Exhibit 10.27

AMENDMENT NO. 2 AND WAIVER TO

FINANCING AGREEMENT

AMENDMENT NO. 2 AND WAIVER, dated as of December 12, 2005 (this “Amendment”), to
the Financing Agreement, dated as of January 31, 2005, as amended by Amendment
No. 1 thereto, dated as of June 1, 2005 (as so amended, the “Financing
Agreement”), by and among Oglebay Norton Company, an Ohio corporation (the
“Parent”), each subsidiary of the Parent listed as a “Borrower” on the signature
pages to the Financing Agreement (together with the Parent, each a “Borrower”
and collectively, the “Borrowers”), each subsidiary of the Parent listed as a
“Guarantor” on the signature pages to the Financing Agreement (each a
“Guarantor” and collectively the “Guarantors”, and together with the Borrowers,
each a “Loan Party” and collectively, the “Loan Parties”), the lenders from time
to time party thereto (each a “Lender” and collectively, the “Lenders”), Silver
Point Finance, LLC, a Delaware limited liability company, as collateral agent
and syndication agent for the Lenders and as lead arranger (in such capacities,
together with its successors and assigns in such capacities, if any, the
“Collateral Agent”), Wells Fargo Foothill, Inc., a California corporation, as
administrative agent for the Lenders (in such capacity, together with its
successors and assigns in such capacity, if any the “Administrative Agent”; and
together with the Collateral Agent, each an “Agent” and collectively the
“Agents”), and JPMorgan Chase Bank and Bank of America, N.A, each as a
documentation agent for the Lenders (in such capacity, together with their
respective successors and assigns in such capacity, if any, each a
“Documentation Agent” and collectively, the “Documentation Agents”).

Preamble

The Borrowers, the Guarantors, the Required Lenders (as defined in the Financing
Agreement) and the Agents wish to (i) amend the Financing Agreement and
(ii) waive the requirement to deliver a fairness opinion in connection with the
O-N Minerals (St. Clair) Sale (as defined below). Accordingly, the parties
hereto hereby agree as follows:

1. Definitions. All terms used herein which are defined in the Financing
Agreement and not otherwise defined herein shall have the meanings assigned to
them in the Financing Agreement.

2. Amendment. Section 8.02(h) of the Financing Agreement is hereby amended by
inserting the following new clause “(v)” immediately before clause “(w)”
therein:

“(v) any Loan Party may pay any management fees or any other fees or expenses
(including the reimbursement thereof by any Loan Party) to any other Loan Party
pursuant to any management, consulting or other services agreement with any
other Loan Party;”

3. Waiver. Effective as of the Amendment Effective Date (as defined below), in
accordance with Section 13.02 of the Financing Agreement, the Required Lenders
hereby waive any requirement to deliver a fairness opinion pursuant to
Section 8.02(c)(i)(C) of the Financing Agreement, in connection with the sale by
O-N Minerals (St. Clair) Company

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(formerly known as Global Stone St. Clair Inc.) of (i) the Facility located in
Marble City, Oklahoma, (ii) all mining and processing equipment related thereto
and (iii) all limestone reserves located within, or under such Facility (the
“O-N Minerals (St. Clair) Sale”).

The waiver set forth above shall be effective only in this specific instance and
for the specific purposes set forth herein and does not allow any other or
further departure from the terms of the Financing Agreement or any other Loan
Documents, which terms shall continue in full force and effect.

4. Representations and Warranties. Each Loan Party hereby jointly and severally
represents and warrants to the Agents and the Lenders that this Amendment and
the Financing Agreement, as amended hereby, constitute the legal, valid and
binding obligations of each Loan Party, enforceable against such Loan Party in
accordance with their terms.

5. Conditions to Effectiveness. This Amendment shall become effective (the
“Amendment Effective Date”) upon the date on which the Collateral Agent shall
have received counterparts of this Amendment that bear the signatures of each
Borrower, each Guarantor, each Agent and the Required Lenders.

6. Continued Effectiveness of the Financing Agreement and Other Loan Documents.

(a) Each Loan Party hereby (i) acknowledges and consents to this Amendment,
(ii) confirms and agrees that the Financing Agreement and each other Loan
Document to which it is a party is, and shall continue to be, in full force and
effect and is hereby ratified and confirmed in all respects except that on and
after the Effective Date all references in any such Loan Document to “the
Financing Agreement”, the “Agreement”, “thereto”, “thereof”, “thereunder” or
words of like import referring to the Financing Agreement shall mean the
Financing Agreement as amended by this Amendment, and (iii) confirms and agrees
that to the extent that any such Loan Document purports to assign or pledge to
the Collateral Agent for the benefit of the Agents and the Lenders, or to grant
to the Collateral Agent for the benefit of the Agents and the Lenders a security
interest in or Lien on, any Collateral as security for the Obligations or
Guaranteed Obligations, as the case may be, of any Loan Party from time to time
existing in respect of the Financing Agreement and the other Loan Documents,
such pledge, assignment and/or grant of the security interest or Lien is hereby
ratified and confirmed in all respects. This Agreement does not and shall not
affect any of the obligations of any Loan Party, other than as expressly
provided herein, including, without limitation, the Borrowers’ obligation to
repay the Loans in accordance with the terms of Financing Agreement, or the
obligations of any other Loan Party under any Loan Document to which it is a
party, all of which obligations shall remain in full force and effect. Except as
expressly provided herein, the execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of the
Agents or any Lender under the Financing Agreement or any other Loan Document,
nor constitute a waiver of any provision of the Financing Agreement or any other
Loan Document.

