Document:

Exhibit 10.2

 

EIGHTH AMENDMENT TO
 AMENDED AND RESTATED LEASE AGREEMENT NO. 2

 

THIS EIGHTH AMENDMENT TO AMENDED AND RESTATED LEASE AGREEMENT NO. 2 (this “Amendment”) is made and entered into as of January 29, 2019, by and between HPT TA PROPERTIES TRUST, a Maryland real estate investment trust, and HPT TA PROPERTIES LLC, a Maryland limited liability company, as landlord (collectively, “Landlord”), and TA OPERATING LLC, a Delaware limited liability company, as tenant (“Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, Landlord and Tenant are parties to that certain Amended and Restated Lease Agreement No. 2, dated as of June 9, 2015, as amended by that certain First Amendment to Amended and Restated Lease Agreement No. 2, dated as of June 16, 2015, that certain Second Amendment to Amended and Restated Lease Agreement No. 2, dated as of June 23, 2015, that certain Third Amendment to Amended and Restated Lease No. 2, dated as of September 23, 2015, that certain Fourth Amendment to Amended and Restated Lease No. 2, dated as of June 22, 2016, that certain Fifth Amendment to Amended and Restated Lease No. 2, dated as of June 30, 2016, that certain Sixth Amendment to Amended and Restated Lease No. 2, dated as of September 30, 2016, and that certain Seventh Amendment to Amended and Restated Lease No. 2, dated as of January 17, 2019 (as so amended, the “Lease”);

 

WHEREAS, HPT TA Properties Trust is selling to Tenant, and Tenant is acquiring from HPT TA Properties Trust, the Properties (this and other capitalized terms used and not otherwise defined in this Amendment shall have the meanings given such terms in the Lease) related to the Travel Centers identified on Schedule 1 attached hereto and made a part hereof (collectively, the “Sold Properties”);

 

WHEREAS, Landlord and Tenant wish to amend the Lease to remove the Sold Properties and to reflect a corresponding reduction in Minimum Rent; and

 

WHEREAS, Guarantor is executing this Amendment solely to confirm the continuation of the Guaranty with respect to the Lease (as amended by this Amendment);

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree, as of the date of this Amendment, as follows:

 

1.             Sold Properties.  The Leased Property shall exclude the Sold Properties, but notwithstanding the foregoing, Tenant shall retain all of its obligations with respect to the Sold Properties which are attributable to events occurring on or prior to the date hereof or which are addressed pursuant to Section 9.5 of the Lease (as if all of the Sold Properties remained Properties for the remainder of the Term).  In furtherance of the foregoing, however, Tenant shall have no obligation to comply with Section 5.3 of the Lease solely with respect to the Sold Properties.

 

 

2.             Minimum Rent.  The defined term “Minimum Rent” set forth in Section 1.66 of the Lease is deleted in its entirety and replaced with the following:

 

“Minimum Rent” shall mean Forty-Four Million Six Hundred Sixty-Three Thousand Two Hundred Sixty-Seven and 00/100ths Dollars ($44,663,267.00), subject to adjustment as provided in Section 3.1.1(b).

 

3.             Exhibit A.  Exhibit A to the Lease is hereby amended by (a) deleting the initial page entitled “EXHIBITS A-1 through A-41” therefrom in its entirety and replacing it with the page entitled “EXHIBITS A-1 through A-41” attached hereto, (b) deleting the legal descriptions for the Sold Properties from Exhibits A-18 and A-32 to the Lease and replacing them with “Intentionally deleted”.

 

4.             Ratification.  As amended hereby, the Lease is hereby ratified and confirmed and remains in full force and effect.

 

5.             Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

2

 

IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be duly executed, as a sealed instrument, as of the date first above written.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
HPT TA PROPERTIES   TRUST,
    
	
 
    	
a   Maryland real estate investment trust
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ John   G. Murray
    
	
 
    	
 
    	
John G.   Murray
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HPT TA PROPERTIES   LLC,
    
	
 
    	
a   Maryland limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ John   G. Murray
    
	
 
    	
 
    	
John G.   Murray
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
TA OPERATING LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Mark   R. Young
    
	
 
    	
 
    	
Mark R.   Young
    
	
 
    	
 
    	
Executive   Vice President
    

 

[Signature Page to Eighth Amendment to Amended and Restated Lease Agreement No. 2]

 

 

Reference is made to that certain Guaranty Agreement, dated as of June 9, 2015, given by TRAVELCENTERS OF AMERICA LLC and TRAVELCENTERS OF AMERICA HOLDING COMPANY LLC, each a Delaware limited liability company (collectively, “Guarantors”), to Landlord with respect to Tenant’s obligations under the Lease (the “Guaranty”).  Guarantors hereby confirm that all references in such Guaranty to the word “Lease” shall mean the Lease, as defined therein, as amended by this Amendment (and any prior amendments referenced in this Amendment), and said Guarantors hereby reaffirm the Guaranty.

