Document:

<PAGE>

                                                                    Exhibit 10.2

                                                                  EXECUTION COPY

                                WAIVER LETTER AND
                                 AMENDMENT NO. 7
                                       TO
                                 LOAN AGREEMENT

     This WAIVER LETTER AND AMENDMENT NO. 7 TO LOAN AGREEMENT (this "Agreement
and Amendment"), made as of June 13, 2003, among OGLEBAY NORTON COMPANY
("Borrower"), the banking institutions named in Schedule 1 to the Loan Agreement
(as hereinafter defined) (collectively, the "Banks" and individually, "Bank"),
KEYBANK NATIONAL ASSOCIATION, as administrative agent for the Banks ("Agent"),
BANK ONE, MICHIGAN (now known as Bank One, NA), as syndication agent
("Syndication Agent") and THE BANK OF NOVA SCOTIA, as documentation agent
("Documentation Agent"),

                                   WITNESSETH:

     WHEREAS, Borrower, the Banks, the Agent, the Syndication Agent and the
Documentation Agent have entered into that certain Loan Agreement, dated as of
April 3, 2000, and as subsequently amended by that certain Amendment No. 1 to
Loan Agreement and Waiver, dated as of June 30, 2001, Amendment No. 2 to Loan
Agreement and Waiver, dated as of November 9, 2001, Amendment No. 3 to Loan
Agreement, dated as of December 24, 2001, Amendment No. 4 to Loan Agreement,
dated as of October 23, 2002, Amendment No. 5 to Loan Agreement, dated as of
January 8, 2003, and Waiver Letter and Amendment No. 6 to Loan Agreement, dated
as of March 31, 2003 (as so amended from time to time, the "Loan Agreement"),
pursuant to which the Banks have made certain loans and other financial
accommodations available to Borrower;

     WHEREAS, Borrower has advised the Agent that Borrower may violate one or
more of the financial covenants contained in Section 5.7 of the Loan Agreement
(the "Financial Covenant Violations") for periods of determination occurring
prior to the Waiver Expiration Date (as defined below);

     WHEREAS, subject to the terms and conditions hereof, the Banks and the
Agent are willing to temporarily waive: (i) the Events of Default set forth in
Section 7.2 (the "Designated Events of Default") of the Loan Agreement which
will occur by reason of the Financial Covenant Violations and (ii) the exercise
of rights and remedies under the Loan Agreement with respect to such Designated
Events of Default; and

     WHEREAS, the parties also desire to amend certain provisions of the Loan
Agreement as set forth herein and the Banks which are signatories hereto
constitute the "Majority Banks" required to so amend the Loan Agreement pursuant
to Section 10.3 thereof;

     NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein and other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, Borrower and the Banks do hereby
agree as follows:

1.  DEFINED TERMS.

     Each defined term used herein and not otherwise defined herein shall have
the meaning ascribed to such term in the Loan Agreement, as amended hereby.

<PAGE>

2.   AGREEMENT TO WAIVE.

      Notwithstanding the occurrence or continuation of the Designated Events of
Default, subject to satisfaction of the conditions precedent set forth in
Section 5 hereof, the Designated Events of Default are hereby waived in
accordance with the Loan Agreement from the date of occurrence thereof until the
Waiver Expiration Date and the Banks and Agent will not exercise rights and
remedies under the Loan Agreement and the other Loan Documents as a result of
the occurrence of such Designated Events of Default until after the Waiver
Expiration Date. Nothing contained in this Agreement and Amendment shall
prejudice any rights or remedies the Banks or the Agent may have, or the right
of the Banks and the Agent to exercise any such rights and remedies, prior to
the Waiver Expiration Date with respect to Events of Default (whether now
existing or hereafter occurring and including any violation of Section 5.7B of
the Loan Agreement) other than the Designated Events of Default. Moreover,
nothing contained in this Agreement and Amendment shall prejudice any rights or
remedies the Banks or the Agent may have, or the right of the Banks or the Agent
to exercise any such rights and remedies, with respect to any Events of Default
(including the Designated Events of Default) after the Waiver Expiration Date.

3.   AMENDMENT TO THE LOAN AGREEMENT.

      3.1 Amendment to Article I. Article I, Definitions, is amended by: (i)
adding thereto a new definition "Amendment No. 7 Closing Date," to be inserted
into Article I in appropriate alphabetical order to read as set forth below,
(ii) amending paragraph (a) of the definition of "Applicable Margin" and the
first clause of paragraph (b) of such definition to read as set forth below and
(iii) amending the definition of "Waiver Expiration Date" to read as set forth
below:

      "Amendment No. 7 Closing Date" shall mean the date on which the "Effective
Date" (as such term is defined in Section 5 of that certain Waiver Letter and
Amendment No. 7 to Loan Agreement, dated as of June 13, 2003) occurs.

      "Applicable Margin" shall mean:

          (a) for the period commencing on the Amendment No. 7 Closing Date
      until and including the Waiver Expiration Date, (i) four hundred fifty
      (450) basis points for each LIBOR Interest Segment, and (ii) two hundred
      twenty-five (225) basis points for the Prime Interest Segment, and . . .

          (b) commencing August 16, 2003, . . .

      "Waiver Expiration Date" means the earlier of: (i) August 15, 2003 or (ii)
July 31, 2003 (if the Borrower is unable by July 9, 2003 to obtain a waiver of
any Events of Default under the 2002 Senior Secured Fund Notes which waiver
extends until August 15, 2003 or later).

