EX-10.1E 6 b61186a6exv10w1e.txt EX-10.1E - NOTE EXTENSIONS LETTER DATED FEBRUARY 7, 2007 EXHIBIT 10.1E David A. Rapaport Attorney at Law 333 Sandy Springs Circle, Suite 230 Atlanta, GA 30328 TEL (404) 257-9150 FAX (404) 257-9125 Admitted in GA and NY February 7, 2007 Converted Organics Inc 7A Commercial Wharf West Boston, MA 02110 Attention: Edward J. Gildea President and CEO Re: Note Extensions Dear Ed: This letter is to confirm that as of today, February 7, 2007: 1. I have received signed letters in the form of Exhibit 1 hereto, ("Bridge Note Extension Letter"), for an aggregate of $843,000 principal amount, from each of the holders of Converted Organics Inc.'s notes listed on Schedule 1 hereto The notes listed on Schedule 1 hereto and Schedule 2 hereto are referred to as the "Bridge Notes." 2. In accordance with the terms of the Bridge Note Extension Letter, I hereby extend the Maturity Date of the Bridge Notes held by the persons listed on Schedule 1 to March 19, 2007, and upon receipt of Bridge Note Extension Letters from the persons listed on Schedule 2, I hereby extend the Maturity Date of those Bridge Notes to March 19, 2007 as well. 3. I have the right under the Bridge Note Extension Letters to further extend the Maturity Date of the Bridge Notes to April 19, 2007; I shall do so if such action is required to avoid a default under any of the Bridge Notes listed on Schedule 1 and for the Bridge Notes listed on Schedule 2 for which I have a signed Bridge Note Extension Letter. Very truly yours, /s/ David A. Rapaport David A. Rapaport Exhibit 1 Mr. Edward J. Gildea, President Converted Organics Inc. 7A Commercial Wharf West Boston, MA 02210 January 12, 2007 Re: April 11, 2006 FINANCING TERMS AGREEMENT Dear Mr. Gildea: This letter confirms that the COMPANY and the undersigned PURCHASER of UNITS pursuant to the above-referenced FINANCING TERMS AGREEMENT AND PURSUANT TO THE EXTENSION LETTER DATED OCTOBER 16, 2006 (attached hereto as Exhibit A) agree as follows (CAPITALIZED/ITALIC terms shall have the same meaning ascribed to them in the FINANCING TERMS AGREEMENT): 1. The MATURITY DATE is hereby extended to the earlier of February 19, 2007 or the closing of a PUBLIC OFFERING. 2. The COMPANY's obligation to deliver ALTERNATE BRIDGE EQUITY UNITS in the absence of a PUBLIC OFFERING is postponed to February 19, 2007. 3. Up through February 19, 2007 the COMPANY at its option shall have the right, but not the obligation, to pay the Bridge NOTES interest in PRIMARY BRIDGE EQUITY UNITS (or ALTERNATE BRIDGE EQUITY UNITS, as the case may be). Any PRIMARY BRIDGE EQUITY UNITS so issued shall be entitled to the same registration rights set forth in the FINANCING TERMS AGREEMENT for all other PRIMARY BRIDGE EQUITY UNITS. 4. The undersigned hereby appoints David A. Rapaport, Esq. (Executive Vice President and General Counsel of High Capital Finding, LLC) as his/her/its Agent to permit up to two (2) 30-day Maturity Date extensions. Notwithstanding the MATURITY DATE extension, and the FINANCING TERMS AGREEMENT AND THE EXTENSION LETTER DATED OCTOBER 16, 2006, the COMPANY agrees that the interest rate on the BRIDGE NOTES shall be computed at the rate of 18% per annum from October 16, 2006 to the date of payment in full of all interest and principal on the BRIDGE NOTES. Very truly yours, --------------------------------- Accepted and agreed: Converted Organics Inc. By: Date: ---------------------------------------- --------------------- Edward J. Gildea, President 2 Schedule 1 List of Converted Organics Bridge Investors, that executed Jan 12, 2007 extension
