Document:

EX-10.1

EXECUTION COPY

SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”) is dated as of June 21, 2007, by and
among Metalico, Inc., a Delaware corporation (the “Company”), and each purchaser identified on the
signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively,
the “Purchasers”).

RECITALS

A. The Company and each Purchaser is executing and delivering this Agreement in reliance upon
the exemption from securities registration afforded by Section 4(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by
the United States Securities and Exchange Commission (the “Commission”) under the Securities Act.

B. Each Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to
sell, upon the terms and conditions stated in this Agreement, that aggregate number of shares of
common stock, par value $0.001 per share (the “Common Stock”), of the Company, set forth below such
Purchaser’s name on the signature page of this Agreement (which aggregate amount for all Purchasers
together shall be      shares of Common Stock and shall be collectively referred to herein
as the “Shares”).

C. The Company has engaged Canaccord Adams Inc. as its placement agent (the “Placement Agent”)
for the offering of the Shares on a “best efforts” basis.

D. Contemporaneously with the execution and delivery of this Agreement, the parties hereto are
executing and delivering a Registration Rights Agreement, substantially in the form attached hereto
as Exhibit A (the “Registration Rights Agreement”), pursuant to which, among other things,
the Company will agree to provide certain registration rights with respect to the Shares under the
Securities Act and the rules and regulations promulgated thereunder and applicable state securities
laws.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the Company and the Purchasers hereby agree as follows:

ARTICLE I.

DEFINITIONS

1.0 Definitions. In addition to the terms defined elsewhere in this
Agreement, for all purposes of this Agreement, the following terms shall have the meanings
indicated in this Section 1.1:

“Action” means any action, suit, inquiry, notice of violation, proceeding (including any
partial proceeding such as a deposition) or investigation pending or, to the Company’s Knowledge,
threatened in writing against the Company, any Subsidiary or any of their respective properties
before or by any federal, state, county, local or foreign court, arbitrator, governmental or
administrative agency, regulatory authority, stock market, stock exchange or trading facility.

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly
through one or more intermediaries, Controls, is controlled by or is under common control with such
Person, as such terms are used in and construed under Rule 144. With respect to a Purchaser, any
investment fund or managed account that is managed on a discretionary basis by the same investment
manager as such Purchaser will be deemed to be an Affiliate of such Purchaser.

“Agreement” shall have the meaning ascribed to such term in the Preamble.

“Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City
are open for the general transaction of business.

“Closing” means the closing of the purchase and sale of the Shares pursuant to this Agreement.

“Closing Bid Price” means, for any security as of any date, the last closing price for such
security on the Principal Trading Market, as reported by Bloomberg, or, if the Principal Trading
Market begins to operate on an extended hours basis and does not designate the closing bid price
then the last bid price of such security prior to 4:00 p.m., New York City Time, as reported by
Bloomberg, or, if the Principal Trading Market is not the principal securities exchange or trading
market for such security, the last closing price of such security on the principal securities
exchange or trading market where such security is listed or traded as reported by Bloomberg, or if
the foregoing do not apply, the last closing price of such security in the over-the-counter market
on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid
price is reported for such security by Bloomberg, the average of the bid prices of any market
makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National
Quotation Bureau, Inc.). If the Closing Bid Price cannot be calculated for a security on a
particular date on any of the foregoing bases, the Closing Bid Price of such security on such date
shall be the fair market value as mutually determined by the Company and the holder. All such
determinations shall be appropriately adjusted for any stock dividend, stock split, stock
combination or other similar transaction during the applicable calculation period.

“Closing Date” means the Trading Day when all of the Transaction Documents have been executed
and delivered by the applicable parties thereto, and all of the conditions set forth in Sections
2.1, 2.2, 5.1 and 5.2 hereof are satisfied, or such other date as the parties may agree.

“Commission” has the meaning set forth in the Recitals.

“Common Stock” has the meaning set forth in the Recitals, and also includes any securities
into which the Common Stock may hereafter be reclassified or changed.

“Common Stock Equivalents” means any securities of the Company or any Subsidiary which would
entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any
debt, preferred stock, rights, options, warrants or other instrument that is at any time
convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock or other securities that entitle the holder to receive, directly or indirectly, Common Stock.

“Company Counsel” means Lowenstein Sandler, PC.

“Company Deliverables” has the meaning set forth in Section 2.2(a).

“Company’s Knowledge” means with respect to any statement made to the knowledge of the
Company, that the statement is based upon the actual knowledge of the officers of the Company
having responsibility for the matter or matters that are the subject of the statement.

“Control” (including the terms “controlling”, “controlled by” or “under common control with”)
means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

“Disclosure Materials” has the meaning set forth in Section 3.1(h).

“Effective Date” means the date on which the Registration Statement required by Section 2(a)
of the Registration Rights Agreement is first declared effective by the Commission.

“Environmental Laws” has the meaning set forth in Section 3.1(l).

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder.

“GAAP” means U.S. generally accepted accounting principles, as applied by the Company.

“Indemnified Person” has the meaning set forth in Section 4.7(b).

“Intellectual Property” has the meaning set forth in Section 3.1(r).

“Irrevocable Transfer Agent Instructions” means, with respect to the Company, the Irrevocable
Transfer Agent Instructions, in the form of Exhibit D, executed by the Company and
delivered to and acknowledged in writing by the Transfer Agent.

“Lien” means any lien, charge, claim, encumbrance, security interest, right of first refusal,
preemptive right or other restrictions of any kind.

“Material Adverse Effect” means a material adverse effect on the results of operations,
assets, business or financial condition of the Company and the Subsidiaries, taken as a whole,
except that any of the following, either alone or in combination, shall not be deemed a Material
Adverse Effect: (i) effects caused by changes or circumstances affecting general market conditions
in the U.S. economy or which are generally applicable to the industry in which the Company and the
Subsidiaries operates, (ii) effects resulting from or relating to the announcement or disclosure of
the sale of the Shares or other transactions contemplated by this Agreement, or (iii) effects
caused by any event, occurrence or condition resulting from or relating to the taking of any action
in accordance with this Agreement.

“Material Contract” means any contract of the Company that was filed (or should have been
filed) as an exhibit to the SEC Reports pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation
S-K.

“Material Permits” has the meaning set forth in Section 3.1(p).

“Memorandum” means that certain Confidential Private Placement Memorandum of the Company dated
June 6, 2007.

“New York Courts” means the state and federal courts sitting in the City of New York, Borough
of Manhattan.

“Outside Date” means July 31, 2007.

“Person” means an individual, corporation, partnership, limited liability company, trust,
business trust, association, joint stock company, joint venture, sole proprietorship,
unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

“Principal Trading Market” means the Trading Market on which the Common Stock is primarily
listed on and quoted for trading, which, as of the date of this Agreement and the Closing Date,
shall be the American Stock Exchange.

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition), whether commenced or
threatened.

“Purchase Price” means $7.00 per Share.

“Purchaser Deliverables” has the meaning set forth in Section 2.2(b).

“Purchaser Party” has the meaning set forth in Section 4.7(a).

“Registration Rights Agreement” has the meaning set forth in the Recitals.

“Registration Statement” means a registration statement meeting the requirements set forth in
the Registration Rights Agreement and covering the resale by the Purchasers of the Registrable
Securities (as defined in the Registration Rights Agreement).

“Required Approvals” has the meaning set forth in Section 3.1(e).

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

“SEC Reports” has the meaning set forth in Section 3.1(h).

“Secretary’s Certificate” has the meaning set forth in Section 2.2(a)(vi).

“Securities Act” means the Securities Act of 1933, as amended.

“Short Sales” include, without limitation, (i) all “short sales” as defined in Rule 200
promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and all
types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short
sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and
similar arrangements (including on a total return basis), and (ii) sales and other transactions
through non-U.S. broker dealers or foreign regulated brokers.

“Subscription Amount” means with respect to each Purchaser, the aggregate amount to be paid
for the Shares purchased hereunder as indicated on such Purchaser’s signature page to this
Agreement next to the heading “Aggregate Purchase Price (Subscription Amount)”.

“Subsidiary” means any entity in which the Company, directly or indirectly, owns capital stock
or holds an equity or similar interest.

“Trading Affiliate” has the meaning set forth in Section 3.2(h).

“Trading Day” means (i) a day on which the Common Stock is listed or quoted and traded on its
Principal Trading Market (other than the OTC Bulletin Board), or (ii) if the Common Stock is not
listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is
traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the
Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the
over-the-counter market as reported in the “pink sheets” by Pink Sheets LLC (or any similar
organization or agency succeeding to its functions of reporting prices); provided, that in the
event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof,
then Trading Day shall mean a Business Day.

“Trading Market” means whichever of the New York Stock Exchange, the American Stock Exchange,
the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or the OTC
Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question.

“Transaction Documents” means this Agreement, the schedules and exhibits attached hereto, the
Registration Rights Agreement, the Irrevocable Transfer Agent Instructions and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

“Transfer Agent” means Corporate Stock Transfer, Inc., or any successor transfer agent for the
Company.

ARTICLE II.

PURCHASE AND SALE

1.0 Closing.

( ) Amount. Subject to the terms and conditions set forth in this
Agreement, at the Closing, the Company shall issue and sell to each Purchaser, and each Purchaser
shall, severally and not jointly, purchase from the Company, such number of Shares equal to the
quotient resulting from dividing (i) the aggregate Subscription Amount for such Purchaser by (ii)
the Purchase Price, rounded down to the nearest whole Share.

( ) Closing. The Closing of the purchase and sale of the Shares shall take
place at the offices of Lowenstein Sandler PC, 65 Livingston Avenue, Roseland, New Jersey, on the
Closing Date or at such other locations or remotely by facsimile transmission or other electronic
means as the parties may mutually agree.

( ) Form of Payment. On the Closing Date, (i) the Company and the Placement
Agent shall instruct the Escrow Agent to wire the Escrow Amount in accordance with the terms of
Section 2.1(d), and (ii) the Company shall irrevocably instruct the Transfer Agent to deliver to
each Purchaser one or more stock certificates, free and clear of all restrictive and other legends
(except as expressly provided in Section 4.1(b) hereof) evidencing the number of Shares such
Purchaser is purchasing as is set forth on such Purchaser’s signature page to this Agreement next
to the heading “Number of Shares to be Acquired”, within three (3) Business Days after the Closing,
duly executed on behalf of the Company and registered in the name of such Purchaser.

(d) Escrow.

(i) Simultaneously with the execution and delivery of this Agreement by a Purchaser, such
Purchaser shall promptly cause a wire transfer of immediately available funds (U.S. dollars) in an
amount representing such Purchaser’s Subscription Amount to be paid to a non-interest bearing
escrow account of Lowenstein Sandler PC (the “Escrow Agent”) set forth on Exhibit G
attached hereto (the aggregate amounts received being held in escrow by the Escrow Agent are
referred to herein as the “Escrow Amount”). The Escrow Agent shall hold the Escrow Amount in
escrow in accordance with Section 2.1(d)(ii) below.

(ii) The Escrow Agent shall continue to hold the Escrow Amount in escrow in accordance with
and subject to this Agreement, from the date of its receipt of the funds constituting the Escrow
Amount until the soonest of:

(A) in the case of the termination of this Agreement in accordance with Section 6.18, in which
case, if the Escrow Agent then holds any portion of the Escrow Amount, then: (A) the Escrow Agent
shall return the portion of the Escrow Amount received from each Purchaser which it then holds, to
each such Purchaser, in accordance with written wire transfer instructions received from such
Purchaser; and (B) if Escrow Agent has not received written wire transfer instructions from any
Purchaser before the 30th day after such termination date, then the Escrow Agent may, in
its sole and absolute discretion, either (x) deposit that portion of the Escrow Amount to be
returned to such Purchaser in a court of competent jurisdiction on written notice to such
Purchaser, and Escrow Agent shall thereafter have no further liability with respect to such
deposited funds, or (y) continue to hold such portion of the Escrow Amount pending receipt of
written wire transfer instructions from such Purchaser or an order from a court of competent
jurisdiction; OR

(B) in the case of the Closing, receipt of written instructions from the Company and the
Placement Agent that the Closing shall have been consummated, in which case, the Escrow Agent shall
release the Escrow Amount constituting the aggregate purchase price as follows: (A) to the
Placement Agent, the fees payable to such Placement Agent, and (B) the balance of the aggregate
purchase price to the Company.

(iii) The Company and the Purchasers acknowledge and agree for the benefit of the Escrow Agent
(which shall be deemed to be a third party beneficiary of this Section 2.1(d)) as follows:

(A) The Escrow Agent: (i) is not responsible for the performance by the Company, the
Purchasers or Placement Agent of this Agreement or any of the Transaction Documents or for
determining or compelling compliance therewith; (ii) is only responsible for (A) holding the Escrow
Amount in escrow pending receipt of written instructions from the Company and the Placement Agent
directing the release of the Escrow Amount, and (B) disbursing the Escrow Amount in accordance with
the written instructions from the Company and the Placement Agent, each of the responsibilities of
the Escrow Agent in clause (A) and (B) is ministerial in nature, and no implied duties or
obligations of any kind shall be read into this Agreement against or on the part of the Escrow
Agent (collectively, the “Escrow Agent Duties”); (iii) shall not be obligated to take any legal or
other action hereunder which might in its judgment involve or cause it to incur any expense or
liability unless it shall have been furnished with indemnification acceptable to it, in its sole
discretion; (iv) may rely on and shall be protected in acting or refraining from acting upon any
written notice, instruction (including, without limitation, wire transfer instructions, whether
incorporated herein or provided in a separate written instruction), instrument, statement,
certificate, request or other document furnished to it hereunder and believed by it to be genuine
and to have been signed or presented by the proper Person, and shall have no responsibility for
making inquiry as to, or for determining, the genuineness, accuracy or validity thereof, or of the
authority of the Person signing or presenting the same; and (v) may consult counsel satisfactory to
it, and the opinion or advice of such counsel in any instance shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in
good faith and in accordance with the opinion or advice of such counsel. Documents and written
materials referred to in this Section 2.1(d)(iii)(A) include, without limitation, e-mail
and other electronic transmissions capable of being printed, whether or not they are in fact
printed; and any such e-mail or other electronic transmission may be deemed and treated by the
Escrow Agent as having been signed or presented by a Person if it bears, as sender, the Person’s
e-mail address.

(B) The Escrow Agent shall not be liable to anyone for any action taken or omitted to be taken
by it hereunder, except in the case of Escrow Agent’s gross negligence or willful misconduct in
breach of the Escrow Agent Duties. IN NO EVENT SHALL THE ESCROW AGENT BE LIABLE FOR INDIRECT,
PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGE OR LOSS (INCLUDING BUT NOT LIMITED TO LOST PROFITS)
WHATSOEVER, EVEN IF THE ESCROW AGENT HAS BEEN INFORMED OF THE LIKELIHOOD OF SUCH LOSS OR DAMAGE AND
REGARDLESS OF THE FORM OF ACTION.

(C) The Company and the Purchasers hereby indemnify and hold harmless the Escrow Agent from
and against any and all loss, liability, cost, damage and expense, including, without limitation,
reasonable counsel fees and expenses, which the Escrow Agent may suffer or incur by reason of any
action, claim or proceeding brought against the Escrow Agent arising out of or relating to the
performance of the Escrow Agent Duties, unless such action, claim or proceeding is exclusively the
result of the willful misconduct, bad faith or gross negligence of the Escrow Agent.

(D) Escrow Agent has acted as legal counsel to the Company in connection with this Agreement
and the other Transaction Documents, is merely acting as a stakeholder under this Agreement and is,
therefore, hereby authorized to continue acting as legal counsel to the Company including, without
limitation, with regard to any dispute arising out of this Agreement, the other Transaction
Documents, the Escrow Amount or any other matter. The Purchasers hereby expressly consents to
permit the Escrow Agent to represent the Company in connection with all matters relating to this
Agreement, including, without limitation, with regard to any dispute arising out of this Agreement,
the other Transaction Documents, the Escrow Amount or any other matter, and hereby waives any
conflict of interest or appearance of conflict or impropriety with respect to such representation.
Each of the Purchasers has consulted with its own counsel specifically about this Section 2.1(d) to
the extent they deemed necessary, and has entered into this Agreement after being satisfied with
such advice.

(E) Escrow Agent shall have the right at any time to resign for any reason and be discharged
of its duties as escrow agent hereunder (including without limitation the Escrow Agent Duties) by
giving written notice of its resignation to the Company, the Placement Agent and the Purchasers at
least ten (10) calendar days prior to the specified effective date of such resignation. All
obligations of the Escrow Agent hereunder shall cease and terminate on the effective date of its
resignation and its sole responsibility thereafter shall be to hold the Escrow Amount, for a period
of ten (10) calendar days following the effective date of resignation, at which time,

(I) if a successor escrow agent shall have been appointed and have accepted
such appointment in a writing to both the Company and the Purchasers, then upon
written notice thereof given to each of the Purchasers, the Escrow Agent shall
deliver the Escrow Amount to the successor escrow agent, and upon such delivery, the
Escrow Agent shall have no further liability or obligation; or

(II) if a successor escrow agent shall not have been appointed, for any reason
whatsoever, Escrow Agent shall at its option in its sole discretion, either (A)
deliver the Escrow Amount to a court of competent jurisdiction selected by the
Escrow Agent and give written notice thereof to the Company, the Placement Agent and
the Purchasers, or (B) continue to hold the Escrow Amount in escrow pending written
direction from the Company and the Placement Agent in form and formality
satisfactory to the Escrow Agent.

(F) In the event that the Escrow Agent shall be uncertain as to its duties or rights hereunder
or shall receive instructions with respect to the Escrow Amount or any portion thereunder which, in
its sole discretion, are in conflict either with other instructions received by it or with any
provision of this Agreement, Escrow Agent shall have the absolute right to suspend all further
performance under this Agreement (except for the safekeeping of such Escrow Amount) until such
uncertainty or conflicting instructions have been resolved to the Escrow Agent’s sole satisfaction
by final judgment of a court of competent jurisdiction, joint written instructions from the
Company, the Placement Agent and all of the Purchasers, or otherwise. In the event that any
controversy arises between the Company and one or more of the Purchasers or any other party with
respect to this Agreement or the Escrow Amount, the Escrow Agent shall not be required to determine
the proper resolution of such controversy or the proper disposition of the Escrow Amount, and shall
have the absolute right, in its sole discretion, to deposit the Escrow Amount with the clerk of a
court selected by the Escrow Agent and file a suit in interpleader in that court and obtain an
order from that court requiring all parties involved to litigate in that court their respective
claims arising out of or in connection with the Escrow Amount. Upon the deposit by the Escrow
Agent of the Escrow Amount with the clerk of such court in accordance with this provision, the
Escrow Agent shall thereupon be relieved of all further obligations and released from all liability
hereunder.

(G) The provisions of this Section 2.1(d) shall survive any termination of this Agreement.

2.0 Closing Deliveries.   (a) On or prior to the Closing, the Company
shall issue, deliver or cause to be delivered to each Purchaser the following (the “Company
Deliverables”):

( ) this Agreement, duly executed by the Company;

( ) one or more stock certificates, free and clear of all restrictive and other
legends (except as provided in Section 4.1(b) hereof), evidencing the Shares subscribed for by
Purchaser hereunder, registered in the name of such Purchaser as set forth on the Stock Certificate
Questionnaire included as Exhibit B-2 hereto;

( ) a legal opinion of each of (i) Arnold S. Graber, General Counsel to the Company
and (ii) Company Counsel, together covering the matters set forth on Exhibit C hereto,
executed by such counsel and addressed to the Purchasers;

( ) the Registration Rights Agreement, duly executed by the Company;

( ) duly executed Irrevocable Transfer Agent Instructions acknowledged in writing by
the Transfer Agent;

( ) a certificate of the Secretary of the Company (the “Secretary’s Certificate”),
dated as of the Closing Date, (a) certifying the resolutions adopted by the Board of Directors of
the Company or a duly authorized committee thereof approving the transactions contemplated by this
Agreement and the other Transaction Documents and the issuance of the Shares, (b) certifying the
current versions of the certificate or articles of incorporation, as amended, and by-laws of the
Company and (c) certifying as to the signatures and authority of persons signing the Transaction
Documents and related documents on behalf of the Company, in the form attached hereto as
Exhibit E;

( ) the Compliance Certificate referred to in Section 5.1(h);

( ) written notice from the American Stock Exchange approving the Shares for
trading;

( ) a certificate evidencing the formation and good standing of the Company in such
entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such
jurisdiction, as of a date within five (5) days of the Closing Date;

( ) a certificate evidencing the Company’s qualification as a foreign corporation
and good standing issued by the Secretary of State (or comparable office) of each jurisdiction in
which the Company is qualified to do business as a foreign corporation, as of a date within ten
(10) days of the Closing Date; and

( ) a certified copy of the Certificate of Incorporation, as certified by the
Secretary of State of the State (or comparable office) of such entity’s jurisdiction of formation,
as of a date within ten (10) days of the Closing Date.