      3.2 Amendment to Section 5.3. Section 5.3 of the Loan Agreement is hereby
amended as follows: (w) with respect to the fiscal quarter ending June 30, 2003
only, paragraph (a) of Section 5.3 shall be amended so that the financial
statements with respect to such fiscal quarter shall be required to be released
to the public and delivered to each Bank on August 1, 2003 and such financial
statements with respect to such fiscal quarter (with any adjustments made to
such financial statements) shall be disclosed in the Borrower's 10Q and
delivered to each Bank by August 15, 2003, (x) with respect to the fiscal
quarter ending June 30, 2003 only, paragraph (c) of Section 5.3 shall be amended
so that the Borrower shall be required to deliver to

                        Amendment No. 7 to Loan Agreement

                                       2

<PAGE>

each Bank on August 1, 2003 calculations of the financial covenants set forth in
Section 5.7B (rather than Section 5.7) of the Loan Agreement which calculations
shall be based on the financial statements delivered to the Banks on August 1,
2003 and certified by a Financial Officer of the Borrower (subject to such
adjustments as are made to the financial statements included in the 10Q filed
for June 30, 2003), (y) with respect to the fiscal quarter ending June 30, 2003
only, paragraph (c) of Section 5.3 shall be further amended so that the Borrower
shall be required to deliver to each Bank on August 15, 2003 a Compliance
Certificate and calculations of the financial covenants set forth in Section
5.7B (rather than Section 5.7) of the Loan Agreement which calculations shall be
based on the financial statements delivered to the Banks on August 15, 2003 and
certified by a Financial Officer of the Borrower.

     3.3 Temporary Financial Covenants. In the event the Effective Date occurs,
then on and after June 16, 2003 until and including the Waiver Expiration Date,
Section 5 of the Loan Agreement shall be amended to add Section 5.7B thereto to
read as set forth below (the terms of Section 5.7 as in effect prior to this
Agreement and Amendment shall become again effective after the Waiver Expiration
Date):

     SECTION 5.7B TEMPORARY FINANCIAL COVENANTS

          (a) LEVERAGE RATIO. The Companies shall not suffer or permit at any
     time the Leverage Ratio to exceed 8.75 to 1.00 on June 16, 2003 through and
     including the Waiver Expiration Date.

          (b) SENIOR SECURED DEBT RATIO. The Companies shall not suffer or
     permit at any time the ratio of: (x) Total Senior Funded Indebtedness to
     the extent such Indebtedness is a secured obligation (but, excluding for
     purposes hereof, the Indebtedness evidenced by the 2002 Senior Secured Fund
     Notes) to (y) Consolidated Pro-Forma EBITDA to be greater than 5.25 to 1.00
     on June 16, 2003 through and including the Waiver Expiration Date, based
     upon the financial statements of the Companies for the most recently
     completed four (4) fiscal quarters.

          (c) INTEREST COVERAGE. The Companies shall not suffer or permit at any
     time the ratio of: (x) Consolidated Pro-Forma EBITDA to (y) Consolidated
     Pro-Forma Interest Expense (less non cash amortized financing and FAS 133
     costs to the extent included in Consolidated Pro-Forma Interest Expense in
     accordance with GAAP) to be less than 1.15 to 1.00 on June 16, 2003 through
     and including the Waiver Expiration Date, based upon the financial
     statements of the Companies for the most recently completed four (4) fiscal
     quarters.

          (d) CASH-FLOW COVERAGE. The Companies shall not suffer or permit at
     any time the ratio of: (x) Consolidated Pro-Forma Cash Flow to (y)
     Consolidated Pro-Forma Fixed Charges (excluding from Pro-Forma Fixed
     Charges for purposes of calculating compliance with this covenant, amounts
     payable with respect to the Revolving Loans (as defined in the Credit
     Agreement) and the Term Loans to be less than 0.60 to 1.00 on June 16, 2003
     through and including the Waiver Expiration Date, based upon the financial
     statements of the Companies for the most recently completed four (4) fiscal
     quarters.

          (e) NET WORTH. The Companies shall not suffer or permit Consolidated
     Net Worth at any time, based upon the Consolidated financial statements of
     the

                        Amendment No. 7 to Loan Agreement

                                       3

<PAGE>

     Companies for the most recently completed fiscal quarter, to fall below the
     current minimum amount required, which current minimum amount required
     shall be as of June 30, 2003, an amount equal to $87,678,000; provided,
     however, that (i) any non-cash impact to Consolidated Net Worth related to
     FAS 142 shall be excluded in calculating Borrower's compliance with this
     covenant and (ii) any potential non-cash impact associated with the
     extinguishment of Indebtedness (as a result of the issuance of the 2002
     Senior Secured Fund Notes and the required repayment of a portion of the
     Revolving Credit Loans) as indicated pursuant to EITF 96.19/SFAS 140 shall
     likewise be excluded in calculating Borrower's compliance with this
     covenant.

          (f) MINIMUM CONSOLIDATED PRO-FORMA EBITDA. The Companies shall not
     suffer or permit at any time Consolidated Pro-Forma EBITDA to be less than
     $51,500,000 on June 16, 2003 through and including the Waiver Expiration
     Date, based upon the financial statements of the Companies for the most
     recently completed four (4) fiscal quarters.

     3.4  Addition to Section 5.24. 2003, Section 5.24 of Article V is amended
by adding the following sentence at the end of such Section:

     In the event that Borrower agrees to any increase in existing interest rate
     or fees, or the creation or increase of penalty or premium, or the granting
     of any other right or chose having economic value with respect to any
     contract or agreement for the borrowing of money in excess of Two Million
     Dollars ($2,000,000) and, notwithstanding the amount thereof, the 2002
     Senior Secured Fund Notes, the Indenture, and any loans or capital leases
     for the purchase or lease of assets extended by US Bank National
     Association or National City Bank or their affiliates then: (i) with
     respect to any such increase in existing interest or fees, the Banks shall
     receive the same increase in any existing interest rate and fees or (ii)
     with respect to any such creation, increase or grant of a penalty or
     premium or any other right or chose having economic value, the Banks shall
     receive an amount equal to (x) the Debt owed to the Banks hereunder
     multiplied by (y) a percentage equal to (A) the aggregate amount or value
     of such penalty, premium, right or chose divided by (B) the of aggregate
     outstanding amount of such contract or agreement for borrowed money.

     3.5  Addition of Section 5.32. Article V is amended by adding Section 5.32
thereto to read as follows:

          SECTION 5.32. APPRAISALS. Borrower shall: (i) use its best efforts to
     furnish to Agent no later than July 15, 2003 final versions of each Haas
     appraisal of each of the Companies' material mineral and mining operations
     (other than with respect to Special Minerals Velarde and Kings Mountain
     operations, in form and substance acceptable to Agent and (ii) use its best
     efforts to furnish to Agent no later than July 31, 2003 final versions of
     the Haas appraisal of Special Minerals Velarde and Kings Mountain
     operations, in form and substance acceptable to Agent.

