EX-10.5 6 dex105.htm AMENDMENT NO. 4 TO COMMITMENT AGREEMENT, DATED AS OF DECEMBER 20, 2004 Amendment No. 4 to Commitment Agreement, dated as of December 20, 2004

Exhibit 10.5

 

AMENDMENT NO. 4 TO COMMITMENT AGREEMENT

 

As of December 20, 2004

 

To the Subscribers under the

Commitment Agreement referred to below

 

Ladies and Gentlemen:

 

Reference is made to the Commitment Agreement, dated as of February 23, 2004, entered into by and among Oglebay Norton Company and the other parties (the “Subscribers”) signatory thereto, as amended by Amendments No. 1, No. 2 and No. 3 thereto (the “Agreement”). Defined terms used but not otherwise defined herein shall have the meaning ascribed to them in the Agreement.

 

The Company has proposed amendments to the Agreement (1) to change the date prior to which the Registration Statement must be declared effective from December 15, 2004 to December 30, 2004, (2) to change the date on which the non-completion of the Restructuring Transaction will become a Termination Event from January 15, 2005 to January 31, 2005, (3) to amend Schedule 1 attached hereto to correct the identity of certain of the original Subscribers and to amend and restate the respective beneficial ownership of Subordinated Notes, Commitment Amounts and Commitment Fees of each of the Subscribers as of the date hereof and (4) to amend the definition of “Plan Modifications” and “Amended Plan.”

 

Upon receipt of the Requisite Shareholders’ consent as described herein, the Agreement shall be amended as follows:

 

1. Preliminary Statement E of the Agreement shall be deleted in its entirety and replaced by the following:

 

“E. The Noteholders hold the principal amount of Subordinated Notes set forth opposite their respective names on Schedule 1 to Amendment No. 4 of this Agreement, which represents approximately 32.9% of the aggregate amount of Subordinated Notes outstanding.”

 

2. The references to “Schedule 1 to Amendment No. 2 to this Agreement” in Section 1(a) and Section 3(b) of the Agreement shall be deleted and replaced by “Schedule 1 to Amendment No. 4 to this Agreement.”

 

3. The reference to “December 15, 2004” in Section 2 of the Agreement shall be deleted and replaced by “December 30, 2004.”

4. Section 7(a)(vii) of the Agreement shall be deleted in its entirety and replaced by the following:

 

“(vii) the Restructuring Transaction is not completed by January 31, 2005.”

 

5. Schedule 1 attached hereto hereby corrects the identity of certain of the original Subscribers and amends and restates the respective beneficial ownership of Subordinated Notes, Commitment Amounts and Commitment Fees of each of the Subscribers as set forth on Schedule 1 to Amendment No. 2 to the Agreement to reflect as of the date hereof changes in beneficial ownership of Subordinated Notes by certain Noteholders.

 

6. The term “Amended Plan” as used in the Agreement shall mean the Company’s Second Amended Joint Plan of Reorganization of Debtors and Debtors in Possession as modified and dated July 30, 2004 and as further modified by the plan modifications filed with the Bankruptcy Court on November 12, 2004. The term “Plan Modifications” as used in the Agreement shall mean the plan modifications filed with the Bankruptcy Court on November 12, 2004 in connection with the Amended Plan.

 

The delivery to the Company of this letter duly executed by you will evidence your agreement to the amendments to the Agreement set forth above. These amendments will become effective, and binding upon the Company and all of the Subscribers, upon delivery to the Company of copies of this letter duly executed by the Requisite Subscribers.

 

The provisions of Section 14 of the Agreement relating to counterparts and facsimile signatures shall be applicable to this Amendment No. 4 to the Agreement.

 

[The balance of this page has been intentionally left blank.]

 

2

Except as amended hereby, the Agreement shall remain in full force and effect in accordance with its terms.

 

Very truly yours,

OGLEBAY NORTON COMPANY

By:

  

/s/ Rochelle F. Walk

Name:

  

Rochelle F. Walk

Title:

  

Vice President, General Counsel & Secretary

 

3

NOTEHOLDERS:

 

SUBSCRIBERS

 

Airlie Opportunity Master Fund, LTD.

By:

  

/s/ Steven Ezzes

Name:

  

Steven Ezzes

Title:

  

Managing Director

Berlin Capital Growth, L.P.

