Document:

Exhibit 4.8

 

UNDERWRITER’S PURCHASE OPTION

FOR THE PURCHASE OF 350,000 UNITS

OF

SHERMEN WSC ACQUISITION CORP.

1.             Purchase Option.

THIS CERTIFIES THAT, in consideration of $50 duly paid by CRT Capital
Group LLC (“CRT”), as registered owner of this Purchase Option, to Shermen WSC
Acquisition Corp. (“Company”), CRT is entitled, at any time or from time to
time upon the later of (i) the consummation of a Business Combination and (ii)
[one year from date of prospectus],
2008 (“Commencement Date”), and at or before 5:00 p.m., Eastern Time, [four years from date of prospectus], 2011
(“Expiration Date”), but not thereafter, to subscribe for, purchase and
receive, in whole or in part, up to Three Hundred Fifty Thousand (350,000)
units (“Units”) of the Company, each Unit consisting of one share of common
stock of the Company, par value $0.0001 per share (“Common Stock”), and two
warrants (“Warrant(s)”) expiring four years from the effective date (“Effective
Date”) of the registration statement on Form S-1 (“Registration Statement”)
pursuant to which Units are offered for sale to the public (the
“Offering”).  Each Warrant provides for
substantially identical terms as the warrants included in the Units being
registered for sale to the public by way of the Registration Statement (“Public
Warrants”), except that the Warrants have an exercise price of $6.25 per share,
subject to adjustment as provided in Section 6 hereof.  If the Expiration Date is a day on which
banking institutions are authorized by law to close, then this Purchase Option
may be exercised on the next succeeding day which is not such a day in
accordance with the terms herein.  During
the period ending on the Expiration Date, the Company agrees not to take any
action that would terminate the Purchase Option.  This Purchase Option is initially exercisable
at $7.50 per Unit so purchased; provided, however, that upon the
occurrence of any of the events specified in Section 6 hereof, the rights
granted by this Purchase Option, including the exercise price per Unit and the
number of Units (and shares of Common Stock and Warrants) to be received upon
such exercise, shall be adjusted as therein specified.  The term “Exercise Price” shall mean the
initial exercise price or the adjusted exercise price, depending on the context.

The term “Holder” shall mean as of any date, CRT and/or any transferee
who acquired the Purchase Option(s) in accordance with Section 3.1 hereof.

2.             Exercise.

2.1.          Exercise Form.  In order to exercise this Purchase Option,
the exercise form attached hereto as Exhibit A must be duly completed,
executed and delivered to the Company, together with this Purchase Option and
payment of the Exercise Price for the Units being purchased payable in cash or
by certified check or official bank check. 
If the subscription rights represented hereby have not been exercised at
or before 5:00 p.m., Eastern time, on the Expiration

 

 

Date, this
Purchase Option shall become and be void without further force or effect, and
all rights represented hereby shall cease and expire.

2.2.          Legend.  Each certificate for the securities purchased
under this Purchase Option shall bear a legend as follows unless such
securities have been registered under the Securities Act of 1933, as amended
(“Act”):

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (“ACT”) OR APPLICABLE STATE LAW.  THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE ACT AND APPLICABLE STATE LAW.”

2.3.          Cashless Exercise.

2.3.1.       Determination of
Amount.  In lieu of the payment of
the Exercise Price multiplied by the number of Units for which this Purchase Option
is exercisable (and in lieu of being entitled to receive Common Stock and
Warrants) in the manner required by Section 2.1, the Holder shall have the
right (but not the obligation) to convert any exercisable but unexercised
portion of this Purchase Option into Units (“Conversion Right”) as follows:
upon exercise of the Conversion Right, the Company shall deliver to the Holder
(without payment by the Holder of any of the Exercise Price in cash) that
number of shares of Common Stock and Warrants comprising that number of Units
equal to the quotient obtained by dividing (x) the “Value” (as defined below)
of the portion of the Purchase Option being converted by (y) the Current Market
Value (as defined below).  The “Value” of
the portion of the Purchase Option being converted shall equal the remainder
derived from subtracting (a) (i) the Exercise Price multiplied by (ii) the
number of Units underlying the portion of this Purchase Option being converted
from (b) the Current Market Value of a Unit multiplied by the number of Units
underlying the portion of the Purchase Option being converted.  As used herein, the term “Current Market
Value” per Unit at any date means the remainder derived from subtracting (x)
the exercise price of the Warrants multiplied by the number of shares of Common
Stock issuable upon exercise of the Warrants underlying one Unit from (y) (i)
the Current Market Price of the Common Stock multiplied by (ii) the number of
shares of Common Stock underlying one Unit, which shall include the shares of
Common Stock underlying the Warrants included in such Unit.  The “Current Market Price” of a share of
Common Stock shall mean (i) if the Common Stock is listed on a national
securities exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap Market
or NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange),
the average of the last sale prices of the Common Stock in the principal
trading market for the Common Stock as reported by the exchange, Nasdaq or the
NASD OTC Bulletin Board, as the case may be, for the five trading days prior to
exercise; (ii) if the Common Stock is not listed on a national securities
exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap Market or the
NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), but
is traded in the

 

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residual
over-the-counter market, the average closing bid price for the Common Stock for
the five trading days preceding the date in question for which such quotations
are reported by the Pink Sheets, LLC or a similar publisher of such quotations;
and (iii) if the fair market value of the Common Stock cannot be determined
pursuant to clause (i) or (ii) above, such price as the Board of Directors of
the Company shall determine, in good faith.

2.3.2.       Mechanics of
Conversion.  The Conversion Right may
be exercised by the Holder on any business day on or after the Commencement
Date and not later than the Expiration Date by delivering the Purchase Option
and the duly executed exercise form attached hereto with the conversion section
completed to the Company and specifying the total number of Units the Holder
will purchase pursuant to such Conversion Right.

2.3.3.       Warrant Exercise.  Any warrants underlying the Units shall be
issued pursuant to and subject to the terms set forth in the Warrant Agreement dated
as of [_________ __], 2007 (the "Warrant Agreement") between the
Company and Continental Stock Transfer & Trust Company (the "Warrant
Agent"). Without limiting the generality of the foregoing, the Company
shall not be obligated to deliver any shares of Common Stock pursuant to the
exercise of a Warrant underlying the Units and shall have no obligation to
settle a Warrant exercise unless a registration statement under the Securities
Act of 1933, as amended (the “Act”), with respect to the shares of Common Stock
is effective and a current Prospectus is on file with the Securities and
Exchange Commission (the “SEC”). In the event that a registration statement
with respect to the shares of Common Stock underlying a Warrant is not
effective under the Act or a current Prospectus is not on file with the SEC,
the holder of such Warrant shall not be entitled to exercise such Warrant.  Notwithstanding anything to the contrary in
this Agreement or the Warrant Agreement, under no circumstances will the
Company be required to net cash settle the Warrant exercise.  Warrants may not be exercised by, or shares
of Common Stock issued to, any registered holder in any state in which such
exercise or issuance would be unlawful. 
For the avoidance of doubt, as a result of this Section 2.3.3, any or
all of the Warrants underlying the Units may expire unexercised.  In no event shall the registered Holder of a
Unit or a Warrant be entitled to receive any monetary damages if the shares of
Common Stock underlying the Warrants have not been registered by the Company
pursuant to an effective registration statement or if a current prospectus is
available for delivery by the Warrant Agent, provided the Company has fulfilled
its obligation to use its best efforts to effect such registration and ensure a
current prospectus is available for delivery by the Warrant Agent, as provided
in the Warrant Agreement.

2.4           Limitation.  In no circumstances will the Company be
required to settle this Purchase Option exercise for cash.

3.             Transfer.

3.1.          General
Restrictions.  This Purchase Option
has been deemed compensation by the NASD and is therefore subject to a lock-up under
Rule 2710(g)(1) of the NASD Conduct Rules, pursuant to which such
securities may not be sold, transferred, assigned, pledged or hypothecated for
a period of 180 days immediately following the Effective Date. The
registered Holder of this Purchase Option, by its acceptance hereof, agrees
that it will not directly or indirectly sell, offer, contract or grant any
option to sell (including without limitation any short sale), transfer, assign,
pledge, hypothecate, establish an open “put equivalent position,” liquidate or
decrease a “call equivalent position” within the meaning of Rule 16a-1(h) under
the Securities Exchange Act of 1934, as amended, or otherwise dispose of, or
enter into any transaction which is designed to, or might reasonably be
expected to, result in the disposition of (“Transfer”) this Purchase Option for
a period of one year immediately following the Effective Date to anyone other
than (i) CRT or a selected dealer participating in the Offering, or (ii) a bona
fide officer or partner of CRT or a selected dealer.  On and after the first anniversary of the
Effective Date, Transfers of this Purchase Option to others may be made subject
to compliance with or exemptions from applicable securities laws.  In order to make any permitted assignment,
the Holder must deliver to the Company the assignment form attached hereto as Exhibit
B, duly executed and completed, together with the Purchase Option and
payment of all transfer taxes, if any, payable in connection therewith.  The Company shall, within five business days
of its receipt of such assignment, transfer this Purchase Option on the books
of the Company and shall execute and deliver a new Purchase Option or Purchase
Options of like tenor to the appropriate assignee(s) expressly evidencing the
right to purchase the aggregate number of Units purchasable hereunder or such
portion of such number as shall be contemplated by any such assignment.