 

	
 
    	
GUARANTORS:
    
	
 
    	
 
    
	
 
    	
TRAVELCENTERS OF   AMERICA LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Mark   R. Young
    
	
 
    	
 
    	
Mark R.   Young
    
	
 
    	
 
    	
Executive   Vice President
    
	
 
    	
 
    
	
 
    	
TRAVELCENTERS OF   AMERICA HOLDING
    
	
 
    	
COMPANY LLC, a Delaware limited liability
    
	
 
    	
company
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Mark   R. Young
    
	
 
    	
 
    	
Mark R.   Young
    
	
 
    	
 
    	
Executive   Vice President
    

 

[Joinder Page to Eighth Amendment to Amended and Restated Lease Agreement No. 2]

 

 

SCHEDULE 1

 

SOLD PROPERTIES

 

	
Street Address
    	
 
    	
City
    	
 
    	
State
    	
 
    	
Landlord
    
	
13400 Rogers Drive
    	
 
    	
Rogers
    	
 
    	
MN
    	
 
    	
HPT TA Properties Trust
    
	
608 Lovell Road
    	
 
    	
Knoxville
    	
 
    	
TN
    	
 
    	
HPT TA Properties Trust
    

 

 

EXHIBITS A-1 through A-41

 

Land

 

	
Exhibit
    	
 
    	
TA
   Site No.
    	
 
    	
Property Address
    	
 
    	
Initial
   Base Year
    	
 
    
	
A-1
    	
 
    	
54
    	
 
    	
9201 Grand Bay Wilmer Rd, Grand Bay (Mobile), AL   36541
    	
 
    	
2015
    	
 
    
	
A-2
    	
 
    	
7
    	
 
    	
2949 S. Toltec Road, Eloy, AZ 85213
    	
 
    	
2015
    	
 
    
	
A-3
    	
 
    	
94
    	
 
    	
946 West Beale Street, Kingman, AZ, 86401
    	
 
    	
2015
    	
 
    
	
A-4
    	
 
    	
33
    	
 
    	
408 Highway 149 North, Earle (West Memphis), AR   72331
    	
 
    	
2015
    	
 
    
	
A-5
    	
 
    	
227
    	
 
    	
2930 Lenwood Rd., Barstow, CA 92311
    	
 
    	
2015
    	
 
    
	
A-6
    	
 
    	
57
    	
 
    	
19483 Knighton Rd., Redding, CA 96002
    	
 
    	
2015
    	
 
    
	
A-7
    	
 
    	
248
    	
 
    	
1650 C.R. 210 West, Jacksonville (Jacksonville   South), FL 32259
    	
 
    	
2015
    	
 
    
	
A-8
    	
 
    	
158
    	
 
    	
11706 Tamp Gateway Blvd., Seffner (Tampa), FL 33584
    	
 
    	
2015
    	
 
    
	
A-9
    	
 
    	
156
    	
 
    	
30732 Highway 441 South, Commerce, GA 30529
    	
 
    	
2015
    	
 
    
	
A-10
    	
 
    	
249
    	
 
    	
6901 Bellville Road, Lake Park, GA 31636
    	
 
    	
2015
    	
 
    
	
A-11
    	
 
    	
167
    	
 
    	
4115 Broadway, Boise, ID 83705
    	
 
    	
2015
    	
 
    
	
A-12
    	
 
    	
30
    	
 
    	
16650 Russell Rd., Russell (Chicago North), IL   60075
    	
 
    	
2015
    	
 
    
	
A-13
    	
 
    	
199
    	
 
    	
819 Edwardsville Road, Troy, IL 62294
    	
 
    	
2015
    	
 
    
	
A-14
    	
 
    	
65
    	
 
    	
2636 E. Tipton Street, Seymour, IN 47274
    	
 
    	
2015
    	
 
    
	
A-15
    	
 
    	
66
    	
 
    	
3210 South 7th Street,       Council Bluffs, IA 51501
    	
 
    	
2015
    	
 
    
	
A-16
    	
 
    	
237
    	
 
    	
8560 Greenwood Rd., Greenwood, LA 71033
    	
 
    	
2015
    	
 
    
	
A-17
    	
 
    	
69
    	
 
    	
1255 N. Dixie Hwy, Monroe, MI 48162
    	
 
    	
2015
    	
 
    
