Document:

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                                                                    Exhibit 10.3

                           WAIVER AND AMENDMENT NO. 2
                           TO NOTE PURCHASE AGREEMENT

         WAIVER AND AMENDMENT NO. 2 TO NOTE PURCHASE AGREEMENT (this "Waiver and
Amendment") dated as of September 11, 2003, by and among Oglebay Norton Company,
an Ohio corporation (the "Company") and the Noteholders signatories hereto.

                                   WITNESSETH:

         WHEREAS, the Company and Noteholders are parties to the Senior Secured
Note Purchase Agreement dated as of October 25, 2002 (as amended and otherwise
modified by the Letter Waiver dated as of January 6, 2003 and the Waiver and
Amendment dated as of July 9, 2003, the "Note Purchase Agreement") pursuant to
which the Noteholders hold the Senior Notes issued by the Company;

         WHEREAS, the Company has advised the Noteholders that certain Events of
Default have occurred under the Note Purchase Agreement, as more fully described
on Schedule I hereto (the "Designated Events of Default");

         WHEREAS, subject to the terms and conditions hereof, the Noteholders
are willing to waive the Designated Events of Default;

         WHEREAS, the parties also desire to amend certain provisions of the
Note Purchase Agreement as set forth herein; and

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

1.       DEFINED TERMS

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

2.       UPDATED SCHEDULES TO NOTE PURCHASE AGREEMENT

         Schedules 3.8, 5.4, 5.5, 5.7, 5.19, 5.22, 5.25, 5.28 and 6.2, are
hereby amended by deleting the existing Schedules 3.8, 5.4, 5.5, 5.7, 5.19,
5.22, 5.25, 5.28 and 6.2, and replacing such schedules with new Schedules 3.8,
5.4, 5.5, 5.7, 5.19, 5.22, 5.25, 5.28 and 6.2, each as attached hereto as Annex
I, and such revised Schedules 3.8, 5.4, 5.5, 5.7, 5.19, 5.22, 5.25, 5.28 and 6.2
shall be incorporated into the Note Purchase Agreement as if fully written
therein. New Schedule 7.5.2(j) to the Note Purchase Agreement, as attached
hereto as Annex II, is hereby incorporated into the Note Purchase Agreement as
if fully written therein.

                                       -1-

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3.       AMENDMENTS TO THE NOTE PURCHASE AGREEMENT

         3.1. Amendments to Section 1.1. Section 1.1 of the Note Purchase
Agreement shall be amended by: (i) adding thereto the new definitions "Amended
Interest Rate", "Consolidated Pro forma EBITDA," "Initial Interest Rate," and
"Permitted Asset Dispositions"; and (ii) amending the definition of "Interest
Rate" to read as follows:

         "Amended Interest Rate" shall have the meaning assigned to it in
Section 2.1.

         "Consolidated Pro forma EBITDA" shall mean the sum of (a) Consolidated
EBITDA, plus (b )(i) without duplication, the EBITDA of Persons acquired by the
Company and its Subsidiaries during the most recently completed four fiscal
quarters to the extent that the EBITDA of such Persons is confirmed by audited
financial or other information satisfactory to the Noteholders, minus (ii)
EBITDA of Persons disposed of by the Company and its Subsidiaries during the
most recently completed four fiscal quarters, plus (c) the amount by which
professional fees incurred by the Company through September 11, 2003 exceeded
the Company's budget set forth in Schedule IA to Amendment No. 8 to the
Syndicated Credit Agreement, dated as of September 11, 2003, plus (d) the amount
of professional fees and expenses incurred by the Company after September 11,
2003 for professionals listed on Schedule IB to such Amendment No. 8.

         "Initial Interest Rate" shall have the meaning assigned to it in
Section 2.1.

         "Interest Rate" shall mean either the Initial Interest Rate or the
Amended Interest Rate, as applicable pursuant to Section 2.1.

         "Permitted Asset Dispositions" shall have the meaning assigned to it in
Section 7.5.2(j).

         3.2.  Amendment to Section 2.1. Section 2.1 of the Note Purchase
Agreement shall be deleted and replaced in its entirety as follows:

               2.1 The Senior Notes. The Company has authorized the issuance of
         its Senior Secured Notes due October 25, 2008 in the aggregate original
         principal amount of $75,000,000 in the form set forth as Exhibit 2.1
         attached hereto (referred to herein individually as a "Senior Note" and
         collectively as the "Senior Notes", which terms shall also include any
         notes delivered in exchange therefor or replacement thereof).
         Commencing on the date of issuance through and including September 10,
         2003, the Senior Notes will accrue interest on the unpaid principal
         amount thereof at an interest rate of 18% per annum (the "Initial
         Interest Rate"), consisting of 13% in cash interest and 5% either, at
         the Company's option, in cash interest or to be added automatically to
         the unpaid principal amount of the Senior Notes ("PIK Interest") on
         each March 31, June 30, September 30, and December 31 (each, an
         "Interest Payment Date"). Commencing on September 11, 2003, the Senior
         Notes will accrue interest on the unpaid principal amount thereof at an
         interest rate of 19% per annum (the "Amended Interest Rate"),
         consisting of 13% in cash interest and 6% either, at the Company's
         option, in cash interest or PIK

                                       -2-

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         Interest to be added automatically to the unpaid principal amount of
         the Senior Notes on each Interest Payment Date. Interest on the Senior
         Notes shall be computed based on a 360-day year of twelve 30-day
         months, and all PIK Interest on the Senior Notes will be compounded
         quarterly. Cash interest on the Senior Notes shall be payable quarterly
         in arrears on each Interest Payment Date commencing on December 31,
         2002 by wire transfer of immediately available funds to one or more
         accounts designated by the Noteholders. On each Interest Payment Date,
         the Company shall deliver a copy of Schedule I to the Senior Notes to
         the Noteholders, which shall detail the outstanding principal balance
         of the Senior Notes as of such date, including all PIK Interest
         previously added to the principal amount thereof.

         3.3. Amendment to Article VI. Article VI of the Note Purchase Agreement
shall be amended by adding new Section 6.18 thereto to read as follows:

              6.18   Engagement of Financial Advisers.

              (a)  The Company agrees to the engagement by the Noteholders of a
financial consultant to review and monitor the condition of the Company and its
Subsidiaries. The Company agrees to pay any and all reasonable fees and expenses
of, and/or to reimburse the Noteholders for any and all fees and expenses
incurred by the Noteholders in connection with the services provided by, such
financial consultant retained by the Noteholders, subject to an aggregate cap of
$500,000. The Company will, and will cause each of its Subsidiaries to,
cooperate fully with such financial consultant in providing information and
access to personnel.

              (b)  In addition to the financial consultant retained by the
Noteholders as set forth in the preceding paragraph (a), the Company shall
retain on or before September 30, 2003 a financial consultant on its own behalf
to analyze and explore re-structuring alternatives, which financial consultant
shall be reasonably satisfactory to the Noteholders. The Company shall be
responsible for the payment of all fees and expenses of such financial
consultant retained by the Company. The Company shall not change such financial
consultant retained by it without the prior written consent of the Noteholders,
which consent shall not be unreasonably withheld. Subject to reasonable
confidentiality restrictions imposed by the Board of the Company, the Company
hereby authorizes the Noteholders to have direct access to and contact with such
financial consultant retained by the Company with respect to all matters
pertaining to the Company and its Subsidiaries and will direct such financial
consultant to cooperate with the Noteholders and to provide direct access and
information to the Noteholders. The Board of the Company agrees that the
confidentiality provisions in Section 11.21 hereof shall be deemed reasonable.
Any confidential information obtained by the Noteholders pursuant to this
Section 6.18(b) shall be subject to the requirements of Section 11.21 hereof.

         3.4. Amendment to Section 6.4(f)(ii). Clause (ii) of paragraph (f) of
Section 6.4 of the Note Purchase Agreement shall be deleted and replaced in its
entirety to read as follows:

         ...  (ii) all financial information, forecasts, budgets, and reports
         provided to the Agent and/or the Banks under the Syndicated Facility
         Documents and the Vessel Financing Documents;

                                       -3-

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         3.5. Amendment to Section 6.4(g). Paragraph (g) of Section 6.4 of the
Note Purchase Agreement shall be redesignated as paragraph (h), and a new
paragraph (g) shall be added to Section 6.4 immediately before such paragraph
(h), to read as follows:

         (g)  promptly, and in any event no later than the date each of the
         following is provided to the Agent and/or the Banks under the
         Syndicated Facility Documents and the Vessel Financing Documents in
         connection with any proposed sale of any assets of the Company and its
         Subsidiaries (including without limitation all Permitted Asset
         Dispositions): (i) each final offering memorandum generated with
         respect thereto; (ii) all preliminary indications of interest received
         with respect thereto; (iii) copies of all management presentations in
         connection therewith; (d) draft and final term sheets discussed or
         negotiated with prospective buyers, (iv) draft and execution copies of
         all purchase documentation; and (v) copies of all applicable financing
         commitments; provided, however, that the Company shall not be required
         to deliver any of the foregoing to any Noteholder who has not executed
         and delivered to the Company a confidentiality agreement in the form of
         Exhibit 6.14.

