Document:

Exhibit 4.6

 

FOUNDER
WARRANT AGREEMENT

This Agreement (the “Agreement”) is made as of [                    ],
2007 between Shermen WSC Acquisition Corp., a Delaware corporation, with
offices at c/o The Shermen Group, 1251 Avenue of the Americas, Suite 900, New
York, New York  10020 (“Company”),
and Continental Stock Transfer & Trust Company, a New York corporation,
with offices at 17 Battery Place, New York, New York 10004 (“Warrant Agent”).

WHEREAS, the Company is engaged in a public offering (“Public
Offering”) of Units (“Units”), each Unit consisting of one share of
common stock, par value $.0001 per share, of the Company (“Common Stock”)
and two warrants (the “Unit Warrants”) and each Unit Warrant entitling
the holder thereof to purchase one share of Common Stock for $5.00 on the terms
and subject to the conditions set forth in that certain Warrant Agreement dated
the date hereof by and between the Company and Continental Stock Transfer &
Trust Company, as the agent of the Company in connection with the issuance,
registration, transfer, exchange, redemption and exercise of the Unit Warrants
(the “Unit Warrant
Agreement”), and

WHEREAS, the Company has filed with the Securities and
Exchange Commission a Registration Statement, No. 333-133869 on Form S-1 (“Registration
Statement”) for the registration, under the Securities Act of 1933, as
amended (“Act”), of, among other securities, the Unit Warrants and the
Common Stock issuable upon exercise of the Unit Warrants; and

WHEREAS, in connection with the Public Offering, the
Company has agreed to issue and deliver 5,214,286 Warrants (the “Founder
Warrants”) to Shermen WSC Holding LLC pursuant to the terms of that certain
Founder Warrant Purchase Agreement (the “Founder Warrant Purchase Agreement”),
dated as of [                 ],
2007, between the Company and Shermen WSC Holding LLC; and

WHEREAS, the Company desires the Warrant Agent to act
on behalf of the Company, and the Warrant Agent is willing to so act, in
connection with the issuance, registration, transfer, exchange, redemption and
exercise of the Founder Warrants; and

WHEREAS, the Company desires to provide for the form
and provisions of the Founder Warrants, the terms upon which they shall be
issued and exercised, and the respective rights, limitation of rights, and
immunities of the Company, the Warrant Agent, and the holders of the Founder
Warrants; and

WHEREAS, all acts and things have been done and
performed which are necessary to make the Founder Warrants, when executed on
behalf of the Company and countersigned by or on behalf of the Warrant Agent,
as provided herein, the valid, binding and legal obligations of the Company,
and to authorize the execution and delivery of this Agreement.

NOW, THEREFORE, in consideration of the mutual
agreements herein contained, the parties hereto agree as follows:

1.             Appointment
of Warrant Agent.  The Company hereby
appoints the Warrant Agent to act as agent for the Company for the Founder
Warrants, and the Warrant Agent hereby accepts such 

 

 

appointment and agrees to perform the same in
accordance with the terms and conditions set forth in this Agreement.

2.             Founder Warrants.

2.1.          Form of Founder Warrant.  Each Founder Warrant shall be issued in
registered form only, shall be in substantially the form of Exhibit A
hereto (the “Warrant Certificate”), the provisions of which are
incorporated herein and shall be signed by, or bear the facsimile signature of,
the Chairman of the Board, the Chief Executive Officer, the Chief Operating
Officer or President and Secretary or Assistant Secretary of the Company and
shall bear a facsimile of the Company’s seal. 
In the event the person whose facsimile signature has been placed upon
any Warrant Certificate shall have ceased to serve in the capacity in which
such person signed the Warrant Certificate before such Warrant Certificate is
issued, it may be issued with the same effect as if he or she had not ceased to
be such at the date of issuance.

2.2.          Effect of Countersignature.  The Warrant Certificates will be executed on
behalf of the Company as provided above and delivered to the Warrant
Agent.  The Warrant Certificates will
then be countersigned by the Warrant Agent. 
Unless and until countersigned by the Warrant Agent pursuant to this
Agreement, a Warrant Certificate shall be invalid and of no effect and may not
be exercised by the holder thereof.