     3.6  Addition of Section 5.33. Article V is amended by adding Section 5.33
thereto to read as follows:

          SECTION 5.33. FINAL OFFERING MEMORANDA. Borrower shall furnish to
     Agent true and complete copies of each final offering memoranda generated
     with respect to any proposed sale of any of the Companies' assets as soon
     as they are completed by

                        Amendment No. 7 to Loan Agreement

                                       4

<PAGE>

     Borrower's investment banker Harris Williams. Borrower shall also furnish
     to Agent: (i) relevant industry information and resumes by no later than
     July 9, 2003 and (ii) relevant valuation reports and estimated time
     schedules for closing such contemplated sales of assets of the Companies by
     no later than July 15, 2003.

     3.7 Amendment to Section 7.2. Section 7.2 of the Loan Agreement is hereby
amended to add therein a reference to "5.7B" after the reference to "5.7" and
"5.7A".

4.  REPRESENTATIONS AND WARRANTIES.

     Borrower hereby represents and warrants as follows:

     4.1 The Agreement and Amendment. This Agreement and Amendment has been duly
and validly executed by an authorized executive officer of Borrower and
constitutes the legal, valid and binding obligation of Borrower enforceable
against Borrower in accordance with its terms. The execution, delivery, and
performance of this Agreement and Amendment, the Loan Agreement (as amended
hereby), and the other Loan Documents to which Borrower is a party are within
Borrower's corporate powers, have been duly authorized, and are not in
contravention of law or the terms of Borrower's Certificate of Incorporation or
By-Laws or any indenture (including the Indenture) or other document or
instrument evidencing borrowed money or any other agreement or undertaking to
which Borrower is a party or by which it or its property is bound.

     4.2 Claims and Defenses. As of the date of this Agreement and Amendment,
neither Borrower nor any of the Companies has any defenses, claims,
counterclaims or setoffs with respect to the Loan Agreement, the Loan Documents
or any obligations thereunder or with respect to any actions of Agent, the
Syndication Agent, the Documentation Agent, the Banks or any of their respective
officers, directors, shareholders, employees, agents or attorneys, and Borrower
irrevocably and absolutely waives any such defenses, claims, counterclaims and
setoffs and releases Agent, the Syndication Agent, the Documentation Agent, the
Banks, and each of their respective officers, directors, shareholders,
employees, agents and attorneys, from the same.

     4.3 Loan Agreement; Status of Loan Agreement. The Loan Agreement, as
amended by this Agreement and Amendment, remains in full force and effect and
remains the valid and binding obligation of Borrower enforceable against
Borrower in accordance with its terms except as expressly limited hereby. As of
the date of this Agreement and Amendment, the representations and warranties of
Borrower set forth in the Loan Agreement are true and correct in all material
respects with the same force and effect as if made on and as of such date except
to the extent that any thereof expressly relate to an earlier date.

     4.4 Nonwaiver. The execution, delivery, performance and effectiveness of
this Agreement and Amendment shall not, except as provided in Article 2 of this
Agreement and Amendment, operate as, be deemed to be, or be construed to be a
waiver: (i) of any right, power or remedy of Agent, the Syndication Agent, the
Documentation Agent, or any Bank under the Loan Agreement or (ii) of any term,
provision, representation, warranty or covenant contained in the Loan Agreement
or any other documentation executed in connection therewith. Further, except as
provided in Article 2 of this Agreement and Amendment, none of the provisions of
this Agreement and Amendment shall constitute, be deemed to be or construed to
be: (i) a waiver of any Event of Default under the Loan Agreement as previously
amended and as further amended

                        Amendment No. 7 to Loan Agreement

                                       5

<PAGE>

by this Agreement and Amendment or (ii) a revocation of any prior written
waivers of any Events of Default thereunder.

     4.5 Reference to and Effect on the Loan Agreement. Upon the effectiveness
of this Agreement and Amendment, each reference in the Loan Agreement to "this
Agreement," "hereunder," "hereof," "herein," or words of like import shall mean
and be a reference to the Loan Agreement, as previously amended and as further
amended hereby, and each reference to the Loan Agreement in any other document,
instrument or agreement executed and/or delivered in connection with the Loan
Agreement shall mean and be a reference to the Loan Agreement, as previously
amended and as further amended hereby.

5.  CONDITIONS PRECEDENT TO EFFECTIVENESS OF THIS AGREEMENT AND AMENDMENT.

     This Agreement and Amendment shall become effective as of the time (the
"Effective Date") on which each of the following conditions precedent shall have
been fulfilled:

     5.1 Waiver Letter and Amendment No. 7 to Loan Agreement. Agent shall have
received from Borrower and Banks constituting the Majority Banks (as determined
by the Agent) an original counterpart of this Agreement and Amendment, executed
and delivered by a duly authorized officer of Borrower and each such Bank, as
the case may be.

     5.2 Waiver Letter and Amendment No. 7 to Credit Agreement. Agent shall have
received from Borrower and Banks constituting Majority Banks (as determined by
the Agent) an original counterpart of the Waiver Letter and Amendment No. 7 to
Credit Agreement, in form and substance acceptable to Agent, executed and
delivered by a duly authorized officer of Borrower and each such Bank, as the
case may be.

     5.3 Acknowledgment of Guarantors. Agent shall have received the
Acknowledgment of Guarantors, attached hereto, executed and delivered by a duly
authorized officer of each of the Guarantors.

     5.4 Agreement and Amendment Fee; Legal Expenses to Date. Agent shall have
received, for the benefit of each Bank (including Agent in its capacity as a
Bank) approving and executing this Agreement and Amendment, a one time fee in
the amount of ten (10) basis points multiplied by the Term Loan Commitment
Amount of such Bank. In addition, Agent shall have received payment of all
currently outstanding expenses of Agent incurred in connection with outstanding
fees and expenses of counsel to Agent in connection with the matters
contemplated hereby or undertaken to date in connection with the Credit
Agreement and Loan Agreement.

