Document:

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                   AMENDMENT AND EXTENSION AGREEMENT REGARDING

                              COMMERCIAL TERM NOTE

                              DATED AUGUST 27, 2004

                                   IN FAVOR OF

                            CEDAR STREET GROUP, LLC.

Reference is made to that certain COMMERCIAL TERM NOTE, dated August 27, 2004
(THE "TERM NOTE"), in the original principal amount of $250,000.00 made by
Mining Organics Management, LLC, a predecessor in interest to CONVERTED ORGANICS
INC. ("CONVERTED ORGANICS"), in favor of CEDAR STREET GROUP, LLC ("CSG"). In
connection with the amendment and extension of the Term Note, the parties wish
to enter into this Amendment and Extension Agreement, dated as of May 1, 2007
("AGREEMENT") to set forth the mutual understanding of the Parties.

     In consideration of the foregoing, the mutual promises and covenants
hereinafter set forth in this Agreement, the Parties agree as follows:

     For the purposes of this Agreement, defined terms used without definition
shall have the meanings given them in the Term Note.

1. Acknowledgement of Obligations. Converted Organics acknowledges and agrees
that as of May 1, 2007, principal of $250,000 and accrued interest of $89,169.14
under the Term Note are due and owing to CSG and are unpaid. Converted Organics
further acknowledges and agrees that as of May 1, 2007, an aggregate of $36,000
in back rent in respect of certain office space at 1890 Palmer Avenue, Suite
203, Larchmont NY 10538 is due and owing to CSG and is unpaid.

2. Extension Agreement. In consideration of the payment by Converted Organics of
the sum of $125,169.14, representing accrued but unpaid interest under the Term
Note of $89,169.14 and payment in full of accrued but unpaid back rent of
$36,000, CSG agrees to modify and extend the payment of the principal and any
additional interest which accrues thereunder after the date hereof as follows:
The Maturity Date for the principal amount of $250,000 and interest accrued but
unpaid shall be upon the earliest to occur of: (i) an equity funding event or
the consummation of a new debt facility, (ii) the point in time when the EBITDA
of Converted Organics of Woodbridge, LLC, a New Jersey limited liability company
of which Converted Organics is the sole member, exceeds 1.2 times maximum annual
debt service ("MADS"), or (iii) December 31, 2008.

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3. Treatment of Obligations. Converted Organics covenants and agrees to treat
CSG no less favorably than it treats the holders of any other unsecured
indebtedness of Converted Organics existing as of the date hereof or hereafter
or any secured indebtedness incurred after the date hereof with respect (i) to
repayment of any and all amounts of principal and interest or (ii) any financial
or other accommodations Converted Organics may provide any of such other debt
holders at any time after the date hereof.

4. Event of Default; Acceleration of Debt. In addition to the items set forth in
the Term Note that constitute an Event of Default, it shall also be an Event of
Default if the employment of Thomas Buchanan with Converted Organics is
terminated by Converted Organics for any reason after the date hereof. In such
event, the entire principal sum and accrued interest under the Term Note, plus
any other amounts then owing to CSG, shall at once become due and payable
without notice.

5. Terms of Commercial Note. Except as specifically modified, extended or
otherwise amended hereby, the terms and conditions of the Commercial Note shall
remain in full force and effect.

6. Entire Agreement. This Agreement, together with the Commercial Note,
represent the entire agreement between the parties hereto with respect to the
subject matter hereof and supersedes all other prior and contemporaneous
agreements and understandings, oral and written.

IN WITNESS WHEREOF the parties hereto have executed and delivered this Amendment
and Extension Agreement as of this 1st day of May 2007.

CONVERTED ORGANICS INC.

By: /s/ Edward Gildea
    ---------------------------------
    Edward Gildea
    Chief Executive Officer

CEDAR STREET GROUP, LLC.

By: /s/ Mark T. McEnroe
    ---------------------------------
    Mark T. McEnroe
    Managing Director

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                        SUBORDINATED COMMERCIAL TERM NOTE

$89,170                                                           April 30, 2007

     For value received, CONVERTED ORGANICS INC, a Massachusetts limited
liability company, (the "Borrower") hereby promises to pay to the order of
Edward J. Gildea SEP IRA Account No. 4039-8625 ("Lender"), at the office of the
Lender located at Charles Schwab & Co. Inc., Alternative Investments Department,
211 Main Street, San Francisco, CA 94105, or at such other address as the holder
hereof may designate, the principal sum of EIGHTY NINE THOUSAND ONE HUNDRED AND
SEVENTY THOUSAND 00/100 ($89,170.00) DOLLARS, payable on the earlier of the last
day of the month that is the first month the Borrower is permitted to repay debt
under the terms of the Borrower's guaranty of the indebtedness of Converted
Organics of Woodbridge LLC (a wholly owned subsidiary of Borrower) or twenty
four months after the date the Note is executed by the Borrower and the funds
are advanced by Lender, (the "Maturity Date"). If not sooner paid all principal
and interest due hereunder and all other amounts due to the Lender shall be paid
on the Maturity Date.

     The interest on the unpaid balance shall accrue during the term of the note
and shall be payable on the dates provided above and is to be computed on the
basis of a three hundred sixty-five (365) day year and actual days at an annual
rate per year of twelve (12) percent.

     In the event a payment hereunder is due on a Saturday, Sunday or legal
holiday, payment shall be due on the succeeding business day.