3.2.          Restrictions
Imposed by the Act.  The securities
evidenced by this Purchase Option shall not be transferred unless and until (i)
the Company has received either (A) the opinion of counsel for the Holder that
the securities may be transferred pursuant to an exemption from registration
under the Act and applicable state securities laws, the availability of which
is established to the reasonable satisfaction of the Company (the Company
hereby agreeing that the opinion of Bingham McCutchen LLP shall be deemed
satisfactory evidence of the availability of an exemption), or (B) such other
evidence as the Company may request and that the Holder agrees to provide in
lieu of such opinion; or (ii) a registration statement or a post-effective
amendment to the Registration Statement relating to

 

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such securities
has been filed by the Company and declared effective by the SEC and compliance
with applicable state securities law has been established.

4.             New Purchase Options to be Issued

4.1.          Partial Exercise
or Transfer.  Subject to the
restrictions in Section 3 hereof, this Purchase Option may be exercised or
assigned in whole or in part.  In the
event of the exercise or assignment hereof in part only, upon surrender of this
Purchase Option for cancellation, together with the duly executed exercise or
assignment form and funds sufficient to pay any Exercise Price (except to the
extent the Holder elects to exercise this Purchase Option by means of a
cashless exercise as provided by Section 2.3) and/or transfer tax, the Company
shall cause to be delivered to the Holder without charge a new Purchase Option
of like tenor to this Purchase Option in the name of the Holder evidencing the
right of the Holder to purchase the number of Units purchasable hereunder as to
which this Purchase Option has not been exercised or assigned.

4.2.          Lost Certificate.  Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Purchase Option and of reasonably satisfactory indemnification or the posting
of a bond, the Company shall execute and deliver a new Purchase Option of like
tenor and date.  Any such new Purchase
Option executed and delivered as a result of such loss, theft, mutilation or
destruction shall constitute a substitute contractual obligation on the part of
the Company.

5.             Registration Rights.

5.1.          “Piggy-Back” Registration.

5.1.1.       Grant of Right.  The Holders of the Purchase Options shall
have the right for a period of seven years commencing on the Effective Date, to
include the Purchase Options, including the Units, Common Stock, the Warrants
and the Common Stock underlying the Warrants (the “Registrable Securities”) as
part of any other registration of securities filed by the Company, other than
in connection with a transaction contemplated by Rule 145(a) promulgated under
the Act or pursuant to Form S-8 (a “Piggy-Back Registration”).  The Company shall cause such Registrable
Securities to be included in such registration and shall use its commercially
reasonable efforts to cause the managing underwriter or underwriters of a proposed
underwritten offering to permit the Registrable Securities requested to be
included in a Piggy-Back Registration on the same terms and conditions as any
similar securities of the Company and to permit the sale or other disposition
of such Registrable Securities in accordance with the intended method(s) of
distribution thereof.  All holders of
Registrable Securities proposing to distribute their securities through a
Piggy-Back Registration that involves an underwriter or underwriters shall
enter into an underwriting agreement in customary form with the underwriter or
underwriters selected for such Piggy-Back Registration.

5.1.2.       Reduction of
Offering.  If the managing
underwriter or underwriters for a Piggy-Back Registration that is to be an
underwritten offering advises the Company and the Holders in writing that the
dollar amount or number of shares of Common Stock which the

 

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Company desires to
sell, taken together with shares of Common Stock, if any, as to which
registration has been demanded pursuant to written contractual arrangements
with persons other than the Holders of Registrable Securities hereunder, the
Registrable Securities as to which registration has been requested under this
Section 5.1, and the shares of Common Stock, if any, as to which
registration has been requested pursuant to the written contractual piggy-back
registration rights of other shareholders of the Company, exceeds the maximum
dollar amount or maximum number of shares that can be sold in such offering
without adversely affecting the proposed offering price, the timing, the
distribution method, or the probability of success of such offering (such
maximum dollar amount or maximum number of shares, as applicable, the “Maximum
Number of Shares”), then the Company shall include in any such registration.

(a)           If
the registration is undertaken for the Company’s account: (i) first, the
shares of Common Stock or other securities that the Company desires to sell
that can be sold without exceeding the Maximum Number of Shares;
(ii) second, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clause (i), the shares of Common Stock or other
securities, if any, comprised of Registrable Securities and the shares of
Common Stock or other securities registrable pursuant to the terms of the
Registration Rights Agreement between the Company and the initial investors in
the Company, dated as of
[                 ],
2007 (the “Registration Agreement” and such registrable securities, the “Investor
Securities”), as to which registration has been requested pursuant to the
applicable written contractual piggy-back registration rights of such security
holders, (pro rata in accordance with the number
of shares that each such security holder has requested be included in such
registration, regardless of the number of shares held by each such security
holder (such proportion is referred to hereto as “Pro Rata”)), that can be sold
without exceeding the Maximum Number of Shares; and (iii) third, to the
extent that the Maximum Number of shares has not been reached under the
foregoing clauses (i) and (ii), the shares of Common Stock or other
securities for the account of other persons that the Company is obligated to
register pursuant to written contractual piggy-back registration rights held by
other shareholders of the Company that can be sold without exceeding the
Maximum Number of Shares;

(b)           If
the registration is a “demand” registration undertaken at the demand of holders
of Investor Securities: (i) first, the shares of Common Stock or other
securities for the account of the demanding persons, Pro Rata, that can be sold
without exceeding the Maximum Number of Shares; (ii) second, to the extent
that the Maximum Number of Shares has not been reached under the foregoing
clause (i), the shares of Common Stock or other securities that the Company
desires to sell, that can be sold without exceeding the Maximum Number of
Shares; (iii) third, to the extent that the Maximum Number of Shares has
not been reached under the foregoing clause (i) and (ii), the Registrable
Securities as to which registration has been requested under this Section 5.2,
Pro Rata; and (iv) fourth, to the extent that the Maximum Number of Shares
has not been reached under the foregoing clauses (i), (ii) and (iii), the
shares of Common Stock or other securities for the account of other persons
that the Company is obligated to register pursuant to written contractual
piggy-back registration rights held by other shareholders of the Company that
can be sold without exceeding the Maximum Number of Shares; and

(c)           If
the registration is a “demand” registration undertaken at the demand of persons
other than the holders of Investor Securities: (i) first, the shares of
Common Stock or other securities for the account of the demanding persons that
can be sold without exceeding the Maximum Number of Shares; (ii) second,
to the extent that the Maximum Number of Shares has not been reached under the
foregoing clause (i), the shares of Common Stock or other securities that the
Company desires to sell and the shares of Common Stock or other securities
comprised of Registrable Securities and Investor Securities as to which
registration has been requested pursuant to the terms hereof and of the
Registration Rights Agreement (as applicable), Pro Rata, that can be sold
without exceeding the Maximum Number of Shares; and (iii) third, to the
extent that the Maximum Number of Shares has not been reached

 

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under the foregoing clauses (i) and (ii), the shares of Common Stock or
other securities for the account of other persons that the Company is obligated
to register pursuant to written contractual piggy-back registration rights held
by other shareholders of the Company that can be sold without exceeding the
Maximum Number of Shares.

5.1.3.       Terms.  The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, including the reasonable
expenses of any one legal counsel selected by the Holders to represent them in
connection with the sale of the Registrable Securities, but the Holders shall
pay any and all underwriting commissions related to the Registrable
Securities.  In the event of such a
proposed registration, the Company shall furnish the then Holders of
outstanding Registrable Securities with not less than fifteen days written
notice prior to the proposed date of filing of such registration
statement.  Such notice to the Holders
shall continue to be given for each applicable registration statement filed
(until the fifth anniversary of the Effective Date) by the Company until such
time as all of the Registrable Securities have been registered and sold.  The holders of the Registrable Securities
shall exercise the “piggy-back” rights provided for herein by giving written
notice, within ten days of the receipt of the Company’s notice of its intention
to file a registration statement.  The
Company shall cause any registration statement filed pursuant to the above
“piggyback” rights to remain effective for at least nine months from the date
that the Holders of the Registrable Securities are first given the opportunity
to sell all of such securities.

