Document:

Exhibit 4.6

 

FOUNDER
WARRANT AGREEMENT

This Agreement (the “Agreement”) is made as of [                    ],
2006 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 2,642,857 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 [                 ],
2006, 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], 2007 and terminating at
5:00 p.m., New York City time on the earlier to occur of (x) [four years from date of prospectus], 2010 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,
CRT Capital Group LLC (the “Underwriter”) 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 Underwriter 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 Underwriter 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 10.9

 

INVESTMENT MANAGEMENT TRUST AGREEMENT

 

This Agreement is made as
of                       ,
2006 by and between Shermen WSC Acquisition Corp. (the “Company”) and
Continental Stock Transfer & Trust Company (“Trustee”).

 

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

 

WHEREAS, CRT Capital
Group LLC (“CRT”) is acting as the underwriter in the IPO; and

 

WHEREAS, as described in the
Registration Statement, and in accordance with the Company’s Amended and
Restated Certificate of Incorporation, $15,800,000 of the gross proceeds of the
IPO and sale of the Founder Warrants (as defined in the Registration Statement)
will be delivered to the Trustee to be deposited and held in a trust account
for the benefit of the Company and the holders of the Company’s common stock,
par value $.0001 per share, issued in the IPO as hereinafter provided and in
the event the Units are registered in Colorado, pursuant to Section 11-51-302(6) of
the Colorado Revised Statutes (the amount to be delivered to the Trustee will
be referred to herein as the “Property,” the stockholders for whose benefit the
Trustee shall hold the Property will be referred to as the “Public
Stockholders,” and the Public Stockholders and the Company will be referred to
together as the “Beneficiaries”); and

 

WHEREAS, CRT has agreed
to deposit in the Trust Account (as defined below) a portion of the Property
equal to $3,000,000 (or $3,450,000 if CRT’s over-allotment option is exercised
in full) attributable to CRT’s discount that will become payable by the Company
to CRT upon the consummation of a Business Combination (as defined in the
Registration Statement); and

 

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

 

IT IS AGREED:

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

2

 

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

 

2.                                       Limited
Distributions of Income from Trust Account.

 

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

 

(b)                                 Upon
written request from the Company, which will be given monthly in a form substantially
similar to that attached hereto as Exhibit D, the Trustee shall distribute
to the Company an amount equal to one half of the income collected on the
Property through the last day of the month immediately preceding the date of
receipt of the Company’s request to cover expenses related to investigating and
selecting a target business and other working capital requirements; provided,
however, that the aggregate amount of all such distributions shall not exceed
$1,500,000. The first such distribution shall be for the month ending on
[                 ],
2006, with the Company’s request made after such date.

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

6.                                       Termination.
This Agreement shall terminate as follows:

 

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

 

5

 

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

 

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

 

7.                                       Miscellaneous.

 

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

 

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

 

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

 

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

 

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

 

if to
the Trustee, to:

 

6

 

Continental
Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

Attn:                    Steven
G. Nelson

Fax No.:  (212) 509-5150

 

if to
the Company, to:

 

Shermen
WSC Acquisition Corp.

c/o The Shermen Group

1251 Avenue of the Americas

Suite 900

New York, NY 10020

Attn:                    Francis
P. Jenkins, Jr.

Fax No.:  (212) 332-2475

 

in
either case with a copy to:

 

CRT
Capital Group LLC

262 Harbor Drive

Stamford, Connecticut  06902

Attn:                    Michiel
McCarty

Fax No.:  (203) 569-6883

 

and

 

Bingham
McCutchen LLP

399 Park Avenue

New York, NY 10022

Floyd Wittlin, Esq.

Fax No.:  (212) 702-3625

 

and

 

Dechert
LLP

30 Rockefeller Plaza

New York, New York  10112

Attention:  Gerald Adler, Esq.

Fax No.:  (212) 698-0479

 

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

 

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

 

7

 

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

 

(h)                                 Each
of the Company and the Trustee hereby acknowledges that CRT is a third party
beneficiary of this Agreement.