         3.6. Amendment to Section 7.1(a) Paragraph (a) of Section 7.1 of the
Note Purchase Agreement shall be deleted and replaced in its entirety to read as
follows:

              (a)  Syndicated Debt consisting of (i) Senior Secured Indebtedness
         (as such term is defined in the Intercreditor Agreement) under the
         Syndicated Facility Documents, (ii) solely to the extent permitted
         under Amendment No. 8 to the Syndicated Credit Agreement and under
         Amendment No. 8 to the Syndicated Loan Agreement, each dated as of
         September 11, 2003, Indebtedness under the Syndicated Facility
         Documents other than Senior Secured Indebtedness, (iii) Indebtedness
         under the Vessel Financing Documents that does not exceed $16,000,000
         (and a guaranty by ON Marine Management Company L.L.C. of Indebtedness
         under the Vessel Financing Documents on the same terms as the guarantee
         thereof in effect on the date hereof, so long as the time of the
         issuance of such guarantee there is no Event of Default hereunder or
         resulting therefrom) and (iv) the Indebtedness existing on the date
         hereof identified on Schedule 7.1(a);

         3.7. Amendment to Section 7.5.2. Section 7.5.2 of the Note Purchase
Agreement shall be amended by adding new paragraph (j) thereto as follows:

              (j)  Asset Sales of Property of the Company and its Subsidiaries
         (other than any such Asset Sales permitted under other subsections of
         this Section 7.5.2) described on Schedule 7.5.2(j) hereto (such Asset
         Sales, the "Permitted Asset Dispositions").

         3.8. Amendment to Section 7.10. Section 7.10 shall be deleted and
replaced in its entirety to read as follows:

              7.10 Capital Expenditures. The Company and its Subsidiaries will
         not make Capital Expenditures (including, without limitation, by way of
         Capitalized Leases) which, in the aggregate, as to the Company and its
         Subsidiaries, during fiscal year 2003 and 2004 exceed $23,500,000 per
         fiscal year and $27,500,000 per fiscal year ending

                                       -4-

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         thereafter (each such maximum amount, as applicable, the "Capital
         Expenditure Amount")

         3.9. Amendments to Articles VIII and VIII.B. Article VIII and VIII.B of
the Note Purchase Agreement shall be deleted and replaced in its entirety by the
following (and all references to Article VIII.B shall be deemed to be references
to Article VIII):

                ARTICLE VIII - FINANCIAL COVENANTS OF THE COMPANY

              The Company covenants and agrees that, so long as any Senior Note
         is outstanding the Company will observe the following covenants:

              8.1. Total Leverage Ratio. The Company shall not suffer or permit
         at the end of any fiscal quarter, based upon the financial statements
         most recently delivered pursuant to Section 6.4, the Total Leverage
         Ratio to exceed:

              (a)  10.50 to 1.00 as of September 30, 2003;
              (b)  10.25 to 1.00 as of December 31, 2003;
              (c)  10.40 to 1.00 as of March 31, 2004;
              (d)  9.90 to 1.00 as of June 30, 2004;
              (e)  9.10 to 1.00 as of September 30, 2004;
              (f)  8.40 to 1.00 as of December 31, 2004;
              (g)  8.00 to 1.00 as of March 31, 2005;
              (h)  8.00 to 1.00 as of June 30, 2005;
              (i)  7.50 to 1.00 as of September 30, 2005;
              (j)  7.10 to 1.00 as of December 31, 2005;
              (k)  7.35 to 1.00 as of March 31, 2006;
              (l)  7.35 to 1.00 as of June 30, 2006;
              (m)  7.00 to 1.00 as of September 30, 2006;
              (n)  6.65 to 1.00 as of December 31, 2006;
              (o)  6.65 to 1.00 as of March 31, 2007;
              (p)  6.65 to 1.00 as of June 30, 2007;
              (q)  6.65 to 1.00 as of September 30, 2007; and
              (r)  6.65 to 1.00 as of December 31, 2007 and thereafter.

              8.2. Syndicated Debt Ratio. The Company shall not suffer or permit
         at the end of any fiscal quarter the ratio of Syndicated Debt to
         Consolidated Pro forma EBITDA to exceed:

              (a)  6.40 to 1.00 as of September 30, 2003;
              (b)  6.15 to 1.00 as of December 31, 2003;
              (c)  6.35 to 1.00 as of March 31, 2004;
              (d)  6.15 to 1.00 as of June 30, 2004;
              (e)  5.60 to 1.00 as of September 30, 2004;
              (f)  5.00 to 1.00 as of December 31, 2004;
              (g)  4.80 to 1.00 as of March 31, 2005;

                                       -5-

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                  (h)      4.80 to 1.00 as of June 30, 2005;
                  (i)      4.50 to 1.00 as of September 30, 2005;
                  (j)      4.10 to 1.00 as of December 31, 2005;
                  (k)      4.40 to 1.00 as of March 31, 2006;
                  (l)      4.40 to 1.00 as of June 30, 2006;
                  (m)      4.10 to 1.00 as of September 30, 2006;
                  (n)      3.75 to 1.00 as of December 31, 2006;
                  (o)      3.75 to 1.00 as of March 31, 2007;
                  (p)      3.75 to 1.00 as of June 30, 2007;
                  (q)      3.75 to 1.00 as of September 30, 2007; and
                  (r)      3.75 to 1.00 as of December 31, 2007 and thereafter.

         in each case, based upon the most recently completed four fiscal
         quarters reflected in the financial statements most recently delivered
         pursuant to Section 6.4.

                  8.3. Interest Coverage. The Company shall not suffer or permit
         at the end of any fiscal quarter the ratio of Consolidated Pro forma
         EBITDA to Consolidated Pro Forma Interest Expense (less non-cash
         amortized financing and FAS 133 costs to the extent included in
         Consolidated Pro forma Interest Expense in accordance with GAAP) to be
         less than:

                  (a)      0.92 to 1.00 as of September 30, 2003;
                  (b)      0.91 to 1.00 as of December 31, 2003;
                  (c)      0.96 to 1.00 as of March 31, 2004;
                  (d)      1.04 to 1.00 as of June 30, 2004;
                  (e)      1.12 to 1.00 as of September 30, 2004;
                  (f)      1.20 to 1.00 as of December 31, 2004;
                  (g)      1.35 to 1.00 as of March 31, 2005;
                  (h)      1.40 to 1.00 as of June 30, 2005;
                  (i)      1.40 to 1.00 as of September 30, 2005;
                  (j)      1.40 to 1.00 as of December 31, 2005;
                  (k)      1.40 to 1.00 as of March 31, 2006;
                  (l)      1.40 to 1.00 as of June 30, 2006;
                  (m)      1.40 to 1.00 as of September 30, 2006;
                  (n)      1.40 to 1.00 as of December 31, 2006;
                  (o)      1.40 to 1.00 as of March 31, 2007;
                  (p)      1.40 to 1.00 as of June 30, 2007;
                  (q)      1.40 to 1.00 as of September 30, 2007; and
                  (r)      1.40 to 1.00 as of December 31, 2007 and thereafter.

         in each case, based upon the most recently completed four fiscal
         quarters reflected in the financial statements most recently delivered
         pursuant to Section 6.4.