     5.5 Opinion Concerning Agreement and Amendment. Agent shall have received
an opinion of counsel to Borrower and its subsidiaries, in form and substance
satisfactory to Agent, as to the authorization, due execution and delivery, and
enforceability by and against Borrower and the Subsidiaries thereof which are
parties to this Agreement and Amendment.

     5.6 Other Deliveries. Agent shall have received from Borrower any other
agreements previously discussed as being required in connection with this
Amendment , in form and substance acceptable to Agent, executed and delivered by
a duly authorized officer of Borrower.

                        Amendment No. 7 to Loan Agreement

                                       6

<PAGE>

6.  MISCELLANEOUS.

     6.1 Governing Law. This Agreement and Amendment has been delivered and
accepted at and shall be deemed to have been made at Cleveland, Ohio. This
Agreement and Amendment shall be interpreted and the rights and liabilities of
the parties hereto determined in accordance with the laws of the State of Ohio,
without regard to principles of conflict of law, and all other laws of mandatory
application.

     6.2 Severability. Each provision of this Agreement and Amendment shall be
interpreted in such manner as to be valid under applicable law, but if any
provision hereof shall be invalid under applicable law, such provision shall be
ineffective to the extent of such invalidity, without invalidating the remainder
of such provision or the remaining provisions hereof.

     6.3 Counterparts. This Agreement and Amendment may be executed in one or
more counterparts, each of which, when taken together, shall constitute but one
and the same agreement.

                           [Signature Page to Follow]

                        Amendment No. 7 to Loan Agreement

                                       7

<PAGE>

         IN WITNESS WHEREOF, Borrower has caused this Waiver Letter and
Amendment No. 7 to Loan Agreement to be duly executed and delivered by its duly
authorized officer as of the date first above written.

Address:    North Point Tower                   OGLEBAY NORTON COMPANY
            1001 Lakeside Avenue,               By:_____________________________
            15th floor                          Name:  Julie A. Boland
                                                     ---------------------------
            Cleveland, Ohio 44114-1151          Title: Chief Financial Officer
                                                      --------------------------
            Attention: Treasurer

Address:    Key Center                          KEYBANK NATIONAL ASSOCIATION,
            127 Public Square                   as a Bank and as Agent
            Cleveland, Ohio 44114-1306          By:_____________________________
            Attention: Large Corporate          Name:  Thomas J. Purcell
                                                     ---------------------------
            Banking Division                    Title: Sr. Vice President
                                                      --------------------------

Address:    611 Woodward Avenue                 BANK ONE, NA (formerly known as
            Detroit, Michigan 48226             Bank One, Michigan)
            Attention: Large Corporate          By:_____________________________
            Banking Division                    Name:___________________________
                                                Title:__________________________

Address:    600 Peachtree Street                THE BANK OF NOVA SCOTIA
            Suite 2700
            Atlanta, Georgia 30308              By:_____________________________
            Attention: Large Corporate          Name:___________________________
            Banking Division                    Title:__________________________

                        Amendment No. 7 to Loan Agreement

                                       S-1

<PAGE>

Address:    500 Woodward Avenue, 9th Fl.        COMERICA BANK
            Detroit, Michigan 48226
            Attention: Large Corporate          By:_____________________________
            Banking Division                    Name:___________________________
                                                Title:__________________________

Address:    231 S. LaSalle Street               BANK OF AMERICA, N.A.
            Chicago, Illinois 60697
            Attention: Ronald A. Prince         By:_____________________________
            Banking Division                    Name:___________________________
                                                Title:__________________________

Address:    111 West Monroe, 10W                HARRIS TRUST AND SAVINGS BANK
            Chicago, Illinois 60603
            Attention: Large Corporate          By:_____________________________
            Banking Division                    Name:___________________________
                                                Title:__________________________

Address:    ___________________                 GOLDMAN SACHS CREDIT
                                                PARTNERS LP II
            ___________________
            ___________________                 By:_____________________________
            ___________________                 Name:___________________________
                                                Title:__________________________

Address:    6 High Ridge Park                   GE CAPITAL CFE, INC.
            Building 6 C, Mail Stop 4097-203
            Stamford, Ct., 06927-5100           By:_____________________________
            Attention: Commercial Finance       Name:___________________________
                                                Title:__________________________

Address:    1900 East Ninth Street              NATIONAL CITY BANK
            Cleveland, Ohio 44114
            Attention: Large Corporate          By:_____________________________
            Banking Division                    Name:___________________________
                                                Title:__________________________

Address:    250 West Huron                      JPMORGAN CHASE BANK
            Cleveland, Ohio 44113
            Attention: Large Corporate          By:_____________________________
            Banking Division                    Name:___________________________
                                                Title:__________________________

                        Amendment No. 7 to Loan Agreement

                                       S-2

<PAGE>

Address:    1404 East Ninth Street              FIFTH THIRD BANK
            Cleveland, Ohio 44114
            Attention: Large Corporate          By:_____________________________
            Banking Division                    Name:___________________________
                                                Title:__________________________

Address:    1350 Euclid Avenue                  U. S. BANK, NATIONAL
                                                ASSOCIATION
            Cleveland, Ohio                     (f\k\a Firstar Bank National
                                                Association)
            Attention: Commercial               By:_____________________________
            Banking Division                    Name:___________________________
                                                Title:__________________________

Address:    ________________________            _________________________
            ________________________
            ________________________            By: GRANDVIEW CAPITAL
                                                MANAGEMENT, LLC
                                                Name:___________________________
                                                Title:__________________________

Address:    110 South Stratford Road            BRANCH BANKING & TRUST CO.
            Suite 301
            Winston-Salem, NC 27104             By:_____________________________
            Attention: Large Corporate          Name:___________________________
            Banking Division                    Title:__________________________

Address:    ________________________            _________________________
            ________________________
            ________________________            By:_____________________________
            ________________________            Name:___________________________
                                                Title:__________________________

Address:    ________________________            _________________________
            ________________________
            ________________________            By:_____________________________
            ________________________            Name:___________________________
                                                Title:__________________________

                        Amendment No. 7 to Loan Agreement

                                       S-3

<PAGE>

Address:    ________________________            _________________________
            ________________________
            ________________________            By:_____________________________
            ________________________            Name:___________________________
                                                Title:__________________________

                        Amendment No. 7 to Loan Agreement

                                       S-4

<PAGE>

                          ACKNOWLEDGMENT OF GUARANTORS

         Each of the undersigned consents and agrees to and acknowledges the
terms of the foregoing Waiver Letter and Amendment No. 7 to Loan Agreement as of
the date first above written. Each of the undersigned further agrees that the
obligations of each of the undersigned pursuant to the Guaranty of Payment, the
Security Agreement and any other Loan Document to which any of the undersigned
is a party shall remain in full force and effect and be unaffected hereby.