 

8

 

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

 

	
   

  	
  CONTINENTAL
  STOCK TRANSFER & TRUST

  COMPANY, as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SHERMEN WSC
  ACQUISITION CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Francis P.
  Jenkins, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Chairman and
  Chief Executive Officer

  

 

9

 

EXHIBIT A

 

[Letterhead of Company]

[Insert date]

 

Continental Stock
Transfer
  & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven G. Nelson

 

Re:                               Trust
Account No. [              ]
— Termination Letter

 

Gentlemen:

 

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

 

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

 

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

 

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

 

 

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

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  SHERMEN WSC
  ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Francis P.
  Jenkins, Jr.,

  
	
   

  	
   

  	
  Chairman and
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
                          ,
  Secretary

  

 

cc:                                 CRT
Capital Group LLC.

 

 

EXHIBIT B

 

[Letterhead of Company]

[Insert date]

 

Continental Stock
Transfer
  & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven G. Nelson

 

Re:                               Trust
Account No. [              ]
— Termination Letter

 

Gentlemen:

 

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

 

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

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  SHERMEN WSC
  ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Francis P.
  Jenkins, Jr.,

  
	
   

  	
   

  	
  Chairman and
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
                          ,
  Secretary

  

 

cc:                                 CRT
Capital Group LLC

 

 

EXHIBIT C

 

[Letterhead of Company]

[Insert date]

 

Continental Stock
Transfer
  & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven G. Nelson

 

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

 

Gentlemen:

 

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

 

[WIRE INSTRUCTION
INFORMATION]

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  SHERMEN WSC
  ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Francis P.
  Jenkins, Jr.,

  
	
   

  	
   

  	
  Chairman and
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
                          ,
  Secretary

  

 

cc:                                 CRT
Capital Group LLC

 

 

EXHIBIT D

 

[Letterhead of Company]

[Insert date]

 

Continental Stock
Transfer
  & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven G. Nelson

 

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

 

Gentlemen:

 

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

 

[WIRE INSTRUCTION
INFORMATION]

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  SHERMEN WSC
  ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Francis P.
  Jenkins, Jr.,

  
	
   

  	
   

  	
  Chairman and
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
                          ,
  Secretary

  

 

cc:                                 CRT
Capital Group LLC

 

 

EXHIBIT E

 

	
  AUTHORIZED INDIVIDUAL(S)

  FOR TELEPHONE CALL BACK

  	
   

  	
  AUTHORIZED

  TELEPHONE NUMBER(S)

  
	
   

  	
   

  	
   

  
	
  Company:

  

  Shermen WSC Acquisition Corp.

  c/o The Shermen Group

  1251 Avenue of the Americas

  Suite 900

  New York, NY 10020

  Attn:Francis P. Jenkins, Jr.

  	
   

  	
  

  

  

  (212) 300-0020

  
	
   

  	
   

  	
   

  
	
  Trustee:

  

  Continental Stock Transfer

   & Trust Company

  17 Battery Place

  New York, New York 10004

  Attn: Steven G. Nelson, Chairman

  	
   

  	
  

  

  

  (212) 845-3200

  

 

 

SCHEDULE A

 

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

between                             and

Continental Stock Transfer & Trust Company

 

	
  Fee Item

  	
   

  	
  Time and method of

  payment

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial
  acceptance fee

  	
   

  	
  Initial closing
  of IPO by wire transfer

  	
   

  	
  $

  	
  1,000

  	
   

  
	
  Annual fee

  	
   

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

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Transaction
  processing fee for disbursements to Company under

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

  	
   

  	
  Deduction by
  Trustee from disbursement made to Company under Section 2

  	
   

  	
  $

  	
  250

  	
   

  

 

	
   

  	
  Agreed:

  	
   

  
	
  Dated: June    ,
  2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Continental
  Stock Transfer & Trust Co.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]