INVESTMENT DATE PRINCIPAL ---------- --------- 1 Lea Adar 6-Jun-06 $20,000 2 Attar Family Ltd. 16-May-06 $17,000 Attar Family Ltd. 6-Jun-06 $25,000 3 Leslie Bardt 16-May-06 $ 5,000 4 Richard Bassin 16-May-06 $25,000 Richard Bassin 6-Jun-06 $15,000 5 Marc and Ellen Becker Tenants in Common 16-May-06 $15,000 6 Ronald J. Berk 6-Jun-06 $50,000 7 Morrell Berkowitz 16-May-06 $ 5,000 8 James & Carole Bos JTWROS 16-May-06 $ 5,000 9 Fred A. Brasch 6-Jun-06 $15,000 10 Diana Budzanoski 6-Jun-06 $10,000 11 Bushrod Burns 16-May-06 $10,000 12 Howard Commander 6-Jun-06 $50,000 13 Scott Commander 6-Jun-06 $10,000 14 Herbert W. Eber 16-May-06 $ 5,000 15 Kenneth & Jocelin Elan JTWROS 16-May-06 $15,000 16 J. David Forsyth 16-May-06 $17,000 17 Jack Franco 16-May-06 $10,000 18 Scott C. Garber 16-May-06 $10,000 19 Stephen W. Garber 16-May-06 $50,000 20 Sonia Gluckman 16-May-06 $25,000 21 Stephen M. Greenberg 16-May-06 $ 5,000 22 Christen M. Hart 6-Jun-06 $ 5,000 23 Ellis T. & Reva S. Hart JTWROS 6-Jun-06 $ 5,000 24 Mary L. Hart 6-Jun-06 $50,000 25 Hart Family Revocable Trust 16-May-06 $ 5,000 26 David & Joan Herskovits JTWROS 16-May-06 $17,000 David & Joan Herskovits JTWROS 6-Jun-06 $ 3,000 27 Insight Productions LLC 16-May-06 $ 5,000 28 Norman & Patty Johnson JTWROS 6-Jun-06 $ 5,000 29 Leslie & Barbara Kalmus JTWROS 16-May-06 $ 5,000 30 Michael G. Leff 6-Jun-06 $10,000 31 Jeffrey J. Leon 16-May-06 $10,000 32 Stanley C. Lipton 16-May-06 $10,000 33 Edgar O. Mandeville 6-Jun-06 $ 5,000 34 Melissa Manheim 6-Jun-06 $ 5,000 35 Alexander Michaels 16-May-06 $25,000 Alexander Michaels 6-Jun-06 $15,000 36 James J. Noonan 16-May-06 $17,000 37 Thomas J. & Irene M. Principe JTWROS 6-Jun-06 $10,000 38 David A. Rapaport 16-May-06 $25,000
3 39 Phyllis Rodbell 16-May-06 $ 5,000 40 Neil S. & Susan Hart Sandler JTWROS 6-Jun-06 $ 5,000 41 Sidney & Carol Strickland JTWROS 16-May-06 $ 17,000 42 Tall Oaks Group, LLC 6-Jun-06 $ 50,000 43 The David and Laura Owen Trust 16-May-06 $ 5,000 44 The Hart Organization Corp. 6-Jun-06 $ 20,000 45 Frances N. Veillette 16-May-06 $ 10,000 46 Jo Lynn and John Waller JTWROS 16-May-06 $ 10,000 47 Weiner Family Investments, LLC 6-Jun-06 $ 50,000 48 F. Kenneth Zadeck & Lisa Weiss JTWROS 16-May-06 $ 25,000 -------- TOTAL: $843,000 ========
4 Schedule 2 List of Converted Organics Bridge Investors, that have not executed Jan 12, 2007 extension
INVESTMENT DATE PRINCIPAL ---------- ---------- Harriet Stone Berkowitz 6-Jun-06 $ 5,000 Barbara H & Peter R Ducoffe JTWROS 16-May-06 $ 25,000 Neila & Lawrence B. Fisher JTWROS 6-Jun-06 $ 15,000 David R. Gross 16-May-06 $ 17,000 Gerald F. Kaplan 16-May-06 $ 25,000 Gerald F. Kaplan 6-Jun-06 $ 5,000 Jeffrey A. Kunkes, MD 6-Jun-06 $ 5,000 Gerald S. Leeseberg 16-May-06 $ 25,000 Gerald S. Leeseberg 6-Jun-06 $ 10,000 James M. Libby, MD 6-Jun-06 $ 20,000 Theresa Mari 6-Jun-06 $ 5,000 One Walton Place LLC 16-May-06 $ 15,000 ---------- TOTAL: $172,000 ==========
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