Document:

Security Agreement, dated as of January 31, 2005

  
 Exhibit 10.3

  
 SECURITY AGREEMENT 
  
 SECURITY AGREEMENT, dated January 31, 2005, made by each of the Grantors
referred to below, in favor of Silver Point Finance, LLC, a Delaware limited liability company (“Silver Point”), in its capacity as collateral agent for the Agents and the Lenders (as such terms are defined below) party to the Financing
Agreement referred to below (in such capacity, together with any successors and assigns, if any, the “Collateral Agent”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Oglebay Norton Company, an Ohio corporation (the “Parent”), Erie Navigation Company, a
Pennsylvania corporation (“Erie Navigation”), Erie Sand and Gravel Company, a Pennsylvania corporation (“Erie Sand and Gravel”), Erie Sand Steamship Co., a Delaware corporation (“Erie Steamship”),
Global Stone Chemstone Corporation, a Delaware corporation (“GS Chemstone”), Global Stone Filler Products, Inc., a Delaware corporation (“GS Filler”), Global Stone James River, Inc., a Delaware corporation
(“GS James River”), Global Stone PenRoc LP, a Pennsylvania limited partnership (“GS PenRoc”), Global Stone Portage, LLC, an Indiana limited partnership (“GS Portage”), Global Stone St. Clair Inc., a
Delaware corporation (“GS St. Clair”), Global Stone Tenn Luttrell Company, a Delaware corporation (“GS Tenn Luttrell”), Michigan Limestone Operations, Inc., a Michigan corporation (“Michigan
Limestone”), Mountfort Terminal, Ltd., a Pennsylvania corporation (“Mountfort”), Oglebay Norton Industrial Sands, Inc., a California corporation (“ON Industrial Sands”), Oglebay Norton Marine Services
Company, L.L.C., a Delaware limited liability company (“Marine Services”), Oglebay Norton Specialty Minerals, Inc., an Ohio corporation (“ON Specialty”), Oglebay Norton Terminals, Inc., an Ohio corporation
(“ON Terminals”), Texas Mining, LP, a Delaware limited partnership (“Texas Mining” and together with the Parent, Erie Navigation, Erie Sand and Gravel, Erie Steamship, GS Chemstone, GS Filler, GS James River, GS
PenRoc, GS Portage, GS St. Clair, GS Tenn Luttrell, Michigan Limestone, Mountfort, ON Industrial Sands, Marine Services, ON Specialty and ON Terminals, each a “Borrower” and collectively, the “Borrowers”), each
subsidiary of the Parent listed as a “Guarantor” on the signature pages thereto (together with any other Person that guarantees all or any part of the Obligations (as defined in the Financing Agreement), each a “Guarantor” and
collectively, the “Guarantors”, and, together with the Borrowers, each a “Grantor” and collectively, the “Grantors”), the lenders from time to time party thereto (each a “Lender”
and collectively, the “Lenders”), the Collateral Agent, Silver Point, in its capacities as syndication agent and lead arranger, Wells Fargo Foothill, Inc., a California corporation, in its capacity as administrative agent for the
Lenders (in such capacity, together with any successors and assigns, 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, each a “Documentation Agent” and collectively, the “Documentation Agents”) are parties to a Financing
Agreement, dated as of January 31, 2005 (such agreement, as amended, restated, supplemented or otherwise modified from time to time, including any replacement agreement therefor, being hereinafter referred to as the “Financing
Agreement”); 
  

 WHEREAS, pursuant to the Financing Agreement, the Lenders have agreed to make certain term loans and
certain revolving loans, which revolving loans will include a subfacility for the issuance of letters of credit (each a “Loan” and collectively, the “Loans”), to the Borrowers; 
  
 WHEREAS, it is a condition precedent to the Lenders making any Loan or making
any other financial accommodation to the Borrowers pursuant to the Financing Agreement that each Grantor shall have executed and delivered to the Collateral Agent a security agreement providing for the grant to the Collateral Agent for the benefit
of the Agents and the Lenders of a security interest in all personal property of such Grantor; 
  
 WHEREAS, the Grantors are mutually dependent on each other in the conduct of their respective businesses as an integrated operation, with the credit needed from time to time by each Grantor often being provided
through financing obtained by the other Grantors and the ability to obtain such financing being dependent on the successful operations of all of the Grantors as a whole; and 
  
 WHEREAS, each Grantor has determined that the execution, delivery and performance of this Agreement directly benefit, and
are in the best interest of, such Grantor; 
  
 NOW, THEREFORE, in
consideration of the premises and the agreements herein and in order to induce the Lenders to make and maintain the Loans, the Letter of Credit Accommodations and other financial accommodations to the Borrowers pursuant to the Financing Agreement,
the Grantors hereby jointly and severally agree with the Collateral Agent, for the benefit of the Agents and the Lenders, as follows: 
  
 SECTION 1 Definitions. 
  
 (a) Reference is hereby made to the Financing Agreement for a statement of the terms thereof. All terms used in this Agreement and the recitals hereto
which are defined in the Financing Agreement or in Article 9 of the Uniform Commercial Code as in effect from time to time in the State of New York (the “Code”) and which are not otherwise defined herein shall have the same meanings
herein as set forth therein; provided that terms used herein which are defined in the Code as in effect in the State of New York on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of such
statute except as the Collateral Agent may otherwise determine. 
  
 (b) The following terms shall have the respective meanings provided for in the Code: “Accounts”, “Account Debtor”, “Cash Proceeds”, “Chattel Paper”, “Commercial Tort Claim”, “Commodity
Account”, “Commodity Contracts”, “Deposit Account”, “Documents”, “Electronic Chattel Paper”, “Equipment”, “Fixtures”, “General Intangibles”, “Goods”,
“Instruments”, “Inventory”, “Investment Property”, “Letter-of-Credit Rights”, “Noncash Proceeds”, “Payment Intangibles”, “Proceeds”, “Promissory Notes”, "Record”,
“Security Account”, “Software”, and “Supporting Obligations”. 
  

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 (c) As used in this Agreement, the following terms shall have the respective meanings indicated below,
such meanings to be applicable equally to both the singular and plural forms of such terms: 
  
 “Copyright Licenses” means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as licensee or licensor and providing for the grant of any right to use or sell any
works covered by any copyright (including, without limitation, all Copyright Licenses set forth in Schedule II hereto). 
  
 “Copyrights” means all domestic and foreign copyrights, whether registered or unregistered, including, without limitation, all copyright
rights throughout the universe (whether now or hereafter arising) in any and all media (whether now or hereafter developed), in and to all original works of authorship fixed in any tangible medium of expression, acquired or used by any Grantor
(including, without limitation, all copyrights described in Schedule II hereto), all applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Copyright Office
or in any similar office or agency of the United States or any other country or any political subdivision thereof), and all reissues, divisions, continuations, continuations in part and extensions or renewals thereof. 
  
 “Intellectual Property” means the Copyrights, Trademarks and
Patents. 
  
 “Licenses” means the Copyright
Licenses, the Trademark Licenses and the Patent Licenses. 
  
 “Patent Licenses” means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as licensee or licensor and providing for the grant of any right to manufacture, use or sell any invention
covered by any Patent (including, without limitation, all Patent Licenses set forth in Schedule II hereto). 
  
 “Patents” means all domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions, trade secrets,
ideas, concepts, methods, techniques, processes, proprietary information, technology, know-how, formulae, rights of publicity and other general intangibles of like nature, now existing or hereafter acquired (including, without limitation, all
domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions, trade secrets, ideas, concepts, methods, techniques, processes, proprietary information, technology, know-how and formulae described in Schedule II
hereto), all applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office, or in any similar office or agency of the United States or
any other country or any political subdivision thereof), and all reissues, divisions, continuations, continuations in part and extensions or renewals thereof. 
  

“Trademark Licenses” means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as licensor or
licensee and providing for the grant of any right concerning any Trademark, together with any goodwill connected with and symbolized by any such trademark licenses, contracts or agreements and the right to prepare for sale or lease and sell or lease
any and all Inventory now or hereafter owned by any Grantor and now or hereafter covered by such licenses (including, without limitation, all Trademark Licenses described in Schedule II hereto). 
  

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 “Trademarks” means all domestic and foreign trademarks, service marks, collective marks,
certification marks, trade names, business names, d/b/a’s, Internet domain names, trade styles, designs, logos and other source or business identifiers and all general intangibles of like nature, now or hereafter owned, adopted, acquired or
used by any Grantor (including, without limitation, all domestic and foreign trademarks, service marks, collective marks, certification marks, trade names, business names, d/b/a's, Internet domain names, trade styles, designs, logos and other source
or business identifiers described in Schedule II hereto), all applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any state thereof or any other country or any political subdivision thereof), and all reissues, extensions or renewals thereof, together with all goodwill of the business symbolized by such marks and
all customer lists, formulae and other Records of any Grantor relating to the distribution of products and services in connection with which any of such marks are used. 
  
 SECTION 2. Grant of Security Interest. As collateral security for all of the Obligations (as defined in Section 3
hereof), each Grantor hereby pledges and assigns to the Collateral Agent (and its agents and designees, including, without limitation, the Administrative Agent), and grants to the Collateral Agent (and its agents and designees, including, without
limitation, the Administrative Agent), for the benefit of the Agents and the Lenders, a continuing security interest in, all personal property of such Grantor, wherever located and whether now or hereafter existing and whether now owned or hereafter
acquired, of every kind and description, tangible or intangible (the “Collateral”), including, without limitation, the following: 
  
 (a) all Accounts; 
  
 (b) all Chattel Paper (whether tangible or electronic); 
  
 (c) the Commercial Tort Claims specified on Schedule VI hereto; 
  

(d) all Deposit Accounts, all cash, and all other property from time to time deposited therein and the monies and property in the possession or under
the control of any Agent or any Lender or any affiliate, representative, agent or correspondent of any Agent or any Lender; 
  
 (e) all Documents; 
  
 (f) all Equipment; 
  
 (g) all Fixtures; 
  
 (h) all General Intangibles (including, without limitation, all Payment Intangibles); 
  
 (i) all Goods; 
  
 (j) all Instruments (including, without limitation, Promissory Notes); 
  

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 (k) all Inventory; 
  
 (l) all Investment Property; 
  
 (m) all Intellectual Property, and all Licenses; 
  
 (n) all Letter-of-Credit Rights; 
  
 (o) all Supporting Obligations; 
  
 (p) all other tangible and intangible personal property of such Grantor (whether or not subject to the Code), including, without limitation, all bank and
other accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits, income, benefits, substitutions and replacements of and to any of the property of such Grantor described in the preceding clauses
of this Section 2 (including, without limitation, any proceeds of insurance thereon and all causes of action, claims and warranties now or hereafter held by such Grantor in respect of any of the items listed above), and all books, correspondence,
files and other Records, including, without limitation, all tapes, disks, cards, Software, data and computer programs in the possession or under the control of such Grantor or any other Person from time to time acting for such Grantor that at any
time evidence or contain information relating to any of the property described in the preceding clauses of this Section 2 or are otherwise necessary or helpful in the collection or realization thereof; and 
  
 (q) all Proceeds, including all Cash Proceeds and Noncash Proceeds, and
products of any and all of the foregoing Collateral; 
  
 in each case howsoever
such Grantor's interest therein may arise or appear (whether by ownership, security interest, claim or otherwise). 
  
 SECTION 3. Security for Obligations. The security interest created hereby in the Collateral constitutes continuing collateral security for all of
the following obligations, whether now existing or hereafter incurred (the “Obligations”): 
  
 (a) the prompt payment by each Grantor, as and when due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or
otherwise), of all amounts from time to time owing by it in respect of the Financing Agreement and the other Loan Documents, including, without limitation, (i) all Obligations (as defined in the Financing Agreement) (including, without limitation,
all interest, fees and expenses that accrue after the commencement of any Insolvency Proceeding of any Loan Party, whether or not the payment of such interest, fees or expenses are unenforceable or are not allowable in whole or in part, due to the
existence of such Insolvency Proceeding), (ii) all Letter of Credit Obligations and all Banking Services Obligations, (iii) in the case of a Guarantor, all amounts from time to time owing by such Grantor in respect of its guaranty made pursuant to
Article XII of the Financing Agreement or under any other Guaranty to which it is a party, including all obligations guaranteed by such Grantor and (iv) all commissions, charges, indemnifications and all other amounts due or to become due under any
Loan Document; and 
  

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 (b) the due performance and observance by each Grantor of all of its other obligations from time to time
existing in respect of the Loan Documents. 
  
 SECTION 4.
Representations and Warranties. Each Grantor jointly and severally represents and warrants as follows: 
  
 (a) Schedule I hereto sets forth (i) the exact legal name of each Grantor and (ii) the organizational identification number of each Grantor or states that
no such organizational identification number exists. 
  
 (b) Each
Grantor (i) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the state, province or other applicable jurisdiction of its organization as set forth on Schedule
I hereto, (ii) has all requisite power and authority to conduct its business as now conducted and as presently contemplated and to execute, deliver and perform this Agreement and each other Loan Document to be executed and delivered by it pursuant
hereto and to consummate the transactions contemplated hereby and thereby, and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the
transaction of its business makes such qualification necessary, except to the extent that the failure to be so qualified could not reasonably be expected to have a Material Adverse Effect. 
  
 (c) The execution, delivery and performance by each Grantor of this Agreement
and each other Loan Document to which such Grantor is or will be a party (i) have been duly authorized by all necessary corporate, limited liability company, or limited partnership, as the case may be, action, (ii) do not and will not contravene its
charter or by-laws, its limited liability company or operating agreement or its certificate of partnership or partnership agreement, as applicable, or any applicable law or any contractual restriction binding on or otherwise affecting such Grantor
or any of its properties, (iii) do not and will not result in or require the creation of any Lien (other than the pursuant to any Loan Document) upon or with respect to any of its properties and (iv) do not and will not result in any material
default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to its operations or any of its properties. 
  
 (d) This Agreement is, and each other Loan Document to which any Grantor is
or will be a party, when executed and delivered, will be, a legal, valid and binding obligation of such Grantor, enforceable against such Grantor in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws. 
  
 (e) There is
no pending or, to the best knowledge of any Grantor, threatened action, suit, proceeding or claim affecting any Grantor or its properties, before any Governmental Authority or any arbitrator, or any order, judgment or award by any Governmental
Authority or arbitrator, that may adversely affect the grant by any Grantor, or the perfection, of the security interest purported to be created hereby in the Collateral, or the exercise by the Collateral Agent of any of its rights or remedies
hereunder. 
  
 (f) All Federal and foreign and all material state
and local tax returns and other material reports required by applicable law to be filed by any Grantor have been filed, or 

  

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extensions have been obtained, and all taxes, assessments and other governmental charges imposed upon any Grantor or any property of any Grantor (including,
without limitation, all federal income and social security taxes on employees' wages) and which have become due and payable on or prior to the date hereof have been paid, except to the extent contested in good faith by proper proceedings which stay
the imposition of any penalty, fine or Lien resulting from the non-payment thereof and with respect to which adequate reserves have been set aside for the payment thereof in accordance with GAAP. 
  
 (g) All Equipment, Fixtures, Goods and Inventory now existing are, and all
Equipment, Fixtures, Goods and Inventory hereafter existing will be, located and/or based at the addresses specified therefor in Schedule III hereto. Each Grantor's chief place of business and chief executive office, the place where such Grantor
keeps its Records concerning Accounts and all originals of all Chattel Paper are located at the addresses specified therefor in Schedule III hereto (as amended, supplemented or otherwise modified from time to time in accordance with the terms
hereof). None of the Accounts is evidenced by Promissory Notes or other Instruments. Set forth in Schedule IV hereto is a complete and accurate list, as of the date of this Agreement, of each Deposit Account, Securities Account and Commodities
Account of each Grantor, together with the name and address of each institution at which each such Account is maintained, the account number for each such Account and a description of the purpose of each such Account. Set forth in Schedule II hereto
is (i) a complete and correct list of each trade name used by each Grantor and (ii) the name of, and each trade name used by, each Person from which such Grantor has acquired any substantial part of the Collateral within four months prior to the
date hereof. 
  
 (h) Each Grantor has delivered to the Collateral
Agent complete and correct copies of each License described in Schedule II hereto, including all schedules and exhibits thereto, which represents all of the Licenses existing on the date of this Agreement. Each such License sets forth the entire
agreement and understanding of the parties thereto relating to the subject matter thereof, and there are no other agreements, arrangements or understandings, written or oral, relating to the matters covered thereby or the rights of any Grantor or
any of its Affiliates in respect thereof. Each License now existing is, and each other License will be, the legal, valid and binding obligation of the parties thereto, enforceable against such parties in accordance with its terms. No default under
any license by any such party has occurred, nor does any defense, offset, deduction or counterclaim exist thereunder in favor of any such party. 
  
 (i) The Grantors own and control, or otherwise possess adequate rights to use, all Trademarks, Patents and Copyrights, which are the only trademarks,
patents, copyrights, inventions, trade secrets, proprietary information and technology, know-how, formulae, rights of publicity necessary to conduct their business in substantially the same manner as conducted as of the date hereof. Schedule II
hereto sets forth a true and complete list of all Intellectual Property and Licenses owned or used by each Grantor as of the date hereof. All such Intellectual Property is subsisting and in full force and effect, has not been adjudged invalid or
unenforceable, is valid and enforceable and has not been abandoned in whole or in part. Except as set forth in Schedule II hereto, no such Intellectual Property is the subject of any licensing or franchising agreement. No Grantor has any knowledge
of any conflict with the rights of others to any Intellectual Property and, to the best knowledge of each Grantor, no Grantor is now infringing or in conflict with any such rights of others in any material respect, and to the best knowledge of

  

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each Grantor, no other Person is now infringing or in conflict in any material respect with any such properties, assets and rights owned or used by any
Grantor. No Grantor has received any notice that it is violating or has violated the trademarks, patents, copyrights, inventions, trade secrets, proprietary information and technology, know-how, formulae, rights of publicity or other intellectual
property rights of any third party. 
  
 (j) The Grantors are and
will be at all times the sole and exclusive owners of, or otherwise have and will have adequate rights in, the Collateral free and clear of any Lien except for (i) the Lien created by this Agreement and (ii) the Permitted Liens. No effective
financing statement or other instrument similar in effect covering all or any part of the Collateral is on file in any recording or filing office except (A) such as may have been filed in favor of the Collateral Agent relating to this Agreement and
(B) such as may have been filed to perfect or protect any Permitted Lien. 
  