                               ONCO Investment Company
                               Oglebay Norton Management Company
                               Oglebay Norton Industrial Sands, Inc.
                               Oglebay Norton Terminals, Inc.
                               Oglebay Norton Engineered Materials, Inc.
                               Michigan Limestone Operations, Inc.
                               Global Stone Corporation (successor by merger to
                                        Oglebay Norton Acquisition Company)
                               Global Stone Tenn Lutrell Company
                               Global Stone Chemstone Corporation
                               Global Stone St. Clair, Inc.
                               Global Stone Management Company
                               Global Stone Filler Products Company
                               Global Stone James River, Inc.
                               GS PC, Inc.
                               Oglebay Norton Minerals, Inc.
                               Oglebay Norton Specialty Minerals, Inc.
                               ON Coast Petroleum Company
                               ON Marine Services Company
                               ONCO WVA, Inc.
                               ONTEX, Inc.
                               Saginaw Mining Company
                               Erie Navigation Company
                               Erie Sand and Gravel Company
                               Erie Sand Steamship Co.
                               Mountfort Terminal, Ltd.
                               Serve-All Concrete, Inc.
                               S & J Trucking, Inc.

                               By: ___________________________________________
                                     Rochelle F. Walk, as Vice President and
                                     Secretary of each of the companies listed
                                     above.

                               Texas Mining, LP, by its General Partner
                               ONTEX, Inc.

                                     By: ______________________________________
                                              Rochelle F. Walk
                                              Vice President and Secretary

                        Amendment No. 7 to Loan Agreement

                                       S-5

<PAGE>

                               Global Stone PenRoc, LP, by its General Partner,
                               GS PC, Inc,.

                                     By: ______________________________________
                                              Rochelle F. Walk,
                                              Vice President and Secretary

                               Oglebay Norton Marine Services Company, L.L.C.,
                               by its Member ON Marine Services Company

                                     By: _________________________________
                                              Rochelle F. Walk
                                              Vice President and Secretary

                               Oglebay Norton Marine Management Company, LLC. by
                               its member Oglebay Norton Marine Services Company

                                     By: _________________________________
                                              Rochelle F. Walk
                                              Vice President and Secretary

                               Global Stone Portage, LLC by its member
                               ___________________________

                                     By: _________________________________
                                              Rochelle F. Walk
                                              Vice President and Secretary

                        Amendment No. 7 to Loan Agreement

                                       S-61996 Combined Incentive Non-Qualified Stock Option Plan (Amended)

  
 Exhibit 4.1

  
 ALLIANCE BANCSHARES CALIFORNIA 
  
 1996 COMBINED INCENTIVE AND NON-QUALIFIED STOCK OPTION PLAN

 (Amended June 1996) 
 (Amended April 30, 2003) 
  
 1.    Purpose

  
 The purpose of the Alliance Bancshares California 1996
Combined Incentive and Non-Qualified Stock Option Plan is to strengthen Alliance Bancshares California and its Subsidiaries by providing to participating officers, employees and directors added incentive for high levels of performance and for
unusual efforts to increase the earnings of the Company and its Subsidiaries. This Plan seeks to accomplish these purposes and achieve these results by providing a means whereby such officers, employees and directors may purchase shares of the
Common Stock of the Company pursuant to stock options granted in accordance with this Plan. 
  
 2.    Definitions 
  
 For purposes of this Plan, the following terms shall have the following meanings: 
  
 (a)  “Administrator”—This term shall mean the administrative body which administers this Plan as determined under
Section 3 of this Plan. 
  
 (b)  “Board”—This term shall mean the Board of Directors of the Company. 
  
 (c)  “Common Stock”—This term shall mean shares of the Company’s common stock, subject to adjustment
pursuant to Section 10, “Adjustment Upon Changes in Capitalization,” of this Plan. 
  
 (d)  “Company”—This term shall mean Alliance Bancshares California. 
  
 (e)  “Eligible Participant”—This
term shall mean: (i) a full-time salaried officer or employee of the Company and/or any Subsidiary who has completed six months of Employment or (ii) a director of the Company and/or any Subsidiary. 
  
 (f)  “Employment”—This term shall
mean, with respect to an officer or employee, employment with the Company or any Subsidiary, and with respect to a director, service as a director of the Company or any Subsidiary. 
  
 (g)  “Fair Market Value”—This term shall mean the fair market value of the Common
Stock as determined in accordance with any reasonable valuation method selected by the Administrator. 
  
 (h)  “Incentive Stock Option”—This term shall mean a Stock Option which is an “incentive stock option”
within the meaning of Section 422A of the Internal Revenue Code of 1986, as amended. 
  
 (i)  “IRC”—This term shall mean the Internal Revenue Code of 1986, as amended. 
  
 (j)  “Non-Qualified Stock
Option”—This term shall mean a Stock Option which does not qualify as an Incentive Stock Option. 
  
 (k)  “Option Shares”—This term shall mean shares of Common Stock covered by and subject to any outstanding
unexercised Stock Option granted pursuant to this Plan. 
  
 (l)  “Optionee”—This term shall mean any person to whom a Stock Option has been granted pursuant to this Plan, provided that at least part of the Stock Option is outstanding and unexercised.

  
 (m)  “Plan”—This
term shall mean the Alliance Bancshares California 1996 Combine Incentive and Non-Qualified Stock Option Plan as embodied herein and as may be amended from time to time in accordance with the terms hereof and applicable law. 
  

 1 

 (n)  “Stock Option”—This term shall mean a stock option granted
under this Plan. 
  