2.3.          Registration.

2.3.1.       Founder Warrant Register.  The Warrant Agent shall maintain books (“Founder
Warrant Register”), for the registration of original issuance and the registration
of transfer of the Founder Warrants. 
Upon the initial issuance of the Founder Warrants, the Warrant Agent
shall issue and register the Founder Warrants in the names of the respective
holders thereof in such denominations and otherwise in accordance with instructions
delivered to the Warrant Agent by the Company.

2.3.2.       Registered Holder.  Prior to due presentment for registration of
transfer of any Warrant Certificate, the Company and the Warrant Agent may deem
and treat the person in whose name such Warrant Certificate shall be registered
upon the Founder Warrant Register (“registered holder”), as the absolute
owner of such Warrant Certificate and of each Founder Warrant represented
thereby (notwithstanding any notation of ownership or other writing on the Warrant
Certificate made by anyone other than the Company or the Warrant Agent), for
the purpose of any exercise thereof, and for all other purposes, and neither
the Company nor the Warrant Agent shall be affected by any notice to the
contrary.

3.             Terms and Exercise of Founder Warrants.

3.1.          Warrant Price.  Each Warrant Certificate shall, when
countersigned by the Warrant Agent, entitle the registered holder thereof,
subject to the provisions of such Warrant Certificate, this Agreement and of the
Founder Warrant Purchase Agreement, to purchase from the Company the number of
shares of Common Stock stated therein, at the price of $5.00 per whole share,
subject to the adjustments provided in Section 4 hereof and in the last
sentence of this Section 3.1.  The term “Warrant
Price” as used in this Agreement refers to the price per share at which
Common Stock may be purchased at the time a Founder Warrant is exercised.  

 

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The Company in its sole discretion may lower the
Warrant Price at any time prior to the Expiration Date so long as the Warrant
Price is not less than the “Warrant Price” under and as defined in the Unit
Warrant Agreement.

3.2.          Duration of Founder Warrants.  A Founder Warrant may be exercised only
during the period (“Exercise Period”) commencing on the later of (a) the
consummation of an acquisition by the Company through a merger, capital stock
exchange, asset acquisition, stock purchase or other similar business
combination, of an operating business (“Business Combination”) (as
described more fully in the Company’s Registration Statement) and (b) [one year from date of prospectus], 2008 and terminating at
5:00 p.m., New York City time on the earlier to occur of (x) [four years from date of prospectus], 2011 and (y) the date
fixed for redemption of the Founder Warrants as provided in Section 6 of this
Agreement (“Expiration Date”). 
Except with respect to the right to receive the Redemption Price (as set
forth in Section 6 hereunder), each Founder Warrant not exercised on or before
the Expiration Date shall become void, and all rights thereunder and all rights
in respect thereof under this Agreement shall cease at the close of business on
the Expiration Date.  The Company in its
sole discretion may extend the duration of the Founder Warrants by delaying the
Expiration Date.

3.3.          Exercise of Founder Warrants.

3.3.1.       Payment.  Subject to the provisions of the Warrant Certificate,
this Agreement and the Founder Warrant Purchase Agreement, a Warrant Certificate,
when countersigned by the Warrant Agent, may be exercised by the registered
holder thereof by surrendering it, at the office of the Warrant Agent, or at
the office of its successor as Warrant Agent, in the Borough of Manhattan, City
and State of New York, with the subscription form, as set forth in the Warrant
Certificate, duly executed, and by paying in full, in lawful money of the
United States, in cash, good certified check or good bank draft payable to the
order of the Company (or as otherwise agreed to by the Company), the Warrant
Price for each full share of Common Stock as to which the Founder Warrant is
exercised and any and all applicable taxes due in connection with the exercise
of the Founder Warrant, the exchange of the Founder Warrant for the Common
Stock, and the issuance of the Common Stock.

                In addition, if
the Company calls the outstanding Warrants and the Founder Warrants for
redemption as provided in Section 6 hereof, the holder of the Founder Warrants
may exercise the Founder Warrants on a cashless basis.  Any Shares issued on the exercise of the
Founder Warrants and transferred to the Company as payment of the Warrant Price
shall be valued according each such Shares’ Fair Market Value or, if the Shares
are then publicly traded in a Liquid Public Market, the average of the closing
prices for the thirty (30) consecutive trading days preceding the date of
exercise of the Founder Warrants.