 (k) The exercise by the Collateral Agent of any of its rights and remedies hereunder will not contravene any law or any contractual restriction binding on or otherwise affecting any Grantor or any of its properties
and will not result in, or require the creation of, any Lien upon or with respect to any of its properties. 
  
 (l) No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or other regulatory body, or any other
Person, is required for (i) the grant by any Grantor, or the perfection, of the security interest purported to be created hereby in the Collateral or (ii) the exercise by the Collateral Agent of any of its rights and remedies hereunder, except (A)
for the filing under the Uniform Commercial Code as in effect in the applicable jurisdiction of the financing statements as described in Schedule V hereto, all of which financing statements, filings and other recordings, as applicable, have been
duly filed and are in full force and effect, (B) with respect to the perfection of the security interest created hereby in the United States Intellectual Property, for the recording of the appropriate Assignment for Security, substantially in the
form of Exhibit A hereto in the United States Patent and Trademark Office or the United States Copyright Office, as applicable, (C) with respect to the perfection of the security interest created hereby in foreign Intellectual Property and Licenses,
for registrations and filings in jurisdictions located outside of the United States and covering rights in such jurisdictions relating to such foreign Intellectual Property and Licenses, (D) with respect to the perfection of the security interest
created hereby in motor vehicles (including, without limitation, all trucks, trailers, tractors, service vehicles, automobiles and other mobile equipment) for which the title to such motor vehicles is governed by a certificate of title or ownership
(collectively, the “Motor Vehicles”), for the submission of an appropriate application requesting that the Lien of the Collateral Agent be noted on the certificate of title or ownership, completed and authenticated by the applicable
Grantor, together with the certificate of title, with respect to each Motor Vehicle, to the appropriate state agency, (E) with respect to any action that may be necessary to obtain control of Collateral described in Sections 5(i) and 5(k) hereof,
the taking of such actions, (F) the taking possession of all Documents, Chattel Paper, Instruments and cash constituting Collateral and (G) with respect to the perfection of the security interest created hereby in the Vessels, for the filing of the
First Preferred Ship Mortgages and Second Preferred Ship Mortgages with the U.S. Coast Guard. 
  

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 (m) This Agreement creates in favor of the Collateral Agent for the benefit of the Agents and the Lenders
a legal, valid and enforceable security interest in the Collateral, as security for the Obligations. The Collateral Agent's having possession of all Instruments, Documents, Chattel Paper and cash constituting Collateral and obtaining control of all
Collateral described in Sections 5(i) and 5(k) hereof from time to time, the filing of the First Preferred Ship Mortgages and Second Preferred Ship Mortgages with the U.S. Coast Guard, the recording of the appropriate Assignment for Security, as
applicable, executed pursuant hereto in the United States Patent and Trademark Office and the United States Copyright Office, as applicable, the submission of an appropriate application requesting that the Lien of the Collateral Agent be noted on
the certificate of title or ownership, completed and authenticated by the applicable Grantor, together with the certificate of title or ownership, with respect to such Motor Vehicles, to the applicable state agency, and the filing of the financing
statements and the other filings and recordings, as applicable, described in Schedule V hereto and, with respect to the Intellectual Property hereafter existing and not covered by an applicable Assignment for Security, the recording in the United
States Patent and Trademark Office or the United States Copyright Office, as applicable, of appropriate instruments of assignment, result in the perfection of such security interests. Such security interests are, or in the case of Collateral in
which any Grantor obtains rights after the date hereof, will be, perfected, first priority security interests, subject only to the Permitted Liens that, pursuant to the definition of the term "Permitted Liens", are not prohibited from being prior to
the Liens in favor of the Collateral Agent, for the benefit of the Agents and the Lenders, and the recording or filing of such instruments of assignment described above. Such recordings and filings and all other action necessary or desirable to
perfect and protect such security interest have been duly taken, except for (i) the Collateral Agent's having possession of all Instruments, Documents and Chattel Paper and cash constituting Collateral after the date hereof, (ii) the Collateral
Agent's having control of any Collateral described in Sections 5(i) and 5(k) of this Agreement after the date hereof and (iii) the other filings, recordations and actions described in Section 4(l) hereof. 
  
 (n) As of the date hereof, no Grantor holds any Commercial Tort Claims or is
aware of any such pending claims, except for such claims described in Schedule VI. 
  
 (o) The partnership interests or membership interests of each Grantor in each of its Subsidiaries that is a partnership or a limited liability company are not (i) dealt in or traded on securities exchanges or in
securities markets, (ii) securities for purposes of Article 8 of any relevant Uniform Commercial Code, (iii) investment company securities within the meaning of Section 8-103 of any relevant Uniform Commercial Code and (iv) evidenced by a
certificate. Such partnership interests or membership interests constitute General Intangibles. 
  
 SECTION 5. Covenants as to the Collateral. So long as any of the Obligations shall remain outstanding and the Total Commitment shall not have
expired or terminated, unless the Collateral Agent shall otherwise consent in writing: 
  
 (a) Further Assurances. Each Grantor will at its expense, at any time and from time to time, promptly execute and deliver all further instruments and documents and take all further action that may be necessary
or desirable or that the Collateral Agent may request in order to (i) perfect and protect the security interest purported to be created hereby; (ii) enable the Collateral Agent to exercise and enforce its rights and remedies hereunder in respect of
the 

  

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Collateral; or (iii) otherwise effect the purposes of this Agreement, including, without limitation: (A) marking conspicuously all Chattel Paper, and each
License and, at the request of the Collateral Agent, each of its Records pertaining to the Collateral with a legend, in form and substance satisfactory to the Collateral Agent, indicating that such Chattel Paper, License or Collateral is subject to
the security interest created hereby, (B) if any Account shall be evidenced by Promissory Notes or other Instruments or Chattel Paper, delivering and pledging to the Collateral Agent hereunder such Promissory Notes, Instruments or Chattel Paper,
duly endorsed and accompanied by executed instruments of transfer or assignment, all in form and substance satisfactory to the Collateral Agent, (C) executing and filing (to the extent, if any, that such Grantor's signature is required thereon) or
authenticating the filing of, such financing or continuation statements, or amendments thereto, as may be necessary or desirable or that the Collateral Agent may request in order to perfect and preserve the security interest purported to be created
hereby, (D) furnishing to the Collateral Agent from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Collateral Agent may reasonably request, all
in reasonable detail, (E) if any Collateral shall be in the possession of a third party, notifying such Person of the Collateral Agent's security interest created hereby and obtaining a written acknowledgment from such Person that such Person holds
possession of the Collateral for the benefit of the Collateral Agent, which such written acknowledgement shall be in form and substance satisfactory to the Collateral Agent, (F) if at any time after the date hereof, any Grantor acquires or holds any
Commercial Tort Claim, immediately notifying the Collateral Agent in a writing signed by such Grantor setting forth a brief description of such Commercial Tort Claim and granting to the Collateral Agent a security interest therein and in the
proceeds thereof, which writing shall incorporate the provisions hereof and shall be in form and substance satisfactory to the Collateral Agent, (G) upon the acquisition after the date hereof by any Grantor of any Motor Vehicle or other Equipment
subject to a certificate of title or ownership (other than a Motor Vehicle or Equipment that is subject to a purchase money security interest permitted by Section 8.02(a) of the Financing Agreement), immediately notifying the Collateral Agent of
such acquisition, setting forth a description of the Motor Vehicle or other Equipment acquired and a good faith estimate of the current value of such Motor Vehicle or Equipment, and if so requested by the Collateral Agent, immediately causing the
Collateral Agent to be listed as the lienholder on such certificate of title or ownership and delivering evidence of the same to the Collateral Agent, and (H) taking all actions required by law in any relevant Uniform Commercial Code jurisdiction,
or by other law as applicable in any foreign jurisdiction. 
  
 (b)
Location of Equipment and Inventory. Each Grantor will keep the Equipment and Inventory (other than used Equipment and Inventory sold in the ordinary course of business in accordance with Section 5(g) hereof and the Vessels) at the locations
specified therefor in Section 4(g) hereof or, upon not less than thirty (30) days’ prior written notice to the Collateral Agent accompanied by a new Schedule III hereto indicating each new location of the Equipment and Inventory, at such other
locations in the continental United States, as the Grantors may elect, provided that (i) all action has been taken to grant to the Collateral Agent a perfected, first priority security interest in such Equipment and Inventory (subject in
priority only to Permitted Liens that, pursuant to the definition of the term “Permitted Liens,” are not prohibited from being prior to the Liens in favor of the Collateral Agent, for the benefit of the Agents and the Lenders), and (ii)
the Collateral Agent's rights in such Equipment and Inventory, 

  

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including, without limitation, the existence, perfection and priority of the security interest created hereby in such Equipment and Inventory, are not
adversely affected thereby. 
  
 (c) Condition of Equipment.
Each Grantor will maintain or cause the Equipment to be maintained and preserved in good condition, repair and working order as when acquired and in accordance with any manufacturer's manual, ordinary wear and tear excepted, and will forthwith, or
in the case of any loss or damage to any Equipment as quickly as practicable after the occurrence thereof, make or cause to be made all repairs, replacements and other improvements in connection therewith which are necessary or desirable, consistent
with past practice, or which the Collateral Agent may request to such end. Each Grantor will promptly furnish to the Collateral Agent a statement describing in reasonable detail any loss or damage in excess of $500,000 to any Equipment. 

 
 (d) Taxes, Etc. Each Grantor jointly and severally agrees to pay
promptly when due all property and other taxes, assessments and governmental charges or levies imposed upon, and all claims (including claims for labor, materials and supplies) against, the Equipment and Inventory, except to the extent the validity
thereof is being contested in good faith by proper proceedings which stay the imposition of any penalty, fine or Lien resulting from the non-payment thereof and with respect to which adequate reserves in accordance with GAAP have been set aside for
the payment thereof. 
  
 (e) Insurance. 
  
 (i) Each Grantor will, at its own expense, maintain
insurance (including, without limitation, comprehensive general liability, hazard, rent, property and business interruption insurance) with respect to all of its properties, including, without limitation, its Equipment and Inventory and all real
properties leased or owned by it in such amounts, against such risks, in such form and with responsible and reputable insurance companies or associations as is required by any Governmental Authority having jurisdiction with respect thereto or as is
carried generally in accordance with sound business practice by companies in similar businesses similarly situated and in any event, in amount, adequacy and scope reasonably satisfactory to the Collateral Agent. Except to the extent expressly
provided in Section 8.01(h) of the Financing Agreement, each policy for liability insurance shall provide for all losses to be paid to the Collateral Agent as its interests may appear, and each policy for property damage insurance shall provide for
all losses to be adjusted with, and paid directly to, the Collateral Agent. In addition, each such policy shall (A) name each Grantor and the Collateral Agent (and such other Persons as the Collateral Agent may designate from time to time) as
insured parties thereunder (without any representation or warranty by or obligation upon the Collateral Agent or such other Person) as their interests may appear, (B) contain an agreement by the insurer that any loss thereunder shall be payable to
the Collateral Agent on its own account notwithstanding any action, inaction or breach of representation or warranty by any Grantor, (C) provide that there shall be no recourse against the Collateral Agent for payment of premiums or other amounts
with respect thereto and (D) provide that at least thirty (30) days’ prior written notice of cancellation, lapse, expiration or other adverse change shall be given to the Collateral Agent by the insurer. Each Grantor will, if so requested by
the Collateral Agent, deliver to the Collateral Agent original or duplicate policies of such insurance and, as often as the Collateral Agent may reasonably request, a report of a reputable insurance broker with respect to such insurance. Each

  

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Grantor will also, at the request of the Collateral Agent, execute and deliver instruments of assignment of such insurance policies and cause the respective
insurers to acknowledge notice of such assignment. 
  
 (ii) Reimbursement under any liability insurance maintained by any Grantor pursuant to this Section 5(e) may be paid directly to the Person who shall have incurred liability covered by such insurance. Except as provided in Section 8.01(h)
of the Financing Agreement, in the case of any loss involving damage to Equipment or Inventory, any proceeds of insurance maintained by a Grantor pursuant to this Section 5(e) shall be paid to the Collateral Agent, such Grantor will make or cause to
be made the necessary repairs to or replacements of such Equipment or Inventory, and any proceeds of insurance maintained by such Grantor pursuant to this Section 5(e) shall, to the extent that such proceeds have been paid to the Collateral Agent,
be paid by the Collateral Agent to such Grantor as reimbursement for the costs of such repairs or replacements. 
  
 (iii) Upon the occurrence and during the continuance of a Default or Event of Default or except as otherwise expressly provided in the
Financing Agreement, upon any insurance payment in respect of any Equipment or Inventory, all insurance payments in respect of such Equipment or Inventory shall be paid to the Collateral Agent and applied as specified in Section 7(b) hereof.

  
 (f) Provisions Concerning the Accounts and the
Licenses. 
  
 (i) No Grantor shall, without
the prior written consent of the Collateral Agent, change (A) such Grantor's name, identity or organizational structure or (B) its jurisdiction of incorporation or organization as set forth in Section 4(b) hereto. Each Grantor shall (x) immediately
notify the Collateral Agent upon obtaining an organizational identification number, if on the date hereof such Grantor did not have such identification number, and (y) keep adequate records concerning the Accounts and Chattel Paper and permit
representatives of the Collateral Agent pursuant to the terms of the Financing Agreement to inspect and make abstracts from such Records and Chattel Paper. 
  
 (ii) Each Grantor will, except as otherwise provided in this subsection (f), continue to collect, at its own expense, all amounts due or
to become due under the Accounts. In connection with such collections, each Grantor may (and, at the Collateral Agent's direction, will) take such action as such Grantor (or, if applicable, the Collateral Agent) may deem necessary or advisable to
enforce collection or performance of the Accounts; provided, however, that the Collateral Agent shall have the right at any time, upon the occurrence and during the continuance of an Event of Default, to notify the Account Debtors or
obligors under any Accounts of the assignment of such Accounts to the Collateral Agent and to direct such Account Debtors or obligors to make payment of all amounts due or to become due to such Grantor thereunder directly to the Collateral Agent or
its designated agent and, upon such notification and at the expense of such Grantor and to the extent permitted by law, to enforce collection of any such Accounts and to adjust, settle or compromise the amount or payment thereof, in the same manner
and to the same extent as such Grantor might have done. After receipt by any Grantor of a notice from the Collateral Agent that the Collateral Agent has notified, intends to notify, or has enforced or intends to enforce a Grantor’s rights
against the 

  

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Account Debtors or obligors under any Accounts as referred to in the proviso to the immediately preceding sentence, (A) all amounts and proceeds (including
Instruments) received by such Grantor in respect of the Accounts shall be received in trust for the benefit of the Collateral Agent hereunder, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral
Agent or its designated agent in the same form as so received (with any necessary endorsement) to be held as cash collateral and either (i) credited to the Loan Account so long as no Event of Default shall have occurred and be continuing or (ii) if
an Event of Default shall have occurred and be continuing, applied as specified in Section 7(b) hereof, and (B) such Grantor will not adjust, settle or compromise the amount or payment of any Account or release wholly or partly any Account Debtor or
obligor thereof or allow any credit or discount thereon. In addition, upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may (in its sole and absolute discretion) direct any or all of the banks and financial
institutions with which any Grantor either maintains a Deposit Account or a lockbox or deposits the proceeds of any Accounts to send immediately to the Collateral Agent or its designated agent by wire transfer (to such account as the Collateral
Agent shall specify, or in such other manner as the Collateral Agent shall direct) all or a portion of such securities, cash, investments and other items held by such institution. Any such securities, cash, investments and other items so received by
the Collateral Agent or its designated agent shall (in the sole and absolute discretion of the Collateral Agent) be held as additional Collateral for the Obligations or distributed in accordance with Section 7 hereof. 
  
 (iii) Upon the occurrence and during the continuance of any
breach or default under any License referred to in Schedule II hereto by any party thereto other than a Grantor, (A) the relevant Grantor will, promptly after obtaining knowledge thereof, give the Collateral Agent written notice of the nature and
duration thereof, specifying what action, if any, it has taken and proposes to take with respect thereto, (B) no Grantor will, without the prior written consent of the Collateral Agent, declare or waive any such breach or default or affirmatively
consent to the cure thereof or exercise any of its remedies in respect thereof, and (C) each Grantor will, upon written instructions from the Collateral Agent and at such Grantor's expense, take such action as the Collateral Agent may deem necessary
or advisable in respect thereof. 
  
 (iv) Each
Grantor will, at its expense, promptly deliver to the Collateral Agent a copy of each notice or other communication received by it by which any other party to any License referred to in Schedule II hereto purports to exercise any of its rights or
affect any of its obligations thereunder, together with a copy of any reply by such Grantor thereto. 
  
 (v) Each Grantor will exercise promptly and diligently each and every right which it may have under each License (other than any right of
termination) and will duly perform and observe in all respects all of its obligations under each License and will take all action necessary to maintain the Licenses in full force and effect. No Grantor will, without the prior written consent of the
Collateral Agent, cancel, terminate, amend or otherwise modify in any respect, or waive any provision of, any License referred to in Schedule II hereto. 
  

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 (g) Transfers and Other Liens. 
  
 (i) Except to the extent expressly permitted by Section 8.02(c) of the Financing Agreement, no Grantor will
sell, assign (by operation of law or otherwise), lease, license, exchange or otherwise transfer or dispose of any of the Collateral. 
  
 (ii) Except to the extent expressly permitted by Section 8.02(a) of the Financing Agreement, no Grantor will create, suffer to exist or
grant any Lien upon or with respect to any Collateral. 
  
 (h)
Intellectual Property. 
  
