Exhibit 10.1SUPPLIER AGREEMENT     This Supplier Agreement (this “Agreement”) executed this 20th day of February,2008, but effective for all purposes as of April 1, 2008, is by and between Orchids Paper ProductsCompany, a Delaware corporation (“Orchids”), and Dixie Pulp & Paper, Inc., an Alabama businesscorporation (“Dixie”).W-I-T-N-E-S-S-E-T-H:     WHEREAS, Orchids is a manufacturer of certain products (“Products”) at its Pryor, Oklahomafacility; and     WHEREAS, Orchids requires certain secondary fiber in order to manufacture the Products; and     WHEREAS, Dixie has the ability to provide Orchids with such secondary fiber; and     WHEREAS, Orchids and Dixie desire to enter into this Agreement so that Dixie will provide allsecondary fiber materials needed by Orchids at its Pryor, Oklahoma facility, subject to the termsand conditions of this Agreement.     NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged, Orchids and Dixie hereby agree asfollows:     1. Scope of Agreement     1.1 Supplier of Goods and Services. Subject to the terms and conditions ofthis Agreement, Dixie hereby agrees to provide to Orchids, and Orchids agrees to purchasefrom Dixie, one hundred percent (100%) of the secondary fiber required by Orchids, exceptfor “broke” from Orchids converting plants, in its production of the Products (hereinafter,“Fiber”).     1.2 Ancillary Services Provided by Dixie. Dixie agrees to provide Orchidswith the following ancillary services during the term of this Agreement:     1.2.1 Regular communication and coordination with the contact persondesignated by Orchids for purposes of efficiently carrying out the provisions ofthis Agreement.     1.2.2 Management and coordination of all inbound freight associated with thepurchase of Fiber from Dixie.

 
     1.2.3 Periodically meet with Orchids to discuss and review the performance ofeach party to this Agreement.     1.2.4 Use reasonable efforts to establish an Internet program whereby Orchidscan monitor the status of orders made hereunder, such program sometimes hereinafterreferred to as “Dixie Link”.     1.2.5 Develop through Dixie Link real time access to shipping and receivingrecords and work with Orchids’ accounting and IT departments to develop a dailyinvoice download, along with other information needed.     1.2.6 If reasonably practical, coordinate with Orchids’ freight department inan effort to utilize backhauls for finished goods.     2. Nature of Relationship. During the term of this Agreement, the parties intend toestablish a working relationship for the purchase and supply of Fiber in order to achieve timelydeliveries, quality products and economically attractive pricing. Orchids will look to Dixie asits exclusive supplier of Fiber and Dixie will use its best efforts to make available capacity tomeet Orchids’ needs. Notwithstanding the foregoing terminology or any other provision contained inthis Agreement to the contrary, Orchids and Dixie do not intend or desire for this Agreement ortheir actions hereunder to be interpreted as creating a partnership or similar association.     3. Term. The original term of this Agreement shall be for a period of five (5) yearscommencing on April 1, 2008 and ending on March 31, 2013 (the “Original Termination Date”). Unlesseither party has notified the other, in writing, at least ninety (90) days prior to April 1 of eachyear (the “Anniversary Date”) of its intention not to extend this Agreement at the end of itscurrent term, the Original Termination Date shall be automatically extended for one (1) additionalyear so as to restore the original term of five (5) years. If either party notifies the other, inwriting, at least ninety (90) days prior to the Anniversary Date of its intention not to extendthis Agreement, then this Agreement shall terminate at the end of its then applicable current orextended term.     4. Exclusivity.     4.1 Orchids and Dixie agree that during the term of this Agreement, Dixie shall be thesole and exclusive supplier of Fiber for Orchids at its Pryor, Oklahoma facility.     4.2 Orchids agrees to communicate in writing to various sellers of secondary fiberthat “Orchids and Dixie have entered into a long-term exclusive supply agreement,” whichcommunication will include Orchids sending a letter in substantially the form ofExhibit A attached hereto and made a part hereof.5. Procedure for Purchase Requests and Purchase Orders.