	
A-18
    	
 
    	
 
    	
 
    	
Intentionally deleted
    	
 
    	
 
    	
 
    
	
A-19
    	
 
    	
52
    	
 
    	
100 North Broadway, Oak Grove, MO 64075
    	
 
    	
2015
    	
 
    
	
A-20
    	
 
    	
90
    	
 
    	
103 Prospectors Drive     ,   Ogallala, NE 69153
    	
 
    	
2015
    	
 
    
	
A-21
    	
 
    	
 
    	
 
    	
Intentionally deleted
    	
 
    	
 
    	
 
    
	
A-22
    	
 
    	
48
    	
 
    	
975 St. Rt. 173, Bloomsbury, NJ 08804
    	
 
    	
2015
    	
 
    
	
A-23
    	
 
    	
23
    	
 
    	
HC 69 - Box 120, Santa Rosa, NM 88435.
    	
 
    	
2015
    	
 
    
	
A-24
    	
 
    	
 
    	
 
    	
Intentionally deleted
    	
 
    	
 
    	
 
    
	
A-25
    	
 
    	
2
    	
 
    	
1101 NC Highway 61, Whitsett (Greensboro), NC 27377
    	
 
    	
2015
    	
 
    
	
A-26
    	
 
    	
39
    	
 
    	
10679 Lancaster Rd., Hebron, OH 43025
    	
 
    	
2015
    	
 
    
	
A-27
    	
 
    	
29
    	
 
    	
5551 St. Rt. 193, Kingsville, OH 44048
    	
 
    	
2015
    	
 
    
	
A-28
    	
 
    	
59
    	
 
    	
501 South Morgan Road, Oklahoma City (West), OK   73128
    	
 
    	
2015
    	
 
    
	
A-29
    	
 
    	
56
    	
 
    	
21856 Bents Road, NE, Aurora (Portland), OR 97002
    	
 
    	
2015
    	
 
    
	
A-30
    	
 
    	
215
    	
 
    	
4050 Depot Road, Erie (Harborcreek), PA 16510
    	
 
    	
2015
    	
 
    
	
A-31
    	
 
    	
12
    	
 
    	
7848 Linglestown Road, Harrisburg, PA 17112
    	
 
    	
2015
    	
 
    
	
A-32
    	
 
    	
 
    	
 
    	
Intentionally deleted
    	
 
    	
 
    	
 
    
	
A-33
    	
 
    	
17
    	
 
    	
6800 Thompson Road, Baytown, TX 77522
    	
 
    	
2015
    	
 
    
	
A-34
    	
 
    	
230
    	
 
    	
704 West Interstate 20, Big Spring, TX 79720
    	
 
    	
2015
    	
 
    
	
A-35
    	
 
    	
 
    	
 
    	
Intentionally deleted
    	
 
    	
 
    	
 
    
	
A-36
    	
 
    	
1
    	
 
    	
100 N. Carter Road, Ashland (Richmond), VA 23005
    	
 
    	
2015
    	
 
    
	
A-37
    	
 
    	
170
    	
 
    	
435 Winton Parkway, Livingston, CA 95334
    	
 
    	
2015
    	
 
    
	
A-38
    	
 
    	
369
    	
 
    	
3001 Grant Street, Gary, IN 46408
    	
 
    	
2015
    	
 
    
	
A-39
    	
 
    	
402
    	
 
    	
24225 and 24263 West Lorenzo Road,   Wilmington, IL 60481
    	
 
    	
2019
    	
 
    
	
A-40
    	
 
    	
255
    	
 
    	
289 Howard Baker Highway, Pioneer, TN 37847
    	
 
    	
2019
    	
 
    
	
A-41
    	
 
    	
257
    	
 
    	
10346 S. State Rd. 39, Clayton, IN 46118
    	
 
    	
2015
    	
 
    

 

 [See attached copies.]Exhibit 10.1

 

AMENDMENT
No. 11 TO

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS AMENDMENT NO.
11 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”), dated as of January 23, 2019, among ORCHIDS
PAPER PRODUCTS COMPANY, a Delaware corporation (“Borrower”), the Guarantors party hereto, the lender party hereto
(“Lender”) and BLACK DIAMOND COMMERCIAL FINANCE, L.L.C., as Administrative Agent for Lender (in such capacity,
“Administrative Agent”).

 

BACKGROUND

 

A.       Borrower,
Administrative Agent, as successor to U.S. Bank National Association, and Lender, as successor to U.S. Bank National Association,
JPMorgan Chase Bank, N.A., SunTrust Bank, and First Tennessee Bank, are parties to that certain Second Amended and Restated Credit
Agreement dated as of June 25, 2015 (as amended, supplemented and modified from time to time, the “Credit Agreement”).