 (o)  “Stock
Option Agreement”—This term shall mean, with respect to a Stock Option, the written agreement evidencing the Stock Option. 
  
 (p)  “Subsidiary”—This term shall mean an entity with respect to which the Company owns, directly or indirectly,
a majority of the voting interests. 
  
 (q)  “10% Shareholder”—This term shall mean any Eligible Participant who at the date of grant of a Stock Option to such Participant holds either 10% of the combined voting power (as defined in Section 194.5 of
the California Corporations Code) of all classes of securities of the Company or who owns (within the meaning of Section 424(d) of the IRC) more than 10% of the total combined voting power of all classes of capital stock of the Company. 

 
 3.    Administration 
  
 (a)  This Plan shall be administered by the Board or by a Board
committee to which administration of this Plan, or of part of this Plan, is delegated by the Board (in either case, the “Administrator”). The Board shall appoint and remove members of the committee in its discretion in accordance with
applicable laws. At the Board’s discretion, the committee may be comprised solely of “non-employee directors” within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934 and/or “outside directors” within the
meaning of Section 162(m) of the IRC. The foregoing notwithstanding, the Administrator may delegate nondiscretionary administrative duties to such employees of the Company as it deems proper and the Board, in its absolute discretion, may at any
time and from time to time exercise any and all rights and duties of the Administrator under this Plan. Notwithstanding any provision in this Plan to the contrary, in the event that the Administrator is acting with respect to a Stock Option granted
or to be granted to a member of the Board, such Board member shall abstain from any vote taken by the Administrator with respect to such Stock Option (or, if such Board member does vote on the matter, his vote will not be counted in determining
whether the matter in question has been approved). 
  
 (b)  Subject to the other provisions of this Plan, the Administrator shall have the authority, in its discretion: (i) to grant Stock Options; (ii) to determine the Fair Market Value of the Common Stock subject to Stock Options;
(iii) to determine the exercise price of Stock Options granted; (iv) to determine the Eligible Participants to whom, and the time or times at which, Stock Options shall be granted, and the number of shares subject to each Stock Option; (v) to
interpret this Plan; (vi) to prescribe, amend, and rescind rules and regulations relating to this Plan; (vii) to determine the terms and provisions of each Stock Option granted and the form of the related Stock Option Agreement (which terms,
provisions and form may be different for each Stock Option), including but not limited to, the time or times at which Stock Options shall be exercisable; (viii) to modify or amend any Stock Option, including reducing the exercise to not less than
the Fair Market Value on the date of the modification, or grant a new Stock Option to replace an existing Stock Option (with the consent of the Optionee if the modification or amendment is adverse to the Optionee or the new Stock Option has material
adverse terms to the Optionee when compared with the existing Stock Option); (ix) to defer (with the consent of the Optionee) the exercise date of any Stock Option; (x) to authorize any person to execute on behalf of the Company any instrument
evidencing the grant of a Stock Option; and (xi) to make all other determinations deemed necessary or advisable for the administration of this Plan. The Administrator may delegate nondiscretionary administrative duties to such employees of the
Company as it deems proper. 
  
 (c)  All questions of
interpretation, implementation, and application of this Plan shall be determined by the Administrator. Such determinations shall be final and binding on all persons. 
  
 4.    Shares Subject to this Plan 
  
 Subject to adjustments as provided in Section 10 of this Plan, the maximum number of shares of Common Stock which may be
issued upon exercise of all Stock Options granted under this Plan is 800,000. If a Stock 

  

 2 

 
Option shall be canceled or surrendered, or shall expire for any reason without having been exercised in full, then the Option Shares represented thereby
which are not purchased or which may not be purchased because the Stock Option is not fully exercisable shall again be available for grants of Stock Options under this Plan. 
  
 5.    Grants of Stock Options 
  
 (a)  Grant.    Subject to the express provisions of this Plan, the Administrator in its
sole and absolute discretion may grant Stock Options at the price(s) and time(s), on the terms and conditions and to such Eligible Participants as it deems advisable and specifies in the respective grants, subject to the limitations and restrictions
set forth in this Plan and applicable approvals. An Eligible Participant may receive more than one Stock Option. No Eligible Participant, Optionee or other person shall have any claim or right to be granted a Stock Option under this Plan. No person
other than the Administrator is authorized to grant Stock Options under this Plan, and no oral or written agreement by any person on behalf of the Company relating to this Plan or any Stock Option granted hereunder is authorized, and such may not
bind the Company or the Administrator to grant any Stock Option to any person. 
  
 (b)  Date of Grant and Rights of Optionee.    The determination of the Administrator to grant a Stock Option shall not in any way constitute or be deemed to constitute an
obligation of the Company, or a right of the Eligible Participant who is the proposed subject of the grant, and shall not constitute or be deemed to constitute the grant of a Stock Option hereunder unless and until both the Company and the Eligible
Participant have executed and delivered to the other a Stock Option Agreement in the form then required by the Administrator evidencing the grant of the Stock Option, together with such other instrument or instruments as may be required by the
Administrator pursuant to this Plan; provided, however, that the Administrator may fix the date of grant as any date on or after the date of its final determination to grant the Stock Option (or if no date is fixed, then the date of
grant shall be the date on which the determination was finally made by the Administrator to grant the Stock Option), and such date shall be set forth in the Stock Option Agreement. The date of grant as so determined shall be deemed the date of grant
of the Stock Option for purposes of this Plan. 
  
 (c)  Limitation on Number of Shares.    No Eligible Participant may receive in any one year Stock Options to purchase more than 100,000 shares of Common Stock. 
  
 6.    Exercise and Exercise Price of Stock Options 
  
 (a)  Exercise.    Each Stock Option
shall be exercisable in such increments, which need not be equal, and upon such contingencies as the Administrator shall determine at the time of grant of the Stock Option; provided, however, that (i) each Stock Option must be
exercisable at the rate of at least 20% per year over five years from the date the Stock Option is granted and (ii) if an Optionee shall not in any given period exercise such part of the Stock Option which has become exercisable during that period,
the Optionee’s right to exercise such part of the Stock Option shall continue until expiration of the Stock Option or any part thereof as may be provided in the related Stock Option Agreement. No Stock Option or part thereof shall be
exercisable except with respect to whole shares of Common Stock, and fractional share interests shall be disregarded except that they may be accumulated. 
  