                  8.4. Cash-Flow Coverage. The Company shall not suffer or
         permit at the end of any fiscal quarter the ratio of Consolidated Pro
         forma Cash Flow to Consolidated Pro forma Fixed Charges (excluding from
         Pro Forma Fixed Charges for purposes of

                                       -6-

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         calculating compliance with this covenant, amounts scheduled to be
         paid in the current period with respect to the Revolving Loans and the
         Term Loans (each as defined in the Syndicated Credit Agreement)) to be
         less than:

                  (a)      0.41 to 1.00 as of September 30, 2003;
                  (b)      0.45 to 1.00 as of December 31, 2003;
                  (c)      0.46 to 1.00 as of March 31, 2004;
                  (d)      0.55 to 1.00 as of June 30, 2004;
                  (e)      0.62 to 1.00 as of September 30, 2004;
                  (f)      0.67 to 1.00 as of December 31, 2004;
                  (g)      0.80 to 1.00 as of March 31, 2005;
                  (h)      0.85 to 1.00 as of June 30, 2005;
                  (i)      0.85 to 1.00 as of September 30, 2005;
                  (j)      0.88 to 1.00 as of December 31, 2005;
                  (k)      0.88 to 1.00 as of March 31, 2006;
                  (l)      0.88 to 1.00 as of June 30, 2006;
                  (m)      0.80 to 1.00 as of September 30, 2006;
                  (n)      0.80 to 1.00 as of December 31, 2006;
                  (o)      0.85 to 1.00 as of March 31, 2007;
                  (p)      0.90 to 1.00 as of June 30, 2007;
                  (q)      1.00 to 1.00 as of September 30, 2007; and
                  (r)      1.00 to 1.00 as of December 31, 2007 and thereafter.

         in each case, based upon the most recently completed four fiscal
         quarters reflected in the financial statements most recently delivered
         pursuant to Section 6.4.

                  8.5 Net Worth. The Company shall not suffer or permit
         Consolidated Net Worth at any time, based upon the most recent fiscal
         quarter reflected in the financial statements most recently delivered
         pursuant to Section 6.4, to fall below the current minimum amount
         required, which current minimum amount required shall be:

                  (a)      $74,500,000 as of September 30, 2003;
                  (b)      $66,500,000 as of December 31, 2003;
                  (c)      $60,000,000 as of March 31, 2004;
                  (d)      $58,500,000 as of June 30, 2004;
                  (e)      $58,500,000 as of September 30, 2004;
                  (f)      $51,000,000 as of December 31, 2004;
                  (g)      $45,500,000 as of March 31, 2005;
                  (h)      $45,500,000 as of June 30, 2005;
                  (i)      $45,500,000 as of September 30, 2005;
                  (j)      $39,500,000 as of December 31, 2005;
                  (k)      $28,000,000 as of March 31, 2006;
                  (l)      $28,000,000 as of June 30, 2006;
                  (m)      $28,000,000 as of September 30, 2006;
                  (n)      $20,000,000 as of December 31, 2006;
                  (o)      $10,000,000 as of March 31, 2007;
                  (p)      $10,000,000 as of June 30, 2007;

                                       -7-

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              (q) $12,500,000 as of September 30, 2007; and
              (r) $8,500,000 as of December 31, 2007 and thereafter.

       provided, however, that (i) any non-cash impact to Consolidated Net Worth
       related to FAS 142 shall be excluded in calculating the Company's
       compliance with this covenant and (ii) any potential non-cash impact
       associated with the extinguishment of Indebtedness (as a result of
       Amendment No. 8 to the Syndicated Credit Agreement and Amendment No. 8 to
       the Syndicated Loan Agreement, each dated as of September 11, 2003, and
       Waiver and Amendment No. 2 to this Agreement, dated as of September 11,
       2003) as indicated pursuant to EITF 96.19/SFAS 140 shall likewise be
       excluded in calculating the Company's compliance with this covenant.

       3.10.  Amendment to Section 9.1(h). Section 9.1(h) of the Note Purchase
Agreement shall be deleted and replaced in its entirety to read as follows:

              (h) Any "Event of Default" (as defined therein) under the
       Subordinated Notes Indenture, provided, however, that an Event of Default
       (or an event that with the lapse of time would become an Event of
       Default) under the Subordinated Notes Indenture arising solely from the
       Company's failure to make the interest payment due under the Subordinated
       Notes Indenture on August 1, 2003 or February 1, 2004, shall not
       constitute an Event of Default under this Agreement so long as all of the
       following conditions continue to be met: (i) the Indebtedness under the
       Indenture has not been accelerated, (ii) neither the trustee under the
       Indenture nor any of the holders thereunder have taken any action to
       enforce any rights and remedies under the Indenture, and (iii) no Default
       or Event of Default under (and each as defined in) the Syndicated
       Facility Documents shall have occurred or be continuing with respect to
       the Company's failure to make such payment;

4.     REPRESENTATIONS AND WARRANTIES

       The Company hereby represents and warrants to the Noteholders as follows:

       4.1. Authorization. This Waiver and Amendment has been duly and validly
executed by an authorized executive officer of the Company and constitutes a
legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms. The execution, delivery and performance of
this Waiver and Amendment, the Note Purchase Agreement and the other Senior
Notes Documents to which the Company or any of its Subsidiaries is a party and
the transactions contemplated hereby and thereby (a) are within the authority of
such Person, (b) have been duly authorized by all necessary proceedings, (c) do
not violate, conflict with or result in any breach or contravention of any
provision of law, statute, rule or regulation to which the Company or any of its
Subsidiaries is subject or any judgment, order, writ, injunction, license or
permit applicable to the Company or any of its Subsidiaries and (d) do not
violate, conflict with, or result in the creation of any Lien on the properties
or assets of the Company or any of its Subsidiaries under, any provision of the
Organizational Documents of, or any material agreement or other material
instrument (including, without limitation, any of the Syndicated Facility
Documents, Subordinated Notes Indenture or the Subordinated Notes) binding upon,
the Company or any of its Subsidiaries.

                                       -8-

<PAGE>

       4.2. Claims and Defenses. As of the date of this Waiver and Amendment,
neither the Company nor any of its Subsidiaries has any defenses, claims,
counterclaims or setoffs with respect to the Note Purchase Agreement, the Senior
Notes Documents or any obligations thereunder or with respect to any actions of
the Noteholders, the Collateral Agent or any of their respective officers,
directors, partners, members, shareholders, employees, agents or attorneys, and
the Company hereby irrevocably and absolutely waives any such defenses, claims,
counterclaims and setoffs and releases the Noteholders, the Collateral Agent or
any of their respective officers, directors, partners, members, shareholders,
employees, agents or attorneys from the same.

       4.3. Status of Senior Notes Documents. The Note Purchase Agreement, the
Senior Notes and each of the other Senior Notes Documents, as specifically
amended by this Waiver and Amendment, are hereby in all respects ratified and
confirmed and, except to the extent of the waivers specifically provided herein,
are and shall continue to be in full force and effect and remain valid and
binding obligations of the Company enforceable against the Company in accordance
with their terms. Without limiting the generality of the foregoing, the Security
Documents and all of the collateral described therein do and shall continue to
secure the payment of all obligations of the Company and the Guarantors under
the Senior Notes Documents. As of the date of this Waiver and Amendment, the
representations and warranties of the Company set forth in the Note Purchase
Agreement as amended hereby are true and correct in all material respects with
the same force and effect as if made on and as of such date except to the extent
that any thereof expressly relate to an earlier date.

       4.4. Permitted Asset Dispositions. The consummation of any or all of the
Permitted Asset Dispositions will not constitute an Asset Sale of all or
substantially all of the assets of the Company or any division thereof for
purposes of the definition of "Mandatory Repurchase Event" as defined in Section
1.1 of the Note Purchase Agreement.

       4.5. Nonwaiver. The execution, delivery and effectiveness of this Waiver
and Amendment shall not, except as expressly provided in Section 7 hereof,
operate as, be deemed to be, or be construed to be a waiver of: (i) any right,
power or remedy of the Collateral Agent or any Noteholder under the Note
Purchase Agreement or any other Senior Notes Document, or (ii) of any term,
provision, representation, warranty or covenant contained in the Note Purchase
Agreement, the other Senior Notes Documents or any other documentation executed
in connection therewith. Further, except as provided in Section 7 hereof, none
of the provisions of this Waiver and Amendment shall constitute, be deemed to be
or construed to be: (i) a waiver of any Event of Default under the Note Purchase
Agreement as previously amended and as further amended by this Waiver and
Amendment or (ii) a revocation of any prior written waivers of any Events of
Default thereunder.

       4.6. References to Note Purchase Agreement. On and after the
effectiveness of this Waiver and Amendment, each reference in the Note Purchase
Agreement to "this Agreement", "hereunder", "hereof" or words of like import
referring to the Note Purchase Agreement, and each reference in the Senior Notes
and each of the other Senior Notes Documents and the other Transaction Documents
to "the Note Purchase Agreement", "thereunder", "thereof" or words of like
import referring to the Note Purchase Agreement, shall mean and be a reference
to the Note Purchase Agreement as amended hereby.