 

B.       The
Events of Default set forth on Exhibit A attached hereto have occurred and are continuing under the Credit Agreement (the
“Existing Events of Default”).

 

C.       Borrower
has requested that Administrative Agent and Lender waive the Existing Events of Default and amend certain provisions of the Credit
Agreement as set forth herein.

 

D.       Administrative
Agent and Lender are willing to waive the Existing Events of Default and amend certain provisions of the Credit Agreement upon
the terms and conditions set forth below.

 

E.       NOW
THEREFORE, in consideration of the matters set forth in the recitals and the covenants and provisions herein set forth, and other
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

AGREEMENT

 

Section 1.              Definitions. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto
in the Credit Agreement.

 

Section 2.              Amendments to the Credit Agreement. As of the Effective Date (as defined below), the Credit Agreement is amended
as follows:

 

     

     

    

 

(a)           The definition of “Applicable Fee Rate” in Article I of the Credit Agreement is hereby deleted in its entirety
and the following is inserted in substitution therefor:

 

“Applicable
Fee Rate” means, at any time, the percentage rate per annum at which commitment fees are accruing on the Available Aggregate
Revolving/Draw Commitment at such time, which rate shall equal 3.55%.

 

(b)           The definition of “Base Rate” in Article I of the Credit Agreement is hereby deleted in its entirety and the
following is inserted in substitution therefor:

 

“Base
Rate” means, for any day, a rate per annum equal to thirteen and one-half percent (13.5%).

 

(c)           The definition of “LC Issuer” in Article I of the Credit Agreement is hereby deleted in its entirety and the
following is inserted in substitution therefor:

 

“LC
Issuer” means none.

 

(d)           Article I of the Credit Agreement is hereby amended to add the following defined term:

 

“Eleventh
Amendment” shall mean Amendment No. 11 to Second Amended and Restated Credit Agreement dated as of January [__], 2019
among Borrower, Guarantors, Administrative Agent and Lender.

 

(e)           Notwithstanding anything set forth in Section 2.19 of the Credit Agreement or any other provision of the Credit Agreement,
there shall be no obligation on the part of the LC Issuer, Administrative Agent, Lender or any other party to issue any Letters
of Credit.

 

(f)            Notwithstanding anything set forth in the Credit Agreement to the contrary, (i) each Revolving Loan made after the Effective
Date shall be a Base Rate Advance and (ii) all other outstanding Loans shall, on the last day of the then-current Interest Period
applicable to each such Loan, be automatically converted into a Base Rate Loan.

 

(g)           Section 6.1(j) of the Credit Agreement is hereby amended to provide that (i) the Cash-Flow Forecast for the period starting
the week ending January 25, 2019 to and including March 29, 2019, tendered by Borrower to and accepted by Administrative Agent
and Lender prior to the Effective Date shall replace the previously delivered Cash-Flow Forecast in existence on the date of this
Agreement, (ii) on or before each of the 1st and 15th day of each month for the period February 1, 2019,
through and including May 1, 2019, Borrower shall provide to Administrative Agent and Lender an updated Cash-Flow Forecast and
if Administrative Agent and Lender in their sole discretion shall approve such updated Cash-Flow Forecast, it shall replace and
supersede the then existing Cash-Flow Forecast, (iii) on or before the third Business Day of each week, commencing January 30,
2019, Borrower shall provide to Administrative Agent (A) a line-by-line reconciliation of (1) the amounts of budgeted expenditures
and receipts for the immediately preceding week as set forth in the Cash-Flow Forecast most recently delivered to and approved
by Administrative Agent for such week and (2) the actual expenditures and receipts for such week (together with an explanation,
in reasonable detail, of any material differences between the budgeted and actual amounts) and (B) a certification by the
CSO, that such person has no reason to believe that such reconciliation is incorrect or misleading in any material respect, and
(iv) on or before the second Business Day of each week commencing January 29, 2019, Borrower shall provide to Administrative Agent,
a report on the prior weekly sales by customer, together with a comparison to budgeted sales for such period and a certification
by the CEO or CSO that such person has no reason to believe that such reconciliation is incorrect or misleading in any material
respect.

 

    - 2 -

     

    

 

(h)           Section 6.21(f) of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution
therefor:

 

(f) Borrower
shall not permit total Net Cash Flow (as defined in the Cash-Flow Forecast) for any week in each cumulative period covered by the
Cash Flow Forecast to be more than ten percent (10%) less than the projected cumulative Net Cash Flow as set forth in the Cash-Flow
Forecast for each such period.