By:

  

Berlin Financial, Ltd., its general partner

/s/ Thomas G. Berlin

Name:

  

Thomas G. Berlin

Title:

  

Managing Member

Richard Groenendyke

By:

  

/s/ Richard Groenendyke

Ingalls & Snyder Value Partners, L.P.

By:

  

/s/ Thomas Boucher

Name:

  

Thomas Boucher

Title:

  

General Partner

Legacy Aggressive High Yield Fund
By:   Banc One High Yield Partners, LLC

By:

  

/s/ James P. Shanahan, Jr.

Name:

  

James P. Shanahan, Jr.

Title:

  

Managing Director/General Counsel

 

4

One Group High Yield Bond Fund
By:   Banc One High Yield Partners, LLC

By:

  

/s/ James P. Shanahan, Jr.

Name:

  

James P. Shanahan, Jr.

Title:

  

Manager

One Group Income Bond Fund
By:   Banc One High Yield Partners, LLC

By:

  

/s/ James P. Shanahan, Jr.

Name:

  

James P. Shanahan, Jr.

Title:

  

Manager

Pacholder High Yield Fund, Inc.
By:   Banc One High Yield Partners, LLC

By:

  

/s/ James P. Shanahan, Jr.

Name:

  

James P. Shanahan, Jr.

Title:

  

Secretary

Southern UTE Permanent Fund
By:   Banc One High Yield Partners, LLC

By:

  

/s/ James P. Shanahan, Jr.

Name:

  

James P. Shanahan, Jr.

Title:

  

Manager

WCI Steel, Inc. Defined Pension Benefit Plan
By:   Banc One High Yield Partners, LLC

By:

  

/s/ James P. Shanahan, Jr.

Name:

  

James P. Shanahan, Jr.

Title:

  

Manager

 

5

THIRD PARTY INVESTORS
Robert T. Clutterbuck Trust

By:

  

/s/ Robert T. Clutterbuck

Name:

  

Robert T. Clutterbuck

Title:

  

Trustee

Fledgling Associates LLC

By:

  

/s/ Ronald J. Bangs

Name:

  

Ronald J. Bangs

Title:

  

Authorized Signatory

J George Investments LLC

By:

  

Berlin Financial, Ltd., its investment advisor

/s/ Thomas G. Berlin

Name:

  

Thomas G. Berlin

Title:

  

Managing Member

Brad Shingleton

By:

  

/s/ Brad Shingleton

 

6

Schedule 1

 

Noteholders

 

Beneficial Holder

    Principal
Amount of
Notes
Beneficially
Owned
    Basic
Commitment
Amount
    Total
Commitment
Amount including
Standby
Commitment if
applicable
    Commitment
Fee

Airlie Opportunity Master Fund, LTD.1

    $ 4,750,000    $ 3,800,000    $ 10,090,161    $ 390,508

Altman, Ronald

    $ 500,000    $ 400,000    $ 400,000    $ 8,000

Berlin Capital Growth, L.P.

    $ 1,125,000    $ 900,000    $ 1,682,813    $ 57,141

Blythefield Farms LLC

    $ 100,000    $ 80,000    $ 80,000    $ 1,600

Boone, H. Sheppard

    $ 400,000    $ 320,000    $ 871,859    $ 33,993

Boucher, Thomas

    $ 10,000    $ 8,000    $ 597,423    $ 29,631

CFG Trust

    $ 250,000    $ 200,000    $ 200,000    $ 4,000

Connecticut General Life Insurance

    $ 2,000,000    $ 1,600,000    $ 1,600,000    $ 32,000

DiTosto, Thomas

    $ 320,000    $ 256,000    $ 807,183      32,679

Dougherty, John

    $ 1,000,000    $ 800,000    $ 1,902,637    $ 71,132

Ferguson, Shannah

    $ 620,000    $ 496,000    $ 496,000    $ 9,920

Foote, Lynn

    $ 100,000    $ 80,000    $ 544,836    $ 24,842

Kenneth J. Foote IRA

    $ 100,000    $ 80,000    $ 80,000    $ 1,600

Foote, Theresa M.