                As used herein,
the term “Fair Market Value” shall mean, with respect to a share of
Common Stock on any date: (a) the fair market value of the outstanding Common
Stock based upon an arm’s length sale of the Company on such date as an
entirety, such sale being between a willing buyer and a willing seller and
determined without reference to any discount for minority interest,
restrictions on transfer, disparate voting rights among classes of capital stock
of the Company or lack of marketability with respect to capital stock of the
Company divided by (b) 

 

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the aggregate number of the outstanding shares of Common Stock
(calculated on a fully diluted basis). 
The Fair Market Value shall be determined by the Company’s Board of
Directors in good faith within ten (10) days of any event for which such
determination is required and such determination (including the basis therefor)
shall be promptly provided to the holder of the Founder Warrants.  Such determination shall be binding on the
holder of the Founder Warrants unless the holder of the Founder Warrants objects
thereto in writing within ten (10) Business Days of receipt.  In the event the Company and the holder of
the Founder Warrants cannot agree on the Fair Market Value within ten (10) Business
Days of the date of the objection of the holder of the Founder Warrants, the
Fair Market Value shall be determined by a disinterested appraiser (which may
be a national or regional investment bank or national accounting firm) mutually
selected by the Company and the holder of the Founder Warrants, the fees and
expenses of which shall be paid by the Company unless such determination
results in a fair market value within ten percent (10%) of the fair market
value initially determined by the Company, in which case such fees and expenses
shall be borne by the holder of the Founder Warrants.  Any selection of a disinterested appraiser
shall be made in good faith within seven (7) Business Days after the end of the
last ten (10) Business Day period referred to above and any determination of
Fair Market Value by a disinterested appraiser shall be made within forty-five
(45) days of the date of selection.

                As used herein,
the term “Business Day” shall mean any day that is not a Saturday or
Sunday and is not a United States federal holiday or a day on which banking
institutions generally are authorized or obligated by law or regulation to
close in New York City.

                As used herein,
the term “Liquid Public Market” shall mean that the shares of Common
Stock are listed on the New York Stock Exchange, The American Stock Exchange,
The NASDAQ National Market System or the Over-The-Counter Bulletin Board, and
that trading of such shares has occurred on each of the prior thirty (30)
trading days, and that the average weekly trading volume of such shares is in
excess of one percent (1%) of the outstanding shares of such Common Stock.

3.3.2.       Issuance of Certificates.  As soon as practicable after the exercise of any
Founder Warrant and the clearance of the funds or the acceptance of shares of
Common Stock in payment of the Warrant Price, the Company shall issue to the
registered holder of such Founder Warrant a certificate or certificates for the
number of full shares of Common Stock to which he, she or it is entitled,
registered in such name or names as may be directed by him, her or it, and if such
Founder Warrant shall not have been exercised in full, a new countersigned Warrant
Certificate for the number of shares as to which such Founder Warrant shall not
have been exercised.  Notwithstanding the
foregoing, the Company shall not be obligated to deliver any securities
pursuant to the exercise of a Founder Warrant unless a registration statement
under the Act with respect to the Common Stock is effective.  Founder Warrants may not be exercised by, or
securities issued to, any registered holder in any state in which such exercise
would be unlawful.

3.3.3.       Valid Issuance.  All shares of Common Stock issued upon the
proper exercise of a Founder Warrant in conformity with this Agreement shall be
validly issued, fully paid and nonassessable.

 

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3.3.4.       Date of Issuance.  Each person in whose name any such
certificate for shares of Common Stock is issued shall for all purposes be
deemed to have become the holder of record of such shares on the date on which
the Founder Warrant was surrendered and payment of the Warrant Price was made,
irrespective of the date of delivery of such certificate, except that, if the
date of such surrender and payment is a date when the stock transfer books of
the Company are closed, such person shall be deemed to have become the holder
of such shares at the close of business on the next succeeding date on which
the stock transfer books are open.

4.             Adjustments.

4.1.          Stock Dividends - Split-Ups.  If, after the date hereof, and subject to the
provisions of Section 4.6 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 of such stock dividend, split-up or similar event, the number of
shares of Common Stock issuable on exercise of each Founder Warrant shall be
increased in proportion to such increase in outstanding shares of Common Stock.

