Exhibit 10.3

 

WAIVER AND CONSENT

 

WAIVER AND CONSENT, dated as of August 25, 2004 (this “Waiver”), in connection
with the Financing Agreement, dated as of July 13, 2004 (the ”Financing
Agreement”), by and among Oglebay Norton Company, an Ohio corporation, as a
debtor and debtor-in-possession (the “Borrower”), each subsidiary of the
Borrower listed as a “Guarantor” on the signature pages thereto, each as a
debtor and debtor-in-possession (each a “Guarantor” and collectively, the
“Guarantors”), the lenders party thereto (each a “Lender” and collectively, the
”Lenders”), Silver Point Finance, LLC, a Delaware limited liability company
(“Silver Point”), as collateral agent and syndication agent for the Lenders and
as lead arranger (in such capacities, the ”Collateral Agent”), Wells Fargo
Foothill, Inc., a California corporation (“Foothill”), as administrative agent
for the Lenders (in such capacity, the “Administrative Agent” and together with
the Collateral Agent, each an “Agent” and collectively, the “Agents”), and Bank
One, NA and Bank of America, N.A., each as a documentation agent for the Lenders
(in such capacity, each a “Documentation Agent” and collectively, the
“Documentation Agents”).

 

WHEREAS, (i) on the Effective Date, the Loan Parties (as defined in the
Financing Agreement) agreed to deliver to the Agents on a post-closing basis
executed Cash Management Agreements and similar agreements and other documents
described in Section 8.01(q)(i) of the Financing Agreement (collectively, the
“Cash Management Documents”) within 45 days of the Effective Date and (ii) the
Loan Parties have requested (A) an extension until November 12, 2004 of the date
by which the Cash Management Documents must be delivered to the Agents, and (B)
that the Agents and the Required Lenders consent to such extension and waive any
Default or Event of Default resulting therefrom. In accordance with Section
13.02 of the Financing Agreement, the Agents and the Required Lenders have
agreed to such consent and waiver, subject to the terms and conditions set forth
herein.

 

1. Definitions. All terms used herein which are defined in the Financing
Agreement and not otherwise defined herein are used herein as defined therein.

 

2. Consents and Waivers. Effective as of the date hereof, in accordance with
Section 13.02 of the Financing Agreement, the Agents and the Required Lenders
hereby consent to, and waive any Event of Default that may otherwise arise under
the Financing Agreement or any of the other Loan Documents resulting solely in
connection with the failure of the Loan Parties to deliver the Cash Management
Documents as required by Section 8.01(q)(i) of the Financing Agreement within 45
days of the Effective Date, provided, however, that with respect to any Cash
Management Account either (a) the Cash Management Documents with respect to such
Cash Management Account are delivered to the Agents on or before November 12,
2004 or, (b) (i) such Cash Management Account is closed, (ii) if a new Cash
Management Account is opened to replace the Cash Management Account that has
been closed, Cash Management Documents, in form and substance satisfactory to
the Agents, are delivered to the Agents with respect to such new Cash Management
Account, and (iii) the Loan Parties enter into an amendment to the Financing
Agreement amending Schedule 7.01(u) to the Financing Agreement to include such
new Cash Management Account and amending any other provision of the Financing
Agreement necessary to include such new Cash Management Account.

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3. Effect of Waivers. This Waiver (i) shall become effective when signed by each
of the Agents and the Required Lenders, (ii) shall be effective only in this
specific instance and for the specific purposes set forth herein, and (iii) does
not allow for any other or further departure from the terms and conditions of
the Financing Agreement or any other Loan Document, which terms and conditions
shall continue in full force and effect. This Waiver shall constitute a Loan
Document for all purposes of the Financing Agreement and the other Loan
Documents.

 

4. GOVERNING LAW. THIS WAIVER SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK.

 

5. Counterparts. This Waiver may be executed in any number of counterparts and
by the different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken
together shall constitute but one and the same instrument.

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IN WITNESS WHEREOF, the Agents and the Required Lenders have caused this Waiver
to be executed as of the date first above written.

 

COLLATERAL AGENT:

SILVER POINT FINANCE, LLC

By:

 

/s/ Jeffrey Gelfand

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Name:

  Jeffrey Gelfand

Title:

  CFO

ADMINISTRATIVE AGENT AND LENDER:

WELLS FARGO FOOTHILL, INC.

By:

 

/s/ David Sanchez

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Name:

  David Sanchez

Title:

  Vice President

DOCUMENTATION AGENT AND LENDER:

BANK OF AMERICA, N.A.

By:

 

/s/ Jang S. Kim

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Name:

  Jang S. Kim

Title:

  Vice President

DOCUMENTATION AGENT AND LENDER:

BANK ONE, NA

(MAIN OFFICE CHICAGO)

By:

 

/s/ James Gurgone

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Name:

  James Gurgone

Title:

  Director

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LENDERS: BEAR STEARNS INVESTMENT PRODUCTS INC.

By:

 

/s/ Jonathan Weiss

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Name:   Jonathan Weiss Title:   Authorized Signatory

GOLDMAN SACHS CREDIT PARTNERS L.P.