 
     5.1 Purchase Requests. No later than 10 days prior to the first day of themonth to which the request relates, Orchids shall submit a request to Dixie for itsanticipated Fiber needs for the next calendar month. Dixie shall not be required to supplya grade of Fiber differing from that supplied during the previous month unless and untilDixie shall have received at least sixty (60) days prior written notice of such gradechange. Dixie will make every effort to minimize the development period for new grades.     5.2 Price Recommendation. Dixie shall respond (five (5) days prior to the endof month) to each request for Fiber needs with a price recommendation for Orchids approval.This recommendation will be based on the previous month’s market.     5.3 Purchase Order. Orchids will then set the price and a specific PurchaseOrder (two (2) days prior to the end of the month) for Fiber, showing quantity and pricing.     5.4 Governing Terms and Conditions. The terms and conditions set forth inthis Agreement are intended to govern the relationship between the parties hereto andhereunder. Terms and conditions contained in any standard forms or documents used byeither party, including request, Purchase Order forms or otherwise are hereby excluded.     6. Delivery, and Payment Terms.     6.1 Freight.     6.1.1 Deliveries. Dixie agrees to manage and coordinate all inboundscrap freight.     6.1.2 Freight Charges. Prices for freight charges related to deliveryof Fiber to Orchids under this Agreement will be set by Dixie and Orchids willreimburse Dixie for all freight.     6.1.3 Notification to Dixie of Receiving Weights. All receivingweights on shipments to Orchids Pryor, Oklahoma facility shall be delivered byfacsimile transmission to Dixie within twenty-four (24) hours of receipt of thematerial.     6.2 Payment Terms. Dixie will provide Orchids billing for all Fiber costs,applicable freight and shipping charges. Payment shall be net thirty (30) days from dateof shipment in connection with each Purchase Order. Payments shall be considereddelinquent if payment is not received within said thirty (30) day period.

 
     6.3 Withhold Delivery. In the event payment is not received by Dixie withinthirty (30) days from the date of shipment as provided in paragraph 6.2 above, then afterten (10) days written notice from Dixie to Orchids, Dixie may withhold further delivery ofFiber to Orchids until delinquent payments, if any, are made in full.     6.4 Quarterly Reports. During the term of this Agreement, Dixie will trackthe weighted average shipping point price **[*]**, for various grades and various regions. Inaddition, Dixie will track actual freight costs for its delivery of Fiber pursuant to thisAgreement **[*]**. Dixie will prepare and deliver to Orchids quarterly reports comparing theactual Fiber and freight costs **[*]**, in substantially the form as the example attachedhereto as Exhibit B and incorporated herein by reference. To the extent that thedescription of the reports and calculations described herein are ambiguous, contrary to orinconsistent with the example attached hereto as Exhibit B, the example shallprevail over the written description contained herein. The quarterly reports shall bedelivered to Orchids no later than five (5) business days following the end of eachcalendar quarter, beginning the fourth quarter 2008. In addition, such quarterly reportsshall be submitted with a one (1) month lag. For example, the first quarter report willprovide information for January and February only, the second quarter report will provideinformation for March through May, the third quarter report will provide information forJune through August and the fourth quarter report will provide information for Septemberthrough November. The first annual report will contain nine (9) months of data. The actualyear-end data will be furnished annually no later than the end of the first calendarquarter.     6.5 Savings. It is anticipated that Dixie will reduce Orchids totaldelivered weighted average price for Fiber and freight below Orchids’ average price forcomparable Fiber and freight **[*]**. As shown on Exhibit B attached hereto, it isexpected that Orchids will save, on all tons of Fiber purchased from Dixie each year, aminimum of **[*]**. If, in any year, the actual savings to Orchids exceeds the above referenced“expected” savings, all or any portion of such excess will be used by Dixie in future yearsto offset any deficiency in actual savings compared to expected savings. **[*]**.     7. Inventory. Dixie agrees that it will maintain a minimum of **[*]**days supply ofFiber **[*]**. For purposes of this paragraph, Orchids’ **[*]**day supply shall be an amount equal to theproduct of **[*]**multiplied by Orchids’ average daily usage of Fiber during the calendar monthimmediately preceding the month in which such calculation is performed. Dixie shall be deemed tohave satisfied its obligation to inventory a **[*]**day supply of Fiber so long as an amount at leastequal to such **[*]**day supply is, in the aggregate, on hand at an Orchids facility and/or awarehouse owned or leased by Dixie. Without limiting the foregoing, Orchids agrees to makeavailable on-site storage in Pryor, Oklahoma, an amount of space sufficient to store a **[*]**daysupply of Fiber. In the event that (i) Orchids accepted the price recommended by Dixie pursuant toparagraph 5.2 above, (ii) Dixie shall fail to maintain a **[*]**day inventory of Fiber as requiredabove, and (iii) as a result, **[*]**, Dixie agrees to **[*]**. In the event that (i) Orchids did notaccept the