 (i) If
applicable, each Grantor has duly executed and delivered the applicable Assignment for Security in the form attached hereto as Exhibit A. Each Grantor (either itself or through licensees) will, and will cause each licensee thereof to, take all
action necessary to maintain all of the Intellectual Property in full force and effect, including, without limitation, using the proper statutory notices and markings and using the Trademarks on each applicable trademark class of goods in order to
so maintain the Trademarks in full force, free from any claim of abandonment for non-use, and no Grantor will (nor permit any licensee thereof to) do any act or knowingly omit to do any act whereby any Intellectual Property may become invalidated;
provided, however, that so long as no Event of Default has occurred and is continuing, no Grantor shall have an obligation to use or to maintain any Intellectual Property (A) that relates solely to any product or work, that has been,
or is in the process of being, discontinued, abandoned or terminated, (B) that is being replaced with Intellectual Property substantially similar to the Intellectual Property that may be abandoned or otherwise become invalid, so long as the failure
to use or maintain such Intellectual Property does not materially adversely affect the validity of such replacement Intellectual Property and so long as such replacement Intellectual Property is subject to the Lien created by this Agreement or (C)
that is substantially the same as another Intellectual Property that is in full force, so long the failure to use or maintain such Intellectual Property does not materially adversely affect the validity of such replacement Intellectual Property and
so long as such other Intellectual Property is subject to the Lien and security interest created by this Agreement. Each Grantor will cause to be taken all necessary steps in any proceeding before the United States Patent and Trademark Office and
the United States Copyright Office or any similar office or agency in any other country or political subdivision thereof to maintain each registration of the Intellectual Property (other than the Intellectual Property described in the proviso to the
immediately preceding sentence), including, without limitation, filing of renewals, affidavits of use, affidavits of incontestability and opposition, interference and cancellation proceedings and payment of maintenance fees, filing fees, taxes or
other governmental fees. If any Intellectual Property is infringed, misappropriated, diluted or otherwise violated in any material respect by a third party, the Grantors shall (x) upon obtaining knowledge of such infringement, misappropriation,
dilution or other violation, promptly notify the Collateral Agent and (y) to the extent the Grantors shall deem appropriate under the circumstances, promptly sue for infringement, misappropriation, dilution or other violation, seek injunctive relief
where appropriate and recover any and all damages for such infringement, misappropriation, dilution or other violation, or take such other actions as the Grantors shall deem appropriate under the circumstances to protect such Intellectual Property.
Each Grantor shall furnish to the Collateral Agent, from time to time upon the Collateral Agent’s request, statements and schedules further identifying and describing the 

  

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Intellectual Property and Licenses and such other reports in connection with the Intellectual Property and Licenses as the Collateral Agent may reasonably
request, all in reasonable detail and promptly upon request of the Collateral Agent, following receipt by the Collateral Agent of any such statements, schedules or reports, the Grantors shall modify this Agreement by amending Schedule II hereto, as
the case may be, to include any Intellectual Property and License, as the case may be, which becomes part of the Collateral under this Agreement and shall execute and authenticate such documents and do such acts as shall be necessary or, in the
judgment of the Collateral Agent, desirable to subject such Intellectual Property and Licenses to the Lien and security interest created by this Agreement. Notwithstanding anything herein to the contrary, upon the occurrence and during the
continuance of an Event of Default, no Grantor may abandon or otherwise permit any Intellectual Property to become invalid without the prior written consent of the Collateral Agent, and if any Intellectual Property is infringed, misappropriated,
diluted or otherwise violated in any material respect by a third party, the Grantors will take such action as the Collateral Agent shall deem appropriate under the circumstances to protect such Intellectual Property. 
  
 (ii) In no event shall any Grantor, either itself or through
any agent, employee, licensee or designee, file an application for the registration of any Trademark or Copyright or the issuance of any Patent with the United States Patent and Trademark Office or the United States Copyright Office, as applicable,
or in any similar office or agency of the United States or any country or any political subdivision thereof unless it gives the Collateral Agent prior written notice thereof. Upon request of the Collateral Agent, each Grantor shall execute,
authenticate and deliver any and all assignments, agreements, instruments, documents and papers as the Collateral Agent may reasonably request to evidence the Collateral Agent’s security interest hereunder in such Intellectual Property and the
General Intangibles of such Grantor relating thereto or represented thereby, and each Grantor hereby appoints the Collateral Agent its attorney-in-fact to execute and/or authenticate and file all such writings for the foregoing purposes, all acts of
such attorney being hereby ratified and confirmed, and such power (being coupled with an interest) shall be irrevocable until date on which all of the Obligations have been Paid in Full after the termination of the Loan Documents. 
  
 (i) Deposit, Commodities and Securities Accounts. Prior to the date
hereof, each Grantor shall cause each bank and other financial institution with an account referred to in Schedule IV hereto to execute and deliver to the Collateral Agent (as its designee) a control agreement, in form and substance
reasonably satisfactory to the Collateral Agent, duly executed by such Grantor and such bank or financial institution, or enter into other arrangements in form and substance satisfactory to the Collateral Agent, pursuant to which such institution
shall irrevocably agree, among other things, that (i) it will comply at any time with the instructions originated by the Collateral Agent (or its designee) to such bank or financial institution directing the disposition of cash, Commodity Contracts,
securities, Investment Property and other items from time to time credited to such account, without further consent of such Grantor, which instructions the Collateral Agent (or its designee) will not give to such bank or other financial institution
in the absence of a continuing Event of Default, (ii) except as permitted by clause (m) of the definition of “Permitted Liens” in the Financing Agreement, all cash, Commodity Contracts, securities, Investment Property and other items of
such Grantor deposited with such institution shall be subject to a perfected, first priority security interest in favor of the Collateral Agent, (or its designee), (iii) any right of set off, banker's Lien or other similar Lien, security 

  

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interest or encumbrance shall be fully waived as against the Collateral Agent (or its designee), and (iv) upon receipt of written notice from the Collateral
Agent during the continuance of an Event of Default, such bank or financial institution shall immediately send to the Collateral Agent (or its designee) by wire transfer (to such account as the Collateral Agent (or its designee) shall specify, or in
such other manner as the Collateral Agent (or its designee) shall direct) all such cash, the value of any Commodity Contracts, securities, Investment Property and other items held by it. Without the prior written consent of the Collateral Agent, no
Grantor shall make or maintain any Deposit Account, Commodity Account or Securities Account except for the accounts set forth in Schedule IV hereto. The provisions of this paragraph 5(i) shall not apply to (i) Deposit Accounts for which the
Collateral Agent is the depositary and (ii) Deposit Accounts specially and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of a Grantor’s salaried employees. 
  
 (j) Motor Vehicles. 
  
 (i) Each Grantor shall (a) cause all Motor Vehicles, now
owned or hereafter acquired by any Grantor, which under applicable law are required to be registered, to be properly registered in the name of such Grantor, (b) cause all Motor Vehicles, now owned or hereafter acquired by any Grantor, the ownership
of which under applicable law (including without limitation, any Motor Vehicle Law), is evidenced by a certificate of title or ownership, to be properly titled in the name of such Grantor, with the Collateral Agent’s Lien noted thereon (to the
extent requested by the Collateral Agent) and (c) if requested by the Collateral Agent, deliver to the Collateral Agent (or its custodian) originals of all such certificates of title or ownership for such Motor Vehicles, with the Collateral
Agent’s Lien noted thereon. 
  
 (ii) Upon
request of the Collateral Agent, each Grantor will provide to the Collateral Agent, a list of any Motor Vehicle or other Equipment subject to a certificate of title or ownership (other than a Motor Vehicle or Equipment to be acquired that is subject
to a purchase money security interest permitted by Section 8.02(a) of the Financing Agreement), owned by such Grantor, setting forth a description of the Motor Vehicles or other Equipment owned and a good faith estimate of the current value of such
Motor Vehicles or Equipment, and if so requested by the Collateral Agent, immediately deliver to the Collateral Agent (or its custodian) originals of the certificates of title or ownership for such Motor Vehicle or Equipment, together with the
manufacturer’s statement of origin, and an application duly executed by the appropriate Grantor to evidence the Collateral Agent’s Lien thereon. 
  
 (iii) Each Grantor hereby appoints the Collateral Agent as its attorney-in-fact, effective the date hereof and terminating upon the
termination of this Agreement, for the purpose of (A) executing on behalf of such Grantor title or ownership applications for filing with appropriate state or provincial agencies to enable Motor Vehicles now owned or hereafter acquired by such
Grantor to be retitled and the Collateral Agent listed as lienholder thereof, (B) filing such applications with such state or provincial agencies, and (C) executing such other documents and instruments on behalf of, and taking such other action in
the name of, such Grantor as the Collateral Agent may deem necessary or advisable to accomplish the purposes hereof (including, without limitation, for the purpose of creating in favor of the Collateral Agent a perfected Lien on such Motor Vehicles
and exercising the rights and remedies of the Collateral Agent hereunder). This appointment as attorney-in-fact is coupled with an interest and is 

  

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irrevocable until the date on which all of the Obligations have been Paid in Full after the termination of the Loan Documents. 
  
 (iv) Any certificates of title or ownership delivered
pursuant to the terms hereof shall be accompanied by odometer statements for each Motor Vehicle covered thereby. 
  
 (v) So long as no Event of Default shall have occurred and be continuing, upon the request of any Grantor, the Collateral Agent shall
execute and deliver to such Grantor such instruments as such Grantor shall reasonably request to remove the notation of the Collateral Agent as lienholder on any certificate of title for any Motor Vehicle; provided that any such instruments
shall be delivered, and the release effective, only upon receipt by the Collateral Agent of a certificate from such Grantor, stating that the Motor Vehicle, the Lien on which is to be released, is to be sold or has suffered a casualty loss (with
title thereto passing to the casualty insurance company therefor in settlement of the claim for such loss), the amount that such Grantor will receive as sale proceeds or insurance proceeds and whether or not such sale proceeds or insurance proceeds
are required by Section 2.05 of the Financing Agreement to be paid to the Collateral Agent to be applied to the Obligations and, to the extent required by Section 2.05 of the Financing Agreement, any proceeds of such sale or casualty loss shall be
paid to the Collateral Agent hereunder to be applied to the Obligations then outstanding, in accordance with the terms of the Financing Agreement. 
  
 (k) Control. Each Grantor hereby agrees to take any or all action that may be necessary or desirable or that the Collateral Agent may request in
order for the Collateral Agent to obtain control in accordance with Sections 9-104, 9-105, 9-106, and 9-107 of the Code with respect to the following Collateral: (i) Deposit Accounts, (ii) Electronic Chattel Paper, (iii) Investment Property and (iv)
Letter-of-Credit Rights. Each Grantor hereby acknowledges and agrees that any agent or designee of the Collateral Agent shall be deemed to be a “secured party” with respect to the collateral under the control of such agent or designee for
all purposes. 
  
 (l) Inspection and Reporting. Each
Grantor shall permit the Agents and the Lenders, or any agents or representatives thereof or such professionals or other Persons as the Agents and the Lenders may designate (i) to examine and make copies of and abstracts from such Grantor’s
records and books of account, (ii) to visit and inspect its properties, (iii) to verify materials, leases, notes, Accounts, Inventory and other assets of such Grantor from time to time, (iv) to conduct audits, physical counts, appraisals and/or
valuations, Phase I and Phase II Environmental Site Assessments or examinations at the locations of such Grantor and (v) to discuss such Grantor’s affairs, finances and accounts with any of its directors, officers, managerial employees,
independent accountants or any of its other representatives, in each case as provided in the Financing Agreement. 
  
 (m) Partnership and Limited Liability Company Interest. No Grantor that is a partnership or a limited liability company shall, nor shall any
Grantor with any Subsidiary that is a partnership or a limited liability company, permit such partnership interests or membership interests to (i) be dealt in or traded on securities exchanges or in securities markets, (ii) become a security for
purposes of Article 8 of any relevant Uniform Commercial Code, (iii) become an investment company security within the meaning of Section 8-103 of any relevant Uniform 
  

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Commercial Code or (iv) be evidenced by a certificate. Each Grantor agrees that such partnership interests or membership interests shall constitute General
Intangibles. 
  
 SECTION 6. Additional Provisions Concerning
the Collateral. 
  
 (a) Each Grantor hereby (i) authorizes
the Collateral Agent at any time and from time to time to file, one or more financing or continuation statements and amendments thereto that describe the Collateral as “all assets” or words of similar effect and that contain any other
information required by Part 5 of Article 9 of the Code for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment, including, without limitation, whether such Grantor is an organization, the type
of organization and any organization number issued to such Grantor and (ii) ratifies such authorization to the extent that the Collateral Agent has filed any such financing statements, continuation statements, or amendments thereto, prior to the
date hereof. A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law. 
  
 (b) Each Grantor hereby irrevocably appoints the Collateral Agent as its
attorney-in-fact and proxy, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time in the Collateral Agent’s discretion, upon the occurrence and during the continuance of an
Event of Default, to take any action and to execute any instrument which the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement (subject to the rights of a Grantor under Section 5 hereof), including,
without limitation, (i) to obtain and adjust insurance required to be paid to the Collateral Agent pursuant to Section 5(e) hereof, (ii) to ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due
and to become due under or in respect of any Collateral, (iii) to receive, endorse, and collect any drafts or other instruments, documents and chattel paper in connection with clause (i) or (ii) above, (iv) to file any claims or take any action or
institute any proceedings which the Collateral Agent may deem necessary or desirable for the collection of any Collateral or otherwise to enforce the rights of the Agents and the Lenders with respect to any Collateral, and (v) to execute
assignments, licenses and other documents to enforce the rights of the Agents and the Lenders with respect to any Collateral. This power is coupled with an interest and is irrevocable until the date on which all of the Obligations have been Paid in
Full after the termination of the Loan Documents. 
  
 (c) For the
purpose of enabling the Collateral Agent to exercise rights and remedies hereunder, at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby grants to the
Collateral Agent, to the extent assignable, an irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to any Grantor) to use, assign, license or sublicense any Intellectual Property now owned or hereafter
acquired by any Grantor, wherever the same may be located, including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout
thereof. Notwithstanding anything contained herein to the contrary, but subject to the provisions of the Financing Agreement that limit the right of a Grantor to dispose of its property and Section 5(h) hereof, so long as no Event of Default shall
have occurred and be continuing, each Grantor may exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose of or take 

  

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other actions with respect to the Intellectual Property in the ordinary course of its business. In furtherance of the foregoing, unless an Event of Default
shall have occurred and be continuing, the Collateral Agent shall from time to time, upon the request of a Grantor, execute and deliver any instruments, certificates or other documents, in the form so requested, which such Grantor shall have
certified are appropriate (in such Grantor’s judgment) to allow it to take any action permitted above (including relinquishment of the license provided pursuant to this clause (c) as to any Intellectual Property). Further, upon the date on
which all of the Obligations have been Paid in Full after the termination of the Loan Documents, the Collateral Agent (subject to Section 11(e) hereof) shall release and reassign to the Grantors all of the Collateral Agent’s right, title and
interest in and to the Intellectual Property, and the Licenses, all without recourse, representation or warranty whatsoever and at the Grantors’ sole expense. The exercise of rights and remedies hereunder by the Collateral Agent shall not
terminate the rights of the holders of any licenses or sublicenses theretofore granted by any Grantor in accordance with the second sentence of this clause (c). Each Grantor hereby releases the Collateral Agent from any claims, causes of action and
demands at any time arising out of or with respect to any actions taken or omitted to be taken by the Collateral Agent under the powers of attorney granted herein other than actions taken or omitted to be taken through the Collateral Agent’s
gross negligence or willful misconduct, as determined by a final determination of a court of competent jurisdiction. 
  
 (d) If any Grantor fails to perform any agreement contained herein, the Collateral Agent may itself perform, or cause performance of, such agreement or
obligation, in the name of such Grantor or the Collateral Agent, and the expenses of the Collateral Agent incurred in connection therewith shall be jointly and severally payable by the Grantors pursuant to Section 8 hereof and shall be secured by
the Collateral. 
  
 (e) The powers conferred on the Collateral
Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received
by it hereunder, the Collateral Agent shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral. 
  
 (f) Anything herein to the contrary notwithstanding (i) each Grantor shall
remain liable under the Licenses and otherwise with respect to any of the Collateral to the extent set forth therein to perform all of its obligations thereunder to the same extent as if this Agreement had not been executed, (ii) the exercise by the
Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its obligations under the Licenses or otherwise in respect of the Collateral, and (iii) the Collateral Agent shall not have any obligation or liability by
reason of this Agreement under the Licenses or with respect to any of the other Collateral, nor shall the Collateral Agent be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce
any claim for payment assigned hereunder. 
  

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 SECTION 7. Remedies Upon Default. If any Event of Default shall have occurred and be continuing:

  
 (a) The Collateral Agent may exercise in respect of the
Collateral, in addition to any other rights and remedies provided for herein or otherwise available to it, all of the rights and remedies of a secured party upon default under the Code (whether or not the Code applies to the affected Collateral),
and also may (i) take absolute control of the Collateral, including, without limitation, transfer into the Collateral Agent’s name or into the name of its nominee or nominees (to the extent the Collateral Agent has not theretofore done so) and
thereafter receive, for the benefit of the Collateral Agent, all payments made thereon, give all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto as though it were the outright owner thereof, (ii) require
each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed by the Collateral Agent and make it available to the Collateral Agent
at a place or places to be designated by the Collateral Agent that is reasonably convenient to both parties, and the Collateral Agent may enter into and occupy any premises owned or leased by any Grantor where the Collateral or any part thereof is
located or assembled for a reasonable period in order to effectuate the Collateral Agent’s rights and remedies hereunder or under law, without obligation to any Grantor in respect of such occupation, and (iii) without notice except as specified
below and without any obligation to prepare or process the Collateral for sale, (A) sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on
credit or for future delivery, and at such price or prices and upon such other terms as the Collateral Agent may deem commercially reasonable and/or (B) lease, license or dispose of the Collateral or any part thereof upon such terms as the
Collateral Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale or any other disposition of the Collateral shall be required by law, at least five (5) days’ notice to a Grantor of the time and place of
any public sale or the time after which any private sale or other disposition of the Collateral is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale or other disposition of Collateral
regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned. Each Grantor hereby waives any claims against the Agents and the Lenders arising by reason of the fact that the price at which the Collateral may have been sold at a private sale was less than the price which
might have been obtained at a public sale or was less than the aggregate amount of the Obligations, even if the Collateral Agent accepts the first offer received and does not offer the Collateral to more than one offeree, and waives all rights that
such Grantor may have to require that all or any part of the Collateral be marshaled upon any sale (public or private) thereof. Each Grantor hereby acknowledges that (i) any such sale of the Collateral by the Collateral Agent shall be made without
warranty, (ii) the Collateral Agent may specifically disclaim any warranties of title, possession, quiet enjoyment or the like, and (iii) such actions set forth in clauses (i) and (ii) above shall not adversely effect the commercial reasonableness
of any such sale of the Collateral. In addition to the foregoing, (i) upon written notice to any Grantor from the Collateral Agent, each Grantor shall cease any use of the Intellectual Property or any trademark, patent or copyright similar thereto
for any purpose described in such notice; (ii) the Collateral Agent may, at any time and from time to time, upon ten (10) days’ prior notice to any Grantor, license, whether general, special or otherwise, and whether on an exclusive or 

  

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non-exclusive basis, any of the Intellectual Property, throughout the universe for such term or terms, on such conditions, and in such manner, as the
Collateral Agent shall in its sole discretion determine; and (iii) the Collateral Agent may, at any time, pursuant to the authority granted in Section 6 hereof (such authority being effective upon the occurrence and during the continuance of an
Event of Default), execute and deliver on behalf of a Grantor, one or more instruments of assignment of the Intellectual Property (or any application or registration thereof), in form suitable for filing, recording or registration in any country.