By:  

/s/ Pedro Ramirez

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Name:   Pedro Ramirez Title:   Authorized Signatory

LIMESTONE INVESTORS, L.L.C.

   

By:

  Farallon Capital Management, L.L.C.         its General Manager

By:

 

/s/ William F. Mellin

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Name:

  William F. Mellin

Title:

  Managing Member

MORGAN STANLEY SENIOR FUNDING, INC.

By:

 

 

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Name:

   

Title:

   

SPCP GROUP III LLC

By:

 

/s/ Jeffrey Gelfand

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Name:

  Jeffrey Gelfand

Title:

  CFO

SPIRET IV LOAN TRUST 2003-A

   

By:

  WILMINGTON TRUST COMPANY, not in         its individual capacity but solely as
trustee

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

   

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GOLDENTREE LOAN OPPORTUNITIES I, LIMITED    

By:

  GoldenTree Asset Management, L.P.

By:

 

/s/ Thomas H. Shandell

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Name:

  Thomas H. Shandell

Title:

  Partner GOLDENTREE LOAN OPPORTUNITIES II, LIMITED    

By:

  GoldenTree Asset Management, L.P.

By:

 

/s/ Thomas H. Shandell

--------------------------------------------------------------------------------

Name:

  Thomas H. Shandell

Title:

  Partner

QP SFM CAPITAL HOLDINGS LIMITED

By:

 

/s/ Jodye M. Anzalotta

--------------------------------------------------------------------------------

Name:

  Jodye M. Anzalotta

Title:

  Attorney-in-Fact BLACK DIAMOND INTERNATIONAL FUNDING, LTD

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

   

BDC FINANCE L.L.C.

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

   

COOKSMILL

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

   

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OAK HILL CREDIT ALPHA FUND (OFFSHORE), LTD.

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

   

OAK HILL CREDIT ALPHA FUND, LP

   

By:

  Oak Hill Credit Alpha GenPar, L.P.,         Its General Partner    

By:

  Oak Hill Credit Alpha MGP, LLC,         Its General Partner

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

   

OAK HILL SECURITIES FUND, L.P.

   

By:

  Oak Hill Securities GenPar, L.P.         Its General Partner    

By:

  Oak Hill Securities MGP, Inc.         Its General Partner

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

   

OAK HILL SECURITIES FUND II, L.P.

   

By:

  Oak Hill Securities GenPar II, L.P.         Its General Partner    

By:

  Oak Hill Securities MGP II, Inc.         Its General Partner

By:

 

 

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Name:

       

Title:

       

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CITIBANK, N.A.

By:

 

 

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Name:

   

Title:

   

STARK TRADING

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

    SHEPHERD INVESTMENTS INTERNATIONAL, LTD.

By:

 

 

--------------------------------------------------------------------------------

Name:

   

Title:

   

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Each of the undersigned Borrower and Guarantors hereby ratifies and confirms its
Obligations under the Financing Agreement and the other Loan Documents, as
modified hereby.

 

BORROWER:

OGLEBAY NORTON COMPANY

By:

 

/s/ Julie A. Boland

--------------------------------------------------------------------------------

Name:

  Julie A. Boland

Title:

  Vice President, CFO and Treasurer

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GUARANTORS: ERIE NAVIGATION COMPANY ERIE SAND AND GRAVEL COMPANY ERIE SAND
STEAMSHIP CO. GLOBAL STONE CHEMSTONE CORPORATION GLOBAL STONE CORPORATION GLOBAL
STONE FILLER PRODUCTS, INC. GLOBAL STONE JAMES RIVER, INC. GLOBAL STONE
MANAGEMENT COMPANY GLOBAL STONE PENROC LP GLOBAL STONE PORTAGE, LLC GLOBAL STONE
ST. CLAIR INC. GLOBAL STONE TENN LUTTRELL COMPANY GS LIME COMPANY GS PC INC.
MICHIGAN LIMESTONE OPERATIONS, INC. MOUNTFORT TERMINAL, LTD. OGLEBAY NORTON
ENGINEERED MATERIALS, INC. OGLEBAY NORTON INDUSTRIAL SANDS, INC. OGLEBAY NORTON
MANAGEMENT COMPANY OGLEBAY NORTON MARINE MANAGEMENT COMPANY, L.L.C. OGLEBAY
NORTON MARINE SERVICES COMPANY, L.L.C. OGLEBAY NORTON MINERALS, INC. OGLEBAY
NORTON SPECIALTY MINERALS, INC. OGLEBAY NORTON TERMINALS, INC. ON COAST
PETROLEUM COMPANY ON MARINE SERVICES COMPANY ONCO INVESTMENT COMPANY ONCO WVA,
INC. ONMS MANAGEMENT COMPANY, LLC ONTEX, INC. SAGINAW MINING COMPANY TEXAS
MINING, LP

 

By:

 

/s/ Julie A. Boland

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Name:

  Julie A. Boland

Title:

  Vice President and Treasurer