                                       -9-

<PAGE>

5.     GENERAL RELEASE

       To the extent not otherwise set forth herein, the Company hereby remises,
releases, acquits, satisfies and forever discharges the Noteholders, the
Collateral Agent and the Representative, their agents, employees, officers,
directors, predecessors, attorneys and all others acting on behalf of or at the
direction of the Noteholders, the Collateral Agent or the Representative, of and
from any and all manner of actions, causes of action, suit, debts, accounts,
covenants, contracts, controversies, agreements, variances, damages, judgments,
claims and demands whatsoever, in law or in equity, which any of such parties
ever had, now have or can, shall or may at any time have against the
Noteholders, the Collateral Agent or the Representative, their agents,
employees, officers, directors, attorneys and all persons acting or purporting
to act on behalf of or at the direction of the Noteholders, the Collateral Agent
or the Representative (the "Releasees") under or with respect to the Senior
Notes Documents or the transactions contemplated thereby, for, upon or by reason
of any matter, cause or thing whatsoever through the date hereof. Without
limiting the generality of the foregoing, the Company waives and affirmatively
agrees not to allege or otherwise pursue any defenses, affirmative defenses,
counterclaims, claims, causes of action, setoffs or other rights it does, shall
or may have as of the date hereof, including, but not limited to, the rights to
contest: (a) the right to exercise any right, power or remedy of the Collateral
Agent or any Noteholder under the Note Purchase Agreement or any other Senior
Notes Document; (b) any term, provision, representation, warranty or covenant
contained in this Waiver and Amendment, the Note Purchase Agreement, the other
Senior Notes Documents or any other documentation executed in connection
therewith; (c) the liens, pledges, assignments, security interests and other
collateral or security granted by the Senior Notes Documents; or (d) any conduct
of the Noteholders, the Collateral Agent or the Representative under or with
respect to the Senior Notes Documents or the transactions contemplated thereby.

6.     CONDITIONS PRECEDENT TO EFFECTIVENESS

       This Waiver and Amendment is subject to the provisions of Sections 11.2
and 11.4 of the Note Purchase Agreement and shall become effective as of the
date first above written when, and only when each of the following conditions
precedent shall have been fulfilled:

       6.1. Waiver and Amendment. This Waiver and Amendment shall have been
executed by the Company and the holders, voting together as a single class, of
at least 50% in principal amount of all Senior Notes outstanding as of the date
hereof.

       6.2. Consent of Guarantors. The consent attached hereto shall have been
executed by each Guarantor.

       6.3. Waiver and Amendment under Syndicated Facility Documents. The
Noteholders shall have received written evidence, in form and substance
satisfactory to them, that (a) the Company has obtained a waiver of any Events
of Default (to the extent such exist) under the Syndicated Credit Agreement, the
Syndicated Loan Agreement and the Vessel Financing Documents and (b) the
Syndicated Credit Agreement, the Syndicated Loan Agreement and such other
Syndicated Facility Documents as may require amendment in connection with this
Waiver and Amendment and the transactions contemplated hereby have been so
amended.

                                      -10-

<PAGE>

       6.4. Investment Bank Engagement Letters. The Company shall have furnished
to the Noteholders copies of the Harris Williams and Cobblestone investment bank
engagement letters with the Company covering the sale of assets (including
without limitation the Permitted Asset Dispositions).

       6.5. Opinions. The Noteholders shall have received (a) appropriate and
customary opinions relating to this Waiver and Amendment and the transactions
contemplated hereby and such other matters as are deemed appropriate by
Noteholders and their counsel and (b) copies of all opinions delivered to the
Banks in connection with the waivers and amendments referred to in Section 6.3
hereof, in each case in form and substance satisfactory to the Noteholders.

       6.6. Waiver and Amendment Fee; Legal Expenses. The Noteholders shall have
received a one time Waiver and Amendment Fee in an amount equal to $775,915.14
for the ratable benefit of each Noteholder signatory hereto based on the
proportion that the amount of Senior Notes held by each such Noteholder (which
amount is accurately set forth next to each Noteholder's name on the signature
pages hereof) bears to the total amount of Senior Notes held by all Noteholders
signatories hereto. In addition, the Noteholders shall have received payment of
all currently outstanding fees and expenses of counsel to the Noteholders
incurred in connection with the matters contemplated hereby or undertaken to
date in connection with the Note Purchase Agreement and the Senior Notes
Documents.

       6.7. Other Deliveries. The Noteholders shall have received from the
Company such other agreements as the Noteholders may request in connection with
this Waiver and Amendment, in such form and substance acceptable to the
Noteholders, executed and delivered by a duly authorized officer of Company.

       The effectiveness of this Waiver and Amendment is further conditioned
upon the accuracy in all material respects of the factual matters, taken as a
whole, described herein.

7.     AGREEMENT TO WAIVE

       Notwithstanding the occurrence or continuation of the Designated Events
of Default, subject to satisfaction of the conditions precedent set forth in
Section 6 hereof, the Noteholders hereby waive the Designated Events of Default
from and after the date of occurrence thereof, and the Noteholders and the
Collateral Agent waive any right to exercise the rights and remedies available
under the Note Purchase Agreement and the other Senior Notes Documents as a
result of the occurrence of such Designated Events of Default. Nothing contained
in this Waiver and Amendment shall prejudice any rights or remedies the
Noteholders or the Collateral Agent may have, or the right of the Noteholders or
the Collateral Agent to exercise any such rights and remedies, at any time with
respect to Events of Default (whether now existing or hereafter occurring) other
than the Designated Events of Default. The Company acknowledges and agrees that
the foregoing waiver shall not affect the continued legality, validity and
binding effect of the Note Purchase Agreement and the other Senior Notes
Documents (as amended or otherwise modified hereby), and, except with respect to
such waiver, the Note Purchase Agreement continues to be fully enforceable.
Nothing contained in this Waiver and Amendment shall be construed as a waiver
under or a modification to the terms of the Intercreditor Agreement,

                                      -11-

<PAGE>

including without limitation with respect to the maximum amount of accrued
interest that constitutes "Senior Secured Indebtedness" (as defined in the
Intercreditor Agreement).

8.     MISCELLANEOUS

       8.1. Governing Law. This Waiver and Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York.

       8.2. Severability. The invalidity or unenforceability of any provision
hereof shall in no way affect the validity or enforceability of any other
provision.

       8.3. Counterparts. This Waiver and Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of a signature page to this Waiver and Amendment by
telecopier shall be effective as delivery of a manually executed counterpart of
this Waiver and Amendment.

                            [signature pages follow]

                                      -12-

<PAGE>

       IN WITNESS WHEREOF, the parties hereto have executed this Waiver and
Amendment as of the date first above written.

COMPANY:                               OGLEBAY NORTON COMPANY

                                       By:______________________________________
                                           Name:
                                           Title:

<PAGE>

NOTEHOLDERS:                           THE 1818 MEZZANINE FUND II, L.P.

                                       By: Brown Brothers Harriman & Co.,
                                           General Partner

                                       By:______________________________________
                                           Name:  Robert R. Gould
                                           Title: Partner

                                       Amount of Senior Notes: $25,000,000

<PAGE>

                                       SANKATY HIGH YIELD PARTNERS II, L.P.

                                       By:______________________________________
                                           Name:  Stuart Davies
                                           Title: Senior Vice President

                                       Amount of Senior Notes: $3,000,000

<PAGE>

                                       SANKATY HIGH YIELD PARTNERS III, L.P.

                                       By:______________________________________
                                           Name:  Stuart Davies
                                           Title: Senior Vice President

                                       Amount of Senior Notes: $3,000,000

<PAGE>

                                       BRANT POINT CBO 1999-1, LTD.

                                       By: SANKATY ADVISORS, LLC, as
                                           Collateral Manager

                                       By:______________________________________
                                           Name:  Stuart Davies
                                           Title: Senior Vice President

                                       Amount of Senior Notes: $500,000

<PAGE>

                                       GREAT POINT CBO 1998-1 LTD.

                                       By: SANKATY ADVISORS, LLC, as Collateral
                                           Manager

                                       By:______________________________________
                                           Name:  Stuart Davies
                                           Title: Senior Vice President

                                       Amount of Senior Notes: $1,000,000

<PAGE>

                                       GREAT POINT CLO 1999-1 LTD.

                                       By: SANKATY ADVISORS, LLC, as
                                           Collateral Manager

                                       By:______________________________________
                                           Name:  Stuart Davies
                                           Title: Senior Vice President

                                       Amount of Senior Notes: $250,000

<PAGE>

                                       RACE POINT CLO, LIMITED

                                       By: SANKATY ADVISORS, LLC, as
                                           Collateral Manager

                                       By:______________________________________
                                           Name:  Stuart Davies
                                           Title: Senior Vice President

                                       Amount of Senior Notes: $250,000

<PAGE>

                                       SANKATY CREDIT OPPORTUNITIES, L.P.