 

(i)            Section
9.11 of the Credit Agreement is hereby amended to add the following sentence at the end of such Section:

 

Notwithstanding
the foregoing, Administrative Agent or Lender may provide to any of its lenders previously disclosed to Borrower, copies of all
financial statements and other reports and all other notices of default, other notices, amendments, modifications, waivers, supplements
and agreements delivered under or pursuant to any Loan Document relating to Borrower or any of its affiliates; provided, however,
that prior to providing such documents and information Administrative Agent and Lender shall cause and such lender to execute and
deliver to and in favor of Borrower and the Guarantors a written consent to which such lender shall be bound to the confidentiality
and other provisions set forth in this Section 9.11.

 

(j)            Section
10.12 of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution therefor:

 

10.12. Successor
Administrative Agent. The Administrative Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower,
and the Required Lenders may remove the Administrative Agent at any time by giving written notice to the Administrative Agent,
the Lenders and the Borrower, such resignation or removal to be effective upon the appointment of a successor Administrative Agent
or, if no successor Administrative Agent has been appointed, thirty (30) days after the notice of resignation or removal, as applicable.
Upon any such resignation or removal, the Required Lenders shall have the right to appoint, on behalf of the Borrower and the Lenders,
a successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Required Lenders within
fifteen (15) days after the notice of resignation or removal, then the resigning Administrative Agent may appoint, on behalf of
the Borrower and the Lenders, a successor Administrative Agent. If the Administrative Agent has resigned or been removed and no
successor Administrative Agent has been appointed, the Lenders may perform all the duties of the Administrative Agent hereunder
and the Borrower shall make all payments in respect of the Obligations to the applicable Lender and for all other purposes shall
deal directly with the Lenders. No successor Administrative Agent shall be deemed to be appointed hereunder until such successor
Administrative Agent has accepted the appointment. Upon the acceptance of any appointment as Administrative Agent hereunder by
a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the resigning or removed Administrative Agent. Upon the effectiveness of the resignation
or removal of the Administrative Agent, the resigning or removed Administrative Agent shall be discharged from its duties and obligations
hereunder and under the Loan Documents. After the effectiveness of the resignation or removal of an Administrative Agent, the provisions
of this Article X shall continue in effect for the benefit of such Administrative Agent in respect of any actions taken or omitted
to be taken by it while it was acting as the Administrative Agent hereunder and under the other Loan Documents. In the event that
there is a successor to the Administrative Agent by merger, or the Administrative Agent assigns its duties and obligations to an
Affiliate pursuant to this Section 10.12, then the term "Prime Rate" as used in this Agreement shall mean the prime rate,
base rate or other analogous rate of the new Administrative Agent.

 

    - 3 -

     

    

 

(k)           Notwithstanding anything contained in the Credit Agreement to the contrary, (i) payments of principal, interest and the
Commitment Fee due and payable on the Term Loans and Draw Loans and payment of interest on the Revolving Loans otherwise due and
payable on October 31, 2018, November 1, 2018, December 1, 2018, January 1, 2019 or at the end of the applicable Interest Period
if not falling on such dates, and thereafter, shall instead be due and payable on the earlier of the occurrence of an Event of
Default or May 1, 2019, (ii) the actual ending Revolving Loan balance for each week shall not exceed the projected amount of the
ending Revolving Loan balance for such week set forth in the Cash-Flow Forecast, and (iii) Borrower shall use the proceeds of such
Revolving Loans solely for the Borrower’s operating and other expenses set forth in the Cash-Flow Forecast.

 

(l)            Notwithstanding anything contained in the Credit Agreement to the contrary, Borrower agrees to, by not later than March
1, 2019, either provide Administrative Agent with a signed purchase agreement in form and content acceptable to Administrative
Agent and Lender for the purchase of the equity or assets of Borrower in an amount sufficient to repay the outstanding Obligations
in full or a fully executed firm binding commitment from an institutional lender, in form and substance acceptable to Administrative
Agent and Lender, for replacement financing in an amount sufficient to repay all of Borrower’s Obligations to Administrative
Agent and Lender in full. By not later than May 1, 2019, Borrower shall have closed on the sale of its equity or assets or refinancing
and repaid the Obligations in full.

 

(m)          Notwithstanding anything contained in the Credit Agreement to the contrary, Borrower agrees to, by not later than January
25, 2019, provide Administrative Agent with a signed amendment to that certain engagement letter dated as of November 8, 2018 between
Borrower and Deloitte Transactions and Business Analytics LLP, in form and content acceptable to Administrative Agent and Lender.