5.2.          Suspension of Use
of Effective Registration Statement. 
If a registration  statement
relating to the registration of Registrable Securities under this
Section 5 hereof has been declared effective (“Effective Registration
Statement”), subject to the good faith determination by the Board of Directors
of the Company that it is reasonably necessary to suspend the use of such
Effective Registration Statement or sales of Registrable Securities by Holders
under such Effective Registration Statement, the Company may, upon written
notice (the “Suspension Notice”) to the Holders, direct the Holders to suspend
the use of or sales under such Effective Registration Statement for a period
not to exceed thirty (30) days in any three (3) month period or ninety (90)
days in the aggregate in any twelve (12) month period, if any of the following
events (each, a “Suspension Event”) shall occur: negotiations relating to, or
the consummation of, a transaction or the occurrence of an event, in each case,
that (i) would require additional disclosure of material information by
the Company in such Effective Registration Statement or other public filings
and which has not been so disclosed, and (ii) either (x) as to which
the Company has a bona fide business purpose for preserving confidentiality, or
(y) that renders the Company unable to comply with SEC requirements, or
(z) that would make it unduly burdensome to promptly amend or supplement
such Effective Registration Statement on a post-effective basis, as
applicable.  Upon the occurrence of any
such Suspension Event, the Company shall use its reasonable best efforts to
take or cause to be taken such action as is necessary to permit resumed use of
such Effective Registration Statement promptly following the cessation of the
Suspension Event giving rise to such suspension so as to permit the Holders to
resume use of and sales under such Effective Registration Statement as soon as
practicable thereafter.  Upon cessation
of the Suspension Event giving rise to such suspension, the Company shall
provide the Holders with written notice within two (2) business days that
the Suspension Event has ceased (the “End of Suspension Notice”).  The Holders shall not effect any sales of the
Registrable Securities pursuant to such Effective Registration Statement at any
time after it has received a Suspension

 

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Notice from the
Company and prior to the receipt of an End of Suspension Notice (the
“Suspension Period”).  The Company shall
extend the effectiveness period of any registration statement by the number of
days of the Suspension Period, provided there are Registrable Securities
registered thereunder that have not been sold.

5.3.          General Terms.

5.3.1.       Indemnification.  The Company shall indemnify the Holder(s) of
the Registrable Securities to be sold pursuant to any registration statement
hereunder and each person, if any, who controls such Holders within the meaning
of Section 15 of the Act or Section 20(a) of the Securities Exchange Act of
1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or
liability (including all reasonable attorneys’ fees and other expenses
reasonably incurred in investigating, preparing or defending against
litigation, commenced or threatened, or any claim whatsoever whether arising
out of any action between the underwriter and the Company or between the underwriter
and any third party or otherwise) to which any of them may become subject under
the Act, the Exchange Act or otherwise, arising from such registration
statement but only to the same extent and with the same effect as the
provisions pursuant to which the Company has agreed to indemnify the
underwriters contained in Section 5 of the Underwriting Agreement (the
“Underwriting Agreement”) between the Company, CIBC World Markets Corp. and CRT
dated the Effective Date.  The Holder(s)
of the Registrable Securities to be sold pursuant to such registration
statement, and their successors and assigns, shall severally, and not jointly,
indemnify the Company, its officers and directors and each person, if any, who
controls the Company within the meaning of Section 15 of the Act or Section
20(a) of the Exchange Act, against all loss, claim, damage, expense or
liability (including all reasonable attorneys’ fees and other expenses
reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which they may become subject under the Act, the Exchange Act or
otherwise, arising from information furnished by or on behalf of such Holders,
or their successors or assigns, in writing, for specific inclusion in such
registration statement to the same extent and with the same effect as the
provisions contained in Section 5 of the Underwriting Agreement.

5.3.2.       Exercise of
Purchase Options.  Nothing contained
in this Purchase Option shall be construed as requiring the Holder(s) to
exercise their Purchase Options or Warrants underlying such Purchase Options
prior to or after the initial filing of any registration statement or the
effectiveness thereof.

5.3.3.       Documents
Delivered to Holders.  The Company
shall furnish CRT, as representative of the Holders participating in any of the
foregoing offerings, a signed counterpart, addressed to the participating
Holders, of (i) an opinion of counsel to the Company, dated the effective date
of such registration statement (and, if such registration includes an
underwritten public offering, an opinion dated the date of the closing under
any underwriting agreement related thereto), and (ii) a “cold comfort” letter
dated the effective date of such registration statement (and, if such
registration includes an underwritten public offering, a letter dated the date
of the closing under the underwriting agreement) signed by the independent
public accountants who have issued a report on the Company’s financial
statements included in such registration statement, in each case covering
substantially the same matters with respect to such registration statement (and
the prospectus included therein) and, in the case of such accountants’

 

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letter, with
respect to events subsequent to the date of such financial statements, as are
customarily covered in opinions of issuer’s counsel and in accountants’ letters
delivered to underwriters in underwritten public offerings of securities.  The Company shall also deliver promptly to
CRT, as representative of the Holders participating in the offering, the
correspondence and memoranda described below and copies of all correspondence
between the SEC or its staff and the Company, its counsel or auditors and
permit CRT, as representative of the Holders, to do such investigation, upon
reasonable advance notice, with respect to information contained in or omitted
from the registration statement as it deems reasonably necessary to comply with
applicable securities laws or rules of the NASD.  Such investigation shall include access to
books, records and properties and opportunities to discuss the business of the
Company with its officers and independent auditors, all to such reasonable
extent and at such reasonable times as CRT, as representative of the Holders,
shall reasonably request.  The Company
shall not be required to disclose any confidential information or other records
to CRT, as representative of the Holders, or to any other person, unless and
until such persons shall have entered into reasonable confidentiality
agreements (in form and substance reasonably satisfactory to the Company), with
the Company with respect thereto.

5.3.4.       Underwriting
Agreement.  The Company shall enter
into an underwriting agreement with the managing underwriter(s), if any,
selected by any Holders whose Registrable Securities are being registered
pursuant to this Section 5, which managing underwriter shall be reasonably
acceptable to the Company.  Such
agreement shall be reasonably satisfactory in form and substance to the
Company, each Holder and such managing underwriters, and shall contain such
representations, warranties and covenants by the Company and such other terms
as are customarily contained in agreements of that type used by the managing
underwriter.  The Holders shall be
parties to any underwriting agreement relating to an underwritten sale of their
Registrable Securities and may, at their option, require that any or all of the
representations, warranties and covenants of the Company to or for the benefit
of such underwriters shall also be made to and for the benefit of such
Holders.  Such Holders shall not be
required to make any representations or warranties to or agreements with the
Company or the underwriters except as they may relate to such Holders, information
regarding such Holders and their intended methods of distribution.  Such Holders, however, shall agree to such
covenants and indemnification and contribution obligations for selling
shareholders as are customarily contained in agreements of that type used by
the managing underwriter.  Further, such
Holders shall execute appropriate powers of attorney and custody agreements as
the underwriters shall reasonably determine are necessary in connection with
the offering and otherwise cooperate fully in the preparation of the
registration statement and other documents relating to any offering in which
they include securities pursuant to this Section 5.  Each Holder shall also furnish to the Company
such information regarding itself, the Registrable Securities held by it, and
the intended method of disposition of such securities as shall be reasonably
required to effect the registration of the Registrable Securities.

5.3.5.       Rule 144 Sale.  Notwithstanding anything contained in this
Section 5 to the contrary, the Company shall have no obligation pursuant to
Section 5.1 for the registration of Registrable Securities held by any Holder
(i) where such Holder would then be entitled to sell under Rule 144 promulgated
under the Act (“Rule 144”) within any three-month period (or such other period
prescribed under Rule 144 as may be provided by amendment thereof) all of the

 

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Registrable
Securities then held by such Holder, and (ii) where the number of Registrable
Securities held by such Holder is within the volume limitations under paragraph
(e) of Rule 144 (calculated as if such Holder were an affiliate within the
meaning of Rule 144).

5.3.6.       Supplemental
Prospectus.  Each Holder agrees, that
upon receipt of any notice from the Company of the happening of any event as a
result of which the prospectus included in the Registration Statement, as then
in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing, such Holder
will immediately discontinue disposition of Registrable Securities pursuant to
the Registration Statement covering such Registrable Securities until such
Holder’s receipt of the copies of a supplemental or amended prospectus, and, if
so desired by the Company, such Holder shall deliver to the Company (at the
expense of the Company) or destroy (and deliver to the Company a certificate of
such destruction) all copies, other than permanent file copies then in such
Holder’s possession, of the prospectus covering such Registrable Securities
current at the time of receipt of such notice.