  
 (b) Any cash held by the Collateral Agent (or its agents or
desingee) as Collateral and all Cash Proceeds received by the Collateral Agent in respect of any sale of or collection from, or other realization upon, all or any part of the Collateral may, in the discretion of the Collateral Agent, be held by the
Collateral Agent as collateral for, and/or then or at any time thereafter applied (after payment of any amounts payable to the Collateral Agent pursuant to Section 8 hereof) in whole or in part by the Collateral Agent against, all or any part of the
Obligations in such order as the Collateral Agent shall elect, consistent with the provisions of the Financing Agreement. Any surplus of such cash or Cash Proceeds held by the Collateral Agent and remaining after the date on which all of the
Obligations have been Paid in Full after the termination of the Loan Documents shall be paid over to whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct. 
  
 (c) In the event that the proceeds of any such sale, collection or
realization are insufficient to pay all amounts to which the Agents and the Lenders are legally entitled, the Grantors shall be jointly and severally liable for the deficiency, together with interest thereon at the highest rate specified in any
applicable Loan Document for interest on overdue principal thereof or such other rate as shall be fixed by applicable law, together with the costs of collection and the reasonable fees, costs, expenses and other client charges of any attorneys
employed by the Collateral Agent to collect such deficiency. 
  
 (d) Each Grantor hereby acknowledges that if the Collateral Agent complies with any applicable state, provincial or federal law requirements in connection with a disposition of the Collateral, such compliance will not adversely affect the
commercial reasonableness of any sale or other disposition of the Collateral. 
  
 (e) The Collateral Agent shall not be required to marshal any present or future collateral security (including, but not limited to, this Agreement and the Collateral) for, or other assurances of payment of, the
Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of the Collateral Agent’s rights hereunder and in respect of such collateral security and other assurances of
payment shall be cumulative and in addition to all other rights, however existing or arising. To the extent that any Grantor lawfully may, such Grantor hereby agrees that it will not invoke any law relating to the marshalling of collateral which
might cause delay in or impede the enforcement of the Collateral Agent’s rights under this Agreement or under any other instrument creating or evidencing any of the Obligations or under which any of the Obligations is outstanding or by which
any of the Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the benefits of all such laws. 
  

 -21- 

 SECTION 8. Indemnity and Expenses. 
  
 (a) Each Grantor jointly and severally agrees to defend, protect, indemnify and hold harmless each Indemnitee from and
against any and all claims, damages, losses, liabilities, obligations, penalties, fees, reasonable costs and expenses (including, without limitation, reasonable legal fees, costs, expenses and disbursements incurred by such Indemnitees) to the
extent that they arise out of or otherwise result from this Agreement (including, without limitation, enforcement of this Agreement), except to the extent that such claims, losses or liabilities result from such Indemnitee’s gross negligence or
willful misconduct, as determined by a final judgment of a court of competent jurisdiction. 
  
 (b) Each Grantor jointly and severally agrees to pay to the Collateral Agent upon demand the amount of any and all costs and expenses, including the reasonable fees, costs, expenses and disbursements of counsel for
the Collateral Agent and of any experts and agents (including, without limitation, any collateral trustee which may act as agent of the Collateral Agent), which the Collateral Agent may incur in connection with (i) the preparation, negotiation,
execution, delivery, recordation, administration, amendment, waiver or other modification or termination of this Agreement, (ii) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, any
Collateral, (iii) the exercise or enforcement of any of the rights of the Collateral Agent hereunder, or (iv) the failure by any Grantor to perform or observe any of the provisions hereof. 
  

 -22- 

 SECTION 9. Notices, Etc. All notices and other communications provided for hereunder shall be in
writing and shall be mailed, telecopied or delivered, if to a Grantor, to it in care of the Administrative Borrower at its address specified in the Financing Agreement and if to the Collateral Agent, to it at its address specified in the Financing
Agreement; or as to any such Person, at such other address as shall be designated by such Person in a written notice to such other Person complying as to delivery with the terms of this Section 9. All such notices and other communications shall be
effective (a) if mailed (by certified mail, postage prepaid and return receipt requested), when received or three (3) Business Days after deposited in the mails, whichever occurs first, (b) if telecopied, when transmitted and confirmation received,
provided same is on a Business Day and, if not, on the next Business Day; or (c) if delivered, upon delivery, provided same is on a Business Day and, if not, on the next Business Day. 
  
 SECTION 10. Security Interest Absolute. All rights of the Agents, the Lenders and the L/C Issuer, all Liens and all
obligations of each of the Grantors hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Financing Agreement or any other Loan Document, (b) any change in the time, manner or place of
payment of, or in any other term in respect of, all or any of the Obligations, or any other amendment or waiver of or consent to any departure from the Financing Agreement or any other Loan Document, (c) any exchange or release of, or non-perfection
of any Lien on any Collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Obligations, or (d) any other circumstance that might otherwise constitute a defense available to, or a
discharge of, any of the Grantors in respect of the Obligations. All authorizations and agencies contained herein with respect to any of the Collateral are irrevocable and powers coupled with an interest. 
  
 SECTION 11. Miscellaneous. 
  
 (a) No amendment of any provision of this Agreement (including any Schedule
attached hereto) shall be effective unless it is in writing and signed by each Grantor and the Collateral Agent, and no waiver of any provision of this Agreement, and no consent to any departure by any Grantor therefrom, shall be effective unless it
is in writing and signed by the Collateral Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
  
 (b) No failure on the part of the Agents, the Lenders or the L/C Issuer to exercise, and no delay in exercising, any right
hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The rights and remedies of
the Agents, the Lenders and the L/C Issuer provided herein and in the other Loan Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law. The rights of the Agents, the Lenders and the L/C Issuer
under any Loan Document against any party thereto are not conditional or contingent on any attempt by such Person to exercise any of its rights under any other Loan Document against such party or against any other Person, including but not limited
to, any Grantor. 
  
 (c) Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or 

  

 -23- 

 
unenforceability without invalidating the remaining portions hereof or thereof or affecting the validity or enforceability of such provision in any other
jurisdiction. 
  
 (d) This Agreement shall create a continuing
security interest in the Collateral and shall (i) remain in full force and effect until the date on which all of the Obligations have been Paid in Full after the termination of the Loan Documents and (ii) be binding on each Grantor and all other
Persons who become bound as debtor to this Agreement in accordance with Section 9-203(d) of the Code and shall inure, together with all rights and remedies of the Agents, the Lenders and the L/C Issuer hereunder, to the benefit of the Agents, the
Lenders and the L/C Issuer and their respective permitted successors, transferees and assigns. Without limiting the generality of clause (ii) of the immediately preceding sentence, without notice to the Grantors, the Agents, the Lenders and the L/C
Issuer may assign or otherwise transfer their rights and obligations under this Agreement and any other Loan Document, to any other Person and such other Person shall thereupon become vested with all of the benefits in respect thereof granted to the
Agents, the Lenders and the L/C Issuer herein or otherwise. Upon any such assignment or transfer, all references in this Agreement to any such Agent, any such Lender or the L/C Issuer shall mean the assignee of such Agent, such Lender or such L/C
Issuer. None of the rights or obligations of any Grantor hereunder may be assigned or otherwise transferred without the prior written consent of the Collateral Agent, and any such assignment or transfer shall be null and void. 
  
 (e) Upon the date on which all of the Obligations have been Paid in Full
after the termination of the Loan Documents, (i) this Agreement and the security interests and licenses created hereby shall terminate and all rights to the Collateral shall revert to the Grantors and (ii) the Collateral Agent will, upon the
Grantors’ request and at the Grantors' expense, without any representation, warranty or recourse whatsoever, (A) return to the Grantors such of the Collateral as shall not have been sold or otherwise disposed of or applied pursuant to the terms
hereof and (B) execute and deliver to the Grantors such documents as the Grantors shall reasonably request to evidence such termination. 
  
 (f) THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS REQUIRED BY
MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE VALIDITY AND PERFECTION OR THE PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE SECURITY INTEREST CREATED HEREBY, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR
COLLATERAL ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. 
  
 (g) ANY LEGAL ACTION, SUIT OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY DOCUMENT RELATED THERETO MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR THE UNITED STATES OF
AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS THEREOF, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH GRANTOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF
THE AFORESAID COURTS. EACH 

  

 -24- 

 
GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO
THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION, SUIT OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS AND CONSENTS TO THE GRANTING OF SUCH
LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. 
  
 (h) EACH OF THE GRANTORS (AND BY ITS ACCEPTANCE OF THE BENEFITS OF THIS AGREEMENT, THE COLLATERAL AGENT) WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR OTHER ACTION OF THE PARTIES HERETO. 
  

(i) Each Grantor hereby irrevocably appoints CT Corporation as its agent for service of process in respect of any such action or proceeding and further
irrevocably consents to the service of process of any of the aforesaid courts in any such action, suit or proceeding by the mailing of copies thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to
such Grantor in care of the Administrative Borrower at its address provided herein and to CT Corporation at 111 Eighth Avenue, New York, New York 10011, such service to become effective ten (10) days after such mailing. 
  
 (j) Nothing contained herein shall affect the right of the Collateral Agent
to serve process in any other manner permitted by law or commence legal proceedings or otherwise proceed against any Grantor or any property of any Grantor in any other jurisdiction. 
  
 (k) Each Grantor irrevocably and unconditionally waives any right it may have to claim or recover in any legal action, suit
or proceeding referred to in this Section any special, exemplary, punitive or consequential damages. 
  
 (l) Section headings herein are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

  
 (m) This Agreement 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 constitute one in the same Agreement. Delivery of an executed counterpart of this Agreement by
facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart. 
  
 (n) All of the obligations of the Grantors hereunder are joint and several. The Collateral Agent may, in its sole and absolute discretion, enforce the
provisions hereof against any of the Grantors and shall not be required to proceed against all Grantors jointly or seek payment from the Grantors ratably. In addition, the Collateral Agent may, in its sole and absolute discretion, select the
Collateral of any one or more of the Grantors for sale or application to the Obligations, without regard to the ownership of such Collateral, and shall not be required to make such selection ratably from the Collateral owned by all of the Grantors.
The release or discharge of any Grantor by the Collateral Agent shall not release or discharge any other Grantor from the obligations of such Person hereunder. 
  

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 -25- 

  
 IN WITNESS WHEREOF, each
Grantor has caused this Agreement to be executed and delivered by its officer thereunto duly authorized, as of the date first above written. 
  

					
	 GRANTORS:
	 	 
	
	 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 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 COMPANY
 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

		
	By:	 	 /s/ Julie A. Boland

	 	 	 Name:
	 	 Julie A. Boland

	 	 	 Title:
	 	In her capacity as Vice President, Chief Financial Officer and Treasurer for Oglebay Norton Company and as Vice President and Treasurer for each other entity above

  
 Security
Agreement 
  

					
	 GLOBAL STONE PENROC, LP

		
	 By:
	 	 GS PC Inc.,
 its general partner

			
	 	 	 By:
	 	 /s/ Julie A. Boland

	 	 	 	 	 Name: Julie A. Boland

	 	 	 	 	 Title: Vice President and Treasurer

	
	 TEXAS MINING, LP

		
	 By:
	 	 ONTEX, Inc.
 its general partner

			
	 	 	 By:
	 	 /s/ Julie A. Boland

	 	 	 	 	 Name: Julie A. Boland

	 	 	 	 	 Title: Vice President and Treasurer

  

 SCHEDULE I 
  
 LEGAL NAMES; ORGANIZATIONAL IDENTIFICATION NUMBERS; STATES OR 
 JURISDICTIONS OF ORGANIZATION 
  

 Sched. I-1 

  
 SCHEDULE II 
  
 INTELLECTUAL PROPERTY AND LICENSES; TRADE NAMES 
  

 Sched. II-1 

  
 SCHEDULE III 
  
 LOCATIONS OF GRANTORS 
  

			
	 LOCATION
	  	Description of Location (State if Location
	 	  	(i) contains Equipment, Fixtures, Goods or Inventory,
	 	  	(ii) is chief place of business and chief executive office, or
	 	  	(iii) contains Records concerning Accounts and originals of Chattel Paper)

  

 Sched. III-1 

  
 SCHEDULE IV 
  
 DEPOSIT ACCOUNTS, SECURITIES ACCOUNTS AND COMMODITIES ACCOUNTS 
  

					
	 Name and Address
 of Institution
 Maintaining Account

	 	 Account Number

	 	 Type of Account

  

 Sched. IV-1 

  
 SCHEDULE V 
  
 UCC FINANCING STATEMENTS 
  
 UCC Financing Statements have been filed in the jurisdictions below against the Grantors:

  

			
	 Name of Debtor

	 	 Secretary of State

  

 Sched. V-1 

  
 SCHEDULE VI 
  
 COMMERCIAL TORT CLAIMS 
  

 Sched. VI-1 

  
 EXHIBIT A 
  
 ASSIGNMENT FOR SECURITY 
  
 [TRADEMARKS] [PATENTS] [COPYRIGHTS] 
  
 WHEREAS,                                     
        (the “Assignor”) [has adopted, used and is using, and holds all right, title and interest in and to, the trademarks and service marks listed on the annexed Schedule 1A, which trademarks
and service marks are registered or applied for in the United States Patent and Trademark Office (the “Trademarks”)] [holds all right, title and interest in the letter patents, design patents and utility patents listed on the
annexed Schedule 1A, which patents are issued or applied for in the United States Patent and Trademark Office (the “Patents”)] [holds all right, title and interest in the copyrights listed on the annexed Schedule 1A, which
copyrights are registered in the United States Copyright Office (the “Copyrights”)]; 
  
 WHEREAS, the Assignor has entered into a Security Agreement, dated December         , 2004 (as amended,
restated or otherwise modified from time to time, the “Security Agreement”), in favor of Silver Point Finance, LLC, as collateral agent for certain agents and lenders (in such capacity, together with any successors and assigns, the
“Assignee”); 
  
 WHEREAS, pursuant to the
Security Agreement, the Assignor has assigned to the Assignee and granted to the Assignee for the benefit of the Agents and Lenders (as such terms are defined in the Security Agreement) a continuing security interest in all right, title and interest
of the Assignor in, to and under the [Trademarks, together with, among other things, the good-will of the business symbolized by the Trademarks] [Patents] [Copyrights] and the applications and registrations thereof, and all proceeds thereof,
including, without limitation, any and all causes of action which may exist by reason of infringement thereof and any and all damages arising from past, present and future violations thereof (the “Collateral”), to secure the
payment, performance and observance of the Obligations (as defined in the Security Agreement); 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Assignor does hereby pledge, convey, sell, assign, transfer and set over unto the Assignee and
grants to the Assignee for the benefit of the Agents and the Lenders a continuing security interest in the Collateral to secure the prompt payment, performance and observance of the Obligations. 
  
 The Assignor does hereby further acknowledge and affirm that the rights and
remedies of the Assignee with respect to the Collateral are more fully set forth in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein. 
  

 Exh. A-1 

 IN WITNESS WHEREOF, the Assignor has caused this Assignment to be duly executed by its officer thereunto
duly authorized as of                              ,
20        . 
  

			
	 [GRANTOR]

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

			
	STATE OF                     	  	 
	 	  	ss.:
	COUNTY OF                     	  	 

  
 On this
         day of                         ,
20        , before me personally came
                            , to me known to be the person who executed the foregoing instrument, and
who, being duly sworn by me, did depose and say that s/he is the
                                 of
                                        
                        ,
a                                        ,
and that s/he executed the foregoing instrument in the firm name of
                                        
                                        , and
that s/he had authority to sign the same, and s/he acknowledged to me that he executed the same as the act and deed of said firm for the uses and purposes therein mentioned. 
  

	
	
	 

  

 Exh. A-3 

  
 SCHEDULE 1A TO ASSIGNMENT
FOR SECURITY 
  
 [Trademarks and Trademark Applications] 
 [Patent and Patent Applications] 
 [Copyright and Copyright Applications]

 Owned byCredit Agreement, dated as of July 14, 1997

 Exhibit 10.4 
  
 CREDIT AGREEMENT 
  
 between 
  
 OGLEBAY NORTON COMPANY 
  
 and 
  
 NATIONAL CITY BANK

  
 July 14, 1997 

 CREDIT AGREEMENT 
  
 Agreement made as of July 14, 1997 by and between OGLEBAY NORTON COMPANY (Borrower) and NATIONAL CITY BANK (Bank): 
  
 1. CROSS-REFERENCE — Certain terms are defined in section 9. 
  
 2. SUBJECT LOAN — Concurrently with the execution and delivery of this Agreement Bank
shall lend Borrower Seventeen Million Dollars ($17,000,000) (the Subject Loan) and disburse the proceeds to Borrower’s account, via wire transfer, as follows: 
  
 Key Bank 
 Cleveland, Ohio 
 ABA No. 041001039 
 Oglebay Norton Company 
 Acct. No.: 0101080630 
 Reference: National City Bank 
  
 2.01 SUBJECT NOTE—Borrower shall evidence the Subject Loan by executing
and delivering to Bank Borrower’s note 
  
 (a) payable in
twelve (12) semi-annual installments of principal commencing on January 15, 2002, and continuing each July 15 and January 15 thereafter in accordance with the amortization schedule attached hereto as Exhibit C; 
  
 (b) for the initial Interest Period commencing on the Fourth Amendment
Effective Date and ending on January 14, 2002, bearing interest of 7.82% per annum; 
  
 (c) after the initial Interest Period, bearing interest as provided in subsections 2.03 and 2.04 in respect of the Prime Rate Loans and Eurodollar Loan, as the case may be; and 
  
 (d) being in the form and substance of Exhibit B to this Agreement.

  
 2.02 OPTIONAL PREPAYMENTS — Borrower shall have the
right at all times to prepay the Subject Loan in whole or in part and without penalty or premium, but subject to Bank’s right, in the event of a prepayment, to be made whole by Borrower for fixed funding breakage charges. Each prepayment shall
be applied to the principal installments in the inverse order of their respective maturities. Concurrently with each prepayment Borrower shall prepay the unpaid interest accrued on the principal being prepaid. 
  
 2.03 INTEREST PERIOD DETERMINATION — (a) Subject to the other
provisions of this Agreement, there shall be only one Interest Period applicable at any time that the Subject Loan shill be a Eurodollar Loan. 

 (b) The duration of the initial Interest Period shall commence on the Fourth Amendment Effective Date and
shall end on January 14, 2002. The duration of each Interest Period subsequent to the initial Interest Period shall be three months. 
  