 (b)  Exercise Price.    The exercise price of any Stock Option shall be determined by the Administrator, in its sole
and absolute discretion, upon the grant of a Stock Option; provided, however, that the exercise price of any Stock Option shall not be less than 100% of the Fair Market Value of the Common Stock (110% of the Fair Market Value for any Stock
Option granted to any 10% Shareholder). 
  
 (c)  Notice and Payment.    A Stock Option may be exercised by written notice delivered to the Company specifying the number of Option Shares with respect to which the Stock Option is being exercised,
together with concurrent payment in full of the exercise price in cash, by check or by other means set forth in the related Stock Option Agreement or acceptable to the Administrator. If the Stock Option is being exercised by any person or 

  

 3 

 
persons other than the Optionee, said notice shall be accompanied by proof, satisfactory to counsel for the Company, of the right of such person or persons
to exercise the Stock Option. The Company’s receipt of notice of exercise without concurrent receipt of the full amount of the exercise price shall not be deemed an exercise of a Stock Option by an Optionee, and the Company shall have no
obligation to an Optionee for any Option Shares unless and until full payment of the exercise price is received by the Company and all of the terms and provisions of this Plan and the related Stock Option agreement have been fully complied with.

  
 (d)  Compliance With
Law.    The Company shall have no obligation to issue Option Shares upon exercise of any Stock Option, and an Optionee shall have no right or claim to such Option Shares, unless and until: (i) payment in full has been
received by the Company; (ii) in the opinion of the counsel for the Company, all applicable requirements of law and of regulatory bodies having jurisdiction over such issuance and delivery have been fully complied with; and (iii) if required by
federal or state law or regulation, the Optionee shall have paid to the Company the amount, if any, required to be withheld on the amount deemed to be compensation to the Optionee as a result of the exercise of his or her Stock Option, or made other
arrangements satisfactory to the Company, in its sole discretion, to satisfy applicable income tax withholding requirements. 
  
 (e)  Reorganization.    Notwithstanding any provision in any Stock Option Agreement pertaining to the time of
exercise of a Stock Option, or part thereof, upon adoption by the requisite holders of the outstanding shares of Common Stock of any plan of dissolution, liquidation, reorganization, merger, consolidation or sale of all or substantially all of the
assets of the Company to another person or entity which would, upon consummation, result in termination of a Stock Option in accordance with Section 11 hereof, all Stock Options previously granted may, in the discretion of the Administrator, become
immediately exercisable as to all unexercised Option Shares for such period of time as may be determined by the Administrator, but in any event not less than 30 days, on the condition that the terminating event is consummated. If such Terminating
Event is not consummated, Stock Options shall be exercisable in accordance with their respective terms. 
  
 7.    Nontransferability of Stock Options 
  
 Each Stock Option shall, by its terms, be nontransferable by the Optionee other than by will or the laws of descent and distribution, and shall be
exercisable during the Optionee’s lifetime only by the Optionee. 
  
 8.    Continuation of Employment 
  
 Nothing contained in this Plan (or in any Stock Option Agreement) shall obligate the Company or any Subsidiary to employ or continue to employ any Optionee or any Eligible Participant for any period of time or interfere in any way with the
right of the Company or a Subsidiary to reduce or increase the Optionee’s or Eligible Participant’s compensation. 
  
 9.    Termination of Options 
  
 (c)  Except as provided otherwise in the Stock Option Agreement related to the Stock Option, each Stock Option shall terminate and expire at the
earliest to occur of: (a) its stated expiration date, which shall be not later than ten years from the date of grant (or five years from the date of grant for any Stock Option granted to a 10% Shareholder); (b) one year following termination of the
Optionee’s Employment if termination is the result of death or disability; (c) upon termination of the Optionee’s Employment, if termination of Employment is for Cause (unless within 30 days thereafter the Administrator reinstates such
Option and permits the exercise of the Stock Option); (d) 30 days following termination of the Optionee’s Employment if termination is for any reason other than death, disability or for Cause; and (e) at the time set forth in Section 11 of this
Plan. Unless otherwise approved by the Administrator, following termination of Employment (other than for Cause), each Stock Option shall be exercisable only as to those increments, if any, which had become exercisable as of the date on which such
Optionee’s Employment terminated, and increments which had not become exercisable as of such date shall expire and terminate automatically on such date. 
  

 4 

 (d)  Termination of Employment for Cause shall mean, unless otherwise defined in the related
Stock Option Agreement: (i) in the case of an employee, termination for malfeasance or gross misfeasance in the performance of duties or conviction of illegal activity in connection therewith and, in any event, the determination of the Administrator
with respect thereto shall be final and conclusive; and (ii) in the case of a director, removal as director of the Company or any Subsidiary pursuant to Sections 302 and 304 of the California Corporations Code or removal pursuant to the exercise of
regulatory authority by the Federal Deposit Insurance Corporation, the California Commissioner of Financial Institutions or any other supervisory agency. 
  
 (e)  An Optionee shall be deemed to be “disabled” if it shall appear to the Administrator, upon written certification delivered to the
Company of a qualified licensed physician, that the Optionee has become permanently and totally disabled within the meaning of Section 422(c)(6) of the IRC. 
  
 10.    Adjustment Upon Changes in Capitalization 
  
 If the outstanding shares of Common Stock of the Company are increased or decreased, or changed into or exchanged for a different number or kind of shares
or securities of the Company, through a reorganization, merger, recapitalization, reclassification, stock split, stock dividend, stock consolidation, or otherwise, without consideration to the Company, an appropriate and proportionate adjustment
shall be made in the number and kind of shares as to which Stock Options may be granted. A corresponding adjustment changing the number or kind of Option Shares and the exercise prices per share allocated to unexercised Stock Options, or portions
thereof, which shall have been granted prior to any such change, shall likewise be made. Such adjustments shall be made without change in the total price applicable to the unexercised portion of the Stock Option, but with a corresponding adjustment
in the price for each Option Share subject to the Stock Option. Adjustments under this Section shall be made by the Administrator, whose determination as to what adjustments shall be made, and the extent thereof, shall be final and conclusive. No
fractional shares of stock shall be issued or made available under this Plan on account of such adjustments, and fractional share interests shall be disregarded, except that they may be accumulated. 
  