(b) This Amendment shall constitute a Loan Document for all purposes of the
Financing Agreement and the other Loan Documents.

 

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7. Miscellaneous.

(a) This Amendment may be executed in any number of counterparts and by
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. Delivery of an executed counterpart of this Amendment by
facsimile or electronic mail shall be equally effective as delivery of an
original executed counterpart of this Amendment.

(b) Section and paragraph headings herein are included for convenience of
reference only and shall not constitute a part of this Amendment for any other
purpose.

(c) THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN
THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

(d) Any provision of this Amendment that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining portions
hereof or affecting the validity or enforceability of such provision in any
other jurisdiction.

(e) Borrowers will pay on demand all reasonable fees, costs and expenses of the
Agents in connection with the preparation, execution and delivery of this
Amendment or otherwise payable under the Financing Agreement, including, without
limitation, reasonable fees, disbursements and other charges of counsel to the
Agents.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
and delivered as of the date set forth on the first page hereof.

 

 

BORROWERS:

 

ERIE NAVIGATION COMPANY

ERIE SAND AND GRAVEL COMPANY

ERIE SAND STEAMSHIP CO.

O-N MINERALS (CHEMSTONE) COMPANY
(formerly known as Global Stone Chemstone Corporation)

O-N MINERALS (ERIE) COMPANY
(formerly known as Mountfort Terminal, Ltd.)

O-N MINERALS (FILLER PRODUCTS) COMPANY
(formerly known as Global Stone Filler Products, Inc.)

O-N MINERALS (JAMES RIVER) COMPANY
(formerly known as Global Stone James River, Inc.)

O-N MINERALS (LUTTRELL) COMPANY
(formerly known as Global Stone Tenn Luttrell Company)

O-N MINERALS (MICHIGAN) COMPANY
(formerly known as Michigan Limestone Operations, Inc.)

O-N MINERALS (PORTAGE) COMPANY LLC
(formerly known as Global Stone Portage, LLC)

O-N MINERALS (ST. CLAIR) COMPANY
(formerly known as Global Stone St. Clair Inc.)

O-N MINERALS (TERMINALS) COMPANY
(formerly known as Oglebay Norton Terminals, Inc.)

OGLEBAY NORTON COMPANY

OGLEBAY NORTON INDUSTRIAL SANDS, INC.

OGLEBAY NORTON MARINE SERVICES COMPANY, L.L.C.

OGLEBAY NORTON SPECIALTY MINERALS, INC.

By:   /s/ Julie A. Boland  

Name: Julie A. Boland

Title: VP, CFO & Treasurer

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O-N MINERALS (PENROC) COMPANY LP (formerly known as Global Stone PenRoc, LP) By:
 

O-N Minerals (GSPC) Company,

its general partner

  By:   /s/    Julie A. Boland    

Name: Julie A. Boland

Title:   VP, CFO & Treasurer

TEXAS MINING, LP By:  

ONTEX, Inc.

its general partner

  By:   /s/    Julie A. Boland    

Name: Julie A. Boland

Title: VP, CFO & Treasurer

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GUARANTORS:

O-N MINERALS COMPANY (formerly known as Global Stone Corporation)

O-N MINERALS (GEORGIA) COMPANY (formerly known as Global Stone Management
Company)

O-N MINERALS (GSPC) COMPANY (formerly known as GS PC Inc.)

O-N MINERALS (LIME) COMPANY (formerly known as GS Lime Company)

OGLEBAY NORTON ENGINEERED MATERIALS, INC.

OGLEBAY NORTON MANAGEMENT COMPANY

OGLEBAY NORTON MARINE MANAGEMENT COMPANY, L.L.C.

OGLEBAY NORTON MINERALS, INC.

ON COAST PETROLEUM COMPANY

ON MARINE SERVICES COMPANY

ONCO INVESTMENT COMPANY

ONCO WVA, INC.

ONMS MANAGEMENT COMPANY, LLC

ONTEX, INC.

SAGINAW MINING COMPANY

By:   /s/    Julie A. Boland  

Name: Julie A. Boland

Title:   VP, CFO & Treasurer

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COLLATERAL AGENT:

 

SILVER POINT FINANCE, LLC

By:   /s/    Frederick H. Fogel  

Name: Frederick H. Fogel

Title:   General Counsel

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ADMINISTRATIVE AGENT AND LENDER:

 

WELLS FARGO FOOTHILL, INC.