( ) On or prior to the Closing, each Purchaser shall deliver or cause to be
delivered to the Company the following (the “Purchaser Deliverables”):

( ) this Agreement, duly executed by such Purchaser;

( ) its Subscription Amount, in United States dollars and in immediately available
funds, by wire transfer to the escrow account set forth on Exhibit G attached hereto;

( ) the Registration Rights Agreement, duly executed by such Purchaser;

( ) a fully completed and duly executed Selling Stockholder Questionnaire in the
form attached as Annex B to the Registration Rights Agreement; and

( ) a fully completed and duly executed Accredited Investor Questionnaire and Stock
Certificate Questionnaire in the forms attached hereto as Exhibits B-1 and B-2,
respectively.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

1.0 Representations and Warranties of the Company. Except as set forth in
the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof, or disclosed in
the SEC Reports, the Company hereby represents and warrants as of the date hereof and the Closing
Date (except for the representations and warranties that speak as of a specific date, which shall
be made as of such date), to each of the Purchasers as follows:

( ) Subsidiaries. The Company has no direct or indirect Subsidiaries other
than those listed in Schedule 3.1(a) hereto. Except as disclosed in Schedule
3.1(a) hereto, the Company owns, directly or indirectly, all of the capital stock or comparable
equity interests of each Subsidiary free and clear of any and all Liens, and all the issued and
outstanding shares of capital stock or comparable equity interest of each Subsidiary are validly
issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe
for or purchase securities.

( ) Organization and Qualification. The Company and each of its
Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or organization (as applicable),
with the requisite power and authority to own or lease and use its properties and assets and to
carry on its business as currently conducted. Neither the Company nor any Subsidiary is in
violation of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. The Company and each of its Subsidiaries is
duly qualified to conduct business and is in good standing as a foreign corporation or other entity
in each jurisdiction in which the nature of the business conducted or property owned by it makes
such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not reasonably be expected to have a Material Adverse Effect.

( ) Authorization; Enforcement; Validity. The Company has the requisite
corporate power and authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents to which it is a party and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of each of the Transaction Documents to which
it is a party by the Company and the consummation by it of the transactions contemplated hereby and
thereby (including, but not limited to, the sale and delivery of the Shares) have been duly
authorized by all necessary corporate action on the part of the Company, and no further corporate
action is required by the Company, its Board of Directors or its shareholders in connection
therewith other than in connection with the Required Approvals. Each of the Transaction Documents
to which it is a party has been (or upon delivery will have been) duly executed by the Company and
is, or when delivered in accordance with the terms hereof, will constitute the legal, valid and
binding obligation of the Company enforceable against the Company in accordance with its terms,
except (i) as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the
enforcement of, creditors’ rights and remedies or by other equitable principles of general
application or (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies. There are no shareholder agreements, voting
agreements, or other similar arrangements with respect to the Company’s capital stock to which the
Company is a party or, to the Company’s Knowledge, between or among any of the Company’s
shareholders.

( ) No Conflicts. The execution, delivery and performance by the Company of
the Transaction Documents to which it is a party and the consummation by the Company of the
transactions contemplated hereby or thereby (including, without limitation, the issuance of the
Shares) do not and will not (i) violate any provision of the Company’s or any Subsidiary’s
certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii)
subject to the Required Approvals, breach or result in a default (or with notice or lapse of time
or both would result in a default) under, result in the creation of any Lien upon any of the
properties or assets of the Company or any Subsidiary or give to others any rights of termination,
amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any
Material Contract, or (iii) result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Company
or a Subsidiary is subject (including federal and state securities laws and regulations and the
rules and regulations, assuming the correctness of the representations and warranties made by the
Purchasers herein, of any self-regulatory organization to which the Company or its securities are
subject, including all applicable Trading Markets), or by which any property or asset of the
Company or a Subsidiary is bound or affected, except in the case of clause (iii) such as could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

( ) Filings, Consents and Approvals. Neither the Company nor any of its
Subsidiaries is required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution, delivery and performance
by the Company of the Transaction Documents (including the issuance of the Shares), other than (i)
the filing with the Commission of a Registration Statement in accordance with the requirements of
the Registration Rights Agreement, (ii) filings required by applicable state securities laws, (iii)
the filing of a Notice of Sale of Shares on Form D with the Commission under Regulation D of the
Securities Act, (iv) the filing of any requisite notices and/or application(s) to the Principal
Trading Market for the issuance and sale of the Common Stock and the listing of the Common Stock
for trading or quotation, as the case may be, thereon in the time and manner required thereby, (v)
the filings required in accordance with Section 4.5 of this Agreement and (vi) those that have been
made or obtained prior to the date of this Agreement (collectively, the “Required Approvals”).

( ) Issuance of the Shares. The Shares have been duly authorized and, when
issued and paid for in accordance with the terms of the Transaction Documents, will be duly and
validly issued, fully paid and nonassessable and free and clear of all Liens, other than
restrictions on transfer provided for in the Transaction Documents or imposed by applicable
securities laws and other than any Liens imposed by the Purchasers, and shall not be subject to
preemptive or similar rights. Assuming the accuracy of the representations and warranties of the
Purchasers in this Agreement, the Shares will be issued in compliance with all applicable federal
and state securities laws.

( ) Capitalization. The number of shares and type of all authorized, issued
and outstanding capital stock, options and other securities of the Company (whether or not
presently convertible into or exercisable or exchangeable for shares of capital stock of the
Company) has been set forth in the SEC Reports and has changed since the date of such SEC Reports
only to reflect stock option and warrant exercises and other than the grant of stock options
disclosed on Schedule 3(t). All of the outstanding shares of capital stock of the Company
are duly authorized, validly issued, fully paid and non-assessable, have been issued in compliance
in all material respects with all applicable federal and state securities laws, and none of such
outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe
for or purchase any capital stock of the Company. Except as specified in the SEC Reports: (i) no
shares of the Company’s capital stock are subject to preemptive rights or any other similar rights
or any liens or encumbrances suffered or permitted by the Company; (ii) other than the grant of
stock options disclosed on Schedule 3(t), there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into, or exercisable or exchangeable for, any shares of capital
stock of the Company, or contracts, commitments, understandings or arrangements by which the
Company is or may become bound to issue additional shares of capital stock of the Company or
options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, or exercisable or exchangeable for, any
shares of capital stock of the Company; (iii) there are no outstanding debt securities, notes,
credit agreements, credit facilities or other agreements, documents or instruments evidencing
indebtedness of the Company or by which the Company is or may become bound; (iv) there are no
financing statements securing obligations in any material amounts, either singly or in the
aggregate, filed in connection with the Company; (v) there are no agreements or arrangements under
which the Company is obligated to register the sale of any of its securities under the Securities
Act (except the Registration Rights Agreement); (vi) there are no outstanding securities or
instruments of the Company or which contain any redemption or similar provisions, and there are no
contracts, commitments, understandings or arrangements by which the Company is or may become bound
to redeem a security of the Company; (vii) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of the Shares; (viii)
the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or
any similar plan or agreement; and (ix) the Company has no liabilities or obligations required to
be disclosed in the SEC Reports (as defined herein) but not so disclosed in the SEC Reports, other
than those incurred in the ordinary course of the Company’s businesses and which, individually or
in the aggregate, do not or could not reasonably be expected to have a Material Adverse Effect.

( ) SEC Reports. The Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it under the Exchange Act, including
pursuant to Section 13(a) or 15(d) thereof, for the one year preceding the date hereof (or such
shorter period as the Company was required by law or regulation to file such material) (the
foregoing materials, including the exhibits thereto and documents incorporated by reference
therein, being collectively referred to herein as the “SEC Reports” and together with this
Agreement, the Schedules to this Agreement, and the Memorandum, the “Disclosure Materials”), on a
timely basis or has received a valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension. As of the date hereof, the Company is not
aware of any event occurring on or prior to the Closing Date (other than the transactions
contemplated by the Transaction Documents) that requires the filing of a Form 8-K after the
Closing. As of their respective dates, or to the extent corrected by a subsequent restatement, the
SEC Reports complied in all material respects with the requirements of the Securities Act and the
Exchange Act and the rules and regulations of the Commission promulgated thereunder.

( ) Financial Statements. The financial statements of the Company included
in the SEC Reports comply in all material respects with applicable accounting requirements and the
rules and regulations of the Commission with respect thereto as in effect at the time of filing (or
to the extent corrected by a subsequent restatement). Such financial statements have been prepared
in accordance with GAAP applied on a consistent basis during the periods involved, except as may be
otherwise specified in such financial statements or the notes thereto and except that unaudited
financial statements may not contain all footnotes required by GAAP, and fairly present in all
material respects the financial position of the Company and its consolidated subsidiaries taken as
a whole as of and for the dates thereof and the results of operations and cash flows for the
periods then ended, subject, in the case of unaudited statements, to normal, year-end audit
adjustments.

( ) Tax Matters. The Company and each of its Subsidiaries (i) has
accurately and timely prepared and filed all foreign, federal and state income and all other tax
returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has
paid all taxes and other governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those being contested in
good faith, with respect to which adequate reserves have been set aside on the books of the Company
and (iii) has set aside on its books provisions reasonably adequate for the payment of all taxes
for periods subsequent to the periods to which such returns, reports or declarations apply, except,
in the case of clauses (i) and (ii) above, where the failure to so pay or file any such tax,
assessment, charge or return could not reasonably be expected to have a Material Adverse Effect.

( ) Material Changes. Since the date of the latest audited financial
statements included within the SEC Reports, (i) there have been no events, occurrences or
developments that have had or could, either individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect, (ii) the Company has not incurred any material
liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other
liabilities incurred in the ordinary course of business consistent with past practice and (B)
liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or
required to be disclosed in filings made with the Commission, (iii) the Company has not materially
altered its method of accounting or the manner in which it keeps its accounting books and records,
(iv) the Company has not declared or made any dividend or distribution of cash or other property to
its shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock (other than in connection with repurchases of unvested stock issued to employees
of the Company), (v) the Company has not issued any equity securities to any officer, director or
Affiliate, except Common Stock issued pursuant to existing Company stock option or stock purchase
plans or executive and director corporate arrangements disclosed in the SEC Reports and (vi) there
has not been any material change or amendment to, or any waiver of any material right by the
Company under, any Material Contract under which the Company, any of its Subsidiaries, or any of
their respective assets is bound or subject. Except for the issuance of the Shares contemplated by
this Agreement or as set forth in Schedule 3.1(k) hereto, no event, liability or
development has occurred or exists with respect to the Company or its Subsidiaries or their
respective business, properties, operations or financial condition that would be required to be
disclosed by the Company under applicable securities laws at the time this representation is made
that has not been publicly disclosed at least one Trading Day prior to the date that this
representation is made.

( ) Environmental Matters. To the Company’s Knowledge, neither the Company
nor any of its Subsidiaries (i) is in violation of any statute, rule, regulation, decision or order
of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal
or release of hazardous or toxic substances or relating to the protection or restoration of the
environment or human exposure to hazardous or toxic substances (collectively, “Environmental
Laws”), (ii) owns or operates any real property contaminated with any substance that is in
violation of any Environmental Laws, (iii) is liable for any off-site disposal or contamination
pursuant to any Environmental Laws, or (iv) is subject to any claim relating to any Environmental
Laws; which violation, contamination, liability or claim has had or could, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect; and there is no pending or, to
the Company’s Knowledge, threatened investigation that might lead to such a claim.

( ) Litigation. There is no Action which (i) adversely affects or
challenges the legality, validity or enforceability of any of the Transaction Documents or the
Shares or (ii) except as specifically disclosed in the SEC Reports, could, if there were an
unfavorable decision, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. The Commission has not issued any stop order or other order suspending the
effectiveness of any registration statement filed by the Company or any of its Subsidiaries under
the Exchange Act or the Securities Act.

( ) Employment Matters. No material labor dispute exists or, to the
Company’s Knowledge, is imminent with respect to any of the employees of the Company which could
reasonably be expected to have a Material Adverse Effect. No executive officer of the Company (as
defined in Rule 501(f) of the 1933 Act) has notified the Company or any Subsidiary that such
officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer’s
employment with the Company or any such Subsidiary. No executive officer, to the Company’s
Knowledge, is in violation of any term of any employment contract, confidentiality, disclosure or
proprietary information agreement or non-competition agreement, or any other contract or agreement
or any restrictive covenant which could reasonably be expected to have a Material Adverse Effect,
and the continued employment of each such executive officer does not subject the Company or any
Subsidiary to any liability with respect to any of the foregoing matters. The Company and its
Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations
relating to employment and employment practices, terms and conditions of employment and wages and
hours, except where the failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

( ) Compliance. Neither the Company nor any of its Subsidiaries (i) is in
default under (and no event has occurred that has not been waived that, with notice or lapse of
time or both, would result in a default by the Company or any of its Subsidiaries under), nor has
the Company or any of its Subsidiaries received written notice of a claim that it is in default
under any indenture, loan or credit agreement or any other Material Contract (whether or not such
default or violation has been waived), (ii) is in violation of any order of any court, arbitrator
or governmental body having jurisdiction over the Company or its properties or assets, or (iii) is
or has been in violation of, or in receipt of written notice that it is in violation of, any
statute, rule or regulation of any governmental authority applicable to the Company, except in each
case as could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

( ) Regulatory Permits. The Company and each of its Subsidiaries possess
all certificates, authorizations and permits issued by the appropriate federal, state, local or
foreign regulatory authorities necessary to conduct its respective business as described in the SEC
Reports, except where the failure to possess such permits, individually or in the aggregate, has
not and could not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect (“Material Permits”), and (i) neither the Company nor any of its Subsidiaries has
received any notice of proceedings relating to the revocation or modification of any such Material
Permits and (ii) the Company is unaware of any facts or circumstances that the Company would
reasonably expect to give rise to the revocation or modification of any Material Permits.

( ) Title to Assets. The Company and its Subsidiaries have good and
marketable title in fee simple to all real property. The Company and its Subsidiaries have good
and marketable title to all personal property owned by them which is material to the business of
the Company and its Subsidiaries, taken as whole, in each case free and clear of all Liens except
such as do not materially affect the value of such property and do not interfere with the use made
and proposed to be made of such property by the Company and any of its Subsidiaries. Any real
property and facilities held under lease by the Company and any of its Subsidiaries are held by
them under valid, subsisting and enforceable leases with such exceptions as are not material and do
not interfere with the use made and proposed to be made of such property and buildings by the
Company and its Subsidiaries.

( ) Patents and Trademarks. The Company and its Subsidiaries own, possess,
license or have other rights to use all foreign and domestic patents, patent applications, trade
and service marks, trade and service mark registrations, trade names, copyrights, licenses,
inventions, trade secrets, technology, Internet domain names, know-how and other intellectual
property (collectively, the “Intellectual Property”) necessary for the conduct of their respective
businesses as now conducted or as proposed to be conducted. Except as set forth in the SEC Reports
and except where such violations or infringements could not reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect, (a) there are no rights of third
parties to any such Intellectual Property; (b) to the Company’s Knowledge, there is no infringement
by third parties of any such Intellectual Property; (c) there is no pending or, to the Company’s
Knowledge, threatened in writing action, suit, proceeding or claim by others challenging the
Company’s and its Subsidiaries’ rights in or to any such Intellectual Property; (d) there is no
pending or, to the Company’s Knowledge, threatened in writing action, suit, proceeding or claim by
others challenging the validity or scope of any such Intellectual Property; and (e) the Company has
not received a written notice that such Intellectual Property violates or infringes upon the rights
of any Person.

( ) Insurance. The Company and each of the Subsidiaries are insured by
insurers of recognized financial responsibility against such losses and risks and in such amounts
as the Company believes to be prudent and customary in the businesses and locations in which the
Company and such Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries has
received any notice of cancellation of any such insurance, nor does the Company or any Subsidiary
have any knowledge that it will be unable to renew its existing insurance coverage for the Company
and such Subsidiaries as and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business without a significant increase in cost.

( ) Transactions With Affiliates and Employees. Except as set forth in the
SEC Reports and other than the grant of stock options disclosed on Schedule 3(t), none of
the officers, directors or employees of the Company is presently a party to any transaction with
the Company (other than for ordinary course services as employees, officers or directors),
including any contract, agreement or other arrangement providing for the furnishing of services to
or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any such officer, director or employee or, to the Company’s Knowledge, any
corporation, partnership, trust or other entity in which any such officer, director, or employee
has a substantial interest or is an officer, director, trustee or partner, in each case in excess
of $100,000.

( ) Internal Accounting Controls. The Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset and liability accountability, (iii) access to assets or
incurrence of liabilities is permitted only in accordance with management’s general or specific
authorization, and (iv) the recorded accountability for assets and liabilities is compared with the
existing assets and liabilities at reasonable intervals and appropriate action is taken with
respect to any differences.

( ) Sarbanes-Oxley; Disclosure Controls. The Company is in compliance in
all material respects with all of the provisions of the Sarbanes-Oxley Act of 2002 which are
applicable to it, except where such noncompliance could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect. The Company maintains disclosure
controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange
Act).

( ) Certain Fees. No person or entity will have, as a result of the
transactions contemplated by this Agreement, any valid right, interest or claim against or upon the
Company or a Purchaser for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of the Company, other than the Placement
Agent with respect to the offer and sale of the Shares (which placement agent fees are being paid
by the Company). The Company shall indemnify, pay, and hold each Purchaser harmless against, any
liability, loss or expense (including, without limitation, attorneys’ fees and out-of-pocket
expenses) arising in connection with any such right, interest or claim.

( ) Private Placement. Assuming the accuracy of the Purchasers’
representations and warranties set forth in Section 3.2 of this Agreement and the accuracy of the
information disclosed in the Accredited Investor Questionnaires, no registration under the
Securities Act is required for the offer and sale of the Shares by the Company to the Purchasers
under the Transaction Documents.

( ) Registration Rights. Other than each of the Purchasers, no Person has
any right to cause the Company to effect the registration under the Securities Act of any
securities of the Company other than those securities which are currently registered on an
effective registration statement on file with the Commission.

( ) No Directed Selling Efforts or General Solicitation. Neither the
Company, nor any of its Affiliates, nor any Person acting on its or their behalf has conducted any
“general solicitation” or “general advertising” (as those terms are used in Regulation D) in
connection with the offer or sale of any of the Shares.

( ) No Integrated Offering. Assuming the accuracy of the Purchasers’
representations and warranties set forth in Section 3.2, none of the Company, its Subsidiaries nor
any of their Affiliates, nor any Person acting on its or their behalf has, directly or indirectly,
at any time within the past six months, made any offers or sales of any Company security or
solicited any offers to buy any security under circumstances that would (i) eliminate the
availability of the exemption from registration under Regulation D under the Securities Act in
connection with the offer and sale by the Company of the Shares as contemplated hereby or (ii)
cause the offering of the Shares pursuant to the Transaction Documents to be integrated with prior
offerings by the Company for purposes of any applicable law, regulation or shareholder approval
provisions, including, without limitation, under the rules and regulations of any Trading Market on
which any of the securities of the Company are listed or designated.

( ) Listing and Maintenance Requirements. The Company’s Common Stock is
registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no
action designed to terminate (or which would reasonably be expected to have the effect of
terminating) the registration of the Common Stock under the Exchange Act nor has the Company
received any notification that the Commission is contemplating terminating such registration.
Except as specified in the SEC Reports, the Company has not, in the 12 months preceding the date
hereof, received written notice from any Trading Market on which the Common Stock is or has been
listed or quoted to the effect that the Company is not in compliance with the listing or
maintenance requirements of such Trading Market. The Company is, and has no reason to believe that
it will not in the foreseeable future continue to be, in compliance in all material respects with
the listing and maintenance requirements for continued trading of the Common Stock on the Principal
Trading Market.

( ) Investment Company. Neither the Company nor any of its Subsidiaries is
required to be registered as, and is not an Affiliate of, and immediately following the Closing
will not be required to register as, an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

( ) Disclosure. The Company confirms that neither it nor any of its
officers or directors nor any other Person acting on its or their behalf has provided, and it has
not authorized the Placement Agent to provide, any Purchaser or its respective agents or counsel
with any information that it believes constitutes or could reasonably be expected to constitute
material, non-public information except (i) insofar as the existence, provisions and terms of the
Transaction Documents and the proposed transactions hereunder may constitute such information,
which will be disclosed by the Company in the Press Release as contemplated by Section 4.5 hereof
or (ii) insofar as any Purchaser has agreed to receive material non-public information beyond the
information described in clause (i) above. The Company understands and confirms that the Purchasers
will rely on the foregoing representations in effecting transactions in securities of the Company.