                                       By:______________________________________
                                           Name:  Stuart Davies
                                           Title: Senior Vice President

                                       Amount of Senior Notes: $6,000,000

<PAGE>

                                       TEACHERS INSURANCE AND ANNUITY
                                       ASSOCIATION OF AMERICA

                                       By:______________________________________
                                           Name:
                                           Title:

                                       Amount of Senior Notes: $17,000,000

<PAGE>

                                       COHANZICK HIGH YIELD PARTNERS, LP

                                       By:

                                       By:______________________________________
                                           Name:
                                           Title:

                                       Amount of Senior Notes: $600,000

<PAGE>

                                       COHANZICK CREDIT OPPORTUNITIES FUND,
                                       LTD.

                                       By:

                                       By:______________________________________
                                           Name:
                                           Title:

                                       Amount of Senior Notes: $400,000

<PAGE>

                                       GABRIEL CAPITAL GROUP

                                       By:

                                       By:______________________________________
                                           Name:
                                           Title:

                                       Amount of Senior Notes: $1,000,000

<PAGE>

                                       RESTORATION HOLDINGS, LTD.

                                       By:

                                       By:______________________________________
                                           Name:
                                           Title:

                                       Amount of Senior Notes: $2,000,000

<PAGE>

                                       LEGACY AGGRESSIVE HIGH YIELD FUND

                                       By:

                                       By:______________________________________
                                           Name:
                                           Title:

                                       Amount of Senior Notes: $100,000

<PAGE>

                                       THE ONE GROUP HIGH YIELD BOND FUND

                                       By:

                                       By:______________________________________
                                           Name:
                                           Title:

                                       Amount of Senior Notes: $2,150,000

<PAGE>

                                       PACHOLDER HIGH YIELD FUND, INC.

                                       By:

                                       By:______________________________________
                                            Name:
                                            Title:

                                       Amount of Senior Notes: $500,000

<PAGE>

                                       DB DISTRESSED OPPORTUNITIES FUND, LTD.

                                       By:

                                       By:______________________________________
                                            Name:
                                            Title:

                                       Amount of Senior Notes: $2,500,000

<PAGE>

                                       SPRUGOS INVESTMENTS IV, LLC

                                       By:

                                       By:______________________________________
                                            Name:
                                            Title:

                                       Amount of Senior Notes: $2,500,000

<PAGE>

                                       MW POST PORTFOLIO FUND, LTD.

                                       By:

                                       By:______________________________________
                                           Name:
                                           Title:

                                       Amount of Senior Notes: $2,000,000

<PAGE>

                                       PACHOLDER 2000 OPPORTUNITY FUND LP

                                       By:

                                       By:______________________________________
                                           Name:
                                           Title:

                                       Amount of Senior Notes: $250,000

<PAGE>

                                       DELAWARE STREET CAPITAL FUND, LTD

                                       By:

                                       By:______________________________________
                                            Name:
                                            Title:

                                       Amount of Senior Notes: $5,000,000

<PAGE>

                                     CONSENT

                                                  Dated as of September 11, 2003

         Each of the undersigned as a Guarantor under the Note Purchase
Agreement referred to in the foregoing Waiver and Amendment and a grantor,
pledgor and mortgagor, as the case may be, under the Security Documents executed
and delivered pursuant to the Note Purchase Agreement, in each case, in favor of
the Collateral Agent, for its benefit and the benefit of the Noteholders parties
to the Note Purchase Agreement referred to in the foregoing Waiver and
Amendment, hereby consents and agrees to such Waiver and Amendment and hereby
confirms and agrees that (a) the Note Purchase Agreement, as amended and
otherwise modified by such Waiver and Amendment, and each Security Document to
which such Guarantor is party is, and shall continue to be, in full force and
effect and is hereby ratified and confirmed in all respects, and (b) all of the
collateral described in such Security Documents do, and shall continue to,
secure the payment of all of the obligations provided therein.

                            [signature pages follow]

                                       1

<PAGE>

                                       ONCO INVESTMENT COMPANY
                                       OGLEBAY NORTON MANAGEMENT COMPANY
                                       OGLEBAY NORTON INDUSTRIAL SANDS, INC.
                                       OGLEBAY NORTON TERMINALS, INC.
                                       OGLEBAY NORTON ENGINEERED MATERIALS, INC.
                                       OGLEBAY NORTON MINERALS, INC.
                                       OGLEBAY NORTON SPECIALTY MINERALS, INC.
                                       ON MARINE SERVICES COMPANY
                                       MICHIGAN LIMESTONE OPERATIONS, INC.
                                       GLOBAL STONE CORPORATION
                                       GLOBAL STONE TENN LUTTRELL COMPANY
                                       GLOBAL STONE CHEMSTONE CORPORATION
                                       GLOBAL STONE ST. CLAIR, INC.
                                       GLOBAL STONE FILLER PRODUCTS, INC.
                                       GLOBAL STONE JAMES RIVER, INC.
                                       GS PC, INC.
                                       ON COAST PETROLEUM COMPANY
                                       ONCO WVA, INC.
                                       ONTEX, INC.
                                       SAGINAW MINING COMPANY
                                       GLOBAL STONE MANAGEMENT COMPANY
                                       ERIE SAND AND GRAVEL COMPANY
                                       ERIE NAVIGATION COMPANY
                                       ERIE SAND STEAMSHIP CO.
                                       MOUNTFORT TERMINAL, LTD.
                                       SERV-ALL CONCRETE, INC.
                                       S&J TRUCKING, INC.

                                       By:______________________________________
                                            Name:
                                            Title:

                                       2

<PAGE>

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

                                       By:   ON MARINE SERVICES COMPANY, its
                                             Member

                                       By:______________________________________
                                           Name:
                                           Title:

                                       GLOBAL STONE PENROC, LP

                                       By:   GS PC, Inc.,
                                             its General Partner

                                       By:______________________________________
                                           Name:
                                           Title:

                                       TEXAS MINING, LP

                                       By:   ONTEX, Inc.,
                                             its General Partner

                                       By:______________________________________
                                           Name:
                                           Title:

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

                                       By:   OGLEBAY NORTON MARINE SERVICES
                                             COMPANY, L.L.C., its Member

                                       By:______________________________________
                                           Name:
                                           Title:

                                       3

<PAGE>

                                       GLOBAL STONE PORTAGE, LLC

                                       By:   ONCO INVESTMENT COMPANY,
                                             its Member

                                       By:______________________________________
                                           Name:
                                           Title:

                                       4Stock Purchase

 EXHIBIT 10.1 
  
 STOCK PURCHASE AGREEMENT 
  
 INTERCEPT, INC., a Georgia corporation (the “Company”), and the investors named on Exhibit A (each an
“Investor” and collectively the “Investors”) enter into this Stock Purchase Agreement (this “Agreement”) dated September 16, 2003, relating to the issuance by the Company of certain of its securities. 
  
 SECTION 1. DESCRIPTION OF TRANSACTION 
  
 1.1 Description of Securities. The Company agrees to issue to the
Investors shares of its authorized but unissued Series A Preferred Stock (the “Preferred Shares”), for an aggregate purchase price of $10,000,000, as described on Exhibit A. The Preferred Shares and any preferred shares issued as
payment-in-kind dividends on the Preferred Shares will be convertible into shares of the Company’s Common Stock, no par value per share (the “Common Stock”), as provided in the Articles of Amendment (the “Designation”) filed
with the Secretary of State of the State of Georgia substantially in the form attached hereto as Exhibit B. Any shares of Common Stock of the Company issued or issuable upon such conversion (and any securities resulting from a stock split of
or stock dividend upon such Common Stock) are referred to as “Conversion Shares.” 
  
 1.2 Closing. The closing (the “Closing”) of the sale of the Preferred Shares will take place at the offices of Nelson Mullins Riley & Scarborough, L.L.P. (“Nelson Mullins”), Atlanta,
Georgia, counsel for the Company, at 5:00 P.M., on the date of this Agreement, or such other time of day and place as agreed to by the parties (the “Closing Date”). At the Closing, the Company will deliver certificates evidencing the
Preferred Shares being acquired by the Investors upon payment of the purchase price by the Investors to the Company by wire transfer. The Company will not be obligated to sell any Preferred Shares unless the Investors purchase all the Preferred
Shares indicated on Exhibit A to be purchased at the Closing. 
  