5.3.7.       Holder Obligations.  No Holder may participate in any underwritten
offering pursuant to this Section 5 unless such Holder (i) agrees to sell only
the Holder’s Registrable Securities on the basis reasonably provided in any
underwriting agreement, and (ii) completes, executes and delivers any and all
questionnaires, powers of attorney, custody agreements, indemnities,
underwriting agreements and other documents reasonably and customarily required
by or under the terms of any underwriting agreement.

6.             Adjustments.

6.1.          Adjustments to
Exercise Price and Number of Securities. 
The Exercise Price and the number of Units underlying the Purchase
Option shall be subject to adjustment from time to time as hereinafter set
forth:

6.1.1.       Stock Dividends -
Split-Ups.  If after the date hereof,
and subject to the provisions of Section 6.4 below, the number of outstanding
shares of Common Stock is increased by a stock dividend payable in shares of
Common Stock or by a split-up of shares of Common Stock or other similar event,
then, on the effective date thereof, the number of shares of Common Stock
underlying each of the Units purchasable hereunder shall be increased in
proportion to such increase in outstanding shares.  In such case, the number of shares of Common
Stock, and the exercise price applicable thereto, underlying the Warrants
underlying each of the Units purchasable hereunder shall be adjusted in
accordance with the terms of the Warrants. 
For example, if the Company declares a two-for-one stock dividend and at
the time of such dividend this Purchase Option is for the purchase of one Unit
at $7.50 per whole Unit (the Warrants underlying the Units are exercisable for
$6.25 per share), upon effectiveness of the dividend, this Purchase Option will
be adjusted to allow for the purchase of one Unit at $7.50 per Unit, each Unit
entitling the holder to receive two shares of Common Stock and two Warrants
(each Warrant exercisable for two shares of Common Stock at $3.13 per share).

6.1.2.       Aggregation of
Shares.  If after the date hereof,
and subject to the provisions of Section 6.4, the number of outstanding shares
of Common Stock is decreased by a

 

9

 

consolidation,
combination or reclassification of shares of Common Stock or other similar
event, then, on the effective date thereof, the number of shares of Common
Stock underlying each of the Units purchasable hereunder shall be decreased in
proportion to such decrease in outstanding shares.  In such case, the number of shares of Common
Stock, and the exercise price applicable thereto, underlying the Warrants
underlying each of the Units purchasable hereunder shall be adjusted in
accordance with the terms of the Warrants.

6.1.3.       Replacement of
Securities upon Reorganization, etc. 
In case of any reclassification or reorganization of the outstanding
shares of Common Stock other than a change covered by Section 6.1.1 or 6.1.2
hereof or that solely affects the par value of such shares of Common Stock, or
in the case of any merger or consolidation of the Company with or into another
corporation (other than a consolidation or merger in which the Company is the
continuing corporation and that does not result in any reclassification or
reorganization of the outstanding shares of Common Stock), or in the case of
any sale or conveyance to another corporation or entity of the property of the
Company as an entirety or substantially as an entirety in connection with which
the Company is dissolved, the Holder of this Purchase Option shall have the
right thereafter (until the expiration of the right of exercise of this
Purchase Option) to receive upon the exercise hereof, for the same aggregate
Exercise Price payable hereunder immediately prior to such event, the kind and
amount of shares of stock or other securities or property (including cash) receivable
upon such reclassification, reorganization, merger or consolidation, or upon a
dissolution following any such sale or transfer, by a Holder of the number of
shares of Common Stock of the Company obtainable upon exercise of this Purchase
Option and the underlying Warrants immediately prior to such event; and if any
reclassification also results in a change in shares of Common Stock covered by
Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections
6.1.1, 6.1.2 and this Section 6.1.3.  The
provisions of this Section 6.1.3 shall similarly apply to successive
reclassifications, reorganizations, mergers or consolidations, sales or other
transfers.

6.1.4.       Changes in Form of
Purchase Option.  This form of
Purchase Option need not be changed because of any change pursuant to this
Section, and Purchase Options issued after such change may state the same
Exercise Price and the same number of Units as are stated in the Purchase
Options initially issued pursuant to this Agreement.  The acceptance by any Holder of the issuance
of new Purchase Options reflecting a required or permissive change shall not be
deemed to waive any rights to an adjustment occurring after the Commencement
Date or the computation thereof.

6.2.          Substitute
Purchase Option.  In case of any
consolidation of the Company with, or merger of the Company with, or merger of
the Company into, another corporation (other than a consolidation or merger
which does not result in any reclassification or change of the outstanding
Common Stock), the corporation formed by such consolidation or merger shall
execute and deliver to the Holder a supplemental Purchase Option providing that
the holder of each Purchase Option then outstanding or to be outstanding shall
have the right thereafter (until the stated expiration of such Purchase Option)
to receive, upon exercise of such Purchase Option, the kind and amount of
shares of stock and other securities and property receivable upon such
consolidation or merger, by a holder of the number of shares of Common Stock of
the Company for which such Purchase Option might have been exercised
immediately prior to such

 

10

 

consolidation,
merger, sale or transfer.  Such
supplemental Purchase Option shall provide for adjustments which shall be
identical to the adjustments provided in Section 6.  The above provision of this Section shall
similarly apply to successive consolidations or mergers.

6.3.          Elimination of
Fractional Interests.  The Company
shall not be required to issue certificates representing fractions of shares of
Common Stock or Warrants upon the exercise of the Purchase Option, nor shall it
be required to issue scrip or pay cash in lieu of any fractional interests, it
being the intent of the parties that all fractional interests shall be
eliminated by rounding any fraction up to the nearest whole number of Warrants,
shares of Common Stock or other securities, properties or rights.

7.             Reservation and Listing.

The Company shall at all times reserve and keep available out of its
authorized shares of Common Stock, solely for the purpose of issuance upon
exercise of the Purchase Option or the Warrants underlying the Purchase Option,
such number of shares of Common Stock or other securities, properties or rights
as shall be issuable upon the exercise thereof. 
The Company covenants and agrees that, upon exercise of the Purchase
Option and payment of the Exercise Price therefor, all shares of Common Stock
and other securities issuable upon such exercise shall be duly and validly
issued, fully paid and non-assessable and not subject to preemptive rights of
any shareholder.  The Company further
covenants and agrees that upon exercise of the Warrants underlying the Purchase
Option and payment of the respective Warrant exercise price therefor, all
shares of Common Stock and other securities issuable upon such exercise shall
be duly and validly issued, fully paid and non-assessable and not subject to
preemptive rights of any shareholder.  As
long as the Purchase Option shall be outstanding, the Company shall use its
commercially reasonable efforts to cause all (i) Units and shares of Common
Stock issuable upon exercise of the Purchase Option, (ii) Warrants issuable
upon exercise of the Purchase Option and (iii) shares of Common Stock issuable
upon exercise of the Warrants included in the Units issuable upon exercise of
the Purchase Option to be listed (subject to official notice of issuance) on
the securities exchanges (or, if applicable on the Nasdaq National Market, SmallCap
Market, OTC Bulletin Board or any successor trading market) on which the Units,
the Common Stock or the Public Warrants issued to the public in connection with
the Offering may then be listed and/or quoted.

8.             Certain Notice Requirements.

8.1.          Holder’s Right to
Receive Notice.  Nothing herein shall
be construed as conferring upon the Holders the right to vote or consent as a
shareholder for the election of directors or any other matter, or as having any
rights whatsoever as a shareholder of the Company.  If, however, at any time prior to the
expiration of the Purchase Option and their exercise, any of the events
described in Section 8.2 shall occur, then, in one or more of said events, the
Company shall give written notice of such event at least fifteen days prior to
the date fixed as a record date or the date of closing the transfer books for
the determination of the shareholders entitled to such dividend, distribution,
conversion or exchange of securities or subscription rights, or entitled to vote
on such proposed dissolution, liquidation, winding up or sale.  Such notice shall specify such record date or
the date of the closing of the transfer books, as the case may be.  Notwithstanding the foregoing, the Company
shall deliver to each Holder a

 

11

 

copy of each
notice given to the other shareholders of the Company at the same time and in
the same manner that such notice is given to the shareholders.