( ) Off Balance Sheet Arrangements. There is no transaction, arrangement,
or other relationship between the Company (or any Subsidiary) and an unconsolidated or other off
balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings
and is not so disclosed or that otherwise could reasonably be expected to have a Material Adverse
Effect.

( ) Acknowledgment Regarding Purchasers’ Purchase of Shares.  The Company
acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s
length purchaser with respect to the Transaction Documents and the transactions contemplated hereby
and thereby.  The Company further acknowledges that no Purchaser is acting as a financial advisor
or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated thereby and any advice given by any Purchaser or any of their
respective representatives or agents in connection with the Transaction Documents and the
transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Shares. 

( ) No Additional Agreements. The Company does not have any agreement or
understanding with any Purchaser with respect to the transactions contemplated by the Transaction
Documents other than as specified in the Transaction Documents.

( ) No Disagreements with Accountants. Except as specified in the SEC
Reports, there are no material disagreements presently existing between the Company and its
accountants and the Company is current with respect to any fees owed to its accountants.

2.0 Representations and Warranties of the Purchasers. Each Purchaser
hereby, for itself and for no other Purchaser, represents and warrants as of the date hereof and as
of the Closing Date to the Company as follows:

( ) Organization; Authority. Such Purchaser is an entity duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization with
the requisite corporate or partnership power and authority to enter into and to consummate the
transactions contemplated by the applicable Transaction Documents and otherwise to carry out its
obligations hereunder and thereunder. The execution, delivery and performance by such Purchaser of
the transactions contemplated by this Agreement have been duly authorized by all necessary
corporate or, if such Purchaser is not a corporation, such partnership, limited liability company
or other applicable like action, on the part of such Purchaser. Each of this Agreement and the
Registration Rights Agreement has been duly executed by such Purchaser, and when delivered by such
Purchaser in accordance with the terms hereof, will constitute the valid and legally binding
obligation of such Purchaser, enforceable against it in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’
rights and remedies or by other equitable principles of general application.

( ) No Conflicts. The execution, delivery and performance by such Purchaser
of this Agreement and the Registration Rights Agreement and the consummation by such Purchaser of
the transactions contemplated hereby and thereby will not (i) result in a violation of the
organizational documents of such Purchaser, (ii) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which such Purchaser is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities laws) applicable to
such Purchaser, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults,
rights or violations which could not, individually or in the aggregate, reasonably be expected to
have a material adverse effect on the ability of such Purchaser to perform its obligations
hereunder.

( ) Purchaser Status. Such Purchaser understands that the Shares are
“restricted securities” and have not been registered under the Securities Act or any applicable
state securities law and is acquiring the Shares as principal for its own account and not with a
view to, or for distributing or reselling such Shares or any part thereof in violation of the
Securities Act or any applicable state securities laws; provided, however, that by making the
representations herein, such Purchaser does not agree to hold any of the Shares for any minimum
period of time and reserves the right, subject to the provisions of this Agreement and the
Registration Rights Agreement, at all times to sell or otherwise dispose of all or any part of such
Shares pursuant to an effective registration statement under the Securities Act or under an
exemption from such registration and in compliance with applicable federal and state securities
laws. Such Purchaser is acquiring the Shares hereunder in the ordinary course of its business.
Such Purchaser does not presently have any agreement, plan or understanding, directly or
indirectly, with any Person to distribute or effect any distribution of any of the Shares (or any
securities which are derivatives thereof) to or through any person or entity; such Purchaser is not
a registered broker-dealer under Section 15 of the Exchange Act or an entity engaged in a business
that would require it to be so registered as a broker-dealer.

( ) Accredited Investor Status. At the time such Purchaser was offered the
Shares, it was, and at the date hereof it is an “accredited investor” as defined in Rule 501(a)
under the Securities Act and, if such Purchaser is domiciled in Canada, such Purchaser is also an
“accredited investor” within the meaning of National Instrument 45-106 of the Canadian Securities
Administration.

( ) General Solicitation. Such Purchaser is not purchasing the Shares as a
result of any advertisement, article, notice or other communication regarding the Shares published
in any newspaper, magazine or similar media or broadcast over television or radio or presented at
any seminar or any other general advertisement.

( ) Experience of Such Purchaser. Such Purchaser, either alone or together
with its representatives, has such knowledge, sophistication and experience in business and
financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Shares, and has so evaluated the merits and risks of such investment. Such
Purchaser is able to bear the economic risk of an investment in the Shares and, at the present
time, is able to afford a complete loss of such investment.

( ) Access to Information. Such Purchaser acknowledges that it has had the
opportunity to review the Disclosure Materials and has been afforded (i) the opportunity to ask
such questions as it has deemed necessary of, and to receive answers from, representatives of the
Company concerning the terms and conditions of the offering of the Shares and the merits and risks
of investing in the Shares; (ii) access to information about the Company and the Subsidiaries and
their respective financial condition, results of operations, business, properties, management and
prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain
such additional information that the Company possesses or can acquire without unreasonable effort
or expense that is necessary to make an informed investment decision with respect to the
investment. Neither such inquiries nor any other investigation conducted by or on behalf of such
Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right to
rely on the truth, accuracy and completeness of the Disclosure Materials and the Company’s
representations and warranties contained in the Transaction Documents. Such Purchaser has sought
such accounting, legal and tax advice as it has considered necessary to make an informed decision
with respect to its acquisition of the Shares.

( ) Certain Trading Activities. Other than with respect to the transactions
contemplated herein, since the earlier to occur of (1) the time that such Purchaser was first
contacted by the Company, the Placement Agent or any other Person regarding the transactions
contemplated hereby and (2) the tenth (10th) day prior to the date of this Agreement,
neither the Purchaser nor any Affiliate of such Purchaser which (x) had knowledge of the
transactions contemplated hereby, (y) has or shares discretion relating to such Purchaser’s
investments or trading or information concerning such Purchaser’s investments, including in respect
of the Shares, and (z) is subject to such Purchaser’s review or input concerning such Affiliate’s
investments or trading (collectively, “Trading Affiliates”) has directly or indirectly, nor has any
Person acting on behalf of or pursuant to any understanding with such Purchaser or Trading
Affiliate, effected or agreed to effect any transactions in the securities of the Company
(including, without limitation, any Short Sales involving the Company’s securities).
Notwithstanding the foregoing, in the case of a Purchaser and/or Trading Affiliate that is,
individually or collectively, a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser’s or Trading Affiliate’s assets and the
portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s or Trading Affiliate’s assets, the
representation set forth above shall apply only with respect to the portion of assets managed by
the portfolio manager that have knowledge about the financing transaction contemplated by this
Agreement. Other than to other Persons party to this Agreement, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the
existence and terms of this transaction). Notwithstanding the foregoing, no Purchaser makes any
representation, warranty or covenant hereby that it will not engage in Short Sales in the
securities of the Company after the time that the transactions contemplated by this Agreement are
first publicly announced as described in Section 4.5.

( ) Brokers and Finders. No Person will have, as a result of the
transactions contemplated by this Agreement, any valid right, interest or claim against or upon the
Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of the Purchaser.

( ) Independent Investment Decision. Such Purchaser has independently
evaluated the merits of its decision to purchase Shares pursuant to the Transaction Documents, and
such Purchaser confirms that it has not relied on the advice of any other Purchaser’s business
and/or legal counsel in making such decision. Such Purchaser understands that nothing in this
Agreement or any other materials presented by or on behalf of the Company to the Purchaser in
connection with the purchase of the Shares constitutes legal, tax or investment advice. Such
Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has
deemed necessary or appropriate in connection with its purchase of the Shares. Such Purchaser
understands that the Placement Agent has acted solely as the agent of the Company in this placement
of the Shares and such Purchaser has not relied on the business or legal advice of the Placement
Agent or any of its agents, counsel or Affiliates in making its investment decision hereunder, and
confirms that none of such Persons has made any representations or warranties to such Purchaser in
connection with the transactions contemplated by the Transaction Documents.

( ) Reliance on Exemptions. Such Purchaser understands that the Shares
being offered and sold to it in reliance on specific exemptions from the registration requirements
of United States federal and state securities laws and that the Company is relying in part upon the
truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties,
agreements, acknowledgements and understandings of such Purchaser set forth herein in order to
determine the availability of such exemptions and the eligibility of such Purchaser to acquire the
Shares.

( ) No Governmental Review. Such Purchaser understands that no United States
federal or state agency or any other government or governmental agency has passed on or made any
recommendation or endorsement of the Shares or the fairness or suitability of the investment in the
Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

( ) Regulation M. Such Purchaser is aware that the anti-manipulation rules
of Regulation M under the Exchange Act may apply to sales of Common Stock and other activities with
respect to the Common Stock by the Purchasers.

( ) Beneficial Ownership. Such Purchaser shall not, by reason of its
purchase of the Shares, become a beneficial owner (as defined under the Section 13(d) of the
Exchange Act) of 20% or more of the Company’s Common Stock.

( ) Residency. Such Purchaser’s principal executive offices are in the
jurisdiction set forth immediately below Purchaser’s name on the applicable signature page attached
hereto.

The Company and each of the Purchasers acknowledge and agree that no party to this Agreement has
made or makes any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in this Article III and the Transaction Documents.

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

1.0 Transfer Restrictions.

( ) Compliance with Laws. Notwithstanding any other provision of this
Article IV, each Purchaser covenants that the Shares may be disposed of only pursuant to an
effective registration statement under, and in compliance with the requirements of, the Securities
Act, or pursuant to an available exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act, and in compliance with any applicable state and
federal securities laws. In connection with any transfer of the Shares other than (i) pursuant to
an effective registration statement, (ii) to the Company, (iii) pursuant to Rule 144 (provided that
the Purchaser provides the Company with reasonable assurances (in the form of seller and broker
representation letters) that the securities may be sold pursuant to such rule) or (iv) pursuant to
Rule 144(k) following the applicable holding period (provided that the Purchaser provides the
Company with reasonable assurances in a representation letter that the securities may be sold
pursuant to such rule), the Company may require the transferor thereof to provide to the Company
and the Transfer Agent an opinion of counsel selected by the transferor and reasonably acceptable
to the Company and the Transfer Agent, the form and substance of which opinion shall be reasonably
satisfactory to the Company and the Transfer Agent, to the effect that such transfer does not
require registration of such transferred Shares under the Securities Act. As a condition of
transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and
shall have the rights of a Purchaser under this Agreement and the Registration Rights Agreement.

(b) Legends. Certificates evidencing the Shares shall bear any legend as required by
the “blue sky” laws of any state and a restrictive legend in substantially the following form,
until such time as they are not required under Section 4.1(c):

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT OR (II)
UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

The Company acknowledges and agrees that a Purchaser may from time to time pledge, and/or
grant a security interest in, some or all of the legended Shares in connection with applicable
securities laws, pursuant to a bona fide margin agreement in compliance with a bona fide margin
loan. Such a pledge would not be subject to approval or consent of the Company and no legal
opinion of legal counsel to the pledgee, secured party or pledgor shall be required in connection
with the pledge, but such legal opinion shall be required in connection with a subsequent transfer
or foreclosure following default by the Purchaser transferee of the pledge. No notice shall be
required of such pledge, but Purchaser’s transferee shall promptly notify the Company of any such
subsequent transfer or foreclosure. Each Purchaser acknowledges that the Company shall not be
responsible for any pledges relating to, or the grant of any security interest in, any of the
Shares or for any agreement, understanding or arrangement between any Purchaser and its pledgee or
secured party. At the appropriate Purchaser’s expense, the Company will execute and deliver such
reasonable documentation as a pledgee or secured party of Shares may reasonably request in
connection with a pledge or transfer of the Shares, including the preparation and filing of any
required prospectus supplement under Rule 424(b)(3) of the Securities Act or other applicable
provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder.
Each Purchaser acknowledges and agrees that, except as otherwise provided in Section 4.1(c), any
Shares subject to a pledge or security interest as contemplated by this Section 4.1(b) shall
continue to bear the legend set forth in this Section 4.1(b) and be subject to the restrictions on
transfer set forth in Section 4.1(a).

(c) Removal of Legends. The legend set forth in Section 4.1(b) above shall be removed
and the Company shall issue a certificate without such legend or any other legend to the holder of
the applicable Shares upon which it is stamped or issue to such holder by electronic delivery at
the applicable balance account at the Depository Trust Company (“DTC”), if (i) such Shares are
registered for resale under the Securities Act, (ii) such Shares are sold or transferred pursuant
to Rule 144 (assuming the transferor is not an Affiliate of the Company), or (iii) such Shares are
eligible for sale under Rule 144(k). The Company shall cause Company Counsel to issue the legal
opinion referred to in the Irrevocable Transfer Agent Instructions to the Company’s transfer agent
on the Effective Date. Any fees (with respect to the Transfer Agent, Company Counsel or otherwise)
associated with the issuance of such opinion or the removal of such legend shall be borne by the
Company. Following the Effective Date, or at such earlier time as a legend is no longer required
for certain Shares, the Company will use its best efforts to cause the Transfer Agent, no later
than three (3) Trading Days following the delivery by a Purchaser to the Transfer Agent (with
notice to the Company) of a legended certificate representing such Shares (endorsed or with stock
powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance
and/or transfer) (such third Trading Day, the “Legend Removal Date”), to deliver or cause to be
delivered to such Purchaser a certificate representing such Shares that is free from all
restrictive and other legends. The Company may not make any notation on its records or give
instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this
Section. Certificates for Shares subject to legend removal hereunder may be transmitted by the
Transfer Agent to the Purchasers by crediting the account of the Purchaser’s prime broker with DTC.

(d) Irrevocable Transfer Agent Instructions. The Company shall issue irrevocable
instructions to its transfer agent, and any subsequent transfer agent, to issue certificates
registered in the name of each Purchaser or its respective nominee(s), for the Shares in such
amounts as specified from time to time by each Purchaser to the Company in the form of Exhibit
D attached hereto (the “Irrevocable Transfer Agent Instructions”). The Company represents and
warrants that no instruction other than the Irrevocable Transfer Agent Instructions referred to in
this Section 4.1(d) will be given by the Company to its transfer agent in connection with this
Agreement, and that the Shares shall otherwise be freely transferable on the books and records of
the Company as and to the extent provided in this Agreement and the other Transaction Documents.
The Company acknowledges that a breach by it of its obligations under this Section 4.1(d) will
cause irreparable harm to a Purchaser. Accordingly, the Company acknowledges that the remedy at law
for a breach of its obligations under this Section 4.1(d) will be inadequate and agrees, in the
event of a breach or threatened breach by the Company of the provisions of this Section 4.1(d),
that a Purchaser shall be entitled, in addition to all other available remedies, to an order and/or
injunction restraining any breach and requiring immediate issuance and transfer, without the
necessity of showing economic loss and without any bond or other security being required.

(e) Acknowledgement. Each Purchaser hereunder acknowledges its primary
responsibilities under the Securities Act and accordingly will not sell the Shares or any interest
therein without complying with the requirements of the Securities Act. While the above-referenced
registration statement remains effective, each Purchaser hereunder may sell the shares in
accordance with the plan of distribution contained in the registration statement and if it does so
it will comply therewith and with the related prospectus delivery requirements unless an exemption
therefrom is available. Each Purchaser, severally and not jointly with the other Purchasers,
agrees that if it is notified by the Company in writing at any time after the date any legend is
removed pursuant to Section 4.1(c) hereof that the registration statement registering the resale of
the Shares is not effective or that the prospectus included in such registration statement no
longer complies with the requirements of Section 10 of the Securities Act, the Purchaser will
refrain from selling such Shares until such time as the Purchaser is notified by the Company that
such registration statement is effective or such prospectus is compliant with Section 10 of the
Exchange Act, unless such Purchaser is able to, and does, sell such Shares pursuant to an available
exemption from the registration requirements of Section 5 of the Securities Act. Both the Company
and its Transfer Agent, and their respective directors, officers, employees and agents, may rely on
this subsection (e) and each Purchaser hereunder will indemnify and hold harmless each of such
persons from any breaches or violations of this paragraph.

(f) Buy-In. If the Company shall fail for any reason or for no reason to issue to a
Purchaser unlegended certificates within three (3) Business Days of receipt of all documents
necessary for the removal of the legend set forth above (the “Deadline Date”), then, in addition to
all other remedies available to such Purchaser, if on or after the Business Day immediately
following such three (3) Business Day period, such Purchaser purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the holder
of shares of Common Stock that such Purchaser anticipated receiving from the Company without any
restrictive legend (a “Buy-In”), then the Company shall, within three (3) Business Days after such
Purchaser’s request and in such Purchaser’s sole discretion, either (i) pay cash to the Purchaser
in an amount equal to such Purchaser’s total purchase price (including brokerage commissions, if
any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s
obligation to deliver such certificate (and to issue such shares of Common Stock) shall terminate,
or (ii) promptly honor its obligation to deliver to such Purchaser a certificate or certificates
representing such shares of Common Stock and pay cash to the Purchaser in an amount equal to the
excess (if any) of the Buy-In Price over the product of (a) such number of shares of Common Stock,
times (b) the Closing Bid Price on the Deadline Date.

2.0 Acknowledgment of Dilution.  The Company acknowledges that the issuance
of the Shares may result in dilution of the outstanding shares of Common Stock, which dilution may
be substantial under certain market conditions.  The Company further acknowledges that its
obligations under the Transaction Documents, including without limitation its obligation to issue
the Shares pursuant to the Transaction Documents, are unconditional and absolute and not subject to
any right of set off, counterclaim, delay or reduction, regardless of the effect of any such
dilution or any claim the Company may have against any Purchaser and regardless of the dilutive
effect that such issuance may have on the ownership of the other shareholders of the Company.

3.0 Form D and Blue Sky. The Company agrees to timely file a Form D with
respect to the Shares as required under Regulation D. The Company, on or before the Closing Date,
shall take such action as the Company shall reasonably determine is necessary in order to obtain an
exemption for or to qualify the Shares for sale to the Purchasers at the Closing pursuant to this
Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to
obtain an exemption from such qualification). The Company shall make all filings and reports
relating to the offer and sale of the Shares required under applicable securities or “Blue Sky”
laws of the states of the United States following the Closing Date.

4.0 No Integration. The Company shall not sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the
Securities Act) that will be integrated with the offer or sale of the Shares in a manner that would
require the registration under the Securities Act of the sale of the Shares to the Purchasers, or
that will be integrated with the offer or sale of the Shares for purposes of the rules and
regulations of any Trading Market such that it would require shareholder approval prior to the
closing of such other transaction unless shareholder approval is obtained before the closing of
such subsequent transaction.

5.0 Securities Laws Disclosure; Publicity. By 9:00 a.m., New York City
time, on the Trading Day immediately following the execution of this Agreement, the Company shall
issue a press release (the “Press Release”) reasonably acceptable to the Placement Agent disclosing
all material terms of the transactions contemplated hereby. On or before 9:00 a.m., New York City
time, on the fourth Trading Day following the execution of this Agreement (or such earlier time as
required by law), the Company will file a Current Report on Form 8-K with the Commission describing
the terms of the Transaction Documents (and including as exhibits to such Current Report on Form
8-K the material Transaction Documents (including, without limitation, this Agreement and the
Registration Rights Agreement)). Notwithstanding the foregoing, the Company shall not publicly
disclose the name of any Purchaser or an Affiliate of any Purchaser, or include the name of any
Purchaser or an Affiliate of any Purchaser in any press release or filing with the Commission
(other than the Registration Statement) or any regulatory agency or Trading Market, without the
prior written consent of such Purchaser, except (i) as required by federal securities law in
connection with (A) any registration statement contemplated by the Registration Rights Agreement
and (B) the filing of final Transaction Documents (including signature pages thereto) with the
Commission and (ii) to the extent such disclosure is required by law, request of the Staff of the
Commission or Trading Market regulations, in which case the Company shall provide the Purchasers
with prior written notice of such disclosure permitted under this subclause (ii). Each Purchaser,
severally and not jointly with the other Purchasers, covenants that until such time as the
transactions contemplated by this Agreement are publicly disclosed by the Company as described in
this Section 4.5, such Purchaser will maintain the confidentiality of all disclosures made to it in
connection with this transaction (including the existence and terms of this transaction).

6.0 Non-Public Information. Except with respect to the material terms and
conditions of the transactions contemplated by the Transaction Documents, the Company shall not,
and shall cause each Subsidiary and each of their respective officers, directors, employees and
agents, not to, provide any Purchaser with any material, non-public information regarding the
Company or any of its Subsidiaries from and after the filing of the Press Release without the
express written consent of such Purchaser, unless prior thereto such Purchaser shall have executed
a written agreement regarding the confidentiality and use of such information.