4.2.          Aggregation of Shares.  If, after the date hereof, and subject to the
provisions of Section 4.6, the number of outstanding shares of Common Stock is
decreased by a consolidation, combination, reverse stock split or
reclassification of shares of Common Stock or other similar event, then, on the
effective date of such consolidation, combination, reverse stock split,
reclassification or similar event, the number of shares of Common Stock
issuable on exercise of each Founder Warrant shall be decreased in proportion
to such decrease in outstanding shares of Common Stock.

4.3.          Adjustments in Exercise Price.  Whenever the number of shares of Common Stock
purchasable upon the exercise of the Founder Warrants is adjusted, as provided
in Section 4.1 or 4.2 above, the Warrant Price shall be adjusted (to the
nearest cent) by multiplying such Warrant Price immediately prior to such
adjustment by a fraction (x) the numerator of which shall be the number of
shares of Common Stock purchasable upon the exercise of the Founder Warrants immediately
prior to such adjustment, and (y) the denominator of which shall be the number
of shares of Common Stock so purchasable immediately thereafter.

4.4.          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 4.1 or 4.2 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 assets or other property of
the Company as an entirety or substantially as an entirety in connection with
which the Company is dissolved, the Founder Warrant holder shall thereafter
have the right to purchase and receive, upon the basis and upon the terms and
conditions specified in the Founder Warrants and in lieu of the shares of
Common Stock of the Company immediately theretofore purchasable and receivable
upon the exercise of the rights represented thereby, the kind and amount of
shares of stock or other securities or 

 

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property (including cash) receivable upon such
reclassification, reorganization, merger or consolidation, or upon a
dissolution following any such sale or transfer, that the Founder Warrant
holder would have received if such Founder Warrant holder had exercised his,
her or its Founder Warrant(s) immediately prior to such event; and if any
reclassification also results in a change in shares of Common Stock covered by
Section 4.1 or 4.2, then such adjustment shall be made pursuant to Sections
4.1, 4.2 and 4.3 and this Section 4.4. 
The provisions of this Section 4.4 shall similarly apply to successive
reclassifications, reorganizations, mergers or consolidations, sales or other
transfers.

4.5.          Notices of Changes in Founder
Warrant.  Upon every adjustment of
the Warrant Price or the number of shares issuable upon exercise of a Founder
Warrant, the Company shall give written notice thereof to the Warrant Agent,
which notice shall state the Warrant Price resulting from such adjustment and
the increase or decrease, if any, in the number of shares purchasable at such
price upon the exercise of a Founder Warrant, setting forth in reasonable
detail the method of calculation and the facts upon which such calculation is
based.  Upon the occurrence of any event
specified in Section 4.1, 4.2, 4.3 or 4.4, then, in any such event, the Company
shall give written notice to the Founder Warrant holder, at the last address
set forth for such holder in the Founder Warrant Register, of the record date
or the effective date of the event. 
Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such event.

4.6.          No Fractional Shares.  Notwithstanding any provision contained in
this Agreement to the contrary, the Company shall not issue fractional shares
upon exercise of Founder Warrants.  If,
by reason of any adjustment made pursuant to this Section 4, the holder of any
Founder Warrant would be entitled, upon the exercise of such Founder Warrant,
to receive a fractional interest in a share, the Company shall, upon such
exercise, round up to the nearest whole number the number of the shares of
Common Stock to be issued to the Founder Warrant holder.

4.7.          Form of Founder Warrant.  The form of Warrant Certificate need not be
changed because of any adjustment pursuant to this Section 4, and Warrant
Certificates issued after such adjustment may state the same Warrant Price and
the same number of shares as are stated in the Warrant Certificates initially
issued pursuant to this Agreement. 
However, the Company may at any time in its sole discretion make any
change in the form of Warrant Certificate that the Company may deem appropriate
and that does not affect the substance thereof, and any Warrant Certificate thereafter
issued or countersigned, whether in exchange or substitution for an outstanding
Warrant Certificate or otherwise, may be in the form as so changed.

