Exhibit 10.2
AMENDMENT ONE TO SECOND AMENDED AND RESTATED
AGENTED CREDIT AGREEMENT
     This Amendment One to Second Amended and Restated Agented Credit Agreement
(“Amendment”) is dated effective October 25, 2007, among ORCHIDS PAPER PRODUCTS
COMPANY, a Delaware corporation (“Borrower”), and BANK OF OKLAHOMA, N.A.
(“BOK”), BANCFIRST, and COMMERCE BANK, N.A. (individually a “Bank” and
collectively the “Banks”), and BANK OF OKLAHOMA, N.A., as agent for the Banks
hereunder (in such capacity, “Agent”).
RECITALS
     A. Reference is made to the Second Amended and Restated Agented Credit
Agreement by and among Borrower, Banks and Agent, dated April 9, 2007, pursuant
to which currently exists (i) a term loan in the original principal amount of
$10,000,000; (ii) a term loan in the original principal amount of $16,500,000;
(iii) a $6,000,000 revolving line of credit; and (iv) a construction loan in the
original principal amount of $3,000,000. Terms used herein shall have the
meanings given in the Credit Agreement, unless otherwise defined herein.
     B. Borrower has requested that Banks modify the definition of EBITDA to
include non-cash stock option expenses; and Banks have agreed to Borrower’s
request, subject to the terms and conditions of this Amendment.
AGREEMENT
     NOW, THEREFORE, in consideration of the representations and warranties
contained herein and for valuable consideration received, the parties agree to
the following:
     1. Amendments to the Credit Agreement. The Credit Agreement is hereby
amended as follows:
     1.1. Section 1.27 (EBITDA) is hereby deleted and replaced with the
following:
     “1.27. ‘EBITDA’ shall mean net income plus (i) interest expense,
(ii) depreciation, depletion, obsolescence and amortization of property, (iii)
capitalized lease expense, (iv) tax expense, and (v) non-cash stock option
expense, all determined in accordance with GAAP, and for a particular period.”
     2. Conditions Precedent. This Amendment and each Bank’s commitments
hereunder are conditioned upon satisfaction of the following at or before
closing.
     2.1. Borrower shall execute and deliver to Banks this Amendment.

 

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     2.2. Borrower shall provide any and all documents, agreements and
instruments related to this transaction, reasonably requested by the Banks.
     3. Borrower Ratification. Borrower hereby ratifies and confirms the Credit
Agreement, and all instruments, documents and/or agreements executed and/or
delivered by Borrower to Bank in connection therewith, and represents to Banks
that: (i) the Loan Documents remain in full force and effect; (ii) all
representations and warranties made thereunder are true and correct as of the
date hereof; and (iii) no Event of Default exists or will result from the
execution of this Amendment.
     4. Governing Law and Binding Effect. This Amendment shall be governed by
and construed in accordance with the laws of the State of Oklahoma, and shall
inure to the benefit of and be binding upon the parties hereto, their successors
and assigns.
     5. Costs, Expenses and Fees. Borrower agrees to pay all costs, expenses and
fees incurred by the Banks or otherwise in connection herewith, including,
without limitation, all reasonable attorney fees, costs and expenses of Riggs,
Abney, Neal, Turpen, Orbison & Lewis.
     6. Multiple Counterparts. This Amendment may be executed in any number of
counterparts, and all the counterparts taken together shall be deemed to
constitute one and the same instrument.
     7. Further Assurances. Borrower will immediately execute and deliver to the
Banks upon request all such other and further instruments as may be required or
desired by the Banks from time to time in compliance with or in accomplishment
of the covenants and agreements of Borrower made in this Amendment and such
other instruments and documents referred to or mentioned herein, all as may be
necessary or appropriate in connection therewith.
[Signature Pages to Follow]

 

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed.

              “Borrower”
 
            ORCHIDS PAPER PRODUCTS COMPANY
 
       
 
  By   /s/ Keith R. Schroeder
 
       
 
      Keith R. Schroeder, Chief Financial Officer

 

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              “Banks”
 
            BANK OF OKLAHOMA, N.A., as a Bank and Agent
 
       
 
  By   /s/ Dan Hughes
 
       
 
      Dan Hughes, Senior Vice President

 

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              BANCFIRST
 
       
 
  By   /s/ Elisabeth F. Blue
 
       
 
      Elisabeth F. Blue, Executive Vice President

 

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              COMMERCE BANK, N.A.
 
       
 
  By   /s/ Dennis R. Block
 
       
 
      Dennis R. Block, Senior Vice President