8.2.          Events Requiring
Notice.  The Company shall be required
to give the notice described in this Section 8 upon one or more of the
following events: (i) if the Company shall take a record of the holders of its
shares of Common Stock for the purpose of entitling them to receive a dividend
or distribution payable otherwise than in cash, or a cash dividend or
distribution payable otherwise than out of retained earnings, as indicated by
the accounting treatment of such dividend or distribution on the books of the
Company, or (ii) the Company shall offer to all the holders of its Common Stock
any additional shares of capital stock of the Company or securities convertible
into or exchangeable for shares of capital stock of the Company, or any option,
right or warrant to subscribe therefor, or (iii) a dissolution, liquidation or
winding up of the Company (other than in connection with a consolidation or
merger) or a sale of all or substantially all of its property, assets and
business shall be proposed.

8.3.          Notice of Change
in Exercise Price.  The Company
shall, promptly after an event requiring a change in the Exercise Price
pursuant to Section 6 hereof, send notice to the Holders of such event and
change (“Price Notice”).  The Price
Notice shall describe the event causing the change and the method of
calculating same and shall be certified as being true and accurate by the
Company’s Chief Executive Officer and Chief Financial Officer.

8.4.          Transmittal of
Notices.  All notices, requests,
consents and other communications under this Purchase Option shall be in writing
and shall be deemed to have been duly made when hand delivered, or mailed by
express mail or private courier service: (i) If to the registered Holder of the
Purchase Option, to the address of such Holder as shown on the books of the
Company, or (ii) if to the Company, to the following address or to such other
address as the Company may designate by notice to the Holders:

Sherman WSC Acquisition
Corp.

c/o The Sherman Group

1251 Avenue of the Americas

Suite 900

New York, NY 10020

Attn:  Francis P. Jenkins, Jr.

Fax No.:  (212) 300-0200

9.             Miscellaneous.

9.1.          Amendments.  The Company and CRT may from time to time
supplement or amend this Purchase Option without the approval of any of the
Holders in order to cure any ambiguity, to correct or supplement any provision
contained herein that may be defective or inconsistent with any other
provisions herein, or to make any other provisions in regard to matters or
questions arising hereunder that the Company and CRT may deem necessary or
desirable and that the Company and CRT deem shall not adversely affect the
interest of the Holders.  All other
modifications or amendments shall require the written consent of and be signed
by the party against whom enforcement of the modification or amendment is
sought.

 

12

 

9.2.          Headings.  The headings contained herein are for the
sole purpose of convenience of reference, and shall not in any way limit or
affect the meaning or interpretation of any of the terms or provisions of this
Purchase Option.

10.           Entire Agreement.

This Purchase Option (together with the other agreements and documents
being delivered pursuant to or in connection with this Purchase Option)
constitutes the entire agreement of the parties hereto with respect to the subject
matter hereof, and supersedes all prior agreements and understandings of the
parties, oral and written, with respect to the subject matter hereof.

10.1.        Binding Effect.  This Purchase Option shall inure solely to
the benefit of and shall be binding upon, the Holder and the Company and their
permitted assignees, respective successors, legal representative and assigns,
and no other person shall have or be construed to have any legal or equitable
right, remedy or claim under or in respect of or by virtue of this Purchase
Option or any provisions herein contained.

10.2.        Governing Law;
Submission to Jurisdiction.  This
Purchase Option shall be governed by and construed and enforced in accordance
with the laws of the State of New York without giving effect to conflict of
laws.  The Company hereby agrees that any
action, proceeding or claim against it arising out of, or relating in any way
to this Purchase Option shall be brought and enforced in the courts of the
State of New York or of the United States of America for the Southern District
of New York, and irrevocably submits to such jurisdiction, which jurisdiction
shall be exclusive.  The Company hereby
waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenient forum.  Any
process or summons to be served upon the Company may be served by transmitting
a copy thereof by registered or certified mail, return receipt requested,
postage prepaid, addressed to it at the address set forth in Section 8 hereof.  Such mailing shall be deemed personal service
and shall be legal and binding upon the Company in any action, proceeding or
claim.  The Company and the Holder agree
that the prevailing party(ies) in any such action shall be entitled to recover
from the other party(ies) all of its reasonable attorneys’ fees and expenses
relating to such action or proceeding and/or incurred in connection with the
preparation therefor.

10.3.        Waiver.  The failure of the Company or the Holder to
at any time enforce any of the provisions of this Purchase Option shall not be
deemed or construed to be a waiver of any such provision, nor to in any way
affect the validity of this Purchase Option or any provision hereof or the
right of the Company or any Holder to thereafter enforce each and every provision
of this Purchase Option.  No waiver of
any breach, non-compliance or non-fulfillment of any of the provisions of this
Purchase Option shall be effective unless set forth in a written instrument
executed by the party or parties against whom or which enforcement of such
waiver is sought; and no waiver of any such breach, non-compliance or
non-fulfillment shall be construed or deemed to be a waiver of any other or
subsequent breach, non-compliance or non-fulfillment.

10.4.        Execution in
Counterparts.  This Purchase Option
may be executed in one or more counterparts, and by the different parties
hereto in separate counterparts, each of which shall be deemed to be an
original, but all of which taken together shall constitute one and the same

 

13

 

agreement, and
shall become effective when one or more counterparts has been signed by each of
the parties hereto and delivered to each of the other parties hereto.

10.5.        Exchange Agreement.  As a condition of the Holder’s receipt and
acceptance of this Purchase Option, Holder agrees that, at any time prior to
the complete exercise of this Purchase Option by Holder, if the Company and CRT
enter into an agreement (“Exchange Agreement”) pursuant to which they agree
that all outstanding Purchase Options will be exchanged for securities or cash
or a combination of both, then Holder shall agree to such exchange and become a
party to the Exchange Agreement.

[Signature page follows]

 

14

 

IN WITNESS WHEREOF, the Company has caused this Purchase Option to be
signed by its duly authorized officer as of the ___ day of ________, 2007.

	
   

  	
  SHERMEN WSC ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  

 

15

 

Exhibit A

Form
to be used to exercise Purchase Option:

Shermen
WSC Acquisition Corp.

c/o The Sherman Group

1251 Avenue of the Americas,

Suite 900

New York, NY 10020

Date:
                         

The undersigned hereby elects irrevocably to exercise all or a portion
of the within Purchase Option and to purchase               
Units of Shermen WSC Acquisition Corp. and hereby makes payment of $            
(at the rate of $          
per Unit) in payment of the Exercise Price pursuant thereto.  Please issue the Common Stock and Warrants as
to which this Purchase Option is exercised in accordance with the instructions
given below.

or

The undersigned hereby elects irrevocably to convert its right to
purchase            
Units purchasable under the within Purchase Option by surrender of the
unexercised portion of the attached Purchase Option (with a “Value” based of $           
based on a “Market Price” of $          ).  Please issue the securities comprising the
Units as to which this Purchase Option is exercised in accordance with the
instructions given below.

	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guaranteed

  

 

INSTRUCTIONS
FOR REGISTRATION OF SECURITIES

 

 

 

	
  Name

  	
   

  	
   

  
	
  (Print
  in Block Letters)

  
	
   

  
	
  Address

  	
   

  
	
   

  
	
   

  
				

 

Ex.
A-1

 

NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS
WRITTEN UPON THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A
BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING
MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

 

Ex. A-2

 

Exhibit B

Form
to be used to assign Purchase Option:

ASSIGNMENT

(To
be executed by the registered Holder to effect a transfer of the within
Purchase Option):

FOR VALUE RECEIVED,                                        
does hereby sell, assign and transfer unto                                  
the right to purchase                 
Units of Shermen WSC Acquisition Corp. (“Company”) evidenced by the within
Purchase Option and does hereby authorize the Company to transfer such right on
the books of the Company.

Dated:
                          
, 20      

	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guaranteed

  

 

NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS
WRITTEN UPON THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A
BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING
MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

 

Ex. B-1Exhibit 10.9

 

INVESTMENT
MANAGEMENT TRUST AGREEMENT

 

This Agreement is made as
of
                      ,
2007 by and between Shermen WSC Acquisition Corp. (the “Company”) and
Continental Stock Transfer & Trust Company (“Trustee”).