5.             Transfer
and Exchange of Founder Warrants.

5.1.          Registration of Transfer.  The Warrant Agent shall register the
transfer, from time to time, of any outstanding Warrant Certificate upon the Founder
Warrant Register, upon surrender of such Warrant Certificate for transfer,
properly endorsed with signatures properly guaranteed and accompanied by
appropriate instructions for transfer. 
Upon any such transfer, a new Warrant Certificate representing an equal
aggregate number of Founder Warrants shall be issued and the Warrant Certificate
shall be cancelled by the Warrant Agent. 
The Warrant 

 

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Certificates so cancelled shall be delivered by the
Warrant Agent to the Company from time to time upon request.

5.2.          Procedure for Surrender of Founder
Warrants.  Warrant Certificates may
be surrendered to the Warrant Agent, together with a written request for
exchange or transfer, and thereupon the Warrant Agent shall issue in exchange
therefor one or more new Warrant Certificates as requested by the registered
holder of the Warrant Certificates so surrendered, representing an equal
aggregate number of Founder Warrants; provided, however, that in the event that
a Warrant Certificate surrendered for transfer bears a restrictive legend, the
Warrant Agent shall not cancel such Warrant Certificate and issue new Warrant
Certificates in exchange therefor until the Warrant Agent has received an
opinion of counsel for the Company stating that such transfer may be made and
indicating whether the new Warrant Certificates must also bear a restrictive
legend.

5.3.          Fractional Founder Warrants.  The Warrant Agent shall not be required to
effect any registration of transfer or exchange which will result in the
issuance of a Warrant Certificate for a fraction of a Founder Warrant.

5.4.          Service Charges.  No service charge shall be made for any
exchange or registration of transfer of Founder Warrants.

5.5.          Founder Warrant Execution and
Countersignature.  The Warrant Agent
is hereby authorized to countersign and to deliver, in accordance with the
terms of this Agreement, the Founder Warrants required to be issued pursuant to
the provisions of this Section 5, and the Company, whenever required by the
Warrant Agent, will supply the Warrant Agent with Founder Warrants duly
executed on behalf of the Company for such purpose.

6.             Redemption.

6.1.          Redemption.  Subject to Section 6.4 hereof, not less than
all of the outstanding Founder Warrants and Warrants may be redeemed, at the
option of the Company, at any time after they become exercisable and prior to
their expiration, at the office of the Warrant Agent, upon the notice referred
to in Section 6.2, at the price of $.01 per Founder Warrant or Warrant, as
applicable (“Redemption Price”), provided that the last sales price of
the Common Stock has been at least $8.50 per share, for any twenty (20) trading
days within a thirty (30) consecutive trading day period ending on the third
business day prior to the date on which notice of redemption is given.

6.2.          Date Fixed for, and Notice of,
Redemption.  In the event the Company
shall elect to redeem all of the outstanding Founder Warrants and Warrants, the
Company shall fix a date for the redemption. 
Notice of redemption shall be mailed by first class mail, postage
prepaid, by the Company not less than 30 days prior to the date fixed for
redemption to the registered holders of the Founder Warrants to be redeemed at
their last addresses as they shall appear on the registration books.  Any notice mailed in the manner herein
provided shall be conclusively presumed to have been duly given whether or not
the registered holder received such notice.

6.3.          Exercise After Notice of Redemption.  The Founder Warrants may be exercised in
accordance with Section 3 of this Agreement at any time after notice of
redemption shall have 

 

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been given by the Company pursuant to Section 6.2
hereof and prior to the time and date fixed for redemption.  On and after the redemption date, the record
holders of the Founder Warrants shall have no further rights except to receive,
upon surrender of the Founder Warrants, the Redemption Price.

6.4.          Outstanding Founder Warrants Only.  The Company understands that the redemption
rights provided for by this Section 6 apply only to outstanding Founder
Warrants.  To the extent a person holds
rights to purchase Founder Warrants, such purchase rights shall not be
extinguished by redemption.  However,
once such purchase rights are exercised, the Company may redeem the Founder
Warrants issued upon such exercise provided that the criteria for redemption
are met.

7.             Other
Provisions Relating to Rights of Holders of Founder Warrants.

7.1.          No Rights as Stockholder.  A Founder Warrant does not entitle the
registered holder thereof to any of the rights of a stockholder of the Company,
including, without limitation, the right to receive dividends, or other
distributions, exercise any preemptive rights to vote or to consent or to
receive notice as stockholders in respect of the meetings of stockholders or
the election of directors of the Company or any other matter.