 (c) Each Interest Period is subject to the following: 
  
 (i) no Interest Period shall be effective which ends after Maturity; 
  
 (ii) each succeeding Interest Period shall commence on the day next succeeding the last day of the previous Interest
Period; 
  
 (iii) if any Interest Period begins on a day for
which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest Period shall end on the last Banking Day of such calendar month; and 
  
 (iv) if any Interest period would otherwise expire on a day which is not a
Banking Day, such Interest Period shall expire on the next succeeding Banking Day, provided that if any Interest Period would otherwise expire on a day which is not a Banking Day but is a day of the month after which no further
Banking Day occurs in such month, such Interest Period shall expire on the next preceding Banking Day. 
  
 (d) Subject to subsection 2.05 and so long as no Default Under The Agreement or an Event of Default is then in existence, the Subject Loan shall be
continued on the last day of each Interest Period as a Eurodollar Loan. If an Event of Default or a Default Under The Agreement exists on the last day of an Interest Period, the Subject Loan shall be a Prime Rate Loan until the next succeeding
January 15, April 15, July 15 or October 15 on which no Event of Default or Default Under The Agreement exists, so long as ONMS gives written notice to Bank that no Event of Default or Default Under The Agreement exists and of Borrower’s desire
to have the Subject Loan bear interest at the Eurodollar Rate subject to subsection 2.05 (“Eurodollar Restatement Notice”). Upon the commencement of each Interest Period, Borrower shall be deemed to have represented and warranted to Bank
that no Event of Default or Default Under The Agreement exists. 
  
 2.04. INTEREST — (a) Interest Rate for Prime Rate Loans — During such periods as the Subject Loan is a Prime Rate Loan, the unpaid principal amount thereof shall bear interest at a fluctuating rate per annum which shall at
all times be equal to the Prime Rate in effect from time to time plus the Applicable Margin in effect from time to time. 
  
 (b) Interest Rate for Eurodollar Loan — During such periods as the Subject Loan is a Eurodollar Loan, the unpaid principal amount thereof
shall bear interest at a rate per annum which shall at all times during any Interest Period applicable thereto be the relevant Eurodollar Rate for such Interest Period plus the Applicable Margin in effect from time to time. 

 (c) Default Interest — Notwithstanding the above provisions, if a Default Under This
Agreement or as Event of Default is in existence, all outstanding amounts of principal and, to the extent permitted by law, all overdue interest in respect of the Subject Loan shall bear interest, payable on demand, at a fluctuating rate per annum
equal to 2% per annum above the interest rate which is or would be applicable from time to time pursuant to subsection 2.04(a) to Prime Rate Loans in effect from time to time. 
  
 (d) Computations of Interest — All computations of interest hereunder shall be made in accordance with
subsection 8.10. 
  
 (e) Information as to Interest Rates
— Bank upon determining the interest rate shall promptly notify ONMS. Each such determination shall, absent manifest error, be final and conclusive and binding on all parties thereto. 
  
 (f) Accrual and Payment of Interest — Interest on the Subject
Loan shall accrue from and including the date of any borrowing and shall be payable on Maturity, on any repayment, prepayment or conversion (on the amount repaid, prepaid or converted) and, after Maturity, on demand, and in the case of any Subject
Loan, semi-annually on January 15 and July 15 of each year (or, if such day is not a Banking Day, the next succeeding Banking Day). 
  
 (g) Interest Margins — As used herein, the term “Applicable Margin” shall mean the particular rate per annum
determined by Bank in accordance with the Pricing Grid Table which appears below, based upon the results of the computation of the Leverage Ratio (as defined in Exhibit A) of Guarantor and such Pricing Grid Table, and the following
provisions: 
  
 (i) Commencing with the fiscal quarter of
Guarantor ended on or nearest to September 30, 2001, and continuing with each fiscal quarter thereafter, Bank will determine the Applicable Margin in accordance with the Pricing Grid Table for the Interest Period commencing January 15, 2002 and each
Interest Period thereafter, based on the consolidated Leverage Ratio of Guarantor for the most recently completed four (4) fiscal quarters, and identified in such Pricing Grid Table. Changes in the Applicable Margin based upon changes in such ratio
shall become effective on the first day of the month following the receipt by Bank pursuant to subsection 3A.01, as applicable, of the consolidated financial statements of Guarantor. 
  
 (ii) Notwithstanding the above provisions, during any period when (A) Guarantor has failed to timely deliver its financial
statements referred to in subsection 3A.01, (B) a Default Under This Agreement has occurred and is continuing, or (C) an Event of Default has occurred and is continuing, the Applicable Margin shall be the highest rate per annum indicated in the
Pricing Grid Table, regardless of Guarantor’s Leverage Ratio at such time. 

 (iii) Any changes in the Applicable Margin shall be determined by Bank in accordance with the above
provisions, and Bank will promptly provide notice of such determinations to ONMS. Any such determination by Bank pursuant to this subsection 2.04 shall be conclusive and binding absent manifest error. 
  
 “PRICING GRID TABLE” 
 (expressed in basis points) 
  

					
	 Leverage Ratio

	  	 Applicable Margin
 Eurodollar Loan

	  	Applicable Margin for
Prime Rate Loan

	 Any
	  	450	  	225

  
 2.05 INCREASED COSTS,
ILLEGALITY, ETC. — (a) In the event that Bank shall have determined on a reasonable basis (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto): 
  
 (i) on any date for determining the Eurodollar Rate for any Interest Period
that, by reason of any changes arising after the date hereof affecting the applicable interbank Eurodollar market, adequate and fair means do not exist for ascertaining the applicable interest rate on the basis provided for in the definition of
Eurodollar Rate; 
  
 (ii) at any time, that Bank shall incur
increased costs or reductions in the amounts received or receivable hereunder in an amount which Bank reasonably deems material with respect to any Eurodollar Loan (other than any increased cost or reduction in the amount received or receivable
resulting from the imposition of or a change in the rate of taxes or similar charges) because of (x) any change since the date hereof in any applicable law, governmental rule, regulation, guideline, order or request (whether or not having the force
of law), or in the interpretation or administration thereof and including the introduction of any new law or governmental rule, regulation, guideline, order or request (such as, for example, but not limited to, a change in official reserve
requirements, but, in all events, excluding reserves includable in the Eurodollar Rate pursuant to the definition thereof) and/or (y) other circumstances adversely affecting the interbank Eurodollar market or the position of Bank in such market; or

  
 (iii) at any time, that the making or continuance of any
Eurodollar Loan has become unlawful by compliance by Bank in good faith with any change since the date hereof in any law, governmental rule, regulation, guideline or order, or the interpretation or application thereof, or would conflict with any
thereof not having the force of law but with which Bank customarily complies or has become impracticable as a result of a contingency occurring after the date hereof which materially adversely affects the interbank Eurodollar market; 

 then, and in any such event, Bank shall (x) on or promptly following such date or time and
(y) promptly after the date on which such event no longer exists give notice (by telephone confirmed in writing) to ONMS of such determination. Thereafter (x) in the case of clause (i) above, Eurodollar Loan shall no longer be available until such
time as Bank notifies ONMS that the circumstances giving rise to such notice by Bank no longer exist, and any existing Eurodollar Loan shall be automatically converted to a Prime Rate Loan, (y) in the case of clause (ii) above, Borrower shall
pay to Bank, upon written demand therefor, such additional amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as Bank shall determine) as shall be required to compensate Bank, for such increased
costs or reductions in amounts receivable hereunder (a written notice as to the additional amounts owed to Bank, showing the basis for the calculation thereof submitted to ONMS by Bank shall, absent manifest error, be final and conclusive and
binding upon all parties hereto) and (z) in the case of clause (iii) above, the Eurodollar Loan shall be converted to a Prime Rate Loan as promptly as possible and, in any event, within the time period required by law. 
  
 (b) If Bank shall have determined that after the date hereof, the adoption
of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or any change in the interpretation of administration thereof lay any governmental authority, central bank or comparable agency charged by law with the
interpretation or administration thereof, or compliance by Bank or its parent corporation with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank, or comparable agency, in
each case trade subsequent to the date hereof, has or would have the effect of reducing by an amount reasonably deemed by Bank to be material the rate of return on Bank’s or its patent corporation’s capital or assets as a consequence of
Bank’s commitments or obligations hereunder to a level below that which Bank or its parent corporation could have achieved but for such adoption, effectiveness, change or compliance (taking into consideration Bank’s or its parent
corporation’s policies with respect to capital adequacy), then from time to time, within five days after demand by Bank, Borrower shall pay to Bank such additional amount or amounts as will compensate Bank or its parent corporation for such
reduction. Bank, upon determining in good faith that any additional amounts will be payable pursuant to this subsection 2.05(b), will give prompt written notice thereof to ONMS, which notice shall set forth, in reasonable detail, the basis of the
calculation of such additional amounts, although the failure to give any such notice shall not release or diminish each Borrower’s obligations to pay additional amounts pursuant to this subsection 2.05(b) upon the subsequent receipt of such
notice. 
  
 2.06 BREAKAGE COMPENSATION — Borrower shall
compensate Bank, upon its written request (which request shall set forth in reasonable detail the basis for requesting 

 
and the method of calculating such compensation), for all reasonable losses, expenses and liabilities (including, without limitation, any loss, expense or
liability incurred by reason of the liquidation or reemployment of deposits or other fiends required by Bank to fund its Eurodollar Loan) which Bank may sustain., (i) if for any reason (other than a default by Bank), borrowing of a Eurodollar Loan
does not occur on a date specified therefor in a Eurodollar Restatement Notice under subsection 2.03(d) or does not occur because of the existence Pf an Event of Default or Default Under The Agreement upon the commencement of an Interest Period,
(ii) if any repayment, prepayment, conversion or continuation of any of its Eurodollar Loan occurs on a date which is not the last day of an Interest Period applicable thereto; (iii) if any prepayment of any of its Eurodollar Loan is not made
on any date specified in a notice of prepayment given by a Borrower, or (iv) as a consequence of (x) any other default by a Borrower to repay its Eurodollar Loan when required by the terms of this Agreement or (y) 4n election trade pursuant to
subsection 2.05. Such loss, cost, expense and liability to Bank shall be deemed to include an amount determined by Bank to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such loan had such
event not occurred, at the interest rate that would have been applicable to such loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to effect a
conversion or continuation, for the period that would have been the Interest Period for such loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which Bank would bid were it to
bid, at the commencement of such period. A certificate of Bank setting forth any amount or amounts that Bank is entitled to receive pursuant to this section shall be delivered to ONMS and shall be conclusive absent manifest error. Borrower shall pay
Bank the amount shown as due on any such request within ten days after receipt thereof. 
  
 3A. INFORMATION — Borrower agrees that until the Subject Indebtedness shall have been paid in full, Borrower will cause Guarantor to deliver each of the following: 
  
 3A.01 FNANCIAL. STATEMENTS — Borrower will cause Guarantor to furnish to Bank. 
  
 (a) within forty-five (45) days after the end of each of the first three quarter-annual periods of each of Guarantor’s fiscal years, Guarantor’s
balance sheet as at the end of the period and its statements of cash flow and income for Guarantor’s current fiscal year to date, BE prepared (but unaudited) on a comparative basis with the prior year, in accordance with GAAP (EXCEPT as
disclosed therein) and in form and detail satisfactory to Bank; 
  
 (b) as soon as available (and in any event within ninety (90) days after the end of each of Guarantor’s fiscal years), a complete copy of an annual audit report (including, without limitation, all financial statements therein and notes
thereto) of Guarantor for that year which shall be: 
  
 (1)
prepared on a, comparative basis with the prior year, in accordance with GAAP (EXCEPT as disclosed therein) and in form and detail satisfactory to Bank, 

 (2) certified (without qualification as to GAAP) by independent public accountants selected by Guarantor
and satisfactory to Bank, and 
  
 (3) either (A) a written
statement of the accountants that in malting the examination necessary for their report or opinion they obtained no knowledge of the occurrence of any Default Under This Agreement or (B) if they know of any, their written disclosure of its nature
and status, PROVIDED, that the accountants shall not be liable directly or indirectly to anyone for any failure to obtain knowledge of any Default Under This Agreement; 
  
 (c) concurrently with the delivery of any financial statement to Bank pursuant to clause (a) or (b), a certificate by
Guarantor’s chief financial officer or its treasurer: 
  
 (1) certifying that to the best of the officer’s knowledge and belief, (A) those financial statements fairly present in all Material respects Guarantor’s financial condition and the results of its operations in accordance with
GAAP subject, in the case of interim financial statements, to routine year-end audit adjustments and (B) no Default Under This Agreement then exists or if any does, a brief description of the default and Guarantor’s intentions in respect
thereof, and 
  
 (2) setting forth calculations indicating
whether or not Guarantor is in compliance with the general financial standards of section 3B; 
  
 (d) promptly when filed (in final form.) or sent, a copy of 
  
 (1) each registration statement, form 10-K annual report, Form 10-Q quarterly report, Form 8,K current report or similar document filed by Guarantor with the Securities and Exchange Commission (or any similar federal
agency having regulatory jurisdiction over Guarantor’s securities) and 
  
 (2) each proxy statement, annual report, certificate, notice or other document sent by Guarantor to the holders of any of its securities (or any trustee under any indenture which secures any of its securities
or pursuant to which such securities are issued) and 
  
 (e) (i)
within ninety (90) days after the end of each fiscal year of Guarantor, annual pro forma projections of Guarantor and its Subsidiaries for the then current fiscal year, to be in form acceptable to Bank, and (ii) together with the delivery of the
quarterly financial statements for the third quarter of each fiscal year, annual projections for the next two (2) succeeding fiscal years, to be in form, acceptable to Bank; 

 (f) within forty-five (45) days after the end of each fiscal quarter of Guarantor, financial forecasts of
Guarantor and its Subsidiaries for the next fiscal quarter; and 
  
 (g) forthwith upon Bans written request, such other information in writing about Guarantor’s, Borrower’s and their respective Subsidiaries’ financial condition, properties and operations and about Pension Plans, if any, as
Bank may from time to time reasonably request. 
  
 3A.02 NOTICE — Borrower
will cause its chief financial officer or its treasurer, or in their absence another officer designated by Borrower, to give Bank prompt written notice whenever any officer of Borrower 
  
 (a) reasonably believes (or receives notice from any governmental agency alleging) that any Reportable Event has occurred in
respect of any Pension Plan or that Borrower has become in Material non-compliance with any law or governmental order referred to in subsection 3C.06 if non-compliance therewith would materially and adversely affect Borrower’s financial
condition or its properties, 
  
 (b) receives from the Internal
Revenue Service or any other federal, state or local taxing authority any allegation of any default by Borrower in the payment of any tax that is Material in amount or notice of any assessment in respect thereof, 
  
 (c) learns there has been brought against Borrower before any court,
administrative agency or arbitrator any litigation or proceeding which, if successful, might have a Material, adverse effect on Borrower, 
  
 (d) reasonably believes that any representation or warranty made in subsections 4B.01 through 4B.09 (both inclusive) shall have ceased in any Material
respect to be true and complete or that any Default Under This Agreement shall have occurred and which might have a Material adverse effect on Borrower’s financial condition, operations or properties or 
  
 (e) reasonably believes that there has occurred or begun to exist any other
event, condition of thing that likely may have a Material, adverse effect on Borrower’s financial condition, operations or properties. 
  
 3B. GENERAL FINANCIAL STANDARDS—Borrower agrees that until the Subject Indebtedness shall have been paid in full, Borrower will cause Guarantor to observe each of
the following: 
  
 (a) the financial covenants contained in
sections 5.7(a) through 5.7(f) of the Credit Agreement between Guarantor and KeyBank National Association dated May 15, 1998, as amended and restated as of April 3, 2000 and as subsequently amended as of June 30, 2001, November 9, 2001, December 24,
2001 and October 25, 2002 (the “KeyBank Credit Agreement”), as such financial covenants exist on October 25, 2002, a copy of such financial covenants and the definitions of the terms referenced therein being attached hereto as Exhibit A
and incorporated herein by reference as if set forth herein in their entirety; and 

 (b) Guarantor and its Subsidiaries shall not make Consolidated Capital Expenditures in an aggregate
amount exceeding Twenty-Seven Million Five Hundred Thousand ($27,500,000) in any fiscal year of Guarantor. 
  
 3C. AFFIRMATIVE COVENANTS — Borrower agrees that until the Subject Indebtedness shall have been paid in full, Borrower will perform and observe each of the following: 
  
 3C.01 TAXES — Borrower will pay in full 
  
 (a) prior in each case to the date when penalties for the nonpayment thereof
would attach, all taxes, assessments and governmental charges and levies for which it may be or become subject and 
  
 (b) prior in each case to the date the claim would become delinquent for non-payment, all other lawful claims (whatever their kind or nature) which, if
unpaid, might become a lien or charge upon its property; 
  
 PROVIDED, that no item need be paid so long as and to the extent that it is contested in good faith and by timely and appropriate proceedings which are effective to stay enforcement thereof. 
  
 3C.02 FINANCIAL RECORDS — Borrower will at all times keep true and
complete financial records in accordance with GAAP and, without limiting the generality of the foregoing, make appropriate accruals to reserves for estimated and contingent losses and liabilities. 
  
 3C.03 VISITATION — Borrower will permit Bank at all reasonable times

  
 (a) to visit and inspect Borrower’s properties and
examine its records at Bank’s expense and to make copies of and extracts from such records and 
  
 (b) to consult with Borrower’s officers, accountants, actuaries, trustees and plan administrators in respect of its financial condition, properties
and operations and the financial condition of its Pension Plans, each of which parties is hereby authorized to make such information available to Bank to the same extent that it would to Borrower. 
  
 3C.04 INSURANCE — Borrower will 
  
 (a) keep itself and all of its insurable properties insured at all times to
such extent, with such deductibles, by such insurers and against such hazards and liabilities as is generally and prudently done by like businesses, EXCEPT that if a more specific standard is provided in any Related Writing, the more specific
standard shall prevail and 

 (b) forthwith upon Bank’s written request, furnish to Bank such information about Borrower’s
insurance as Bank may from time to time reasonably request, which information shall be prepared in form and detail reasonably satisfactory to Bank and certified by an officer of Borrower. 
  
 3C.05 CORPORATE EXISTENCE — Borrower will at all times maintain its
corporate existence, rights and franchises. 
  
