Old Plant-tone – Use or Toss (as in, not in the garden)

Hi all,  I was planning to use some leftover Plant-Tone (http://www.espoma.com/p_consumer/tones_plant.html) from last year but when I unrolled the bag, I saw a bunch of small, mealy, wormy looking white bugs, and it smelled bad.  I know that, generally, when something smells bad, that’s just not good – but, this being organic plant food/fertilizer and all, I’m thinking maybe it’s ok?  Advice??? p.s. left a message with the company – based in NJ – but I’m gardening today.  General, follow-up question to this is – if you’re not going to use something in your garden (like this or the wild onions I was thankfully swayed away from – gracias, Ron y Megan), should it also stay out of the compost?