 
price recommended by Dixie pursuant to paragraph 5.2 above, (ii) Dixie shall fail to maintain a **[*]**day inventory of Fiber as required above, and (iii) as a result, **[*]**, Dixie agrees to **[*]**.     8. Quality and Standards.     8.1 Except as otherwise provided in this Agreement, the terms, conditions andspecifications of the Institute of Scrap Recycling Industries, Inc. for paper stock:domestic transactions, as amended from time to time, shall be incorporated herein byreference. This guideline states that basic to the success of any buyer-sellerrelationship is an atmosphere of “good faith” and gives the following underlying principlesas necessary:     8.1.1 Seller (Dixie) must use due diligence to ascertain that shipmentsconsist of properly packed paper stock and that the shipment is made during theperiod specified.     8.1.2 Arbitrary rejections, deductions and cancellations by the buyer(Orchids) are counter to acceptable good trade practice.     8.1.3 Seller (Dixie ) shall deliver the quality of paper stock agreed upon butshall not be responsible for its use or the paper or paperboard manufacturedtherefrom.     8.2 Orchids required specifications and quality requirements will be established by Orchids.     8.3 Dixie agrees to supply Orchids only with grades and sources of waste paper thathave been approved by Orchids.     8.4 Dixie agrees to change sourcing of a particular grade of waste paper or source ofwaste paper if either materially affects the yield or the efficiencies of the papermachines.     9. Limitation of Liability. Except as otherwise provided in this Agreement, in noevent shall Dixie be liable for any consequential, incidental, indirect or special damages of anykind whatsoever in connection with this Agreement or any Purchase Order placed hereunder.     10. Confidentiality. During the term of this Agreement, Dixie and Orchids will beexposed to and have access to important confidential and proprietary information of each other,such as financial data, pricing, rates, suppliers, customers, and various other trade secrets whichare confidential in nature and are referred to collectively as “confidential information”. Dixieand Orchids agree that with regard to any correspondence, documents, lists or other printedinformation exchanged between the

 
parties or their respective affiliates, agents or representatives, the party sending such materialshall designate the same as confidential information by clearly marking the words “Confidential”,“Proprietary” or any similar mark on the appropriate material(s). Notwithstanding the foregoing,the parties acknowledge and agree that the exchange of any information regarding price, rates,customers, and suppliers shall be considered confidential information. Dixie and Orchids,respectively, agree not to disclose any of the confidential information of the other party nor tomake any use of the confidential information received except for the sole purpose of complying withthe terms of this Agreement. Any confidential information which may be furnished to Orchids andDixie, respectively, or their respective affiliates, directors, officers, employees, counsel,accountants, or agents, shall be retained on a confidential basis according to the terms of thisAgreement. Notwithstanding any provisions of this Agreement to the contrary, Orchids and Dixie,respectively, agree that any confidential information received from the other party shall only bedisclosed to their employees, officers, directors, agents, or advisors (including withoutlimitation attorneys, accountants, consultants, and financial advisors) with a “need to know”,unless the prior written consent of the other party is obtained. In addition, Orchids and Dixieagree to keep the terms of this Agreement confidential to the extent permitted by the rules andregulations of the Securities and Exchange Commission.     11. Notices. Any notices hereunder shall be in writing and shall be deemedeffectively given with delivered in person or when sent by facsimile transmission or registeredmail to the address of the other party designated below or at such different address as such partymay hereafter designate by notice:       Dixie Pulp & Paper, Inc.      Orchids Paper Products Company       Attn: David Hudson, Jr.      Attn: Keith R. Schroeder  If by U.S. Mail:      If by U.S. Mail:       P. O. Box 20204               4826 Hunt Street    Tuscaloosa, AL 35402            Pryor, OK 74361  Fax: (205) 759-2606      Fax: (918) 825-6239       If by Express Courier: If by Express Courier:     101 Marina Drive   4826 Hunt Street     Tuscaloosa, AL 35406   Pryor, OK 74361     12. Miscellaneous.     12.1 Neither the failure nor delay on the part of either party to exercise any right,power or privilege hereunder shall operate as a waiver thereof, nor shall any single orpartial exercise of any right, power or privilege hereunder preclude any other or furtherexercise thereof, or the exercise of any other right, power or privilege.