 3C.06 COMPLIANCE
WITH LAW — Borrower will comply with all laws (whether federal, state or local and whether statutory, administrative or judicial or other) and with every lawful governmental order (whether administrative or judicial) and will, without limiting
the generality of the foregoing, 
  
 (a) use and operate all of
its facilities and properties in Material compliance with all Environmental Laws and handle all hazardous materials in Material compliance therewith; keep in full effect each permit, approval, certification, license or other authorization required
by any environmental law for the conduct of any Material portion of its business; and comply in all other Material respects with all Environmental Laws; 
  
 (b) make a full and timely payment of premiums required by ERISA and perform and observe all such further and other requirements of ERISA such that no
Default Under ERISA shall occur or begin to exist and 
  
 (c)
comply with all Material requirements of all occupational health and safety laws; 
  
 PROVIDED, that this subsection shall not apply to any of the foregoing 
  
 (i) if and to the extent that the same shall be contested in good faith by timely and appropriate proceedings which are effective to stay enforcement
thereof and against which appropriate reserves shall have been established or 
  
 (ii) in any other case if non-compliance therewith would not materially and adversely affect Borrower’s financial condition, properties or business. 
  
 3C.07 PROPERTIES — Each Borrower will ensure that its properties and equipment used or useful in their business are
kept in good repair, working order and condition, normal wear and tear excepted and in accordance with manufacturer’s recommended procedures, if applicable. Each Borrower will, at its own costs, provide continuous and ongoing maintenance to its
properties and equipment and will comply with all Seaworthiness Directives and Bulletins. 
  
 3C.08 SWAP AGREEMENTS - On or prior to December 7, 2001, Borrower shall have entered into an interest rate swap agreement in the amount of the Subject Loans with a financial institution on terms reasonably acceptable
to Bank in all respects.” 

 3D. NEGATIVE COVENANTS — Borrower agrees that until the Subject Indebtedness shall have been paid in full, Borrower
will observe each of the following: 
  
 3D.01.1 MERGER AND SALE
OF ASSETS. No Company shall merge or consolidate with any other corporation or sell, lease or transfer or otherwise, dispose of all or a substantial part of its assets to any Person or entity, except that if no Default Under This Agreement or Event
of Default shall then exist or immediately thereafter shall begin to exist: 
  
 (a) any Subsidiary may merge with (i) Borrower (provided that Borrower shall be the continuing or surviving corporation) or (ii) any one (1) or more Pledgors, provided that either (A) the continuing or surviving
corporation shall be a Wholly-Owned Subsidiary which is a Pledgor, or (B) after giving effect to any merger pursuant to this sub-clause (ii), Borrower and/or one or more Wholly-Owned Subsidiaries which are Pledgor shall own not less than the same
percentage of the outstanding Voting Power of the continuing or surviving corporation as Borrower and/or one or more Wholly-Owned Subsidiaries (which are Pledgors) owned of the merged Subsidiary immediately prior to such merger; 
  
 (b) any Subsidiary may sell, lease, transfer or otherwise dispose of any of
its assets to (i) Borrower, (ii) any Wholly-Owned Subsidiary which is a Pledgor, or (iii) any Pledgor, of which Borrower and/or one or more Wholly-Owned Subsidiaries, which are Pledgors, shall own not less than the same percentage of Voting Power as
Borrower and/or one or more Wholly-Owned Subsidiaries (which are Pledgors) then own of the Subsidiary making such sale, lease, transfer or other disposition; 
  

(c) any Company may engage in any such conduct in connection with an Acquisition permitted pursuant to subsection 3D.01.2 hereof so long as the
resulting Person is either Borrower or a Pledgor; 
  
 (d)
Borrower may effectuate the Holding Company Reorganization pursuant to subsection 3D.01.3 hereof and the Canadian Amalgamation pursuant to Section 5.15 of the KeyBank Credit Agreement; and 
  
 (e) any Company may (i) sell, lease or transfer inventory in the ordinary
course of business, or (ii) dispose of obsolete or no longer useful equipment or other assets of such Company in the ordinary course of business so long as the aggregate amount of all such dispositions by all Companies does not exceed One Million
Dollars ($1,000,000.00) during any fiscal year of Borrower. 
  
 3D.01.2 – ACQUISITIONS. Without the prior written consent of Bank, no Borrower or Subsidiary shall effect an Acquisition or Permitted Acquisition. 
  
 3D.01.3 HOLDING COMPANY REORGANIZATION. Borrower may merge with a Wholly-Owned Subsidiary of the Holding Company as
contemplated by the Proxy Statement (the “Holding Company Reorganization”) so long as at the time of such transaction: 
  
 (a) no Default Under This Agreement or Event of Default shall then exist or immediately thereafter shall begin to exist; 

 (b) Borrower is in full compliance with this Agreement both prior to and subsequent to the Holding
Company Reorganization; 
  
 (c) the Holding Company shall have
executed and delivered to Bank, an assumption agreement, pursuant to which the Holding Company unconditionally assumes all of the obligations of Borrower under this Agreement and the other loan documents to which Borrower is a party; 
  
 (d) the Holding Company shall have executed and delivered to Bank such other
security documents as Bank deems necessary or advisable; and 
  
 (e) Borrower shall have provided to Bank such corporate governance and authorization documents and an opinion of counsel, in form and substance satisfactory to Bank, as may be deemed necessary or advisable by Bank. 
  
 Upon completion of the such transaction in accordance with the foregoing
requirements, the Holding Company shall (i) succeed to all of the rights and obligations of Borrower under this Agreement and the other loan documents to which Borrower is a party, (ii) for all purposes hereof be substituted for Borrower hereunder,
and (iii) constitute the “Borrower” bound by this Agreement and the other loan documents to which Borrower is a party. After the transactions contemplated in this Section 3D.01.3, to evidence Borrower’s obligations as a subsidiary of
the Holding Company, Borrower shall execute and deliver to Bank a guaranty of payment. 
  
 3D.01.4 CANADIAN AMALGAMATION. Borrower may cause the Canadian Amalgamation to occur so long as at the time of such transaction (a) no Default Under This Agreement or Event of Default shall then exist or immediately
thereafter shall begin to exist, and (b) Borrower is in full compliance with the loan documents both prior to and subsequent to the Canadian Amalgamation. 
  
 3D.02 CREDIT EXTENSIONS — Borrower will not 
  
 (a) make or keep any investment in any notes, bonds or other obligations of any kind for the payment of money or make or have outstanding at any time any
advance or loan to anyone or 
  
 (b) be or become a Guarantor of
any kind; 
  
 PROVIDED, that this subsection shall not apply to

  
 (i) any existing or future advance made to a current or
former officer, employee or agent of Borrower solely for the purpose of paying ordinary and necessary business expenses of Borrower, 
  
 (ii) any Permitted Investments, 

 (iii) any existing investment, advance, loan or Guaranty fully disclosed in Borrower’s Most Recent
4A.04 Financial Statements or in the Supplemental Schedule, or made pursuant to the Capital Construction Fund Agreement (Contract No. MA/CFF-328) between Borrower and the United States of America, as amended from time to time, 
  
 (iv) any existing or future Guaranty of any direct or contingent obligation
owing to Bank, 
  
 (v) any endorsement of a check or other medium
of payment for deposit or collection, or any similar transaction in the normal course of business, 
  
 (vi) investments (including advances) in, or a Guaranty relating to investments (including advances) by, any Subsidiary of the Borrower, or between
Subsidiaries of the Borrower, 
  
 (vii) investments in the
purchaser of any assets of Borrower permitted to be sold under Section 3D.01, 
  
 (viii) Borrower becoming a Guarantor under each of the KeyBank Credit Agreement and KeyBank Loan Agreement and entering into a Guaranty in connection with the KeyBank Credit Agreement and KeyBank Loan Agreement, or

  
 (ix) Borrower becoming a Guarantor under the Senior Secured
Fund Notes and entering into a Guaranty in connection with the 2002 Senior Secured Fund Notes. 
  
 3D.03 BORROWINGS — Borrower will not create, assume or have outstanding at any time any indebtedness for borrowed money or any Funded Indebtedness of any kind; PROVIDED, that this subsection shall not apply to

  
 (i) the Subject Indebtedness or any other Debt owing to Bank,

  
 (ii) any Subordinated indebtedness, 
  
 (iii) any existing or future indebtedness secured by a purchase money
security interest permitted by subsection 3D.04 or incurred under a lease permitted by subsection 3D.04, 
  
 (iv) any existing indebtedness fully disclosed in Borrower’s Most Recent 4A.04 Financial Statements or in the Supplemental Schedule or any renewal or
extension thereof in whole or in part, 
  
 (v) any other
indebtedness, provided that the incurrence of such indebtedness would not result in Borrower being in default under any of the general financial standards contained in Section 3B, 

 (vi) the indebtedness incurred under or in connection with the KeyBank Credit Agreement and the KeyBank
Loan Agreement, or 
  
 (vii) the indebtedness incurred under or
in connection with the 2002 Senior Secured Fund Notes. 
  
 3D.04
LIENS, LEASES —Borrower will not 
  
 (a) lease any property
as lessee or acquire or hold any property subject to any land contract, inventory consignment or other title retention contract, 
  
 (b) sell or otherwise transfer any Receivables, whether with or without recourse or 
  
 (c) suffer or permit any property now owned or hereafter acquired by it to be or become encumbered by any mortgage, security
interest, lien or financing statement; 
  
 PROVIDED, that this
subsection shall not apply to 
  
 (i) any tax lien, or any lien
securing workers’ compensation or unemployment insurance obligations, or any mechanic’s carrier’s or landlord’s lien, or any lien arising under ERISA, or any security interest arising under article four (bank deposits and
collections) or five (letters of credit) of the Uniform Commercial Code, or any similar security interest or other lien, EXCEPT that this clause (i) shall apply only to security interests and other liens arising by operation of law (whether
statutory or common law) and in the ordinary course of business and shall not apply to any security interest or other lien that secures any indebtedness for borrowed money or any Guaranty thereof or any obligation that is in Material default in any
manner (other than any default contested in good faith by timely and appropriate proceedings effective to stay enforcement of the security interest or other lien in question), 
  
 (ii) zoning or deed restrictions, public utility easements, minor title irregularities and similar matters having no adverse
effect as a practical matter on the ownership or use of any of the property in question, 
  
 (iii) any lien securing or given in lieu of surety, stay, appeal or performance bonds, or securing performance of contracts or bids (other than contracts for the payment of money borrowed), or deposits required by law
or governmental regulations or by any court order, decree, judgment or rule or as a condition to the transaction of business or the exercise of any right, privilege or license, EXCEPT that this clause (iii) shall not apply to any lien or deposit
securing an obligation that is in Material default in any manner (other than any default contested in good faith by timely and appropriate proceedings effective to stay enforcement of the security interest or other lien in question), 

 (iv) any mortgage, security interest or other lien securing only Borrower’s Debt to Bank,

  
 (v) any lien incident to or arising from the operation of the
business of Borrower or its Subsidiaries, including Permitted Liens under Borrower’s First Preferred Fleet Mortgage, which lien arises or is created in the ordinary course of Borrower’s or Borrower’s Subsidiaries business, 

 
 (vi) any lease other than any capitalized lease (it being agreed that a
capitalized lease is a lien rather than a lease for the purposes of this Agreement) so long as the aggregate annual rentals of all such leases do not exceed eight million dollars ($8,000,000), 
  
 (vii) any mortgage, security interest or other lien which (together with the
indebtedness secured thereby) secures the repayment of indebtedness, which indebtedness is fully disclosed in Borrower’s Most Recent 4A.04 Financial Statements or in the Supplemental Schedule, 
  
 (viii) any financing statement perfecting a security interest that would be
permissible under this subsection, 
  
 (ix) any mortgage security
interests or other liens on any of Borrower’s property or any leases, provided that Borrower continues to meet the general financial standards contained in Sections 3B.02 and 3B.04, after giving effect to such transactions 
  
 (x) any mortgage, security interest or other liens on the Borrower’s
property securing the Borrower’s obligations under the KeyBank Credit Agreement and the KeyBank Loan Agreement, including a Second Preferred Fleet Mortgage in favor of KeyBank National Association as security for Borrower’s obligations
under the KeyBank Credit Agreement, or 
  
 (xi) any mortgage,
security interest or other liens on the Borrower’s property (other than the “Wolverine” and “David Z. Norton” vessels) securing the Borrower’s obligations under the 2002 Senior Secured Fund Notes; provided, that,
notwithstanding the foregoing, the Borrower will not suffer or permit the “Wolverine” and “David Z. Norton” vessels to be encumbered by any mortgage, security interest or other liens except for the liens under the First Preferred
Fleet Mortgage and the Second Preferred Fleet Mortgage. 
  
 3D.05
FIXED ASSETS. Borrower and its Subsidiaries shall not invest in consolidated capital expenditures more than an aggregate amount equal to Forty-five Million Dollars ($45,000,000) on an annual basis. 

 4A. CLOSING — Prior to or at the execution and delivery of this Agreement Borrower shall have complied or caused
compliance with each of the following: 
  
 4A.01 SUBJECT NOTE
— Borrower shall have executed and delivered the Subject Note to Bank in accordance with subsection 2.01. 
  
 4A.02 RESOLUTIONS/INCUMBENCY — Borrower’s secretary or assistant secretary shall have certified to Bank (a) a copy of resolutions duly adopted
by Borrower’s board of directors in respect of this Agreement and (b) the names and true signatures of officers authorized to execute and deliver this Agreement and Related Writings on behalf of Borrower. 
  
 4A.03 LEGAL OPINION — Borrower’s counsel shall have rendered to
Bank their written opinion in respect of the matters referred to in subsections 4B.01, 4B.02, 4B.03 and 4B.04 and in respect of the perfection of each mortgage, security interest or other lien referred to in this section 4A, which opinion shall be
in such form and substance (and may be subject only to such qualifications and exceptions, if any) as shall be satisfactory to Bank. 
  
 4A.04 FINANCIAL STATEMENTS — Borrower shall have furnished to Bank at least one true and complete copy of each of the following: Borrower’s
annual audit report (including, without limitation, all financial statements therein and notes thereto and the accompanying accountants’ certificate and management report) prepared as of December 31, 1996 and annual audit reports for each of
Borrower’s two next preceding fiscal years (each having been certified by Borrower’s independent auditors) and Borrower’s unaudited interim financial statements prepared as of March 31, 1997. 
  
 4A.05 SECURITY AGREEMENTS — Borrower shall have executed and delivered
to Bank security agreements being in form and substance satisfactory to Bank and granting Bank security interests in as security for Borrower’s Debt to Bank. Borrower shall have joined with Bank in executing and filing documents and in making
and doing such further and other acts and things as Bank may deem necessary for the evidence, perfection or other protection of Bank’s security interests. 
  

4A.06 MORTGAGES — Borrower shall have executed and delivered to Bank as security for Borrower’s Debt to Bank a mortgage or mortgages being in
form and substance satisfactory to Bank and constituting the first mortgage lien on the vessel WOLVERINE and the vessel DAVID Z. NORTON. Borrower shall have furnished to Bank in respect of those vessels, at Borrower’s expense, an appraisal by
an appraiser satisfactory to Bank. 
  
 4A.07 DOCUMENTATION FEE
— Borrower shall have paid Bank a documentation fee of ten thousand dollars ($10,000). 

 4B. WARRANTIES — Subject only to such additions and exceptions, if any, as may be set forth in the Supplemental
Schedule or in Borrower’s Most Recent 4A.04 Financial Statements, Borrower represents and warrants as follows: 
  
 4B.01 EXISTENCE — Borrower is a duly organized and validly existing Delaware corporation in good standing. Borrower is duly qualified to transact
business in each state or other jurisdiction in which it owns or leases any real property or in which the nature of the business conducted makes such qualification necessary or, if not so qualified, such failure to qualify will have no Material
adverse effect upon Borrower’s financial condition and its ability to transact business. 
  
 4B.02 GOVERNMENTAL RESTRICTIONS — No registration with or approval of any governmental agency of any kind is required on the part of Borrower for the due execution and delivery or for the enforceability of this
Agreement or any Related Writing other than the filing or recording of documents with public officials, the noting of title certificates and similar acts and things related to the perfection of the mortgages, security interests and other liens
referred to in section 4A. 
  
 4B.03 CORPORATE AUTHORITY —
Borrower has requisite corporate power and authority to enter into this Agreement and to obtain and secure the Subject Loan in accordance with this Agreement. The officer executing and delivering this Agreement on behalf of Borrower has been duly
authorized to do so and to execute and deliver a Subject Note and other Related Writings in accordance with section 4A. Neither the execution and delivery of this Agreement or any Related Writing by Borrower nor its performance and observance of the
respective provisions thereof will violate any existing provision in its articles of incorporation, regulations or by-laws or any applicable law or violate or otherwise constitute a default under any contract or other obligation now existing and
binding upon it. Upon the execution and delivery thereof, this Agreement and the aforesaid Related Writings will each become a valid and binding obligation enforceable against Borrower according to their respective tenors subject, however, to any
applicable insolvency or bankruptcy law of general applicability and general principles of equity. 
  
 4B.04 LITIGATION — No litigation or proceeding is pending against Borrower before any court, administrative agency or arbitrator which might, if
successful, have a Material adverse effect on Borrower. 
  
 4B.05
TAXES — Borrower has filed all federal, state and local tax returns which are required to be filed by it and paid all taxes due as shown thereon (EXCEPT to the extent, if any, permitted by subsection 3C.01). The Internal Revenue Service has not
alleged any Material default by Borrower in the payment of any tax Material in amount or threatened to make any assessment in respect thereof which has not been reflected in Borrower’s Most Recent 4A.04 Financial Statements. 
  
 4B.06 TITLE — Borrower has good and marketable title to all assets
reflected in its Most Recent 4A.04 Financial Statements EXCEPT for such defects thereto and changes resulting from transactions in the ordinary course of business which, in the aggregate, would not have a Material adverse impact on Borrower’s
financial condition, properties or business. All such assets are clear of any mortgage, security interest or other lien of any kind other than any permitted by subsection 3D.04. 

 4B.07 LAWFUL OPERATIONS — Borrower’s operations have at all relevant times been and continue to
be in Material compliance with all requirements imposed by law, whether federal, state or local, whether statutory, regulatory or other, including (without limitation) ERISA, all Environmental Laws, and occupational safety and health laws and all
zoning ordinances. Without limiting the generality of the foregoing, to the best of Borrower’s knowledge, 
  
 (a) no condition exists at, on or under any facility or other property now or previously owned by Borrower which would give rise to any Material liability
under any Environmental Law; and Borrower has not received any notice from any governmental agency, court or anyone else that it is a potentially responsible party for the clean-up of any environmental waste site, is in violation of any
environmental permit or law or has been placed on any registry of solid or hazardous waste disposal site; 
  
 (b) No Material Accumulated Funding Deficiency exists in respect of any of Borrower’s Pension Plans; and no Reportable Event has occurred in respect
of any such plan which is continuing and which constitutes grounds either for termination of the plan or for court appointment of a trustee for the administration thereof. 
  