 

(n)           Notwithstanding anything contained in the Credit Agreement to the contrary, Borrower agrees to, by not later than January
25, 2019, provide Administrative Agent with a business plan for the fiscal year ending December 31, 2019, in form and content acceptable
to Administrative Agent and Lender.

 

(o)           To the extent Borrower has cash on deposit in its domestic operating accounts (other than the account ending in 9314 maintained
at U.S. Bank National Association (or any replacement account at another financial institution) to the extent that amounts in such
account are allocated to pay obligations owed by Orchids Lessor SC, LLC to RDP 27 LLC and USBCDE Sub-CDE 146, LLC not to exceed
$150,000) in excess of the sum of (i) $1,500,000 and (ii) the amount of all outstanding checks issued by Borrower which have not
yet been honored or paid, as of the end of any given week ending on or after January 25, 2019, Borrower shall promptly pay such
excess to Administrative Agent for application to the Obligations under the Revolving Loans.

 

(p)           The Revolving Commitment Column to Schedule 1 to the Credit Agreement is hereby amended to read as follows:

 

LenderRevolving
Commitment

 

Orchids Investment
LLC$51,903,846.00

 

Total Commitments$51,903,846.00

 

For the avoidance of
doubt, (x) in no event shall the aggregate amount of Revolving Loans after the Effective Date of this Agreement exceed the Revolving
Commitment set forth immediately above and (y) the actual ending Revolving Loan balance for each week shall not exceed the projected
amount of the ending Revolving Loan balance for such week set forth in the Cash-Flow Forecast.

 

    - 4 -

     

    

 

Section 3.              Representations and Warranties. To induce Administrative Agent and Lender to execute this Agreement, Borrower hereby
represents and warrants to Administrative Agent and Lender as follows:

 

(a)           Authorization; No Conflict. Borrower is duly authorized to execute and deliver this Agreement. The execution, delivery
and performance by Borrowers of this Agreement, do not and will not (a) require any consent or approval of any governmental agency
or authority (other than any consent or approval which has been obtained and is in full force and effect), (b) conflict with (i)
any provision of applicable law, (ii) the charter, by-laws or other organizational documents of Borrower or (iii) any agreement,
indenture, instrument or other document, or any judgment, order or decree, which is binding upon Borrower or any of its properties
or (c) require, or result in, the creation or imposition of any Lien on any asset of Borrower or any other Loan Party (other than
Liens in favor of Administrative Agent created pursuant to the Loan Documents).

 

(b)           Binding
Effect. This Agreement constitutes the legal, valid and binding obligation of Borrower enforceable against Borrower in accordance
with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally
and to general principles of equity (whether enforcement is sought by proceeding in equity or at law).

 

(c)           Continuation
of Representations and Warranties. After giving effect to this Agreement, each of the representations and warranties of Borrower
in the Credit Agreement and the other Loan Documents are true and correct in all material respects with the same effect as though
made on and as of the date hereof (except to the extent such representations and warranties expressly relate to a specific earlier
date, in which case such representations and warranties shall be true and correct in material respects as of such earlier date).

 

(d)           No
Event of Default. After giving effect to this Agreement, no Event of Default exists.

 

Section 4.              Conditions Precedent. This Agreement shall be effective as of the date first set forth above, subject to the satisfaction
of the following conditions precedent (the date of such satisfaction being the “Effective Date”):

 

4.1           Execution
and Delivery. Borrower, Guarantors, Administrative Agent and Lender shall have executed and delivered this Agreement.

 

4.2           No
Events of Default. No Event of Default under the Credit Agreement (other than the Existing Events of Default) shall have occurred
and be continuing or will result from the consummation of the transactions contemplated by this Agreement.

 

4.3           Representations
and Warranties. The representations and warranties set forth in Section 3 hereof are true and correct.

 

4.4           Organizational
Documents. Administrative Agent shall have received such customary documents and certificates as Administrative Agent may
reasonably request relating to the organization, existence and good standing of Borrower and the authorization of the transactions
contemplated by this Agreement.

 

4.5           Payment of Fees and Attorney Costs. Borrower shall have paid to Administrative Agent all reasonable out-of-pocket
costs and expenses of Administrative Agent and Lender (including legal fees, auditor fees, and consultant fees) in connection with
the negotiation, documentation and closing of this Agreement.