7.0 Indemnification.

( ) Indemnification of Purchasers. In addition to the indemnity provided in
the Registration Rights Agreement, the Company will indemnify and hold each Purchaser and its
directors, officers, shareholders, members, partners, employees and agents (and any other Persons
with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such
title or any other title), each Person who controls such Purchaser (within the meaning of Section
15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers,
shareholders, agents, members, partners or employees (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other
title) of such controlling person (each, a “Purchaser Party”) harmless from any and all losses,
liabilities, obligations, claims, contingencies, damages, costs and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation that any such Purchaser Party may suffer or incur as a result of or relating to third
party claims against such Purchaser relating to any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other
Transaction Documents.  The Company will not be liable to any Purchaser Party under this Agreement
to the extent, but only to the extent that a loss, claim, damage or liability is attributable to
any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements
made by such Purchaser Party in this Agreement or in the other Transaction Documents or any
agreements or understandings such Purchaser may have with any shareholder or any violations by the
Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes
fraud, gross negligence, willful misconduct or malfeasance.

( ) Conduct of Indemnification Proceedings. Promptly after receipt by any
Person (the “Indemnified Person”) of notice of any demand, claim or circumstances which would or
might give rise to a claim or the commencement of any action, proceeding or investigation in
respect of which indemnity may be sought pursuant to Section 4.7(a), such Indemnified Person shall
promptly notify the Company in writing and the Company shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to such Indemnified Person, and shall assume the
payment of all fees and expenses; provided, however, that the failure of any Indemnified Person so
to notify the Company shall not relieve the Company of its obligations hereunder except to the
extent that the Company is actually and materially prejudiced by such failure to notify. In any
such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (i)
the Company and the Indemnified Person shall have mutually agreed to the retention of such counsel;
(ii) the Company shall have failed promptly to assume the defense of such proceeding and to employ
counsel reasonably satisfactory to such Indemnified Person in such proceeding; or (iii) in the
reasonable judgment of counsel to such Indemnified Person, representation of both parties by the
same counsel would be inappropriate due to actual or potential differing interests between them.
The Company shall not be liable for any settlement of any proceeding effected without its written
consent, which consent shall not be unreasonably withheld, delayed or conditioned. Without the
prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld,
delayed or conditioned, the Company shall not effect any settlement of any pending or threatened
proceeding in respect of which any Indemnified Person is or could have been a party and indemnity
could have been sought hereunder by such Indemnified Party, unless such settlement includes an
unconditional release of such Indemnified Person from all liability arising out of such proceeding.

8.0 Listing of Securities. Prior to the execution of this Agreement or
promptly following the date hereof, the Company shall have taken or shall take all necessary action
to cause the Shares to be listed upon the Principal Trading Market, if any, upon which shares of
Common Stock are then listed (subject to official notice of issuance) and shall maintain, so long
as any other shares of Common Stock shall be so listed, such listing. Further, if the Company
applies to have its Common Stock or other securities listed on any other Trading Market, it shall
include in such application the Shares and will take such other action as is necessary to cause the
Shares to be listed on such other Trading Market as promptly as practicable.

9.0 Use of Proceeds. The Company intends to use the net proceeds from the
sale of the Shares hereunder for working capital and general corporate purposes and not to redeem
any Common Stock or Common Stock Equivalents or to settle any outstanding Action.

10.0 Short Sales After The Date Hereof. Such Purchaser shall not, and shall
cause its Trading Affiliates not to, engage, directly or indirectly, in any Short Sales involving
the Company’s securities during the period from the date hereof until the earlier of such time as
(i) the transactions contemplated by this Agreement are first publicly announced as described in
Section 4.5 or (ii) this Agreement is terminated in full pursuant to Section 6.18. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby
separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio
managers have no direct knowledge of the investment decisions made by the portfolio managers
managing other portions of such Purchaser’s assets, the representation set forth above shall apply
only with respect to the portion of assets managed by the portfolio manager that have knowledge
about the financing transaction contemplated by this Agreement. Each Purchaser understands and
acknowledges, severally and not jointly with any other Purchaser, that the Commission currently
takes the position that covering a short position established prior to effectiveness of a resale
registration statement with shares included in such registration statement would be a violation of
Section 5 of the Securities Act, as set forth in Item 65, Section 5 under Section A, of the Manual
of Publicly Available Telephone Interpretations, dated July 1997, compiled by the Office of Chief
Counsel, Division of Corporation Finance.

ARTICLE V.

CONDITIONS PRECEDENT TO CLOSING

1.0 Conditions Precedent to the Obligations of the Purchasers to Purchase
Shares. The obligation of each Purchaser to acquire Shares at the Closing is subject to the
fulfillment to such Purchaser’s satisfaction, on or prior to the Closing Date, of each of the
following conditions, any of which may be waived by such Purchaser (as to itself only):

( ) Representations and Warranties. The representations and warranties of
the Company contained herein shall be true and correct in all material respects (except for those
representations and warranties which are qualified as to materiality, in which case such
representations and warranties shall be true and correct in all respects) as of the date when made
and as of the Closing Date, as though made on and as of such date, except for such representations
and warranties that speak as of a specific date.

( ) Performance. The Company shall have performed, satisfied and complied
in all material respects with all covenants, agreements and conditions required by the Transaction
Documents to be performed, satisfied or complied with by it at or prior to the Closing.

( ) No Injunction. No statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction that prohibits the consummation of any of the
transactions contemplated by the Transaction Documents.

( ) Consents. The Company shall have obtained in a timely fashion any and
all consents, permits, approvals, registrations and waivers necessary or appropriate for
consummation of the purchase and sale of the Shares at the Closing (including all Required
Approvals), all of which shall be and remain so long as necessary in full force and effect.

( ) Adverse Changes. Since the date of execution of this Agreement, no
event or series of events shall have occurred that has had or could reasonably be expected to have
a Material Adverse Effect.

( ) No Suspensions of Trading in Common Stock; Listing. The Common Stock
(i) shall be designated for quotation or listed on the Principal Trading Market and (ii) shall not
have been suspended, as of the Closing Date, by the Commission or the Principal Trading Market from
trading on the Principal Trading Market nor shall suspension by the Commission or the Principal
Trading Market have been threatened, as of the Closing Date, either (A) in writing by the
Commission or the Principal Trading Market or (B) by falling below the minimum listing maintenance
requirements of the Principal Trading Market.

( ) Company Deliverables. The Company shall have delivered the Company
Deliverables in accordance with Section 2.2(a).

( ) Compliance Certificate. The Company shall have delivered to each
Purchaser a certificate, dated as of the Closing Date and signed by its Chief Executive Officer or
its Chief Financial Officer, dated as of the Closing Date, certifying to the fulfillment of the
conditions specified in Sections 5.1(a) and (b) in the form attached hereto as Exhibit F.

( ) Termination. This Agreement shall not have been terminated as to such
Purchaser in accordance with Section 6.18 herein.

2.0 Conditions Precedent to the Obligations of the Company to sell Shares.
The Company’s obligation to sell and issue the Shares at the Closing is subject to the fulfillment
to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any
of which may be waived by the Company:

( ) Representations and Warranties. The representations and warranties made
by the Purchasers in Section 3.2 hereof shall be true and correct in all material respects as of
the date when made, and as of the Closing Date as though made on and as of such date, except for
representations and warranties that speak as of a specific date.

( ) Performance. The Purchasers shall have performed, satisfied and
complied in all material respects with all covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the Purchasers at or prior to
the Closing Date.

( ) No Injunction. No statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction that prohibits the consummation of any of the
transactions contemplated by the Transaction Documents.

( ) Consents. The Company shall have obtained in a timely fashion any and
all consents, permits, approvals, registrations and waivers necessary or appropriate for
consummation of the purchase and sale of the Shares, all of which shall be and remain so long as
necessary in full force and effect.

( ) Purchasers Deliverables. Each Purchaser shall have delivered its
Purchaser Deliverables in accordance with Section 2.2(b).

( ) Termination. This Agreement shall not have been terminated as to such
Purchaser in accordance with Section 6.18 herein.

ARTICLE VI.

MISCELLANEOUS

1.0 Fees and Expenses. Except as otherwise expressly set forth in the
Company’s engagement letter with the Placement Agent, the Company and the Purchasers shall each pay
the fees and expenses of their respective advisers, counsel, accountants and other experts, if any,
and all other expenses incurred by such party in connection with the negotiation, preparation,
execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent
fees, stamp taxes and other taxes and duties levied in connection with the sale and issuance of the
Shares to the Purchasers.

2.0 Entire Agreement. The Transaction Documents, together with the Exhibits
and Schedules thereto, contain the entire understanding of the parties with respect to the subject
matter hereof and supersede all prior agreements, understandings, discussions and representations,
oral or written, with respect to such matters, which the parties acknowledge have been merged into
such documents, exhibits and schedules. At or after the Closing, and without further
consideration, the Company and the Purchasers will execute and deliver to the other such further
documents as may be reasonably requested in order to give practical effect to the intention of the
parties under the Transaction Documents.

3.0 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice or communication is
delivered via facsimile (provided the sender receives a machine-generated confirmation of
successful transmission) at the facsimile number specified in this Section or if such notice or
communication is delivered via e-mail to the e-mail address specified in this Section, in each case
prior to 5:00 p.m., New York City time, on a Trading Day, (b) the next Trading Day after the date
of transmission, if such notice or communication is delivered via facsimile at the facsimile number
specified in this Section or by e-mail to the e-mail address specified in this Section on a day
that is not a Trading Day or later than 5:00 p.m., New York City time, on any Trading Day, (c) the
Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier
service with next day delivery specified, or (d) upon actual receipt by the party to whom such
notice is required to be given. The address for such notices and communications shall be as
follows:

	 	 	 
	If to the Company:

	 	Metalico, Inc.

186 North Avenue East

Cranford, New Jersey 07016

Telephone No.: (908) 497-9610

Facsimile No.: (908) 497-1097

Attention: Arnold S. Graber

Email: ASGraber@metalico.com
	With a copy to:

	 	Lowenstein Sandler PC

65 Livingston Avenue

Roseland, New Jersey 07068

Telephone No.: (973) 597-2476

Facsimile No.: (973) 597-2477

Attention: Steven M. Skolnick, Esq.

Email: sskolnick@lowenstein.com

	 	 	 	If to a Purchaser: To the address set forth under such Purchaser’s name on the
signature page hereof;

or such other address as may be designated in writing hereafter, in the same manner, by such
Person.

4.0 Amendments; Waivers; No Additional Consideration. No provision of this
Agreement may be waived or amended except in a written instrument signed, in the case of an
amendment, by the Company and each of the Purchasers holding or having the right to acquire a
majority of the Shares on a fully-diluted basis at the time of such amendment or, in the case of a
waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any
default with respect to any provision, condition or requirement of this Agreement shall be deemed
to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or omission of either party
to exercise any right hereunder in any manner impair the exercise of any such right. No
consideration shall be offered or paid to any Purchaser to amend or consent to a waiver or
modification of any provision of any Transaction Document unless the same consideration is also
offered to all Purchasers who then hold Shares.

5.0 Construction. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect any of the
provisions hereof. The language used in this Agreement will be deemed to be the language chosen by
the parties to express their mutual intent, and no rules of strict construction will be applied
against any party. This Agreement shall be construed as if drafted jointly by the parties, and no
presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement or any of the Transaction Documents.

6.0 Successors and Assigns. The provisions of this Agreement shall inure to
the benefit of and be binding upon the parties and their successors and permitted assigns. This
Agreement, or any rights or obligations hereunder, may not be assigned by the Company without the
prior written consent of the Purchasers. Any Purchaser may assign its rights hereunder in whole or
in part to any Person to whom such Purchaser assigns or transfers any Shares in compliance with the
Transaction Documents and applicable law, provided such transferee shall agree in writing to be
bound, with respect to the transferred Shares, by the terms and conditions of this Agreement that
apply to the “Purchasers”.

7.0 No Third-Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective successors and permitted assigns and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person, except (i) each
Purchaser Party is an intended third party beneficiary of Section 4.7 and (ii) the Escrow Agent is
an intended third party beneficiary of Section 2.1(d), and each Purchaser Party or the Escrow
Agent, as the case may be, may enforce the provisions of such Section directly against the parties
with obligations thereunder.

8.0 Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to the principles of
conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and any other
Transaction Documents (whether brought against a party hereto or its respective Affiliates,
employees or agents) shall be commenced exclusively in the New York Courts. Each party hereto
hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the
adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the enforcement of any of the
Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding,
any claim that it is not personally subject to the jurisdiction of any such New York Court, or that
such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby
irrevocably waives personal service of process and consents to process being served in any such
Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

9.0 Survival. The representations, warranties, agreements and covenants
contained herein shall survive for a period of three (3) years following the Closing.

10.0 Execution. This Agreement may be executed in two or more counterparts,
all of which when taken together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other party, it
being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission, or by e-mail delivery of a “.pdf” format data
file, such signature shall create a valid and binding obligation of the party executing (or on
whose behalf such signature is executed) with the same force and effect as if such facsimile
signature page were an original thereof.

11.0 Severability. If any provision of this Agreement is held to be invalid
or unenforceable in any respect, the validity and enforceability of the remaining terms and
provisions of this Agreement shall not in any way be affected or impaired thereby and the parties
will attempt to agree upon a valid and enforceable provision that is a reasonable substitute
therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

12.0 Rescission and Withdrawal Right. Notwithstanding anything to the
contrary contained in (and without limiting any similar provisions of) the Transaction Documents,
whenever any Purchaser exercises a right, election, demand or option under a Transaction Document
and the Company does not timely perform its related obligations within the periods therein
provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time
upon written notice to the Company, any relevant notice, demand or election in whole or in part
without prejudice to its future actions and rights

13.0 Replacement of Shares. If any certificate or instrument evidencing any
Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in
exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company and the Transfer Agent of such loss, theft or destruction and the
execution by the holder thereof of a customary lost certificate affidavit of that fact and an
agreement to indemnify and hold harmless the Company and the Transfer Agent for any losses in
connection therewith or, if required by the Transfer Agent, a bond in such form and amount as is
reasonably required by the Transfer Agent. The applicants for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs associated with the
issuance of such replacement Shares. If a replacement certificate or instrument evidencing any
Shares is requested due to a mutilation thereof, the Company may require delivery of such mutilated
certificate or instrument as a condition precedent to any issuance of a replacement.

14.0 Remedies. In addition to being entitled to exercise all rights
provided herein or granted by law, including recovery of damages, each of the Purchasers and the
Company will be entitled to specific performance under the Transaction Documents. The parties
agree that monetary damages may not be adequate compensation for any loss incurred by reason of any
breach of obligations described in the foregoing sentence and hereby agree to waive in any action
for specific performance of any such obligation (other than in connection with any action for a
temporary restraining order) the defense that a remedy at law would be adequate.

15.0 Payment Set Aside. To the extent that the Company makes a payment or
payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises
its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise
or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set
aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to
the Company, a trustee, receiver or any other person under any law (including, without limitation,
any bankruptcy law, state or federal law, common law or equitable cause of action), then to the
extent of any such restoration the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had not been made or
such enforcement or setoff had not occurred.

16.0 Adjustments in Share Numbers and Prices. In the event of any stock
split, subdivision, dividend or distribution payable in shares of Common Stock (or other securities
or rights convertible into, or entitling the holder thereof to receive directly or indirectly
shares of Common Stock), combination or other similar recapitalization or event occurring after the
date hereof, each reference in any Transaction Document to a number of shares or a price per share
shall be deemed to be amended to appropriately account for such event.

17.0 Independent Nature of Purchasers’ Obligations and Rights. The
obligations of each Purchaser under any Transaction Document are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the
performance of the obligations of any other Purchaser under any Transaction Document. The decision
of each Purchaser to purchase Shares pursuant to the Transaction Documents has been made by such
Purchaser independently of any other Purchaser and independently of any information, materials,
statements or opinions as to the business, affairs, operations, assets, properties, liabilities,
results of operations, condition (financial or otherwise) or prospects of the Company or any
Subsidiary which may have been made or given by any other Purchaser or by any agent or employee of
any other Purchaser, and no Purchaser and any of its agents or employees shall have any liability
to any other Purchaser (or any other Person) relating to or arising from any such information,
materials, statement or opinions. Nothing contained herein or in any Transaction Document, and no
action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Purchasers are in any way acting in concert or as a group with respect to such obligations
or the transactions contemplated by the Transaction Documents. Each Purchaser acknowledges that no
other Purchaser has acted as agent for such Purchaser in connection with making its investment
hereunder and that no Purchaser will be acting as agent of such Purchaser in connection with
monitoring its investment in the Shares or enforcing its rights under the Transaction Documents.
Each Purchaser shall be entitled to independently protect and enforce its rights, including without
limitation the rights arising out of this Agreement or out of the other Transaction Documents, and
it shall not be necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose. The Company acknowledges that each of the Purchasers has been
provided with the same Transaction Documents for the purpose of closing a transaction with multiple
Purchasers and not because it was required or requested to do so by any Purchaser. The Company’s
obligations to each Purchaser under this Agreement are identical to its obligations to each other
Purchaser other than such differences resulting solely from the number of Shares purchased by such
Purchaser, but regardless of whether such obligations are memorialized herein or in another
agreement between the Company and a Purchaser.

18.0 Termination. This Agreement may be terminated and the sale and purchase
of the Shares abandoned at any time prior to the Closing by either the Company or any Purchaser
(with respect to itself only) upon written notice to the other, if the Closing has not been
consummated on or prior to 5:00 p.m., New York City time, on the Outside Date; provided, however,
that the right to terminate this Agreement under this Section 6.18 shall not be available to any
Person whose failure to comply with its obligations under this Agreement has been the cause of or
resulted in the failure of the Closing to occur on or before such time. Nothing in this Section
6.18 shall be deemed to release any party from any liability for any breach by such party of the
terms and provisions of this Agreement or the other Transaction Documents or to impair the right of
any party to compel specific performance by any other party of its obligations under this Agreement
or the other Transaction Documents. In the event of a termination pursuant to this Section, the
Company shall promptly notify all non-terminating Purchasers and the Escrow Agent. Upon a
termination in accordance with this Section, the Company and the terminating Purchaser(s) shall not
have any further obligation or liability (including arising from such termination) to the other,
and no Purchaser will have any liability to any other Purchaser under the Transaction Documents as
a result therefrom.

1

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be
duly executed by their respective authorized signatories as of the date first indicated above.

METALICO, INC.

	 	 	 	By:     

Name:

Title:

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURE PAGES FOR PURCHASERS FOLLOW]

2

NAME OF PURCHASER:      

By:

Name:

Title:

Aggregate Purchase Price (Subscription Amount):
$     

Number of Shares to be Acquired:      

Tax ID No.:      

Address for Notice:

     

     

     

Telephone No.:      

Facsimile No.:      

Email Address:      

Attention:      

Delivery Instructions:

(if different than above)

c/o      

Street:      

City/State/Zip:      

Attention:      

Telephone No.:      

3

EXHIBITS:

	 	 	 
	A:

B-1:

B-2:

C:

D:

E:

F:

G:

	 	Form of Registration Rights Agreement

Accredited Investor Questionnaire

Stock Certificate Questionnaire

Form of Opinion of Counsel

Irrevocable Transfer Agent Instructions

Form of Secretary’s Certificate

Form of Officer’s Certificate

Wire Instructions

SCHEDULES:

3.1(a) Subsidiaries

3.1(c) Authorization; Enforcement; Validity

3.1(k) Material Changes

3.1(l) Environmental Matters

3.1(m) Litigation

3.1(q) Title to Assets

3.1(t) Transactions with Affiliates and Employees

3.1(y) Registration Rights

4

EXHIBIT A

Form of Registration Rights Agreement

5

Instruction Sheet

(to be read in conjunction with the entire Securities Purchase Agreement and Registration Rights

Agreement)

A. Complete the following items in the Securities Purchase Agreement and/or Registration Rights
Agreement:

	 	1.	 	Provide the information regarding the Purchaser requested on the signature
page. The Securities Purchase Agreement must be executed by an individual authorized to
bind

the Purchaser.

	 	2.	 	Exhibit B-1 – Accredited Investor Questionnaire:

For Non-Canadian Purchasers, provide the information requested by the Accredited
Investor Questionnaire in Parts A and B.

For Canadian Purchasers, provide the information requested by the Accredited Investor
Questionnaire in Parts A, B and C.

	 	3.	 	Exhibit B-2 Stock Certificate Questionnaire:

Provide the information requested by the Stock Certificate Questionnaire

	 	4.	 	Annex B to the Registration Rights Agreement — Selling Securityholder
Notice and Questionnaire

Provide the information requested by the Selling Securityholder Notice and
Questionnaire

	 	5.	 	Return the signed Securities Purchase Agreement and Registration Rights
Agreement to:

Jennifer E. Pardi

Canaccord Adams Inc.