 4B.08 INSURANCE — Borrower’s insurance coverage complies with the standards set forth in subsection 3C.04 and
those set forth in the Related Writings referred to in subsections 4A.05 and 4A.06. 
  
 4B.09 FINANCIAL STATEMENTS — Each of the financial statements referred to in subsection 4A.04 has been prepared in accordance with generally accepted accounting principles applied on a basis consistent with those
used by Borrower during its then next preceding full fiscal year EXCEPT to the extent, if any, specifically noted therein and fairly presents in all Material respects its financial condition as of the date thereof (including a full disclosure of
Material contingent liabilities, if any) and the results of its operations, if any, for the fiscal period then ending. There has been no Material adverse change in Borrower’s financial condition, properties or business since the date of
Borrower’s Most Recent 4A.04 Financial Statements nor any change in its accounting procedures since the end of Borrower’s latest full fiscal year covered by those statements. 
  
 4B.10 DEFAULTS — No Default Under This Agreement exists, nor will any exist immediately after the execution and
delivery of this Agreement. 
  
 4B.11 — TRUE AND COMPLETE
DISCLOSURE — All factual information heretofore or contemporaneously furnished by or on behalf of Guarantor, Borrower or any of the Subsidiaries in writing to Bank far purposes of or in connection with this Agreement or any transaction
contemplated herein, other than the financial projections is, and all other such factual information hereafter furnished by or on behalf of such person in writing to Bank in respect of this Agreement or any other Related Writing will be, true and
accurate in all material respects on the date as of which such information is dated or certified and not incomplete by omitting to state any material fact necessary to make such information not 

 
misleading at such time in light of the circumstances under which such information was provided. As of the date hereof, there is no fact known to Borrower
which has, or could reasonably be expected to have, a Material Adverse Effect which has not theretofore been disclosed in writing to Bank. 
  
 4B.12 — NO MATERIAL ADVERSE EFFECT — Since June 30, 2001, there has been no change in the business, operations, property, assets, prospects,
liabilities or condition (financial or otherwise) of either Borrower or Guarantor and its respective Subsidiaries taken as a whole, except for changes, none of which, individually or in the aggregate, has had or could reasonably be expected to have
a Material Adverse Effect.” 
  
 5A. EVENTS OF DEFAULT — Each of the
following shall constitute an Event of Default hereunder: 
  
 5A.01 PAYMENTS — If any principal included in the Subject Indebtedness shall not be paid in full promptly when the same becomes payable; or if any Subject Indebtedness (EXCEPT principal) or any of Borrower’s other Debt to Bank
(EXCEPT any payable on demand) shall not be paid in full promptly when the same becomes payable and shall remain unpaid for ten (10) consecutive days thereafter; or if such of Borrower’s Debt, if any, to Bank, as may be payable on demand shall
not be paid in full within ten (10) days after any actual demand for payment. 
  
 5A.02 WARRANTIES — If any representation, warranty or statement made in this Agreement or in any Related Writing referred to in section 4A shall be false or erroneous in any respect when made; or if any
representation, warranty or statement hereafter made by or on behalf of Borrower in any Related Writing not referred to in section 4A shall be false or erroneous in any Material respect when made. 
  
 5A.03 COVENANTS WITH GRACE — If anyone (other than Bank and its agents)
shall fail or omit to perform and observe any agreement (other than those referred to in subsections 5A.01 or 5A.03) contained in this Agreement or any Related Writing that is on its part to be complied with, and that failure or omission shall not
have been fully corrected within thirty (30) days after the giving of written notice to Borrower by Bank that it is to be remedied. 
  
 5A.04 CROSS-DEFAULT — If either Borrower’s payments on indebtedness for borrowed money (regardless of maturity) or any of its payments on Funded
Indebtedness shall be or become “in default” (as defined below) EXCEPT only if the aggregate unpaid principal balance of all such indebtedness in default for any Borrower does not exceed five million dollars ($5,000,000) at any one time
outstanding, In this subsection, in default means that (a) there shall have occurred (or shall exist) in respect of the indebtedness in question (either as in effect at the date of this Agreement or as in effect at the time m question) any
event, condition or other thing which constitutes, or which with the giving of notice or the lapse of any applicable grace period or both would constitute, a default which accelerates the maturity of any such indebtedness; or (b) any such
indebtedness (other than any payable on demand) shall not have been paid in full at its stated maturity; or (c) any such indebtedness payable on demand shall not have been paid in full within ten (10) Banking Days after any actual demand for
payment. 

 5A.05. BORROWER’S AND GUARANTOR’S SOLVENCY — If (a) either Borrower or Guarantor shall
discontinue operations, or (b) either Borrower or Guarantor shall commence any Insolvency Action of any kind or admit (by answer, default or otherwise) the Material allegations of, or consent to any relief requested in, any Insolvency Action of any
land commenced against such party by its creditors or any thereof, or (c) any creditor or creditors shall commence against either Borrower or Guarantor any Insolvency Action of any kind which shall remain in effect (neither dismissed nor stayed) for
sixty (60) consecutive days. 
  
 5A.06. MATERIAL ADVERSE EFFECT
— There shall have occurred a change in the business, operations, property, assets, prospects, liabilities or condition (financial or otherwise) of either Borrower or Guarantor and its respective Subsidiaries taken as a whole that has had or
that could reasonably be expected to have a Material Adverse Effect. 
  
 5B.
EFFECTS OF DEFAULT — Notwithstanding any contrary provision or inference in this Agreement or in any Related Writing: 
  
 5B.01 OPTIONAL DEFAULTS - If any Event of Default referred to in subsection 5A.01 through 5A.04 and subsection 5A.06, both inclusive, shall occur and be
continuing, Bank shall have the right in its discretion, by giving written notice to Borrower, to accelerate the maturity of all of Borrower’s Debt to Bank (other than Debt, if any, already due and payable), and all such Debt shall thereupon
become and thereafter be immediately due and payable in full without any presentment or demand and without any further or other notice of any kind, all of which are hereby waived by Borrower. 
  
 5B.02 AUTOMATIC DEFAULTS — If any Event of Default referred to in
subsection 5A.05 shall occur, all of Borrower’s Debt to Bank (other than Debt, if any, already due and payable) shall thereupon become and there after be immediately due and payable in full, all without any presentment, demand or notice of any
kind, which are hereby waived by Borrower. 
  
 5B.03 OFFSETS
— If there shall occur or exist any Default Under This Agreement referred to in subsection 5A.05, then, so long as that Default Under This Agreement exists, Bank shall have the right at any time to set off against and to appropriate and apply
toward the payment of the Subject Indebtedness then owing to it, whether or not the same shall then have matured, any and all deposit balances then owing by Bank to or for the credit or account of Borrower, all without notice to or demand upon
Borrower, all such notices and demands being hereby expressly waived. 
  
 6A.
INDEMNITY: STAMP TAXES — Borrower will pay all stamp taxes and similar taxes, if any, including interest and penalties, if any, payable in respect of the issuance of the Subject Indebtedness. 

 6B. INDEMNITY: UNFRIENDLY TAKEOVERS — Borrower agrees to indemnify Bank and hold Bank harmless from and against any
and all liabilities, losses, damages, costs and expenses of any kind (including, without limitation, the reasonable fees and disbursements of counsel in connection with any investigative, administrative or judicial proceeding, whether or not Bank
shall be designated a party thereto) which may be incurred by Bank relating to or arising out of any actual or proposed use of proceeds of the Subject Loan in connection with the financing of an acquisition of any corporation or other business
entity, PROVIDED that Bank shall have no right to be indemnified for its own gross negligence or willful misconduct as determined by a court of competent jurisdiction. 
  
 6C. INDEMNITY: COLLECTION COSTS — If any Event of Default shall occur and shall be continuing, Borrower will pay Bank such further
amounts, to the extent permitted by law, as shall cover Bank’s reasonable costs and expenses (including, without limitation, the reasonable fees, interdepartmental charges and disbursements of its counsel) incurred in collecting the Subject
Indebtedness or in otherwise enforcing its rights and remedies in respect thereof. 
  
 7. BANK’S PURPOSE — Bank represents and warrants to Borrower that Bank is familiar with the Securities Act of 1933 as amended and the rules and regulations thereunder and is not entering into this Agreement with any intention of
violating that Act regulations or any rule or regulation thereunder, it being understood, however, that Bank shall at all times retain full control of the disposition of its assets. 
  
 8. INTERPRETATION — This Agreement and the Related Writings shall be governed by the following provisions: 
  
 8.01 WAIVERS — Bank may from time to time in its discretion grant
Borrower waivers and consents in respect of this Agreement or any Related Writing or assent to amendments thereof, but no such waiver or consent shall be binding upon Bank unless specifically granted by Bank in writing, which writing shall be
strictly construed. Without limiting the generality of the foregoing, Borrower agrees that no course of dealing in respect of, nor any omission or delay in the exercise of, any right, power or privilege by Bank shall operate as a waiver thereof, nor
shall any single or partial exercise thereof preclude any further or other exercise thereof or of any other, as each such right, power or privilege may be exercised either independently or concurrently with others and as often and in such order as
Bank may deem expedient. 
  
 8.02 CUMULATIVE PROVISIONS —
Each right, power or privilege specified or referred to in this Agreement or any Related Writing is in addition to and not in limitation of any other rights, powers and privileges that Bank may otherwise have or acquire by operation of law, by other
contract or otherwise. 
  
 8.03. BENEFIT OF AGREEMENT — (a)
Successors and Assigns Generally — This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns, provided, that no Borrower may assign or transfer
any rights or obligations hereunder without the prior written consent of Bank. Bank may assign the Subject Loan and its rights and obligations hereunder with the prior written consent of Borrower, provided, that upon the assignment of all of
its rights and obligations, the term “Bank” shall mean the assignee thereof. 

 (b) Participations — Notwithstanding the foregoing, Bank may at any time grant participations in any
of its rights hereunder or under the Subject Note to any person, provided that in the case of any such participation, 
  
 (i) the participant shall not have any rights under this Agreement or any of the other Related Writing, including rights of consent, approval or waiver
(the participant’s rifts against such Bank in respect of such participation to be those set forth in the agreement executed by such Bank in favor of the participant relating thereto); 
  
 (ii) Bank’s obligations under this Agreement shall remain unchanged;

  
 (iii) Bank shall remain solely responsible to the other
parties hereto for the performance of such obligations; 
  
 (iv)
Bank shall remain the holder of the Subject Note for all purposes of this Agreement; and 
  
 (v) Borrower shall continue to deal solely and directly with Bank in connection with Bank’s rights and obligations under this Agreement, and all amounts payable by Borrower hereunder shall be determined as if
Bank had not sold such participation, except that the participant shall be entitled to the benefits of subsections 2.05 and 2.06 of this Agreement to the extent that Bank would be entitled to such benefits if the participation had not been entered
into or sold. 
  
 (c) Joint and Several Obligations —
All references to the obligations, covenants and representations and warranties of Borrower shall, unless otherwise expressly indicated, mean the joint and several obligations, covenants and representations and warranties of ONMS and LLC.

  
 8.04 SURVIVAL OF PROVISIONS — All representations and
warranties made in or pursuant to this Agreement or any Related Writing shall survive the execution and delivery of this Agreement and the Subject Note. The provisions of section 6 shall survive the payment of the Subject Indebtedness. 

 
 8.05 IMMEDIATE U.S. FUNDS — Any reference to money is a reference to
lawful money of the United States of America which, if in the form of credits, shall be in immediately available funds. 
  
 8.06 CAPTIONS — The several captions to different sections and subsections of this Agreement are inserted for convenience only and shall be ignored
in interpreting the provisions thereof. 

 8.07 SUBSECTIONS — Each reference to a section includes a reference to all subsections thereof
(i.e., those having the same character or characters to the left of the decimal point) EXCEPT where the context clearly does not so permit. 
  
 8.08 ILLEGALITY — If any provision in this Agreement or any Related Writing shall for any reason be or become illegal; void or unenforceable, that
illegality, voidness or unenforceability shall not affect any other provision. 
  
 8.09 OHIO LAW — This Agreement and the Related Writings and the respective rights and obligations of the parties hereto shall be construed in accordance with and governed by internal Ohio law and the federal laws
of the United States of America. 
  
 8.10 INTEREST COMPUTATIONS
— Interest for any given period shall accrue on the first day thereof but not on the last day thereof. Interest shall be computed on the basis of a 360-day year and the actual number of days elapsed. In no event shall interest accrue at a
higher rate than the maximum rate, if any, permitted by law. 
  
 8.11 NOTICE — A notice to or request of Borrower shall be deemed to have been given or made under this Agreement or any Related Writing either upon the delivery of a writing to that effect (either in person or by transmission of a
telecopy or facsimile device) to an officer of Borrower or five (5) days after a writing to that effect shall have been deposited in the United States mail and sent, with postage prepaid, by registered or certified mail, properly addressed to
Borrower (Attention: chief financial officer). No other method of actually giving actual notice to or making a request of Borrower is hereby precluded. Every notice required to be given to Bank pursuant to this Agreement or any Related Writing shall
be delivered (either in person or by transmission of a telecopy or facsimile device) to an Account Officer of Bank or five (5) days after a writing to that effect shall have been deposited in the United States mail and sent, with postage prepaid, by
registered or certified mail, properly addressed to Bank (Attention: Multinational Division). A notice or request by mail is properly addressed to a party when addressed to it at the address set forth opposite its signature below or at such other
address as that party may furnish to each of the others in writing for that purpose. A telecopy or facsimile transmission is transmitted to a party when transmitted to the telecopy or facsimile number set forth opposite that party’s signature
below (or at such other telecopy or facsimile number as that party may furnish to the other in writing for that purpose). Notice sent to either party via a regular overnight courier service shall be deemed delivered the next business day.

  
 8.12 ACCOUNTING TERMS — Any accounting term used in this
Agreement shall have the meaning ascribed thereto by GAAP subject, however, to such modification, if any, as may be provided by section 9 or elsewhere in this Agreement. 
  
 8.13 ENTIRE AGREEMENT — This Agreement and the Related Writings referred to in or otherwise contemplated by this
Agreement set forth the entire agreement of the parties as to the transactions contemplated by this Agreement. 

 8.14 WAIVER OF JURY TRIAL — The parties acknowledge and agree that any controversy that may arise
under this Agreement and the Related Writings would involve difficult and complex issues and therefore agree that any law suit growing out of or incidental to any such controversy will be tried in a court of competent jurisdiction by a judge sitting
without a jury. 
  
 8.15 LATE CHARGE; APPLICATION OF PAYMENTS
— If Borrower fails to pay any amount due hereunder, or any fee in connection herewith, in full within ten (10) days after its due date, Borrower will, in each case, incur and shall pay a late charge equal to the greater of twenty dollars
($20.00) or five percent (5%) of the unpaid installment amount. The payment of a late charge will not cure or constitute a waiver of any Event of Default under this Agreement. Except as otherwise agreed in writing, payments will be applied first to
accrued but unpaid interest and fees, in that order, on an invoice by invoice basis in the order of their respective due dates, until paid in full, then to late charges and then to principal. 
  
 8.16 SHARING OF INFORMATION — Bank shall have the right to furnish to
its Affiliates, and to such other persons or entities as Bank shall deem advisable for the conduct of its business, information concerning the business, financial condition, and property of Borrower, the amount of the Debt of Borrower, and the
terms, conditions, and other provisions applicable to the respective parts thereof. 
  
 9. DEFINITIONS — As used in this Agreement and in the Related Writings, EXCEPT where the context clearly requires otherwise, 
  
 Account Officer means that officer who at the time in question is designated by Bank as the officer having primary responsibility for giving
consideration to Borrower’s requests for credit or, in that officer’s absence, that officer’s immediate superior or any other officer who reports directly to that superior officer; 
  
 Accumulated Funding Deficiency shall have the meaning ascribed
thereto in section 302(a)(2) of ERISA; 
  
 Acquisition
shall mean any transaction or series of related transactions for the purpose of or resulting directly or indirectly, in (a) the acquisition of all or substantially all of the assets of any person, or any business or division of any person, (b) the
acquisition of in excess of fifty percent (50%) of the stock (or other equity interest) of any person, or (c) the acquisition of another person (other than a Subsidiary) by a merger of consolidation or any other combination with such person;

  
 Affiliate means, when used with reference to any
person or entity (the subject), a person or entity that is in control of, under the control of, or under common control with, the subject, the term control meaning the possession, directly or indirectly, of the power to direct the
management or policies of a person or entity, whether through the ownership of voting securities, by contract, or otherwise; 
  
 Agreement means this Agreement and includes each amendment, if any, to this Agreement; 

 Applicable Margin shall have the meaning provided in subsection 2.04; 
  
 Bank means National City Bank, a national banking association
headquartered in Cleveland, Ohio; 
  
 Banking Day means
any day other than a Saturday or a Sunday or a public holiday or other day on which banking institutions in Cleveland, Ohio, are generally closed and do not conduct a general banking business; 
  
 Borrower means Oglebay Norton Company, a Delaware corporation;

  
 Change in Control means the acquisition by any Person
or two or more Persons acting in concert of beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934) of more than 24% of the outstanding shares of voting stock of the
Borrower, unless such acquisition has been approved by the Board of Directors of the Borrower consisting at the time of such approval of persons a majority of whom have been Directors of the Borrower for a period of at least 24 consecutive months;

  
 Consideration shall mean, in connection with an
Acquisition, the aggregate consideration paid, including borrowed funds, cash, the issuance of securities or notes, the assumption or incurring of liabilities (direct or contingent to the extent any such contingent obligation is considered to be a
liability in accordance with GAAP), the payment of consulting fees or fees for a covenant not to compete and any other consideration paid for the purchase; 
  
 Current Assets means the value of all such assets (after deducting applicable reserves, if any, and without consideration to any reappraisal or
write-up of assets) as determined in accordance with GAAP; 
  
 Current Liabilities means the value of all such liabilities as determined in accordance with GAAP and includes (without limitation) all accrued taxes and all principal of any Funded Indebtedness maturing within twelve months of the
date of determination; 
  
 Debt means, collectively, all
liabilities of the party or parties in question to Bank, whether owing by one such party alone or with one or more others in a joint, several, or joint and several capacity, whether now owing or hereafter arising, whether owing absolutely or
contingently, whether created by loan, overdraft, Guaranty of payment or other contract or by quasi-contract or tort, statute or other operation of law or otherwise, whether incurred directly to Bank or acquired by it by purchase, pledge or
otherwise, and whether participated to or from Bank in whole or in part; and in the case of Borrower includes, without limitation, the Subject Indebtedness; 
  