By:  

/s/ David Sanchez

 

Name: David Sanchez

 

Title: Vice President

 

 

 

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LENDERS:

 

SPF CDO I, LLC

By:  

/s/ Frederick H. Fogel

 

Name: Frederick H. Fogel

 

Title: General Counsel

 

Field Point I, Ltd. By:  

/s/ Frederick H. Fogel

 

Name: Frederick H. Fogel

 

Title: General Counsel

 

 

Field Point II, Ltd. By:  

/s/ Frederick H. Fogel

 

Name: Frederick H. Fogel

 

Title: General Counsel

 

Spiret IV Loan Trust 2003-A

By: Wilmington Trust Company no in its

Individual capacity but solely as trustee

By:  

/s/ Mary Kay Pupillo

 

Name: Mary Kay Pupillo

 

Title: Assistant Vice President

 

BANK OF AMERICA, N.A. By:  

/s/ Jang S. Kim

 

Name: Jang S. Kim

 

Title: Vice President

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LENDERS:

 

JPMorgan Chase Bank, N.A.

By:   /s/ Paul Weyhrecht  

Name: Paul Weyhrecht

Title: Vice President

Bear Stearns Investment Products, Inc. By:   /s/ John McDermont  

Name: John McDermont

Title: Vice President

JPMorgan Chase Bank, N.A. By:   /s/ Paul Weyhrecht  

Name: Paul Weyhrecht

Title: Vice President

Cooksmill By:   /s/ David Muldoon  

Name: David Muldoon

Title: AGM – Structured Products

Black Diamond International Funding, LTD By:   /s/ Alan Corkish  

Name: Alan Corkish

Title: Director

Oak Hill Advisors By:   /s/ Scott Krase  

Name: Scott Krase

Title: Authorized Signatory

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LENDERS:

 

OAK HILL SECURITIES FUND, L.P.

By:  

Oak Hill Securities GenPar, L.P.

It General Partner

By:

 

Oak Hill Securities MGP, Inc.,

Its General Partner

By:

 

/s/ Scott D. Krase

 

Name: Scott D. Krase

Title: Vice President

OAK HILL SECURITIES FUND II, L.P.

By:

 

Oak Hill Securities GenPar II, L.P.

It General Partner

By:

 

Oak Hill Securities MGP II, Inc.,

Its General Partner

By:

 

/s/ Scott D. Krase

 

Name: Scott D. Krase

Title: Vice President

SMBC MVI SPC,

(1) on behalf of an for the account of Segregated Portfolio No. 1

By:

 

Oak Hill Separate Account Management I, LLC

As Investment Manager

By:

 

/s/ Scott D. Krase

 

Name: Scott D. Krase

Title: Authorized Person

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LENDERS:

 

OAK HILL CREDIT PARTNERS I, LIMITED

By:

 

Oak Hill CLO Management I, LLC

As Investment Manager

By:

  /s/ Scott D. Krase  

Name: Scott D. Krase

Title: Authorized Person

OAK HILL CREDIT PARTNERS II, LIMITED

By:

 

Oak Hill CLO Management II, LLC

As Investment Manager

By:

 

/s/ Scott D. Krase

 

Name: Scott D. Krase

Title: Authorized Person

OAK HILL CREDIT PARTNERS III, LIMITED

By:

 

Oak Hill CLO Management III, LLC

As Investment Manager

By:

 

/s/ Scott D. Krase

 

Name: Scott D. Krase

Title: Authorized Person

OAK HILL CREDIT PARTNERS IV, LIMITED

By:

 

Oak Hill CLO Management IV, LLC

As Investment Manager

By:

 

/s/ Scott D. Krase

 

Name: Scott D. Krase

Title: Authorized Person

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LENDERS:

 

OAK HILL CREDIT ALPHA FUND, L.P.

 

By: Oak Hill Credit Alpha GenPar, L.P.,

Its General Partner

 

By: Oak Hill Credit Alpha MGP, LLC,

Its General Partner

By:  

/s/ Scott D. Krase

 

Name: Scott D. Krase

 

Title: Vice President

 

 

OAK HILL CREDIT ALPHA FUND

(OFFSHORE), LTD.

By:  

/s/ Scott D. Krase

 

Name: Scott D. Krase

 

Title: Vice President

 

 

Oak Hill Credit Opportunity Financing, Ltd.

By:  

/s/ Scott D. Krase

 

Name: Scott D. Krase

 

Title: Director

 

 

Royal Bank of Canada

By:  

/s/ Suzanne Kalcher

 

Name: Suzanne Kalcher

 

Title: Attorney – In – Fact

 

 

Morgan Stanley Senior Funding, Inc.

By:  

/s/ Ian Sandler

 

Name: Ian Sandler

 

Title: Authorized Signatory

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LENDERS:

 

Grand Central Asset Trust, BDC Series

By:  

/s/ Mikus N. Kins

 

Name: Mikus N. Kins

 

Title: Attorney – In – Fact

 

 

LIMESTONE INVESTORS, L.L.C.

 

By: Farallon Capital Management, L.L.C.

Its Manager

By:  

/s/ Raj Patel

 

Name: Raj Patel

 

Title: Managing Member