7.2.          Lost, Stolen, Mutilated, or
Destroyed Founder Warrants.  If any Warrant
Certificate is lost, stolen, mutilated, or destroyed, the Company and the
Warrant Agent may on such terms as to indemnity or otherwise as they may in
their discretion impose (which shall, in the case of a mutilated Warrant
Certificate, include the surrender thereof), issue a new Warrant Certificate of
like denomination, tenor, and date as the Warrant Certificate so lost, stolen, mutilated,
or destroyed.  Any such new Warrant Certificate
shall constitute a substitute contractual obligation of the Company, whether or
not the allegedly lost, stolen, mutilated, or destroyed Warrant Certificate shall
be at any time enforceable by anyone.

7.3.          Reservation of Common Stock.  The Company shall at all times reserve and
keep available a number of its authorized but unissued shares of Common Stock
that will be sufficient to permit the exercise in full of all outstanding Founder
Warrants issued pursuant to this Agreement.

7.4.          Registration of Common Stock.  The Company agrees that prior to the
commencement of the Exercise Period, it shall file with the Securities and
Exchange Commission a post-effective amendment to the Registration Statement, or
a new registration statement, for the registration, under the Act, of, and it
shall take such action as is necessary to qualify for sale, in those states in
which the Founder Warrants were initially offered by the Company, the Common
Stock issuable upon exercise of the Founder Warrants.  In either case, the Company will use its best
efforts to cause the same to become effective and to maintain the effectiveness
of such registration statement until the expiration of the Founder Warrants in
accordance with the provisions of this Agreement.

8.             Concerning
the Warrant Agent and Other Matters.

8.1.          Payment of Taxes.  The Company will from time to time promptly
pay all taxes and charges that may be imposed upon the Company or the Warrant
Agent in respect of the 

 

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issuance or delivery of shares of Common Stock upon
the exercise of Founder Warrants, but the Company shall not be obligated to pay
any transfer taxes in respect of the Founder Warrants or such shares.

8.2.          Resignation, Consolidation, or
Merger of Warrant Agent.

8.2.1.       Appointment of Successor Warrant Agent.  The Warrant Agent, or any successor to it
hereafter appointed, may resign its duties and be discharged from all further
duties and liabilities hereunder after giving sixty (60) days’ notice in
writing to the Company.  If the office of
the Warrant Agent becomes vacant by resignation or incapacity to act or
otherwise, the Company shall appoint in writing a successor Warrant Agent in
place of the Warrant Agent.  If the
Company shall fail to make such appointment within a period of 30 days after it
has been notified in writing of such resignation or incapacity by the Warrant
Agent or by the holder of the Founder Warrant (who shall, with such notice,
submit his Founder Warrant for inspection by the Company), then the holder of
any Founder Warrant may apply to the Supreme Court of the State of New York for
the County of New York for the appointment of a successor Warrant Agent at the
Company’s cost.  Any successor Warrant
Agent, whether appointed by the Company or by such court, shall be a
corporation organized and existing under the laws of the State of New York, in
good standing and having its principal office in the Borough of Manhattan, City
and State of New York, and authorized under such laws to exercise corporate
trust powers and subject to supervision or examination by federal or state
authority.  After appointment, any
successor Warrant Agent shall be vested with all the authority, powers, rights,
immunities, duties, and obligations of its predecessor Warrant Agent with like
effect as if originally named as Warrant Agent hereunder, without any further
act or deed; but if for any reason it becomes necessary or appropriate, the
predecessor Warrant Agent shall execute and deliver, at the expense of the
Company, an instrument transferring to such successor Warrant Agent all the
authority, powers and rights of such predecessor Warrant Agent hereunder; and
upon request of any successor Warrant Agent, the Company shall make, execute,
acknowledge and deliver any and all instruments in writing for more fully and
effectually vesting in and confirming to such successor Warrant Agent all such
authority, powers, rights, immunities, duties and obligations.

8.2.2.       Notice of Successor Warrant Agent.  In the event a successor Warrant Agent shall
be appointed, the Company shall give notice thereof to the predecessor Warrant
Agent and the transfer agent for the Common Stock not later than the effective
date of any such appointment.

