Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On September 24, 2009, Converted Organics (the "Company") entered into a 24 month note with Airside, Inc. for $335,085.00 (the "Note"). The terms of the Note require a $38,500.00 down payment, interest only payments for the first six months and commencing on April 24, 2010, the remaining principal balance to be paid in 18 monthly installments of $16,476.94. The Note has a stated interst rate of 6%.

Airside Inc. is a subcontractor for Armistead Mechancial, Inc. ("Armistead"). Armistead previously filed a construction lien on the Company's Woodbridge Facility and has commenced a lawsuit to enforce that lien, and by entering into this Note, the outstanding balance due to Armistead by the Company will be reduced by $335,085.00.

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