 1.3 The Investors’ Conditions to Closing. The obligation of the Investors to purchase and pay for the Preferred Shares at the Closing is subject to satisfaction, unless waived by the Investors, of the conditions that:

  
 (i) The Company shall have duly authorized
and filed the Designation with the Secretary of State of the State of Georgia and a date-stamped copy of the Designation marked “filed” by the Secretary of State of the State of Georgia shall have been furnished to counsel for the
Investors. 
  
 (ii) The Company shall have
executed and delivered to the Investors a Registration Rights Agreement in the form attached hereto as Exhibit C (the “Rights Agreement”). 
  
 (iii) No injunction, order, investigation, claim, action or proceeding before any court or governmental body shall be pending or
threatened wherein an unfavorable judgment, decree or order would restrain, impair or prevent the execution, 
  

 1 

 
delivery or (where applicable) filings of this Agreement, the Rights Agreement or the Designation or the completion of any of the transactions contemplated
hereby and thereby, declare unlawful the transactions contemplated by this Agreement, the Rights Agreement or the Designation or cause any such transaction to be rescinded. 
  
 (iv) The Company shall have obtained in writing or made all consents, waivers, approvals, orders, permits,
licenses and authorizations of, and registrations, declarations, notices to and filings and applications with, any governmental authority or any other person required to be obtained prior to the Closing. 
  
 (v) The Company shall have delivered to the Investors:

  
 (A) a certificate of the Secretary of the
Company, dated the Closing Date, with respect to the attached copy of the By-laws of the Company, the incumbency of the officers executing this Agreement and the Rights Agreement and the Rights Agreement, and the resolutions adopted by the Board of
Directors of the Company authorizing the execution, delivery and performance of this Agreement and the Rights Agreement and the actions to be taken by the Company under this Agreement and the Rights Agreement including Form D and blue sky filings;

  
 (B) a certificate executed by the Chief
Executive Officer of the Company (signing on behalf of the Company and not in his personal capacity), dated the Closing Date, stating that the conditions set forth in Sections 1.3(iii) and 1.3(iv) have been satisfied; 
  
 (C) a certificate of the Secretary of State of the State of
Georgia, dated as of a recent date, to the effect that the Company is in existence in the State of Georgia; 
  
 (D) a certified copy of the Articles of Incorporation of the Company, and all amendments, as filed with the Secretary of State of the
State of Georgia and a date-stamped copy of the Designation marked “filed” by the Secretary of State of the State of Georgia. 
  
 (vi) Nelson Mullins shall have delivered to the Investors a legal opinion dated as of the Closing Date and substantially in the form attached hereto as
Exhibit D. 
  
 1.4 The Company’s Conditions to
Closing. The obligation of the Company to issue and sell the Preferred Shares at the Closing is subject to satisfaction, unless waived by the Company, of the conditions that no injunction, order, investigation, claim, action or proceeding before
any court or governmental body shall be pending or threatened wherein an unfavorable judgment, decree or order would restrain, impair or prevent the execution, delivery or (where applicable) filing of this Agreement, the Rights Agreement or the
Designation or the completion of any of the transactions contemplated hereby and thereby, declare unlawful the transactions contemplated by this Agreement or the Designation or cause any such transaction to be rescinded. 
  

 2 

 SECTION 2. REPRESENTATIONS OF THE COMPANY 
  
 As part of the basis of this Agreement, the Company represents to the Investors that: 
  
 2.1 Public Status. The Company is a publicly traded corporation whose
Common Stock is traded on the Nasdaq National Market under the symbol ICPT. The Company has received no notice from Nasdaq that it is in default under, and, to the Company’s best knowledge, it is not in default in respect to, any of
Nasdaq’s listing requirements. 
  
 2.2 Organization and
Authority. 
  
 (a) The Company is a corporation duly
organized and validly existing under the laws of the State of Georgia. 
  
 (b) The Company has the corporate power and authority to execute and deliver this Agreement and the Rights Agreement, and to execute and file the Designation, to perform its obligations hereunder and thereunder, to own or lease its
properties and assets, and to carry on and conduct its business as it is now being conducted. 
  
 (c) The Company has duly authorized the execution and delivery of this Agreement and the Rights Agreement, and the execution and filing of the Designation, and all performance by the Company hereunder and thereunder,
including issuance of the Preferred Shares and the Conversion Shares in accordance therewith, and has duly executed and delivered this Agreement and the Rights Agreement, and has duly executed and filed the Designation. 
  
 (d) The execution and delivery by the Company of this Agreement and the
Rights Agreement, the execution and filing of the Designation, and all performance of the Company’s obligations hereunder and thereunder, with the giving of notice or the passage of time, or both, will not result in any: 
  
 (i) violation of the Company’s Articles of
Incorporation or bylaws; 
  
 (ii) violation of
any judgment, order, ruling, or award to which the Company or any of its properties is subject; 
  
 (iii) breach of or default under any material written agreements to which the Company or any of its properties is subject; or 

 
 (iv) requirement for the consent or approval of any
governmental authority or any party to any such material written agreement, other than consents or approvals which have been obtained or will be obtained on a timely basis. 
  
 (e) This Agreement and the Rights Agreement constitute the valid, legal, binding and enforceable agreements of the Company.

  

 3 

 2.3 Capitalization 
  
 (a) The authorized capital of the Company consists of 50,000,000 shares of Common Stock, of which 20,181,168 shares are
issued and outstanding as of September 15, 2003, and 1,000,000 shares of Preferred Shares, none of which have been issued or will be issued and outstanding on the Closing Date of this Agreement other than the Preferred Shares as indicated on
Exhibit A. The rights, preferences and privileges of the Preferred Shares as set forth in the Designation will be enforceable against the Company as described in the Georgia Business Corporation Code (“GBCC”), including without
limitation Section 14-2-1001 of the GBCC. 
  
 (b) Upon issuance,
sale and delivery for the consideration stated in this Agreement, the Preferred Shares will be duly and validly issued, fully paid and nonassessable, and will be free and clear of all liens, claims, charges, security interests, pledges or other
similar encumbrances (collectively, “Liens”) created by or through the Company, other than voting and transfer restrictions expressly created by the terms of this Agreement, the Company’s Articles of Incorporation, as amended by the
Designation, or the Rights Agreement. 
  
 (c) The Conversion
Shares, upon issuance and delivery in accordance with the terms of the Company’s Articles of Incorporation, as amended by the Designation, will be duly and validly issued, fully paid, and nonassessable, and will be validly issued, fully paid
and nonassessable and will be free and clear of all Liens created by or through the Company, other than voting and transfer restrictions expressly created by the terms of this Agreement, the Company’s Articles of Incorporation, as amended by
the Designation, or the Rights Agreement. 
  
 (d) The
Company’s Board of Directors has duly authorized and adopted a resolution to reserve a number of shares of Common Stock estimated to be sufficient for the conversion of all Preferred Shares (assuming (i) a conversion price of no less than $14
per share, and (ii) conversion on the 5th anniversary of issuance of the Preferred Shares). 
  
 2.4 Historical Regulatory Filings. No final registration statement,
prospectus, report, proxy statement or other document filed by the Company with the Securities and Exchange Commission (“SEC”) since April 1, 2002 pursuant to the Securities Act of 1933, as amended (the “Securities Act”) or the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the time of filing, contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the
statements therein not misleading as of the date of filing. The Company has filed all documents required to be filed with the SEC on a timely basis. There have been no material adverse changes to the business (financial or otherwise) or properties
of the Company subsequent to the date of filing of the Company’s quarterly report for the second quarter of 2003. 
  
 2.5 Regulatory Filings for Preferred Shares. Neither the Company, nor any of its affiliates, nor, to its knowledge, any person or entity acting on
its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the Preferred Shares or the Conversion Shares under the
Securities Act or for the offering of the same to be integrated with any other offering of securities. As used in this Agreement, “affiliate” has the meaning assigned in Rule 405 adopted under the Securities Act. No consent, approval or
filing with any regulatory agency 
  

 4 

 is required to be obtained or made by the Company in connection with the transactions contemplated by this Agreement,
other than those which the Company has obtained or made, except for any filing of Form D or any applicable state blue sky filing that may be made by the Company after the Closing. 
  
 2.6 The Company reasonably believes that: 
  
 (a) The Company’s contemplated credit agreement with the Bank of America will be implemented on the timetable, and
substantially on the terms, heretofore disclosed to the Investors; and 
  
 (b) No event has occurred under the Master Services Agreement dated January 21, 2003 between the Company and Sovereign Bank that would cause a material adverse effect on the Company. 
  