8.2.3.       Merger or Consolidation of Warrant
Agent.  Any corporation into which
the Warrant Agent may be merged or with which it may be consolidated or any
corporation resulting from any merger or consolidation to which the Warrant
Agent shall be a party shall be the successor Warrant Agent under this
Agreement without any further act.

8.3.          Fees and Expenses of Warrant Agent.

8.3.1.       Remuneration.  The Company agrees to pay the Warrant Agent
reasonable remuneration for its services as such Warrant Agent hereunder and
will reimburse the Warrant Agent upon demand for all expenditures that the
Warrant Agent may reasonably incur in the execution of its duties hereunder.

 

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8.3.2.       Further Assurances.  The Company agrees to perform, execute,
acknowledge and deliver or cause to be performed, executed, acknowledged and
delivered all such further and other acts, instruments and assurances as may
reasonably be required by the Warrant Agent for the carrying out or performing
of the provisions of this Agreement.

8.4.          Liability of Warrant Agent.

8.4.1.       Reliance on Company Statement.  Whenever in the performance of its duties
under this Agreement, the Warrant Agent shall deem it necessary or desirable
that any fact or matter be proved or established by the Company prior to taking
or suffering any action hereunder, such fact or matter (unless other evidence
in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a statement signed by the President or
Chairman of the Board of the Company and delivered to the Warrant Agent.  The Warrant Agent may rely upon such
statement for any action taken or suffered in good faith by it pursuant to the
provisions of this Agreement.

8.4.2.       Indemnity.  The Warrant Agent shall be liable hereunder
only for its own negligence, willful misconduct or bad faith.  The Company agrees to indemnify the Warrant
Agent and save it harmless against any and all liabilities, including
judgments, costs and reasonable counsel fees, for anything done or omitted by
the Warrant Agent in the execution of this Agreement except as a result of the
Warrant Agent’s negligence, willful misconduct or bad faith.

8.4.3.       Exclusions.  The Warrant Agent shall have no responsibility
with respect to the validity of this Agreement or with respect to the validity
or execution of any Founder Warrant (except its countersignature thereof); nor
shall it be responsible for any breach by the Company of any covenant or
condition contained in this Agreement or in any Founder Warrant; nor shall it
be responsible to make any adjustments required under the provisions of Section
4 hereof or responsible for the manner, method or amount of any such adjustment
or the ascertaining of the existence of facts that would require any such
adjustment; nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares
of Common Stock to be issued pursuant to this Agreement or any Founder Warrant or
as to whether any shares of Common Stock will when issued be valid and fully
paid and nonassessable.

8.5.          Trust Fund Waiver.  The Warrant Agent has no right, title,
interest, or claim of any kind (“Claim”) in or to any monies in the
Trust Account (as defined in that certain Investment Management Trust
Agreement, dated as of the date hereof, by and between the Company and
Continental Stock Transfer & Trust Company as trustee of 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.

8.6.          Acceptance of Agency.  The Warrant Agent hereby accepts the agency
established by this Agreement and agrees to perform the same upon the terms and
conditions herein set forth and among other things, shall account promptly to
the Company with respect to Founder Warrants exercised and concurrently account
for, and pay to the Company, all moneys 

 

10

 

received by the Warrant Agent for the purchase of
shares of the Company’s Common Stock through the exercise of Founder Warrants.

9.             Miscellaneous
Provisions.

9.1.          Successors.  All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Warrant Agent shall bind
and inure to the benefit of their respective successors and assigns.

9.2.          Notices.  Any notice, statement or demand authorized by
this Agreement to be given or made by the Warrant Agent or by the holder of any
Founder Warrant to or on the Company shall be sufficiently given when so
delivered if by hand or overnight delivery or if sent by certified mail or
private courier service within five days after deposit of such notice, postage
prepaid, addressed (until another address is filed in writing by the Company
with the Warrant Agent), as follows:

Shermen
WSC Acquisition Corp.

c/o
The Shermen Group

1251
Avenue of the Americas

Suite
900

New York, New York 
10020

(212)
300-0020

Attn:  Francis P. Jenkins, Jr.

