchased. In the event there is a material change in the terms upon which Additional Stock is
offered by the Company following delivery of the First Offer Notice, the Company will issue a
new First Offer Notice and Investor will have the longer of (i) the remainder of the Initial

10

 

Exercise Period or (ii) ten (10) days from the date of issuance of the new First Offer Notice to
deliver a new notice of irrevocable acceptance to purchase the Additional Stock on the new terms
specified in such new First Offer Notice.

          (d) If Investor does not elect to purchase all of the Additional Stock so offered, the Company
shall have the right to sell the unsold Additional Stock to any third party within ninety (90) days
after the date of the First Offer Notice at a purchase price not less than, and upon terms and
conditions not more favorable than, the purchase price and terms and conditions set forth in the
First Offer Notice. If the Company shall not sell all of the Additional Stock within such ninety
(90) day period, such Additional Stock shall again be subject to the terms, conditions and
restrictions set forth in this Section 5.5.

          (e) For convenience in administration, the Company may offer and sell Additional Stock covered
by the right provided in Section 5.5 without first offering such securities to Investor, so long as
Investor is given prior notice of such sale and the opportunity to purchase its pro rata amount
(which shall be calculated after giving effect to such issuance to Investor of its pro rata amount)
within twenty (20) days after the close of the sale of the Additional Stock.

     5.6
Disclosure of Investment; Press Releases. The Company, on the one hand, and
Investor, on the other hand, agree that they will not, (a) except as may be necessary or desirable
in connection with a request by a governmental agency, regulatory or supervisory authority, stock
exchange or court or as required by law, and in the case of Investor only, other than to
affiliates, members or co-investors of Investor and employees of Investor or its affiliates,
members or co-investors, publicly disclose the transactions contemplated by the Agreement or any of
the terms hereof without the prior consent of Investor, on the one hand, and the Company, on the
other hand, or (b) use in advertising or publicity the name of any party hereto, or any partner or
employee of such party hereto or any of its respective affiliates, or any trade name, trademark,
trade device, service mark, symbol or any abbreviation, contraction or simulation thereof owned by
the other party hereto or any of its respective affiliates, in either case without the prior
written consent of such party; provided, however, that Investor may describe the transactions
contemplated hereby in any promotional literature prepared by or on behalf of Investor. From and
after the date hereof, neither the Company nor any of its Subsidiaries will represent, directly or
indirectly, that any product or any service provided by the Company has been approved or endorsed
by Investor or any of its affiliates without the prior written consent of Investor.

     5.7 Stockholders Agreement. Notwithstanding the terms of the Stockholders Agreement,
the Company agrees not to exercise its right of first refusal (and Investor shall not have to
comply with Article III of the Stockholders Agreement) with respect to the Shares to the extent
that Investor Transfers (as defined in the Stockholders Agreement) the Shares to any of its
Affiliates (as defined in the Stockholders Agreement). For avoidance of doubt, if the Company does
not exercise its option to purchase the Shares for any proposed Transfer by Investor pursuant to
which Article III of the Stockholders Agreement applies, such Transfer will be deemed a permissible
Transfer under Section 2.3 thereof.

11

 

6. Miscellaneous.

     6.1 All communications hereunder will be in writing and, except as otherwise
provided, will be delivered at, or mailed by certified mail, return receipt requested, or
telegraphed to, the following addresses:

	 	 	 	 	 
	 

	 	If to the Company, to:	 	Changing World Technologies, Inc.
	 

	 	 	 	460 Hempstead Avenue
	 

	 	 	 	West Hempstead, New York 11552
	 

	 	 	 	Attn: President
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Michael A. King
	 

	 	 	 	Weil, Gotshal & Manges, LLP
	 

	 	 	 	767 Fifth Avenue
	 

	 	 	 	New York, NY 10153
	 
	 	 	 	 
	 

	 	If to Investor, to:	 	Neil Z. Auerbach
	 

	 	 	 	HCM-CWT Investments I, LLC
	 

	 	 	 	15 Langeries Drive
	 

	 	 	 	Monsey, New York 10952
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Schulte Roth & Zabel LLP
	 

	 	 	 	919 Third Avenue
	 

	 	 	 	New York, New York 10022
	 

	 	 	 	Attn: Stephanie R. Breslow

     6.2 This Agreement shall be deemed to have been made and delivered in New York City and
shall be governed as to validity, interpretation, construction, effect and in all other respects by
the internal laws of the State of New York. Each of Investor and the Company (1) agree that any
legal suit, action or proceeding arising out of or relating to this Agreement, shall be instituted
exclusively in New York State Supreme Court, County of New York, or in the United States District
Court for the Southern District of New York, unless such court shall have refused such
jurisdiction, (2) waives any objection which Investor or the Company may have now or hereafter to
the venue of any such suit, action or proceeding, and (3) irrevocably consents to the jurisdiction
of the New York State Supreme Court, County of New York, and the United States District Court for
the Southern District of New York in any such suit, action or proceeding. Each of Investor and the
Company further agrees to accept and acknowledge service of any and all process which may be served
in any such suit, action or proceeding in the New York State Supreme Court, County of New York, or
in the United States District Court for the Southern District of New York and agrees that service
of process upon Investor or the Company, as the case may be, mailed by certified mail to Investor’s
address or the Company’s address, as the case may be, set forth in Section 6.1 above shall be
deemed in every respect

12

 

effective service of process upon Investor or the Company, as the case may be, in any such suit,
action or proceeding.

     6.3 Each party hereto agrees to use its reasonable best efforts to take any action which may
be necessary or appropriate or reasonably requested by the other party hereto in order to
effectuate or implement the provisions of this Agreement.

     6.4 Except for an assignment by Investor of its rights and obligations hereunder to any of its
Affiliates (as defined in the Stockholders Agreement), this Agreement is not assignable by either
party hereto without the consent of the other party hereto. The rights and obligations of the
parties under this Agreement shall bind and inure to the benefit of the parties and their
respective successors and permitted assigns.

     6.5 Each of the parties hereto hereby agrees that representations and warranties made by or on
behalf of it in this Agreement or in any document or instrument delivered pursuant hereto shall
survive the Closing Date.

     6.6 The parties hereto acknowledge that money damages would not be an adequate remedy at law
if any party fails to perform in any material respect any of its obligations hereunder, and
accordingly agree that each party, in addition to any other remedy to which it may be entitled at
law or in equity, shall be entitled to seek to compel specific performance of the obligations of
any other party under this Agreement, without the posting of any bond, in accordance with the terms
and conditions of this Agreement in any court of the United States or any State thereof having
jurisdiction, and if any action should be brought in equity to enforce any of the provisions of
this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy
at law.

     6.7 This Agreement may be executed in separate counterparts, all of which shall
constitute one agreement.

[Signature page follows]

13

 

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

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	CHANGING WORLD TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Brad Aldrich
 

Brad Aldrich
	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	INVESTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	HCM-CWT INVESTMENTS I, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Hudson Capital Management, LLC,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
Name:	 	 
 

	 	 
	 

	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}]]