    $ 400,000    $ 320,000    $ 320,000    $ 6,400

Groenendyke, Richard

    $ 120,000    $ 96,000    $ 96,000    $ 1,920

Heritage Mark Foundation

    $ 2,300,000    $ 1,840,000    $ 1,840,000    $ 36,800

Ingalls & Snyder Value Part. L.C.

    $ 8,700,000    $ 6,960,000    $ 20,988,418    $ 840,621

Janovic, Adam

    $ 150,000    $ 120,000    $ 120,000    $ 2,400

Janovic, Evan

    $ 300,000    $ 240,000    $ 240,000    $ 4,800

Janovic, Neil

    $ 400,000    $ 320,000    $ 320,000    $ 6,400

Legacy Aggressive High Yield Fund

    $ 150,000    $ 120,000    $ 120,000    $ 2,400

One Group High Yield Bond Fund

    $ 4,250,000    $ 3,400,000    $ 6,487,528    $ 222,376

One Group Income Bond Fund

    $ 500,000    $ 400,000    $ 400,000    $ 8,000

Pacholder High Yield Fund, Inc.

    $ 2,250,000    $ 1,800,000    $ 2,563,473    $ 74,174

Ramer 1990 Living Trust

    $ 200,000    $ 160,000    $ 160,000    $ 3,000

Brad Shingleton Trust

    $ 175,000    $ 140,000    $ 140,000    $ 2,800
1 Successor in interest to Airlie Opportunity Fund, L.P. and Airlie Opportunity Fund Cayman, LTD.

 

7

Beneficial Holder

    Principal
Amount of
Notes
Beneficially
Owned
    Basic
Commitment
Amount
    Total
Commitment
Amount including
Standby
Commitment if
applicable
    Commitment
Fee

Elizabeth A. Shingleton Trust

    $ 100,000    $ 80,000    $ 80,000    $ 1,600

Jennifer C. Shingleton Trust

    $ 100,000    $ 80,000    $ 80,000    $ 1,600

Shingleton, Kenneth P.

    $ 100,000    $ 80,000    $ 80,000    $ 1,600

Rebecca M. Shingleton Trust

    $ 75,000    $ 60,000    $ 60,000    $ 1,200

Siegel, Christopher R.

    $ 300,000    $ 240,000    $ 792,399    $ 32,420

Shuldiner, David

    $ 75,000    $ 60,000    $ 60,000    $ 1,200

Solomon, Martin L.

    $ 150,000    $ 120,000    $ 1,094,264    $ 51,113

Southern UTE Permanent Fund2

    $ 241,000    $ 192,800    $ 192,800    $ 3,856

Steadfast LLC

    $ 100,000    $ 80,000    $ 80,000    $ 1,600

William Robert Thomas Trust

    $ 150,000    $ 120,000    $ 120,000    $ 2,400

Abigail Foote Thomas Trust

    $ 200,000    $ 160,000    $ 160,000    $ 3,200

WCI Steel, Inc. Defined Pension Benefit Plan

    $ 100,000    $ 80,000    $ 80,000    $ 1,600
Noteholders Total    $ 32,861,000    $ 26,288,800    $ 56,027,794    $ 2,012,526

 

Third Party Investors

 

Third Party Investor

    Commitment Amount
    Commitment Fee

Robert T. Clutterbuck Trust

    $ 524,000    $ 10,480

Fledgling Associates LLC

    $ 5,540,194    $ 277,010

Gator Investment Company

    $ 1,108,039    $ 55,402

Gipson, Robert L.

    $ 3,324,116    $ 166,206

Gipson, Thomas L.

    $ 3,324,116    $ 166,206

J George Investments LLC

    $ 8,967,547    $ 304,497

Monoyios, Nikolaus

    $ 3,324,116    $ 166,206

Shingleton, Brad

    $ 120,000    $ 2,400

Stein, John

    $ 1,108,039    $ 55,402

Stein, Steven N.

    $ 1,108,039    $ 55,402

Stifel Nicolaus & Company, Incorporated

    $ 524,000    $ 10,480
Third Party Investors Total    $ 28,972,206    $ 1,269,691

Overall Totals:

 

    Commitment Amount
    Commitment Fee
     $ 85,000,000    $ 3,282,217
2 Successor in interest to Southern UTE Growth Fund.

 

8