 2.7 Brokers. No broker or finder has acted on behalf of the Company in
connection with this Agreement, and the Company has not made any agreement to pay any agent, finder, broker or any other representative any fee or commission in the nature of a finder’s or originator’s fee arising out of or in connection
with the subject matter of this Agreement. 
  
 2.8 Other
Information. No representation made by the Company in this Agreement contains any untrue statement or omits to state a material fact necessary to make the statements contained herein not misleading. 
  

	SECTION	 	3. REPRESENTATIONS OF THE INVESTORS 

  
 As part of the basis of this Agreement, each of the Investors hereby represents that: 
  
 3.1 Authorization. This Agreement and the Rights Agreement have been duly authorized by all necessary action on the
part of such Investor, have been duly executed and delivered by the Investor, and constitute the valid, legal, binding and enforceable agreements of such Investor. 
  
 3.2 Investment Purpose. Such Investor is acquiring the Preferred Shares for its own account, for investment, and not
with a view to any “distribution” within the meaning of the Securities Act. Such Investor has no present intention to make any transfer of the Preferred Shares. 
  
 3.3 Own Account. Such Investor is acting on its own behalf in connection with the investigation and examination of
the Company and its decision to enter into this Agreement. 
  
 3.4
Securities Law Legends. Each instrument representing the Preferred Shares or the Conversion Shares may be endorsed with the following or similar legends: 
  
 (a) The securities evidenced by this certificate have not been registered under the Securities Act of 1933,
as amended, and may not be sold, transferred, assigned or hypothecated unless there is an effective registration statement under such act covering such securities, [the sale is made in accordance 
  

 5 

 with Rule 144 under such Act,] or the Company receives an opinion of counsel for the holder of these
securities reasonably satisfactory to the Company, stating that such sale, transfer, assignment or hypothecation is exempt from the registration and prospectus delivery requirements of such act. (The bracketed language, regarding Rule 144, is not
and is not expected to become applicable to the Preferred Shares and will not appear in the legend on any instrument representing Preferred Shares.) 
  
 (b) Any other legend required by Georgia or other state securities laws. 
  
 The Company need not register a transfer of legended securities, and may also instruct its transfer agent not to register the transfer of
such securities, unless one of the conditions specified in each of the foregoing legends is satisfied. 
  
 3.5 Removal of Securities Law Legends and Transfer Restrictions. Any legend endorsed on an instrument pursuant to Section 3.4 hereof and the stop
transfer instructions with respect to such securities shall be removed, and the Company shall issue an instrument without such legend to the holder of such securities if such securities are registered under the Securities Act and a prospectus
meeting the requirements of Section 10 of the Securities Act is available or if such holder provides the Company with an opinion of counsel for such holder of the securities, reasonably satisfactory to the Company, to the effect that a public sale,
transfer or assignment of such securities may be made without registration. 
  
 3.6 Other Legend. Each instrument representing the Preferred Shares will also be endorsed with the following legend: 
  
 The securities evidenced by this certificate (and all transfers thereof) are subject to certain restrictions on transfer contained in Section 4.5 of the
Stock Purchase Agreement dated September 16, 2003 among the Company and the Investors listed on Exhibit A thereto, a copy of which is on file at the office of the Company. 
  
 3.7 Status of Investors. Such Investor is knowledgeable and experienced in making venture capital investments, and is
able to bear the economic risk of loss of its investment in the Company. Such Investor is an “accredited investor,” as that term is defined in Regulation D under the Securities Act by virtue of meeting the criteria of Rule 501(a)(3). Such
Investor’s state of incorporation or organization, as applicable, and principal place of business are listed on Exhibit A, and such Investor has not been organized for purposes of investing in the Company. 
  
 3.8 Brokers. No broker or finder has acted on behalf of such Investor
in connection with this Agreement, and such Investor has not made any agreement to pay any agent, finder, broker or any other representative any fee or commission in the nature of a finder’s or originator’s fee arising out of or in
connection with the subject matter of this Agreement. 
  

 6 

 SECTION 4. COVENANTS OF THE PARTIES 
  
 4.1 Use of Proceeds. The Company will use the proceeds of the sale of the Preferred Shares for repayment of debt,
general working capital and capital expenses. 
  
 4.2 Board
Membership. The board of directors of the Company will appoint Mr. Robert Finzi to serve on the Board as a Class III director at its next scheduled board meeting on October 29, 2003. Additionally, the Company’s proxy materials for the next
meeting of shareholders at which directors are to be elected will include Mr. Robert Finzi as one of management’s nominees for election as a Class III director and recommend that the Company’s shareholders vote in favor of Mr. Finzi’s
election. The next such meeting is expected to be the 2004 annual meeting of shareholders. The Company shall pay all ordinary and necessary travel and other expenses which Mr. Finzi reasonably incurs in attending meetings and otherwise carrying out
his duties as a director. In addition, the Investors collectively may designate one observer to attend the meetings of the board of directors, provided such observer must recuse himself when privileged matters are discussed. The Investors shall bear
all expenses of such observer. 
  
 4.3 Reservation of Common
Stock. The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the shares of Preferred Shares, such number of its shares of Common
Stock as shall from time to time be sufficient to effect the conversion of all outstanding Preferred Shares. If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then
outstanding Preferred Shares, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such
purpose. 
  
 4.4 Right of First Refusal on Issuance of New
Securities. 
  
 4.4.1 Grant of Right. The Company
hereby grants to each Investor the right of first refusal to purchase its Pro Rata Share (as defined below) of the New Securities (as defined in Section 4.4.2) which the Company may, from time to time, propose to sell and issue for cash. A “Pro
Rata Share,” for purpose of this right of first refusal, is the ratio that (i) the sum of the total number of shares of Common Stock which are then held by or issuable to such Investor (including those which such Investor has the right to
obtain pursuant to conversion of Preferred Shares) bears to (ii) the sum of the total number of shares of Common Stock then outstanding and which is issuable pursuant to exercise or conversion of any then outstanding options, warrants, rights or
convertible securities. 
  
 4.4.2 New Securities. “New
Securities” shall mean any equity securities of any class of the Company (or any securities that are convertible into or exercisable or exchangeable for equity securities) to be sold in a transaction which does not involve (i) a public
offering, (ii) a dividend reimbursement plan, (iii) an employee benefit plan, stock purchase plan, or stock option plan or (iv) securities issued pursuant to the acquisition of another business entity by merger, share exchange, purchase of all or
substantially all of its assets or other reorganization. 
  

 7 

 4.4.3 Notice. In the event the Company proposes to undertake a sale of New Securities, it shall
give each Investor written notice of its intention, describing the amount and type of New Securities, and the price and terms upon which the Company proposes to issue the same. Such Investor shall have thirty (30) days from the date of receipt of
any such notice to agree to purchase up to its Pro Rata Share of such New Securities for the price and upon the terms specified in the notice by giving written notice to the Company and stating therein the quantity of the New Securities to be
purchased. 
  
 4.4.4 Eligible Sales to Third Parties. After
giving the notice and opportunity for the Investors to participate as required under Section 4.4.3 above, the Company shall have one hundred twenty (120) days thereafter to issue and sell the New Securities not elected to be purchased by such
Investor at the price and upon the terms no more favorable to the purchasers of such securities than specified in the Company’s notice under Section 4.4.3. In the event the Company has not sold such New Securities within said one hundred twenty
(120) day period, the Company shall not thereafter issue or sell any New Securities without first offering such securities in the manner provided above. 
  
 4.5 The Company’s Right of First Refusal. 
  
 4.5.1 Prohibition on Transfer. Unless otherwise consented to in writing by the Company, each Investor shall refrain from making any transfer of the
Preferred Shares unless such transfer is to a Permitted Transferee or such Investor complies with the provisions of Section 4.5.2. Any transfer made in contravention of this prohibition shall be void. “Transfer”, whether used as a noun or
a verb, shall mean any sale, assignment, pledge, encumbrance or other disposition with or without consideration. “Permitted Transferee” shall mean (i) any affiliate of such Investor or (ii) any partner or member of such Investor, in either
case who is an accredited investor and to whom a transfer may be made in compliance with applicable securities law and other regulatory requirements. 
  
 4.5.2 Right of First Refusal. 
  
 (a) Prior to any transfer of the Preferred Shares by any Investor, such Investor (the “Transferor”) shall provide the Company with a right of
first refusal with respect to such transfer. 
  