 

WHEREAS, the Company’s
registration statement on Form S-1, No. 333-133869, as amended from
time to time (“Registration Statement”), for its initial public offering of
securities (“IPO”) has been declared effective as of the date hereof
(“Effective Date”) by the Securities and Exchange Commission (capitalized terms
used herein and not otherwise defined shall have the meanings set forth in the
Registration Statement); and

 

WHEREAS, CRT Capital
Group LLC (“CRT”) and CIBC World Markets Corp. (“CIBC”) are acting as the representatives
of the underwriters in the IPO (CRT and CIBC, collectively, the “Underwriters”);
and

 

WHEREAS, as described in
the Registration Statement, and in accordance with the Company’s Amended and
Restated Certificate of Incorporation, $119,400,000 of the gross proceeds of
the IPO and sale of the Founder Warrants (as defined in the Registration
Statement) will be delivered to the Trustee to be deposited and held in a trust
account for the benefit of the Company and the holders of the Company’s common
stock, par value $.0001 per share, issued in the IPO as hereinafter provided
and in the event the Units are registered in Colorado, pursuant to
Section 11-51-302(6) of the Colorado Revised Statutes (the amount to
be delivered to the Trustee will be referred to herein as the “Property,” the
stockholders for whose benefit the Trustee shall hold the Property will be
referred to as the “Public Stockholders,” and the Public Stockholders and the
Company will be referred to together as the “Beneficiaries”); and

 

WHEREAS, CRT has agreed
to deposit in the Trust Account (as defined below) a portion of the Property
equal to $4,800,000 (or $5,520,000 if the Underwriters’ over-allotment option
is exercised in full) attributable to the Underwriters’ discount that will
become payable by the Company to the Underwriters upon the consummation of a
Business Combination (as defined in the Registration Statement); and

 

WHEREAS, the Company and
the Trustee desire to enter into this Agreement to set forth the terms and
conditions pursuant to which the Trustee shall hold the Property;

 

IT IS AGREED:

 

1.                                      
Agreements and
Covenants of Trustee.
The Trustee hereby agrees and covenants to:

 

(a)                                 
Hold the Property in
trust for the Beneficiaries in accordance with the terms of this Agreement,
including the terms of Section 11-51-302(6) of the Colorado Statute,
in a segregated trust account (“Trust Account”) established by the Trustee;

 

(b)                                
Manage, supervise and
administer the Trust Account subject to the terms and conditions set forth
herein;

 

 

(c)                                 
In a timely manner,
upon the instruction of the Company, to invest and reinvest the Property in
(i) any “Government Security,” which shall mean any Treasury Bill issued
by the United States government, having a maturity of 180 days or less; or
(ii) any open ended investment company registered under the Investment
Company Act of 1940 selected by the Company that holds itself out as a money
market fund and bears the highest (AAA) credit rating issued by a United States
nationally recognized rating agency such as Standard & Poor’s
Corporation or Moody’s Investor Services, as determined by the Company;

 

(d)                                
Collect and receive,
when due, all principal and income arising from the Property, which shall
become part of the “Property,” as such term is used herein;

 

(e)                                 
Notify the Company of
all communications received by it with respect to any Property requiring action
by the Company;

 

(f)                                   
Supply any necessary
information or documents as may be requested by the Company in connection
with the Company’s preparation of the tax returns for the Trust Account;

 

(g)                                
Participate in any
plan or proceeding for protecting or enforcing any right or interest arising
from the Property if, as and when instructed by the Company to do so;

 

(h)                                
Render to the Company
and to the Underwriters, and to such other person as the Company
may instruct, monthly written statements of the activities of and amounts
in the Trust Account reflecting all receipts and disbursements of the Trust
Account; and

 

(i)                                    
Commence liquidation
of the Trust Account only after and promptly after receipt of, and only in
accordance with, the terms of a letter (“Termination Letter”), in a
form substantially similar to that attached hereto as either
Exhibit A or Exhibit B, signed on behalf of the Company by its
President or Chairman of the Board and Secretary or Assistant Secretary and
affirmed by its entire Board of Directors, and complete the liquidation of the
Trust Account and distribute the Property in the Trust Account only as directed
in the Termination Letter and the other documents referred to therein;
provided, however, that in the event that a Termination Letter has not been
received by the Trustee by the 18-month anniversary of the closing (“Closing”)
of the IPO (“First Date”), or the 24-month anniversary of the Closing (“Last
Date”) in the event that (i) a letter of intent, agreement in principle or
definitive agreement for a Business Combination has been executed on or prior
to the First Date but the Business Combination has not been consummated by the
First Date and (ii) the Company has complied with
Section 3(e) hereof prior to the First Date, the Trust Account shall
be liquidated in accordance with the procedures set forth in the Termination
Letter attached as Exhibit B hereto and distributed to the stockholders of
record on the record date established by the Company for such purpose. The
Company shall set the record date to be within ten days of the First Date or
the Last Date in the event that (i) a letter of intent, agreement in
principle or definitive agreement has been executed on or prior to the First
Date in connection with a Business Combination that has not been consummated by
the First Date and (ii) the Company has complied with
Section 3(e) hereof prior to the First Date, or as soon thereafter as
is reasonably practicable and legally permissible. In all cases, the Trustee
shall provide the Underwriters with a copy of any Termination Letters and/or
any other correspondence that it receives with respect to any proposed
withdrawal from

 

2

 

 

the Trust Account promptly after it receives same. The
provisions of this Section 1(i) may not be modified, amended or
deleted under any circumstances.

 

2.                                      
Limited
Distributions of Income from Trust Account.

 

(a)                                 
Upon written request
from the Company, which may be given from time to time in a
form substantially similar to that attached hereto as Exhibit C, the
Trustee shall distribute to the Company the amount requested by the Company to
cover any income or franchise tax obligation owed by the Company.

 

(b)                                
Upon written request
from the Company, which will be given monthly in a form substantially
similar to that attached hereto as Exhibit D, the Trustee shall distribute
to the Company an amount equal to one half of the income collected on the
Property through the last day of the month immediately preceding the date of
receipt of the Company’s request to cover expenses related to investigating and
selecting a target business and other working capital requirements; provided,
however, that the aggregate amount of all such distributions shall not exceed
$1,500,000. The first such distribution shall be for the month ending on
[                 ],
2007, with the Company’s request made after such date.

 

(c)                                 
The limited
distributions referred to in Sections 2(a) and 2(b) above shall be
made only from income collected on the Property. Except as provided in Sections
2(a) and 2(b) above, no other distributions from the Trust Account
shall be permitted except in accordance with Section 1(i) hereof.

 

(d)                                
It is understood that
the Trustee’s only responsibility under this Section 2 is to follow the
instructions of the Company.

 

3.                                      
Agreements and
Covenants of the Company. The Company hereby agrees and covenants to:

 

(a)                                 
Give all instructions
to the Trustee hereunder in writing, signed by the Company’s Chairman of the
Board or President. In addition, except with respect to its duties under
paragraphs 1(i), 2(a) and 2(b) above, the Trustee shall be entitled
to rely on, and shall be protected in relying on, any verbal or telephonic
advice or instruction which it in good faith believes to be given by any one of
the persons authorized above to give written instructions, provided that the
Company shall promptly confirm such instructions in writing;

 

(b)                                
Hold the Trustee
harmless and indemnify the Trustee from and against any and all expenses,
including reasonable counsel fees and disbursements, or loss suffered by the
Trustee in connection with any action, suit or other proceeding brought against
the Trustee involving any claim, or in connection with any claim or demand
which in any way arises out of or relates to this Agreement, the services of
the Trustee hereunder, or the Property or any income earned from investment of
the Property, except for expenses and losses resulting from the Trustee’s gross
negligence or willful misconduct. Promptly after the receipt by the Trustee of
notice of demand or claim or the commencement of any action, suit or
proceeding, pursuant to which the Trustee intends to seek indemnification under
this paragraph, it shall notify the Company in writing of such claim
(hereinafter referred to as the “Indemnified Claim”). The Trustee shall have
the right to conduct and manage the defense against such Indemnified Claim,

 

 

3

 

provided that the Trustee shall obtain the consent of
the Company with respect to the selection of counsel, which consent shall not
be unreasonably withheld. The Trustee may not agree to settle any
Indemnified Claim without the prior written consent of the Company unless such
settlement includes a full release of the Company with respect to such Indemnified
Claim. The Company may participate in such action with its own counsel;

 

(c)                                 
Pay the Trustee an
initial acceptance fee, an annual fee and a transaction fee for each
disbursement made pursuant to Sections 2(a), 2(b) and 2(c) as set
forth on Schedule A hereto. It is expressly understood that the Property
shall not be used to pay such fees and further agreed that said transaction
processing fees shall be deducted by the Trustee from the disbursements made to
the Company pursuant to Section 2 hereof. The Company shall pay the
Trustee the initial acceptance fee and first year’s fee at the consummation of
the IPO and thereafter on the anniversary of the Effective Date. The Trustee
shall refund to the Company the annual fee (on a pro rata basis) with respect
to any period after the liquidation of the Trust Fund. The Company shall not be
responsible for any other fees or charges of the Trustee except as set forth in
this Section 3(c) and as may be provided in Section 3(b) hereof
(it being expressly understood that the Property shall not be used to make any
payments to the Trustee under such Sections);

 

(d)                                
Provide to the
Trustee any letter of intent, agreement in principle or definitive agreement
for a Business Combination that is executed on or prior to the First Date; and

 

(e)                                 
In connection with
any vote of the Company’s stockholders regarding a Business Combination,
provide to the Trustee an affidavit or certificate of a firm regularly engaged
in the business of soliciting proxies and/or tabulating stockholder votes
(which firm may be the Trustee) verifying the vote of the Company’s
stockholders regarding such Business Combination.