     Borrower may prepay this Note in whole or in part, at any time, without
penalty or premium. Any such prepayment shall be credited first to the payment
of accrued interest to the date of the prepayment and then to the unpaid
principal installments of this Note in the inverse order of their maturity.

     Each of the following shall constitute an Event of Default hereunder:

          (a) If the Borrower shall fail to make any payment due under the terms
of this Note within one (1) day of the date it becomes due; or

          (b) If the Borrower shall be in default of or fail to keep and perform
any of the agreements or provisions contained in this Note or in any other
instrument, document, mortgage or agreement that may now or hereafter evidence,
govern or secure this Note; or

          (c) If the Borrower shall have a petition in bankruptcy filed against
it; or

          (d) If the Borrower shall file a voluntary petition in bankruptcy; or

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          (e) If the Borrower shall become insolvent or have its business fail;

then, and in any such event, the entire principal sum and accrued interest shall
at once become due and payable without notice at the option of the Lender or
other Holder of this Note. Failure to exercise this option or any other option
of the Lender or other Holder granted in any other loan documents that secure
this Note to accelerate repayment of said principal and accrued interest shall
not constitute a waiver of the right to exercise the same at a subsequent time
so long as such default remains uncured, nor shall the same constitute a waiver
of the right to exercise any such option, in the event of any subsequent
default. The rights, remedies and options of the Lender or other Holder to
declare the entire principal and accrued interest immediately due and payable as
provided in this Note shall be in addition to all other rights, remedies and
options of the Lender or other Holder to declare said principal and accrued
interest immediately due and payable, as provided in any other loan documents
that secure this Note.

     Borrower agrees to pay all taxes levied or assessed upon the outstanding
principal against any holder of this Note and to pay all costs, including
attorneys' fees, costs relating to the appraisal and/or valuation of assets and
all other costs and expenses incurred in the collection, protection,
preservation, defense, administration or enforcement of this Note or endorsement
of this Note or in any litigation arising out of the transactions of which this
Note or endorsement of this Note is a part.

     THE LENDER AND THE BORROWER IRREVOCABLY WAIVE ALL RIGHT TO A TRIAL BY JURY
IN ANY PROCEEDING HEREAFTER INSTITUTED BY OR AGAINST THE LENDER OR THE BORROWER
IN RESPECT OF THIS NOTE OR ARISING OUT OF ANY DOCUMENT, INSTRUMENT OR AGREEMENT
EVIDENCING, GOVERNING OR SECURING THIS NOTE.

     BORROWER (1) ACKNOWLEDGES THAT THE LOAN EVIDENCED BY THIS NOTE IS PART OF A
COMMERCIAL TRANSACTION AND (2) TO THE EXTENT PERMITTED BY ANY STATE OR FEDERAL
LAW, WAIVES THE RIGHT TO PRIOR NOTICE OF AND A HEARING ON THE RIGHT OF ANY
HOLDER OF THIS NOTE TO ANY REMEDY OR COMBINATION OF REMEDIES THAT ENABLES SAID
HOLDER, BY WAY OF ATTACHMENT, FOREIGN ATTACHMENT, GARNISHMENT OR REPLEVIN, TO
DEPRIVE BORROWER OF ANY OF ITS PROPERTY, AT ANY TIME, PRIOR TO FINAL JUDGEMENT
IN ANY LITIGATION INSTITUTED IN CONNECTION WITH THIS NOTE. The Borrower further
waives diligence, demand, presentment for payment, notice of nonpayment, protest
and notice of protest, and notice of any renewals or extensions of this Note,
and all rights under any statute of limitations, and agree that the time for
payment of this Note may be changed and extended at Lender's sole discretion,
without impairing their liability hereon, and further consent to the release of
all or any part of the security for the payment hereof at the discretion of
Lender, or the release of any party liable for this obligation without affecting
the liability of the other parties hereto. Any delay on the part of the Lender
in exercising any right hereunder shall not operate as a waiver of any such
right, and any waiver granted for one occasion shall not operate as a waiver in
the event of any subsequent default.

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     If any provision of this Note shall, to any extent, be held invalid or
unenforceable, then only such provision shall be deemed ineffective and the
remainder of this Note shall not be affected.

     This Note shall bind the heirs, executors, administrators, successors and
assigns of Borrower and shall inure to the benefit of the Lender, his successors
and assigns.

     This Note is executed in and shall be governed by the laws of the
Commonwealth of Massachusetts.

     THIS NOTE IS SUBORDINATED TO THE TERMS AND CONDITIONS OF THE GUARANTY,
DATED FEBRUARY 16, 2007 OF THE BORROWER TO THE NEW JERSEY ECONOMIC DEVELOPMENT
AUTHORITY, A BODY POLITIC, UNDER WHOSE AUTHORITY CONVERTED ORGANICS OF
WOODBRIDGE LLC ISSUED AND SOLD A $17.5 MILLION DOLLAR SOLID WASTE RECYCLING BOND
AND TO OPPENHEIMERFUNDS A CORPORATION ORGANIZED AND EXISTING UNDER THE LAWS OF
THE STATE OF NEW YORK THE PURCHASER OF THE BOND WHO HAS CONSENTED TO THIS
TRANSACTION.

                                        Converted Organics Inc

                                        By: /s/ David Allen
                                            ------------------------------------
                                            David Allen
                                            Its CFO
                                            Duly Authorized

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