 (b) To give
effect to the Company’s right of first refusal, the Transferor shall notify the Company of the Transferor’s intent to transfer the Preferred Shares. Such notice shall be accompanied by a copy of the offer of the proposed transfer (if the
offer is in writing), and shall set forth all pertinent information about the proposed transfer, including the number of Preferred Shares proposed to be transferred, the name, address, and accredited investor status of the proposed transferee, and
the terms and conditions of the proposed transfer. The Transferor shall also obtain and provide such further information concerning the proposed transfer or proposed transferee as the Company may reasonably request. 
  
 (c) Upon receipt of the Transferor’s notice of the proposed transfer,
the Company may elect to purchase all, but not less than all, of the shares of Preferred Shares proposed to be transferred. 
  

 8 

 (d) The purchase price for the shares of Preferred Shares proposed to be transferred, and the other
terms of such transfer, shall be the payment amount proposed to be paid by the transferee, and the other terms, as set forth in the notice to the Company. 
  
 (e) The Company may exercise its right of first refusal by notice to the Transferor at any time within thirty (30) days following receipt of the notice
delivered to the Company pursuant to Section 4.5.2(b). The expiration of such thirty (30) day period without notice of exercise of such right of first refusal, or a written notice of non-exercise by the Company during such period, shall constitute
the Company’s election not to exercise such right of first refusal. 
  
 (f) If the Company elects not to exercise its right of first refusal, the Transferor may, subject to compliance with applicable securities laws and other regulatory requirements, transfer the Preferred Shares proposed
to be transferred in accordance with the information, including the terms and conditions, or on terms and conditions no more favorable to the proposed transferee, set forth in the notice first delivered to the Company. The Company may require the
transferee to agree in writing to be bound by the restrictions of this Section 4.5 as a condition to the effectiveness of the proposed transfer. If the Transferor does not complete such transfer within 90 days after the Company has elected not to
exercise its right of first refusal, or if there is any material (and favorable to the transferee) change in the terms or conditions of the proposed transfer, the transfer shall again be subject to the right of first refusal set forth in this
Section 4.5. 
  
 (g) The closing of the purchase of the Preferred
Shares pursuant to the Company’s exercise of its right of first refusal shall occur as provided in Section 4.5.3 hereof. 
  
 4.5.3 Closing. 
  
 (a) In the event that the Company is to purchase Preferred Shares under Section 4.5.2 hereof, the referenced Transferor shall tender the certificates or
other instruments evidencing such Preferred Shares at the Company’s offices at such date and time as the Company may designate within five business days of the date of receipt of the Company’s election to purchase such Preferred Shares.

  
 (b) The Company shall deliver the purchase price for such
Preferred Shares upon receipt of the certificates or other instruments evidencing such Preferred Shares. 
  

	SECTION	 	5. GENERAL 

  
 5.1 Amendments, Waivers and Consents. Any consents required and any waiver, amendment or other action of the Investors or holders of the Preferred
Shares (or Conversion Shares) may be made by consent(s) in writing signed by the holders of at least a majority of the Preferred Shares (including, for such purposes, any Conversion Shares into which any of the Preferred Shares have been converted
that have not been sold to the public). Any amendment or waiver made according to this section will be binding upon each holder of any securities purchased under this Agreement at the time outstanding (including securities into which such

  

 9 

 securities have been converted) and each future holder. Any amendment or waiver by the Company must be made in writing.
This Agreement may not be amended, except in a written document signed by the Company and holders of a majority of the Preferred Shares (including, for such purposes, any Conversion Shares into which any of the Preferred Shares have been converted
that have not been sold to the public). 
  
 5.2 Governing
Law. This Agreement is to be governed by and construed in accordance with the laws of the State of Georgia, without giving effect to the choice of law provisions thereof. 
  
 5.3 Counterparts. This Agreement may be executed in any number of counterparts, each of which will be taken to be an
original; but such counterparts will together constitute one document. Facsimile signature pages will be accepted as originals for all purposes hereof. 
  
 5.4 Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the parties named herein and their respective
successors and permitted assigns. No party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other party; provided, however, that each Investor may assign its
rights and interests hereunder to any Permitted Transferees. 
  
 5.5 Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 
  
 5.6 Notices. All notices, requests, demands, claims, and other
communications hereunder will be in writing and shall be deemed given to a party when (i) delivered to the appropriate address by hand or by nationally recognized courier service (costs prepaid); (ii) sent by facsimile with confirmation of
transmission by the transmitting equipment; or (iii) received or rejected by the addressee, if sent by certified mail, return receipt requested on the dated indicated on the return receipt; in each case to the addresses or facsimile numbers and
marked to the attention of the person (by name or title) designated on the signature page or Exhibit A (or to such other address or facsimile number or person as a party may designate by notice to the other party). 
  
 5.7 Severability. If any provision of this Agreement is held invalid
under applicable law, such provision will be ineffective to the extent of such invalidity, and such invalid provision will be modified to the extent necessary to make it valid and enforceable. Any such invalidity will not invalidate the remainder of
this Agreement. 
  
 5.8 Expenses. The Company will pay (a)
all costs and expenses that it incurs with respect to the negotiation, execution, delivery and performance of this Agreement, and (b) the legal fees and disbursements incurred by the Investors (up to a maximum of $35,000) with respect to this
Agreement and the transactions contemplated hereby. The Investors designate Salans as their counsel for this transaction. If either party is required to take any action to enforce its rights under this Agreement, the prevailing party shall be
entitled to its reasonable expenses, including attorneys’ fees, in connection with any such action. 
  

 10 

 5.9 Entire Agreement. This Agreement and the exhibits to this Agreement, together with the Rights
Agreement, constitute the entire agreement of the parties, and supersede any prior agreements. 
  
 [Signatures begin on the following page.] 
  

 11 

 The undersigned have executed this Agreement as of the day and year first written above. 
  

	 COMPANY:

	
	 INTERCEPT, INC.

		
	 By:
	 	   /s/ Gregory L. Boggs

	 Name:
	 	   G. Lynn Boggs

	 Title:
	 	   President and COO

	
	 Address for Notices:

	
	 3150 Holcomb Bridge Road

	 Suite 200

	 Norcross, Georgia 30071-1370

	 Attention:        President

	 Facsimile:        770-662-8399

  

	 INVESTORS:

	
	 SPROUT CAPITAL IX, L.P.

		
	 By:
	 	 DLJ Capital Corporation,

 Its Managing General Partner

		
	 By:
	 	         /s/ Robert Finzi

	 Name:    Robert Finzi

	 Its:    Managing Director

  

	 SPROUT ENTREPRENEURS FUND, L.P.

		
	 By:
	 	 DLJ Capital Corporation,

 Its General Partner

		
	 By:
	 	     /s/ Robert Finzi

	 Name:    Robert Finzi

	 Its:    Managing Director

	
	 DLJ CAPITAL CORPORATION

  

 12 

		
	 By:
	 	         /s/ Robert Finzi

	 Name:    Robert Finzi

	 Its:    Managing Director

  

 13 

 EXHIBIT A 
  
 THE INVESTORS 
  

	 	  	Preferred Shares Purchased

	 Name and Address for Notices

	  	Number

	  	Price

			
	 Sprout Capital IX, L.P.
  
 Jurisdiction of Organization: Delaware
 Principal Place of Business:
 Eleven Madison Avenue
 13th Floor
 New York, NY 10010
	  	99,400	  	$	9,940,000.00
			
	 Sprout Entrepreneurs Fund, L.P.
  
 Jurisdiction of Organization: Delaware
 Principal Place of Business:
 Eleven Madison Avenue
 13th Floor
 New York, NY 10010
	  	392	  	$	39,200.00
			
	 DLJ Capital Corporation
  
 Jurisdiction of Organization: Delaware
 Principal Place of Business:
 Eleven Madison Avenue
 13th Floor
 New York, NY 10010
	  	208	  	$	20,800.00
			
	 Address for Notice to all Investors:
 3000 Sand Hill Road
 Building Three, Suite 170
 Menlo Park, CA 94025
 Attn: Mr. Robert Finzi
 Facsimile: (650) 234-2779
  
 With a copy to :
 Salans
 620 Fifth Avenue
 New York, NY 10020
 Attn: Michael R. Flynn, Esq.
 Facsimile: (212) 632-5555)
	  	 	  	 	 

 EXHIBIT B 
  
 Form of 
  
 ARTICLES OF AMENDMENT 
  
 TO 
  
 ARTICLES OF INCORPORATION 
  
 OF 
  
 INTERCEPT, INC. 

 EXHIBIT C 
  
 Form of 
  
 REGISTRATION RIGHTS AGREEMENT 
  

 EXHIBIT D 
  
 Form of 
  
 LEGAL OPINION OF COUNSEL TO INTERCEPT

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