99 High Street, 12th Floor

Boston, MA 02110

Tel: (617) 788-1554

Fax: (617) 371-3796

Email: jennifer.pardi@canaccordadams.com

	B.	 	Instructions regarding the transfer of funds for the purchase of Shares is set forth on
Exhibit G to the Securities Purchase Agreement.

6

EXHIBIT B-1

ACCREDITED INVESTOR QUESTIONNAIRE

(ALL INFORMATION WILL BE TREATED CONFIDENTIALLY)

To: Metalico, Inc.

This Investor Questionnaire (“Questionnaire”) must be completed by each potential investor
in connection with the offer and sale of the shares of common stock, par value $0.001 per share
(collectively, the “Shares”), of Metalico, Inc., a Delaware corporation (the
“Corporation”). The Shares are being offered and sold by the Corporation without
registration under the Securities Act of 1933, as amended (the “Act”), and the securities
laws of certain states, in reliance on the exemptions contained in Section 4(2) of the Act and on
Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state
laws. The Corporation must determine that a potential investor meets certain suitability
requirements before offering or selling Shares to such investor. The purpose of this Questionnaire
is to assure the Corporation that each investor will meet the applicable suitability requirements.
The information supplied by you will be used in determining whether you meet such criteria, and
reliance upon the private offering exemptions from registration is based in part on the information
herein supplied.

This Questionnaire does not constitute an offer to sell or a solicitation of an offer to buy any
security. Your answers will be kept strictly confidential. However, by signing this
Questionnaire, you will be authorizing the Corporation to provide a completed copy of this
Questionnaire to such parties as the Corporation deems appropriate in order to ensure that the
offer and sale of the Shares will not result in a violation of the Act or the securities laws of
any state and that you otherwise satisfy the suitability standards applicable to purchasers of the
Shares. All potential investors must answer all applicable questions and complete, date and sign
this Questionnaire. Please print or type your responses and attach additional sheets of paper if
necessary to complete your answers to any item.

	 	 	 
	For Non-Canadian Purchasers, please provide the information requested by this Questionnaire in Parts A and B.
	For Canadian Purchasers, please provide the information requested by this Questionnaire in Parts A, B and C.
	PART A.BACKGROUND INFORMATION
	 	

	 
	Name of Beneficial Owner of the Shares:
	 	

	Business Address:
	 	

	(Number and Street)
	 	

	(City)(State)
	 	(Zip Code)
	Telephone Number: (     )
	 	

	If a corporation, partnership, limited liability company, trust or other entity:
	Type of entity:
	 	

	State of formation:     
	 	Approximate Date of formation:      

Set forth in the space provided below the (i) state(s), if any, in the United States in which you
maintained your principal office during the past two years and the dates during which you
maintained your office in each state, and (ii) state(s), if any, in which you pay income taxes:

     

     

     

	 	 	Were you formed for the purpose of investing in the securities being offered?

	 	 	 	 	 
	Yes      
	 	No      
	 	

	If an individual:
	 	

	 	

	 
	 	

	 	

	Residence Address:
	 	

	 	

	
 	 	(Number and Street)
	 	

	(City)
	 	(State)
	 	(Zip Code)
	Telephone Number: (     )
	 	

	 	

	Age:      
	 	Citizenship:      
	 	Where registered to vote:      

Set forth in the space provided below the state(s), if any, in the United States in which you
maintained your residence during the past two years and the dates during which you resided in each
state:

	 	 	Are you a director or executive officer of the Corporation?

Yes      No      

Social Security or Taxpayer Identification No.

PART B. UNITED STATES ACCREDITED INVESTOR QUESTIONNAIRE

In order for the Company to offer and sell the Shares in conformance with state and federal
securities laws, the following information must be obtained regarding your investor status. Please
initial each category applicable to you as a Purchaser of Shares of the Company.

	 	 	 	     (1) A bank as defined in Section 3(a)(2) of the Securities Act,
or any savings and loan association or other institution as defined in Section
3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary
capacity;

	 	 	 	     (2) A broker or dealer registered pursuant to Section 15 of the
Securities Exchange Act of 1934;

	 	 	 	     (3) An insurance company as defined in Section 2(13) of the
Securities Act;

	 	 	 	     (4) An investment company registered under the Investment Company
Act of 1940 or a business development company as defined in Section 2(a)(48) of
that Act;

	 	 	 	     (5) A Small Business Investment Company licensed by the U.S.
Small Business Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958;

	 	 	 	     (6) A plan established and maintained by a state, its political
subdivisions, or any agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees, if such plan has total assets in
excess of $5,000,000;

	 	 	 	     (7) An employee benefit plan within the meaning of the Employee
Retirement Income Security Act of 1974, if the investment decision is made by a
plan fiduciary, as defined in Section 3(21) of such act, which is either a bank,
savings and loan association, insurance company, or registered investment
adviser, or if the employee benefit plan has total assets in excess of
$5,000,000 or, if a self-directed plan, with investment decisions made solely by
persons that are accredited investors;

	 	 	 	     (8) A private business development company as defined in Section
202(a)(22) of the Investment Advisers Act of 1940;

	 	 	 	     (9) An organization described in Section 501(c)(3) of the
Internal Revenue Code, a corporation, Massachusetts or similar business trust,
or partnership, not formed for the specific purpose of acquiring the Shares,
with total assets in excess of $5,000,000;

	 	 	 	     (10) A trust, with total assets in excess of $5,000,000, not
formed for the specific purpose of acquiring the Shares, whose purchase is
directed by a sophisticated person who has such knowledge and experience in
financial and business matters that such person is capable of evaluating the
merits and risks of investing in the Company;

	 	 	 	     (11) A natural person whose individual net worth, or joint net worth with that
person’s spouse, at the time of his purchase exceeds $1,000,000;

	 	 	 	     (12) A natural person who had an individual income in excess of $200,000 in each
of the two most recent years, or joint income with that person’s spouse in
excess of $300,000, in each of those years, and has a reasonable expectation of
reaching the same income level in the current year;

	 	 	 	     (13) An executive officer or director of the Company;

	 	 	 	     (14) An entity in which all of the equity owners qualify under any of the above
subparagraphs.

FOR EXECUTION BY AN INDIVIDUAL:

By

Date

Print Name:

FOR EXECUTION BY AN ENTITY:

Entity Name:

By

Date

Print Name:

Title:

	 	 	ADDITIONAL SIGNATURES (if required by partnership, corporation or trust document):

Entity Name:

By

Date

Print Name:

Title:

Entity Name:

	 	 	 	 	 
	 
	 	By
	 
	 	 	 	 
	Date

	 	Print Name:
	 
	 	 	 	 
	 
	 	Title:  _____________________
	PART C.
	 	CANADIAN ACCREDITED INVESTOR QUESTIONNAIRE

This Part C should only be completed by Canadian Purchasers.

In order for the Company to offer and sell the Shares in conformance with state and federal
securities laws, the following information must be obtained regarding your investor status. Please
initial each category applicable to you as a Purchaser of Shares of the Company.

	 	 	 	     (1) A Canadian financial institution, or a Schedule III bank;

	 	 	 	     (2) The Business Development Bank of Canada incorporated under
the Business Development Bank of Canada Act (Canada);

	 	 	 	     (3) A subsidiary of any person referred to in paragraphs (1) or
(2), if the person owns all of the voting securities of the subsidiary, except
the voting securities required by law to be owned by directors of that
subsidiary;

	 	 	 	     (4) A person registered under the securities legislation of a
jurisdiction of Canada as an adviser or dealer, other than a person registered
solely as a limited market dealer under one or both of the Securities Act
(Ontario) or the Securities Act (Newfoundland and Labrador);

	 	 	 	     (5) An individual registered or formerly registered under the
securities legislation of a jurisdiction of Canada as a representative of a
person referred to in paragraph (4);

	 	 	 	     (6) The Government of Canada or a jurisdiction of Canada, or any
crown corporation, agency or wholly owned entity of the Government of Canada or
a jurisdiction of Canada;

	 	 	 	     (7) A municipality, public board or commission in Canada and a
metropolitan community, school board, the Comité de gestion de la taxe scolaire
de l’île de Montréal or an intermunicipal management board in Québec;

	 	 	 	     (8) Any national, federal, state, provincial, territorial or
municipal government of or in any foreign jurisdiction, or any agency of that
government;

	 	 	 	     (9) A pension fund that is regulated by either the Office of the
Superintendent of Financial Institutions (Canada) or a pension commission or
similar regulatory authority of a jurisdiction of Canada;

	 	 	 	     (10) An individual who, either alone or with a spouse, beneficially owns, directly
or indirectly, financial assets having an aggregate realizable value that before
taxes, but net of any related liabilities, exceeds $1,000,000;

	 	 	 	     (11) An individual whose net income before taxes exceeded $200 000 in each of the 2
most recent calendar years or whose net income before taxes combined with that
of a spouse exceeded $300 000 in each of the 2 most recent calendar years and
who, in either case, reasonably expects to exceed that net income level in the
current calendar year,

	 	 	 	     (12) An individual who, either alone or with a spouse, has net assets of at least
$5,000,000;

	 	 	 	     (13) A person, other than an individual or investment fund, that has net assets of
at least $5,000,000 as shown on its most recently prepared financial statements;

	 	 	 	     (14) An investment fund that distributes or has distributed its securities only to

(i) a person that is or was an accredited investor at the time of the
distribution,

(ii) a person that acquires or acquired securities in the circumstances
referred to in sections 2.10 [Minimum amount investment], and 2.19
[Additional investment in investment funds], or

(iii) a person described in paragraph (i) or (ii) that acquires or acquired
securities under section 2.18 [Investment fund reinvestment];

	 	 	 	     (15) An investment fund that distributes or has distributed securities under a
prospectus in a jurisdiction of Canada for which the regulator or, in Québec,
the securities regulatory authority, has issued a receipt;

	 	 	 	     (16) A trust company or trust corporation registered or authorized to carry on
business under the Trust and Loan Companies Act (Canada) or under comparable
legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on
behalf of a fully managed account managed by the trust company or trust
corporation, as the case may be;

	 	 	 	     (17) A person acting on behalf of a fully managed account managed by that person,
if that person

(i) is registered or authorized to carry on business as an adviser or the
equivalent under the securities legislation of a jurisdiction of Canada or a
foreign jurisdiction, and

(ii) in Ontario, is purchasing a security that is not a security of an
investment fund;

	 	 	 	     (18) A registered charity under the Income Tax Act (Canada) that, in regard to the
trade, has obtained advice from an eligibility adviser or an adviser registered
under the securities legislation of the jurisdiction of the registered charity
to give advice on the securities being traded,

	 	 	 	     (19) An entity organized in a foreign jurisdiction that is analogous to any of the
entities referred to in paragraphs (1) to (4) of Part B above or paragraph (9)
of Part B above in form and function;

	 	 	 	     (20) A person in respect of which all of the owners of interests, direct, indirect
or beneficial, except the voting securities required by law to be owned by
directors, are persons that are accredited investors;

	 	 	 	     (21) An investment fund that is advised by a person registered as an adviser or a
person that is exempt from registration as an adviser; or

	 	 	 	     (22) A person that is recognized or designated by the securities regulatory
authority or, except in Ontario and Québec, the regulator as

(i) an accredited investor, or

(ii) an exempt purchaser in Alberta or British Columbia after this Instrument
comes into force.

FOR EXECUTION BY AN INDIVIDUAL:

By

Date

Print Name:

FOR EXECUTION BY AN ENTITY:

Entity Name:

By

Date

Print Name:

Title:

	 	 	ADDITIONAL SIGNATURES (if required by partnership, corporation or trust document):

Entity Name:

By

Date

Print Name:

Title:

Entity Name:

	 	 	 	 	 	 	 	 	 
	 
	 	By	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date

	 	Print Name:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Title:	 	 	—	 

7

EXHIBIT B-2

Stock Certificate Questionnaire

Pursuant to Section 2.2(b) of the Agreement, please provide us with the following information:

	 	 	 
	1.

	 	The exact name that the Shares are to be registered in (this is

the name that will appear on the stock certificate(s)). You may

use a nominee name if appropriate:
	2.

	 	The relationship between the Purchaser of the Shares and the

Registered Holder listed in response to Item 1 above:
	3.

	 	The mailing address, telephone and telecopy number of the

Registered Holder listed in response to Item 1 above:
	4.

	 	The Tax Identification Number (or, if an individual, the Social

Security Number) of the Registered Holder listed in response to

Item 1 above:

8

EXHIBIT C

Form of Opinion of Counsel

	0.	 	The Company is a corporation duly incorporated, validly existing and in good standing under
the laws of the state of its incorporation with the requisite corporate power and authority to
own, lease and operate its properties and assets, and to conduct its business as described in
the SEC Reports, to execute and deliver the Agreement and the Registration Rights Agreement
and to perform its obligations thereunder, including, without limitation, to issue, sell and
deliver the Shares under the Agreement.

	0.	 	When so issued, the Shares will be duly authorized, validly issued, fully paid and
nonassessable, and free of any and all liens and charges and preemptive right or similar
rights contained in the Company’s Certificate of Incorporation or Bylaws or any agreement,
note, lease, publicly filed mortgage deed or other instrument to which the Company is a party
or by which the Company is bound that are filed as exhibits to the SEC Reports.

	0.	 	All corporate action on the part of the Company necessary for the authorization, execution
and delivery of the Agreement and the Registration Rights Agreement by the Company, the
authorization, sale, issuance and delivery of the Shares and the performance by the Company of
its obligations under the Agreement and the Registration Rights Agreement has been taken. The
Agreement and the Registration Rights Agreement have been duly and validly executed and
delivered by the Company and each of them constitutes a valid and binding obligation of the
Company, enforceable against the Company in accordance with their respective terms.

	0.	 	The execution and delivery by the Company of the Agreement and the Registration Rights
Agreement, the performance by the Company of its obligations under the Agreement and the
Registration Rights Agreement, and the issuance of the Shares, do not and will not, as the
case may be, violate, conflict with or constitute a default (or an event which, with the
giving of notice or lapse of time or both, constitutes or would constitute a default) under,
give rise to any right of termination, cancellation or acceleration under (i) the Certificate
of Incorporation or Bylaws, (ii) any indenture, mortgage, deed of trust, bank loan or credit
agreement or other evidence of indebtedness, or any license, lease, contract or other
agreement or instrument to which the Company is a party or by which any of its properties may
be bound or affected, and in each case which is filed as an exhibit to the SEC Reports, (iii)
any provision of any applicable federal or state law, rule or regulation known to such counsel
to be customarily applicable to transactions of this nature, or (iv) any decree, judgment or
order known to such counsel to be applicable to the Company or its properties.

	0.	 	Except as identified in the Agreement, to our knowledge, the Company is not a party to any
legal or governmental action or proceeding that (a) challenges the validity or enforceability,
or seeks to enjoin the performance, of the Agreement or the Registration Rights Agreement or
(b) if resolved in a manner unfavorable to the Company could reasonably be expected to have a
Material Adverse Effect.

	0.	 	No consent, approval or authorization of designation, declaration or filing with any federal
government authority any self-regulatory organization or approval of the stockholders of the
Company is required in connection with the valid execution and delivery of the Agreement and
the Registration Rights Agreement, the offer, sale or issuance of the Shares, or the
consummation by the Company of any other transaction contemplated by the Agreement.

	0.	 	Subject to the accuracy of the Purchasers’ representations in Section 3.2 of the Agreement,
the offer, sale and issuance of the Shares in conformity with the terms of the Agreement
constitute transactions exempt from the registration requirements of Section 5 of the
Securities Act of 1933, as amended.

	0.	 	The Company is not, and, immediately after giving effect to the offering and sale of the
Shares, will not be, an “investment company” or an entity “controlled” by an “investment
company,” as such terms are defined in the Investment Company Act of 1940, as amended.

9

EXHIBIT D

Form of Irrevocable Transfer Agent Instructions

As of June ___, 2007

Corporate Stock Transfer, Inc.

3200 Cherry Creek Drive South

Suite 430

Denver, Colorado 80209

Ladies and Gentlemen:

      Reference is made to that certain Securities Purchase Agreement, dated as of June      ,
2007 (the “Agreement”), by and among Metalico, Inc., a Delaware corporation (the “Company”), and
the purchasers named on the signature pages thereto (collectively, the “Holders”), pursuant to
which the Company is issuing to the Holders shares (the “Shares”) of Common Stock of the Company,
par value $0.001 per share (the “Common Stock”).

      This letter shall serve as our irrevocable authorization and direction to you (provided
that you are the transfer agent of the Company at such time and the conditions set forth in this
letter are satisfied), subject to any stop transfer instructions that we may issue to you from time
to time, if any, to issue shares of Common Stock upon transfer or resale of the Shares.

In connection with the Agreement, and in order to effect the private placement contemplated
thereby, you are hereby authorized and directed to issue the Shares on June      , 2007 to the
Holders listed on Schedule A hereto (the “Initial Issuance”). You are hereby instructed to place
the following restrictive legend on all such Shares:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS
OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT OR (II) UNLESS SOLD
PURSUANT TO RULE 144 UNDER SAID ACT.

You acknowledge and agree that, after the Initial Issuance, so long as you have previously
received (a) written confirmation from the Company that either (1) a registration statement
covering resales of the Shares has been declared effective by the Securities and Exchange
Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”),
or (2) an opinion from the Company’s counsel that the Shares have been sold in conformity with
Rule 144 under the Securities Act (“Rule 144”) or are eligible for sale under Rule 144(k) and
(b) if applicable, a copy of such registration statement, then, unless otherwise required by law,
within three (3) business days of your receipt of a notice of transfer, you shall issue the
certificates representing the Shares registered in the names of such Holders or transferees, as the
case may be, and such certificates shall not bear any legend restricting transfer of the Shares
thereby and should not be subject to any stop-transfer restriction.

      A form of written confirmation from the Company that a registration statement covering
resales of the Shares has been declared effective by the Commission under the Securities Act is
attached hereto as Annex I.

      Please be advised that the Holders are relying upon this letter as an inducement to
enter into the Agreement and, accordingly, each Holder is a third party beneficiary to these
instructions.

      Please execute this letter in the space indicated to acknowledge your agreement to act
in accordance with these instructions.

Very truly yours,

METALICO, INC.

By:      Name:      

Title:      

Acknowledged and Agreed:

CORPORATE STOCK TRANSFER INC.

By:      

Name:      

Title:      

Date: June      , 2007

SCHEDULE A

10

Annex I

FORM OF NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

	 	 	 	 	 
	 

	 	 
	 	 
	Corporate Stock Transfer, Inc.
3200 Cherry Creek Drive South
Suite 430
Denver, Colorado 80209

	 

	 	 
	 	 
	 

	 	 
	 	Re: Metalico, Inc.
	
 
	 	 	 	 

Ladies and Gentlemen:

         Metalico, Inc., a Delaware corporation (the “Company”), is writing with respect to a
Securities Purchase Agreement, dated as of June      , 2007, entered into by and among the Company
and the buyers named therein (collectively, the “Purchasers”) pursuant to which the Company issued
to the Purchasers shares of the Company’s common stock, $0.001 par value per share (the “Common
Stock”). Pursuant to that certain Registration Rights Agreement of even date, the Company agreed
to register the resale of the Common Stock (collectively, the “Registrable Securities”), under the
Securities Act of 1933, as amended (the “Securities Act”). In connection with the Company’s
obligations under the Registration Rights Agreement, on                     , 2007, the
Company filed a Registration Statement on Form S-3 (File No. 333-                    ) (the
“Registration Statement”) with the Securities and Exchange Commission (the “Commission”) relating
to the Registrable Securities which names each of the Purchasers as a selling shareholder
thereunder.

        In connection with the foregoing, we advise you that a member of the Commission’s
staff has advised us by telephone that the Commission has entered an order declaring the
Registration Statement effective under the Securities Act at      [a.m.][p.m.] on      , 2007,
and we have no knowledge, after telephonic inquiry of a member of the staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that purpose are pending
before, or threatened by, the Commission and the Registrable Securities are available for resale
under the Securities Act pursuant to the Registration Statement.

      This letter shall serve as our standing notice to you that the Common Stock may be
freely transferred by the Purchasers pursuant to the Registration Statement. You need not require
further letters from us to effect any future legend-free issuance or reissuance of shares of Common
Stock to the Purchasers or the transferees of the Purchasers, as the case may be, as contemplated
by the Company’s Irrevocable Transfer Agent Instructions dated June      , 2007, provided at the time
of such reissuance, the Company has not otherwise notified you that the Registration Statement is
unavailable for the resale of the Registrable Securities. This letter shall serve as our standing
instructions with regard to this matter.

