3. Agriculture Fertilizer Food Waste Market Lawns CONVERTED ORGANICS BUSINESS MODEL Lawn Care Food waste represents 20% of U.S. solid waste stream and is land-filled, where it decomposes to produce methane gas (20X more destructive than CO 2 as a greenhouse gas). Food Waste Expired/spoiled food from Supermarkets: Cereals and Grains Fruits and Vegetables Meat and Fish Fertilizer Sold Retail lawn & garden, turf, and agriculture markets Market Supermarket sells produce Fertilizer Produced Converted Organics processes waste into fertilizer Crop Production Agriculture Produces Crops

7. MARKETS AND PRODUCTS Product Type Products Retail Agriculture Golf Courses Professional Lawn Care Dry 8-1-4 4-1-8 Liquid 1-1-1 6-0-0

8. AGRICULTURE REPRESENTS 98% OF U.S. FERTILIZER DEMAND - 23M TONS, OR 40%, IS LIQUID FERTILIZER Millions of Tons Source: U.S. Fertilizer Institute and Scott’s Miracle-Gro Presentation Converted Organics target markets Market Product Type 1 58 Dry Bulk Liquid (includes anhydrous ammonia) 57 29 23 6 58 Dry Bagged Agriculture Non-Agriculture (Lawn & Garden, Professional Turf, Other)

9. THERE ARE SEVEN MILLION CERTIFIED ORGANIC FARM ACRES IN U.S., GROWING AT 12% CAGR Source: Organic Farming Research Foundation

10. THERE ARE 18,700 GOLF COURSES IN THE U.S. WITH INCREASING DEMAND FOR NATURALLY-BASED LIQUID FERTILIZERS DUE TO ENVIRONMENTAL CONCENRS Public 10,870 Private 4,850 Municipal 2,980 Source: Freedonia Golf Course Consumables to 2009

11. GOLF COURSES CAN REDUCE CHEMICAL INPUTS BY 50% AND CAN SWITCH FROM SYNTHETIC TO ORGANIC FERTILIZERS WITHOUT SACRIFICING TURF QUALITY Cornell Univ. U. Illinois

15. WAL-MART (FEBRUARY 2010)

16. SAM’S CLUB (FEBRUARY, 2010)