 

Any notice, statement or demand authorized by this
Agreement to be given or made by the holder of any Founder Warrant or by the
Company to or on the Warrant Agent shall be sufficiently given when so
delivered if by hand or overnight delivery or if sent by certified mail or
private courier service within five days after deposit of such notice, postage
prepaid, addressed (until another address is filed in writing by the Warrant
Agent with the Company), as follows:

Continental
Stock Transfer & Trust Company

17
Battery Place

New
York, New York 10004

Attn:  Compliance Department

 

with a copy in each case to:

Dechert LLP

30 Rockefeller Plaza

New York, New York 
10112

Attention:  Gerald Adler, Esq.

Fax
No.:  (212) 698-3599

 

and

                                                                                

 

11

 

                                                                                

[_____________]

Attn:

 

9.3.          Applicable Law.  The validity, interpretation and performance
of this Agreement and of the Founder Warrants shall be governed in all respects
by 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 Agreement shall be brought and enforced in the courts of the State of New
York or the United States District Court 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
inconvenience forum.  Any such 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 9.2 hereof.  Such mailing shall be deemed personal service
and shall be legal and binding upon the Company in any action, proceeding or
claim.

                9.4.          Persons Having Rights under this
Agreement.  Nothing in this Agreement
expressed and nothing that may be implied from any of the provisions hereof is
intended, or shall be construed, to confer upon, or give to, any person or
corporation other than the parties hereto and the registered holders of the
Founder Warrants and, for the purposes of Sections 3.1, 3.2, 4 and 6 hereof,
CIBC World Markets Corp. and CRT Capital Group LLC (the “Underwriters”) and the
registered holders of the Unit Warrants, any right, remedy or claim under or by
reason of this Agreement or of any covenant, condition, stipulation, promise or
agreement hereof.  The Underwriters and
the registered holders of the Unit Warrants shall be deemed to be a third-party
beneficiary of this Agreement with respect to Sections 3.1, 3.2, 4 and 6
hereof.  All covenants, conditions,
stipulations, promises and agreements contained in this Agreement shall be for
the sole and exclusive benefit of the parties hereto (and the Underwriters and
the registered holders of the Unit Warrants with respect to the Sections 3.1, 3.2,
4 and 6 hereof) and their successors and assigns and of the registered holders
of the Founder Warrants.

9.5.          Examination of the Founder Warrant
Agreement.  A copy of this Agreement
shall be available at all reasonable times at the office of the Warrant Agent
in the Borough of Manhattan, City and State of New York, for inspection by the
registered holder of any Founder Warrant. 
The Warrant Agent may require any such holder to submit his Founder
Warrant for inspection by it.

9.6.          Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

9.7.          Effect of Headings.  The Section headings herein are for
convenience only and are not part of this Agreement and shall not affect the
interpretation thereof.

 

12

 

IN WITNESS WHEREOF, this Agreement has been duly
executed by the parties hereto as of the day and year first above written.

	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  SHERMEN WSC ACQUISITION CORP.

  
	
   

  	
   

  	
   

  	
  Name: Francis P. Jenkins

  
	
   

  	
   

  	
   

  	
  Title:   Chairman
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  CONTINENTAL STOCK TRANSFER & TRUST 

  
	
   

  	
   

  	
   

  	
  COMPANY.

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

 

 

13Exhibit 4.7

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 CIBC World
Markets Corp. (“CIBC”), as registered owner of this Purchase Option, to Shermen
WSC Acquisition Corp. (“Company”), CIBC 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, CIBC 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

 

2

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) CIBC or a selected dealer participating in the Offering, or (ii) a
bona fide officer or partner of CIBC 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 such securities has been
filed by the

 

3

Company and declared effective by the Securities and Exchange
Commission (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 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

 

4

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 herein 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

 

5

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 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

 

6

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 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, CRT Capital Group LLC and CIBC 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 CIBC, as representative of the Holders participating in any of
the foregoing offerings, a signed

 

7

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’ 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 CIBC, 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 CIBC, 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 CIBC, as representative of
the Holders, shall reasonably request. 
The Company shall not be required to disclose any confidential
information or other records to CIBC, 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

 

8

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 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

 

9

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 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.

 

10

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 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.

 

11

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 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:

 

12

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 CIBC 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 CIBC may deem necessary or
desirable and that the Company and CIBC 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.

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

 

13

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
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 CIBC 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:

  	
   

  
	
   

  	
   

  	
   

  

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-1

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