 

    - 5 -

     

    

 

Section 5.              Fees. In consideration for Administrative Agent entering into this Agreement, Borrower agrees to pay to Administrative
Agent, for its own benefit, a fee in the amount of $25,000, which fee shall be non-refundable and fully earned on the Effective
Date of this Agreement, and shall be due and payable, along with the Amendment Fee (as defined in the Eighth Amendment), Amendment
Commitment Fee (as defined in the Ninth Amendment) and the amendment fees under the Tenth Amendment on the earliest of (i) May
1, 2019, (ii) occurrence of an Event of Default, or (iii) sale of all or substantially all of Borrower’s Assets or equity
interests or refinancing of the Obligations. In consideration for Lender entering into this Agreement, Borrower agrees to pay to
Administrative Agent, for the benefit of the Lender, an amendment fee in an amount equal to one percent (1%) of the outstanding
amount of the Loans as of the Effective Date, which fee shall be non-refundable and fully earned on the Effective Date of this
Agreement, and shall be added to the outstanding principal amount of the Term Loan. Such fee shall be deemed for all purposed to
be principal of the term Loan and interest shall begin to accrue on such amount immediately.

 

Section 6.              Waiver.
As of the Effective Date, Administrative Agent and Lender waive the Existing Events of Default. The waiver contained herein does
not apply to any other Default or Event of Default, other than the Existing Events of Default, which may now or hereafter exist
under the Credit Agreement or the other Loan Documents. No consent or waiver, express or implied, by Administrative Agent and
Lender to or for any breach of or deviation from any covenant, condition or duty by Borrower or any Guarantor, including the waiver
of the Existing Events of Default, shall be deemed a consent or waiver to or of any other breach of the same or any other covenant,
condition or duty set forth in the Credit Agreement or the other Loan Documents. Administrative Agent’s and Lender’s
waiver contained herein does not constitute a course of dealing nor does it constitute a course of conduct.

 

Section 7.               Miscellaneous.

 

7.1           Effect
of Agreement. The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power
or remedy of Administrative Agent or Lender under the Credit Agreement or any other Loan Document, or constitute a waiver of any
provision of the Credit Agreement or any other Loan Document, except as specifically set forth herein, and Borrower and each Guarantor
hereby fully confirms, affirms and ratifies each Loan Document to which it is a party. Except as specifically modified hereby,
the Credit Agreement and the other Loan Documents remain in full force and effect.

 

7.2           Counterparts.
This Agreement may be executed in any number of counterparts and by the different parties on separate counterparts, and each such
counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.
Delivery of the executed counterpart of this Agreement by telecopy or electronic mail shall be as effective as delivery of a manually
executed counterpart to this Agreement.

 

7.3           Costs
and Expenses. Borrower shall pay all invoices of Administrative Agent’s and Lender’s auditors, financial consultants
and any legal counsel of Administrative Agent and Lender within five days of written request.

 

7.4           Severability.
The illegality or unenforceability of any provision of this Agreement or any instrument or agreement required hereunder shall
not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement or any instrument
or agreement required hereunder.

 

7.5           Captions. Section captions used in this Agreement are for convenience only, and shall not affect the construction
of this Agreement.

 

7.6           Entire Agreement. This Agreement embodies the entire agreement and understanding among the parties hereto and supersedes
all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof.

 

    - 6 -

     

    

 

7.7           References. Any reference to the Credit Agreement contained in any notice, request, certificate, or other document
executed concurrently with or after the execution and delivery of this Agreement shall be deemed to include this Agreement unless
the context shall otherwise require. Reference in any of this Agreement, the Credit Agreement or any other Loan Document to the
Credit Agreement shall be a reference to the Credit Agreement as amended hereby and as further amended, modified, restated, supplemented
or extended from time to time.

 

7.8           Waiver of Claims and Defenses. By execution of this Agreement, Borrower and each Guarantor acknowledges and confirms
that it does not have any offsets, defenses or claims arising out of or relating to this Agreement, the Credit Agreement or the
other Loan Documents against Administrative Agent, Lender, or any of their subsidiaries, affiliates, officers, directors, employees,
agents, attorneys, predecessors, successors or assigns whether asserted or unasserted. The Borrower and Guarantors, for and on
behalf of themselves and their legal representatives, successors and assigns, do waive, release, relinquish and forever discharge
Administrative Agent and Lender, its parents, subsidiaries, and affiliates, its and their respective past, present and future directors,
officers, managers, agents, employees, insurers, attorneys, representatives and all of their respective heirs, successors and assigns
(collectively, the “Released Parties”), of and from any and all manner of action or causes of action, suits,
claims, demands, judgments, damages, levies and executions of whatsoever kind, nature or description arising on or before the date
hereof, including, without limitation, any claims, losses, costs or damages, including compensatory and punitive damages, in each
case whether known or unknown, asserted or unasserted, liquidated or unliquidated, fixed or contingent, direct or indirect, which
the Borrower or the Guarantors, or their legal representatives, successors or assigns, ever had or now have or may claim to have
against any of the Released Parties, with respect to any matter whatsoever, including, without limitation, the Loan Documents,
the administration of the Loan Documents, the negotiations relating to this Agreement and the other Loan Documents executed in
connection with this Agreement and any other instruments and agreements executed by the Borrower or any Guarantor in connection
with the Loan Documents or this Agreement, arising on or before the date hereof (collectively, “Claims”). 
The Borrower and each Guarantor acknowledges that they are aware that they may discover facts different from or in addition to
those they now know or believe to be true with respect to the Claims, and agree that the release contained in this Agreement is
and will remain in effect in all respects as a complete and general release as to all matters released in this Agreement, notwithstanding
any such different or additional facts.  The Borrower and each Guarantor agrees not to sue any Released Party or in any way
assist any other person or entity in suing a Released Party with respect to any claim released in this Section. Borrower and each
Guarantor acknowledges and agrees that Administrative Agent and Lender have fully and timely performed all of their respective
obligations and duties in compliance with the Loan Documents and applicable law, and has acted reasonably, in good faith, and appropriately
under the circumstances.