	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 	 	 	Very truly yours,
	 

	 	 
	 	 
	 	 
	 	 
	 	 	 	 	METALICO, INC.
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	By:
	 	 
	 	 
	
 
	 	 	 	Name:
	 	

	 	

	 

	 	 
	 	Title:
	 	 
	 	

EXHIBIT E

Form of Secretary’s Certificate

The undersigned hereby certifies that he is the duly elected, qualified and acting Secretary of
Metalico, Inc., a Delaware corporation (the “Company”), and that as such he is authorized to
execute and deliver this certificate in the name and on behalf of the Company and in connection
with the Securities Purchase Agreement, dated as of June      , 2007, by and among the Company and
the investors party thereto (the “Securities Purchase Agreement"), and further certifies in his
official capacity, in the name and on behalf of the Company, the items set forth below.
Capitalized terms used but not otherwise defined herein shall have the meaning set forth in the
Securities Purchase Agreement.

	1.	 	Attached hereto as Exhibit A is a true, correct and complete copy of the resolutions
duly adopted by the Board of Directors of the Company at a meeting of the Board of Directors
held on June 18, 2007. Such resolutions have not in any way been amended, modified, revoked
or rescinded, have been in full force and effect since their adoption to and including the
date hereof and are now in full force and effect.

	2.	 	Attached hereto as Exhibit B is a true, correct and complete copy of the Certificate
of Incorporation of the Company, together with any and all amendments thereto currently in
effect, and no action has been taken to further amend, modify or repeal such Certificate of
Incorporation, the same being in full force and effect in the attached form as of the date
hereof.

	3.	 	Attached hereto as Exhibit C is a true, correct and complete copy of the Bylaws of
the Company and any and all amendments thereto currently in effect, and no action has been
taken to further amend, modify or repeal such Bylaws, the same being in full force and effect
in the attached form as of the date hereof.

	4.	 	Each person listed below has been duly elected or appointed to the position(s) indicated
opposite his name and is duly authorized to sign the Securities Purchase Agreement and each of
the Transaction Documents on behalf of the Company, and the signature appearing opposite such
person’s name below is such person’s genuine signature.

	 	 	 	 	 	 	 	 	 
	Name	 	Position	 	Signature
	Carlos E. Agüero
	 	Chief Executive Officer	 	 	—	 

IN WITNESS WHEREOF, the undersigned has hereunto set his hand as of this      day of June, 2007.

Arnold S. Graber

	 	 	 	Secretary

11

I, Carlos E. Agüero, Chief Executive Officer, hereby certify that Arnold S. Graber is the duly
elected, qualified and acting Secretary of the Company and that the signature set forth above is
his true signature.

Carlos E. Agüero

	 	 	 	Chief
Executive Officer

12

EXHIBIT A

Resolutions

13

EXHIBIT B

Certificate of Incorporation

14

EXHIBIT C

Bylaws

15

EXHIBIT F

Form of Officer’s Certificate

The undersigned, the Chief Executive Officer of Metalico, Inc., a Delaware corporation (the
"Company”), pursuant to Section 5.1(h) of the Securities Purchase Agreement, dated as of June      ,
2007, by and among the Company and the investors signatory thereto (the “Securities Purchase
Agreement”), hereby represents, warrants and certifies as follows (capitalized terms used but not
otherwise defined herein shall have the meaning set forth in the Securities Purchase Agreement):

	 	1.	 	The representations and warranties of the Company contained in
the Securities Purchase Agreement are true and correct in all material respects
(except for those representations and warranties which are qualified by
materiality, in which case such representations and warranties are true and
correct in all respects) as of the date when made and as of the date hereof, as
though made on and as of such date, except for such representations and
warranties that speak as of a specific date.

	 	2.	 	The Company has performed, satisfied and complied in all material
respects with all covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by it at or
prior to the date hereof.

IN WITNESS WHEREOF, the undersigned has executed this certificate this      day of June, 2007.

     

Carlos E. Agüero

Chief Executive Officer

16

EXHIBIT G

Wire Instructions

	 	 	 	 	 
	Bank: PNC Bank New Jersey
Caldwell, NJ
ABA No. 031207607
For credit to:
	 	Lowenstein Sandler PC
	 
	 	Special Trust Account III
	Account No.
	 	 	8025720158	 

For International wires please use SWIFT Code: PNCCUS33

17

DISCLOSURE SCHEDULES

TO

SECURITIES PURCHASE AGREEMENT

These Disclosure Schedules to Securities Purchase Agreement (the “Disclosure
Schedules”) are delivered pursuant to Section 3.1 of the Securities Purchase Agreement by and
among Metalico, Inc., a Delaware corporation (the “Company”) and each purchaser listed on
the signature pages thereof (together, the “Purchasers”) dated June      , 2007 (the
“Agreement”). The numbers in the Disclosure Schedules correspond to the Section numbers in
the Agreement; however, any information disclosed herein under any Section number shall be deemed
to be disclosed and incorporated into any other paragraph number under the Agreement where it is
reasonably clear based on the description of the matter contained in such section that such
disclosure relates to that section. Any terms defined in the Agreement shall have the same meaning
when used in these Disclosure Schedules as when used in the Agreement unless the context otherwise
requires. Copies or summaries of agreements, plans, policies and other documents referred to
herein have been made available to the Purchasers.

18

Schedule 3.1(a)

Subsidiaries

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 
	 	 
	Subsidiary	 	 	 	 	 	 	 	State of Incorporation
	 	 	 	 	 	 	 	 	 
	AgriFuel Co.1

	 	 	 	 	 	 	 	 	 	Delaware
	General Smelting and Refining, Inc.2
	 	 	 	 	 	 	 	Tennessee
	 

	 	 	 	 	 	 
	 	 
	 	 
	Gulf Coast Recycling, Inc.

	 	 	 	 	 	 
	 	 
	 	Florida
	 

	 	 	 	 	 	 
	 	 
	 	 
	Metalico Buffalo, Inc.3
	 	 	 	 	 	 	 	New York
	 

	 	 	 	 	 	 
	 	 
	 	 
	Mayco Industries, Inc.

	 	 	 	 	 	 
	 	 
	 	Alabama
	Metalico Akron, Inc.

	 	 	 	 	 	 	 	 	 	Ohio
	Metalico Akron Realty, Inc.

	 	 	 	 	 	 	 	 	 	Ohio
	 

	 	 	 	 	 	 
	 	 
	 	 
	Metalico Alabama Realty, Inc.
	 	 	 	 	 	 	 	Alabama
	 

	 	 	 	 	 	 
	 	 
	 	 
	Metalico Aluminum Recovery, Inc.
	 	 	 	 	 	 	 	New York
	 

	 	 	 	 	 	 
	 	 
	 	 
	Metalico-College Grove, Inc.
	 	 	 	 	 	 	 	Tennessee
	 

	 	 	 	 	 	 
	 	 
	 	 
	Metalico-Granite City, Inc

	 	 	 	 	 	 
	 	 
	 	Illinois
	Metalico Niagara, Inc.4
	 	 	 	 	 	 	 	New York
	Metalico Niles, Inc. 2
	 	 	 	 	 	 	 	Ohio
	Metalico Rochester, Inc.5
	 	 	 	 	 	 	 	New York
	Metalico Syracuse, Inc.

	 	 	 	 	 	 	 	 	 	New York
	 

	 	 	 	 	 	 
	 	 
	 	 
	Metalico Syracuse Realty, Inc.
	 	 	 	 	 	 	 	New York
	Metalico Transfer, Inc.

	 	 	 	 	 	 	 	 	 	New York
	Metalico Transfer Realty, Inc.
	 	 	 	 	 	 	 	New York
	Metalico Transport, Inc.6
	 	 	 	 	 	 	 	New York
	River Hills by the River, Inc.7
	 	 	 	 	 	 	 	Florida
	Santa Rosa Lead Products, Inc.
	 	 	 	 	 	 	 	California
	Tranzact Corporation

	 	 	 	 	 	 	 	 	 	Delaware
	West Coast Shot, Inc.

	 	 	 	 	 	 
	 	 
	 	Nevada
	1	 	 	 	Metalico, Inc. owns 50.6% of outstanding stock.	 	 	 	 
	2

	 	 	 	Inactive
	 	

	 	

	 	

	3	 	 	 	Formerly known as Lake Erie Recycling Corp.	 	 	 	 
	4	 	 	 	Formerly known as Metalico-Buffalo, Inc.	 	 	 	 
	 

	 	 
	 	

	 	

	 	

	 	

	5	 	 	 	Formerly known as Metallico Lyell Acquisitions, Inc.	 	 	 	 
	 

	 	 
	 	

	 	

	 	

	 	

	6	 	 	 	Formerly known as Buffalo Hauling Corp.	 	 	 	 
	7	 	 	 	Wholly-owned subsidiary of Gulf Coast Recycling, Inc.	 	 	 	 

19

Schedule 3.1(k)

Material Changes

Indebtedness to sellers incurred in the acquisitions of assets of Compass Environmental Haulers,
Inc., by Metalico Transfer, Inc., real property of 150 Lee Road, LLC, by Metalico Transfer Realty,
Inc., and the capital stock of Tranzact Corporation by Metalico, Inc. in an aggregate amount of
approximately $3,085,000.

20

Schedule 3.1(t)

Options

Since the filing of the Company’s Quarterly Report for the three months ended March 31, 2007, the
Company has issued options to purchase an aggregate of 15,000 shares of common stock at $6.29 per
share (the market price of the common stock on the date of grant).

21

Schedule 3.1(y)

Registration Rights

Pursuant to the Company’s Second Amended and Restated Registration Rights Agreement dated May 24,
2004, certain holders of the Company’s common stock have registration rights with respect to
approximately 9.4 million shares of common stock held by them. The Company has received waivers
from the holders of the registration rights.

22EX-10.2

EXECUTION COPY

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this “Agreement”) is made and entered into as of June 21,
2007, by and among Metalico, Inc., a Delaware corporation (the “Company”), and the several
purchasers signatory hereto (each a “Purchaser” and collectively, the “Purchasers”).

This Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date
hereof between the Company and each Purchaser (the “Purchase Agreement”).

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the Company and the Purchasers agree as follows:

1. Definitions. Capitalized terms used and not otherwise defined herein that are
defined in the Purchase Agreement shall have the meanings given such terms in the Purchase
Agreement. As used in this Agreement, the following terms shall have the following meanings:

“Advice” shall have the meaning set forth in Section 6(e).

“Affiliate” means, with respect to any person, any other person which directly or indirectly
controls, is controlled by, or is under common control with, such person.

“Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City
are open for the general transaction of business.

“Closing” has the meaning set forth in the Purchase Agreement.

“Closing Date” has the meaning set forth in the Purchase Agreement.

“Commission” means the Securities and Exchange Commission.

“Common Stock” means the common stock of the Company, par value $0.001 per share, and any
securities into which such common stock may hereinafter be reclassified.

“Effective Date” means the date that the Registration Statement filed pursuant to Section 2(a)
is first declared effective by the Commission.

“Effectiveness Deadline” means, with respect to the Registration Statement required to be
filed to cover the resale by the Holders of the Registrable Securities, the earlier of: (i) the
90th calendar day following the Closing Date; provided, that, if the Commission reviews
and has written comments to the filed Registration Statement, then the Effectiveness Deadline under
this clause (i) shall be the 120th calendar day following the Closing Date, and (ii) the
fifth (5th) Trading Day following the date on which the Company is notified by the
Commission that the Registration Statement will not be reviewed or is no longer subject to further
review and comments and the effectiveness of the Registration Statement may be accelerated;
provided, however, that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that
the Commission is closed for business, the Effectiveness Deadline shall be extended to the next
Business Day on which the Commission is open for business.

“Effectiveness Period” shall have the meaning set forth in Section 2(b).

“Event” shall have the meaning set forth in Section 2(c).

“Event Date” shall have the meaning set forth in Section 2(c).

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

“Filing Deadline” means, with respect to the Registration Statement required to be filed
pursuant to Section 2(a), the 30th calendar day following the Closing Date, provided,
however, that if the Filing Deadline falls on a Saturday, Sunday or other day that the Commission
is closed for business, the Filing Deadline shall be extended to the next business day on which the
Commission is open for business.

“Holder” or “Holders” means the holder or holders, as the case may be, from time to time of
Registrable Securities.

“Indemnified Party” shall have the meaning set forth in Section 5(c).

“Indemnifying Party” shall have the meaning set forth in Section 5(c).

“Liquidated Damages” shall have the meaning set forth in Section 2(c).

“Losses” shall have the meaning set forth in Section 5(a).

“New York Courts” means the state and federal courts sitting in the City of New York, Borough
of Manhattan.

“Person” means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind.

“Principal Market” means the Trading Market on which the Common Stock is primarily listed on
and quoted for trading, which, as of the Closing Date, shall be the American Stock Exchange.

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition), whether commenced or
threatened.

“Prospectus” means the prospectus included in the Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a prospectus filed
as part of an effective registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by the Registration Statement,
and all other amendments and supplements to the Prospectus, including post-effective amendments,
and all material incorporated by reference or deemed to be incorporated by reference in such
Prospectus.

“Register,” “registered” and “registration” refer to a registration made by preparing and
filing a Registration Statement or similar document in compliance with the Securities Act and
pursuant to Rule 415, and the declaration or ordering of effectiveness of the Registration
Statement or document.

“Registrable Securities” means all of (i) the Shares and (ii) any securities issued or
issuable upon any stock split, dividend or other distribution, recapitalization or similar event
with respect to the Shares provided, that the Holder has completed and delivered to the Company a
Selling Shareholder Questionnaire; and provided, further, that a Holder’s security shall cease to
be Registrable Securities upon the earliest to occur of the following: (A) sale pursuant to a
Registration Statement or Rule 144 under the Securities Act (in which case, only such security sold
shall cease to be a Registrable Security); or (B) such security becoming eligible for sale by the
Holder pursuant to Rule 144(k).

“Registration Statement” means the registration statement of the Company filed under the
Securities Act that covers the resale of any of the Registrable Securities pursuant to the
provisions of this Agreement, amendments and supplements to the Registration Statement, including
post-effective amendments, all exhibits and all material incorporated by reference or deemed to be
incorporated by reference in the Registration Statement.

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

“Selling Shareholder Questionnaire” means a questionnaire in the form attached as Annex
B hereto, or such other form of questionnaire as may reasonably be adopted by the Company from
time to time.

“Shares” means the shares of Common Stock issued or issuable to the Purchasers pursuant to the
Purchase Agreement.

“Trading Day” means (i) a day on which the Common Stock is listed or quoted and traded on its
Principal Market (other than the OTC Bulletin Board), or (ii) if the Common Stock is not listed on
a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in
the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is
not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter
market as reported in the “pink sheets” by Pink Sheets LLC (or any similar organization or agency
succeeding to its functions of reporting prices); provided, that in the event that the Common Stock
is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a
Business Day.

“Trading Market” means whichever of the New York Stock Exchange, the American Stock Exchange,
the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market or OTC
Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question.

2. Registration.

(a) On or prior to the Filing Deadline, the Company shall prepare and file with the Commission
a “Shelf” Registration Statement covering the resale of all of the Registrable Securities not
already covered by an existing and effective Registration Statement for an offering to be made on a
continuous basis pursuant to Rule 415 or if Rule 415 is not available for offers and sales of the
Registrable Securities by such other means of distribution of Registrable Securities as the Holders
may reasonably specify. The Registration Statement shall be on Form S-3 (except if the Company is
not then eligible to register for resale the Registrable Securities on Form S-3, in which case such
registration shall be on another appropriate form in accordance herewith, subject to the provisions
of Section 2(f)) and shall contain (except if otherwise required pursuant to written comments
received from the Commission upon a review of the Registration Statement) the “Plan of
Distribution” section attached hereto as Annex A. Notwithstanding the registration
obligations set forth in this Section 2, in the event the Commission informs the Company
that all of the Registrable Securities cannot, as a result of the application of Rule 415, be
registered for resale as a secondary offering on a single registration statement, the Company
agrees to promptly (i) inform each of the holders thereof, (ii) use its commercially reasonable
efforts to file amendments to the Registration Statement as required by the Commission and/or (iii)
withdraw the Registration Statement and file a new registration statement (a “New Registration
Statement”), in either case covering the maximum number of Registrable Securities permitted to be
registered by the Commission, on Form S-3 or such other form available to register for resale the
Registrable Securities as a secondary offering; provided, however, that prior to filing such
amendment or New Registration Statement, the Company shall be obligated to use its commercially
reasonable efforts to advocate with the Commission for the registration of all of the Registrable
Securities in accordance with guidance from the Commission, including without limitation, the
Manual of Publicly Available Telephone Interpretations D.29. In the event the Company amends the
Registration Statement or files a New Registration Statement, as the case may be, under clauses
(ii) or (iii) above, the Company will use its commercially reasonable efforts to file with the
Commission, as promptly as allowed by Commission or guidance from the Commission provided to the
Company or to registrants of securities in general, one or more registration statements on Form S-3
or such other form available to register for resale those Registrable Securities that were not
registered for resale on the Initial Registration Statement, as amended, or the New Registration
Statement.

(b) The Company shall use its commercially reasonable efforts to cause the Registration
Statement to be declared effective by the Commission as soon as practicable but in no event later
than the Effectiveness Deadline (including filing with the Commission a request for acceleration of
effectiveness in accordance with Rule 461 promulgated under the Securities Act within five (5)
Business Days after the date that the Company is notified (orally or in writing, whichever is
earlier) by the Commission that the Registration Statement will not be “reviewed,” or not be
subject to further review and the effectiveness of the Registration Statement may be accelerated)
and shall use its commercially reasonable efforts to keep the Registration Statement continuously
effective under the Securities Act until the earlier of (i) the second anniversary of the Closing
Date, (ii) the date that all Registrable Securities covered by the Registration Statement may be
sold by Holders without volume restrictions pursuant to Rule 144(e) of the Securities Act or (iii)
such time as all Registrable Securities have been sold (A) pursuant to the Registration Statement,
(B) to or through a broker, dealer or underwriter in a public distribution or a public securities
transaction and/or (C) in a transaction exempt from the registration and prospectus delivery
requirements of the Securities Act under Section 4(1) thereof so that all transfer restrictions and
restrictive legends with respect thereto, if any, are removed upon the consummation of such sale
(the “Effectiveness Period”). The Company shall ensure that the Registration Statement (including
any amendments or supplements thereto and prospectuses contained therein) shall not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein,
or necessary to make the statements therein (in the case of prospectuses, in the light of the
circumstances in which they were made) not misleading. The Registration Statement shall also
cover, to the extent allowable under the Securities Act and the rules promulgated thereunder
(including Rule 416), such indeterminate number of additional shares of Common Stock resulting from
stock splits, stock dividends or similar transactions with respect to the Registrable Securities.
The Company shall promptly notify the Holders via facsimile or e-mail of the effectiveness of the
Registration Statement on the same Trading Day that the Company telephonically confirms
effectiveness with the Commission, which shall be the date requested for effectiveness of the
Registration Statement. Notwithstanding any other provision of this Agreement, if the Commission
sets forth a limitation on the number of Registrable Securities permitted to be registered on the
Registration Statement, any required cutbacks of Shares shall be applied to the Purchasers pro-rata
in accordance with the number of such Shares sought to be included in such Registration Statement
by reference to such Purchaser’s (and in the case of a subsequent transfer the initial Purchaser’s)
aggregate Subscription Amount relative to all Subscription Amounts.