 

4.                                      
Limitations of
Liability. The
Trustee shall have no responsibility or liability to:

 

(a)                                 
Take any action with
respect to the Property, other than as directed in paragraph 1 hereof and the
Trustee shall have no liability to any party except for liability arising out
of its own gross negligence or willful misconduct;

 

(b)                                
Institute any
proceeding for the collection of any principal and income arising from, or
institute, appear in or defend any proceeding of any kind with respect to, any
of the Property unless and until it shall have received instructions from the
Company given as provided herein to do so and the Company shall have advanced
or guaranteed to it funds sufficient to pay any expenses incident thereto;

 

(c)                                 
Change the investment
of any Property, other than in compliance with paragraph 1(c) hereof;

 

(d)                                
Refund any
depreciation in principal of any Property;

 

(e)                                 
Assume that the
authority of any person designated by the Company to give instructions
hereunder shall not be continuing unless provided otherwise in such

 

 

4

 

designation, or unless the Company shall have
delivered a written revocation of such authority to the Trustee;

 

(f)                                   
The other parties
hereto or to anyone else for any action taken or omitted by it, or any action
suffered by it to be taken or omitted, in good faith and in the exercise of its
own best judgment, except for its gross negligence or willful misconduct. The
Trustee may rely conclusively and shall be protected in acting upon any
order, notice, demand, certificate, opinion or advice of counsel (including
counsel chosen by the Trustee), statement, instrument, report or other paper or
document (not only as to its due execution and the validity and effectiveness
of its provisions, but also as to the truth and acceptability of any
information therein contained) which is believed by the Trustee, in good faith,
to be genuine and to be signed or presented by the proper person or persons.
The Trustee shall not be bound by any notice or demand, or any waiver,
modification, termination or rescission of this Agreement or any of the terms
hereof, unless evidenced by a written instrument delivered to the Trustee
signed by the proper party or parties and, if the duties or rights of the
Trustee are affected, unless it shall give its prior written consent thereto;

 

(g)                                
Verify the
correctness of the information set forth in the Registration Statement or to
confirm or assure that any acquisition made by the Company or any other action
taken by it is as contemplated by the Registration Statement;

 

(h)                                
File information
returns with the United States Internal Revenue Service and payee statements
with the Company, documenting the taxes payable by the Company, if any,
relating to interest earned on the Property; and

 

(i)                                    
Verify calculations,
qualify or otherwise approve Company requests for distributions pursuant to
Section 2(a), 2(b) and 2(c) above.

 

5.                                      
Trust Account
Waiver. The
Trustee has no right, title, interest, or claim of any kind (“Claim”) in or to
any monies in the Trust Account, and hereby waives any Claim in or to any
monies in the Trust Account it may have in the future, and hereby agrees
not to seek recourse, reimbursement, payment or satisfaction for any Claim
against the Trust Account for any reason whatsoever.

 

6.                                      
Termination. This Agreement shall terminate as
follows:

 

(a)                                 
If the Trustee gives
written notice to the Company that it desires to resign under this Agreement,
the Company shall use its reasonable efforts to locate a successor trustee. At
such time that the Company notifies the Trustee that a successor trustee has
been appointed by the Company and has agreed to become subject to the terms of
this Agreement, the Trustee shall transfer the management of the Trust Account
to the successor trustee, including but not limited to the transfer of copies
of the reports and statements relating to the Trust Account, whereupon this
Agreement shall terminate; provided, however, that, in the event that the
Company does not locate a successor trustee within ninety days of receipt of
the resignation notice from the Trustee, the Trustee may submit an
application to have the Property deposited with any court in the State of New
York or with the United States District Court for the Southern

 

 

5

 

District of New York and upon such deposit, the
Trustee shall be immune from any liability whatsoever; or

 

(b)                                
At such time that the
Trustee has completed the liquidation of the Trust Account in accordance with
the provisions of paragraph 1(i) hereof, and distributed the Property in
accordance with the provisions of the Termination Letter, this Agreement shall
terminate except with respect to Paragraph 3(b).

 

7.                                      
Miscellaneous.

 

(a)                                 
The Company and the
Trustee each acknowledge that the Trustee will follow the security procedures
set forth below with respect to funds transferred from the Trust Account. Upon
receipt of written instructions, the Trustee will confirm such instructions
with an Authorized Individual at an Authorized Telephone Number listed on the
attached Exhibit E. The Company and the Trustee will each restrict access
to confidential information relating to such security procedures to authorized
persons. Each party must notify the other party immediately if it has reason to
believe unauthorized persons may have obtained access to such information,
or of any change in its authorized personnel. In executing funds transfers, the
Trustee will rely upon account numbers or other identifying numbers of a
beneficiary, beneficiary’s bank or intermediary bank, rather than names. The
Trustee shall not be liable for any loss, liability or expense resulting from
any error in an account number or other identifying number, provided it has accurately
transmitted the numbers provided.

 

(b)                                
This Agreement shall
be governed by and construed and enforced in accordance with the laws of the
State of New York, without giving effect to conflicts of law principles that
would result in the application of the substantive laws of another
jurisdiction. It may be executed in several original or facsimile
counterparts, each one of which shall constitute an original, and together
shall constitute but one instrument.

 

(c)                                 
This Agreement
contains the entire agreement and understanding of the parties hereto with
respect to the subject matter hereof. Except for Section 1(i) (which
may not be amended under any circumstances), this Agreement or any provision
hereof may only be changed, amended or modified by a writing signed by
each of the parties hereto; provided, however, that no such change, amendment
or modification may be made without the prior written consent of the
Underwriters. As to any claim, cross-claim or counterclaim in any way relating
to this Agreement, each party waives the right to trial by jury.

 

(d)                                
The parties hereto
consent to the jurisdiction and venue of any state or federal court located in
the City of New York, Borough of Manhattan, for purposes of resolving any
disputes hereunder.

 

(e)                                 
Any notice, consent
or request to be given in connection with any of the terms or provisions of
this Agreement shall be in writing and shall be sent by express mail or similar
private courier service, by certified mail (return receipt requested), by hand
delivery or by facsimile transmission:

 

if to the Trustee, to:

 

 

6

 

Continental Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

Attn:                   
Steven G. Nelson

Fax No.:  (212) 509-5150

 

if to the Company, to:

 

Shermen WSC Acquisition Corp.

c/o The Shermen Group

1251 Avenue of the Americas

Suite 900

New York, NY 10020

Attn:                   
Francis P.
Jenkins, Jr.

Fax No.:  (212) 332-2475

 

in either case with a copy to:

 

CRT Capital Group LLC

262 Harbor Drive

Stamford, Connecticut  06902

Attn:                   
Michiel McCarty

Fax No.:  (203) 569-6883

 

and

 

Bingham McCutchen LLP

399 Park Avenue

New York, NY 10022

Floyd Wittlin, Esq.

Fax No.:  (212) 702-3625

 

and

 

Dechert LLP

30 Rockefeller Plaza

New York, New York  10112

Attention:  Gerald Adler, Esq.

Fax No.:  (212) 698-0479

 

(f)                                   
This Agreement
may not be assigned by the Trustee without the prior consent of the
Company.

 

(g)                                
Each of the Trustee
and the Company hereby represents that it has the full right and power, and has
been duly authorized to enter into this Agreement and to perform its
respective obligations as contemplated hereunder. The Trustee acknowledges and
agrees that it

 

 

7

 

shall not make any claims or proceed against the Trust
Account, including by way of set-off, and shall not be entitled to any funds in
the Trust Account under any circumstance.

 

(h)                                
Each of the Company
and the Trustee hereby acknowledges that the Underwriters are third party
beneficiaries of this Agreement.

 

 

8

 

IN WITNESS WHEREOF, the
parties have duly executed this Investment Management Trust Agreement as of the
date first written above.