 

7.9           Governing
Law. THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF OKLAHOMA APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

[signature page follows]

 

    - 7 -

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered by their duly authorized officers as of the date
first set forth above.

 

	 	BORROWER:
	 	 
	 	ORCHIDS PAPER PRODUCTS COMPANY
	 	 
	 	By:	/s/ Jeffrey S. Schoen
	 	Name:	Jeffrey S. Schoen
	 	Title:	President and Chief Executive Officer
	 	 
	 	 
	 	 
	 	GUARANTORS:
	 	 
	 	ORCHIDS MEXICO (DE) HOLDINGS, LLC
	 	 
	 	By:	/s/ Jeffrey S. Schoen
	 	Name:	Jeffrey S. Schoen
	 	Title:	President and Chief Executive Officer
	 	 
	 	 
	 	ORCHIDS MEXICO (DE) MEMBER, LLC
	 	 
	 	By:	/s/ Jeffrey S. Schoen
	 	Name:	Jeffrey S. Schoen
	 	Title:	President and Chief Executive Officer
	 	 
	 	 
	 	ORCHID PAPER PRODUCTS COMPANY OF SOUTH CAROLINA
	 	 
	 	By:	/s/ Jeffrey S. Schoen
	 	Name:	Jeffrey S. Schoen
	 	Title:	President and Chief Executive Officer
	 	 
	 	 
	 	OPP ACQUISITION MEXICO, S. de. R.L.de C.V.
	 	 
	 	By:	/s/ Jeffrey S. Schoen
	 	Name:	Jeffrey S. Schoen
	 	Title:	President and Chief Executive Officer

 

     

     

    

 

	 	ADMINISTRATIVE AGENT:
	 	 
	 	BLACK DIAMOND COMMERCIAL FINANCE, L.L.C., as  Administrative Agent
	 	 
	 	By:	/s/ Hugo H. Gravenhorst
	 	Name:	Hugo H. Gravenhorst
	 	Title:	Managing Director
	 	 
	 	 
	 	LENDER:
	 	 
	 	ORCHIDS INVESTMENT LLC, as Lender
	 	 
	 	By:	/s/ Leslie A. Meyer
	 	Name:	Leslie A. Meyer
	 	Title:	President

 

     

     

    

 

Exhibit A

 

Events of Default have occurred and are
continuing under the Credit Agreement arising from Borrower’s breach of Article VII of the Credit Agreement due to (i) the
failure of Borrower to make payments of principal, interest and the Commitment Fee due and payable on the Term Loans and Draw
Loans and payment of interest on the Revolving Loans otherwise due and payable on October 31, 2018, November 1, 2018, December
1, 2018, January 1, 2019, or at the end of the applicable Interest Period if not falling on such dates; (ii) the failure to pay
other fees due under the Credit Agreement, including amendment fees due under the Eighth Amendment, the Ninth Amendment and the
Tenth Amendment on or before December 31, 2018; and (iii) the failure to by not later than December 14, 2018, either provide Administrative
Agent with a signed purchase agreement in form and content acceptable to Administrative Agent and Lenders for the purchase of
the equity or assets of Borrower in an amount sufficient to repay the outstanding Obligations in full or a fully executed firm
binding commitment from an institutional lender, in form and substance acceptable to Administrative Agent and Lenders, for replacement
financing in an amount sufficient to repay all of Borrower’s Obligations to Administrative Agent and Lenders in full, and
by not later than December 31, 2018, closed on the sale of its equity or assets or refinancing and repaid the Obligations in full.

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