(c) If: (i) the Registration Statement is not filed with the Commission on or prior to the
Filing Deadline, (ii) the Registration Statement, is not declared effective by the Commission (or
otherwise does not become effective) on or prior to its Effectiveness Deadline, or (iii) after its
Effective Date, the Registration Statement ceases for any reason (including without limitation by
reason of a stop order, or the Company’s failure to update the Registration Statement), but
excluding the inability of any Holder to sell the Registrable Securities covered thereby due to
market conditions, to remain continuously effective as to all Registrable Securities for which it
is required to be effective (without being succeeded on the same date immediately by a
post-effective amendment or supplement to the Registration Statement that cures such failure and
that is itself, in the case of a post-effective amendment, immediately declared effective), the
Holders are not permitted to utilize the Prospectus therein to resell such Registrable Securities
for an aggregate of not more than two periods, each consisting of 60 Trading Day (which need not be
consecutive), in any 12-month period, (any such failure or breach in clauses (i) through (iii)
above being referred to as an “Event,” and, for purposes of clauses (i) or (ii), the date on which
such Event occurs, or for purposes of clause (iii) the date on which such 60 Trading Day period (as
applicable) is exceeded, being referred to as “Event Date”), then in addition to any other rights
available to the Holders hereunder or under applicable law: (x) within five (5) Business Days after
each Event Date, the Company shall pay to each Holder an amount in cash, as liquidated damages and
not as a penalty (“Liquidated Damages”), equal to 1.0% of the aggregate purchase price paid by such
Holder pursuant to the Purchase Agreement for any Registrable Securities held by such Holder on the
Event Date per month of time between the Event Date and the date such Event is cured, prorated for
any period less than one month; provided that such Liquidated Damages paid to each Holder may not
exceed more than 10% of the purchase price paid by such Holder for its Registrable Securities. The
foregoing represents the sole monetary remedy to any Holder in connection with any Event. In no
event shall the Company be required to pay Liquidated Damages in excess of the applicable amount
set forth above, regardless of whether one or multiple Events exists. The Company shall pay the
Holders any Liquidated Damages accrued for the first month after an Event Date within seven
calendar days after the end of such month, and any Liquidated Damages accrued for any subsequent
month within seven calendar days after the end of such month. If the Company fails to pay any
Liquidated Damages pursuant to this Section in full within five (5) Business Days after the date
payable, the Company will pay interest thereon at a rate of 10% per annum (or such lesser maximum
amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date
such Liquidated Damages are due until such amounts, plus all such interest thereon, are paid in
full. An Event under clause (i) above shall be cured on the date that the Registration Statement
is filed with the SEC; an Event under clause (ii) above shall be cured on the date that the
Registration Statement is declared effective by the SEC; and an Event under clause (iii) above
shall be cured on the date that the Registration Statement is declared effective by the SEC or
otherwise usable. The Effectiveness Deadline for a Registration Statement shall be extended
without default or liquidated damages hereunder in the event that the Company’s failure to obtain
the effectiveness of the Registration Statement on a timely basis results from the failure of a
Purchaser to timely provide the Company with information requested by the Company and necessary to
complete the Registration Statement in accordance with the requirements of the Securities Act.

(d) The Company shall not, from the date hereof until the date that is 60 days after the
Effective Date of the Registration Statement, prepare and file with the Commission a registration
statement relating to an offering for its own account or the account of others under the Securities
Act of any of its equity securities other than a registration statement on Form S-8 or, in
connection with an acquisition, on Form S-4.

(e) Each Holder agrees to furnish to the Company a completed Questionnaire in the form
attached to this Agreement as Annex B (a “Selling Shareholder Questionnaire”) not more than
five (5) Trading Days following the date of this Agreement. Each Holder further agrees that it
shall not be entitled to be named as a selling securityholder in the Registration Statement or use
the Prospectus for offers and resales of Registrable Securities at any time, unless such Holder has
returned to the Company a completed and signed Questionnaire. If a Holder of Registrable Securities
returns a Questionnaire after the deadline specified in the previous sentence, the Company shall
use its commercially reasonable efforts to take such actions as are required to name such Holder as
a selling security holder in the Registration Statement or any pre-effective or post-effective
amendment thereto and to include (to the extent not theretofore included) in the Registration
Statement the Registrable Securities identified in such late Questionnaire. Each Holder
acknowledges and agrees that the information in the Selling Shareholder Questionnaire will be used
by the Company in the preparation of the Registration Statement and hereby consents to the
inclusion of such information in the Registration Statement.

(f) In the event that Form S-3 is not  available for the registration of the resale of
Registrable Securities hereunder, the Company shall (i) register the resale of the Registrable
Securities on another appropriate form reasonably acceptable to the Holders and (ii) undertake to
register the Registrable Securities on Form S-3 as soon as such form is available, provided that
the Company shall maintain the effectiveness of the Registration Statement then in effect until
such time as a Registration Statement on Form S-3 covering the Registrable Securities has been
declared effective by the Commission.

3. Registration Procedures

In connection with the Company’s registration obligations hereunder, the Company shall:

(a) Not less than two Trading Days prior to the filing of the Registration Statement or any
amendment or supplement thereto (except for Annual Reports on Form 10-K, and Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K and any similar or successor reports), the Company shall
(i) furnish to the Holder copies of such Registration Statement or amendment or supplement thereto,
as proposed to be filed, which documents will be subject to the review of such Holder (it being
acknowledged and agreed that if a Holder does not object to or comment on the aforementioned
documents within such two Trading Day period, then the Holder shall be deemed to have consented to
and approved the use of such documents). The Company shall not file the Registration Statement or
amendment or supplement thereto in a form to which a Holder reasonably objects in good faith,
provided that, the Company is notified of such objection in writing no later than two (2) Trading
Days after the Holders have been so furnished copies of such documents.

(b) (i) Prepare and file with the Commission such amendments (including post-effective
amendments) and supplements to the Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep the Registration Statement continuously effective as to the
applicable Registrable Securities for its Effectiveness Period; (ii) cause the related Prospectus
to be amended or supplemented by any required Prospectus supplement (subject to the terms of this
Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424; (iii) respond as
promptly as reasonably practicable to any comments received from the Commission with respect to the
Registration Statement or any amendment thereto and, as promptly as reasonably possible, provide
the Holders true and complete copies of all correspondence from and to the Commission relating to
the Registration Statement that pertains to the Holders as “Selling Stockholders” but not any
comments that would result in the disclosure to the Holders of material and non-public information
concerning the Company; and (iv) comply with the provisions of the Securities Act and the Exchange
Act with respect to the disposition of all Registrable Securities covered by the Registration
Statement until such time as all of such Registrable Securities shall have been disposed of
(subject to the terms of this Agreement) in accordance with the intended methods of disposition by
the Holders thereof as set forth in the Registration Statement as so amended or in such Prospectus
as so supplemented; provided, however, that each Purchaser shall be responsible for the delivery of
the Prospectus to the Persons to whom such Purchaser sells any of the Shares, and each Purchaser
agrees to dispose of Registrable Securities in compliance with the plan of distribution described
in the Registration Statement and otherwise in compliance with applicable federal and state
securities laws. In the case of amendments and supplements to the Registration Statement which are
required to be filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason
of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous report under
the Exchange Act, the Company shall have incorporated such report by reference into the
Registration Statement, if applicable, or shall file such amendments or supplements with the
Commission on the same day on which the Exchange Act report which created the requirement for the
Company to amend or supplement the Registration Statement was filed.

(c) Notify the Holders (which notice shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have
been made) as promptly as reasonably possible and (if requested by any such Person) confirm such
notice in writing no later than one Trading Day following the day (i)(A) when a Prospectus or any
Prospectus supplement or post-effective amendment to the Registration Statement is proposed to be
filed; and (B) with respect to each Registration Statement or any post-effective amendment, when
the same has become effective; (ii) of any request by the Commission or any other Federal or state
governmental authority for amendments or supplements to the Registration Statement or Prospectus or
for additional information that pertains to the Holders as “Selling Stockholders” or the “Plan of
Distribution”; (iii) of the issuance by the Commission or any other federal or state governmental
authority of any stop order suspending the effectiveness of the Registration Statement covering any
or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of
the receipt by the Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction,
or the initiation or threatening of any Proceeding for such purpose; (v) of the occurrence of any
event or passage of time that makes the financial statements included in the Registration Statement
ineligible for inclusion therein or any statement made in the Registration Statement or Prospectus
or any document incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires any revisions to the Registration Statement, Prospectus or other
documents so that, in the case of the Registration Statement or the Prospectus, as the case may be,
it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein (in the case of any
Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which
they were made), not misleading; and (vi) the occurrence or existence of any pending corporate
development with respect to the Company that the Company believes may be material and that, in the
determination of the company, makes it not in the best interest of the Company to allow continued
availability of the Registration Statement or Prospectus, provided that any and all of such
information shall remain confidential to each Holder until such information otherwise becomes
public, unless disclosure by a Holder is required by law; provided, further, that notwithstanding
each Holder’s agreement to keep such information confidential, the Holders make no acknowledgement
that any such information is material, non-public information.

(d) Use commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the
withdrawal of (i) any order suspending the effectiveness of the Registration Statement, or (ii) any
suspension of the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, as soon as practicable.

(e) If requested in writing by a Holder, furnish to such Holder, without charge, at least one
conformed copy of each Registration Statement and each amendment thereto and all exhibits to the
extent requested by such Person (including those previously furnished or incorporated by reference)
promptly after the filing of such documents with the Commission; provided, that the Company shall
have no obligation to provide any document pursuant to this clause that is available on the
Commission’s EDGAR system.

(f) Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable
efforts to register or qualify, unless an exemption from registration and qualification applies,
the Registrable Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Holder reasonably requests in writing, to keep each
such registration or qualification (or exemption therefrom) effective during the Effectiveness
Period and to do any and all other acts or things reasonably necessary to enable the disposition in
such jurisdictions of the Registrable Securities covered by the Registration Statement; provided,
that the Company shall not be required to qualify generally to do business in any jurisdiction
where it is not then so qualified or to take any action that would subject the Company to general
service of process in any jurisdiction where it is not then so subject or subject the Company to
any material tax in any such jurisdiction where it is not then so subject.

(g) If requested by the Holders, cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to be delivered to a
transferee pursuant to the Registration Statement, which certificates shall be free, to the extent
permitted by the Purchase Agreement and under law, of all restrictive legends, and to enable such
Registrable Securities to be in such denominations and registered in such names as any such Holders
may reasonably request.

(h) Following the occurrence of any event contemplated by Section 3(c)(iii) through (vi), as
promptly as reasonably practicable under the circumstances taking into account the Company’s good
faith assessment of any adverse consequences to the Company and its shareholders of the premature
disclosure of such event, prepare a supplement or amendment, including a post-effective amendment,
to the Registration Statement or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, no Registration Statement nor any Prospectus will
contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein (in the case of any Prospectus, form of
prospectus or supplement thereto, in light of the circumstances under which they were made), not
misleading.

(i) (i) In the time and manner required by the Principal Market, prepare and file with such
Trading Market an additional shares listing application covering all of the Registrable Securities,
(ii) take all steps necessary to cause such Registrable Securities to be approved for listing on
the Principal Market as soon as possible thereafter, (iii) if requested by any Holder, provide such
Holder evidence of such listing, and (iv) during the Effectiveness Period, maintain the listing of
such Registrable Securities on the Principal Market.

(j) In order to enable the Holders to sell Shares under Rule 144, for a period of two years
from the Closing, the Company covenants to timely file (or obtain extensions in respect thereof and
file within the applicable grace period) all reports required to be filed by the Company after the
date hereof pursuant to Section 13(a) or 15(d) of the Exchange Act. During such two year period, if
the Company is not required to file reports pursuant to Section 13(a) or 15(d) of the Exchange Act,
it will prepare and furnish to the Holders and make publicly available in accordance with Rule
144(c) such information as is required for the Holders to sell the Shares under Rule 144. The
Company further covenants that it will take such further action as any Holder may reasonably
request, all to the extent required from time to time to enable such Person to sell Shares without
registration under the Securities Act within the limitation of the exemptions provided by Rule 144
promulgated under the Securities Act.

(k) The Company may require each selling Holder to furnish to the Company a certified
statement as to the number of shares of Common Stock beneficially owned by such Holder and any
Affiliate thereof and as to any NASD affiliations and, if required by the Commission, of any
natural persons who have the power to vote or dispose of the Common Stock, and any other
information as may be requested by the Commission, the NASD or any state securities commission.
During any periods that the company is unable to meet its obligations hereunder with respect to the
registration of Registrable Securities solely because any Holder fails to furnish such information
within three Trading Days of the Company’s request, any liquidated damages that are accruing at
such time as to such Holder only shall be tolled and any Event that may otherwise occur solely
because of such delay shall be suspended as to such Holder only, until such information is
delivered to the Company.

4. Registration Expenses. All fees and expenses incident to the Company’s performance
of or compliance with its obligations under this Agreement (excluding any underwriting discounts
and selling commissions and all legal fees and expenses of legal counsel for any Holder) shall be
borne by the Company whether or not any Registrable Securities are sold pursuant to the
Registration Statement. The fees and expenses referred to in the foregoing sentence shall include,
without limitation, (i) all registration and filing fees (including, without limitation, fees and
expenses (A) with respect to filings required to be made with any Trading Market on which the
Common Stock is then listed for trading and (B) in compliance with applicable state securities or
Blue Sky laws reasonably agreed to by the Company in writing (including, without limitation, fees
and disbursements of counsel for the Company in connection with Blue Sky qualifications or
exemptions of the Registrable Securities and determination of the eligibility of the Registrable
Securities for investment under the laws of such jurisdictions as requested by the Holders), (ii)
printing expenses (including, without limitation, expenses of printing certificates for Registrable
Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by
the Holders of a majority of the Registrable Securities included in the Registration Statement),
(iii) messenger, telephone and delivery expenses relating to the Company’s obligations hereunder,
(iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if
the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by
the Company in connection with the consummation of the transactions contemplated by this Agreement.
In addition, the Company shall be responsible for all of its internal expenses incurred in
connection with the consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses incurred in
connection with the listing of the Registrable Securities on any securities exchange as required
hereunder. In no event shall the Company be responsible for any broker or similar commissions of
any Holder or, except to the extent provided for in the Transaction Documents, any legal fees or
other costs of the Holders.

5. Indemnification.

(a) Indemnification by the Company. The Company shall, notwithstanding any
termination of this Agreement, indemnify, defend and hold harmless each Holder, the officers,
directors, agents, partners, members, managers, shareholders, Affiliates and employees of each of
them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) and the officers, directors, partners, members, managers,
shareholders, agents and employees of each such controlling Person, to the fullest extent permitted
by applicable law, from and against any and all losses, claims, damages, liabilities, costs
(including, without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”),
as incurred, that arise out of or are based upon any untrue or alleged untrue statement of a
material fact contained in the Registration Statement, any Prospectus or any form of prospectus or
in any amendment or supplement thereto (it being understood that the Holder has approved Annex
A hereto for this purpose) or in any preliminary prospectus, or arising out of or relating to
any omission or alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made) not misleading,
except to the extent, but only to the extent, that (A) such untrue statements, alleged untrue
statements, omissions or alleged omissions are based solely upon information regarding such Holder
furnished in writing to the Company by such Holder expressly for use therein, or to the extent that
such information relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and approved by such Holder expressly for use in the
Registration Statement, such Prospectus or such form of Prospectus or in any amendment or
supplement thereto (it being understood that each Holder has approved Annex A hereto for
this purpose), (B) in the case of an occurrence of an event of the type specified in Section
3(c)(iii)-(vi), the use by a Holder of an outdated or defective Prospectus after the Company has
notified such Holder in writing that the Prospectus is outdated or defective and prior to the
receipt by such Holder of the Advice contemplated and defined in Section 6(e) below, but only if
and to the extent that following the receipt of the Advice the misstatement or omission giving rise
to such Loss would have been corrected or (C) any such Losses arise out of the Purchaser’s (or any
other indemnified Person’s) failure to send or give a copy of the Prospectus or supplement (as then
amended or supplemented) to the Persons asserting an untrue statement or alleged untrue statement
or alleged untrue statement or omission or alleged omission at or prior to the written confirmation
of the sale of Registrable Securities to such Person if such statement or omission was corrected in
such Prospectus or supplement. The Company shall notify the Holders promptly of the institution,
threat or assertion of any Proceeding arising from or in connection with the transactions
contemplated by this Agreement of which the Company is aware. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of an Indemnified Party (as
defined in Section 5(c)) and shall survive the transfer of the Registrable Securities by the
Holders.

(b) Indemnification by Holders. Each Holder shall, notwithstanding any termination of
this Agreement, severally and not jointly, indemnify and hold harmless the Company, its directors,
officers, agents and employees, each Person who controls the Company (within the meaning of Section
15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents
or employees of such controlling Persons, to the fullest extent permitted by applicable law, from
and against all Losses, as incurred, arising solely out of or based solely upon (a) such Holder’s
failure to comply with the prospectus delivery requirements of the Securities Act or (b) any untrue
or alleged untrue statement of a material fact contained in the Registration Statement, any
Prospectus, or any form of prospectus, or in any amendment or supplement thereto or in any
preliminary prospectus, or arising solely out of or relating to any omission or alleged omission of
a material fact required to be stated therein or necessary to make the statements therein (in the
case of any Prospectus, or any form of prospectus or supplement thereto, in light of the
circumstances under which they were made) not misleading (i) to the extent, but only to the extent
that, such untrue statements or omissions are based solely upon information regarding such Holder
furnished in writing to the Company by such Holder expressly for use therein, (ii) to the extent
that such information relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and approved by such Holder expressly for use in the
Registration Statement (it being understood that the Holder has approved Annex A hereto for
this purpose), such Prospectus or such form of Prospectus or in any amendment or supplement thereto
or (iii) in the case of an occurrence of an event of the type specified in Section 3(c)(iii)-(vi),
the use by such Holder of an outdated or defective Prospectus after the Company has notified such
Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such
Holder of the Advice contemplated in Section 6(e). In no event shall the liability of any selling
Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such
Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

(c) Conduct of Indemnification Proceedings. If any Proceeding shall be brought or
asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such
Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying
Party”) in writing, and the Indemnifying Party shall have the right to assume the defense thereof,
including the employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all reasonable fees and expenses incurred in connection with defense thereof; provided,
that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying
Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent
that it shall be finally determined by a court of competent jurisdiction (which determination is
not subject to appeal or further review) that such failure shall have proximately and materially
adversely prejudiced the Indemnifying Party.

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such
Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding
(including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
and such Indemnified Party shall have been advised by counsel that a conflict of interest exists if
the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which
case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ
separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have
the right to assume the defense thereof and such counsel shall be at the expense of the
Indemnifying Party); provided, that the Indemnifying Party shall not be liable for the fees and
expenses of more than one separate firm of attorneys at any time for all Indemnified Parties. The
Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without
its written consent, which consent shall not be unreasonably withheld, delayed or conditioned. No
Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any
settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party from all liability on
claims that are the subject matter of such Proceeding.

The Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such
fees and expenses applicable to such actions for which such Indemnified Party is not entitled to
indemnification hereunder, determined based upon the relative faults of the parties.

(d) Contribution. If a claim for indemnification under Section 5(a) or 5(b) is
unavailable to an Indemnified Party (by reason of public policy or otherwise), then each
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount
paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in
connection with the actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying Party and
Indemnified Party shall be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact or omission or
alleged omission of a material fact, has been taken or made by, or relates to information supplied
by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such action, statement or omission.
The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject
to the limitations set forth in this Agreement, any reasonable attorneys’ or other reasonable fees
or expenses incurred by such party in connection with any Proceeding to the extent such party would
have been indemnified for such fees or expenses if the indemnification provided for in this Section
was available to such party in accordance with its terms.

The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 5(d) were determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually
received by such Holder from the sale of the Registrable Securities subject to the Proceeding
exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

The indemnity and contribution agreements contained in this Section are in addition to any
liability that the Indemnifying Parties may have to the Indemnified Parties and are not in
diminution or limitation of the indemnification provisions under the Purchase Agreement.

6. Miscellaneous.

(a) Remedies. In the event of a breach by the Company or by a Holder of any of their
obligations under this Agreement, each Holder or the Company, as the case may be, in addition to
being entitled to exercise all rights granted by law and under this Agreement, including recovery
of damages, will be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary damages would not provide adequate compensation for any
losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby
further agrees that, in the event of any action for specific performance in respect of such breach,
it shall waive the defense that a remedy at law would be adequate.

(b) No Piggyback on Registrations. Except and to the extent specified in Schedule
3.1(y) to the Purchase Agreement, neither the Company nor any of its security holders (other than
the Holders in such capacity pursuant hereto) may include securities of the Company in the
Registration Statement other than the Registrable Securities, and the Company shall not prior to
the Effective Date enter into any agreement providing any such right to any of it security holders.

(c) Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. This
Agreement supersedes all prior agreements and understandings between the parties with respect to
such subject matter, except for, and as provided in the Transaction Documents.

(d) Compliance. Each Holder covenants and agrees that it will comply with the
prospectus delivery requirements of the Securities Act as applicable to it (unless an exemption
therefrom is available) in connection with sales of Registrable Securities pursuant to the
Registration Statement and shall sell the Registrable Securities only in accordance with a method
of distribution described in the Registration Statement.

(e) Discontinued Disposition. Each Holder further agrees by its acquisition of such
Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any
event of the kind described in Section 3(c)(iii)-(vi), such Holder will forthwith discontinue
disposition of such Registrable Securities under the Registration Statement until it is advised in
writing (the “Advice”) by the Company that the use of the applicable Prospectus (as it may have
been supplemented or amended) may be resumed. The Company may provide appropriate stop orders to
enforce the provisions of this paragraph. The Company agrees and acknowledges that any periods
during which the Holder is required to discontinue the disposition of the Registrable Securities
hereunder shall be subject to the provisions of Section 2(c) as qualified by Section 3(a).