 
     12.2 This Agreement shall be deemed to be a contract made under the laws of the Stateof Oklahoma and for all purposes shall be governed by the laws of that state.     12.3 The language in all parts of this Agreement shall in all cases be construedsimply, according to its fair meaning and not strictly for or against any of the partieshereto. Without limitation, there shall be no presumption against any party on the groundthat such party was responsible for drafting this Agreement or any part thereof.     12.4. The obligations of the parties under this Agreement (other than the obligationto make payments) shall be suspended to the extent a party is hindered or prevented fromcomplying therewith because of labor disturbances (including strikes or lockouts), war,acts of God, earthquakes, fires, storms, accidents, governmental regulations, failure ofvendors or suppliers or any other cause whatsoever beyond a party’s control. For so longas such circumstances prevail, the party whose performance is delayed or hindered shallcontinue to use all commercially reasonable efforts to recommence performance withoutdelay.     12.5 This Agreement shall be binding upon and shall inure to the benefit of theparties hereto and their respective heirs, executors, administrators, successors andpermitted assigns.     12.6 APPLICABLE LAW WAIVER OF JURY TRIAL AND CONSENT TO JURISDICTION/VENUE.THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OFOKLAHOMA. EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT THATIT OR ITS RESPECTIVE SUCCESSORS OR ASSIGNS MAY HAVE TO A TRIAL BY JURY IN CONNECTION WITHANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENTAND ANY INSTRUMENTS OR DOCUMENTS CONTEMPLATED THEREBY TO BE EXECUTED IN CONJUNCTIONTHEREWITH, OR IN CONJUNCTION WITH ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE PARTIES. REGARDLESS OF ANY PLACE TO WHICHEITHER PARTY MAY MAINTAIN ITS LEGAL DOMICILE OR RESIDENCE, TO THE FULL EXTENT PERMITTED BYLAW, EACH PARTY HEREBY CONSENTS THAT SUIT MAY BE INSTITUTED IN THE CIRCUIT COURT (OR, IFNONE, IN A COMPARABLE COURT HAVING JURISDICTION) OF MAYES COUNTY, OKLAHOMA AND HEREBYIRREVOCABLY CONSENTS TO THE JURISDICTION OF SUCH COURT (IN PERSONAM, OR OTHERWISE) ANDWAIVES ANY AND ALL JURISDICTIONAL DEFENSES THAT IT MAY HAVE TO THE INSTITUTION OF SUCH ANACTION IN SUCH COURT.

 
     12.7 Any dispute, controversy or claim arising out of or related to this Agreement, orthe breach thereof, whether during or after the term hereof, which cannot be amicablyresolved by the parties within twenty (20) days of the written request of one of them shallbe, upon the written demand of either party, finally resolved by compulsory arbitrationunder the then current Commercial Arbitration Rules of the American Arbitration Association(“AAA”) strictly in accordance with the terms of this Agreement and the substantive law ofthe State of Oklahoma. Unless otherwise agreed, the arbitral tribunal shall consist ofthree independent arbitrators, each chosen by mutual agreement of the parties. In theevent the parties are unable to agree on three independent arbitrators, then each willinstead designate one “party-appointed” arbitrator from the AAA National Roster ofCommercial Arbitrators, and these two party-appointed arbitrators will appoint a third“neutral” arbitrator from the AAA National Roster of Commercial Arbitrators, in accordancewith Section R-13(c) of the AAA’s Commercial Arbitration Rules in effect on the date ofthis Agreement. Unless otherwise agreed, the arbitration shall be held in Tulsa, Oklahoma.The parties expressly agree that (i) injunctive relief may be granted by the arbitrators,(ii) exemplary or punitive damages may not be granted, and (iii) judgment on the awardentered by the arbitral tribunal may be entered in any court having jurisdiction. Eachparty will pay one-half of the aggregate fees of the arbitrators.     IN WITNESS WHEREOF, the parties have caused this instrument to be executed by their dulyauthorized representatives on the date first written above.           DIXIE PULP & PAPER, INC.             By:                          Name:                          Title:                        ORCHIDS PAPER PRODUCTS COMPANY             By:                 Keith R. Schroeder      Chief Financial Officer