 Debt Service Coverage Ratio means, as of any date of determination, the ratio of the Borrower’s EBITDA, on a consolidated basis, for its most
recently completed four fiscal quarters (whether or not such fiscal quarters are in the same fiscal year), to the Borrower’s Debt Service Requirements, on a consolidated basis, for such period, where “EBITDA” means, for any period and
for any person, on a consolidated basis, such person’s Net Income, plus the sum of (i) such person’s interest expense (including for such purpose the 

 
Interest Expense of any person which is not a consolidated subsidiary in respect of Funded Indebtedness as to which the Borrower or a consolidated subsidiary
has issued a Guaranty), (ii) such person’s income tax expense, (iii) such person’s depreciation expense, and (iv) such person’s amortization expense; 
  
 Debt Service Requirements means, for any period and for any person, on a consolidated basis, the sum of such
person’s (i) interest expense (determined as provided in clause (i) of the definition of EBITDA), plus (ii) regularly scheduled principal payments in respect of all Funded Indebtedness of the nature described in the definition of the term
Funded Indebtedness; 
  
 Default Under ERISA means (a) the
occurrence or existence of a Material Accumulated Funding Deficiency in respect of any of Borrower’s Pension Plans, (b) any failure by Borrower to make a full and timely payment of premiums required by ERISA for insurance against any
employer’s liability in respect of any such plan, (c) any Material breach of a fiduciary duty by Borrower or any trustee in respect of any such plan or (d) the existence of any action for the forceable termination of any such plan; 

 
 Default Under This Agreement means an event, condition or thing
which constitutes (or which with the lapse of any applicable grace period or the giving of notice or both would constitute) an Event of Default referred to in section 5A and which has not been appropriately waived in writing in accordance with this
Agreement or corrected to Bank’s full satisfaction; 
  
 Environmental Law means the Comprehensive Environmental Response, Compensation, and Liability Act (42 USC 9601 et seq.), the Hazardous Material Transportation Act (49 USC 1801 et seq.), the Resource Conservation and Recovery Act (42
USC 6901 et seq.), the Federal Water Pollution Control Act (33 USC 1251 et seq.), the Toxic Substances Control Act (15 USC 2601 et seq.) and the Occupational Safety and Health Act (29 USC 651 et seq.), as such laws have been or hereafter may be
amended, and any and all analogous future federal, or present or future state or local, statutes and the regulations promulgated pursuant thereto; 
  
 ERISA means the Employee Retirement Income Security Act of 1974 (P.L. 93-406) as amended from time to time and in the event of any amendment
affecting any section thereof referred to in this Agreement, that reference shall be a reference to that section as amended, supplemented, replaced or otherwise modified; 
  
 ERISA Regulator means any governmental agency (such as the Department of Labor, the Internal Revenue Service and the
Pension Benefit Guaranty Corporation) having any regulatory authority over any of Borrower’s Pension Plans; 
  
 Eurodollar Loan shall mean the Subject Loan when bearing interest at the rate provided in subsection 2.04(b); 
  
 Eurodollar Rate shall mean with respect to each Interest Period for a
Eurodollar Loan, (i) the rate per annum which appears on page 3750 of the Telerate Screen for a Eurodollar Loan (or on any successor or substitute page, or on any electronic publication of a 

 
recognized service organization providing comparable rate quotations, in any case as determined from time to time by Bank) for deposits of $1,000,000 in same
day funds for a maturity corresponding to such Interest Period as of 11:00 A.M. (London time) on the date which is two Banking Days prior to the commencement of such Interest period, divided (and rounded upward to the nearest  1/16th of 1%) by (ii) a percentage equal to 100% minus the then stated maximum rate of all reserve requirements
(including, without limitation, any marginal, emergency, supplemental, special or other reserves and without benefit of credits for proration, exceptions or offsets which may be available from time to time) applicable to any member bank of the
Federal Reserve System in respect of Eurocurrency liabilities as defined in Regulation D (or any successor category of liabilities under Regulation D). In the event that such rate is not available at such time for any reason, the rate referred to in
clause (i) above shall be the interest rate per annum equal to the average (rounded upward to the nearest  1/1
6th of 1% per annum), of the rate per annum at which Dollar deposits of 51,000,000 for a maturity corresponding to the Interest Period are offered to prime banks in the London interbank Eurodollar market, determined as of 11:00 A.M. (London time) on
the date which is two Banking Days prior to the commencement of such Interest Period; 
  
 Event of Default is defined in section 5A; 
  
 Federal Funds Effective Rate shall mean, for any period, a fluctuating interest rate equal for each day during such period to the weighted average
of the rates on overnight Federal Funds transactions with members of the Federal Reserve System arranged by Federal Funds brokers, as published for such day (or, if such day is not a Banking Day, for the next preceding Banking Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which is a Banking Day, the average of the quotations for such day on such transactions received by Bank from three Federal Funds brokers of recognized standing selected by
Bank; 
  
 Fourth Amendment Effective Date shall mean
September 30, 2001; 
  
 Funded Indebtedness means
indebtedness of the person or entity in question which matures or which (including each renewal or extension, if any, in whole or in part) remains unpaid for more than twelve months after the date originally incurred and includes, without limitation
(a) any indebtedness (regardless of its Maturity) if it is renewable or refundable in whole or in part solely at the option of that person or entity (in the absence of default) to a date more than one year after the date of determination, (b) any
capitalized lease, (c) any Guaranty of Funded Indebtedness owing by another person or entity and (d) any Funded Indebtedness secured by a security interest, mortgage or other lien encumbering any property owned or being acquired by the person or
entity in question even if the full faith and credit of that person or entity is not pledged to the payment thereof; PROVIDED, that in the case of any indebtedness payable in installments or evidenced by serial notes or calling for sinking fund
payments, those payments maturing within twelve months after the date of determination shall be considered current indebtedness rather than Funded Indebtedness for the purposes of section 3B but shall be considered Funded Indebtedness for all other
purposes; 

 GAAP means generally accepted accounting principles applied in a manner consistent with those used
in Borrower’s latest fiscal year-end financial statements referred to in subsection 4A.04; 
  
 Guarantor means Oglebay Norton Company, an Ohio corporation and successor in interest to Oglebay Norton Company, a Delaware corporation;

  
 Interest Period with respect to any Eurodollar Loan
shall mean the interest period applicable thereto, as determined pursuant to subsection 2.03; 
  
 Insolvency Action means either (a) a pleading of any kind filed by the person, corporation or entity (an insolvent) in question to seek relief from the insolvent’s creditors, or filed by the
insolvent’s creditors or any thereof to seek relief of any kind against that insolvent, in any court or other tribunal pursuant to any law (whether federal, state or other) relating generally to the rights of creditors or the relief of debtors
or both, or (b) any other action of any kind commenced by an insolvent or the insolvent’s creditors or any thereof for the purpose of marshalling the insolvent’s assets and liabilities for the benefit of the insolvent’s creditors; and
Insolvency Action includes (without limitation) a petition commencing a case pursuant to any chapter of the federal bankruptcy code, any application for the appointment of a receiver, trustee, liquidator or custodian for the insolvent or any
substantial part of the insolvent’s assets, and any assignment by an insolvent for the general benefit of the insolvent’s creditors; 
  
 KeyBank Credit Agreement shall have the meaning set forth in Section 3(B)(a); 
  
 Key Bank Loan Agreement shall mean that certain Loan Agreement dated April 3, 2000 between Guarantor and KeyBank
National Association and as amended June 30, 2001, November 9, 2001, December 24, 2001 and October 25, 2002; 
  
 Level I Acquisition shall mean, with respect to an Acquisition made by any Company, that the aggregate consideration paid in connection with such
Acquisition is less than or equal to Five Million Dollars ($5,000,000.00); 
  
 Level I Acquisition Limit shall mean Fifteen Million Dollars ($15,000,000); 
  
 Leverage Ratio” shall have the meaning provided in Exhibit A; 
  
 Material means relative to any occurrence of whatever nature (including any adverse determination in any litigation,
arbitration or governmental investigation) a material adverse effect on a consolidated basis for Borrower and its subsidiaries in accordance with GAAP; 
  
 Material Adverse Effect shall mean any or all of the following: (i) any material adverse effect on the business, operations, property, prospects,
assets, liabilities or condition (financial or otherwise) of, when used with reference to Guarantor, each Borrower, or Guarantor together with its Subsidiaries, taken as a whole, or when used with respect to either Borrower, that Borrower and its
Subsidiaries taken as a whole, of when used with reference to any other person, such person and its Subsidiaries, taken as a whole, as the 

 
case may be; (ii) any material adverse effect on the ability of each Borrower or Guarantor to perform its obligations under this Agreement, the Guaranty or
any other Related Writing to which it is a party; (iii) any material adverse effect on the ability of each Borrower or Guarantor to pay their liabilities and obligations as they mature or become due; or (iv) any material adverse effect on the
validity, effectiveness or enforceability, as against any Borrower, of this Agreement or any of the Related Writing to which it is a party or, as against Guarantor, of the Guaranty and or of the Related Writing to which it is a party; 
  
 Maturity means the date on which the Subject Indebtedness (or portion
thereof) in question is scheduled for payment in accordance with this Agreement (without the benefit of any grace period) EXCEPT that in the event of any acceleration of Maturity pursuant to section 5B, Maturity means the date as of which the
Subject Indebtedness becomes immediately payable in full in accordance with section 5B; 
  
 Most Recent 4A.04 Financial Statements means Borrower’s most recent financial statements that are referred to in subsection 4A.04; 
  
 Net Income means net income of Borrower and its consolidated Subsidiaries as determined in accordance with GAAP, but
without giving effect to any gain resulting from any reappraisal or write-up of any asset; 
  
 Net Worth means the excess (as determined in accordance with GAAP) of the net book value of Borrower’s and its consolidated Subsidiaries total assets over Borrower’s Total Liabilities; 
  
 Note Purchase Agreement shall mean that certain Senior Secured Note
Purchase Agreement, dated as of October 25, 2002, among Guarantor, the guarantors listed therein, The 1818 Mezzanine Fund II, L.P. and the other Purchasers signatories thereto, as amended, supplemented and otherwise modified from time to time;

  
 Pension Plan means a defined benefit plan (as defined
in section 3(35) of ERISA) of Borrower and includes, without limitation, any such plan that is a multi-employer plan (as defined in section 3(37) of ERISA) applicable to any of Borrower’s employees; 
  
 Permitted Acquisitions shall mean, collectively, (a) the acquisition
by Global Stone Port Inland, Inc. of all of the partnership interests of Michigan Limestone, L.P., a Michigan limited partnership, (b) the acquisition of substantially all of the assets of Pete Lien & Sons, Inc. by Oglebay Norton Industrial
Sands, Inc., and (c) the acquisition of substantially all of the asset of Jebco Abrasives, Inc. by Oglebay Norton Industrial Sands, Inc.; 
  
 Permitted Investments means: 
  
 (a) direct obligations of or obligations guaranteed by the United States of America; 

 (b) obligations issued or guaranteed by an agency or instrumentality of the United States of America or
obligations of the Federal National Mortgage Association, the Student Loan Marketing Association, the Federal Home Loan Banks or the Federal Farm Credit Bank; 
  

(c) bankers’ acceptances drawn on and accepted by banks, and certificates of deposit or commercial paper of banks, with a combined capital and
surplus aggregating at least $100,000,000 and if such acceptances are drawn on, or such certificates of deposits or commercial paper are issued by any bank, the unsecured deposits or securities of such bank shall be, at the time of acquisition,
rated within one of the two highest rating categories assigned by either Rating Agency; 
  
 (d) interest-bearing demand or time deposits or certificates of deposit of a bank or trust company continuously secured and collateralized by obligations of the type described in paragraph (a) hereof, or by
obligations of the type described in paragraph (k) hereof, having a market value determined not less than daily equal at all times to at least the amount of such deposit or certificate, to the extent such deposit or certificate is not insured by the
Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, or any successors thereto; 
  
 (e) interest-bearing notes or commercial paper of any bank, or interest-bearing notes or commercial paper rated within one of the three highest rating
categories assigned by either Rating Agency, issued by a bank or bank holding company which has a combined capital and surplus aggregating at least $100,000,000, or commercial paper rated within rating category A1+, A1, A2, P1 or P2, as assigned by
the applicable Rating Agency, issued by any other entity; 
  
 (f)
repurchase agreements and investment agreements issued by banks with a combined capital and surplus aggregating at least $100,000,000 or by any other entity whose debt or unsecured securities are, at the time of acquisition, rated within one of the
two highest rating categories assigned by either Rating Agency, or continuously secured and collateralized by obligations referred to in paragraphs (a) through (e) above or (g) through (j) below having a market value, determined not less frequently
than daily, at least equal at the time of each such determination to the principal balance collectible pursuant thereto plus accrued interest thereon; 
  
 (g) interest-bearing notes or investment agreements secured by a letter of credit issued by banks with a combined capital and surplus aggregating at least
$100,000,000, or by a surety issued by an insurance company, in each case the unsecured securities or deposits of either of which are rated at the time of acquisition within one of the two highest rating categories assigned by either Rating Agency;

  
 (h) securities with a remaining term of maturity of, or which
are payable at par upon demand by the holder thereof within 90 days or less, the interest on which is exempt from federal income taxation, rated by either Rating Agency in its highest note or commercial paper rating category; 

 (i) any other securities or obligations selected by the Borrower and approved in writing by the Bank;

  
 (j) shares redeemable on demand at par of, or an investment
agreement with, an Investment Company (as defined in the Investment Company Act of 1940, as amended) which invests in, or collateralizes such investment agreement with, obligations of the type described as Permitted Investments in any other
paragraph of this definition; and 
  
 (k) tax-free money market
funds which invest principally in obligations rated in the highest rating category whether rated as short-term or long-term obligations by a Rating Agency. 
  
 Prime Rate sha11 mean, for any period, a fluctuating interest rate per annum as shall be in effect from time to time which rate per, annum shall at
all times be equal to the greater of (i) the rate of interest established by Bank at its principal office, from time to time, as its prime rate, whether or not publicly announced, which interest rate may or may not be the lowest rate charged by it
for commercial loans or other extensions of credit; and (ii) the Federal Funds Effective Rate in effect from time to time plus 1/2 of 1 % per annum; 
  
 Prime Rate Loan shall mean the Subject Loan when bearing interest at the rate provided in subsection 2.04(a);

  
 Rating Agency means Moody’s Investors Service or
Standard & Poor’s Corporation or the successor of either or, if both no longer exist and have no successors, then any other rating agency approved by the Bank; 
  
 Receivable means a claim for money due or to become due, whether classified as an account, instrument, chattel paper,
general intangible, incorporeal hereditament or otherwise, and any proceeds of the foregoing; 
  
 Related Writing means any note, mortgage, security agreement, other lien instrument, financial statement, audit report, notice, legal opinion, credit request, officer’s certificate or other writing of any
kind which is delivered to Bank and which is relevant in any manner to this Agreement or any Related Writing and includes, without limitation, the Subject Note and the other writings referred to in sections 3A and 4A; 
  
 Regulation D shall mean Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor to all or a portion thereof establishing reserve requirements; 
  
 Reportable Event has the meaning ascribed thereto by ERISA; 

 Seaworthiness Directives and Bulletins shall mean all regulations and requirements issued by the
U.S. Coast Guard and in effect from time to time that are applicable to any vessel owned by Borrower; 
  
 Subject Indebtedness means, collectively, the principal of and interest on the Subject Loan and all other liabilities, if any, incurred by Borrower
to Bank pursuant to this Agreement or any Related Writing; 
  
 Subject Loan means the loan obtained by Borrower pursuant to this Agreement; 
  
 Subject Note means the note executed and delivered by Borrower and being in the form and substance of Exhibit B with the blanks appropriately filled; 
  
 Subordinated, as applied to any liability of Borrower, means a
liability which at the time in question is Subordinated (by written instrument in form and substance reasonably satisfactory to Bank) in favor of the prior payment in full of Borrower’s Debt to Bank; 
  
 Subsidiary means a corporation or other business entity if shares
constituting a majority of its outstanding capital stock (or other form of ownership) or constituting a majority of the voting power in any election of directors (or shares constituting both majorities) are (or upon the exercise of any outstanding
warrants, options or other rights would be) owned directly or indirectly at the time in question by the corporation in question or another “Subsidiary” of that corporation or any combination of the foregoing; (notwithstanding the
foregoing, Laxare, Inc. shall not be considered a Subsidiary of Borrower for purposes of this Agreement); 
  
 Supplemental Schedule means the schedule incorporated into this Agreement as Exhibit A; 
  
 Total Liabilities means the aggregate (without duplication) of all
liabilities of the corporation or corporations in question and includes, without limitation, (a) any indebtedness which is secured by any mortgage, security interest or other lien on any of their property even if the full faith and credit of none of
them is pledged to the payment thereof, (b) any indebtedness for borrowed money or Funded Indebtedness of any kind if any such corporation or corporations is a Guarantor thereof and (c) any Subordinated indebtedness; PROVIDED, that there shall be
excluded any liability under a reimbursement agreement relating to a letter of credit issued to finance the importation or exportation of goods; 
  
 2002 Senior Secured Fund Notes shall mean those certain Senior Secured Notes of Guarantor in the original principal amount of $75,000,000 with a
coupon of 18% per annum, of which 13% per annum is payable in cash and 5% per annum is payable, at the option of the Guarantor, in cash or in-kind and having a maturity date of October 25, 2008, issued by Guarantor pursuant to the Note Purchase
Agreement; 
  
 the foregoing definitions shall be applicable to
the respective plurals of the foregoing defined terms. 

					
	 Address:
  
 1100 Superior Avenue
 Cleveland, Ohio 44114
 Facsimile: (216) 861-2398
	 	OGLEBAY NORTON COMPANY
	 	 	 	 
	 	By:	 	 /s/ Richard J. Kessler

	 	Printed Name:	 	Richard J. Kessler
	 	Title:	 	Vice President-Finance and Planning
	 	  
 Attest:
	 	  
 /s/ John J. Kirn, Jr.

	 	Title:	 	Assistant Secretary
		
	 Address:
  
 1900 East Ninth Street
 Attn: Metro/Ohio Division
 Cleveland, Ohio 44114-3484
 Facsimile: (216) 575-9396
	 	NATIONAL CITY BANK
	 	 	 	 
	 	By:	 	 /s/ Robert E. Little

	 	Printed Name:	 	Robert E. Little
	 	Title:	 	Vice President & Sr. Lending Officer

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