 

	
   

  	
  CONTINENTAL STOCK TRANSFER &
  TRUST

  COMPANY, as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SHERMEN WSC ACQUISITION
  CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Francis P.
  Jenkins, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Chairman and Chief
  Executive Officer

  

 

 

9

 

EXHIBIT A

 

[Letterhead
of Company]

[Insert
date]

 

Continental Stock Transfer

  & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven G. Nelson

 

Re:                              
Trust Account
No. [              ]
— Termination Letter

 

Gentlemen:

 

Pursuant to paragraph
1(i) of the Investment Management Trust Agreement between Shermen WSC
Acquisition Corp. (“Company”) and Continental Stock Transfer & Trust
Company (“Trustee”), dated as of
              ,
2006 (“Trust Agreement”), this is to advise you that the Company has entered
into an agreement (“Business Agreement”) with
                          
(“Target Business”) to consummate a business combination with Target Business
(“Business Combination”) on or about [insert date]. The Company shall notify
you at least 48 hours in advance of the actual date of the consummation of the
Business Combination (“Consummation Date”).

 

In accordance with the
terms of the Trust Agreement, we hereby authorize you to commence liquidation
of the Trust Account to the effect that, on the Consummation Date, all of funds
held in the Trust Account will be immediately available for transfer to the
account or accounts that the Company shall direct on the Consummation Date.

 

On the Consummation Date
(i) counsel for the Company shall deliver to you written notification that
(a) the Business Combination has been consummated and (b) if
applicable, the provisions of Section 11-51-302(6) and Rule 51-3.4
of the Colorado Statute have been met, and (ii) the Company shall deliver
to you (a) [an affidavit] [a certificate] of
                           ,
which verifies the vote of the Company’s stockholders in connection with the
Business Combination and (b) written instructions with respect to the
transfer of the funds held in the Trust Account (“Instruction Letter”). You are
hereby directed and authorized to transfer the funds held in the Trust Account
immediately upon your receipt of the counsel’s letter and the Instruction
Letter, in accordance with the terms of the Instruction Letter. In the event
that certain deposits held in the Trust Account may not be liquidated by
the Consummation Date without penalty, you will notify the Company of the same
and the Company shall direct you as to whether such funds should remain in the
Trust Account and be distributed after the Consummation Date to the Company.
Upon the distribution of all the funds in the Trust Account pursuant to the
terms hereof, the Trust Agreement shall be terminated.

 

In the event that the
Business Combination is not consummated on the Consummation Date described in
the notice thereof and we have not notified you on or before the original
Consummation Date of a new Consummation Date, then the funds held in the Trust

 

 

Account shall be reinvested as provided in the Trust
Agreement on the business day immediately following the Consummation Date as
set forth in the notice.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  SHERMEN WSC ACQUISITION
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Francis P.
  Jenkins, Jr.,

  
	
   

  	
   

  	
  Chairman and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
                          ,
  Secretary

  

 

cc:                                
CRT Capital Group
LLC.

 

 

EXHIBIT B

 

[Letterhead
of Company]

[Insert
date]

 

Continental Stock Transfer

  & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven G. Nelson

 

Re:                              
Trust Account
No. [              ]
— Termination Letter

 

Gentlemen:

 

Pursuant to paragraph
1(i) of the Investment Management Trust Agreement between Shermen WSC
Acquisition Corp. (“Company”) and Continental Stock Transfer & Trust
Company (“Trustee”), dated as of
                     ,
2006 (“Trust Agreement”), this is to advise you that the Company has been
unable to effect a Business Combination with a Target Company within the time
frame specified in the Company’s Certificate of Incorporation, as described in
the Company’s prospectus relating to its IPO.

 

In accordance with the
terms of the Trust Agreement, we hereby (a) certify to you that, if
applicable, the provisions of Section 11-51-302(6) and
Rule 51-3.4 of the Colorado Statute have been met and (b) authorize
you, to commence liquidation of the Trust Account. The Company will establish a
record date for the purposes of determining the stockholders entitled to
receive their share of liquidation proceeds. The record date shall be within
ten (10) days of the date of this letter or as soon thereafter as is
reasonably practicable and legally permissible. You will notify the Company in
writing as to when all of the funds in the Trust Account will be available for
immediate transfer (“Transfer Date”) in accordance with the terms of the Trust
Agreement and the Amended and Restated Certificate of Incorporation of the Company.
You shall commence distribution of such funds in accordance with the terms of
the Trust Agreement and the Amended and Restated Certificate of Incorporation
of the Company and you shall oversee the distribution of the funds. Upon the
distribution of all the funds in the Trust Account, your obligations under the
Trust Agreement shall be terminated.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  SHERMEN WSC ACQUISITION
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Francis P.
  Jenkins, Jr.,

  
	
   

  	
   

  	
  Chairman and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
                          ,
  Secretary

  

 

cc:                                
CRT Capital Group LLC

 

 

EXHIBIT C

 

[Letterhead
of Company]

[Insert
date]

 

Continental Stock Transfer

  & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven G. Nelson

 

Re:                              
Trust Account
No. [              ]
— Distribution of Income on Property

 

Gentlemen:

 

Pursuant to paragraph
2(a) of the Investment Management Trust Agreement between Shermen WSC
Acquisition Corp. (“Company”) and Continental Stock Transfer & Trust
Company (“Trustee”), dated as of
               ,
2006 (“Trust Agreement”), this is to advise you that the Company hereby
requests that you deliver to the Company
$               
of the income earned on the Property as of the date hereof. The Company needs
such funds to pay for the tax obligations as set forth on the attached tax
return or tax statement. In accordance with the terms of the Trust Agreement,
you are hereby directed and authorized to transfer (via wire transfer) such
funds promptly upon your receipt of this letter to the Company’s operating
account at:

 

[WIRE INSTRUCTION INFORMATION]

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  SHERMEN WSC ACQUISITION
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Francis P.
  Jenkins, Jr.,

  
	
   

  	
   

  	
  Chairman and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
                          ,
  Secretary

  

 

cc:                                
CRT Capital Group LLC

 

 

EXHIBIT D

 

[Letterhead
of Company]

[Insert
date]

 

Continental Stock Transfer

  & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven G. Nelson

 

Re:                              
Trust Account
No. [              ]
— Distribution of Income on Property

 

Gentlemen:

 

Pursuant to paragraph
2(b) of the Investment Management Trust Agreement between Shermen WSC
Acquisition Corp. (“Company”) and Continental Stock Transfer & Trust
Company (“Trustee”), dated as of
                   ,
2006 (“Trust Agreement”), this is to advise you that the Company hereby
requests that you deliver to the Company
$            of the
income earned on the Property as of the date hereof. The Company needs such
funds to cover its expenses relating to investigating and selecting a target
business and other working capital requirements. In accordance with the terms
of the Trust Agreement, you are hereby directed and authorized to transfer (via
wire transfer) such funds promptly upon your receipt of this letter to the
Company’s operating account at:

 

[WIRE INSTRUCTION INFORMATION]

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  SHERMEN WSC ACQUISITION
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Francis P.
  Jenkins, Jr.,

  
	
   

  	
   

  	
  Chairman and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
                          ,
  Secretary

  

 

cc:                                
CRT Capital Group LLC

 

 

EXHIBIT E

 

	
  AUTHORIZED
  INDIVIDUAL(S)

  FOR TELEPHONE CALL BACK

  	
   

  	
  AUTHORIZED

  TELEPHONE NUMBER(S)

  
	
   

  	
   

  	
   

  
	
  Company:

  

  Shermen WSC Acquisition Corp.

  c/o The Shermen Group

  1251 Avenue of the Americas

  Suite 900

  New York, NY 10020

  Attn:Francis P. Jenkins, Jr.

  	
   

  	
  

  

  

  (212) 300-0020

  
	
   

  	
   

  	
   

  
	
  Trustee:

  

  Continental Stock Transfer

   & Trust Company

  17 Battery Place

  New York, New York 10004

  Attn: Steven G. Nelson, Chairman

  	
   

  	
  

  

  

  (212) 845-3200

  

 

 

SCHEDULE A

 

Schedule of fees pursuant to
Section 3(c) of Investment Management Trust Agreement

between
                            and

Continental Stock Transfer & Trust Company

 

	
  Fee
  Item

  	
   

  	
  Time
  and method of

  payment

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial acceptance fee

  	
   

  	
  Initial closing of IPO
  by wire transfer

  	
   

  	
  $

  	
  1,000

  	
   

  
	
  Annual fee

  	
   

  	
  First year, initial
  closing of IPO by wire transfer; thereafter on the anniversary of the
  effective date of the IPO by wire transfer or check

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Transaction processing
  fee for disbursements to Company under

  Sections 2(a), 2(b) and 2(c)

  	
   

  	
  Deduction by Trustee
  from disbursement made to Company under Section 2

  	
   

  	
  $

  	
  250

  	
   

  

 

	
   

  	
  Agreed:

  	
   

  
	
  Dated:
                  ,
  2007

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Continental Stock
  Transfer & Trust Co.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

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