(f) Piggy-Back Registrations. If at any time during the Effectiveness Period there
is not an effective Registration Statement covering all of the Registrable Securities and the
Company shall determine to prepare and file with the Commission a registration statement relating
to an offering for its own account or the account of others under the Securities Act of any of its
equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities
Act) or their then equivalents relating to equity securities to be issued solely in connection with
any acquisition of any entity or business or equity securities issuable in connection with stock
option or other employee or director benefit plans, then the Company shall send to each Holder
written notice of such determination and, if within fifteen days after receipt of such notice, any
such Holder shall so request in writing, the Company shall include in such registration statement
all or any part of such Registrable Securities such holder requests to be registered, subject to
customary underwriter cutbacks applicable to all holders of registration rights on a pro rata basis
(along with other holders of piggyback registration rights with respect to the Company); provided,
that (i) the Company shall not be required to register any Registrable Securities pursuant to this
Section 6(f) that are eligible for resale under Rule 144(k) promulgated under the Securities Act or
that are the subject of a then effective Registration Statement and (ii) if at any time after
giving written notice of its intention to register any securities and prior to the effective date
of the registration statement filed in connection with such registration, the Company shall
determine for any reason not to register or to delay registration of such securities, the Company
may, at its election, give written notice of such determination to such Holder and, thereupon, (i)
in the case of a determination not to register, shall be relieved of its obligation to register any
Registrable Securities pursuant to this Section 6(f) in connection with such registration (but not
from its obligation to pay expenses in accordance with Section 4 hereof), and (ii) in the case of a
determination to delay registering, shall be permitted to delay registering any Registrable
Securities being registered pursuant to this Section 6(f) for the same period as the delay in
registering such other securities.

(g) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented unless the same shall be
in writing and signed by the Company and Holders holding a majority of the then outstanding
Registrable Securities, and waivers or consents to departures from the provisions hereof may not be
given, unless the same shall be in writing and signed by the Company and each Holder of the then
outstanding Registrable Securities. Notwithstanding the foregoing, a waiver or consent to depart
from the provisions hereof with respect to a matter that relates exclusively to the rights of
Holders and that does not directly or indirectly affect the rights of other Holders may be given by
Holders of all of the Registrable Securities to which such waiver or consent relates; provided,
however, that the provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the immediately preceding sentence.

(h) Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be delivered as set forth in the Purchase Agreement.

(i) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties and shall inure to the
benefit of each Holder. Nothing in this Agreement, express or implied, is intended to confer upon
any party other than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement. The Company may not assign its rights or obligations hereunder without
the prior written consent of all the Holders of the then outstanding Registrable Securities (other
than by merger or to an entity which acquires the Company including by way of acquiring all or
substantially all of the Company’s assets). The rights of the Holders hereunder, including the
right to have the Company register Registrable Securities pursuant to this Agreement, may be
assigned by each Holder to transferees or assignees of all or any portion of the Registrable
Securities, but only if (i) the Holder agrees in writing with the transferee or assignee to assign
such rights, and a copy of such agreement is furnished to the Company within a reasonable time
after such assignment, (ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of the name and address of such transferee or assignee
and the securities with respect to which such registration rights are being transferred or
assigned, (iii) at or before the time the Company received the written notice contemplated by
clause (ii) of this sentence, the transferee or assignee agrees in writing with the Company to be
bound by all of the provisions contained herein and (iv) the transferee is an “accredited
investor,” as that term is defined in Rule 501 of Regulation D.

(j) Execution and Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original and, all of which
taken together shall constitute one and the same Agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party, it being understood
that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall
create a valid and binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “.pdf” signature were the original
thereof.

(k) Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be determined in accordance with the provisions of the
Purchase Agreement.

(l) Cumulative Remedies. The remedies provided herein are cumulative and not
exclusive of any remedies provided by law.

(m) Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties
that they would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

(n) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

(o) Independent Nature of Purchasers’ Obligations and Rights. The obligations of each
Purchaser under this Agreement are several and not joint with the obligations of any other
Purchaser hereunder, and no Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser hereunder. The decision of each Purchaser to purchase the
Shares pursuant to the Transaction Documents has been made independently of any other Purchaser.
Nothing contained herein or in any other agreement or document delivered at any closing, and no
action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create
a presumption that the Purchasers are in any way acting in concert with respect to such obligations
or the transactions contemplated by this Agreement. Each Purchaser acknowledges that no other
Purchaser has acted as agent for such Purchaser in connection with making its investment hereunder
and that no Purchaser will be acting as agent of such Purchaser in connection with monitoring its
investment in the Shares or enforcing its rights under the Transaction Documents. Each Purchaser
shall be entitled to protect and enforce its rights, including, without limitation, the rights
arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined
as an additional party in any Proceeding for such purpose. The Company acknowledges that each of
the Purchasers has been provided with the same Registration Rights Agreement for the purpose of
closing a transaction with multiple Purchasers and not because it was required or requested to do
so by any Purchaser.

(p) Currency. Unless otherwise indicated, all dollar amounts referred to in this
Agreement are in United States Dollars. All amounts owing under this Agreement are in United
States Dollars. All amounts denominated in other currencies shall be converted in the United
States Dollar equivalent amount in accordance with the applicable exchange rate in effect on the
date of calculation.

(q) Further Assurances. The parties shall execute and deliver all such further
instruments and documents and take all such other actions as may reasonably be required to carry
out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein
contained.

1

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of
the date first written above.

METALICO, INC.

By:     

Name:

Title:

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGES OF HOLDERS TO FOLLOW]

2

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above.

NAME OF INVESTING ENTITY

AUTHORIZED SIGNATORY

By:

Name:

Title:

ADDRESS FOR NOTICE

c/o:

Street:

City/State/Zip:

Attention:

Tel:

Fax:

Email:

3

Annex A

PLAN OF DISTRIBUTION

We are registering the shares of Common Stock issued to the selling shareholders to permit the
resale of these shares of Common Stock by the holders of the shares of Common Stock from time to
time after the date of this prospectus. We will not receive any of the proceeds from the sale by
the selling shareholders of the shares of Common Stock. We will bear all fees and expenses
incident to our obligation to register the shares of Common Stock.

The selling shareholders may sell all or a portion of the shares of Common Stock beneficially
owned by them and offered hereby from time to time directly or through one or more underwriters,
broker-dealers or agents. If the shares of Common Stock are sold through underwriters or
broker-dealers, the selling shareholders will be responsible for underwriting discounts or
commissions or agent’s commissions. The shares of Common Stock may be sold on any national
securities exchange or quotation service on which the securities may be listed or quoted at the
time of sale, in the over-the-counter market or in transactions otherwise than on these exchanges
or systems or in the over-the-counter market and in one or more transactions at fixed prices, at
prevailing market prices at the time of the sale, at varying prices determined at the time of sale,
or at negotiated prices. These sales may be effected in transactions, which may involve crosses or
block transactions. The selling shareholders may use any one or more of the following methods when
selling shares:

	•	 	ordinary brokerage transactions and transactions in which the broker-dealer solicits
purchasers;

	•	 	block trades in which the broker-dealer will attempt to sell the shares as agent but may
position and resell a portion of the block as principal to facilitate the transaction;

	•	 	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

	•	 	an exchange distribution in accordance with the rules of the applicable exchange;

	•	 	privately negotiated transactions;

	•	 	settlement of short sales entered into after the effective date of the registration
statement of which this prospectus is a part;

	•	 	broker-dealers may agree with the selling shareholders to sell a specified number of such
            shares at a stipulated price per share;

	•	 	through the writing or settlement of options or other hedging transactions, whether such
options are listed on an options exchange or otherwise;

	•	 	a combination of any such methods of sale; and

	•	 	any other method permitted pursuant to applicable law.

The selling shareholders also may resell all or a portion of the shares in open market
transactions in reliance upon Rule 144 under the Securities Act, as permitted by that rule, or
Section 4(1) under the Securities Act, if available, rather than under this prospectus, provided
that they meet the criteria and conform to the requirements of those provisions.

Broker-dealers engaged by the selling shareholders may arrange for other broker-dealers to
participate in sales. If the selling shareholders effect such transactions by selling shares of
Common Stock to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts, concessions or
commissions from the selling shareholders or commissions from purchasers of the shares of Common
Stock for whom they may act as agent or to whom they may sell as principal. Such commissions will
be in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the
case of an agency transaction will not be in excess of a customary brokerage commission in
compliance with NASD Rule 2440; and in the case of a principal transaction a markup or markdown in
compliance with NASD IM-2440.

In connection with sales of the shares of Common Stock or otherwise, the selling shareholders
may enter into hedging transactions with broker-dealers or other financial institutions, which may
in turn engage in short sales of the shares of Common Stock in the course of hedging in positions
they assume. The selling shareholders may also sell shares of Common Stock short and if such short
sale shall take place after the date that this Registration Statement is declared effective by the
Commission, the selling shareholders may deliver shares of Common Stock covered by this prospectus
to close out short positions and to return borrowed shares in connection with such short sales.
The selling shareholders may also loan or pledge shares of Common Stock to broker-dealers that in
turn may sell such shares, to the extent permitted by applicable law. The selling shareholders may
also enter into option or other transactions with broker-dealers or other financial institutions or
the creation of one or more derivative securities which require the delivery to such broker-dealer
or other financial institution of shares offered by this prospectus, which shares such
broker-dealer or other financial institution may resell pursuant to this prospectus (as
supplemented or amended to reflect such transaction). Notwithstanding the foregoing, the selling
shareholders have been advised that they may not use shares registered on this registration
statement to cover short sales of our common stock made prior to the date the registration
statement, of which this prospectus forms a part, has been declared effective by the SEC.

The selling shareholders may, from time to time, pledge or grant a security interest in some
or all of the shares of Common Stock owned by them and, if they default in the performance of their
secured obligations, the pledgees or secured parties may offer and sell the shares of Common Stock
from time to time pursuant to this prospectus or any amendment to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act of 1933, as amended, amending, if
necessary, the list of selling shareholders to include the pledgee, transferee or other successors
in interest as selling shareholders under this prospectus. The selling shareholders also may
transfer and donate the shares of Common Stock in other circumstances in which case the
transferees, donees, pledgees or other successors in interest will be the selling beneficial owners
for purposes of this prospectus.

The selling shareholders and any broker-dealer or agents participating in the distribution of
the shares of Common Stock may be deemed to be “underwriters” within the meaning of Section 2(11)
of the Securities Act in connection with such sales. In such event, any commissions paid, or any
discounts or concessions allowed to, any such broker-dealer or agent and any profit on the resale
of the shares purchased by them may be deemed to be underwriting commissions or discounts under the
Securities Act. Selling Stockholders who are “underwriters” within the meaning of Section 2(11) of
the Securities Act will be subject to the prospectus delivery requirements of the Securities Act
and may be subject to certain statutory liabilities of, including but not limited to, Sections 11,
12 and 17 of the Securities Act and Rule 10b-5 under the Securities Exchange Act of 1934, as
amended, or the Exchange Act.

Each selling shareholder has informed the Company that it is not a registered broker-dealer
and does not have any written or oral agreement or understanding, directly or indirectly, with any
person to distribute the Common Stock. Upon the Company being notified in writing by a selling
shareholder that any material arrangement has been entered into with a broker-dealer for the sale
of common stock through a block trade, special offering, exchange distribution or secondary
distribution or a purchase by a broker or dealer, a supplement to this prospectus will be filed, if
required, pursuant to Rule 424(b) under the Securities Act, disclosing (i) the name of each such
selling shareholder and of the participating broker-dealer(s), (ii) the number of shares involved,
(iii) the price at which such the shares of Common Stock were sold, (iv) the commissions paid or
discounts or concessions allowed to such broker-dealer(s), where applicable, (v) that such
broker-dealer(s) did not conduct any investigation to verify the information set out or
incorporated by reference in this prospectus, and (vi) other facts material to the transaction. In
no event shall any broker-dealer receive fees, commissions and markups, which, in the aggregate,
would exceed eight percent (8%).

Under the securities laws of some states, the shares of Common Stock may be sold in such
states only through registered or licensed brokers or dealers. In addition, in some states the
shares of Common Stock may not be sold unless such shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is available and is complied
with.

There can be no assurance that any selling shareholder will sell any or all of the shares of
Common Stock registered pursuant to the shelf registration statement, of which this prospectus
forms a part.

The selling shareholder and any other person participating in such distribution will be
subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and the rules
and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which
may limit the timing of purchases and sales of any of the shares of Common Stock by the selling
shareholder and any other participating person. Regulation M may also restrict the ability of any
person engaged in the distribution of the shares of Common Stock to engage in market-making
activities with respect to the shares of Common Stock. All of the foregoing may affect the
marketability of the shares of Common Stock and the ability of any person or entity to engage in
market-making activities with respect to the shares of Common Stock.

We will pay all expenses of the registration of the shares of Common Stock pursuant to the
registration rights agreement, including, without limitation, Securities and Exchange Commission
filing fees and expenses of compliance with state securities or “blue sky” laws; provided, however,
that a selling shareholder will pay all underwriting discounts and selling commissions, if any and
any related legal expenses incurred by it. We will indemnify the selling shareholders against
certain liabilities, including some liabilities under the Securities Act, in accordance with the
registration rights agreements, or the selling shareholders will be entitled to contribution. We
may be indemnified by the selling shareholders against civil liabilities, including liabilities
under the Securities Act, that may arise from any written information furnished to us by the
selling shareholders specifically for use in this prospectus, in accordance with the related
registration rights agreements, or we may be entitled to contribution.

4

Annex B

METALICO, INC.

SELLING SHAREHOLDER NOTICE AND QUESTIONNAIRE

The undersigned holder of shares of common stock, par value $0.001 per share, of Metalico,
Inc., a Delaware corporation (the “Company”) issued pursuant to a certain Securities Purchase
Agreement by and among the Company and the Purchasers named therein, dated as of June      , 2007
(the “Agreement”), understands that the Company intends to file with the Securities and Exchange
Commission a registration statement on Form S-3 (the “Resale Registration Statement”) for the
registration and the resale under Rule 415 of the Securities Act of 1933, as amended (the
“Securities Act”), of the Registrable Securities in accordance with the terms of the Agreement. All
capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the
Agreement.

In order to sell or otherwise dispose of any Registrable Securities pursuant to the Resale
Registration Statement, a holder of Registrable Securities generally will be required to be named
as a selling stockholder in the related prospectus or a supplement thereto (as so supplemented, the
“Prospectus”), deliver the Prospectus to purchasers of Registrable Securities and be bound by the
provisions of the Agreement (including certain indemnification provisions, as described below).
Holders must complete and deliver this Notice and Questionnaire in order to be named as selling
stockholders in the Prospectus. Holders of Registrable Securities who do not complete, execute and
return this Notice and Questionnaire within five (5) Trading Days following the date of the
Agreement (1) will not be named as selling stockholders in the Resale Registration Statement or the
Prospectus and (2) may not use the Prospectus for resales of Registrable Securities.

Certain legal consequences arise from being named as a selling stockholder in the Resale
Registration Statement and the Prospectus. Holders of Registrable Securities are advised to
consult their own securities law counsel regarding the consequences of being named or not named as
a selling stockholder in the Resale Registration Statement and the Prospectus.

NOTICE

The undersigned holder (the “Selling Stockholder”) of Registrable Securities hereby gives
notice to the Company of its intention to sell or otherwise dispose of Registrable Securities owned
by it and listed below in Item (3), unless otherwise specified in Item (3), pursuant to the Resale
Registration Statement. The undersigned, by signing and returning this Notice and Questionnaire,
understands and agrees that it will be bound by the terms and conditions of this Notice and
Questionnaire and the Agreement.

The undersigned hereby provides the following information to the Company and represents and
warrants that such information is accurate and complete:

QUESTIONNAIRE

	1.	 	Name.

	 	(a)	 	Full Legal Name of Selling Stockholder:

	 	(b)	 	Full Legal Name of Registered Holder (if not the same as (a) above) through
which Registrable Securities Listed in Item 3 below are held:

	 	(c)	 	Full Legal Name of Natural Control Person (which means a natural person who
directly or indirectly alone or with others has power to vote or dispose of the
securities covered by the questionnaire):

	2.	 	Address for Notices to Selling Stockholder:

	 
	Telephone:
	Fax:
	Contact Person:
	E-mail address of Contact Person:     

	3.	 	Beneficial Ownership of Registrable Securities Issuable Pursuant to the Purchase Agreement:

	 	(a)	 	Type and Number of Registrable Securities beneficially owned and issued
pursuant to the Agreement:

	 	(b)	 	Number of shares of Common Stock to be registered pursuant to this Notice for
resale:

	4.	 	Broker-Dealer Status:

	 	(a)	 	Are you a broker-dealer?

Yes No

(b) If “yes” to Section 4(a), did you receive your Registrable Securities as compensation
for investment banking services to the Company?

	 	 	 
	Note:

	 	Yes No

If no, the Commission’s staff has indicated that you should be

identified as an underwriter in the Registration Statement.

	 	(c)	 	Are you an affiliate of a broker-dealer?

	 	 	 
	Note:

	 	Yes No

If yes, provide a narrative explanation below:

	 	(c)	 	If you are an affiliate of a broker-dealer, do you certify that you bought the
Registrable Securities in the ordinary course of business, and at the time of the
purchase of the Registrable Securities to be resold, you had no agreements or
understandings, directly or indirectly, with any person to distribute the Registrable
Securities?

	 	 	 
	Note:

	 	Yes No

If no, the Commission’s staff has indicated that you should be

identified as an underwriter in the Registration Statement.

	5.	 	Beneficial Ownership of Other Securities of the Company Owned by the Selling Shareholder.

Except as set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable Securities
listed above in Item 3.

	 	(a)	 	Type and Amount of other securities beneficially owned:

	 	 	 	     

	 	 	 	     

6. Relationships with the Company:

Except as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity securities of the
undersigned) has held any position or office or has had any other material relationship with
the Company (or its predecessors or affiliates) during the past three years.

	 	 	 	State any exceptions here:

	7.	 	Plan of Distribution:

The undersigned has reviewed the form of Plan of Distribution attached as Annex A to the
Registration Rights Agreement, and hereby confirms that, except as set forth below, the
information contained therein regarding the undersigned and its plan of distribution is
correct and complete.

	 	 	 	State any exceptions here:

***********

The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the
information provided herein that may occur subsequent to the date hereof and prior to the effective
date of any applicable Resale Registration Statement. All notices hereunder and pursuant to the
Agreement shall be made in writing, by hand delivery, confirmed or facsimile transmission,
first-class mail or air courier guaranteeing overnight delivery at the address set forth below. In
the absence of any such notification, the Company shall be entitled to continue to rely on the
accuracy of the information in this Notice and Questionnaire.

By signing below, the undersigned consents to the disclosure of the information contained herein in
its answers to Items (1) through (7) above and the inclusion of such information in the Resale
Registration Statement and the Prospectus. The undersigned understands that such information will
be relied upon by the Company in connection with the preparation or amendment of any such
Registration Statement and the related prospectus.

By signing below, the undersigned acknowledges that it understands its obligation to comply, and
agrees that it will comply, with the provisions of the Exchange Act and the rules and regulations
thereunder, particularly Regulation M in connection with any offering of Registrable Securities
pursuant to the Resale Registration Statement. The undersigned also acknowledges that it
understands that the answers to this Questionnaire are furnished for use in connection with the
Registration Statement filed pursuant to the Registration Rights Agreement and any amendments or
supplements thereto filed with the Commission pursuant to the Securities Act.

The undersigned hereby acknowledges and is advised of the following Interpretation A.65 of the July
1997 SEC Manual of Publicly Available Telephone Interpretations regarding short selling:

“An Issuer filed a Form S-3 registration statement for a secondary offering of common stock which
is not yet effective. One of the selling shareholders wanted to do a short sale of common stock
“against the box” and cover the short sale with registered shares after the effective date. The
issuer was advised that the short sale could not be made before the registration statement become
effective, because the shares underlying the short sale are deemed to be sold at the time such sale
is made. There would, therefore, be a violation of Section 5 if the shares were effectively sold
prior to the effective date.”

By returning this Questionnaire, the undersigned will be deemed to be aware of the foregoing
interpretation.

I confirm that, to the best of my knowledge and belief, the foregoing statements (including without
limitation the answers to this Questionnaire) are correct.

IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Questionnaire to be
executed and delivered either in person or by its duly authorized agent.

	 	 	 	 	 
	Dated:

	 	Beneficial Owner:
	 	

	
 
	 	By:
	 	

	
 
	 	 	 	 
	
 
	 	 	 	Name:
	
 
	 	 	 	Title:

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL
BY OVERNIGHT MAIL, TO:

Jennifer E. Pardi

Canaccord Adams Inc.

99 High Street, 12th Floor

Boston, MA 02110

Tel: (617) 788-1554

Fax: (617) 371-3796

Email: jennifer.pardi@canaccordadams.com

5

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