 11.    Terminating Events 
  
 Not less than 30 days prior to dissolution or liquidation of the Company, or
upon consummation of a plan of reorganization, merger or consolidation of the Company with one or more entities, as a result of which the Company is not the surviving entity, or upon the sale of all or substantially all of the assets of the Company
to another person or entity, or in the event of any other transaction involving the Company where there is a change in ownership of at least 25%, except as may result from a transfer of shares to another corporation in exchange for at least 80%
control of that corporation (a “Terminating Event”), the Administrator shall notify each Optionee of the pendency of the Terminating Event. Upon delivery of said notice, any Option granted prior to the Terminating Event shall be,
notwithstanding the provisions of Section 6 hereof, exercisable in full and not only as to those shares with respect to which installments, if any, have then accrued, subject, however, to earlier expiration or termination as provided elsewhere in
this Plan. Upon the date 30 days after delivery of said notice, any Stock Option or portion thereof not exercised shall terminate, and upon the effective date of the Terminating Event, this Plan and any Stock Options granted thereunder shall
terminate, unless provision is made in connection with the Terminating Event for assumption of Stock Options or new options covering stock of a successor employer corporation, or a parent or subsidiary corporation thereof, with appropriate
adjustments as to number and kind of shares and prices. All Stock Options theretofore granted under this Plan shall become immediately exercisable, unless provision is made in connection with such transaction for assumption of Stock Options
theretofore granted, or substitution for such Stock Options with new stock options covering stock of a successor employer entity, or a parent or subsidiary corporation thereof, with appropriate adjustments as to the number and kind of shares and
prices. 
  

 5 

 12.    Amendment of this Plan 
  
 The Board may at any time and from time to time suspend or amend this Plan; provided, however, that, without:
(i) the affirmative vote or written consent of the holders of at least a majority of the outstanding shares of Common Stock entitled to vote at a duly held meeting of shareholders of the Company, and (ii) the affirmative vote or written consent of
the holders of a majority of the disinterested shares represented and voting at the meeting (or if the amendment or modification is approved by written consent of the majority of the outstanding shares, the approval of the majority of the
disinterested shares outstanding) and (iii) the approval of all applicable regulatory authorities whose approval is required, no amendment or modification may: 
  

(a)  Materially increase the number of securities which may be issued under this Plan or increase the maximum number of
shares which may be purchased pursuant to Stock Options granted under this Plan, either in the aggregate or by an individual; 
  
 (b)  Materially modify the requirements to become an Eligible Participant; 
  
 (c)  Provide that a Stock Option may be granted
with an exercise price less than the Fair Market Value of the Common Stock on the date of grant; 
  
 (d)  Increase the maximum term of any Stock Option; 
  
 (e)  Permit Stock Options to be granted to any person who is not an Eligible Participant;

  
 (f)  Change any provision of this
Plan which would cause any outstanding Incentive Stock Option not to be an incentive stock option under the IRC; or 
  
 (g)  Materially increase benefits to any key employee who is subject to the restrictions of Section 16 of the Securities
Exchange Act of 1934. 
  
 Such amendment or modification shall be
deemed adopted as of the date of the action of the Board effecting such amendment or modification and shall be effective immediately, unless otherwise provided therein, subject to approval thereof within twelve months before or after the date of the
Board action by any requisite shareholder vote. 
  
 13.    Privileges of Stock Ownership; Regulatory Law Compliance; Notice of Sale 
  
 No Optionee shall be entitled to the privileges of stock ownership as to any Option Share not actually issued and delivered. No Option Shares may be
purchased upon the exercise of a Stock Option unless and until all then applicable requirements of all regulatory agencies having jurisdiction and all applicable requirements of the securities exchanges upon which securities of the Company are
listed (if any) shall have been fully complied with. Each Optionee shall, not more than five days after each sale or other disposition of Option Shares acquired pursuant to the exercise of Stock Options, give the Company notice in writing of such
sale or other disposition. In the event that the Optionee disposes of any Common Stock acquired by the exercise of an Incentive Stock Option within the two-year period following grant of the Stock Option, or within the one-year period following
exercise of the Stock Option, the Company shall have the right to require the Optionee to remit to the Company an amount sufficient to satisfy all federal, state and local withholding tax requirements as a condition to registration of the transfer
of such Common Stock on the Company’s books. 
  
 14.    Effective Date and Expiration of Plan 
  
 This Plan was adopted as of February 23, 1996 and shall expire on February 23, 2006 unless sooner terminated by the Board. The termination or expiration of this Plan shall not affect any Stock Options theretofore
granted. 
  

 6 

 15.    Financial Statements to Optionees 
  
 The Company shall provide to each Optionee financial statements of the
Company at least annually. 
  
 16.    Notices

  
 All notices and demands of any kind which the
Administrator, any Optionee, Eligible Participant, or other person may be required or desires to give under the terms of this Plan shall be in writing. Delivery by mail shall be deemed made at the expiration of the third day after the day of
mailing, except for notice of the exercise of a Stock Option and payment of the Stock Option exercise price, both of which must be actually received by the Company. 
  
 17.    Limitations on Obligations of the Company 
  
 All obligations of the Company arising under or as a result of this Plan or Stock Options granted hereunder shall constitute
general unsecured obligations of the Company. Neither the Administrator, nor any director or officer of the Company or Subsidiary shall be liable for any debt, obligation, cost or expense hereunder. 
  
 18.    Severability 
  
 If any provision of this Plan as applied to any person or to any
circumstances shall be adjudged by a court of competent jurisdiction to be void, invalid, or unenforceable, the same shall in no way affect any other provision hereof, the application of any such provision in any other circumstances, or the validity
of enforceability hereof. 
  
 19.    Successors

  
 This Plan shall be binding upon the respective
successors, assigns, heirs, executors, administrators, guardians and personal representatives of the Company and Optionees. 
  

 7

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